Case Studies
Handyman Company's Direct Marketing Repaired
THE CHALLENGE
The client, a national handyman company, provides a wide variety of high quality home repair services. This company had tried various direct marketing programs in the past with very little success until they found Money Mailer Direct Marketing’s complete solution of shared mail, one-to-one and interactive direct marketing. We were tasked with building a solution that would actually provide all of the benefits the client knew was possible but was not able to achieve before utilizing our wellplanned and well-executed system.
THE BOTTOM LINE
The early objective was to acquire new customers for the client’s franchisees through shared mail. Return on investment was the measure of success, and our results would be measured against ROI from other major direct marketing companies offering shared advertising vehicles. To get started, the client provided us and the competing direct marketing companies with a sample of recent customer records from the client’s customer database.
OUR APPROACH
With the client’s customer database sample, Money Mailer Direct Marketing performed a lifestyle segmentation analysis to determine the degree to which 66 different types of the client’s customers exceeded or fell short of market expectations. Customer value scores were assigned to each of the 66 customer segments, and each segment’s score was measured against the respective segment’s propensity to purchase in each of our shared mail zones within the client’s trade area. The resulting shared mail zone scores were based entirely on a detailed assessment of how well- Handyman Company’s Direct Marketing Repaired Money Mailer Direct Case Study We outperformed the competition by 22%. The client selected us as their complete direct marketing solution provider suited the zones were for targeting prospects that “look like” their best customers. We also ran the client’s custom zone targeting scores up against zone scores modeled from contractor expenditures data, owneroccupied housing data, and single family dwelling unit counts. There was significant co-linearity between the custom scores and the other scores, but there were also various nuances that typically can only be revealed by modeling a client’s own customers.
OUR SOLUTION
Two of the client’s franchise territories were used to test MMDR’s shared mail program against those of our competitors. Both MMDR’s shared mail zones and those of the competitors were selected based on market potential scores modeled for each zone, but as it turns out, some models are better than others.
THE REAL BOTTOM LINE
The ROI from all competing shared mail programs was compared by the client. Money Mailer Direct Marketing’s program outperformed the next best company’s blue envelope by 22 percent! Since then, the client has used us exclusively for customer acquisition solutions involving shared mail.
Subsequently, the client selected us as their complete direct marketing solution provider. Several one-to-one programs are being tested along with the continuing shared mail programs. Early measures are showing strong synergies when Money Mailer Direct Marketing’s integrated approach is combined.