Mr Rental has 53 stores throughout Australia and New Zealand. It is a service based industry,
renting home appliances such as fridges, washers, televisions and computers. The franchisor provides franchisees with a local area marketing (LAM) toolkit as well as systems for testing and measuring the results. Franchisees in Western Australia have been identified as particularly good at utilising the LAM tools provided by the franchisor, building on them and then executing them in their local community.
By working together, Mr Rental franchisees in WA have implemented marketing strategies to increase the revenue generated per customer as well as increase local awareness of the franchise.
Increase the Revenue Generated Per Customer 1) SMS Marketing
WA launched the initiative of SMSing existing customers with limited time deals. For example, if it had been raining for two days straight, they would SMS a selection of customers with a deal on clothes dryers delivered that day. To SMS 100 customers at 25cents each is a total cost of $25. You don't need to generate many sales to cover your $25 investment.
2) Direct Mail Pieces
Another initiative was to send customers newsletters and direct mail pieces quarterly.
Increase Local Awareness of the Business
1) Van Parades
The WA team get together with their seven vans periodically and drive around the local area. The vans look good and draw attention to the business.
2) BBQs
The team holds regular BBQs to give away sausages at events such as fetes or out the front of the local shopping centre.
3) Mascot
The WA team have got a Mr Rental mascot who will now accompany them to events.
4) Business Relationships
It is often time consuming to maintain relationships with other local businesses but it is beneficial for Mr Rental to have relationships with the local real estate agencies, appliance retailers and appliance repair stores. In WA, the team pays one person to regularly keep in contact with these businesses and keep the brochures and information packs topped up.
The Results
From April 2005 to April 2007, WA franchisees have achieved the following results:
- Their average monthly sales enquiries have increased by 220 per cent
- Conversions from enquiries to sales have increased by 18 per cent
- Average new appliances rented have increased by 150 per cent per month
- The number of appliances rented per customer has increased by 16 per cent
- The WA stores' annual revenue has increased by 1300 per cent
25-Jul-2007