In the fast-paced world of service-based businesses, customer retention is paramount. But with so many channels available for outreach, it can be tricky to figure out which ones actually keep customers coming back.
In this case study, we explore the power of combining email and direct mail to enhance customer retention rates, using data from three Jiffy Lube franchises.
Franchise A: 16 Locations
Franchise B: 60 Locations
Franchise C: 30 Locations
The primary challenge was to determine the most effective channels for customer retention. Specifically:
By addressing these questions, we aimed to provide a clear strategy for franchises to maximize customer return rates.
To tackle these questions, we implemented a comprehensive omnichannel marketing strategy using Cinch. This involved:
Our study focused on three franchises, tracking customer interactions across five weeks. A total of 132,011 customers were divided into four groups:
Here's a breakdown of our sample size:
Contacting customers significantly increased return rates across all franchises:
Combining email and direct mail proved to be the most effective approach, showing a 28% return rate compared to:
Customers who were sent direct mail and opened an email returned at the highest rate of 39%. Even without direct mail, customers who opened an email had a return rate of 28%, highlighting the importance of engaging email content.
The average spend on return visits did not significantly differ between contacted and uncontacted customers. However, contacted customers showed a slight edge in spending.
By analyzing the data, we calculated the expected net revenue, and learned:
Ready to maximize your returns? Let’s look at the most valuable customers: those that received a mailer and opened the campaign email. We know their return rate was the highest at 39% with an average expected revenue of 127%.
Key Takeaway No. 1: If you aren’t sending mailers, you’re missing potential revenue.
Key Takeaway No. 2: If you aren’t actively working to improve your email open rates, you’re missing out on the highest possible return rate.
This case study underscores the power of combining email and direct mail for customer retention and revenue. Utilizing Cinch's omnichannel marketing capabilities, Jiffy Lube franchises saw significant improvements in return rates. By harnessing the strengths of both channels, businesses can create a more engaging and effective customer retention strategy.
Ready to unlock the full potential of omnichannel marketing? Schedule your demo with Cinch today and see how we can help you boost customer retention and grow your business.