Windham Hill Records
An internationally known Recording label. George Winston was their most notable artist. They had a direct mail catalog with considerable circulation. They were attempting to build audience with rented lists using the catalog. They contacted Miglautsch Marketing to help reinvigorate the catalog marketing and for the first time, attempt to make a profit.
Challenge:The record company explained, “All our listeners are 35-55, high education, high income men. But when we rent those kinds of lists we get disappointing results. We don’t seem to be able to find many new customers.”
We pointed out, "Assuming that 100% of your customers are those type of people doesn’t mean that all of those type of people are your customers.”
Objective: Generate new customers with a cost-effective solution.
Obstacles: There are in-fact about 14 million of such consumers... but they had only about 1 million total CD's sold per year (so even if ALL their customers fit that profile, not all were catalog buyers. By their own admission, they should expect a relatively low response rate.
Solution: We suggested that they insert a simple reply device in their CD’sThe insert in their own product CD's generated 15% response, 600,000 names the first year and those names pulled 15% order response or 90,000 new customers. The campaign was so successful that the Windham Hill founder was able to sell their company To BMG for millions.