Ace Hardware, incorporated in 1928 as Ace Stores Inc., was founded to provide a centralized purchasing organization to supply the founders' and members' stores. Its retail network expanded to hundreds of dealers by 1949, when annual sales reached about $10 million.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative,[1] and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
As of 2005[update], the $13 billion retail hardware cooperative is made up of more than 4,600 independent stores in all 50 states of the United States and in 70 different countries. Ace Hardware was named after the Ace fighter pilots of World War I, who were able to overcome all odds.
An ACE Hardware store in Springboro, Ohio
Ace Hardware's long-time slogan The helpful hardware place has been replaced by The helpful place. Another change came when[when?] its longtime jingle — "Ace is the place with the helpful hardware man" — was modified with the more gender-neutral "folks" replacing "man." Much of their advertising since 1987 features John Madden, a former NFL coach and announcer.
Prior to Madden, Suzanne Somers was a spokesperson for Ace Hardware but was dropped because of a previously issued topless poster for Maheraja water skis.[citation needed] Home improvement expert Lou Manfredini currently serves as ACE's "Helpful Hardware Man" and media spokesperson.
The Springboro, Ohio location in the picture to the right has recently[when?] closed its doors.
Ray Griffith currently serves as the President and CEO of Ace Hardware Corporation and has served in that position since taking over for Dave Hodnik in 2005. Hodnik had served as ACE's leader since 1996. David Ziegler serves as Chairman of the Board. ACE Hardware Corporation now does over $3 billion in hardware sales annually and had $12.5 billion in retail sales during 2007.
Insights into customer behavior are valuable to any retailer, but they really hit the nail on the head for Ace Hardware. The 4,400-store enterprise is a cooperative, so each independently owned and operated store can choose whether or not to participate in the company’s marketing efforts. For campaigns to be successful, they must win over not just consumers but store owner/operators.
Ace does have an ace in the hole when it comes to tracking customer behavior: its Ace Rewards loyalty program has 20 million members, and the company launched an affinity credit card this past fall. Ace has been able to analyze the detailed customer and transaction data from these sources to improve the timing, design and targeting of its marketing campaigns, creating stronger ROI from promotions and increasing the company’s understanding of which items are sales “triggers” in key product categories.
Making Garden Sales Grow
Lawn and garden sales are a key product category for Ace. “Spring is our Christmas,” says Mary Smith, customer insight and analytics manager at Ace Hardware. Smith presented information about Ace’s customer analytics and marketing strategies at the Teradata Partners User Conference in October 2010.
Smith wanted to use analytics tools to confirm long-held assumptions about this category. “We believed that fertilizer is the first lawn/garden purchase of the year for most customers, but we had never validated that down to the customer level,” she says.
She also wanted to discover whether Ace had been missing out on potential sales by concentrating communications on fertilizer. “We had been doing one mailer about fertilizer, and if we got you with that, great. However, if we didn’t get you into the store with that, we didn’t ‘talk’ to you again during the lawn/garden season”—the mailer promoting fertilizer was the only one that Ace sent.
The analytics team used the pattern detection capabilities of the Teradata Relationship Manager campaign management solution, which allowed them to analyze customer-level purchase activity relative to a specific event—in this case, the customer’s purchase of fertilizer. Using this as its “time zero” event allowed Ace to more easily identify trends corresponding to the purchase.
“We looked at four weeks prior to the fertilizer purchase and the following 10 to 12 weeks, to see whether that customer came back into Ace and bought items in other categories,” Smith explains. The analysis validated the importance of fertilizer purchases, and the “time zero” capabilities made it easier for Smith to see where Ace was missing out. With many customers, “we were getting the fertilizer purchase but not enough purchases afterwards. Fortunately we knew who these purchasers were and we could target them very easily.”
Ace instituted new promotional tactics to get more customers into stores during the lawn/garden season, including targeted direct mail and e-mail campaigns. The pattern detection capabilities of the Teradata solution “helped us with what to promote, which brands, the shape of the campaign and who to promote to,” notes Smith.
Ace also used discounts such as offering $10 off for a $50 purchase. “Many cooperative members were skeptical, but we saw great results,” says Smith. “This promotion got an 8.7% response rate, with an incremental promotional ROI of 35% and an additional $5 million in sales.”
Customer-level analysis and targeting are important competitive differentiators for Ace, which has increasingly found itself competing with large chains such as Home Depot and Lowe’s. “We can’t outspend the big box stores in mass media, so we need to use customer relationship management to be more relevant and timely with our communications,” says Smith.
Advertisers such as Procter & Gamble, Gatorade, Ford Motor Co. and Ace Hardware are running on-deck idle-screen advertising with carrier MetroPCS.
MetroPCS has launched MyExtras, a free informational service for MetroPCS customer that includes idle-screen advertising and discount offers from retailers, becoming the first carrier in the U.S. to launch idle-screen customer relationship management services for its subscribers. MetroPCS tapped Mobile Posse’s newly launched MobiCRM idle-screen platform for wireless carriers.
"Our objective behind launching MyExtras was to provide an improved way to communicate directly with our customers about the latest offers and services so that get the most out of their MetroPCS service,” said Tom Keys, chief operating officer of MetroPCS, Richardson, TX.
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“With MyExtras, MetroPCS delivers updates on coverage, awareness of services, and other important carrier announcements and provide helpful information to MetroPCS subscribers on a regular basis," he said.
MetroPCS Communications Inc. is a provider of CDMA wireless telecommunications services with about 6.3 million customers, making it the fifth-largest carrier in the United States.
P&G, Gatorade, Ford, Ace Hardware run mobile ads o
Brands are running on-deck promotions such as "Win a Samsung Camcorder or a Dick's Sporting Goods gift card"
Mobile Posse Inc. is a provider of mobile marketing and CRM services focusing on the mobile idle screen.
Mobile Posse claims to be the first company to commercially launch graphically rich and interactive idle-screen programming in North America.
Advertising and customer relationship management
MobiCRM enables carriers to reach their customers with graphical and interactive messages on the most-viewed real estate on the mobile phone—the idle screen.
P&G, Gatorade, Ford, Ace Hardware run mobile ads o
MyExtras helps MetroPCS customers get information
The platform lets carriers leverage largely unused idle-screen inventory for ongoing customer communications.
Procter & Gamble, Gatorade, Ford and Ace Hardware and several direct marketers such as online education institutes are among the advertisers currently running active idle-screen campaigns on-deck with MetroPCS.
MobiCRM activates the mobile idle screen, letting service providers deliver idle-screen messages throughout the customer lifecycle.
Mobile Posse’s CRM platform is designed to support all aspects of the customer experience, from initial customer education to ongoing customer service and support.
For example, the platform can be used to educate users about new products and features, to seek customer feedback about their wireless service or to remind users of an upcoming event such as a payment due date.
In addition, the platform supports a range of integrated call-to-actions—including click-to-call, click-to-WAP/Web and click-to-SMS—which serve to maximize and streamline customer response.
By design, messages are only delivered to the customer’s mobile phone when not in use, with the goal of making the ads non-intrusive to the user experience.
MetroPCS MyExtras also delivers carrier announcements—house ads—and information to MetroPCS subscribers.
New customers are welcomed with an introduction to their wireless service. MyExtras also educates users about their current rate plan, offers tutorials about advanced wireless services and provides answers to frequently-asked questions.
MetroPCS subscribers can choose to receive optional content messages such as weather forecasts, local gas prices and sports scores, along with occasional offers from local and national retailers.
MyExtras is pre-loaded on new MetroPCS phones and is available to current MetroPCS customers as a downloadable application from the BREW catalog on their mobile phone.
There is no cost for end-users to download or use the MyExtras application.
The platform lets carriers manage the customer interaction that occurs through the active idle screen.
As a white-labeled service, MobiCRM is customized for each carrier with unique features and programming.
Comprehensive reporting and analytics provides the carrier with detailed, transaction-level information and actionable insights into customer data.
Carriers can further customize their experience by deploying optional content and advertising messages alongside subscriber-focused CRM messages.
Subscribers opt-in to receive free mobile content and advertiser offers, providing additional value for consumers and an incremental advertising-based revenue stream for carriers.
"Mobile Posse has created an active idle-screen delivery platform, MobiCRM, that is a turnkey solution which enables operators to seamlessly and cost-effectively extend their CRM initiatives directly on the handset in the most efficient manner,” said Jon Jackson, founder/CEO of Mobile Posse, McLean, VA.
“With proactive, engaging and timely idle-screen messaging, carriers can further differentiate their service offering and bring additional value to their wireless subscribers,” he said. “This is paramount as the U.S. wireless market approaches complete saturation.
“White-labeled by the carrier, MobiCRM can be deployed across device platforms to create a consistent customer experience, promote awareness and use of carrier products and services, and drive long-term customer loyalty."
Recently, BusinessWeek rolled out their list of top companies ranked by customer service. There were a few yawns and one or two surprises. L.L.Bean, USAA and Apple claimed the podium with 1st, 2nd and 3rd places on the list. L.L.Bean impressed me by improving their score more than 10% over 2009. In what is generally considered to be a tough year for customer service, this is worth noting.
Also worthy of mention is Publix Super Markets. They earned a solid 5th place in a business that is widely known for using price promotions to drive revenue. It’s easy to expect luxury brands to hang their hats on great customer service. It’s more surprising when a ho-hum, tiny-margin business like grocery stores commits to good service. Kudos to Publix.
I’m a little surprised by Barnes & Noble making the top 10. My personal experience is they are incredibly average in their customer service. And their incessant sales pitches from the cash registers diminish the customer experience even more.
It’s nice to see a little store beat out their big-box competitor. Most (all?) Ace Hardware stores are locally owned, neighborhood businesses. Many are reminiscent of the mainstreet hardware store of days gone by. And they often have long-time employees who know how to help customers find exactly what they’re looking for. My mom swears by them.
After Hesse retired in 1973, Ace was sold to its retailers, becoming a cooperative,[1] and the headquarters moved to suburban Oak Brook. Independent owners became dealer-owners and shareholders in the company. Because it is a co-op and not a franchise, each Ace Hardware store looks different. Ace has placed a focus on Ace stores exhibiting some similar characteristics, such as signaled and core product lines. The Vision 21 program, as this is called, is aimed to make all stores look recognizable as an Ace Hardware.
As of 2005[update], the $13 billion retail hardware cooperative is made up of more than 4,600 independent stores in all 50 states of the United States and in 70 different countries. Ace Hardware was named after the Ace fighter pilots of World War I, who were able to overcome all odds.
An ACE Hardware store in Springboro, Ohio
Ace Hardware's long-time slogan The helpful hardware place has been replaced by The helpful place. Another change came when[when?] its longtime jingle — "Ace is the place with the helpful hardware man" — was modified with the more gender-neutral "folks" replacing "man." Much of their advertising since 1987 features John Madden, a former NFL coach and announcer.
Prior to Madden, Suzanne Somers was a spokesperson for Ace Hardware but was dropped because of a previously issued topless poster for Maheraja water skis.[citation needed] Home improvement expert Lou Manfredini currently serves as ACE's "Helpful Hardware Man" and media spokesperson.
The Springboro, Ohio location in the picture to the right has recently[when?] closed its doors.
Ray Griffith currently serves as the President and CEO of Ace Hardware Corporation and has served in that position since taking over for Dave Hodnik in 2005. Hodnik had served as ACE's leader since 1996. David Ziegler serves as Chairman of the Board. ACE Hardware Corporation now does over $3 billion in hardware sales annually and had $12.5 billion in retail sales during 2007.
Insights into customer behavior are valuable to any retailer, but they really hit the nail on the head for Ace Hardware. The 4,400-store enterprise is a cooperative, so each independently owned and operated store can choose whether or not to participate in the company’s marketing efforts. For campaigns to be successful, they must win over not just consumers but store owner/operators.
Ace does have an ace in the hole when it comes to tracking customer behavior: its Ace Rewards loyalty program has 20 million members, and the company launched an affinity credit card this past fall. Ace has been able to analyze the detailed customer and transaction data from these sources to improve the timing, design and targeting of its marketing campaigns, creating stronger ROI from promotions and increasing the company’s understanding of which items are sales “triggers” in key product categories.
Making Garden Sales Grow
Lawn and garden sales are a key product category for Ace. “Spring is our Christmas,” says Mary Smith, customer insight and analytics manager at Ace Hardware. Smith presented information about Ace’s customer analytics and marketing strategies at the Teradata Partners User Conference in October 2010.
Smith wanted to use analytics tools to confirm long-held assumptions about this category. “We believed that fertilizer is the first lawn/garden purchase of the year for most customers, but we had never validated that down to the customer level,” she says.
She also wanted to discover whether Ace had been missing out on potential sales by concentrating communications on fertilizer. “We had been doing one mailer about fertilizer, and if we got you with that, great. However, if we didn’t get you into the store with that, we didn’t ‘talk’ to you again during the lawn/garden season”—the mailer promoting fertilizer was the only one that Ace sent.
The analytics team used the pattern detection capabilities of the Teradata Relationship Manager campaign management solution, which allowed them to analyze customer-level purchase activity relative to a specific event—in this case, the customer’s purchase of fertilizer. Using this as its “time zero” event allowed Ace to more easily identify trends corresponding to the purchase.
“We looked at four weeks prior to the fertilizer purchase and the following 10 to 12 weeks, to see whether that customer came back into Ace and bought items in other categories,” Smith explains. The analysis validated the importance of fertilizer purchases, and the “time zero” capabilities made it easier for Smith to see where Ace was missing out. With many customers, “we were getting the fertilizer purchase but not enough purchases afterwards. Fortunately we knew who these purchasers were and we could target them very easily.”
Ace instituted new promotional tactics to get more customers into stores during the lawn/garden season, including targeted direct mail and e-mail campaigns. The pattern detection capabilities of the Teradata solution “helped us with what to promote, which brands, the shape of the campaign and who to promote to,” notes Smith.
Ace also used discounts such as offering $10 off for a $50 purchase. “Many cooperative members were skeptical, but we saw great results,” says Smith. “This promotion got an 8.7% response rate, with an incremental promotional ROI of 35% and an additional $5 million in sales.”
Customer-level analysis and targeting are important competitive differentiators for Ace, which has increasingly found itself competing with large chains such as Home Depot and Lowe’s. “We can’t outspend the big box stores in mass media, so we need to use customer relationship management to be more relevant and timely with our communications,” says Smith.
Advertisers such as Procter & Gamble, Gatorade, Ford Motor Co. and Ace Hardware are running on-deck idle-screen advertising with carrier MetroPCS.
MetroPCS has launched MyExtras, a free informational service for MetroPCS customer that includes idle-screen advertising and discount offers from retailers, becoming the first carrier in the U.S. to launch idle-screen customer relationship management services for its subscribers. MetroPCS tapped Mobile Posse’s newly launched MobiCRM idle-screen platform for wireless carriers.
"Our objective behind launching MyExtras was to provide an improved way to communicate directly with our customers about the latest offers and services so that get the most out of their MetroPCS service,” said Tom Keys, chief operating officer of MetroPCS, Richardson, TX.
find a job for you
“With MyExtras, MetroPCS delivers updates on coverage, awareness of services, and other important carrier announcements and provide helpful information to MetroPCS subscribers on a regular basis," he said.
MetroPCS Communications Inc. is a provider of CDMA wireless telecommunications services with about 6.3 million customers, making it the fifth-largest carrier in the United States.
P&G, Gatorade, Ford, Ace Hardware run mobile ads o
Brands are running on-deck promotions such as "Win a Samsung Camcorder or a Dick's Sporting Goods gift card"
Mobile Posse Inc. is a provider of mobile marketing and CRM services focusing on the mobile idle screen.
Mobile Posse claims to be the first company to commercially launch graphically rich and interactive idle-screen programming in North America.
Advertising and customer relationship management
MobiCRM enables carriers to reach their customers with graphical and interactive messages on the most-viewed real estate on the mobile phone—the idle screen.
P&G, Gatorade, Ford, Ace Hardware run mobile ads o
MyExtras helps MetroPCS customers get information
The platform lets carriers leverage largely unused idle-screen inventory for ongoing customer communications.
Procter & Gamble, Gatorade, Ford and Ace Hardware and several direct marketers such as online education institutes are among the advertisers currently running active idle-screen campaigns on-deck with MetroPCS.
MobiCRM activates the mobile idle screen, letting service providers deliver idle-screen messages throughout the customer lifecycle.
Mobile Posse’s CRM platform is designed to support all aspects of the customer experience, from initial customer education to ongoing customer service and support.
For example, the platform can be used to educate users about new products and features, to seek customer feedback about their wireless service or to remind users of an upcoming event such as a payment due date.
In addition, the platform supports a range of integrated call-to-actions—including click-to-call, click-to-WAP/Web and click-to-SMS—which serve to maximize and streamline customer response.
By design, messages are only delivered to the customer’s mobile phone when not in use, with the goal of making the ads non-intrusive to the user experience.
MetroPCS MyExtras also delivers carrier announcements—house ads—and information to MetroPCS subscribers.
New customers are welcomed with an introduction to their wireless service. MyExtras also educates users about their current rate plan, offers tutorials about advanced wireless services and provides answers to frequently-asked questions.
MetroPCS subscribers can choose to receive optional content messages such as weather forecasts, local gas prices and sports scores, along with occasional offers from local and national retailers.
MyExtras is pre-loaded on new MetroPCS phones and is available to current MetroPCS customers as a downloadable application from the BREW catalog on their mobile phone.
There is no cost for end-users to download or use the MyExtras application.
The platform lets carriers manage the customer interaction that occurs through the active idle screen.
As a white-labeled service, MobiCRM is customized for each carrier with unique features and programming.
Comprehensive reporting and analytics provides the carrier with detailed, transaction-level information and actionable insights into customer data.
Carriers can further customize their experience by deploying optional content and advertising messages alongside subscriber-focused CRM messages.
Subscribers opt-in to receive free mobile content and advertiser offers, providing additional value for consumers and an incremental advertising-based revenue stream for carriers.
"Mobile Posse has created an active idle-screen delivery platform, MobiCRM, that is a turnkey solution which enables operators to seamlessly and cost-effectively extend their CRM initiatives directly on the handset in the most efficient manner,” said Jon Jackson, founder/CEO of Mobile Posse, McLean, VA.
“With proactive, engaging and timely idle-screen messaging, carriers can further differentiate their service offering and bring additional value to their wireless subscribers,” he said. “This is paramount as the U.S. wireless market approaches complete saturation.
“White-labeled by the carrier, MobiCRM can be deployed across device platforms to create a consistent customer experience, promote awareness and use of carrier products and services, and drive long-term customer loyalty."
Recently, BusinessWeek rolled out their list of top companies ranked by customer service. There were a few yawns and one or two surprises. L.L.Bean, USAA and Apple claimed the podium with 1st, 2nd and 3rd places on the list. L.L.Bean impressed me by improving their score more than 10% over 2009. In what is generally considered to be a tough year for customer service, this is worth noting.
Also worthy of mention is Publix Super Markets. They earned a solid 5th place in a business that is widely known for using price promotions to drive revenue. It’s easy to expect luxury brands to hang their hats on great customer service. It’s more surprising when a ho-hum, tiny-margin business like grocery stores commits to good service. Kudos to Publix.
I’m a little surprised by Barnes & Noble making the top 10. My personal experience is they are incredibly average in their customer service. And their incessant sales pitches from the cash registers diminish the customer experience even more.
It’s nice to see a little store beat out their big-box competitor. Most (all?) Ace Hardware stores are locally owned, neighborhood businesses. Many are reminiscent of the mainstreet hardware store of days gone by. And they often have long-time employees who know how to help customers find exactly what they’re looking for. My mom swears by them.