A Simple, Proven, Neatly Wrapped Promotion For You

When I came to Tucows about a year ago I promised on this blog that I would be “…experimenting with our Hover (retail) business, largely in hopes of sharing any successes.” For a while, I was doing more experimenting than succeeding. (I don’t have to tell you. Retail is tough.) But we have recently launched a few successful initiatives – marketing campaigns, improvements to our user experience (built on the OpenSRS API, of course) and innovations in our customers support – that can all be imitated fairly easily. We are thrilled to have you do just that. We will start putting together simple case studies to let you know what we did and how we did it so you can benefit from our experiences.

This is the first in that “series.”

We recently launched a very simple domain name promotion to encourage our current customers to register their own names (firstnamelastname.com) and put them to immediate use. We suggested available TLDs, offered tips on complementary services, highlighted real examples and extended a 15% discount off our standard domain name pricing.

The results were outstanding. We sent an email that got a 33.3% open rate and an 8.9% click-through-rate among opens. 14% of those who clicked purchased. 43% of those who purchased attached an email service. These metrics all surpassed our past marketing efforts. (You might have even tighter customer relationships and enjoy better open rates, CTRs and conversions. You can therefore assume your numbers would look even better.)

The links below offer everything you should need to repeat this promotion, including a much more detailed breakdown of what we did (from database query to subject header test to coding the links in the email) and the zipped up HTML email that we sent. You can take a look at the landing page here. We have also added these materials to our new marketing resources section.

If you are an OpenSRS reseller, swipe, borrow and steal anything you want. That’s the idea. (If you are not an OpenSRS reseller, don’t!) If you have any questions at all or want some help on the implementation, let us know.

Click here to download the detailed case study (.pdf)

Click here to download the HTML email (.zip)

Click here to see the landing page

2 thoughts on “A Simple, Proven, Neatly Wrapped Promotion For You

  1. wait a minute….. I first read this as 14% purchased but then i dug a bit deeper…

    say you sent 1000 emails , 33 % open so 333 opens… then 8.9% ct, so…29 clicks and 14% bought so 4 sales

    out of every 1000 emails, 4 would buy at a discounted price.

    so if I have 10,000 customers and I send this email, I could make 40 sales. if my selling price is $ 20 a domain (no where near the $35) and I pay tucows $ 10 leaves me with a $ 10 margin (before mechant fees and fraud) so I could make $ 400 gross.

    I would need to pay my webdevleoper about $ 200 to set up a new landing page and email, and then test it etc (about 10 hours of my time) so I would make a whopping $ 20 an hour.

  2. Thanks Jack. You got the math right. (If you look at the post, I detailed it exactly as you did.) But I think you may be under-projecting your own performance and the lifetime value of these domains a bit.

    Actually, first I should say that a likely, immediate return on any investment (or a whopping $20 an hour, as you say) these days isn’t so bad.

    But I think this could do more for you. If you have 10,000 users, you probably have a much more engaged customer base than we do at Hover. We have nearly 200,000, many of whom came to us through acquisitions. We don’t historically get fantastic open rates or click-through rates. I highlighted this promotion because the results beat the hell out of our past efforts. This leads me to believe that it could top your own past efforts. And you would likely see open rates, click-through rates and conversions greater than ours.

    We also saw an unusual amount of purchasers attaching email (the only other paid service we offer). These are domains that beg for more services. They would likely be a gateway to site building services, hosting services and a whole host of Web presence accessories. Domains aren’t your entire product portfolio are they? So why just count domain revenue when calculating your ROI?

    Finally, these will almost certainly be domains (and attached services) that get high renewal rates.

    I’m not saying this is going to make your year, but tack on better email performance than ours, attached services and years of renewal revenue and that 10 hours (which I was hoping could be reduced by stealing some of what we’ve done creatively) starts to look like a better investment of your time.

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