Hardware Store Direct Mail Success Story

Hardware Store Direct Mail Success Story

Customer Objective

A hardware store owner wanted to increase traffic to his store as well as improve the return on investment on his advertising spend.

Campaign Strategy

  • Target the households surrounding the store location that were more likely to shop at hardware stores

  • Offer 4 different coupons to test for effectiveness

    • Offer 1 – 20% off regular priced item
    • Offer 2 – $5 off a $20 purchase
    • Offer 3 – 15% off Weber Grills
    • Offer 4 – Discount STIHL equipment

Campaign Results

15% OFF Weber Grills • 5 Coupons Redeemed
$5 OFF $20 • 72 Coupons Redeemed
29% OFF • 77 Coupons Redeemed
0
Sold 16 pieces of STIHL equipment
$0
Received $8.76 back for every dollar spent on the direct mail campaign
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Hardware Industry Trends

Hardware industry professionals believe that Millennials hold the key to future growth for the category. Combine that with the fact that they are twice as likely to respond to paper coupons than other discount methods and you can see how direct mail can make a big impact with this customer segment.

Here are some other hardware industry trends.

  • Battery-operated handheld equipment is poised to be a major trend.

  • Hardware stores typically experience demand before big storms, such as hurricanes and snowstorms.

  • Dealers are encouraged to market to the needs and preferences of millennials, who are poised to be a major market for these products.

  • More of hardware retailers are offering workshops, classes, and demonstrations to attract consumers.

  • Once drivers of the DIY trend, boomers are now increasingly interested in do it for me (DIFM) products and services. Retailers report that in particular, demand for services, rather than hardware and tools, is on the rise among this demographic.

Sources: 2019 Industry Forecasts: Part 1 of 2″ OutdoorPowerEquipment.com, 9 Jan. 2019. Web. 16 Jan. 2019., “Winter weather lucrative for local hardware stores.” KMOV.com, 10 Jan. 2019. Web. 22 Jan. 2019.,” Home Improvement Marketers Get Read — Millennials Are Moving On Up.” Valassis.com, 26 Jun. 2017. Web. 22 Jan. 2019., SalesFuel, 2019, “A Look at Installations and Services for the ‘Do It for Me’ Market.” HardwareRetailing.com, 27 Dec. 2017. Web. 5 Oct. 2018

Hardware Industry Trends

Hardware industry professionals believe that Millennials hold the key to future growth for the category. Combine that with the fact that they are twice as likely to respond to paper coupons than other discount methods and you can see how direct mail can make a big impact with this customer segment.

Here are some other hardware industry trends.

  • Battery-operated handheld equipment is poised to be a major trend.

  • Hardware stores typically experience demand before big storms, such as hurricanes and snowstorms.

  • Dealers are encouraged to market to the needs and preferences of millennials, who are poised to be a major market for these products.

  • More of hardware retailers are offering workshops, classes, and demonstrations to attract consumers.

  • Once drivers of the DIY trend, boomers are now increasingly interested in do it for me (DIFM) products and services. Retailers report that in particular, demand for services, rather than hardware and tools, is on the rise among this demographic

Sources: 2019 Industry Forecasts: Part 1 of 2″ OutdoorPowerEquipment.com, 9 Jan. 2019. Web. 16 Jan. 2019., “Winter weather lucrative for local hardware stores.” KMOV.com, 10 Jan. 2019. Web. 22 Jan. 2019.,” Home Improvement Marketers Get Read — Millennials Are Moving On Up.” Valassis.com, 26 Jun. 2017. Web. 22 Jan. 2019., SalesFuel, 2019, “A Look at Installations and Services for the ‘Do It for Me’ Market.” HardwareRetailing.com, 27 Dec. 2017. Web. 5 Oct. 2018

Hardware Advertising Opportunities in Rural America

  • Rural consumers are 12% more likely than average to own workshop equipment

  • They are 43% more likely than average to paint the exterior of their homes themselves

  • These consumers were 21% more likely than average to have done interior/exterior staining in the last 12 months and 47% more likely than average to have done it themselves

  • When asked if they planned to do any home remodeling in the next 12 months, survey respondents were 8% more likely than average to indicate they were

Source: Summer 2019 NHCS Adult Study – 6-month

How Do I Find My Best Rural Hardware Customers?

Our Consumer Analytics team are highly skilled in the science of micromarketing. What does that mean? Micromarketing is another way of saying that we develop a marketing strategy in which your direct mail advertising efforts are focused on a small group of highly targeted customers. This gives your message the best chance possible to be seen by the right customers at the right time.

Direct Mail’s Influence on Hardware Customers

  • 63.4% of do it yourself home improvement/restoration customers responded to an ad or coupon in their mailbox in the last 12 months – 17% higher than all adults in the United States
  • 63.5% of ACE Hardware customers have responded to ads/coupons in the mailbox in the last 12 months
  • 67.9% of True Value Hardware customers have responded to ads/coupons in the mailbox in the last 12 months
  • According to the 2018 Data and Marketing Association Response Rate Report, average direct mail response rates come in at 9% for a house list and 5% for a prospect list. This is nearly double the response rates reported in 2017 and a testament to how data and precision targeting can produce better results with campaigns./li>

Sources: 2018 DMA Response Rate Report, AudienceSCAN 2019

Do You Have Any Questions About How Direct Mail Can Grow Your Business?

If you have any questions about how direct mail can grow your business, we would be happy to answer them. You can call us at 877-620-6283 or select GET STARTED TODAY to fill out our form.

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