Customer Focus Case Study

Client: A leading home improvement retailer Business Problem: Developing a brand strategy that leverages the retailer's competitive strengths and appeals to market segments with the most accessible profit potential.

Approach

MaPS worked with the retailer's strategic team to develop a framework for evaluating factors that impact home improvement spending. After conducting phone interviews with current home owners, we developed a list of behaviors and attitudes that differentiated the retailer's customers into five separate segments. Based on this list of behaviors, we sized each segment within the current home improvement market and prioritized the segments that were the most accessible and offered the greatest profit potential.

Once key segments were identified, MaPS completed phase two of the study which was developing a strategy for targeting priority customers. Because positive affinity with the retailer drives customers' share of home improvement spending, we constructed models of customer satisfaction and spending. The models were used to prioritize tactical, customer-focused initiatives in retail locations in order to drive customer affinity and, subsequently, customer spending.

Results

Segmentation results were used to target marketing communications to key customer segments. In addition, the results drove brand development across merchandising and operations initiatives as the retailer developed its business to address these customers. Satisfaction models were used to improve the in-store experience and grow customer loyalty.

Recent initiatives driven by our research include:

• Reframing the retailer's brand across a wide range of marketing and communications initiatives targeting priority customer segments
• Rolling out operations and merchandising initiatives to increase spending among core customers and prospects
• Developing customer satisfaction goals for managers

Back to Top