Homebase: The trigger programme
Tom Phillips, Simon Langthorne, Monika Vinall, Alice Grainger, Richard Lewis, Sally Waters.
Model Citizens – Data analysis and modelling, AIMIA – Loyalty card and customer data, Howard Hunt – Dynamic communications printing.
How did the campaign make a difference?
Home improvement projects are irregular and unpredictable. This campaign seeks patterns in data to identify customer needs as close to spending opportunities as possible. The programme has moved average response rates from 9% to 46%, delivers 2% of total sales (£30.4m per year) and shifted ROI from 120% to 346%. Today over 50% of direct mail investment is focused on the programme.
What details of the strategy make this a winning entry?
DIY retailing was an unpredictable market. For over a decade, Homebase's marketing strategy had been to promote everything and discount every other weekend, focused on improving the 120% ROI, not on the 91% of non-responders. The Trigger Programme turned this on its head. Analysing shopping behaviours showed that speaking to top customers, at the right time, with the right message, gave them almost unlimited headroom for spend. This inspired the plan to spot specific behaviours that indicated a future need, then act quickly to prompt further spend, growing what was dubbed 'Share of Project'. For instance, a customer buying a kitchen would need tiles, flooring, lighting and paint. After 18 months, there are now 10 triggers that track specific behaviours and leverage opportunities with timely, inspirational and relevant communications.