As New Zealand’s foremost department store, Farmers operates 55 stores offering women's, men's and children's clothing, footwear, health & beauty, plus homeware, appliances and furniture.
The Farmers Club loyalty programme is primarily a points/rewards programme that rewards members with a $20 voucher for every 200 points they earn. They also qualify for exclusive discounts in-store from time to time.
Like all fashion retailers, Farmers has two key fashion periods each year – Spring/Summer and Autumn/Winter. Because of a number of macro factors, Autumn/Winter new season fashion starts appearing in all retail stores from mid-February, when summer is just starting to heat up.
Because all other retailers launch their new season campaigns at this same time, Farmers has to have a marketing presence – you’re damned if you do and damned if you don’t.
Previous new season launch campaigns, which were focused around mass-scale letterbox-dropped catalogues, soaked up a significant proportion of the marketing budget and produced little ROI. A smarter way of launching new season to their customers had to be found in order reduce costs and produce a stronger ROI for the business.
In-depth data analysis was undertaken to gain behavioural insights from the Farmers Club base that enabled a move from a generic one-size-fits-all, mass blast approach to a highly targeted, personalised and relevant mail pack, all while reducing cost and wastage.
Based on which product groups they had purchased from, each member was assigned a maximum of 3 groups e.g. classic/price conscious-dressy/plus size, and then received one of 16 different catalogue versions. Each version featured fashion from the brands within those groups, so customers were predominantly being shown content they were actually interested in, as well as an aspirational section to upsell them into higher price point brands.
The catalogue was accompanied by a completely personalised letter - there were 64 versions - with messaging based on the customer’s combination of categories and Farmers Club statement balances.
This brave new strategic approach, founded out of solid data insights, allowed the cost of the Autumn/Winter 2013 new season catalogue launch to be reduced by over 40% and ROI improved over the period by 45%.