PODi CASE STUDY BRAKE CHECK INCREASES STORE TRAFFIC WITH PERSONALIZED DIRECT MAIL

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1 PODi 1 CASE STUDY BRAKE CHECK INCREASES STORE TRAFFIC WITH PERSONALIZED DIRECT MAIL PODi is a global, member-supported notfor-profit organization. The PODi library consists of over 500 digital printing and marketing case studies from around the world.

2 2 Project: Vertical Market: Business Application: Retail Direct Marketing/Traffic Generation Business Objectives Brake Check, a family-owned and operated automotive service company, has 41 store locations in Texas. When opening new retail stores, Brake Check regularly employed static direct mail as a way to offer specials and attract local customers. A typical response rate was 1-2%. For its newest location in Harker Heights, Texas, Brake Check hoped to improve the performance of its direct marketing. A campaign was needed that would: Introduce Brake Check s new shop to the local population Entice customers to visit the store by offering Grand Opening specials Make sales and start building customer relationships with a goal of longterm customer loyalty Results In July 2010 a personalized direct mail campaign was conducted that targeted prospects for the Harker Heights location. The results of this campaign are compared to a similar static campaign that was conducted in October Personalized Direct Mail 3.6% response rate 541 coupons redeemed for total sales of $24,000 Static Direct Mail Less than 1% response rate 45 coupons redeemed for total sales of $1, PODi, the Digital Printing Initiative

3 3 Target Audience Brake Check needed to move away from minimally targeted direct mail and adopt a highly targeted market approach for its product. To stand out from competitors, Brake Check relies on building relationships with clients by working to always deliver on its motto We do it right, for less. When opening new locations, Brake Check mailed static postcards with coupon specials to entice customers to visit for automotive services. The target audience was determined by a geographic radius from a store s location and other demographic criteria such as homeowner or income level. Through the years, Brake Check continually updated its customer database but had not utilized the information it acquired when targeting new clients. For the opening of the Harker Heights location, their service provider provided Brake Check with a sophisticated customer analysis and developed a personalized direct mail campaign. The customer analysis presented a clear profile of who Brake Check s best customers were and the characteristics that identified them. These characteristics included marital status, children in household, homeowner, and geographic area. With the analysis complete, Brake Check knew what characteristics to look for when trying to acquire new clients through direct mail. Instead of only targeting prospects based on a couple of criteria, Brake Check could now put their resources into attracting the clients that were most like their existing best customers. Campaign Architecture A personalized direct mail campaign was developed that would focus on Brake Check s targeted audience and entice them to visit the new location. In July 2010, a 6 x 11 oversized postcard with name personalization on the front and back was used to immediately gain the attention of recipients PODi, the Digital Printing Initiative

4 4 After realizing a good response to the personalized postcard, Brake Check decided to send a second campaign in October 2010, again to invite prospects to visit the new location. They expanded their list to cover a larger area. But this time Brake Check decided to use a static postcard, still focusing on the best prospect match criteria from its customer analysis, but without variable elements. Brake Check was not convinced that the highly targeted variable approach made a significant difference. The static card contained similar coupons to the personalized mailer but did not include any personalization or image swap outs. After mailing the static postcard, Brake Check analyzed the results of the two mailers and discovered that the highly targeted personalized direct mail produced a higher return on investment with a higher sales volume than the static card. Brake Check is currently in the process of opening another location and is once again using the highly targeted and personalized mail approach to acquire new clients. Offer Coupons for discounted service were offered on all of the postcards. The offers were the same for all recipients. List With a starting point of the new Harker Height s location, a five mile radius was used to develop a highly targeted list for the personalized direct mail campaign. In addition to the five mile radius, the purchased list was selected to contain prospects that best fit Brake Check s customer profile. For the static campaign a radius of 15 miles was used to develop the mailing list while also selecting demographics that matched Brake Check s best customer profile. Creative and Outbound Pieces The personalized postcard contained name personalization and a family image on the front of the card that varied based on the ethnicity of the recipient. Personalized postcard version PODi, the Digital Printing Initiative

5 5 For the static postcard the creative highlighted Brake Check s brand and commitment to automotive care. Patriotic imagery was used to resonate with the target audience which was in close proximity to a United States Military base. Static postcard version For both versions a prominent map on the back of the card enabled Brake Check to highlight the convenience of its new location for recipients. Reasons for Success From this campaign Brake Check learned valuable information about their customers and about the power of relevant marketing. Best practices learned from this campaign include: Use data analytics to improve response. Don t make assumptions about who your best customers are. Study your customer data and purchasing history to understand who you should target and what products or services to promote. Gain attention with personalization. With name personalization and relevant imagery Brake Check was able to attract new clients and drive business PODi, the Digital Printing Initiative