Direct Marketing in the Land of Oz
This year, National Geographic tested a new premium—a branded briefcase with an embroidered logo. Terry says he chose this particular premium because the cost of the briefcase versus its perceived benefit was appealing.
Indeed, the test index was two times that of the control, and National Geographic saw an increase of 50 percent in response on the rollout.
"Being clever on the cost end has made [this premium] successful, otherwise it wouldn't have worked," says Terry, who explains that the briefcases are made in Hong Kong, and fulfillment is handled by a vendor in New Zealand. Regional fulfillment is not only more cost-effective and easier from a logistical standpoint, but it also results in better service levels.
The briefcase premium now is National Geographic's control in the Australian market. However, Terry says he is "keeping an ear to the ground," because there's a greater danger of fatigue with this premium. Should the briefcase lose its steam, Terry is prepared to reintroduce the world map premium.