2014 Gold Best Multi-Channel CRM Programme

Client Homebase

How did the campaign make a difference? Outside of key seasonal drivers, DIY projects and purchases are erratic and unpredictable. This had led Homebase to employ a CRM strategy built around monthly high volume ‘event’ DM mailings with blanket discounts, in the hope of being right for at least a significant minority.

But by finding patterns of behaviour in transactional and non-transactional data, they were able to make the unpredictable predictable, initiate purchases and spot further opportunities to maximise Homebase’s ‘Share of Project’.

Customers now receive offers that are tailored to them, put in context and priced competitively for their area – with irrelevant, poorlytimed messages cut out.

The strategy has been transformational – generating £60.7m of incremental revenue in 2013 and a ROI up 350% to 4.3:1.

Strategy For over a decade, the communication strategy had, in the face of ever more margin eroding discounting, remained focused on optimising the 120% ROI and 9% response rate – ignoring the 91% of nonresponders and overlooking the fact that they enjoyed 50% share of wallet for their best customers.

By putting the customer at the heart of the its thinking, the brand found behavioural patterns that showed customer needs and intent. For example, people who bought birdseed were found to be eight times more likely to be considering a new kitchen. These insights were then used to initiate purchases.

By evolving data management and fulfillment processes (with no new systems or budget), Homebase has been able to deploy highly personalised CRM programmes – providing highly dynamic communications and unique ‘communication pathways’ for each customer. The brand can now deliver the right message at the right time, ultimately increasing customer value.

Creativity Through ten new integrated DM, email and store programmes, Homebase created engagements and activities that recognised a customer’s lifecycle, lifestage, behaviour and value.

First time shoppers, seasonal purchasers and frequent visitors became part of lifecycle programmes that welcomed and maintained regular contact around seasonal or interest areas.

Relevant offers were targeted to those at significant lifestages, such as moving home, becoming a parent or retiring.

Highly responsive DM, email and ‘at till’ communications were triggered by spend and non-spend behaviours in order to maximise the brand’s share of a specific project.

And magazines, emails and inspiring shareable content was created to increase customer value.

Homebase developed a hierarchy to determine customer inclusion in a programme and used dynamic content to deliver a message to suit their interest or project.

Results The raw financial results speak for themselves. Homebase have now been on this CRM journey for three years. In 2013/14 it delivered £60.7m of incremental sales – over four times greater than the impact three years ago. The new CRM strategy smashed the profit target by +48% and was a significant contributor to Homebase’s £11m operating profit in 2013/14. Most impressively it was responsible for +4.5% of total business growth.

The focus on timely and relevant communication has created a demonstrably more engaged and valuable customer in terms of both total spend and activity – for example, DM response is up 500% and repeat visits up 6%.