Doorhanger marketing

Originally posted by: MoeMoney

New postby MoeMoney » Sun Sep 26, 2010 3:22 am
I did an extensive, though admittedly amateur experiment with doorhanger marketing as a pizza delivery driver. I put little identifying marks on the coupons on 3500 doorhangers and hung them over the course of 5 months. I kept track of the ones I got back on delivery. Using the data stored in my store’s POS system, I extrapolated using ratios to see how effective this marketing method is.

After a lot of number crunching, I came up with an estimate that, for each doorhanger you hang, you bring $1 of income into the store within the first month. In other words, if you hang 1000 doorhangers on “day one”, you will bring in $1000 of revenue in the next 30 days.

Other estimates:

In the 2nd and 3rd month after distribution, you will bring in 25 cents per doorhanger. So if you hang 1000 hangers you will bring in $1000 in month one and $250 in months two and three for a total of $1250 the first 3 months.

It gets really fuzzy after that, but I estimate you’d make $1500 in 12 months after hanging 1000 doorhangers.

It takes $250 in printing and distribution costs, or 1400 doorhangers, to get 1 new customer who will order more than once. (250 bucks in advertising costs to get a return customer! There’s got to be a better way!)

The response rate is about 5%, i.e. you need to distribute 20 hangers to get 1 order.

Revenue excludes driver tips and mileage allowance and carry-out orders. Revenue is also “net” after subtracting printing and distribution costs, but includes tax (I used 18 cents per hanger as the printing and distribution costs).

If an old customer used a doorhanger coupon on an order, I just counted that one order. If a new customer used one, I counted that first transaction and any more afterwads that the POS system recorded.

My distribution was pretty random. Most of the time I hung a few on deliveries when I had a minute to spare, and some while not working. Apartments, houses, businesses, everything. For most of the experiment I gave doorhangers to customers who tipped big, but stopped the last month when I realized I could be tainting the experiment!

So there you have it, perhaps the most thoroughly documented doorhanger experiment ever published! Or perhaps