Case Study: Allegiant Marketing Group
Allegiant Marketing Group (AMG) is a full service direct mail company located in Oklahoma City, Oklahoma. Founded in 2000, the company has expanded exponentially and is now doing over six million dollars in sales annually.
Their unique approach to direct mail extends beyond design, printing and mailing, to encompass full program management, creative marketing research, influential messaging and uniquely targeted lists.
AMG hired NuGrowth Solutions to execute a continuous email marketing campaign promoting nine pre-packaged promotional programs to assist automotive dealerships in advertising for their sales events.
Time For a Change
When AMG decided it was time to increase sales by a million dollars a year and move their sales model from a high volume outbound effort to a more targeted effort where 100% of their available time was spent speaking with interested parties, they knew they had to change the way they ran their lead generation programs.
A direct mail company with extensive experience in targeting and running campaigns for their clients, they had tried to run LeadGen email campaigns internally and realized that to achieve the results they were looking for they needed the consistency and commitment to distinct methodology which they could only get by bringing on outside help.
Unilateral Commitment to Success
“There are good ideas and then there are good ideas that work,” said AMG president, Csaba Mathe.
“The ones that work require a dedicated cadence. We wanted to start something and know that it would continue. We wanted a system that included routine refinement. That is what we are getting with NuGrowth.”
“NuGrowth’s methodology and weekly meetings with my sales team have resulted in a continuously refined effort that routinely targets the right prospects with the right messaging to produce quality leads for my business. In the first three months of working with NuGrowth, we have experienced over a 100% net profit return on our investment and it is trending upward,” he added.
The weekly sales meetings, which include C-level executives from both companies, as well as the NuGrowth marketing team and the AMG sales reps, set the tone and focus for the campaign.
Mathe feels that this collaboration is one of the biggest benefits of AMG’s relationship with NuGrowth.
“The sales team knows what kinds of leads they want and what people are asking for; the marketing team is telling us what our options are; the C-level guys are guiding conversation with an ownership hat on and we are driving towards our dream list of people who are extremely likely to buy products and services from us,” he said.
Targeting the List
Once engaged, the team started by honing in on the list. They knew that the more targeted the list, the more effective the mailing. They began with a compilation of over 70,000 names, ran a test email and pared that list down to almost half. The list was then supplemented with another 40,000 names and pared down again. Names which did not fit the identified attributes of AMG’s best automotive customers were manually eliminated.
Once satisfied that they had a solid list, routine biweekly mailings commenced with fervor and leads started coming in.
Content is much more effective when written for a specific, defined audience — in this case, automotive dealerships of a certain size in certain geographic locations.
By targeting the list, the creative team was able to write messaging that really resonated with the audience.
Closing the Sale
When it comes to generating new business, Lead Gen is only half of the equation. The sales team needed to do their part as well.
“They can give me all the great leads under the sun, but if we don’t treat them right, nothing will come of them… As a security measure, NuGrowth provided us with an ROI Score Card and a list of best practices to follow to assist our sales team in closing the leads they had generated for us,” said Mathe.
A Three Month Snapshot
As expected, no related sales were closed during the first month of the lead generation program. Leads did come in, however, and the pipeline started growing. By the second month, enough sales had been generated that AMG had broken even on their marketing spend. By the end of the third month they had reached over 100% return on investment with sales of over $164,000 directly attributable to the new marketing and sales program. Not only that, the average invoice amount of $9,114.29 was nearly $4,000 greater than AMG’s company-wide average invoice