Targeted Group Eats Up Restaurant Gift-Card Promo

Most people would associate Scotts Lawn Service with a thick, green lawn but probably not with a thick, juicy steak. However, last summer, selected Scotts customers got just that – or any other meal they wanted – when the company paired up with Restaurant.com for a gift-card promotion.

John Lewis, director of segment marketing for Scotts, says the company worked with Anthem Marketing Solutions to identify customers who were likely to cancel their lawn service during the summer. "Our attrition model takes into account historic cancel data to assign a likelihood of cancellation along with a predicted timing of cancel," he adds.

Customers in that segment received a direct mailer that offered them a $25 Restaurant.com reward if they registered with Scotts online or a $50 card if they registered and signed up for automatic payments. Those who did got a gift card in the mail or an e-mail with a code that could be redeemed at more than 12,000 restaurants nationwide.

"Most of our customers who took advantage of the opportunity simply redeemed the card and enjoyed dinner on us," Lewis says, "but the few who we did hear from told us that they were surprised to receive this type of offer from their lawn-service provider and were delighted to receive this extra benefit for no additional cost."

Scotts had hoped the promotion would increase retention 5% over their control group, but the program resulted in a whopping 26% increase versus the control. "This promotion far exceeded our expectations from a results standpoint," Lewis says. "We plan to initiate similar programs in the future."