Ralph Lauren turned to data to learn more about its customers and wean them off the discount diet.
Fashion brand Ralph Lauren’s claim that it creates dreams, not clothes, was in danger of being eclipsed by a lack of customer understanding.
The brand‘s margins and image were undermined by the constant discounts used to drive sales. Communication with customers was focused not on them, but on the need to meet weekly sales targets.
To remedy the situation, the brand partnered with Code Worldwide and RAPP to transform the business into a data-driven organization to rekindle the love for Ralph Lauren and revitalize the brand through relevance, not discounts. A key goal of the scheme was to help Ralph Lauren better understand its customers.
However, the project was not without its challenges, including the need to overcome issues such as historical data that was stored in different repositories and segmented only by gender.
This was accomplished by creating a collaborative leadership team at the senior management level that helped the brand change its approach to data collection and use. The main goal was to replace discounts with relevancy by creating hyper-personalized customer journeys.
Applying a so-called 4D approach to segmentation, the focus was on the relative value of customers. Each customer was assigned a channel engagement score and a discount elasticity score, measuring what level of discounting would drive behavior at the individual level.
The results were clear, earning Ralph Lauren the award for best use of segmentation at the Marketing Week Masters Awards in 2020.