Dune London’s 7:1 return and £4.4m increase in incremental revenue down to data-based advertising strategy based on the right message, for the right person, at the right time.
Dune London has revealed the formula behind a remarkable £4.4m surge in incremental revenue over the past three and a half years, achieved at a time when retail is in decline and the UK high street has seen one in 12 shops close in the last five years. The company implemented personalised advertising based on advanced data analysis and insights, to deliver the right message, for the right person, at the right time.
Faced with the UK footwear market weakening, Dune ramped up efforts to secure more market share, by winning new customers and securing additional spend from its existing customers. It partnered with personalised digital marketing provider Conversant and implemented a programme that uses both historical and real-time data to drive customer lifecycle messaging and increased purchased rate.
“We’ve got four years of live historical data, plus all of the data we imported to the campaign,” explains Mark Blenkinsop, Head of Performance Marketing at Dune. “We know our customers and our customers' buying habits. And Conversant have remembered who they are, and they stay communicating with them. Over time, you win that person, and you gain market share.
"If we can get a consumer to come back and buy just one more category, we've just doubled the number of purchases this person made. One additional purchase may not sound a lot, but if you start to do this at scale, and the whole process is automated, then you really do start moving the dial. As any marketer knows, it's much more expensive to keep marketing to new customers.”
Based on both insight from Conversant, and that revealed by Dune’s data team, Dune customers and prospects were targeted with over 26,000 display creatives - personalised to each individual recipient. Test and control groups were implemented to gauge the value created from these personalised adverts, measuring performance against the baseline activity of a customer group that does not receive any Dune ads. It’s this test and control methodology that reveals the activity generated £4.4 million in incremental return for Dune.
“Grabbing and keeping attention has never been harder for marketers. And yet, as traditional retailers are tested more and more, it’s never been more important,” explains Elliott Clayton, Senior Vice President at Conversant. “Dune has proven that truly understanding individual customer behaviour and browsing and buying habits is an effective way of fighting the challenges facing retail.”