Analyzing Outbound Campaigns - November 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 October’s outbound campaign performance summary:

• Response Rate: 11.5%

• Total Revenue Opportunity: +1% month-over-month ($124,617 per location)

• Average Ticket: -22% month-over-month

• Closed Revenue: +20% month-over-month ($72,754 per location)

• Closed Revenue Generated (70-location sample): $5.09 million

• ROI: 72x

Chiirp Outbound Campaigns Had an 8.7% Response Rate in November

November was a busy month for Chiirp outbound campaigns, with outreach sent to over 124,000 customers, an increase of 37% month-over-month.

As I’ve written before, as audience size increases, response rates tend to drop (the law of diminishing returns) and we saw that in November with the response rate dropping by 19%.

However, nearly 11,000 people responded to outbound campaigns from this audience, at a rate of 8.7%.

Over 6,200 people ended up booking net new jobs, which is 5% of total outbounds.

So, for every 100 messages sent, 5 people booked net-new jobs at an average ticket of $2,800 and 70% of that revenue opportunity turned into closed revenue.

In summary, every 100 messages sent yielded $9,800 in closed revenue.

Put another way, every 1,000 impressions with outbound campaigns yielded $90,800 in closed revenue in November for this sample of businesses.

There were over 400 unique campaigns sent out across these 70 businesses (it wasn’t just the same campaign/message sent to 124,000 people), but the top-performing campaigns were directed at open estimate follow-up, which generated well over $1,000,000 in closed revenue.

Chiirp Outbound Campaigns Generated $209,808 in Revenue Opportunity per Location in November

Total revenue opportunity (the sum of unsold estimates taking an average of estimates received by customers, sold revenue, and closed revenue) increased by 7% month-over-month.

The real wow factor here is that Chiirp outbound campaigns generated over $209,000 in revenue opportunity by location. That is a significant potential return that outpaces every other digital marketing channel that SearchLight tracks with its data platform.

It’s still important to remember that audience, messaging, and timing all impact how well these campaigns perform, but intelligently targeting your existing customer base has been proven month in and month out to generate significant net new opportunities.

To put this in perspective, if we use a cost basis of $1,000 per month, Chiirp generated a 209x ROI potential.

Chiirp Outbound Campaigns Generated $145,744 in Closed Revenue per Location in November, a 25% Increase Month-Over-Month

November was one of the strongest months for outbound campaigns with closed revenue increasing by 25% month-over-month.

During the shoulder season, with other ad channels showing softening demand, outbound campaigns increased revenue per location to $145,744, equating to a 145x return on investment.

Open estimate follow-up dominated in terms of closed revenue, but there were quite a few six-figure service and special campaigns as well.

It’s also worth noting that 70% of the total revenue opportunity generated by outbound campaigns turned into close revenue.

For most other marketing channels (organic, LSAs, PPC), we typically see 50% as the average - so not only did Chiirp generate more revenue opportunities, but the quality and likelihood of those opportunities closing was 20% higher.

Until next time . . .

-Jon

PS - I hope all of you have a happy and safe holiday!