Data Analysis, Customer Segmentation
Yates achieves higher customer engagement with gardening club members by segmenting its database and customising content to increase purchase intent
The Yates Gardening Club had been established for some time and grown into a sizable database. However, communication was very much a ‘one size fits all’ affair in terms of content and targeting, resulting in decline in email response rates. The program also lacked a framework for measuring the influence on end-purchase.
Yates needed to significantly improve the email program and find a way to build value for members that could have a measurable impact on engagement, value and ultimately sales.
Gardening Club members had varying levels of gardening experience across the database, with novice gardeners needing more basic information than advanced gardeners. The more experienced the gardener, the higher the customer value to Yates, therefore building knowledge and confidence amongst members was identified as a way to increase spend.
In order to build the value in the Gardening Club program Yates needed to strengthen engagement with members through email communications. To achieve this we focused on building a deeper understanding of members from which we could define customer segments.
Once we had defined the segments, we created a content framework that ensured members were getting information that was useful and valuable and helped them extend their gardening experience and aspirations. By achieving this we could increase engagement and ultimately change behaviour in respect of purchase intent.
A research survey was built and sent out to the database to build insights around customer profile and purchase behaviour. The insights were then used to define customer segments and sales suggestions based on a scoring model. Cross referencing data from several survey questions led to hypotheses which could then be tested in campaigns.
A number of key segments were identified and each member was attributed to a segment. Content within the email communications was then customised based on the segmentation, including calls to action. The survey also included an NPS score question in order to gauge overall brand satisfaction.
An annual benchmarking survey is undertaken to measure relative shift in customer value and performance.
The impact of building a customer segmentation model and sending more relevant and engaging content saw growth in their high value segment year on year. This indicated that the strategy of building knowledge and experience through more targeted and customised emails was successful in increasing purchase intent.
Survey results also saw a year on year increase of 6% in NPS score.