HVAC Demand Trends - Outbound Campaign Edition
Chiirp - How Much Revenue Does it Generate?
👋 Hey, Jon here. I am SO excited to unveil a new data set for you all that measures outbound campaign performance from Chiirp to revenue opportunity generated.
I’ve written quite a bit about rising customer acquisition costs and the need for strong lead handling, marketing operations and sales follow-up. Now, I can finally dig into the data to show you just how much of an impact follow-up campaigns have on revenue generation.
We integrated with Chiirp specifically because we continued to see “fall out of your chair” performance from their platform and as I explain to Gary Vaynerchuk in this video, mutual clients pushed us both in this direction.
There will be LOTS more data to come (including month-over-month trends and top performing campaign data) but let’s dive into the first look at this analysis, which covers April 1st - April 15th, and over 10,000 customers who were Chiirp’d at (received messages) across 19 campaigns. Note: this is not manual analysis. This is automated matchback using SearchLight’s data platform in partnership with Chiirp.
Chiirp Outbound Campaigns Generated $859,667.23 in Revenue Potential
Open estimates, sold revenue and closed revenue added together = revenue potential.
These are the total dollars of customers who booked directly and indirectly from Chiirp outbound campaigns in various stages of the sales process.
5% of customers who received a Chiirp message in this sample booked an appointment that led to revenue opportunity in either open, sold or closed revenue.
The ROI (using Chiirp fees as the cost-basis) is a whopping 286x for revenue potential.
You could argue that the results aren’t too suprising because after all, these are customers who have some familiarity with your business and an interest in your services.
But if you already spent the money to get that customer interested, the consistent, relevant and targeted follow-up with outbound campaigns is the insurance policy of that original investment.
Chiirp Outbound Campaigns Generated $387,626.38 in Closed Revenue
In just over two weeks, Chiirp’s outbound campaigns generated $387,626.38 in closed revenue.
That’s a 129x return on investment for closed revenue.
There were costs to acquire those customers in the first place, so it’s fair to want to calculate the total marketed cost of a customer versus the resulting revenue (more of that will be discussed in future newsletters) but it’s clear that outbound campaigns are a very strong mechanism of revenue conversion.
14.5% of Customers Responded to a Chiirp Campaign
Response rates and response-to-revenue rates can be very useful when determining a campaign strategy and/or try to predict the revenue lift outcomes of these campaigns.
This data-set will change over time, but right now we know that:
14.5% of customers who received an outbound message responded to it
28% of those customers who responded booked an appointment that led to revenue opportunity
$2,574.06 was the average ticket for those new revenue opportunities
We can’t call these benchmarks just yet, but as the product and dashboard rise in adoption, we will have really clear data about how much revenue to expect when you send [x] amount of customers a message.
We also have that data at the campaign-level currently, but will share more detailed analysis in future newsletters 😊 This will become useful went existing Chiirp customers want to maximize performance as they test different target audiences and messaging.
Closing Thoughts
In the 3 or so years that I’ve consulted on our detailed customer journey / revenue flow data, I’ve seen (hundreds of times) a tendency to want to focus on new lead generation versus strategies to maximize revenue of customers who are already in some step of the sales funnel.
The “right” focus is context dependent based on your own data and goals, but I almost always see some sort of issue in either lead handling or follow-up, that once fixed, can completely transform performance.
Data by itself isn’t always that useful, which is probably why you are reading this right now, and my hope is that this early data (with context) demonstrates how important outbound strategies are to protect your initial investment of acquiring customers and to have a less expensive option to generate new revenue.
Historically, I’ve viewed outbound as the third phase of revenue flow optimization (all three phases laid out below) and I’m excited that we finally have data to paint the full picture and provide insight to help you navigate the growth and efficiency of your business.
The 3 Phases of Revenue Flow Optimization:
(1) Getting consideration in a moment of need (marketing strategy)
(2) Reducing friction for the customer (lead handling, website optimization, social profile optimization, etc.)
(3) Nurturing the customer funnel (outbound strategies, content strategies etc.)
Much more to come.
Until next time . . .
-Jon