Loyalty cards reveal 63% of Home Centre sales are touched by digital

Tahani Karrar November 2018

Shukran loyalty program and Google Analytics data reveal more than half of Home Centre sales are influenced by digital.

About
Landmark Group is one of the largest omnichannel retailers in the UAE and KSA.
Home Centre is a Landmark Group home furnishing retail brand with offline stores.
Goals
To quantify the effect of digital marketing on offline sales.
Boost Home Centre’s online presence and performance.
Approach
Connect online activity with offline purchase data through the group's loyalty program using Google Analytics.
Work with Google and Forward3D to provide guidance and consultation
Results
63% of all Home Centre sales are online or influenced by online.
Home Centre customers who conducted online research before visiting an offline store had a 39% higher Average Order Value (AOV) compared to customers who didn’t.
Google's Return On Ad Spend (ROAS) saw a 96 p.p increase when offline revenue was included.
Leveraging Google Cloud Platform cut technical infrastructure costs to a few cents per month.

Leading omnichannel retailer Landmark Group, in partnership with digital marketing agency Forward3D and Google, discovered at least 63% of its Home Centre sales are online or influenced by digital.

Landmark, which holds a portfolio of 12 retail brands including Homecentre, Babyshop and Splash, enjoys an online and offline presence through its websites and numerous brick-and-mortar stores in the United Arab Emirates and Saudi Arabia.

By focussing on its Home Centre brand, using its Shukran loyalty card program and Google Analytics, Landmark was able to connect the number of online visits by Shukran cardholders to its website and the number of offline purchases completed by the same cardholders.

The project included several stakeholders, including Landmark’s IT and Marketing departments who were responsible for collecting data and building the technological infrastructure using Google Cloud Platform.

“The connection was established by sending Shukran's offline transactions to Google Analytics,” said Farid Gharazeddine, Analytical Consultant at Google.

The Shukran loyalty program operates across 9 countries and has a 19 million member base contributing to over 50% of the groups sales.

“The connection was established by sending Shukran's offline transactions to Google Analytics, which was able to determine whether that member had previously visited the brand's website along with what they did during that visit,” said Farid Gharazeddine, Analytical Consultant at Google.

The results showed that Home Centre customers who conducted online research before visiting an offline store had a 39% higher Average Order Value (AOV) compared to customers who didn’t do online research.

Furthermore, Google's Return On Ad Spend (ROAS) saw a 96 p.p increase when offline revenue was included in the calculation.

The process by which offline transactions are matched with online user behavior

Landmark’s Head of Group Digital Marketing Bilal Adham said the company has shifted its media efforts towards digital marketing and is revisiting how its employees and operations can compliment digital.

“Online is now seen as a hub linking everything together for an improved customer experience, this has impacted our marketing mix and our approach to campaigns,” Adham said.

Moving forward, Landmark is planning to scale this exercise to its other e-commerce brands and monitor the impact of digital on other offline businesses.

This will be done by importing offline Google Analytics transactions into Google Ads as conversions and leveraging Smart Bidding - a bid strategy that uses machine learning to optimize for conversions or conversion value in each and every auction.

“Google Ads' machine learning algorithms will be able to increase bids for users they predict are more likely to purchase offline; a truly omnichannel approach to marketing,” said Gharazeddine.