
Webinar recap: Driving shopping frequency and revenue growth
We recently hosted a panel discussion with distinguished industry experts who shared their valuable perspectives on managing frequency and its impact on business growth. Here are our key takeaways.
The Speakers
- Jo Thomas, Head of Loyalty and CRM at Matches. Jo’s extensive background encompasses both client-side and agency experience, leading customer and data strategy teams for renowned brands like Doctor Stern, Jo Malone, Skype, and British Gas.
- Grant Bailey, Head of CRM & Customer Marketing at Boots. Grant brings a wealth of experience in managing CRM teams, having worked with prominent brands such as Post Office, LastMinute, Betfair, and Argos.
- Ian Drake, Head of CRM and Loyalty at Domino’s. Ian’s impressive track record includes leading CRM and customer marketing and analytics teams at notable brands like eBay, British Airways, and Sky Bet and Gaming.
Key Highlights
- Understanding the importance of managing frequency: Grant began by discussing two key aspects of frequency management — customer relationships and sales. He underlined that balancing fostering repeat purchases and overall revenue growth is crucial for businesses.
- Challenges faced by CRM teams: Jo shed light on the pressure faced by CRM teams in today’s dynamic market conditions, where customers often switch between brands. She emphasised the correlation between frequency and lifetime value, emphasising the need to focus not only on repeat purchases but also on cultivating behaviours that lead to more robust engagement and deeper customer relationships.
- A collective effort for frequency: It’s important to remember that frequency as a key performance indicator (KPI) is not solely the responsibility of CRM teams. The entire business should work together to deliver a positive customer experience, taking factors like product availability and overall satisfaction into account. While CRM teams play a crucial role in influencing repeat purchase behaviour, it takes a collective effort to enhance customer satisfaction.
- Frequency is multi-dimensional: Ian cautioned against fixating on a single metric, especially over short time periods. He reminded us that high-frequency customers may only sometimes be the most valuable ones. Instead, it’s essential to delve deeper into the nuances of customer behaviour to gain a comprehensive understanding. By doing so, we can create strategies that truly resonate with customers.
Strategies to Drive Frequency
To effectively understand and drive frequency, the panellists discussed the following strategies:
- Focus on customer segments: Marketers should dive deep into customer segment analytics instead of analysing data at a broad level. Tailoring strategies to meet different customer groups’ specific needs and preferences helps drive the desired behaviours.
- Understand customer motivations: Digging deeper into the “why” behind customer behaviour is crucial. By understanding their motivations and addressing challenges in their lives, marketers can craft messages and strategies that resonate, ultimately influencing repeat purchases.
- Create cohorts and personalised communication: Categorising customers into cohorts based on their behaviours allows for more targeted and personalised communication. By understanding existing and desired behaviours, marketers can utilise triggers and levers to influence customer actions effectively.
- Build a Single Customer View: Having a comprehensive view of customers helps track their behaviour across channels and allows marketers to measure the effectiveness of their actions.
- Layer insights on top of frequency to drive real value: Add layers of nuance to your analysis. For example, the Recency, Frequency, Value (RFV) model can provide a foundation for understanding customer journeys, but it’s crucial to go beyond baseline metrics and consider factors like purchase history, communication preferences, and acquisition channels. We can better understand customer behaviour by incorporating more sophisticated techniques alongside baseline metrics.
Turning Insights Into Action
Now that we’ve gained valuable insights through the lens of frequency…
· How can we effectively bring these insights to life?
· What tools and processes can help us in this journey?
- Start simple: Prioritise utilising existing tools effectively before adding new ones. Focus on foundational elements and a strong marketing strategy rather than relying solely on advanced tools.
- Get your data in order: Access to consolidated data and a single source of truth about the customer is essential for effective marketing technology utilisation.
- Connect channel experiences: Explore channels beyond CRM and email to reach customers. Consider customer convenience and preferences when choosing channels. Identify and prioritise valuable customers based on recency and frequency for tailored efforts.
- Deliver personalisation at scale: Combine technology and AI solutions with emotional intelligence and differentiation to deliver relevance with our campaigns. Infuse human understanding and creativity for truly personalised experiences.
- Gain buy-in from the broader business: Transparently communicate the importance of your KPIs, the impact of CRM initiatives and your short-term and long-term goals. Further, foster analytical literacy within the organisation to gain support and resources.
This process can feel like a bit project, so start by focusing on high-yield data points that demonstrate intent, then tailor communications based on this data. Apply the shared insights and strategies to create personalised and engaging experiences, which ultimately drive frequency and long-term business growth.
Ready to implement these strategies but not sure where to start? We can help.
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