inspire 2014 – room & board/experian marketing services: furnish a room full of new and loyal...

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Furnish a Room Full of New and Loyal Customers w/ Consumer Insights & AnalyticsBill SchneiderSolutions Support ConsultantExperian Marketing Services

Dave WilliamsSenior Marketing AnalystRoom & Board

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Get to know …

• National retailer of modern American-made home furnishings and accessories

• Founded in 1980 with a passion to help customers furnish homes they love

• Philosophy: Great design should be beautiful, affordable and long-lasting

• Core Values: American made, sustainable design, natural materials, value and exceptional customer service

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Get to know …

• 12 store locations

• 2 additional stores opening this year in Boston, MA and New York City

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Best customer

Engage them in their preferred channels

Identify and profile your best customer

Find more of them

Get to know …

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The evolution of marketing analytics

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Before …

“Back of the card” statistics• Hits• Batting Average• Homeruns• RBIs

The evolution of marketing analytics

After …

Uses Sabermetrics• OPS• WAR• VORP• Runs Created

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The evolution of marketing analytics

TB x (H + BB)Runs

Created (AB + BB)

=

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1. When to grow?

2. How to grow?

3. Who to grow?

4. Where to grow?

The application of marketing analytics

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When to Grow?

Plan marketing initiatives around your customers’ lives

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When to Grow?

Analytics objective:

Introduce consumers to the Room & Board brand during key times in the buying cycle when they are most likely to be in the market for a furniture purchase

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What you don’t know can hurt you

When to Grow?

• How do life events correlate with furniture purchases?

• How can we use data to identify an impending furniture purchase?

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Before …

Marketing messages are randomly delivered

• Hopeful of timely arrival

When to Grow?

After …

Marketing messages are synchronized• Optimally timed• Pre-cognizant

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How to Grow?

Be committed to a truly analytical approach to customer acquisition

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How to Grow?

Analytics objective:

Increase market share through adata-driven targeting and customer acquisition strategy

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Fish where the fish are

How to Grow?

Customer acquisition is an iterative process:

• Segment your preferred audiences

• Learn everything you can about each audience

• Incorporate a multi-channel and multi-touch marketing perspective

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What kind of fish are you?

… (1) Corral reef or (2) open sea?

… (1) Fast-paced or (2) laid back?

… (1) Attack first and ask questions later or (2) negotiate my way out of danger?

… (1) Day person or (2) night person?

… (1) Hang out with friends or (2) cruise on my own?

How to Grow?

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What kind of fish are you?

… (1) Corral reef or (2) open sea?

… (1) Fast-paced or (2) laid back?

… (1) Attack first and ask questions later or (2) negotiate my way out of danger?

… (1) Day person or (2) night person?

… (1) Hang out with friends or (2) cruise on my own?

How to Grow?

SEA OTTER

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Before …

Undifferentiated approach where everybody looks the same

How to Grow?

After …

We know who we are looking for, and the best way to attract them

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Who to Grow?

Understand how the marketplace is changing and where future sales are likely to come from

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Who to Grow?

Analytics objective:

Extend the Room & Board targetaudience by introducing the brand to a“next generation” consumer

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Questions to ask …

Who to Grow?

• Who is my future consumer?• What do they look like?• Where are they located?• How can I reach them?

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Who to Grow?

Ideal “next generation”customers …

• Young

• College Degree

• Living in urban markets

• Single/Newly Married

• Generations X & Y

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The importance of Millennials …

Who to Grow?

• Age 18 to 30 years• Account for 15% of U.S.

consumers• Grew up during and after

internet, social media, & mobile became the norm

• By 2020, they will account for nearly one-third of total spending

• Despite economic pains, spending has grown by 3% a year (past five years)

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Who to Grow?

Translation to Mosaic® USA• F22: Fast Track Couples

• F23: Families Matter Most

• G24: Status Seeking Singles

• G25: Urban Edge

• K37: Wired for SuccessActive, young, upper middle-class suburban couples and families living upwardly-mobile lifestyles

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Who to Grow?

Translation to Mosaic® USA• F22: Fast Track Couples

• F23: Families Matter Most

• G24: Status Seeking Singles

• G25: Urban Edge

• K37: Wired for SuccessYounger, upwardly-mobile singles living in mid-scale metro areas while balancing work and leisure lifestyles

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Who to Grow?

Translation to Mosaic® USA• F22: Fast Track Couples

• F23: Families Matter Most

• G24: Status Seeking Singles

• G25: Urban Edge

• K37: Wired for SuccessYounger, up-and-coming singles living big city lifestyles located within top CBSA markets

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Ideal “next generation”customers …

• Young

• College Degree

• Living in urban markets

• Single/Newly Married

• Generations X & Y

Who to Grow?

Strategy …

• Target young professionals,early in career to “come growwith us”

• Price sensitive messaging with emphasis on living space considerations and furnituredesign elements

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Before …

Ride the current customer wave until it crashes – which we don’t know when will happen

Who to Grow?

After …

Ride a series of waves with foresight as to what may happen next – have resources on the lookout for the next big wave

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Where to Grow?

Align your customer acquisition and development strategy with retail expansion goals

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Where to Grow?

Analytics objective:

Identify metro markets that are most desirable for future expansion

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When the growing gets tough, the tough get growing

Where to Grow?

Many analytical factors play into retail expansion decision making …

• Incorporate your customer acquisition and retention strategy into the market planning process

• Utilize CRM data to gain insights into the characteristics of customers within proximity to new site locations

• Layering attributes onto customers using Alteryx

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Before …

Real estate parameters primarily drive store location decisions

Where to Grow?

After …

Customer data and insights play a key role when evaluating new store locations

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• Go beyond “Back of the card” statistics

• Leverage analytics to identify trigger events

• Upgrade and polish your market segmentation strategy

• Look ahead to target the “next generation” customer

• Customer insights are key to market planning initiatives

Summary

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THANK YOU!