Scotch & Soda personalises ads, achieving 5x incremental ROI

Scotch & Soda’s transition from one-off ad campaigns to data-driven, personalised and always-on-media has generated revenue growth and increased customer lifetime value.

Scotch & Soda, a premium omni-channel fashion retailer, has boosted its incremental return on ad spend to £5.50 for every £1 invested (5.5:1), thanks to a major overhaul in its digital advertising strategy.

The retailer is stocked in 8,000 outlets globally and worn by famous actors and musicians such as Eddie Redmayne and Justin Timberlake, but the team knew that there was much more they could do to keep the brand top of mind amongst unpredictable fashion consumers. As part of a strategic review, the team adopted Conversant’s CRM Media solution, which enabled one-to-one communications through highly personalised messages.

“We try to build memory structures in everything we do - everything should be aligned. Conversant allowed us to create individual communication stories on a continuous basis efficiently - right person, right product and right look and feel for Scotch & Soda,” explains the fashion brand’s Media Manager, Leon Wharton.

“The trends that govern the fashion industry mean many advertising campaigns only penetrate consumers’ short-term memory, which means the brand may not be recalled at a later date. Scotch & Soda’s new strategy enables them to cement their place in customer’ long-term memory, as the go-to for premium, stylish clothing and accessories,” explains Elliott Clayton, Senior Vice President at Conversant.

“The results achieved so far clearly show the personalisation approach is working for Scotch & Soda, and many other companies across industry already benefit from a similar strategy.”

In its most recent review, the Scotch & Soda team examined incremental ROI – that is, returns compared to baseline brand performance without advertising. When compared to this group, Scotch & Soda generated sales 25 percent more often when using Conversant’s personalisation technology, while also increasing the lifetime value of customers that it messaged by 23 percent. The solution tracks over 120 million online and offline daily purchases, building profiles across more than 7,000 dimensions, enabling personalised conversations with Scotch & Soda’s customers across multiple devices.

“Conversant is driving new incremental demand from our mid-funnel, and I don’t think we serviced that properly before, or that the tools to do that existed previously,” continued Wharton.

A major boon for Wharton and his team is the added benefit of seeing how advertising efforts contribute to Scotch & Soda’s overall media mix, as well as learning more about its customers, their buying habits and advertising preferences.

"The audience insights we get are really helpful. Not only are we delivering measurable revenue into the business, but we’re able to better understand our audience and leverage that internally - for example, the data helps us build a case for creative strategies across other media."

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