BMW the luxury car maker deployed personalized MMS campaign that achieved 30% Conversion Rate.
It’s no doubt that BMW has been experimenting with mobile ads for over a decade now. In 2008, BMW Germany rather than sending out campaign brochures, flyer and print which shows an entire range of tires. BMW the luxury carmaker deployed personalized MMS campaign to sell more winter tires, the campaign targeted owners who had purchased a BMW in summer between March and September need to have winter tires installed by the end of October.
The campaign messages were deployed to 1,200 opt-in customers to remind them that snow tires are more of a necessity rather than luxury, especially during the winter in Germany. As the characteristics of MMS message, the campaign contained picture and description of the tire, price, lists of dealerships in the area were all included in the MMS urging them to visit local dealership and buy a set of winter tires.
What was also unique about the campaign ad is that the MMS contained a link to BMW’s mobile website that showed how different sets of tires would look on the customer’s BMW. The customers would select alternate tires and wheel rims and uploaded to the tire simulator, so that the customer could experiment with other variations and see their prices and hours of operation and contact information for BMW dealerships in the areas to compare.
According to Marc Mielau, who was then BMW’s Innovation Manager for Mobile Marketing. He attributes the campaign’s high success rate because it was very situation based with mainly three factors.
BMW campaign embraced a real-time approach by tailoring to each individual customer personalized content that had a measurable impact on your ROI and revenue.
BMW campaign was localized to connect with consumers on their playing fields by allowing customers to find their nearest dealership which in turn increased Conversion
Many brands have been unsuccessfully capitalizing on their campaign due to time and relevancy of their message, BMW campaign had been timely, and it was relevant to the customers’ current needs and wants example is the approaching winter season.
Although BMWs ultimate objective was to increase tire sales for their dealers, but with this campaign they also aimed to achieve other goals like:
According to the data tracked from the campaign result, it’s said that 30% of those who got the MMS, actually bought winter tyres and often purchase with new rims at BMW dealers.
Extra- Using BMW MMS campaign ad, here is a break down summary from our good friend Ajit Jaokar on “How to make money from niche audiences in Mobile data”
The value proposition works out as follows:
Cost of winter tyres c. $700
Cost of tyres & rims c. $2500
Approximate average sale $1300
Total sales of BMW in summer 2008: 297k
-Those sold to hire/fleet: 180k
Total potential customers: 117k
30% response rate = 35,000 customers
Hence 35,000 customers spending $1300 each = $45,500,000
Given that the cost of the campaign was approximately $60,000 – at German MMS rates, for each MMS sent, the average return on investment was 758 dollars.
Results have shown that efficient and effective marketing campaigns will bring better conversion rates. This brings me to the question, is your marketing campaign and content personalized, localized, timely and relevant? consider this factors and marketing techniques – and you’ll see the benefits of more, user/clients, increased sales and more satisfied customers.