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12
MONTHS
1,350
NEW CUSTOMERS
9.5%
RESPONSE
181%
ROI
Mesa, San Tan Valley, Apache Junction and Yuma, AZ · 4 hardware stores · New mover welcome package
$17K in additional sales!
Kabat’s Ace Hardware is one of the most progressive groups in the system. They are often first adopters and are willing to make changes that streamline operations, increase customer satisfaction and company profits. They are data driven and they live the jingle: Ace is the place with the helpful hardware folks. (Yes, now that will be going through your head all day. Sorry.)
Using the Ace Corporate New Mover Program? Click here to see why we totally outperform them.
The Problem
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They were weary of the program the corporate office recommends, the Valassis bundle. You know, that bundle of mail you get in your mailbox every week? It’s all different sizes and has coupons galore.
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They didn’t like sending repeat discounts to current customers week after week.
How We Helped
They decided to switch that budget over to a new mover campaign.
Home zips: We reached new residents moving into each store’s location zip.
Strategic zips: To gain additional market share, we added some surrounding zips where growth is strong and competition is weak.
A warm welcome: Hardware stores are a prime resource for new residents, and Kabat’s staff knows how to make them feel right at home on their first visit. When they see that gift certificate, the team knows to roll out the red carpet!
The Results
Over 12 months, Kabat’s four stores in Mesa, San Tan Valley, Apache Junction and Yuma, Arizona saw 1,350 new customers walk through their doors to cash in on the $10 gift certificate they offered. Response rates were 9.5% in their home zips and averaged out to 6.96% when we factored in the strategic zips.
Every new customer spent an average of $27.27 over the $10 gift certificate, which covered the cost of the mailing and generated an additional $17,138 in sales. These are averages, of course. There were some wowzers in there as well.
But the real value of this campaign is the sales over time. New residents in the Arizona market stay in their homes an average of 8 years!
These stores are still mailing with us today.
$27.27
average spent over the $10 gift certificate
Since 2000
And still mailing today.
In Their Own Words
Kabat’s treats every new neighbor like a regular from day one.
“We’re not in the hardware business, we’re in the people business. Give the people a reason to spend their money with you.”
Joseph Burks, Business Development Manager, Kabat’s Ace Hardware
Questions Owners Ask
Can new mover mail replace a weekly coupon bundle?
For Kabat’s it did. Instead of sending discounts to the same current customers every week, every piece went to someone new in town who hadn’t picked a hardware store yet.
Should a hardware store mail outside its own zip codes?
It can pay off. Kabat’s home zips responded at 9.5%, and adding nearby zips where growth is strong and competition is weak still averaged 6.96% across the whole campaign.
How much do new customers spend on their first visit?
At Kabat’s, new customers spent an average of $27.27 more than their $10 gift certificate, and some spent a whole lot more. That covered the cost of the mailing on first visits alone.
Want results like Kabat’s?
Let’s look at how many new movers are coming into your area every month.
More ways to reach your neighbors.
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