Cannes Lions

LONG-DISTANCE CALL

SOUZA ARANHA MARKETING DIRECTO, Sao Paulo / EMBRATEL / 2003

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OVERVIEW

Description

A retention programme was developed. 380,000 clients were selected in the main areas (7% of the customer basis and 48% of the total revenue). The needs of the target were acknowledged through dozens of Focus Group sessions. Clube 21 was then launched, a customised benefits programme segmented to the residential and the small business markets.In Brazil, the long-distance calls services are accessed by dialling a two-digit code. The core communication strategy was to make the customers keep the number 21 (Embratel's code) in their mind.Every direct mail piece we have developed should reflect Embratel's quality of services, both in content and in production values.

Outcome

Instead of saying "you are automatically enrolled in Clube 21", we'd rather asked the client to enrol to show his interest in being an active member of the Clube.The huge success of Clube 21 can be evaluated:• The enrolment direct mail (one shot) got 185,000 subscriptions (about 50% of return).

• The total investments were US$530,000, representing a cost of US$2.86 per member, 47% lower than the allowable cost.• The current Embratel figures show that there were no losses at the target.• Five months after Clube 21 was launched, an independent agency carried out market research with the initial target, showing that the general satisfaction with Clube 21 was 8.1 out of 10, and that the non-members recall rate of the enrolment piece was 53%.

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