Client situation
- Client was a leading player in the B2B Office Services market
- A catalogue/online business with c.450k customers & a turnover of £300m-£400m
- Wide range of customers, from individuals through medium-sized/local to corporate
- The business covered the complete range of Office requirements from Paper/Ink & Toner to kitchen consumables
Challenge
- The client used standard ways to segment customers to target marketing initiatives e.g. size, industry sector and spend.
- Their marketing expenditure was not yielding the desired benefits
- They had a declining revenue and customer base of 8%-10% p.a.
- They believed they had an opportunity to seed-change the impact of Marketing if they better targeted clients based on attitudes and needs
What we did
- We conducted Quantitative Research, based on which we created “Persona Groups” rooted in common needs and priorities of customers
- We then identified what attributes of the offer were most important to improve for each Persona Group…
- …and used these to help identify which specific initiatives and marketing incentives could be most effective for that Persona
- Test vs Control analysis was conducted to evaluate the impact
Impacts
- Sales benefit of £18m from better targeted Marketing
- Margin benefit huge multiple of Fees (25*)
- New client capability to forecast impact of service and other initiatives on customer attitudes and behaviour
“The overall benefits of the RRI work were worth many millions of pounds a year”
– Director of BI and Research