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Using Sign-up CDs

Should you imitate AOL and mail out free sign-up CDs? Members of ISP-Marketing list share their insights.

[April 20, 2000]

On the ISP-Marketing list in March, DM asked for help in getting more action from sign-up CDs:

"We have been mailing out a lot of instant sign-up CDs to people who request them from our web site or resellers, but never actually sign-up. We're a niche-market filtered ISP and offer the first month free, which we point out on the inside flap of the CD. For every 100 CDs we send out in a given month we might get 10 sign-ups. These people know what they will get and the price before they ask for the CD. Besides a 'free month, no-risk' sign-up, what else can we do to encourage them to actually sign-up?"

A number of respondents pointed out that DM might be putting the horse before the cart:

[DC wrote] "If you place no value on the CD why should they? Create the account before sending out the CD. Then assign value by changing the offer; have them pay for the first month, give them the second month free."

[PF offered this suggestion] "Consider sending out literature about your filtered content, listing a phone number to get the CD. A sign-up CD is not good advertising, it's just a bunch of software. What do you do that no one else does? Advertise those traits, not a $1.40 CD. Many people won't switch on a whim — show them why they must switch and you should see a better rate of return on your mailing expense."

Other respondents suggested using different marketing tools to support the CD-based campaign:

[RF wrote] "A marketing method that has worked for us is to set up a program with the PTAs at area schools. We give them a limited supply of CDs and for each sign-up that comes through them, we donate $10; they advertise the program at meetings and through their newsletters."

[VV shared these ideas] "We found that with any specials we've run we had better results when we did the math for them. For example, if the customer signs up for three prepaid months, they get a fourth month free. If they spend $16.95 per month, four months of services ends up costing them $12.72 per month."

One respondent said the CD itself might not be the problem:

[JR wrote] "Test your CDs and advertising with novices. Get five novices together, show them the ads, and ask what they expect to receive. If what you're sending doesn't fulfill the expectations created by the ad, your response will be very poor. Then give them the CD and see if they have any trouble figuring out how to connect. Don't give them any advice or coaching until they succeed or fail, just watch and note what difficulties they have. If you have never done this, it is very enlightening. These disks mostly fail because the developer incorrectly assumes basic skills and vocabulary on the user's part."

Another respondent suggested talking to those who do not sign up:

[EA wrote] "If you know who they are, phone them. At least find out why they don't sign up and change your approach, if needed."

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