Leveraging Data To Reverse Declining Growth
The tail wind for luxury retail in China has waned as competition increases, retailers struggle to grip the online to offline model, and the perception of ‘accessible luxury’ versus ‘luxury for the few’ blurs. Combined with
macro-economic factors, this has put many brands in precarious positions, battling to evolve the customer experience and know their customers intimately.
Our Client repurchased its brand from licensees in China at a time when revenue growth was slowing. Senior management identified that its ownership of the customer and their experience had diminished. In response, they created a new discipline and regional role focused on the customer, insights and experience. The challenge was to identify where to start for the quickest impact to revenue growth.
Using the Company’s historical data, Ogilvy Consulting identified customer clusters based on their behaviors and profiles. We discovered unknown personas that represented the most loyal and potentially valuable customers. We leveraged the data to arrive at more precise analyses of lifetime and advocacy value. We then developed business cases for these new sets of customers — and developed tailored brand experiences, programs and communications. We rapidly piloted and deployed these brand initiatives based on deeper, more accurate customer data, and designed more bespoke communications for these segments. The immediate impact on revenue incremental sales of over US $1M within 9 months.