Travis Perkins and ewe identified a group of customers who showed potential to spend a greater amount with Travis Perkins, based on their lifecycle and/or purchasing behaviour. Our aims were:
• To deliver the most relevant communications pieces using appropriate and timely personalisation, channels and incentives that motivate customers to change their behaviour.
• To analyse, evolve and optimise all stages of the Lifecycle programme to deliver continuous improvement and greater ROI.
Through a number of workshops we revised the entire customer journey from account opening to lapsed. Then, through sequence analysis, we looked at typical spend gaps in customer purchase patterns, to determine campaign timing. In addition we looked at early purchase patterns to identify tipping points where transaction frequency and average transaction value increased exponentially in order to set targets and drive the format of incentives. This formed the base of the Lifecycle programme and the first output was then subjected to a testing programme and roll-out. Different creative executions for each stage were trialled, with different messages and incentives, including varying levels of personalisation, always against control groups, in order to determine the most effective piece. Direct telephone contact, email and SMS channels were added to different stages in order to test which channel works most effectively and in what combination.
A customer tagging system was developed so that each customer group could be flagged and the pack versions, personal barcodes or channel combinations they received could be recorded. Total sales, profit, response rates, transaction count, sales and transactions per customer and average transaction value are all tracked alongside the profile of responding customers. These results are continually used to affect segmentation and behavioural targeting of customers and personalisation of the communications pieces, channels used and the creation, or removal of lifecycle stages. The key objective and the one that has made the greatest impact within Travis Perkins Plc itself is the objective to deliver incremental sales.