Marketers can drive incremental revenue by fixing what is already in place and ‘pick up the fruit on the ground,’ said Lowe’s CMO Jennifer Wilson.
Jennifer Wilson, chief marketing officer at Lowe’s, is digging into loyalty and value.
The home improvement chain executive detailed ways, such as its new loyalty program and children’s classes, that the marketing team is driving incremental revenue for the brand at the Shoptalk conference in Chicago in October.
In a recent study Lowe’s conducted, it found that 65% of home improvement shoppers are not loyal to any particular home improvement brand. And that’s a big opportunity for Lowe’s, Wilson said.
“We want people to drive the extra five miles or the extra 10 minutes past our competitors to seek out Lowe’s,” Wilson said.
Lowe’s showcases its value with loyalty program perks
When it thought about ways to get these shoppers to choose Lowe’s and spend more with the brand, it knew it had to focus on how shoppers view value at Lowe’s.
“Lowe’s is viewed as wider and brighter aisles and sometimes with that comes a perception that we maybe aren’t the best value,” she said.
To that end, Lowe’s debuted a loyalty program in Q1 2024, called MyLowe’s Rewards. The free program offers free shipping, gifts and allows shoppers to accumulate points to receive cash back. The goal is to have this foster incremental purchases. For example, Lowe’s offered a free flower in the spring, with the hope that while in store picking it up, shoppers would add more items to their cart, Wilson said.
“It’s about driving consumer preference because we are in that duopoly,” she said “It’s about driving loyalty and building loyal behavior amongst our existing customer base, but also finding new audiences so we can get more ingrained and the things that matter most to them.”
Using data to cater to shoppers
The loyalty program also gives Lowe’s more insights into shopping patterns to then offer more personalized offers to shoppers.
These shopping patterns feed first-party data at Lowe’s, which advertisers can gain access to through its retail media network.
“Our advertisers have access to these rich audiences so that we can very clearly understand just where these consumers are on their home improvement journey and be able to target them with the right message at the right time,” Wilson said.
Lowe’s targets young shoppers to drive loyalty
The home improvement chain also wants to make sure its products and marketing initiates resonate with younger audiences, such as millennial and Gen Z shoppers. For example, trending products like mini toolboxes, mini blue buckets and seasonal decor like giant Halloween skeletons are good content to feature in social media to grab their attention while scrolling through their feed.
After shopper feedback, Lowe’s also added free workshops for children as a way to bring millennials and Gen Z shoppers into stores. These programs sell out, Wilson said.
Another way to cater to millennials is through their pets, and Lowe’s reassorted its stores to more prominently feature pet food, she said.
Overall, it is the marketing team’s job to drive revenue for the company, Wilson said. She encouraged all marketers to think about driving incrementality through personalization and an enhanced customer experience. Often, it’s not about creating a new customer experience, but fixing what is already “sitting right in your lap,” she said.
“Imagine what you could drive in terms of additional revenue if you’ve just fixed three of the seven steps along that journey,” Wilson said. “And that’s what we’re really after is not just creating new experiences but fixing existing experiences so that we can go pick up the fruit on the ground as it relates to incremental revenue.”
In its second fiscal quarter 2024 ended Aug. 2, Lowe’s reported total sales decreased 5.6% year over year to $23.6 billion, compared to $25.0 billion, and comparable sales down 5.1% year over year.
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