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Dell

Dell Computers case study

Dell Inc. tapped Kowalick, Inc. in June of 2004 for an e-mail pitch. There were 11 different ad elements, including product models, warranty offers, discounts and prices. From the 10,368 possible combinations, Kowalick Inc.'s algorithm selected 18 that could best tease out the effect of the different variables. Every customer in 18 test groups, each with 2,000 people, got one of the randomly selected pitches.

Within a week Kowalick, Inc. was able to analyze the effect of the different variables on the response rate. One ad incorporating the most compelling features--including a discount of 10% and a hurry-offer-ends-soon call to action--was then created and sent to 150,000 consumers. Kowalick, Inc.'s data show the fraction of recipients willing to open up the e-mail was 16%, three times the rate for a similar e-mail barrage Dell sent to a control group.
 


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