Nabisco Online Promo Draws Low Abandon Rate

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NabiscoGifts.com reported that it slashed average Web-promotion abandon rates and was able to build a database of 20,000 e-mail addresses through an online newsletter promotion.


NabiscoGifts said the e-mail address request abandon rate was cut to just 20 percent, meaning 80 percent of users who clicked on Nabisco ads supplied their e-mail addresses.


PricewaterhouseCoopers reports that between 70 percent and 90 percent of online consumers abandon marketing information requests. PennMedia, which provided the back-end database building technology and e-mail list to NabiscoGifts, reports that up to 90 percent of potential consumers abandon the registration process before revealing any information.


NabiscoGifts.com -- which debuted in November offering the package goods marketer's array of product in all-occasion gift baskets -- earlier this month targeted 1 million users who subscribe to family-oriented PennMedia newsletters.


"We were trying to reach out to anyone giving Valentine's gifts. Not necessarily sweetheart gifts, but families -- parents and grandparents," said Wayne Shurts, vice president of e-business at NabiscoGifts.com, Parsippany, NJ.


Newsletter subscribers who clicked on links following a 50-word NabiscoGifts ad were sent to a promotion page and were offered a chance to win a year's supply of Oreo cookies, Ritz crackers, Planters nuts and other Nabisco brand snacks in exchange for their e-mail addresses.


Of 1 million prospects, about 25,000 clicked through. Of those, 20,000 PennMedia subscribers opted in to NabiscoGifts' database.


NabiscoGifts believes the abandon rate was so low because only people with a genuine interest in its products clicked on the offer. The response rate -- 2 percent -- was lower than what the e-tailer had hoped for, but the quality of the leads compensated for the low response, Shurts said.


NabiscoGifts structured the promotion so consumers would be given a chance to win a prize instead of getting a gift just for opting in to receive product information.


"We could have gathered more leads by giving something away for free, but we got people who were interested in NabiscoGifts.com," Shurts said. "We feel very good about the quality of the leads we got. We hope to keep these folks as lifetime customers."


The lead quality was tested the week before Valentine's Day.


A follow-up message was sent to the 20,000 new members to thank them for signing up. The message encouraged recipients to purchase Nabisco products as Valentine's Day gifts by offering 15 percent off through the end of this month.


The follow-up message drew a 6 percent click-through rate, and 9 percent of those who clicked through purchased Valentine's Day snack baskets over a seven-day period leading up to Valentine's Day. Responses and sales related to the e-mail effort are still trickling in, Shurts said.


"The click through and close on the follow-up were excellent, probably double what the industry is used to," he said.


Shurts said he was pleased with the return on investment. "We're in the acquisition phase of this whole effort," he said. "We're trying to build a database. We want to broadcast who we are and communicate that we're alive."


The effort cost about $9,000 and lured 20,000 leads into its database. The promotion brought in leads at an average acquisition cost of less than 50 cents.


NabiscoGifts plans to continue its e-mail newsletter marketing efforts through PennMedia. "We will look at other newsletter companies [like PennMedia], but we will definitely go back to them," Shurts said.


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