K Group, the Finnish retailer, has created motivation-based customer segments to help it understand why consumers choose to shop in its stores over those of its rivals.

Despite owning a wealth of consumer information, collected from 3.6 million loyalty members and 1.2 million daily store visits, K Group knowledge was limited to the rational reasons rather than any emotional ones.

“We basically know what, when and where they buy,” Caroline Nykter, K Group’s Head of Data-Driven Marketing, told a recent London conference. (For more details, read WARC’s report: Data partnership lessons from Finnish retailer K Group and media owner Sanoma.)

But work on motivational modelling of its customer data and market research identified 500 distinct customer “needs”, she revealed.

These were condensed to 60 based on relevancy to the grocery retail segment, and these, in turn, were validated against a survey of 22,000 customers.

The end of the process was the creation of five motivation-based customer segments; each of K Group’s grocery retail brands settled on those most likely to correspond with their customers, based on metrics such as store visits, and adapted their marketing strategies accordingly.

The segments were used to inform programmatic media buying, in combination with existing consumer insights and datasets.

The retailer has also worked with media owner Sanoma to find ways to overlay its own segmentation on the latter’s customer data.

“It enables us to combine data content and media context in a more intelligent way in our campaigns,” said Nykter. “We’ve also seen a significant uplift in campaign activation rates compared to other second-party data sources.”

Describing the results as “promising”, she reported that the next stage will be to start testing different creative content.

“That’s why the increasing of the cadence of our cooperation is important. You have [work] continuously in order to get more insight on [the effectiveness of] content plus context.”

Sourced from WARC