Traditional segmentations – like genre – fail to understand the whole customer opportunity
Business Issue:
HMV’s on-line business and loyalty scheme had successfully built up a sizable database of registered customers looking for a more involved relationship with the brand. With such a vast portfolio of products spanning five separate entertainment categories, the insights remained buried deep in the transactional data.
Brief:
Explore the depth of opportunity within the data using the customer lens with the specific purpose of engaging the wider business to drive sales growth through all channels
Our thinking:
- Understand how customers are shopping with HMV and what their specific needs are
- Understand a customer’s capacity to shop with HMV to channel resource appropriately
- Realign the clustering of products purchased based upon customer lifetime baskets and not industry driven genres
- Use the product groupings to predict interest in new titles
Our approach:
- The first stage was to format a robust structure for the database, linking data from disparate sources all at the single customer level.
- To cut through such a large flat base we used a combination of complex statistical manipulation and good old human intervention.
- We created two distinct axes relevant only to HMV and the emotional relationship the customer has with the brand and the product.
- The output of this deep analysis powered a personal and relevant eCRM programme
Our output:
- Fully segmented database to drive all direct communications with customers
- An understanding of potential value for growth and development
- Strategic support to develop these segmentations into contact strategies
- On-going analysis exploring the customer behaviour, to provide value-driving customer insight for tactical campaigns and solutions
- Designed, generated and delivered the emails (on average 10 per week)
Business Impact:
Changes in basic approach to targeting of communications showed up to 50% increase in engagement and 10 times increase in purchase rate
