CUSTOMER SEGMENTATION PROGRAM

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CUSTOMER SEGMENTATION PROGRAM In 2006, the MRA undertook a large research effort designed to identify the profile of households most likely to purchase metal roofing. The project examined 35,000 actual metal re-roofing 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 roofing. The “target” chart for all metal roofing 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 Clusters 22.32% of sales / 9.88% of Households 226 Index 8 Lifestyle Clusters 21.70% of sales / 13.50% of Households 161 Index 10 Lifestyle Clusters 20.49% of sales / 15.47% of Households 132 Index 8 Lifestyle Clusters 13.84% of Sales/ 13.13% of Households 105 Index Remaining 35 Clusters 21.65% of sales/ 48.03% of Households 45 Index

Transcript of CUSTOMER SEGMENTATION PROGRAM

Page 1: 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

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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

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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.

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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.

Postcard front Postcard back