Meat eaters superior in Woolies' eyes
Lovers of red meat make safer insurance customers than those fond of a high-carb diets Woolworths has found through its big data work, which has also helped the insurance brand avoid "big splashy" TV ads.
By layering Woolworths Everyday Rewards and the Frequent Shopper Club databases with its insurers car crash database the retail giant has been able to support its two year old product without a large above-the-line spend.
“You see that customers who actually drink lots of milk and eat lots of red meat, so that is what’s in their shopping basket, are very very very very good car insurance risks,” Penny Winn, Woolworths Limited's multi-channel and logistics director, said.
“Versus those who eat lots of pasta and rice, fill their cars with petrol at night and drink spirits."
Winn, who was at Hobart’s MONA Museum to present at Southern Cross Austereo’s Engage Live, said the overlaying of data sets allowed Woolworths to avoid “big splashy ad campaigns on television” and bad insurance risks by going direct to consumers.
“What that means is we’re able to tailor an insurance offer that targets those really good insurance risk customers and give them a really good deal via direct versus above-the-line. It helps to avoid the bad insurance risks.”
“The great use of data enables you to make better decisions to then serve your customers better and tailor offers, I can’t tell you how significant that is.”
“Deep dives” into its data sets and the merging of databases via data firm Quantium, which Woolworths acquired a 50% stake of in May, has allowed Woolworths to pinpoint who their loyal and promiscuous shoppers are, what they are most likely to buy and tailor offers to them.
For example, only 7% of Big W’s customers are loyal to the store – but they represent 21% of spend – they are more likely to browse catalogues, be antique collectors and car enthusiasts.
In comparison, those that shop at more than one discount department store are likely to be after sports goods and baby wear.
The power has been transferred from manufacturer, to retailer and is now in the hands of consumers. According to Winn the shift is irreversible.
“Customers are in control and all of us need to fight harder for customers loyalty. At Woolies we are constantly looking at how we better service our customers.
“While everyone says ‘oh well, Woolies and Coles have got massive market shares’, you know, only 7% of our customers are totally loyal to Woolworths 93% of our customers shop elsewhere as well.”
To win loyalty Woolworths is focused on its loyalty programs, personalised communications and offering a multichannel business.
With the Everyday Rewards program Winn said they are focusing on both the rational and emotional side of their customers.
“Engage with your customer, give them reasons to shop. It’s not just appealing to the purse strings but also to their heart strings.” To do this Winn says the program needs to balance the discounts it offers on petrol and other financial incentives with invites to Carols in the Domain, birthday and Christmas cards.
Making sure the offers delivered to individual consumers are relevant is also key. “As you are walking by the Tim Tam shelf if you are actually on a diet you won’t get the special offer for the Tim Tams – that is not quite here yet, but watch this space.”
A multichannel business, where consumers can choose to either shop in store or online is another driver of loyalty, according to Winn.
“When a customer shops both online and in the store and we get that really engaged and sticky relations we get a much more engaged shopper and we get a bigger share of wallet,” she said.
“That is what it’s all about.”
Please login with linkedin to comment
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.