Dobbies Garden Centres and Go Inspire created a process that has leveraged the available data to drive incredible new growth and customer loyalty opportunities resulting in a 215% increase in return on investment and a 199% year-on-year increase in incremental revenue. This has in turn allowed the organisation to expand, invest and provide unique service opportunities for customers.
“An amazing leap forward.” – Judges’ comment
The data team at Dobbies Garden Centres identified the seasonality and consistency of spending by customers and developed a new in-depth recency, frequency and monetary value forecast. The findings of this forecast were then broken down into clustered segments based on historical purchase category mixes to determine categories, subcategories and products that directly influence and predict customer frequency, worth and engagement for optimised discount targeting.
Built on the foundations of unique segmentation, usage cluster, key category analysis and discount optimisation strategies, results included:
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EBIT 32% vs Benchmark 20%
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17% in average frequency of visits
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10% in Average Customer Value (ACV)
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15% in customers scoring 9/10 on NPS
The challenge included being able to drive measurable, tangible growth in terms of return on investment and incremental revenue, demonstrate the contribution of free benefits to frequency and additional revenue of customers registered and to determine the most relevant selection of offers, discounts and content for each individual Dobbies Club Plus member. Testing was done on different spend targets and thresholds versus different levels of discount offered to identify the most attractive discounts and maximisation of profitability. To demonstrate the value of free benefits, the data team correlated data between the redemption of free hot beverages and birthday treats, shopping frequency, additional revenue and average customer value.
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.