Kiddicare, the online nursery and baby equipment supplier owned by Morrisons, reports it has increased sales by 20% over a four-month period by investing in IBM solutions, which have helped drive repeat purchases.
The solutions are reported to have enabled Kiddicare to engage with customers across digital, social, mobile and traditional marketing channels, as part of a plan to broaden its focus beyond new customer acquisition.
Specifically, the retailer wanted to drive repeat business, better customer retention and higher order values, said IBM.
By adding IBM analytics software to its existing IBM e-commerce infrastructure, Kiddicare said it has been able to mine the large volume of data it collects, analyse customer behavior and personalise communications.
With this business intelligence, Kiddicare said it has identified new sources of revenue, created customer incentive initiatives and deployed more effective marketing and communications strategies; with each having a direct impact on online sales.
“We looked at the data in the business and the capital opportunities were very apparent,” said Simon Harrow, technology officer at Kiddicare.
“Up to that point, only 7-8% our business came from repeat customers, despite the fact our analytics and satisfaction tracking said 98% of our customers would recommend us. It felt counterintuitive to have a raving fan base, but no communications strategy post purchase.”
After four months, the basket value analysis is reported to have showed an increase of almost 50% in the number of items per order.
Initiatives such as the introduction of new product ranges, including the Most Popular Everyday Baby Essentials, featuring leading items from a portfolio of 650 products, has led to an increase in repeat business versus one-off purchases, said Kiddicare.
In addition, new insights have also helped Kiddicare understand the value of new initiatives as it modernises the site, introducing more video and extending the integration with social networking tools to drive conversion and value in sales.
Harrow said: “The value of the data derived from IBM goes beyond our enterprise content management system; it feeds into everything we do from kiosks, to web and email. This will continue as we venture into Android and iPad applications, newer kiosk development and a web site re-design.”
“Kiddicare’s success demonstrates the rewards of taking a customer-centric approach to communications and marketing,” said Andrew Jackson-Proes, IBM Enterprise Marketing Management Leader for UK & Ireland.
“The company operates in a sector that provides multiple opportunities to assist each customer through the different stages of raising a family. By using data already available within its system to understand customer behavior and anticipate needs, Kiddicare has ensured a long-term and profitable relationship with its customers.”