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Narellan Pools, a small Australian-based swimming pool builder, successfully leveraged big data to revamp its marketing strategy and increase sales. Between 2007 and 2013, the company faced a 25% drop in revenue.
To reverse this trend, Narellan partnered with Affinity, a marketing services firm, and developed a digitally-led marketing strategy on a budget of AUD 495,000 (USD $321,750). Affinity’s team analyzed sales data, revealing that lead conversion rates sometimes surged to 800% of the norm. They compiled seven terabytes of data, combining Narellan’s proprietary and third-party data.
After exhaustive analysis, they found a pivotal customer insight: the significant increase in conversion from interest to purchase, driven by temperature relative to the recent past.
Acting on this insight, Narellan launched an online campaign, turned on when the current temperature exceeded the mean rolling monthly average for two consecutive days in a specific region. The campaign struck a chord with potential customers, evoking the image of the first dive into one’s pool.
Source: “How a small company used big data to increase its sales” by Dominique Turpin, imd.org
Narellan Pools’ data-driven campaign yielded impressive results. In 2015, leads increased by 11%, and sales surged by 23% compared to the previous year. Remarkably, the company achieved these results while only spending 70% of the allocated AUD 495,000 (USD $321,750) media budget. The return on marketing expenditure was an astonishing AUD 54 (USD $35.10) for every dollar spent. By leveraging data and analytics, Narellan Pools reversed declining sales, showcasing how intelligent analysis can yield valuable customer insights and drive effective marketing strategies.
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