New Look Harnesses AI-Driven Customer Data for Revenue Growth: Uncovering £8.1M in Untapped Potential

Table of Contents

1. Key Highlights:
2. Introduction
3. The Need for Unified Customer Data
4. The Amperity and Databricks Partnership
5. Harnessing Insights for Targeted Marketing
6. Enhancing Customer Experience Across Channels
7. Identifying Untapped Revenue Opportunities
8. The Role of AI in Customer Data Management
9. Looking Ahead: The Future of Retail Data Strategies
10. FAQ

Key Highlights:

• New Look has successfully implemented Amperity's AI-powered customer data cloud, integrated with Databricks' Data Intelligence Platform, to unify customer data across all channels.
• The partnership revealed that 31% of top customers used multiple email addresses, leading to fragmented profiles and a significant opportunity for improved targeting and personalization.
• Projections indicate the potential to recover £2.1M from converting one-time buyers into repeat customers and £2.4M from reactivating lapsed customers.

Introduction

In an era where customer experience is paramount, retailers are increasingly turning to data-driven solutions to enhance their understanding of consumer behavior and preferences. New Look, one of the UK’s leading fashion retailers, has taken a significant step forward in this domain by integrating advanced technologies to unify and optimize its customer data. This strategic move, powered by Amperity's AI capabilities and Databricks' Data Intelligence Platform, not only streamlines customer insights but also paves the way for substantial revenue growth. With the ability to identify high-value customers and deliver personalized experiences, New Look is poised to redefine its operational strategies and enhance customer loyalty.

The Need for Unified Customer Data

The retail landscape has evolved dramatically, and companies are under pressure to adapt quickly to meet customer expectations. Traditional methods of data collection often lead to fragmentation, where customer profiles are disjointed across various channels. This fragmentation can hinder effective targeting and personalization, resulting in missed opportunities for engagement and revenue.

New Look recognized the pressing need to unify its customer data to combat this issue. Jack Freeman, Customer Analytics Manager at New Look, highlighted a staggering finding from their pilot program: 3.4 million customer profiles were fragmented across multiple records. This revelation underscored the importance of a cohesive data strategy, particularly as 31% of high-value customers utilized multiple email addresses, complicating the retailer's ability to accurately serve them.

The Amperity and Databricks Partnership

To address the challenges of fragmented customer data, New Look partnered with Amperity, an AI-powered customer data cloud, and Databricks, known for its robust Data Intelligence Platform. This collaboration aims to deliver a seamless integration of customer insights across online and in-store channels, enabling New Look to identify and engage its most valuable customers effectively.

The integration process was remarkably efficient, taking less than 90 days to implement. This speed can be attributed to the bidirectional data sharing capabilities that allow for the rapid processing of over 7.5 billion records without the need for complex schema mapping. Such capabilities not only enhance operational efficiency but also democratize access to data across the organization, empowering teams to derive actionable insights quickly.

Harnessing Insights for Targeted Marketing

The insights derived from the integrated customer data platform have proven instrumental in shaping New Look's marketing strategies. The pilot program indicated that enhanced data-driven marketing could lead to identifying and reaching 24% more high-value customers. This expansion in customer reach is critical for driving higher sales and improving the overall shopping experience.

Moreover, the partnership has resulted in significant financial benefits. New Look projected over £1 million in media savings and a 50% increase in return on ad spend through the use of audience targeting developed by Amperity. These results exemplify the power of leveraging unified data to craft more efficient marketing campaigns that resonate with consumers.

Enhancing Customer Experience Across Channels

One of the most compelling outcomes of New Look's data integration is the ability to deliver personalized experiences that span both online and in-store interactions. The retailer's focus on understanding customer behavior has revealed that customers who engage across multiple channels tend to spend significantly more—95% more, to be exact—and place twice as many orders.

This insight is transformative for New Look, as it allows the company to create campaigns that incentivize customers to shop both online and in-store. By recognizing that 71% of their top customers shop across various channels, New Look can strategically position itself to enhance customer loyalty and lifetime value.

Identifying Untapped Revenue Opportunities

The partnership with Amperity and Databricks has not only streamlined New Look's data management but has also unveiled several high-impact revenue opportunities. Some notable projections include:

• Recovering £2.1 million by converting just 5% of one-time buyers into repeat customers.
• Generating an estimated £2.4 million from reactivating only 1% of lapsed customers.
• Realizing £8.1 million in potential revenue by converting just 1% of single-channel shoppers to omnichannel customers.

These figures highlight the substantial financial implications of effectively leveraging customer data. New Look's ability to uncover such opportunities underscores the importance of data analytics in driving business decisions and optimizing customer engagement.

The Role of AI in Customer Data Management

AI has emerged as a cornerstone in modern customer data management, allowing retailers to process vast amounts of information quickly and accurately. New Look's implementation of Amperity's AI-powered identity resolution feature has been pivotal in addressing the challenges posed by fragmented customer profiles.

By utilizing AI technology, New Look can now recognize and consolidate customer identities across multiple interactions. This capability not only improves the accuracy of customer profiles but also enhances the retailer's ability to deliver personalized experiences tailored to each shopper's preferences.

Looking Ahead: The Future of Retail Data Strategies

As New Look continues to harness the power of unified customer data, the implications for the future of retail are profound. The successful integration of Amperity and Databricks serves as a model for other retailers looking to enhance their data strategies and improve customer engagement.

The insights gained from this partnership are already informing New Look's long-term strategy, emphasizing the importance of understanding customer behavior across channels. The retailer’s commitment to leveraging data analytics will likely position it favorably in an increasingly competitive market.

FAQ

What is Amperity? Amperity is an AI-powered customer data cloud that enables businesses to unify and analyze customer data from various sources to improve customer engagement and drive revenue growth.

How does the partnership with Databricks enhance New Look's data strategy? The integration with Databricks allows New Look to process large volumes of data quickly and efficiently, facilitating the seamless sharing of insights across the organization.

What are the benefits of having a unified customer data platform? A unified customer data platform enables retailers to create accurate profiles, improve targeting and personalization, and ultimately enhance customer experiences across multiple channels.

How can retailers leverage customer data for marketing? Retailers can use integrated customer data to identify high-value customers, tailor marketing campaigns to specific segments, and optimize advertising spend for better returns.

What kind of revenue opportunities has New Look identified through this data overhaul? New Look has identified several significant revenue opportunities, including potential recoveries from converting one-time buyers into repeat customers and reactivating lapsed customers, amounting to millions in untapped potential.