The Home Depot Case Study - Canada Post: Marketing Partnerships Drive Sales Conversion Rates The Home Depot home services campaign yields ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Canada Post:
The Home Depot Case Study
Marketing Partnerships Drive
Sales‑Conversion Rates
The Home Depot home‑services campaign
yields remarkable results
6-216 (02-09)
“We’ve worked with
Canada Post for years.
We rely on their
expertisewith direct-mail
campaign execution,
their understanding of
our business, and their
supportive, expansive
nationalnetwork of
partners and suppliers.”
Airi Ritokoski, Direct
MarketingManager,
The Home Depot Canada
To be an industry leader sometimes
requiresrisk-taking and experimentation.
That was precisely the spirit in which
The Home Depot Canada’s Direct
and leverage those profiling results to Profile-building
Marketing Manager Airi Ritokoski
create a sharply targeted home services Given the importance of the profiling
approached her fall home-services
direct-mail campaign for both new component to the campaign and
marketinginitiative.
prospects and existing customers. the complex data analysis required,
Canada Post advised Ritokoski to
Ritokoski and her team wanted to
To assist her, Ritokoski called on her engage the services of Generation5
optimizetheir targeted marketing
trusted colleagues at Canada Post. Mathematical Technologies (Gen5), a
effortsfor installation services,
“We’ve worked with Canada Post for Canadian firm providing both standard
workingwith data they had gathered
years. We rely on their expertise with and customizedcustomer-prediction
on previous buyers of more than
direct-mail campaignexecution, their analyticalmarketing solutions. Gen5
40 differentsets of home services.
understanding of our business, and has proven expertise in postal code
She was convinced The Home Depot
their supportive, expansive national targeting for retail organizations.
could closely profile customers who had
network of partners and suppliers,”
previouslypurchased its home services
says Ritokoski.
2
Gen5’s role was to create a profile of Matching the postal codes of The Home “We were surprised to discover this,”
The Home Depot’s existing home‑services Depot’s existing home‑services customers says Ritokoski. “Our aim was to launch
customers, identify other prospective and their characteristics with the postal a highly targeted campaign—for
customers with the same characteristics, codes of similar Canadians, Gen5 was example, to discover which servicea
classify those prospects and then develop able to identify the top five Retail painting customer was most inclined
a targeting scheme using seven different Mosaic groups for targeting. Using lists to buy next. But it turned out that all
service categories (backyard, bath, décor, from InfoCanada, Gen5 was then able home‑services customers have a high
doors and windows, flooring, home to identify an additional set of prospects. propensityto purchase all home services.
services, and kitchen). In the end, the campaign mailing list This taught us that our traditional
consisted of 60 per cent existing approach is in fact quite effective. In
Gen5 used its proprietary Retail Mosaic customers and 40 per cent acquisition that respect, it was highly validating.”
profiling platform. The system comprises clientele.
20 different retail groups (representing
150 customer types) across the country. Interestingly, Gen5 also discovered
Each Mosaic group shares common that all home‑services categories
characteristics (demographic, lifestyle, were strongly indexed across the five
financial). customer types—important learning
for Ritokoski and her group.
TM
Trademark of Canada Post Corporation
“The big news with this mailing
is the conversionfigures. The
campaign deliveredresponse
rates up to double the average
for existing customers, and up
to 70 per cent above average
for prospects. We’re delighted
with those results.”
Lia Jasani, Marketing Manager,
InstallationServices & Pro,
The Home Depot Canada
”The profiling exercise refined
Home Depot’s perceptions about
buyer behaviour,” says Jim Green,
service for each of the three home‑ “The mailing delivered response rates
Senior Director, Client Management
service areas, for a total of just under up to double the average for existing
for Gen5. “That’s valuable learning.
200,000. Trackingdevices allowed customers, and up to 70 per cent above
And it affirmedthe effectiveness of
Ritokoski and her team to monitor average for prospects,” says Lia Jasani,
targeting existing customers with
response from these prospects from Marketing Manager, Installation Services&
Addressed Admail.”
lead to converted sale. It also enabled Pro with The Home Depot Canada. “We’re
Campaign design and The Home Depot to conduct an delighted with those results,” she adds.
execution in-depth post-mortem followingthe
Canada Post’s Addressed Admail™ conclusion of the campaignto gather According to Ritokoski, those figures
service was the mechanism for reaching valuable learning for application in confirmed for The Home Depotthe
customers and prospects. Ritokoski and subsequent direct-mail efforts. effectiveness of targeting offerings
her team designed the campaign to to consumers who have previously
focus on three of The Home Depot’s Above-average purchased similar services as well as
conversion rates
installation services. Three distinct the importance of authenticating
Though response rates were affected
mailers were created; each incorporated preconceptions over time against
in part by the campaign’s timing and
a time-limiteddiscount or promotion as concrete customer data. Ritokoski also
duration, the rate of conversion from
well as tracking mechanisms, including acknowledged the valuable project-
lead to sale for those individuals
operator codes and bar codes. management support providedby
who did respond to the offer was
Canada Post through the direct-mail
remarkable—far surpassing The Home
Approximately 66,000 mailers were campaign, and its facilitation of The
Depot’s averagesand industry norms.
sent out using Addressed Admail Home Depot’s partnership with Gen5.
4
”The profiling exercise
refinedHome Depot’s
perceptionsabout buyer
behaviour. That’s valuable
learning. And it affirmed the
effectiveness of targeting
existing customers with
Addressed Admail.”
Jim Green, Senior Director,
Client Management, Gen5
Addressed Admail service: the competitive advantage
Addressed Admail service proved a success for The Home toll-free numbers or invitations, they can facilitate quick
Depot’s Airi Ritokoski and her direct-marketing team—and and easy consumer response.
she’s not alone. The service is a highly effective option for
reaching Canadian consumers. Addressed Admail service offers one important additional
benefit: success can be measured at the end of each
Research shows that, of all forms of direct marketing, campaign, providingvaluable insight for subsequent
prospectivecustomers are most responsive to mail. Unlike direct-mail initiatives.
advertising media, which demand immediate attention,
mail allows customers to read up on offers and promotions “Our customers invariably agree that Addressed Admail
when the time suits. is an affordable marketing mechanism with real return
on investment,” says Sunny Kumar, retail sector account
Addressed Admail service, in particular, captures attention: executiveat Canada Post. “Addressed Admail is an integral
it allows companies to target mailings in a way that reflects part of the marketing mix for small, medium and large
customers’ established interests, to personalize promotional businesses in a wide range of industry segments, including
messages and, as a result, to have greater impact. automotive, finance and insurance, real estate, consumer
packaged goods, and retail.”
With Addressed Admail service, businesses of any size are able
to build on existing relationships or reach new customers with Kumar adds that the service is ideally suited to businesses
purchased target lists. By focusing their marketing efforts, seeking to generate in-store or web traffic, upsell or cross‑sell
they can connect with those individuals most likely to respond, to existing customers, and/or encourage product trials.
reduce waste and generate increased response rates—just
as The Home Depot did. By building in reply vehicles, such as Pricing for Addressed Admail service varies according to
Business Reply Mail™ service, order forms, web addresses, physical dimension. It is calculated using a base price plus
a per-gram weight adjustment for items over 50 grams.
5
“We’re thankful to Canada Post for introducing Gen5 as a partner,” says Ritokoski. ”The relationshiphas yielded important learning for Home Depot—knowledge that will inform various direct marketing efforts going forward.” About Canada Post Canada Post is a leading provider of direct mail and other targeted‑marketing solutions. Businesses, charities and other groups use Addressed Admail service to promote their products and services to leading customers and prospects on a targeted and personalized basis. For more information, please visit canadapost.ca or call 1-866-747-3871.
You can also read
