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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!
