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 oneâ€, you will bring in $1000 of revenue in the next 30 days.
Other estimates:
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
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 oneâ€, 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!)
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).The response rate is about 5%, i.e. you need to distribute 20 hangers to get 1 order.
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
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