True Value takes aim at customers
Chicago – Television commercials are out. Digital marketing to a targeted audience – or even a specific person -- is in. That’s one way to look at the major new advertising strategy taking place at True Value Company.
The Chicago-based co-op revealed its new-approach to marketing here during the General Session of its Fall Reunion. Senior VP of Marketing David Elliott is leading the charge, and he’s armed with some statistics that point to the need to adjust to dramatic societal changes.
For instance: there are tens of millions of people in the U.S. that have never had a relationship with a cable company. Plus, there are another 22 million people this year who cut their cord for cable or pay TV.
At the same time, people are spending an average of three hours a day on their mobile devices. And consumers of all generations have their purchase decisions influenced by at least one digital touch point.
It’s no wonder that Elliott, a New Zealander who worked with True Value CEO John Hartmann at Kiwi hardware co-op Mitre 10, believes that television is becoming increasingly less effective as a marketing medium. And it’s no wonder he’s a big believer in the power of digital tools.
“We’re shifting our marketing spend to a more localized and a more digital approach,” he told True Value dealers during the co-op’s General Session here. “It will now be possible to customize promotions to greatly relevant products and components.”
He added: “Digital means we can reach an individual, rather than segments of markets by geography or age or income,” he said. “That’s exciting, and that’s a big change.”
Another big change, and one that generated spontaneous applause at the General Session, was the announcement that the co-op plans to eliminate its national ad fees, which amounted to about 1.4% of each retailer’s warehouse purchases.
The co-op is describing its 2018 marketing plan as “Tools for Transformation.” It’s also described as a “hyper local, digital driven tools will put the pieces in place for you to reach more customers with exactly what they’re looking for.”
Among those local channels of getting the message out are broadsheets, paid search, social media, e-mail, online advertising, point-of-purchase displays, direct mail and mobile push.
To effectively market to consumers, the co-op will need to identify customers across their various digital devices, not by name but by behavior. A key to that effort is the co-op’s True Value Rewards card, he said.
The new strategy will kick off in April. “I think it’s an ongoing evolution of marketing to be more responsive to customers,” Elliott said. “It’s a far more relevant approach that is customizable and responsive.”