Customer data enables personalized communication
Work on data-driven communication began with a customer target group analysis conducted with the help of Dun & Bradstreet analyst Niklas Lindblom. The first step involved ensuring the quality of NetOnNet’s own customer data while drawing on as much background as possible in terms of customer insights.
NetOnNet in numbers
- Opened 10 March 1999
- Group includes 33 stores
- Over 900 employees working for the company
- SEK 5.1 billion in turnover (2016)
In the next phase, Dun & Bradstreet added their data in order to expand on these customer insights. Data relating to customers’ housing situation, interests, life stages and purchasing power allowed us to divide NetOnNet’s customers into six different segments, each with different motivating factors and purchasing patterns. These formed the basis for NetOnNet’s email communication with customer club members.
This data-driven approach has therefore provided NetOnNet with important insights in terms of exactly which products customers are interested in and what their next purchase is likely to be. Once communication with customers was tailored accordingly, the results were immediate.
“If you look at the open rate, it’s gone up by over 100% compared to when we were providing all our customers with the same information. And if you look at purchase conversions, they’ve also doubled. We also see that Klubbhyllan members make more purchases on average and visit us more frequently,” says Gancarz.
Customer segmentation for smarter product development
In addition to communication with customer club members, Dun & Bradstreet’s target group analysis and customer segmentation form the basis of NetOnNet’s product development. For example, if NetOnNet decide to launch their own range of barbecues, they already have a good idea of what customers are looking for.
“The kind of barbecue that customers choose to buy depends on, among other things, whether they have a balcony or a garden and how much money they’re able to spend. Instead of relying on a gut feeling, these days NetOnNet can use customer profile data to offer the right products,” says Lindblom.
The next step in offering data-driven, personalized communication is to customize content on www.netonnet.se so as to create a personalized experience. Together with Dun & Bradstreet, NetOnNet is currently developing the homepage to customize it for every visitor.
“The idea is that every visitor to the site should enjoy a unique experience where we provide the right customer with the right products and the right information in the form of guides and tips. We think you can do a lot with data-driven communication, and I actually believe we’re one of the companies that can push it to its limits,” says Gancarz.
How Dun & Bradstreet helped NetOnNet
- Quality assurance and analysis of NetOnNet’s internal customer data
- Enhancement of NetOnNet’s customer datausing external data to provide richer customer profiles
- Target group analysis and segmentation of customers into six different target groups with different motivating factors
- Continual access to analytical competence for a period of two years while building the CRM strategy