The National Gallery gains an understanding of customer segments through data analysis

The Challenge

According to Direct Marketing News, only 20% of marketers truly know their customers. With this in mind, The National Gallery shop challenged RedEye to help them gain a better understanding of who their online customers and email database were. From this data, they will be able to define and tailor their future email strategy.

This project is the first tier of three, which will provide The National Gallery shop with both the analysis and tools to make beneficial improvements.

The Solution

The National Gallery Shop provided RedEye with various data files that they have collected via their shop, website and through third party purchases. These were amalgamated by RedEye to provide a single customer view displaying contact information, and transactional details. Using their analytical expertise this allowed RedEye to investigate and inform The National Gallery Shop who their data was made up of and ultimately who their customers are.

The Results

RedEye found certain patterns in the recency, frequency and monetary analysis which provided The National Gallery Shop with a clearer understanding of their customer’s online behaviour, and purchases.

It was found in recency analysis there were patterns in the time of year customers are most likely to purchase. It was also evident the calendar months directly affected how many purchases were made by customers. This will enable the National Gallery shop to tailor their email activity to maximise on the peak periods. Transactional sources were also looked at to see if there was a correlation between people that brought from multiple sources.

When looking at frequency analysis RedEye were able to identify customer segments based on buying behaviour, i.e. repeat and single purchasers. These segments were closely examined to determine if gender and people that bought over multiple categories had an impact on repeat purchases. This information will then be used to help define future strategies for first and next purchase emails.

Finally, when looking at monetary analysis and the correlation between multiple purchases and single purchases it was possible to see if people that bought multiple times have a higher average order value than single purchasers. This provides National Gallery shop with the value of individual email addresses and will help with dictating which customers to send upsell emails too.

Working with RedEye has been very insightful, providing information on our customers. It's crucial to know who to target and when. This information will be invaluable for segmenting and tailoring emails to our customers.

Head of Digital Trading

The National Gallery

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