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Home Warranty Leader Slashes Customer Acquisition Costs by 65% with Smarter Targeting and Rapid Testing

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The Challenge

A leading national home warranty provider had tried direct mail before — but it flopped. Results were underwhelming, and the channel was dropped. Still, competitive research suggested direct mail had untapped potential. With other marketing channels maxed out and growth goals looming, the team decided to give direct mail another shot.

They needed a partner who could rethink their approach and deliver better results. After a competitive RFP process, they chose RPM to build a smarter, more effective direct mail program—one that could outperform their current customer acquisition channels.

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What We Did

Phase 1: Crack the Code with Smart Testing

We kicked things off with our proprietary Rapid Performance Method—a structured, high-velocity testing approach. Instead of guessing what might work, we tested a wide variety of creative concepts, copy angles, and offers through multivariate campaigns.

Phase 2: Predict the Perfect Prospect

Next, we leveled up by building a predictive targeting model based on the top-performing test results. We wanted to see just how far we could push performance by mailing to the right people—not just more people.

To do this, we ran a head-to-head test of two predictive models:

  • One built using an advanced A.I.-powered platform that rapidly created and optimized dozens of potential models in real time.
  • The other built the traditional way, by a well-known data provider using a manual, human-statistician approach.

Both models aimed to find lookalike prospects who resembled past buyers—but the results weren’t even close.

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The Results

Rapid performance Method testing helped us quickly zero in on the best combinations of creative concepts, copy angles, and offers. We learned what actually moved the needle to generate the levels of response and sale conversion that the client needed.

And the A.I.-powered model blew the traditional targeting approach out of the water. The combination of the right mailing contents and the pinpoint targeting produced incredible results:

  • 75% higher response rate overall
  • 43% lower cost per customer
  • 107% boost in response from the top-performing creative package
  • 25% improvement in sales conversion
  • 65% reduction in cost per new customer

What started as a test turned into a breakthrough. Direct mail went from underperformer to the client’s best-performing acquisition channel—delivering scale, efficiency, and real growth.

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The Takeaway

With the right strategy and tools, direct mail can absolutely crush it. RPM’s unique blend of high-speed testing and predictive targeting didn’t just improve performance—it transformed it.

Let's Talk

If you’re ready to unlock scalable, cost-effective growth, RPM can help. We specialize in turning direct mail into a powerhouse for home services companies.

Let’s start a conversation. Your next breakthrough might be just one test away.

Get in Touch

Let us know a little about yourself, your company, and what you're trying to achieve with direct mail.

Simply fill out the form and you'll hear from us soon.

Call us at 206.462.4208
info@rpmdm.com