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Chemicals Firm Replaces Mail With E-Letter
Mar 15, 2003 12:00 PM , BY LARRY RIGGS
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Advanced Polymer Alloys, a chemical manufacturer facing a budget crunch, replaced postal mail and direct response space advertising last year with an e-mail newsletter. The results were so good that the firm now plans to redesign the letter and increase its frequency from quarterly to six times a year.

To date, the newsletter has enabled Advanced Polymer (APA) to cut marketing costs by better than two-thirds while more than doubling the number of its prospects and customers, according to business development manager Jeff Senich. And the firm hopes the letter will drive 10% growth this year. 2002 sales totaled $30 million, 8% better than the year before.

Despite that improvement, Senich's department had a mandate to cut costs.

“A traditional direct mail campaign for us could cost upward of $15,000,” Senich said. “The cost of each newsletter now is about $3,000.”

He added that “the obvious advantage is the cost-effectiveness of this over our previous advertising efforts in trade publications and through direct mail.”

To boost sales, the firm has revamped the newsletter to include more case studies and testimonials from users. The objective is to help influence the purchase of APA's industrial rubber and plastic chemical compounds, Senich said.

APA spends less than $100,000 per year on advertising, said Senich.

“The economy is not robust so we've had to cut back on direct mail,” he said. “But direct mail will be the first thing we bring back, because it's so effective.”

Senich did not discuss the company's timetable for reviving postal mail.

APA's e-mail newsletter is tailored to prospective buyers of its Alcryn melt-processible rubber, which is used in automobiles and on construction sites.

The newsletter has helped APA reach prospects and customers with fewer than 10 employees, said Senich.

The company, once a unit of DuPont but now part of Ferro Corp., has a total database of about 6,000 companies, a third of which have chosen to receive the newsletter.

As with direct mail, the newsletter is designed to bolster outside sales efforts.

“While we're reaching our sales prospects and current customers, we're keeping our sales representatives and distributors informed,” Senich said.

The firm's products, which fall under the general chemical category of thermoplastic elastomers, sell at prices ranging from $1.50 to $3.50 per pound, said Senich.

APA's mailing list is largely comprised of names from the company's internal database of customers, prospects, and individuals who have contacted the company requesting information.

The APA newsletter offers write-ups of the company's new products, stories about the latest applications for those products, the most recent business contract announcements and tips from technical service managers on how to more effectively use APA's offerings. It also has links to the firm's Web site (www.apainfo.com).



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