%
Increase in Revenue Over Four Years
%
Reduction in Media Costs After Successful Restructure and Negotiation
Company Overview
This Home Services business is a leading provider of essential home services, offering a comprehensive suite of solutions. Our client has established itself as a trusted partner for homeowners with a strong commitment to customer satisfaction and a focus on building long-term relationships.
Business Problem to Solve
A private equity company purchased this leading Home Services business, expecting to expand into multiple markets. They aimed to enhance top-line revenue growth, optimize marketing spend, and maintain a competitive edge in dynamic markets. The ultimate goal was to optimize the value of these businesses with a five-year target exit.
Strategic Assessment & Key Actions
Scale performed a Marketing Data Assessment to identify the company’s strengths, weaknesses, and opportunities. The assessment included:
Analysis of 1st Party Data, including customer segmentation, to identify primary and secondary target customers and to highlight their most profitable customers
Visualization of lead trends and seasonal influences, including identification of lead indicators and highest ROI opportunities by week/month and seasonality
Customer Media Consumption Analysis and trends
Marketing connection to sales performance
Traditional media audit and value return from vendors
PPC audit & analysis
Optimization Opportunities
Recognizing the opportunity for significant improvement, Scale Marketing conducted a thorough analysis of this business’s existing marketing strategy. This assessment identified key areas for optimization, including:
Target Audience Refinement
Identifying higher-value customer segments with greater potential for long-term revenue.
Media Cost Optimization
Negotiating more favorable rates with media partners to improve return on investment.
Campaign Performance Enhancement
Analyzing existing campaigns to identify areas for improvement in targeting, messaging, and creative execution.
Scale Marketing’s Approach
To achieve the growth objectives, Scale Marketing implemented a multi-faceted strategy:
- Elevated Target Customer Profile: Scale raised the target income threshold for potential customers, aligning marketing efforts with higher-value clientele and improving average service ticket size.
- Media Contract Restructuring: Scale successfully restructured media contracts through strategic negotiations, resulting in a significant 31% reduction in media costs.
- Media Mix Assessment & Realignment: Aligned the target demo identified through segmentation with high-indexing media based on media consumption.
- Honed in on Stations & Programming Where We Could Find Our Customers: Identified high-indexing TV & Radio stations/programming maximizing opportunities where the target customer spent higher than average time compared to the market.
- Media Mix Diversification: Two new media channels were strategically integrated into the marketing mix, expanding reach and diversifying customer acquisition channels.
- Built Frequency Against the Target Customer: Once we identified the target customer, we drove up frequency on that audience to increase awareness and recall.
- Flighted Media Based on Goals and Seasonality: Reworked the flighting of the media to align with the business goals and weighted the media based on periods of historical demand.
- PPC Campaign Optimization: Scale revamped existing Pay-Per-Click (PPC) campaigns, leveraging data-driven insights to improve targeting, ad quality, and conversion rates. This optimization delivered an increased volume of qualified leads while maintaining efficient cost-per-conversion ratios.
- Audited Monthly Spot and Impression Delivery: Ensured media ran as ordered and performed delivery postings to guarantee the company received the guaranteed impression volume. Held stations accountable for delivering impressions that were ordered.
Client Results
The partnership yielded impressive results:
- Revenue Growth: Over the four-year partnership, this Home Services Company achieved a remarkable 60% increase in revenue.
- Cost Efficiency: Despite significant revenue growth, advertising costs increased by only 13% over the same period, demonstrating the effectiveness of the cost-optimization strategy.
- Enhanced Market Reach: The addition of new media channels significantly expanded the company’s reach and customer base.
- Improved Campaign Performance: Optimized PPC campaigns drove a higher volume of qualified leads and improved overall campaign ROI.
Strategic Assessment & Key Actions
This case study demonstrates Scale Marketing’s ability to drive significant growth for home services businesses. By leveraging data-driven insights, optimizing media spend, and implementing innovative marketing strategies, we helped this Home Services Company achieve remarkable results while maintaining a competitive edge in the market.
Data-driven decision-making is paramount.
Analyzing data to identify areas for improvement is crucial for optimizing marketing spend and maximizing ROI.
Continuous optimization is key.
Regularly reviewing and adjusting marketing strategies based on performance data is essential for sustained growth.
Reinvesting in marketing drives growth.
Strategic reinvestment of cost savings allows for expansion into new channels and increased marketing reach.
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