Wickes make £7m in incremental revenue with Deployteq
Wickes, a leading DIY retailer, faced challenges in engaging and retaining customers effectively. They needed to address limited category shopping, infrequent visits, and a perception gap among its customer base. Wickes embarked on a journey to implement a customer strategy centred around behaviour change and segmentation.
25%
increase in repeat purchases among existing customers.
30%
increase in average basket size among professional customers.
£7 mil
in incremental revenue in the last year.
£288k
incremental revenue from Meta & Google omnichannel tests.
Identifying challenges
- Limited categories shopped by customers: Despite offering a wide range of products, customers were only purchasing from a narrow set of categories, limiting their overall spend.
- Infrequent visits from the majority of customers: A significant portion of customers visited Wickes sporadically, indicating a lack of ongoing engagement and loyalty.
- Perception gap regarding Wickes’ offerings: Many customers perceived Wickes as a destination for specific products rather than a comprehensive solution for all their DIY needs.
Solution: Mission Motivation Engine
Together, Wickes, ITG and Deployteq developed the Mission Motivation Engine (MME), serving as the anchor for its customer strategy. The MME used both online and in-store data to understand customer motivations, preferences, and shopping behaviours. To inspire customers, drive mission-based purchases, and provide personalised recommendations. The key components of the MME were:
- Understanding customer motivations and tipping points: By analysing data on customer preferences and behaviours, Wickes could identify the motivations driving customer decisions and tailor its offerings accordingly.
- Predicting channel mix and communication frequency: The MME used predictive analytics to determine the most effective channels and communication frequency for engaging with customers based on their preferences and behaviou
- Segmentation based on primary missions and shopping behaviours: Wickes segmented its customer base into distinct groups based on their primary missions and shopping behaviours, allowing for targeted marketing and personalised experiences.
TradePro focus
For its professional audience, Wickes identified seven trade missions, such as interior fixtures & fitting and building. It segmented TradePro customers based on their primary missions and developed tailored programs for acquisition, growth, retention, and winback. Using these segmentations, we could then send completely personalised communications such as monthly growth campaigns, seasonal offers, welcome or re-welcome campaigns and surveys.
DIY & Showroom Segmentation
Wickes employed aptitude-based segmentation for DIY and showroom audiences, catering to various customer motivations such as satisfaction, self-expression, and well-being. It designed programs to educate, inspire, and support customers through their DIY projects. This allowed Wickes to personalise communications based on customer behaviour and motivations, leveraging predictive models like Next Best Mission (NBM) to guide customers through their missions.
Mission inspiration and Mission In Motion Programmes were the first to launch
Mission Inspiration: Multi-channel, mission focussed programme launched in October-23 designed to change perceptions of Wickes and activate customers who are not currently in a mission. Next best mission predictive model in build to customise content. Since launch, programme has produced £400k incremental revenue.
Mission in Motion: Post Purchase trigger series guides and supports customers through their DIY project, keeping them motivated, anticipating the questions, challenges and barriers that customers would typically encounter. Launched March 2022. This produced £279k incremental revenue in 2022 and £229k 2023.
Omnichannel approach
ITG also implemented an omnichannel approach to reach customers effectively, conducting meta tests across platforms like Google and Meta to promote their Discover, DIY and Mission Inspiration ad campaigns. These initiatives resulted in significant incremental revenue and improved customer engagement.
The results
- The Mission Motivation Engine (MME) generated a 25% increase in repeat purchases among existing customers.
- TradePro programs led to a 30% increase in average basket size among professional customers.
- The Showroom Missions generated an extra £7 million in incremental revenue in the last year.
- Omni-channel tests yielded a combined incremental revenue of £288k, demonstrating the effectiveness of multi-channel engagement.
- Personalised content based on aptitude and motivation led to a 20% improvement in customer satisfaction scores.
What’s next for Wickes?
Looking ahead, Wickes aims to prioritise live operations, finalise ongoing initiatives, optimise processes, and revolutionise its customer strategy. It plans to shift focus from measuring program value to customer opportunity value, targeting high-value customers and investing in personalised experiences.
Wickes’ transformation of its customer strategy demonstrates a proactive approach to addressing customer challenges and driving growth. By leveraging data-driven insights, segmentation, and personalised communications, Wickes aims to enhance customer engagement, retention, and lifetime value, positioning itself as a leader in the DIY retail space.
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