Home improvement projects outside of key seasonal drivers, are irregular and unpredictable. Part of Homebase’s marketing strategy had been to promote everything and discount on a frequent basis. Where targeted communications were used, it was taking eight weeks from data point collection to comms delivery.
Homebase found patterns in shopping behaviours in both transactional and non-transactional data, identifying customer needs close to ‘Share of Project’ spending opportunities. They identified 10 project trigger identifiers and then analysed the length and shape of the sales curves to quantify the purchasing opportunity. For each, they created a personalised communication plan. Responding quickly enough to be relevant was critical. Homebase was able to get direct mail delivered within six days and email in two. Dynamic templates made the communication truly personalised, delivering the right message at the right time to increase customer value.
Through the ten integrated DM, email and store programmes, Homebase created engagements and activities that recognised a customer’s lifecycle, life stage, behaviour and value. The programme used highly responsive direct mail, magazines, email, ‘at till’ communications and inspiring sharable content to increase customer value. Homebase developed a hierarchy to determine customer inclusion to suit their interest or project.
The strategy has been transformational. The evolved CRM programme has delivered incremental sales four times greater than three years ago – ROI up 350% to 4.3:1. It also smashed its profit target by +48% creating a demonstrably more engaged and valuable customer in terms of both total spend and activity - DM response increased from an average of 9% to a maximum of 46%, up 500%, ATV increased by 13.5% and repeat visits up 6%.
Source: Homebase - DMA Award Winner Silver 2013
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