Parent & children’s products retailer, Kiddicare today announced a 20 per cent online sales increase in just four months.
Since Morrisons bought the company for £70 million last February, it has become a strong competitor in the baby care sector through its focus on using its online presence to maintain relationships with existing customers rather than trying to recruit new ones to the site.
Analytical data, provided by IBM Smarter Commerce software, has allowed the retailer to determine the behaviour conducted by its online audience and highlighted a flaw in targeting a first time user who did not make repeat purchases.
The retailer claims that this turnaround in strategy has helped the business to improve productivity and sales.
Simon Harrow, Technology Officer at Kiddicare, explained: “We looked at the data in the business and the capital opportunities were very apparent.
“Up to that point, only seven to eight per cent of our business came from repeat customers, despite the fact that our analytics and satisfaction tracking said that 98 per cent of our customers would recommend us.
“It felt counterintuitive to have a raving fan base, but no communications strategy post purchase.”
Introduction of the, ‘Most Popular Everyday Baby Essentials’ section from a portfolio of 650 products has been the most successful in attracting return revenue as opposed to the one-off purchase.
Kiddicare’s integration of social media channels and video links to its website has also helped to generate sales, widening the gap between the retailer and rival Mothercare, which has seen a significant loss in profits and recently announced that it will be closing another 111 UK stores by March 2015.
Andrew Jackson – Proes, IBM Enterprise Marketing Management Leader for UK & Ireland, believes that by making an investment in understanding customer needs, Kiddicare has reaped rewards.
“The company operates in a sector that provides multiple opportunities to assist each customer through the different stages of raising a family,” he commented.
“By using data already available within its system to understand customer behaviour and anticipate needs, Kiddicare has ensured a long-term and profitable relationship with its customers.”