Marketers chasing aggressive growth goals while overcoming obstacles can use ‘snapshots’ of existing customers to effectively zero-in on their best prospects. Scotts LawnService decided to relandscape in 2003 by increasing prospect response and retention rates as part of a long-term goal to widen its geographic footprint.
In 1997, Scotts LawnService established its initial footprint in the market with the acquisition of Emerald Green. Through the years, Scotts has sustained growth through the direct mail program that contributes to 61 percent of total spring lawn service sales.
Vertis Inc., a provider of targeted advertising, media and marketing services, overlayed data from their sophisticated demographic and lifestyle analysis of key consumer motivators on top of Scotts existing customer segmentation to create a “snapshot” of their most likely customer. It customized a direct messaging strategy based on the type of customer Scotts was seeking. Prospects could respond via mail, telephone or the Web.
“We wanted the ‘do-it-for-me’ customer,” says Art Hall, senior director at Vertis Integrated Data Solutions Group. “These include busy parents with busier kids, the weekend golfer who would rather play the back nine than fertilize the front lawn, the homeowner who might not know the difference between Kentucky bluegrass and perennial ryegrass but wants a green, lush lawn the neighbors envy.”
ZIP Code™ clustering, along with other proprietary demographic and psychographic variables, identified prospects in specific areas with common aspirations for their lawns.
“The campaign helped us overcome the challenge of adding new market segments and growing in existing markets,” says Dan Adams, Scotts LawnSevice marketing manager. “With the direct mail program, we target our best prospects and develop a communication piece that consumers were most likely to take notice of, resulting in increased consumer response across all market segments.”
Scotts’ goal was to build a fluid model that continues to provide insight into their best prospects as the company expands territories and factors in rates of attrition. Scotts LawnService, a division of The Scotts Company LLC, is in 73 of the top 100 U.S. lawn service markets with a goal of having a substantial presence in all 100 markets within the next several years. This is key to paying off the brand promise. “As we build on our one-to-one direct marketing approach, we will focus on communicating clear service expectations and industry-leading service for our customers,” says Adams.
Results exceeded expectations. Response rates in 13 initial target markets tracked 15 percent ahead of Scotts’ historical average in the first year of the program. Even though Scotts has since raised the bar based on past performance, the response rates continue to increase with each successive program.
“Working with Scotts, we learned that the more you understand your partner’s strategic direction, the more effectively you can develop a model that addresses their challenges and meets long-term goals,” says Hall. “Everyone has access to the same data, but how you append information, then analyze and apply it, separates the effectiveness of one model from another.”
Case Studies, CRM/Customization, Large Business, Medium Business, Prospecting, Segmentation
