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43 Casino uses customer data to select products for its TV ads. This way the French retailer can ensure it is communicating with the brands that resonate with a broad range of customers. Customer data has also empowered Casino to reduce the number of promotional leaflets it mails out to customers. These mailings take place every 10 days and have been sent out automatically for so long that French retailers are nervous that not sending them might lead to a dip in sales. dunnhumby discovered that customers who lived far away from Casino stores struggled to be loyal, an insight that gave the business confidence to reduce the number of leaflets it sent out. Significantly, the stores saw increased sales despite the smaller number of mailings. Similarly Kroger, along with the other big American retailers like Wal- Mart, sends a weekly mailer to the doorstep of nearly half of all US households detailing the latest promotions. Analysis enabled Kroger to add science to the mailer and ensure the special offers appealed to a wider variety of customers. Previously, the front page of Kroger's weekly mailer would be dominated by the three products with the largest discounts. Today, each promotion speaks to a different kind of customer. For example, a blueberry offer might appeal to an upmarket customer, a special offer on Tide detergent is a core product that should appeal to everyone, while a big discount on a basic brand will appeal to a price- sensitive shopper. Data analysis also enabled Kroger to achieve something of a coup for the weekly mailer - persuade two competing products to sleep with the enemy and share the front page. dunnhumby discovered that customer loyalty was pretty fixed on diet soft drinks and would not be swayed if two competitors advertised in the same place. For the Thanksgiving weekly mailer, one of the biggest in the calendar, Pepsi and Coca- Cola appeared on the front page together. Historically, a soft drink promotion had always featured but the two companies would fight over who should star each holiday. It was a momentous decision that worked. Following the joint promotion, both brands sold three times more soft drinks than previously. Putting the needs of the customers first often benefits business too. the end of irrelevance

44 Experience has shown that the more relevant our marketing messages are, the less we have to rely on execution to sell them. For example, even Tesco's till coupons have a 20% response rate. Compare that with the 1% response for glossy, high- production junk mail. If you send the right message to the right people, there is no need to be as reliant on execution and a small, black- and-white till receipt can be more effective. It's only very recently that companies have been able to properly target their marketing making it as relevant as possible. For this reason the entire marketing industry has spent years honing the execution of messages at the expense of relevance. As Edwina says: " The more relevant your offer, the fewer gimmicks you will need to sell it. It will sell itself because it is what people want." The more relevant our messages are, the less we have to rely on execution to sell them any colour you like as long as it's any colour you like Relevance Execution The more relevant the offer the fewer gimmicks you will need to sell it