Cross-Marketing Situation
- A big box DIY retailer had adhered to a successful formula in sales promotion until the recession changed the market.
- The recession was in full bloom keeping people out of the DIY stores for all but necessities.
- Historically, this retailer had defended and grown a stable share of each of the DIY merchandise categories.
- A more aggressive budgeting process saw marketing budgets scrutinized with aggressive sales objectives.
Marketing Performance Management Opportunity
Merchandise Managers would argue that some of these categories were more recession proof than others; and they would argue that some categories of merchandise were more accessible to consumers who had no choice but to DIY in this economy.
- Facing seasonal cycles with uncertainty, the promotional sales opportunities needed to be tested quickly to adjust to the new reality.
- Select merchandise categories need to be confirmed as more “recession proof” to qualify for investment
- Financing and credit activity would be a critical KPI in performance
Fisical Pro Insight
The retailer used the Kneebone 3.0 marketing performance platform to assess the impact of specific changes to promotional plans within the context of the changing market and interest rates.
- It is possible to find alignment between two product groups and pool resources into one promotional plan.
- The aligned budgets can be deployed more effectively with more engaging, and integrated communications,
Customer Experience:
The collaboration required produced an important new dynamic. Marketing leadership and the company's Marketing Suppliers worked together to support the exercise. The clarity, transparency and trust created with the platform modeled an important process for success.
Kneebone ROI
The customer reduced the overall investment required by 32% year over year. The divisions increased overall sales by 18%.
