Kreg Does a Jig for DR1 Jun, 2009 By: Thomas Haire Response
Big Results in a Down Economy
The focus groups were eye-opening for Lilienthal, but did not cause him or the Sommerfelds to back off the idea of a long-form DRTV push. So, in September 2008, the show for the Kreg Jig began testing, eventually expanding into a full campaign in October. Yes, this was the peak of panic about the economy, but the Kreg show had immediate success and created the results the company was looking for, especially at retail.
"Our current model is to leverage the results of DRTV to build the Kreg brand at retail for the long term," Lilienthal says. Still, the measurability and results provided by the campaign were undeniably revolutionary for Kreg.
"We love the analysis and the instant results week-to-week," he says. "We feel like the campaign really put us back in touch with our customers. Those instantaneous results and the visibility of retail tracking numbers — tying the two together has been huge for us. Todd Sommerfeld is a CPA by training, and he always wants real numbers. Now, we have a real pulse on the business again; we have an idea where things are heading and tracking. It makes our decision-making that much easier."
Atomic Direct supplied some initial results of the campaign from that October 2008 timeframe that showed:
- 1. Direct sales results 20-percent above goal in that first month
- 2. Phone sales above goal: 75-percent closure rate on inbound calls
- 3. 25 percent of sales coming via the Web site promoted in the show
- 4. First week impact at retail was solid, but second week was astronomical, with sales results at retail up more than 200 percent compared to prior years
- 5. "Atomic has been very influential in helping us make sure the message is on target and, maybe more importantly, stays on target," Lilienthal says. "Prior to working with Atomic, our research efforts were mediocre at best. Now, our company wouldn't make any significant changes to our messaging without first investing in research dollars to make sure we fully understand the issues at hand. From there, we can craft intelligent strategies to overcome hurdles."
Not only was the campaign a financial success that changed the marketing game and customer relationships for Kreg, but it also has earned creative recognition, winning a Telly Award, a Summit Creative Award and a Hermes International Award. Still, that's just icing on the cake to Lilienthal, the Sommerfelds and the Atomic team. In the end, what the campaign has meant to Kreg's customer base is the key.
Lilienthal closes, "As markets continue to fragment and media messages become more cluttered, the clarity of DR has been a welcome boon to Kreg to help us cut through the clutter and reconnect with our customers."