by Andrew Swinand, CEO of Inspired Thinking Group
The economic climate has hit wallets hard, with a knock-on effect for retailers. 47% of UK consumers admit they’re currently likely to squirrel away any spare cash into their savings – that’s according to a 2024 survey by KPMG. Combined with a saturated marketplace that offers customers almost unlimited choice, brands must deliver more than a great product or competitive price.
Experiential, personalised marketing is now an absolute must, and to do that requires not just data, but the ability to interpret it and unlock deep, meaningful insights that build connections, trust and ultimately brand loyalty. Then, of course, you need to create the content.
Personalisation and changing perceptions
The stats back it up. Segment reported in 2023 that over half of consumers (56%) will become a repeat buyer following a personalised experience, while McKinsey found that 76% are more likely to consider purchasing from a brand who personalise.
This isn’t simply sending emails with the customer’s name at the top. It’s about learning what makes each customer tick, pooling from trusted data sources (first-party data is always best) to build a comprehensive profile of that individual, and then activating multichannel, multi-touchpoint experiences. Retailers can’t rely on passing footfall alone in 2024 – they need to be actively researching and then communicating on the customer’s preferred channel, at the right time, with content that sparks engagement and action.
This is a mindset shift for many brands that starts with setting clear objectives. Yes, you can aim to prompt a quick one-off purchase, perhaps with a limited-time discount code, but the retailers who do customer experiences best are overwhelmingly focused on nurturing long-term relationships. They’re consistently enhancing the perception of their brand in the eye of the recipient – getting them back because they want to, not because they need to.
Wickes unlock significant revenue growth
At ITG, our data and insights team work across the four core pillars of our business (Capture, Create, Automate and Integrate), giving us the ability to understand targets of opportunity and customer segmentation as we execute a halo of channel-specific content for our clients. We unlock revenue growth through a combination of data science, analytics, traditional and AI-driven research – transforming raw data into human insights to create lasting connections.
Let’s look at how ITG work with Wickes. A study by Nobel Prize-winning psychologist Daniel Kahneman argues up to 90% of our decision making is made by the emotional side of the brain – this is where behavioural change happens.
Wickes wanted to shift the relationship customers had with their brand, going from their top-up home improvement retailer and a stop on the to-do list of a DIY job, to an integral part (and even inspiration for) these ‘missions’. So, we created the Missions & Motivations Engine (MME) – a machine-learning model that ingests data to automate the creation of personalised, highly relevant customer-facing content, which comes to life within and outside the Wickes digital and physical ecosystem.
These communications are tailored to what the customer wants to achieve in practical terms (the mission, e.g. a room renovation or garden tidy), and then the motivations behind it. Customers have three primary motivations behind any decision:
- Implicit – emotional, intuitive, ‘gut feeling’
- Explicit – ‘I must do this’, logical reasoning
- Aptitude – level of ability/willingness to take on a DIY project
Moving Wickes’ communication approach from product to project-focused, we sought to engage customers on their full end-to-end mission and become retailer of choice for every product they needed to complete it. We also switched out previous BAU, ‘sales-talk’ messaging for something more inspiring and encouraging, along with personalised hints and tips.
The results were outstanding, with the MME responsible for a £7million uplift in incremental revenue in its first wave of programmes alone. As it has evolved, the MME has become a key contributor to the impressive growth seen by Wickes, with recent figures showing TradePro sales up 14% YOY.
Invest in data for long-term success
I’ve seen brands struggle with personalisation for different reasons. Many have a strong pool of data, but lack the tools or team to maximise its potential. Some have to start from scratch, transforming the way they gather and manage customer data. Either way, this takes long-term thinking and committed investment.
Business success now necessitates data-driven marketing strategies and fully personalised customer experiences. Sustained revenue growth is achieved by generating consistent loyalty to your brand rather than chasing one-off purchases. Retailers need to offer something more, something that recognises the customer as an individual, and shows them that they’re valued beyond their contribution to the bottom line.
