Is IoT the future of direct marketing?
In the latest demonstration of how IoT has the potential to disrupt the marketing sector, WND UK, the UK’s Sigfox Network Operator, and Ebi, print and fulfillment specialists, are enabling live communication over Sigfox’s IoT network with potential customers in their homes in a collaboration that has achieved an impressive 48% response rate compared to the industry standard of 5%, and resulting in more than 100 sales and a 24x return-on-investment.
Working with a premium automotive manufacturer, Ebi used the interactive marketing campaign to encourage drivers to book a test drive in the company’s new vehicle by sending 5,000 personalized, targeted direct mail packs. The packs included vehicle graphics and specifications, and by pushing a replica of the car’s ‘start/stop’ button, the recipient was able to book a test drive instantly.
The Sigfox network utilizes low-power wide-area network (LPWAN) technology, designed to provide low-cost connectivity and enable the use of cost-efficient silicon modules, and ultra-narrow band technology, which provides basic connectivity to devices that do not require high throughput, making it an ideal match for IoT devices, many of which require very little power.
And according to Tim Harris, chief executive, WND UK, the success of Ebi’s campaign demonstrates how Sigfox’s low-cost, highly reliable IoT network “opens the door to novel applications.”
Before turning to an IoT network, Ebi first developed prototypes using mobile devices and SIM cards, but realized that using a mobile network was not feasible financially and technically.
“To carry off this concept, we had to satisfy ourselves that whatever technology we used would be affordable, robust, give us great coverage and work in people’s homes,” said Luke Thomas, business development director, Ebi.
In order to maximize response rates, Thomas felt it was critical to enable instant communication between the customer and the automotive manufacturer’s brand without the need to download or scan anything.
Ebi heavily tested out the technology, employing a team of 15 people over six weeks to run over 2,000 tests in different buildings including apartment blocks, windowless rooms, public buildings and houses, eventually achieving results showing a 98% success rate.
“With the success of this campaign behind us, we have plans to introduce this concept to more direct mail and in-store clients. We are working to make it cost-effective for a wider range of products. Combining digital with physical channels is a marketing game changer and this technology does it beautifully,” said Thomas.
