In their recently released Emotional Loyalty Report, Inte Q uncovers insights into what makes top home improvement brands (Lowe’s and Home Depot) successful and what factors contribute to consumers’ ‘love’ for these brands.
This report uses Inte Q’s proprietary Customer Love Score® emotional, social, and brand health data to accurately measure the emotional connection customers have with a brand and provide industry insights into refining marketing strategies and strengthening customer loyalty.
‘Customer Love®‘ in the Home Improvement Industry
As the DIY trend becomes more popular, the home improvement industry has grown.
The Home Improvement industry is a mature retail industry largely characterized by a high degree of market concentration and
consistent product lines, leading to high levels of price competition, particularly between the two major players in this space: Lowe’s Companies Inc. and The Home Depot Inc.
As the DIY (Do-It-Yourself) trend becomes more popular (and Pinterest inspires a myriad of home makeover projects), the Home Improvement industry has grown. Much of this growth can be attributed to older homeowners with record amounts of home equity and an expressed desire to remodel rather than relocate.
The DIY-based remodeling market share is expected to surpass $680 BILLION in 2025.
The main driver of this DIY trend is the affordability aspect, which allows individuals to purchase home improvement kits as opposed to hiring professionals every time installation or improvement is needed.
Revenue Growth
HOME DEPOT +5.1%
As reported Q3, 2018
Home Depot added decorative home furnishings to its assortment in 2018 including bedding, home goods, and wall décor in an effort to widen its appeal and establish itself as a one-stop-shop for home needs. The product expansion follows the retailer’s acquisition of online home goods retailer The Company Store and allows for direct competition with major home goods retailers like Wayfair and Bed Bath & Beyond.
LOWE’S +7.1%
As reported Q2, 2018
Despite continued positive store sales, Lowe’s announced in 2018 that they would close 51 underperforming stores across the U.S. and Canada as part of its ongoing strategic reassessment. However, the balance of inventory categories, Positive industry performance & continued investment in DIY home improvement projects bodes well for the future of Lowe’s.
What does the Customer Love Score® tell us about the Home Improvement Industry?
Leveraging artificial intelligence and machine learning, the Customer Love Score® provides more than 25 comparison metrics for a brand and competitors – in this case, Lowe’s & Home Depot.
Key Insights:
- When considering what drives a customer’s love for Home Improvement Brands, reliability and excitement are the most
important characteristics. - Though Lowe’s has high ratings on many characteristics, they have a harder time retaining customers that have negative experiences with them compared to Home Depot.
- Lowe’s has a one percent higher share of wallet as compared to Home Depot, ringing in at 46% and 45%, respectively.
Revolutionizing Marketing Optimization with the Customer Love Score®
“Using the score as a centerpiece to optimize our loyalty programs and drive personalization strategies, has been a game-changer for our clients.”
Chris Duncan, President, Inte Q
Using the Customer Love Score® to influence campaign targeting has demonstrated a 24 percent incremental transaction lift and a 15% increase in ROI over traditional targeting methods.