SeQuel Case Study: Identity Theft Protection

Client: One of America’s leading Identity Theft Protection Companies

Situation: Until retaining SeQuel Response, this client had never tested the direct mail channel – relying on prior success across TV, Radio, Newspapers, Magazines and online -- in addition to a variety of event marketing channels. However, this client sought to drive additional sales through a new sales channel.

Client asked SeQuel to build a DM control package, from scratch, that could meet an aggressive cost-per-acquisition (CPA) target. Our client’s goal was to cost-effectively acquire nearly 20,000 new customers each month, or roughly 250,000 new customers annually through the new direct mail campaign.

Action:  With no existing direct mail program and no control package to test against, SeQuel had to build a direct mail campaign from scratch, requiring a very broad initial test strategy. From late November 2009 to April 2010, SeQuel tested, back-tested and successfully rolled out a control package, incorporating 12+ creative concepts, 6 offers, and more than 10 list sources during its first rounds of testing. 

SeQuel engaged in a two-step approach, using its proprietary multi-variate testing methodology, called “Q Test”. As opposed to the standard A/B test of pitting two packages against each other, SeQuel’s method created an abundance of combinations, which greatly increased the chances of finding a winning control. By populating 16 matrix cells with various offers, creative and data, SeQuel was able to generate 180 indexed cells.  Once this broad approach identified several strong performing combinations, each was back-tested at larger quantities in order to statistically validate the results. 

Results:

  • SeQuel’s testing efforts have helped to drive what is now the most attractive CPA amongst all marketing channels for this client in 2012.
  • SeQuel has built multiple control packages, control files/models, and control offers – for both of the client’s ongoing DM campaigns – which continue to improve performance with each successive mail drop.
  • The performance of SeQuel’s controls has led to an increase in mail volume with this client from 2 million records in 2010 – to nearly 25 million records in 2012.