Challenge
The challenge was to grow business from areas previously designated as “poor” retention markets, which in this case meant bringing customers in from previously untapped zip codes.
Approach
Based on Urban Science’s manufacturing reports, it was identified that 10 zip codes in the dealership’s region had not yielded customers. A mailing list was created to show how segmented targeting would be effective. Customers received a 45-day direct mail piece with a winter-driving focus.
Results
The postcard was mailed to 7,500 dealership repair order names and prospect names from the 10 targeted zip codes. The targeted customers resulted in a 9.37% response rate with 704 responses. ROI for the mailer was $40.23 per dollar invested.
An analysis confirmed that segmented marketing lists can work successfully. The accuracy of the 10 targeted zip codes was also confirmed. During that 45- day period, ROs from the targeted mailing areas made up 8 out of 10 of the top responding zip codes for that month.
In this case, because they cut back on marketing to all regular customers in order to target the untapped 10 zip codes, they saw that some of their regular customers did not come in. This supports the idea that direct mail is an important trigger, even to loyal customers.
