IBM > Case Studies > Boosting Customer Loyalty and Revenue with IBM Marketing Cloud: A Case Study on 1-800-GOT-JUNK?

Boosting Customer Loyalty and Revenue with IBM Marketing Cloud: A Case Study on 1-800-GOT-JUNK?

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Technology Category
  • Analytics & Modeling - Real Time Analytics
Applicable Industries
  • Cities & Municipalities
  • Telecommunications
Applicable Functions
  • Product Research & Development
  • Sales & Marketing
Use Cases
  • Real-Time Location System (RTLS)
  • Track & Trace of Assets
Services
  • Cloud Planning, Design & Implementation Services
The Challenge
1-800-GOT-JUNK?, a full-service junk removal company, was facing a challenge in personalizing its communications to increase customer loyalty and revenue. The company's email program was primarily composed of batch and blast messages, lacking a strategic approach, segmentation, or customer experience consideration. The company aimed to transition to more automated, cross-channel programs that would convert first-time buyers into loyal customers and significantly drive revenue. The company also wanted to implement a customer loyalty program and a call center program to boost customer engagement.
About The Customer
1-800-GOT-JUNK? is a full-service junk removal company known for its professional junk hauling and excellent customer service. The company removes items that city garbage collectors typically do not accept, such as old furniture, renovation debris, and backyard mess. 1-800-GOT-JUNK? provides junk removal services for residences, businesses, commercial sites, and government offices. The company was looking to transition from a batch and blast email program to more automated, cross-channel programs to convert first-time buyers into loyal customers and drive significant revenue.
The Solution
To address these challenges, 1-800-GOT-JUNK? implemented several automated campaigns using IBM Marketing Cloud. The company introduced a customer loyalty program where customers with a certain Net Promoter Score were placed in a four-email automated program running for 90 days. The program aimed to increase customer loyalty and retention while generating new leads. The emails contained organizational and recycling tips linking to the company blog, soft promotions, and dynamic content based on the recipient's location. A social share option was also included, rewarding customers who shared the email on social media with a gift card. Additionally, the company tested a call center program where potential customers who did not convert were placed into an automated program based on their needs. These prospects received an automated email with a relevant customer testimonial within five minutes of hanging up.
Operational Impact
  • The implementation of IBM Marketing Cloud significantly improved the effectiveness of 1-800-GOT-JUNK?'s email marketing. The company was able to personalize its communications, leading to increased customer loyalty and revenue. The customer loyalty program and call center program boosted customer engagement, with the loyalty program contributing significantly to the total revenue driven by email. The call center program also showed promising results with a notable conversion rate. The company was able to achieve new levels of customer engagement, with each email message generating substantial revenue. The success of these programs indicates the potential for further revenue growth through more targeted and relevant emails.
Quantitative Benefit
  • The Customer Loyalty Program achieved a 20 percent open rate.
  • The Customer Loyalty Program contributed nearly 4 percent to the total revenue driven by email.
  • The third email in the Customer Loyalty Program series converted 65 percent more over the second email, and 88 percent more than the first email.

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