Rocky Mountain Precast (RMP) is a startup in the construction industry with big ambitions. They specialize in the production and installation of precast foundation walls, a crucial element in building construction. Although their product is innovative and their vision strong, they faced a problem many new businesses encounter—lack of visibility and difficulty reaching their target market. That’s where Next Source came in to help RMP develop and implement a strategic sales and marketing plan to get their business off the ground.
In this case study, we will explore how the partnership between RMP and Next Source led to tremendous growth through a well-executed marketing strategy. From gaining more qualified leads to reducing costs, we’ll show how effective marketing can transform a business like RMP.
Challenges Faced by RMP
When RMP first approached Next Source in October 2022, they were relatively unknown in the competitive construction industry. Here are the major challenges they faced:
- Low Brand Awareness: RMP lacked visibility in the industry, making it hard for potential clients to find them.
- Difficulty Generating Leads: Their business relied heavily on word-of-mouth referrals, limiting their ability to grow beyond their existing client base.
- Limited Market Reach: They wanted to expand to new geographic regions but lacked a clear strategy for market penetration.
- Weak Referral Network: They needed stronger relationships with key players in the construction industry to build a reliable referral network.
- Low Conversion Rates: They struggled to turn initial inquiries into actual projects, which was stalling their growth.
- High Operational Costs: Their processes were labor-intensive, which was driving up costs and limiting their ability to scale.
With these challenges in mind, RMP partnered with Next Source to create a comprehensive marketing plan designed to drive growth.
Goals and Objectives
RMP set out with clear goals to address their challenges:
- Increase Monthly Inbound Leads: Bring in more potential customers interested in their product.
- Enhance Brand Awareness: Establish RMP as a credible and reliable company in the market.
- Increase Outbound Estimates: Get more project estimates in front of clients to drive sales.
- Reduce Operating Costs: Implement efficient marketing strategies that wouldn’t break the bank.
Step 1: Building the Foundation for Growth
To start, Next Source focused on building a strong foundation for RMP’s marketing efforts. Here’s how they approached the task:
Lead Generation
Next Source identified small-to-mid-sized general contractors in Colorado as RMP’s ideal target market. They compiled a list of 2,493 potential leads by using tools like Google Maps and builder network directories. This gave RMP a database of prospects they could reach out to.
Email Marketing
To reach out to potential clients, Next Source launched an email marketing campaign using MailChimp. They set up bi-weekly email updates to both cold and warm leads. Cold leads were those who had never heard of RMP before, while warm leads were prospects who had shown some interest. The goal was to nurture relationships and keep RMP top-of-mind for future projects.
Cold Calling
Next, they implemented a cold calling strategy. Virtual assistants (VAs) were trained to make calls to leads, following a well-crafted script. By using tools like Hubspot, every interaction was tracked, ensuring no lead fell through the cracks. The VAs were instrumental in reaching out to leads at scale and following up with those who expressed interest.
Systems Optimization
To streamline processes, Next Source integrated automation tools like Zapier to link email marketing, CRM, and cold calling systems. This helped reduce employee labor costs and improve productivity. Hubspot was customized to fit RMP’s sales funnel, allowing for better tracking of lead status and automating key follow-ups.
Step 2: The Implementation Process
The plan was rolled out in phases to ensure each step was well-executed. Here’s how each phase played out:
Phase 1: Lead Generation & Systems Setup
In this phase, RMP’s target audience was identified, and a database of 2,493 cold leads was created. Key systems like Hubspot, MailChimp, and Zapier were integrated to automate and streamline lead follow-up.
Phase 2: Email Marketing
With the leads imported into Hubspot, email campaigns were launched. Over the course of the year, 3,657 marketing emails were sent, with an open rate of 36.7% for cold leads and 72.3% for warm leads. The email campaigns helped nurture relationships and build engagement, increasing the chances of converting leads into clients.
Phase 3: Cold Calling
Virtual assistants made over 3,951 cold calls to the leads. The calls were essential in establishing personal connections with potential clients. A total of 790 calls were successfully connected, and 1,565 voicemails were left. This outreach effort was crucial in generating interest and pushing leads further down the sales funnel.
Phase 4: Lead Nurturing & Conversion
As leads responded positively to the cold calling and email campaigns, RMP’s sales team took over to engage with warm leads. By using Hubspot to set task reminders and track interactions, the team was able to follow up consistently and convert warm leads into sales. By the end of the program, 59 sales were made, totaling over $2.66 million in project value.
Step 3: Results and Key Metrics
The marketing program delivered significant results for RMP. Here are the key metrics that show the impact of the strategy:
Email Marketing Campaign
- Cold Emails Sent: 3,657
- Open Rate: 36.7% (1,342 opens)
- Click Rate: 1.8% (66 clicks)
- Warm Emails Sent: 301
- Open Rate: 72.3% (218 opens)
- Click Rate: 16.9% (51 clicks)
Cold Calling Campaign
- Total Calls Made: 3,951
- Connected Calls: 790 (20%)
- Voicemails Left: 1,565 (39.6%)
- No Answer/Wrong Numbers: 1,596 (40.4%)
Conversion Rates
- Cold to Warm Lead: 15.4% (1,950 cold leads → 301 warm leads)
- Warm Lead to Sale: 19.6% (301 warm leads → 59 sales)
- Cold Lead to Sale: 3% (1,950 cold leads → 59 sales)
- Total Sales Value: $2,666,454 (forecasted revenue for 2023-2025)
- Customer Acquisition Cost: $146.82
Step 4: Benefits of the Program
The marketing strategy put in place by Next Source led to several key benefits for RMP:
- Increased Monthly Inbound Leads: The company saw a noticeable increase in qualified leads, which resulted in more project opportunities.
- Enhanced Brand Awareness: RMP was able to establish a digital presence, helping them gain broader recognition in the market.
- Steady Pipeline of Estimates: A reliable stream of project estimates was sent out to potential clients, increasing the chances of conversion.
- Lower Operational Costs: By leveraging virtual assistants and automation tools, RMP was able to cut labor costs by 75%, making their marketing efforts more cost-effective.
Lessons Learned
The partnership between RMP and Next Source brought many valuable lessons:
- Strategic Sales & Marketing: A structured sales and marketing plan helped RMP penetrate the market efficiently.
- Efficient Use of Resources: By using virtual assistants and automating key processes, RMP was able to minimize costs while maximizing impact.
- Handling Volume: At times, the number of warm leads exceeded the team’s capacity. To manage this, additional resources were brought in, and automation was optimized to handle the increased workload.
Conclusion
The collaboration between Rocky Mountain Precast (RMP) and Next Source proved that even startups in competitive industries can achieve significant growth with the right marketing strategy. By focusing on targeted lead generation, email marketing, cold calling, and automation, RMP saw a dramatic increase in brand awareness and project opportunities. Over the course of a year, they transformed their sales funnel, generating over $2.66 million in project value and positioning themselves for long-term success.
This case study demonstrates the power of a well-planned, cost-effective marketing strategy. RMP’s success is proof that with the right approach, any business can accelerate growth and establish a solid presence in their industry.
