Len the Plumber needs a constant flow of leads to keep growing its business, but other marketing service providers were not able to meet its needs.
Len The Plumber (LTP) started business in Baltimore where they were a well-known brand. When they began expanding into new markets and other states, they needed to build brand awareness and leads in the direct mail channel. The company had been using standard postcards in the Baltimore market for years with great success, but the response rate in newer markets was not cost effective. LTP engaged Clapp 360 Communications to develop an advanced marketing campaign with a higher response rate and more leads that converted to sales.
After an in-depth evaluation of LTP’s customer file, which included a demographic analysis of sale/no sale transactions, Clapp 360 Communications created a demographically and psycho-graphically targeted magnet postcard campaign. By eliminating likely no sale consumers, response rates doubled. Testing success in 2018 supported a roll out in 2019. The staying power of the magnet combined with the targeted demographics proved to be a powerful mix.
LTP had maintained a transaction history of every customer site visit since their inception, including no sales. This vast archive of data was a gold mine for research. Clapp 360 Communications in partnership with Experian Data appended 500 demographic and psychographic fields to LTP data and used its proprietary research tools to identify 10 statistically significant characteristics that predicted the sale/no sale outcome of a home visit to a very high degree of likelihood. Based on these results, Clapp 360 Communications created a predictive model that facilitated the evaluation of new and existing markets lead volume and assisted in improving conversion rates.
The model provided LTP with two key strategic advantages. First,when deciding what markets to expand the business into, they could be sure where their best customers would be and avoid those that would be less productive. Secondly, they could target specific customers economically, minimizing their spend and maximizing their return.
The next task was to identify a marketing deliverable that would ensure a high response rate. Since the regular postcard could easily be discarded if there was no active plumbing issue, Clapp 360 Communications pitched the idea of using magnet postcards. If a customer didn’t have a plumbing issue at the time of receipt, they would have the magnet on hand for quite a while to think of and use LTP for any issues in the future.
LTP wanted to target consumers in its markets of Baltimore,Washington DC, Northern Virginia, and Pennsylvania-Delaware. The objectives were to drive leads that would convert at high rates cost effectively and keep their brand top of mind for future services. To ensure valid measurement for testing, DM used different phone numbers to track calls.
Clapp 360 Communications pulled data through its model and prepared, packaged, and shipped magnet postcards to the targeted customers. In-homes dates were planned around market conditions.
Clapp 360 Communications prepares magnet postcards to be shipped using presorted standard shipping, which usually takes 10 days. Clapp 360 Communications mails in the middle of the month on a Monday so consumers receive reminders during the times that LTP wants to take more calls.
In 2018, Clapp 360 Communications shipped postcards to LTP’s consumer base in February, May, August, September, October and November. Clapp 360 Communications and LTP have continued this campaign, now on a monthly basis, due to its success and operate smoothly throughout the process.
Clapp 360 Communications was able to deliver four times the return on investment for LTP. Even though the cost was more per unit, the higher response rate was more than enough to offset it. Many people respond to the campaign and the response period is much longer than standard postcards. LTP receives an average of 430 leads per month from this channel. The postcards have coupons attached that elevate interest and engagement. This campaign has done so well that the mailings escalated from every other month in 2018 to monthly in 2019. When compared to other DM products, like standard postcards,the magnet mailer generates two times the response rate. The demographic targeting also increases the likelihood of conversion to sale significantly.