High CPAs will sink any brand
For a new brand, especially a prepaid credit card, cost per acquisition is high. That's just the lay of the land. But if high CPAs persist, that can destroy a business. Testing and optimization have to be the guiding light for every marketing strategy and creative execution. So we launched the MAGIC prepaid card with a strategy to bring initial high acquisition costs from the stratosphere back to earth.
Execute, measure, optimize,
then rinse & repeat
We set our CPA goal aggressively at $25. On its own, $25 may not seem like much, but compared to the $249 initial CPA, it was a high hurdle to clear. We developed a multi-channel approach that spanned DRTV, direct mail, strategic call center management, direct digital, emails, out of home and collateral. Each time creative went into market it was measured with surgical precision. Strong performers survived and the weak got canned.
Houston, we have liftoff
Our relentless pursuit of optimization
paid off, literally. Within the first year
we cut the CPA to $24. Not only were
acquisition costs brought down, but
retention rates (activation, load, usage)
increased by 17%.
Within the first year we cut the CPA to $24
Retention rates (activation, load, usage) increased by 17%
The act of balancing art and science