Sewing the seeds for long-term loyalty growth, with Dobbies Club data
Customer loyalty is something that all businesses strive for and through the use of data it can be achieved, which is exactly what Dobbies Garden Centres and Go Inspire have done. The data team at Dobbies Garden Centres have created hyper-personalised offers and experiences for each and every member which ultimately led to a 199% year-on-year increase in incremental revenue and a 215% return on investment increase in just two years.
“Loved how a relatively simple segmentation approach delivered such big improvements in performance.” – Judges’ comment
The data solution utilised by Dobbies Garden Centres is built upon the foundations of unique segmentation, usage cluster, key category analysis and discount optimisation strategies. The results included:
SCR £6.92:1 versus a benchmark of £5:1
EBIT 32% versus a benchmark 20%
Retention for Club Plus was 63% higher than Club
Response rate 45% versus a benchmark 40%
ROI benchmark 215% versus a benchmark 80%
Average 148% additional incremental monthly revenue versus cohort
Annualised incremental revenue and halo effect was up 199% year-on-year
17% increase in average frequency of visits
10% increase in Average Customer Value (ACV)
The percentage of customers scoring 9/10 on NPS increased from 45% to 60%
The transformation seen by Dobbies Garden Centres has been outstanding and was made possible by addressing the seasonality and consistency of spending – which was more advanced than previous recency, frequency and monetary value forecasts – and then creating clustered segmentation of customers based on purchase category mixes. This was then further refined to determine categories, subcategories and products that directly influence and predict customer frequency, worth and engagement to optimise discount targeting.
As more tests were conducted, personalisation of the trade driver mailouts became more refined. Before April 2022, there were only five permutations of trade driver mailings; now there are 53,584 permutations. Following analysis, prospective supplier advertisers recevied demonstrations of the incremental uplift in revenue and response attributable to advertising which were developed into case studies, increasing the level of awareness and desire by the suppliers to be part of this success story.
Highly commended:
ITV Flex - doubling conversion, reducing costs and improving effectiveness
NHS Tayside and Catalyst BI Athena NHS Command Centre
Finalists:
Burberry Optimising return on ad spend
Lebara Data-driven campaign decisioning: right customers, right message, right time
Legal & General Delivering personalised cross-channel experiences
Universal and EssenceMediacom Analytics Box office prediction model
Utility Warehouse
VMO2 VMO2 priority
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