Laser focused analytics, shaved 23% off marketing spend
Our client manages a luxury spa in London, offering their own products and services. Many loyal customers travelled from afar for a days’ spa experience. These same customers had to fulfil other beauty needs in their home town with competitors. Our clients’ plan was to open smaller salons to cater for local needs. They needed to know where.
They wanted to understand which locations across the UK had the highest density of their existing customers and which of them was the most profitable. Additionally, they wanted to gain more insight into what services and products were frequently being bought. This would help them determine new services and products that would be attractive for the customer.
They had the information, but it was hidden from them. Their challenge was data in disparate systems and they didn’t have the in-house analytics capability to provide insights.
Our task was to consolidate their data into one single view and design a solution that would give them more in-depth knowledge about their customer demographics, lifestyles, preferences and behaviours.
The highly profitable solution was delivered using an agile methodology:
- Analysis of current data issues and requirements
- Vendor selection – selected vendor with visualisation capability
- Data discovery – understood what data was required from each system, standardised and consolidated the data. CRM, EPOS (electronic point of sale and 3rd party demographic data – mosaic), analyse and mine the data to spot trends to support their strategy.
- Data architecture – transformed the raw data into information so that it could be consumed by the BI & Analytics tools.
- Implementation of visualisation tool – provided Customer Segmentation & Lifetime Analysis, Recency, Frequency & Monetary model built to understand densities of customers on geo-map (to understand hot-spots where their more valuable customers were by location and loyalty). Analysis of customer profiles and behaviours to personalise offers (understand which services and products were popular, which allowed for more targeted email campaigns and focus on up-sell of similar products and services).
- Advanced customer segmentation enabled understanding of consumers in extraordinary detail – clear picture of who consumers are, where they are, and what they want – segmentation and preferences by location
- Optimise (Increased) customer acquisition – Using customer segments and applying third party data (MOSAIC) New customer group based on location – able to expand nationally by targeting hotspots across the UK through the use heat maps and open stores where more value, loyalty and frequency of the customer using the services was greatest
- Found optimum locations for new stores by understanding catchment profiles
- Marketing spend reduced by 23% – Understand and target consumers consistently across all channels. Laser focused marketing campaigns ensured effective allocation of marketing resource.
- Communicate effectively – reach the right target audience with the right message at the right time
- Increase in up selling and cross selling – understand and communicate with consumers in a way that matches their world.
- Increased customer retention – personalised customer communications to enhance their experience and drive retention. The expansion of stores and personalised offerings retained customers and created a set of brand advocates that spread the word in their networks
BI & ANALYTICS SPECIALISTS
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