Ted Baker
How segmenting customers on their psychological needs increased sales conversion by 50%
SERVICES: Insights
IMPACT AREA: Campaigns & Product
TOOLS: Neopic & Interviews
The Challenge
In relation to the push for omnichannel development for its target audience the client realised there was a customer mismatch between online and in store experience. This was impacting both online and in-store sales conversion numbers. This was made more problematic due to marketing and the commercial teams trying to communicate with 9+ customer segment groups.
The client needed to create a smooth brand experience that connected between online and in-store and to find a way of engaging with its audience in a singular call to action, rather than having 9 separate strategies to each of its ‘assumed’ segment groups.
2 step approach
In the investigation phase, we deployed a 2-level approach.
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We used the client’s customer database and newsletter generation to develop and send out a psychometric test using our unique NEOPIC engine that measured customers ‘mindsets’ (their non conscious needs, decisional drivers and motivations) across the US and UK markets.
We then conducted Psychological Interviews with a small subset of these emergent ‘mindset’ customers to map out what they did, how and most importantly why.
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Analysis of the 20,000+ customer responses revealed 3 significant customer ‘mindset’ segments (simplifying customer segments from 9 to 3) that held significantly true across both geographic markets, irrespective of age, income or relationship status.
We worked with the digital, commercial and in-store teams to change the descriptions of each item in relation to the ‘shopping need’ motivations of each of these three mindsets.
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We then did A/B testing for a 6 month period – testing the sales conversion rates of the original descriptions of the items against the new motivationally inspired copy.
The client reported sales conversion rate increases of up to 50%. The largest uplift in sales conversion it had ever reported.
“This has to be the most impactful work we have undertaken as a brand to get into the minds of our customers.
The psychological work not only simplified the customer landscape for us but revealed deep points of engagement beyond the sectors normal price and discount activation attempts. The work was effective, timely and put into action across our commercial and digital outlays very smoothly’
— Head of Marketing