Analyzing Outbound Campaigns - December 2023

Chiirp Revenue Performance

👋 Hey, Jon here! This week, I analyze revenue generated from Chiirp outbound campaigns across a sample of 70 businesses. These businesses span HVAC, plumbing, roofing, and garage doors - while it isn’t broken down by service type in this issue of the newsletter, we will begin to do that in the future.

As a refresher, below is November’s outbound campaign performance summary:

• Response Rate: 8.7%

• Total Revenue Opportunity: $209,808 per location

• Closed Revenue: +25% month-over-month ($145,744)

• Closed Revenue Generated (70-location sample): $10.2 million

• ROI: 145x

We did see a general slowdown in demand across other marketing channels in December, but for the second straight month, revenue generated by Chiirp outbound campaigns grew. Adding a robust outbound strategy to your arsenal can be critical, especially during times of lower demand.

Before you dive into this data, I want to give a huge shout-out to Phil Risher for hosting me on his podcast last week. If you are curious to hear about the origins of SearchLight, our data platform, and my background going from garage saleing, to landing on Gary V’s podcast, and getting into home services, you can listen to that here.

And one more thing - if you are interested in learning about the origins and the why of Chiirp, make sure to check out this interview with their Head of Sales and Partnerships Justin Judd in the HomePros newsletter.

Chiirp Outbound Campaigns Had a 5.8% Response Rate in December

Last month, 8.7% of customers who received an outbound message responded, with ~125,000 customers receiving a message.

In December, it dropped to 5.8%, but the audience size increased to 215,000 customers receiving a message.

We’ve seen that pattern play out over the past few months: typically, as you message a larger audience, your percentage response rate decreases but your absolute number of responses increases.

To put it simply, 10,979 customers responded to outbound texts in November, but 12,863 responded in December despite a lower response rate.

We also saw 1,100 indirect responses in December, which means the customer received a text and then converted via the website (phone, form, chat, etc.) without directly responding to the text.

In total, 6,854 net new jobs were booked.

That means that 3% of customers who received a text ended up booking a net new job directly, or indirectly, and spent an average of $2,842.54.

For every 1,000 impressions (texts) from Chiirp outbound campaigns, $85,276 in revenue was earned. That’s a pretty incredible revenue per thousand impressions return.

Chiirp Outbound Campaigns Generated $229,634 in Revenue Opportunity per Location in December

In November, Chiirp campaigns generated nearly $210,000 in revenue opportunity (net new estimates, sold jobs, and closed jobs) per location in this sample.

In December, that total revenue opportunity increased by 9% to over $16 million in total revenue opportunity generated.

74% of that total revenue opportunity turned into sold / closed revenue.

For most other channels, the goal is for a business to close 50% of revenue opportunity, but most end up around 40%.

So not only did Chiirp's outbound campaigns generate significant additional revenue opportunities, but that revenue opportunity converted into sold and closed revenue at much higher rates than other marketing channels.

Chiirp Outbound Campaigns Generated $155,714 in Closed Revenue per Location in December, a 7% Increase Month-Over-Month

Last month, closed revenue by location jumped 25% to over $145,000 in closed revenue on average for each business.

That growth continued in December with a 7% increase in closed revenue to nearly $156,000 per location, generating an estimated 156x return on investment.

If you are noticing downward trending demand in your other marketing channels, I strongly encourage you to look into an outbound strategy.

Your existing customer list, lead follow-up, and sales follow-up are golden opportunities to increase revenue without much additional investment.

Based on the data I’ve reported on Chiirp over the past several months, it’s very clear that it is much less expensive to accumulate revenue generation via your existing customer base than what we’ve seen with other marketing channels.

That doesn’t mean you ignore other marketing, as they’re important to get customers into the funnel that Chiirp ultimately supports, but outbound campaigns can help you make the most of that initial investment.

Until next time . . .

-Jon