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Toolstation Uncovers Significant Revenue Opportunity With AI-Powered Customer Segmentation

Industry: Retail

Partner: HyperFinity

Toolstation is a leading tools and building supplies retailer serving over 25,000 products to electricians, plumbers, builders, and DIY enthusiasts across Europe. With rapid expansion across four countries, they needed to transform their marketing approach to better understand and serve their diverse customer base.

Products

Email Marketing

Build Segments & Audiences

SMS and Messaging

Bloomreach Engagement

Omnichannel Orchestration

Challenge

Toolstation’s rapid growth created an opportunity to optimize marketing effectiveness and customer loyalty across their diverse base of tradespeople and DIY enthusiasts. Without deeper customer insights, they were missing significant revenue opportunities.

Generic marketing approach = missed personalization opportunities. One-size-fits-all communications failed to resonate with different customer segments from professional electricians to weekend DIYers.
Limited customer understanding = ineffective targeting. Toolstation wanted to differentiate between a purchase for a decorating DIY project versus a larger trade workflow.

No marketing measurement framework = unclear ROI. Leadership was keen to measure the effectiveness of marketing activities and forecast future sales potential.

Solution

Toolstation partnered with Bloomreach and HyperFinity to create a comprehensive, AI-powered customer segmentation strategy that transforms raw data into personalized marketing actions.

AI-powered customer intelligence = deeper behavioral insights. HyperFinity analyzed active customers by combining loyalty segments (frequent high spenders, regular low spenders, single shoppers) with behavioral segments based on trade type (plumbers, builders, painters/decorators).

Seamless data-to-action workflow = personalized communications at scale. Customer insights from HyperFinity flow directly into Bloomreach Engagement for targeted marketing across email, SMS, web, and mobile channels.

Real-time performance tracking = measurable marketing impact. A custom sales performance drivers dashboard allows Toolstation to measure marketing initiative impact by examining monthly sales trends and identifying growth-driving customer behaviors.

Here’s how it worked:

Data analysis → HyperFinity’s AI platform segments customers by loyalty level and behavioral patterns
Insight generation → HyperFinity’s software identifies purchase intent (DIY decorating project vs. professional trade workflow)
Audience creation → HyperFinity builds intelligent, tailored audiences based on combined loyalty and behavioral data
Personalized activation → Bloomreach Engagement delivers targeted communications across all channels
Performance measurement → HyperFinity’s sales drivers dashboard tracks impact and enables real-time optimization

The combination of Bloomreach and HyperFinity has totally transformed our marketing and loyalty strategy. HyperFinity’s decision intelligence platform generates powerful customer insights and segmentation that we can immediately take action through Bloomreach Engagement’s capabilities.

Chris Other

Customer, Marketing & Digital Director, Toolstation

Results

The data-driven approach delivered immediate insights into untapped revenue opportunities while establishing a framework for ongoing optimization.

Significant revenue opportunity identified for the following year through ‘size of the prize’ modeling
Enhanced customer retention strategies for highly loyal trade customers with measurable impact projections
Increased spending activation from less frequent shoppers through targeted engagement campaigns
Real-time decision-making capability via sales performance drivers dashboard for ongoing marketing evaluation
Scalable personalization framework moving from 10s of product/offer combinations to thousands of variants across all channels

Toolstation continues expanding their customer loyalty strategy with planned personalized product recommendations, precision targeting for loyalty programs, and lapsed customer re-engagement models.

“This seamless flow from data-driven insights to personalized activation has significantly advanced our commercial decision-making, helping us build a truly customer-led proposition that drives results,” said Other.

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