34 CATEGORY 20: Best commercially successful campaign
Sponsored by
WINNER:Magnet Trade AGENCY:REFINERY CAMPAIGN:‘MAKING IT MAGNET MAKES YOU MORE’
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agnet Trade supplies kitchens and joinery to the building trade via 200 branches and is the B2B arm of the Magnet kitchen retail brand. It sells solely to trade professionals, who are in turn hired by home-owners to complete property renovation work. Magnet Trade is second in the market to Howdens, the clear market leader with more than twice as many outlets.
In October 2009, the UK building
industry experienced its 19th successive monthly contraction in activity; a market in which many of the main suppliers suffered sales declines.
Analysis of historical sales indicated that a small number of large value orders form a significant proportion of Magnet’s total sales; it was therefore decided to focus the campaign on stimulating purchases in excess of £1500. Alongside this objective Magnet Trade was aiming to increase the number of builders signing up for a trade account and to build web traffic and harvest email addresses and mobile numbers to enable multi-channel CRM activity.
The promotion focused upon the idea that ‘Making it Magnet makes you more’, i.e. if the builder chooses Magnet kitchens (over competitive products) there are clear financial and business benefits – more orders, more profits and more customer
satisfaction, as well as greater rewards. In order to gain maximum ROI and help switch sales from the competition, it was decided to launch the promotion a month ahead of its main rival’s promotional activity. Campaign planning began in May 2009, it was launched four months later on September 2 2009 and closed on October 31 2009. During this time Magnet was looking to reach small local building firms – typically one or two- person businesses. It saw them to be traders who will hold accounts with both Magnet and Howdens. Value for money and getting the best deal on products is of great importance to this audience in order to ensure greater profitability for their business, this can result in a lot of brand switching among Magnet Trade and their competitors.
In order to participate in the campaign, customers were directed to the promotional website to pre-register. If they made a
HIGHLY COMMENDED: Build Center AGENCY:SNOWBALL CAMPAIGN:‘SPEND & SAVE’
uild Center, part of the Wolseley Group, is a leading national builder’s merchant with over 150 branches supplying building materials to the trade. The ‘Spend and save’ campaign aimed to bring the brand a greater ‘share of wallet’ so that customers buying a single item, e.g. bricks, would then go on to buy cement. The brand wanted existing customers to spend more with them without impacting on margins, so offering discounts on existing business to encourage cross-selling was not an option.
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The campaign was targeted specifically at builders, landscape gardeners and joiners. Through careful analysis of Build Center’s transactional database, Snowball created precisely targeted offers on products that customers were not buying but needed to complete their jobs and also upsell offers in
the catagories they were buying. The offer was personalised to every customer as they each buy different volumes of materials and receive different terms and prices. Snowball analysed each customer – looking at the categories they bought in, the frequency of their transactions and how the value of their transactions compared to averages in each category. Snowball then cross-referenced purchases and used external data sources to work out which subset of the trade they might work in. The agency devised a mailable voucher booklet with a personalised front cover depending on whether the recipient was a joiner, builder or landscaper. Inside the cover was a message from the local manager with a map and address of their nearest branch. The vouchers were bespoke to the recipient, based on buying patterns
B2B Marketing Awards 2010 -
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qualifying purchase of £1500 or more they were then emailed the campaign incentive – a promotional flight voucher to Europe. A range of communications channels were used to attract both existing customers to spend and to encourage potential customers to open an account. These included: a banner on the homepage linking to a promotional landing page, SMS reminders to register, a direct mail piece to the customer base and two radio commercials on TalkSport – identified as one of the most popular media channels for the target audience via research. The campaign exceeded all targets. Matt Bunnell, business development and research manager at Magnet Trade said, “‘Making it Magnet makes you more’ was the flagship promotional activity for the brand in 2009, leading to a significant and measurable commercial benefit, the results of which are still felt throughout the business today. The fact that we were able to achieve such impressive results in a highly competitive but flat market is testament to the impact that the activity had, not only among our existing customer base but also on new account recruitment and conversion. On top of this, Magnet Trade has accumulated a high quality segmentable database who we are able to retarget and communicate to, in order to further cement the brand relationship.”
and likely predicted requirements. The aim was that Build Center would up-sell customers to a new premium product. So far, three campaigns have been run and the ROI is 20:1. Andrew Cushing, head of marketing at Wolseley said, “‘Spend and save’ has delivered a fantastic ROI and contributed significantly to the turnaround of the business. Our branch managers have confirmed that this is far superior to marketing campaigns they have ever seen.”
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