AOL Canada began a direct mail campaign last month to offer existing members the opportunity to upgrade their current AOL package to the newest edition, AOL Canada 4.0 for Windows.

AOL Canada 4.0, The Next AOL, was mailed out to the company’s entire membership base of over 100,000 households nationwide. The mail drop began March 19.

Created by Toronto-based Mosaic Direct, the self-mailer describes the new look of the upgraded software and explains the improved content and features, including Microsoft’s Internet Explorer 4.0. Also enclosed in the mailer is a free AOL 4.0 CD-ROM.

Although 30% of the company’s members have already downloaded the AOL 4.0 software themselves, the vast majority prefer to receive a CD-ROM to plug into their computers, since it’s so much faster, says Ian Hembery, marketing director, AOL Canada.

‘The goal is to get our members on the most current version and the latest and greatest AOL Canada software possible,’ says Hembery. ‘What we thought we’d do is mail them a CD-ROM enclosed in an attractive package that talks about the benefits of 4.0 and get them to upgrade.’

The free CD-ROM is accompanied by a special ‘members-only’ offer that presents existing customers with the opportunity to recruit new members and make some cash while they’re at it.

On the inside flap of the mailer is a ‘free trial’ certificate to pass on to a friend or family member, along with the CD-ROM. If the member’s friend signs on with AOL Canada and stays for a minimum of 90 days, the member receives $100.

‘This is a special offer to our membership to thank them for being loyal consumers,’ says Hembery.

But besides courting friends of current AOL members, the company is delving into another phase of its acquisition strategy, set to begin this month.

Although Hembery says details of the campaign are under wraps, he did indicate that AOL will be undertaking newspaper distribution of the package that doesn’t include the members-only offer.

Similar to an AOL program that broke in December of 1998, AOL plans to use its latest software to lure prospects by distributing free CD-ROMs in a variety of newspapers along with a free one-month trial offer.

That would put the campaign more in line with AOL’s past practice of carpet-bombing the nation with floppy disks, many of which wound up in the trash or used as drink coasters. Asked whether AOL has changed its thinking about massive, potentially wasteful prospecting efforts, Hembery says only that AOL’s target consumers are ‘upscale Canadian families with children’. Any newspaper drops will presumably focus on FSAs where the majority of residents meet this profile.

Although Hembery says he cannot divulge where the drops will occur, past programs have been in conjunction with a variety of Southam newspapers and have hit Vancouver, Halifax, Ottawa and St. Catharines.

Customers buying a new computer will also find the software bundled into a variety of PCs, including IBM, Compaq and Hewlett-Packard.