CUSTOMER SEGMENTATION PROGRAM
Transcript of CUSTOMER SEGMENTATION PROGRAM
CUSTOMER SEGMENTATION PROGRAM
In 2006, the MRA undertook a large research effort designed to identify the profi le of
households most likely to purchase metal roofi ng. The project examined 35,000 actual metal
re-roofi ng purchases.
Using a segmentation system called PRIZM NE®, we were able to identify types of
homeowners who are much more likely than average to purchase metal roofi ng. The “target”
chart for all metal roofi ng purchases below illustrates how concentrated the market is.
The chart shows that ½ of all purchases come from about ¼ of households. And the
PRIZM NE system allows us to identify exactly where those households are in your market.
5 Lifestyle Clusters22.32% of sales /
9.88% of Households226 Index
8 Lifestyle Clusters21.70% of sales /
13.50% of Households161 Index
10 Lifestyle Clusters20.49% of sales /
15.47% of Households132 Index
8 Lifestyle Clusters13.84% of Sales/
13.13% of Households105 Index
Remaining 35 Clusters21.65% of sales/
48.03% of Households45 Index
market
Distribution of Metal-Friendly Households by Block Group
Profi les were generated for both standing seam and modular panel households (they are
quite different, by the way). With the profi les in hand, we are able to identify the areas in
each market that have the highest density of potential metal roof purchasers, as shown in the
sample map below.
The map shows which neighborhoods have the highest percentage of households most likely
to purchase a metal roof. These areas are indicated by dark red and red coloration. The least
likely areas are indicated by blue blocks. A corresponding table shows the exact number of
households and metal-friendly households for each block group.
This information is an invaluable marketing tool for a contractor. It can be used to pinpoint
direct mail and other place-based media efforts.
The MRA has tested the Segmentation Program in several markets around the country:
La Crosse/Eau Claire, WI; Ft. Smith, AR; Harrisburg, PA; and Birmingham, AL.
Metal roofi ng share of sales in those markets increased dramatically—to as much as 21
percent share of market.
A Midwest Market
The Segmentation Program has been proven effective, and you can put it to work for your
business through the MRA’s Contractor Direct Mail Program. Here are the details:
1. Determine which of three audience options you would like to fi nd based on your
product mix:
• Vertical Seam panels
• Modular products
• Both types of metal roofi ng
2. Contact the MRA to have an analysis run to identify the most desirable block groups
according to the product type selected. You will receive maps and supporting tables
showing the number of “metal-friendly” households for each block group in your
market area.
3. Decide how many households you would like to market too by mail. Identify
the blockgroups that you would like to mail to and provide that information to
Copacino+Fujikado, the MRA’s advertising agency.
4. Copacino will order a list of addresses corresponding to your mailing requirements
from Claritas Corporation. The cost of renting the addresses is to be paid by the
contractor and is as follows, including set up charges:
• $54 per thousand addresses for one time usage
• $114 per thousand addresses for unlimited usage for one year. (You can mail to
them as many times as you would like during the one year period.)
5. The list of “metal friendly” addresses can either be sent to your direct mail supplier,
your in-house mailing facility or Copacino + Fujikado (MRA) can help you further
with the direct mail program.
6. You will need to have a mailing piece to send to the consumer, either your own or a
standardized mailer developed by Copacino + Fujikado and modifi ed with the your
specifi c information and visuals.
7. MRA (through Copacino + Fujikado) is prepared to work with contractors to develop
a mailer postcard, print it and handle the mailing. This is an additional cost to the
contractor.
• This is a turnkey online process. Select a postcard design, provide your address,
message and photographs of jobs, and you can have your direct mail piece sent out
automatically to households that are most likely to respond to your message.
• Cost of this turnkey service is $.50 per unit sent, including postage.
8. An ideal test program in your market may be to mail to 10,000 “metal friendly”
(high index) addresses three times (3X), using intervals of 2-3 weeks. A program of
this type would cost around $15,000.
The market analysis identifying block groups with 50,000 metal friendly households costs
$500 per location. Gold level members receive their fi rst location free. Join the MRA today
to access this and many other great benefi ts.
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