RADIUS MARKETING - defined as mailing the message of a recent installation to the 50 closest neighbors has proved to be one of the most efficient and least expensive ways to grow sales by 77%.
After nearly 20 years of providing this service to HVAC and home services contractors across the USA, we have finally been able to quantify results in a rock solid manner. In the past, we have implemented call tracking as the best gauge to determine results. However, this method has flaws. When mailing a neighborhood with a branded message boasting that with all of the choices available to your neighbor, they placed their trust in us, by relying solely on the phone number published in the mailer is not an accurate measure of results.
Many people receive this mailing, see your name and logo, and fail to keep the card. Days, weeks or months later, they experience similar issues. After all, they’re in the same neighborhood that’s experiencing system failures so their propensity to have similar issues is high. There’s the potential that your repeated mailings are resonating your name in their mind. They may Google your name, or if you have been to their home before, they may refer to a service sticker from their equipment. Both of which will not match the call tracking number in your mailer.
To gather results with proven accuracy, we were able to get a manufacturer to share installation warranty data for their dealers. By matching the homes that we’re mailed on behalf of a dealer, with subsequent proof of a sold unit, we were able to ascertain precisely how many of them actually purchased. The numbers were staggering.
To be sure we weren’t pulling too small of a sampling, our study incorporated 10 different dealers from 10 different markets. To further the validity of the study, we did a broad sampling of a combined total of 140,000 mailed pieces in total between the 10 dealers.
Here we’re the results:Of the 140,000 homes mailed among the 10 dealers, 817 subsequently bought a new unit from the dealer that mailed their home. This was evidenced directly from warranty registration data. This resulted in only 194 mail pieces sent to create an installation. That’s a total cost of less than $173 of marketing to get a new system sold.
For every 5 units sold, nearly 4 more were subsequently sold after radius marketing the neighbors. This reflects a 77% increase in sold units when radius marketing was implemented. While factors such as contractor reputation, seasonality and timing can contribute to variances in results, past performance is no guarantee of future success. However, these numbers speak for themselves.