Power-save: Using DRTV to sell expensive, hard-to-sell products

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It's usually fairly easy to sell $19.95 products on TV or even "emotional want" products that command higher price tags. But what about high-priced items that don't have an emotional appeal and the value is in future savings, something that is basically not tangible or sexy?

Power-Save Energy Corp. manufactures and sells products that help homeowners reduce electrical energy costs. Its flagship, Power-Save 1200, conditions and corrects the power factor of the electricity delivered to the home. This results in large electrical appliance efficiency gains and up to 25 percent savings on electrical bills.

After reviewing several agencies, Power-Save chose SendTec because of its direct response television experience, integrated multichannel approach, offline-to-online tracking technology and experience in two-step lead generation for high-ticket items.

Power-Save wanted to explode sales with DRTV as the primary lead generator, and provide consumers with education and motivation that would overcome the $300 price tag. This required SendTec to develop:

• A compelling DRTV communication strategy

• Messaging to take market share from competitors

• Deliver metrics at a stated ROI allowable while creating a high-volume, scalable business

The Plan

• SendTec guided Power-Save's Web team to develop an easy-to-use lead-capture landing page for DRTV

• Drilling down deeper, SendTec examined Power-Save competitors on DRTV to uncover their media spend and marketing strategy

• Developed a problem/solution DRTV creative supported by strong reasons to believe with a compelling lead generation offer

• Developed a test media plan to determine response rates and scalability

• Drove multichannel leads online and to highly trained operations at a hand-picked, third-party inbound telemarketing facility

• Carefully benchmarked results each step of the way to provide information for growing the infrastructure and corporate personnel to support dynamic growth

Creative

The 60- and 120-second spots were designed to generate leads, where consumers could request a free, no-obligation information kit. The spots were designed to:

• Show both winter and summer product efficacy - save on heating bills in the winter and on-air conditioning in summer

• Describe energy-saving process in easy to understand language, supported by animation

• Show convenient installation by licensed electrician

• Illustrate expert validation - EPA tested, EnergyStar rated, etc.

• Have a strong call to action for free information kit/DVD

• Testimonials illustrating the value of the product

Results

• The campaign produced 6,000 leads in the first two weeks, and is now averaging 1,500 per week.

• Conversion rate is about 7 percent, which is 3 percent above projections.

• Tweaks on the Web site are resulting in immediate lifts in conversion.

• The return on advertising spend, a key benchmark, is now $4 for every $1 spent

Power-Save has gone from a relatively unknown company to becoming a dominant player in its category.

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