Using big data for small business wins: I Love Linen's ecommerce story

We find out how one small Australian retailer is using customer analytics and insights to drive a new level of engagement across its online store

The term ‘big data’ conjures ideas of big data sets and even bigger budgets. But as one ecommerce entrepreneur has discovered, those same concepts can deliver big results even for a small business.

Lauren Roe cut her teeth working as a consultant in a customer analytics program for one of the big four banks. Her parents, however, had a background in retailing with the manchester retail business, I Love Linen, which launched in 1996 and grew to three stores in Brisbane.

When her father fell ill, putting a strain on both the family and the business, Roe trimmed back her hours with the bank to care for her father as well as help her mother with behind-the-scenes business activities. This led to her setting up I Love Linen’s online shop two years ago. Roe soon saw the opportunity to begin employing the same processes she was exposed to every day with the bank to online linen retailing.

“The program [at the bank] was all about having a better understanding of customers to service them effectively, based on time and product,” Roe tells CMO. “That’s a simple philosophy that any business should be using, big or small.”

It was a stint of maternity leave which then gave her the additional time she needed to put that philosophy into action for I Love Linen.

“You’ve got a pretty rich source of insights at your fingertips with an online business, because it is much easier to access purchase frequency of popular products,” Roe says.

Her use of analytics concepts to date has been simple but powerful, with purchasing behaviour used to aggregate customers into small groups who then receive targeted promotions for other relevant products.

“For example, if people have invested in pillows and quilts, they may not have tried any of the sheet sets and quilt covers that would complement their other purchases,” Roe says. “So there is a cross-sell opportunity. You isolate people who have purchased hotel bedding and send them an electronic direct mail to let them know we stock hotel-quality bed linen.

“It is just looking at purchase history, rather than just sending a blanket email that everyone gets. And the click through rate is a lot stronger when it’s tailored. And it shouldn’t be a surprise, because people respond better to information when they believe the sender has considered them before sending it.”

The I Love Linen website is based on the BigCommerce platform, which gives Roe sufficient capabilities to download sales data and cross reference it with customer behaviour. While she concedes her processes are not rocket science, she is also aware of only a small number of small business taking these simple steps.

“Maybe it’s a lack of time, or they don’t know how to cut the data,” Roe says. “For any small business that is online, where they have access to all of this sales data, you can ask yourself where the customer is going to be next on their purchasing journey. And they might not have even been aware that you sell other products.”

Read more: More marketing emails reaching Australian inboxes

Roe is an avid user of Google Analytics to monitor online page views, to compare visitor views to actual purchases, and fine tune her offer accordingly. She also retargets anonymous customers to ensure items consumers have looked at on her site remain front-of-mind even after they leave the site.

All up, Roe believes the targeted email activity only absorbs an additional five hours over each electronic direct mail cycle. “You just have to start to read the data and see what comes up,” she says. “You can find all of these interesting tidbits of information, which can lead to better opportunities for you and the customer as well.

Roe says the online site is taking as much revenue as any one of the three offline stores, despite being in operation for less than three years.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Natural born leaders

Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.

Jean-Luc Ambrosi

Author, marketer

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...

Digital Marketing Course in Ja

Why RMIT is partnering with Adobe for digital marketing learning

Read more

If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...

aaron

Analysis: Gillette's latest ad only proves why brands standing for positive change is vital

Read more

In 2019 Augmented Reality plays a vital role in marketing campaign its new way to engaged user with digital content. Try Augmented Realit...

hill william

Predictions: 9 digital marketing trends for 2019

Read more

Latest Podcast

More podcasts

Sign in