UniFida Use Cases
Luxury Clothing Retailer
Client: a luxury clothing manufacturer and retailer
Customer base: 100,000+
Return on investment: Year one ROI from introducing UniFida 200%, subsequent years 600%
The client invited UniFida to work with them to develop a business case for introducing a customer data platform, in conjunction with our partner technology Fresh Relevance, for website and email personalisation.
Identification of the key business areas where benefits could be obtained
This started by holding a workshop looking at all aspects of the marketing processes, where either activity could be made more effective, or cost savings could be found through efficiencies.
The key areas we identified were:
- Through understanding the value delivered by new customers in the seasons following their initial order, the client is able to understand the longer-term value of different customer groups that have been recruited, and hence build an overall business model and recruitment plan
- Increasing the size of the profitably mailable universe by developing and applying reactivation models, so that some parts of the customer base that had previously been regarded as dormant could be reactivated
- Deduplication of all customer data so that all online and offline communications could go to properly identified individuals
- Introducing a customer segmentation based on the types of product customers had shown an interest in via browsing or purchase so that this could be reflected in the content of the catalogues sent to them
- Similarly, personalising emails by known customer interests; the client was previously sending weekly, and largely undifferentiated, emails
- Using a combination of offline transactional history, and online browsing behaviour, to personalise the web experience; in this way for instance a dormant customer found looking on the website could be made one targeted offer to reactivate them, whilst a known high value customer would be made another
- By attributing orders to the multiple online and offline causes that may have influenced them, the client can reorganise their marketing mix to reflect the value delivered by different channels and campaigns
- Reducing the staff time taken in making selections for mailing and email campaigns, and in reporting on results
Estimating the uplift to be obtained from the benefit areas
This was based on the client’s estimates of the level of benefit that could be obtained in each of these areas, combined with staff cost savings from operational efficiencies.
The levels of improvement varied from one benefit area to another, but overall the conservative view of the value uplifts came within the range of 3% to 20%.
These factors were then applied to the current contribution obtained from e.g. email activities, and a benefit value calculated for each area.
The result
The calculation allowed for the fact that year one costs would be higher, and benefits lower, than subsequent years because of the need to configure UniFida and test the changes that were to be introduced.
That said, the year one conservative ROI was 200% and subsequent years 600%, where ROI is calculated as the value of the benefits and time savings, divided by the full cost of the technology.
The client concluded that the benefits of investing in customer data platform and personalisation technology were considerably greater than increasing marketing expenditure by the same amount, and on that basis decided to proceed.
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