Space NK apothecary retails innovative high-end beauty, fragrance and skincare products to customers around the world. It was looking to take control of its customer data analysis and improve time to market. Space NK was searching for a database marketing solution that would enable its marketing team to take campaigns from concept to action in 24 hours or less, rather than weeks. With BlueVenn’s blueANALYZER solution, Space NK can now combine multiple sources of customer data and derive reliable insight to underpin marketing decisions.
Space NK: the background
Space NK Apothecary is an international supplier of luxury beauty products, with an extensive online store, 62 stores across the UK and Ireland and 22 in the US. It continually adds innovative products to its range.
It is not untypical for organisations to outsource customer data management to an agency to carry out analysis that becomes the foundation of marketing campaigns.
Once every couple of weeks, Space NK sent data to a third party agency which would perform deduplication and data cleansing and then supply management reports. This included email selections, brochure selections and reporting on numbers of new customers.
Joe Pack, Head of CRM at Space NK identified that this arrangement wasn’t meeting the needs of the business.
Asking questions of your data
As Space NK developed more sophisticated ambitions for its marketing function, Pack wanted answers from the analysis in hours rather than weeks. When his marketing team had questions about the data, the process for getting answers was very rigid.
For example, they would develop a set of questions and send them to the agency, which would then supply a quote for the cost and time it would take to answers to those questions. In many cases that resulted in the marketing team having to reduce the number of questions to fit budget constraints. A few weeks later, Space NK would receive the answers back. This extended turnaround time was becoming untenable.
Further frustrations arose with the limited nature of the query process. When querying data, inevitably one question leads to another. Working with a third party agency there is little flexibility to drill down into the numbers and explore the data. In addition, Space NK encountered reconciliation issues with data shared with the agency, and as a result could not entirely trust the quality and accuracy of the data.
The beauty of customer insight
Space NK required a central hub for customer data that would allow the insights team to experiment with data analysis. “We needed to report on the key metrics that drive the business,” says Pack. “These include cost per acquisition, retention rates, spend per customer, lifetime value and trends in orders per customer, average selling price and items per order.”
As well as more flexibility to derive analysis and insight from data, Space NK was looking to create an attribution model that would allow the company to source additional external data sources to enrich the overall view of the customer.
Space NK turned to BlueVenn to transform its marketing analytics. Pack had previously worked with BlueVenn, so knew what could be achieved; however this didn’t stop him doing his due diligence. “We did evaluate the market for a solution, but I came back to BlueVenn. I had worked successfully with them before and we did not feel that an SPSS or an SDL solution offered any more than BlueVenn, even though they have a higher price point.”
He also considered FastStats but felt that the supplier’s prime focus was on working with agencies: “We weren’t looking to get into bed with another agency to manage our data for us. What we were looking for was a direct relationship with the technology supplier, not least because the ability to throw data at the back end and play with it is enormously valuable. It is actually one of the key benefits of partnering with BlueVenn.”
Data visibility drives bottom line benefits
Now Space NK has an in-house marketing analytics solution using BlueVenn’s blueANALYZER to help it analyse customer data and build customer knowledge. It has also enabled the insight team to create and distribute reports, and use the campaigner functionality to clean and deduplicate lists.
Space NK now has much more visibility of the data processes and is gaining vital business insight. With the ability to analyse data onsite, powered by blueANALYZER, the marketing team has been able to add 45,000 email addresses back into its marketing file that it had been inadvertently omitting during mailing campaigns. This is a high value group of customers so this previously unachievable action is likely to translate into significant bottom line benefits.
In the months following the implementation Space NK has been busy incorporating extra data sources into the blueANALYZER solution. “We’ve been pulling in data sources left and right. For example, data from our email service provider, data from web analytics for the production of the attribution model and integrating competition entrants who were held on a different database,” says Pack.
He adds, “The attribution model allows us to make a much more informed decision about where our acquisition spend should go. When a new customer arrives at the website, it is possible to say exactly where they came from and how much it cost to acquire them. That allows us to make much better decisions about further investment.”
24 hour marketing makeover
BlueVenn’s blueANALYZER is powering a hugely accelerated speed to market, with Space NK achieving in hours activity what previously took weeks. Pack says, “If we want to produce a specific mailing campaign, for example sending out sample items to our best customers who have bought similar things before, that would’ve been a two-week process, to brief the agency, get the list created and then actually use it. Now we can turn it around in a day. We can go from concept to action in 24 hours.”