Home-Improvement ImprovementHome-Improvement Improvement

Lowe's Cos. is looking to new marketing software to boost sales as it expands its business in 2002. The $18.8 billion Wilkesboro, N.C., home-improvement retailer Thursday said it would begin implementing a new advertising system that will improve returns on print circular advertising.

Lowe's is in the midst of a dramatic growth spurt, with plans to open about 123 new retail stores this year. But as it enters each new market, the company wants to ensure it is offering promotions that are relevant to the needs of potential customers within each region. So Lowe's will be using the Advertising Advisor system from marketing software vendor Net Perceptions Inc., which uses a standard set of analytics to determine which products to advertise in specific markets.

By collecting and analyzing point-of-sale data from cash registers, Lowe's expects to learn how specific products and consumer traffic interrelate. That way, when the marketing department lays out a flier, they'll know what products to include (or avoid) in which regions. Analyzed data will also include consideration for seasonal or regional occurrences, such as a holiday or local event. For Lowe's expansion plans, this information will help the company by allowing new retail sites to use sales data from stores in the same region to shape a launch campaign to see a greater impact on early sales.

Lowe's already uses a business-intelligence engine from Net Perceptions that tracks customer buying patterns and reports ways to market to the company's best customers.

We suppose that means they'll quit advertising snow blowers in Phoenix. What data analysis do you wish your company did or that you wish one of your suppliers would think of? Share your thoughts in the Listening Post.