The Case
In early 1999, the NYCE Corp., New England's largest provider of online debit transactions (also known as point-of-sale, or POS), hoped to increase use of its service beyond
grocery stores and gas stations. As a goal, NYCE set its sights on increasing POS transactions by 15% in two key markets - Boston and Hartford.
The Research
NYCE hired the Glastonbury, Conn.-based agency Cronin and Co. to develop and implement a strategic plan to increase POS transactions. To gauge the existing climate, Cronin
researched the industry by examining current NYCE users, speaking with the NYCE sales force and interviewing participating retailers. Findings indicated that current POS users
were interested in using their debit cards more widely, but that many retailers that offered POS weren't promoting the payment option effectively. Cronin also determined that
consumers' payment preferences were habitual, and that non-users would need to be convinced to "convert" to using online debit through a series of repeat trials. Many customers
also were confused about the difference between online (ATM), and offline (credit card) debit services.
The Strategy
With Mother's Day just around the corner, Cronin pinpointed U.S. post offices as prime real estate for increasing POS transactions. The postal service offered online debit as
a payment option, but had the dubious distinction of being NYCE's biggest underproducer. "Also, we were looking for a themed promotion, and Mother's Day is a high-volume time for
the postal service," says AnnMarie Kemp, director of PR at Cronin.
Party at the Post Office
Soliciting a partnership with the U.S. Postal Service posed the first hurdle, and required a presentation at federal headquarters in Washington, D.C. "One barrier was that
clerks at the postal service weren't educated about POS transactions, or didn't know how to complete them," Kemp says. "We wanted to encourage them to play an active role, but
the federal government has strict guidelines about incenting employees." Postal workers can't receive bonuses in excess of $20. As such, NYCE staged a contest for postal
employees in each market. The post offices that logged the most POS transactions in the three weeks leading up to Mother's Day would win gift certificates (worth $20 per person)
for a group lunch or dinner at Bertucci's.
Phase two of the planning process involved staging a run of live events at heavily trafficked post offices in each market. Cronin developed posters and other collateral to be
placed in area post offices, and negotiated exclusive partnerships with top radio stations in each market. For $6,000 each, two radio stations agreed to run on-air promotional
announcements for NYCE, and to make remote post office appearances, featuring live music and station giveaways such as gift certificates and other freebies. One station sponsored
a live putting contest (with a mini-green) for post office patrons who were waiting in line. Another carted in a casino wheel to entertain patrons.
Was it straight, unadulterated PR? No, Kemp admits. "This really was a case of integrated marketing communications. When you're trying to generate customer trials of a new
service, generating awareness is not enough to move the needle - particularly when you're competing with the VISAs and MasterCards of the world with a limited budget. A lot had
already been written about the online debit market in both consumer and business papers. We had to take it to the next level."
Kemp says the $12,000 promotional investment in radio partners was worth the "noise" it generated in post offices. "We would have paid $35,000 in advertising fees for
equivalent air time," she says.
Bankable Results
During the promotion, POS transaction volumes increased by 45% in the two key markets, rising from 6,029 to 8,720 and exceeding the program goal.
Moreover, the spike in transaction volumes was sustained long term. In the months following the promotion, usage remained 7% higher than it was prior to Mother's Day. In the
end, the radio promotions (including live broadcasts from post offices) reached 580,000 listeners, generating more than 3.2 million media impressions.
It's enough to make a mom proud.
(Cronin, 860/659-0514, http://www.cronin-co.com)
Transaction Fees, Etc.
NYCE campaign lead-time: 6 months
Campaign time frame: 3 weeks
Budget: $350,000 (including agency fees and production costs)
Bonus Points
Cronin and Co. leveraged a nice perk out of its NYCE campaign. In March, the campaign garnered the "Best of Show" distinction in PRSA's Connecticut Valley chapter Gold Mercury
Awards.
About Cronin and Co.
Founded: 1947
HQ: Glastonbury, Conn.
Employees: 50
PR staff: 8
PR staff on the NYCE account: 4
Clients: Phoenix Home Life Mutual
Insurance, Friendship Dairies, GoToMyDoc.com, Connecticut Lottery