Case Studies

The Challenge

John Lewis is one of the most recognizable department store brand names in the UK and online. The store offers fashion, homeware, sports and electrical items to its customers.

John Lewis is well-known for its high-profile marketing and communications campaigns, with its annual Christmas TV advertisements being the most notable. While the company understood the power of the creative story, it wanted to improve its understanding of how these campaigns impacted the brand and customer behaviors, in addition to external factors like competitor activity.

“We wanted to understand which of our various marketing efforts were effective sales drivers,” said Chris Bates, Head of Customer Marketing, John Lewis. “By getting a better idea of how effective our campaigns have been, we could then start to understand how they affected our brand, our sales in-store and online.”

In addition, “We realized we needed a solution that could help us deliver more compelling campaigns to our customers. … As a leader in retail, we weren’t simply looking for a service that could generate statistics. We were looking to form a long-term partnership with a market-leading firm that could ensure we received the best possible insight into our different sales channels.”

The Neustar Solution

After considering various solutions, John Lewis found that Neustar MarketShare, a global leader in advanced marketing analytics, was the most suitable company to offer a holistic solution and advise them on how various marketing activities interacted alongside its different product categories. This would allow John Lewis to adjust its marketing spend to help maximize marketing ROI.

Neustar MarketShare is a leader in sophisticated marketing analytics and multi-touch attribution, utilizing sales, macroeconomic factors, and customer data to quantify the sales impact for marketing spend. Having initially engaged Neustar MarketShare to support its marketing efficiency efforts and help gain insights into its customers’ journeys, John Lewis soon realized it could extract even further value from the solution.

“We started by using the solution to analyze the impact of our campaigns during major calendar events such as Black Friday,” Bates said. “But the Neustar MarketShare team highlighted that we could further develop a complete and more robust view of other internal and external influences such as competitor activity, the economy and the weather.”

As part of the rollout, John Lewis decided to utilize Neustar MarketShare Strategy®, an application designed to enable it to continuously allocate resources and optimize its marketing spend without requiring additional investments in analytics or ad-hoc consultancy.

The Outcome

The Neustar MarketShare service has enabled the marketing teams at John Lewis to successfully test out budget scenarios, better plan for immediate tactical challenges in order to understand, and optimize its range of marketing investments in today’s complex omnichannel environment.

The company is now able to underscore its campaigns, particularly its award-winning TV advertisements, with deep analytics which have revealed revenue of up to £8 for every marketing pound spent. The partnership has also enabled John Lewis to understand the level to which marketing is a key driver for revenue, having contributed 24% of sales in 2014 alone. Through these detailed insights, John Lewis can see the value of its marketing investment and grow its sales revenue.

“From the beginning, Neustar MarketShare has invested in John Lewis to not only help us optimize our marketing spend, but also enhance data-driven decision-making within the company,” Bates said. “Thanks to this partnership, we can now see how customers are interacting with the John Lewis brand, from using the website as a research tool, to the power of omnichannel campaigns on our different categories and customer segments.”