Case Study:
Regus (part of IWG Group)
The Challenge
Good Growth were engaged with the objective of increasing online acquisition and engagement, to be delivered through 3 stages; customer insight, customer hypothesis and test & learn.
A year into the project, the commercial objective had changed to restore the quality of the user experience whilst maintaining and improving the gains in commercial effectiveness achieved since commencement of the work undertaken by Good Growth.
The Approach
Good Growth created the first Regus Customer Insight Platform and quickly set about proving recommendations were commercially effective through a targeted testing strategy.
At the direction of Regus, a ‘growth hacking’ approach was adopted to deliver the maximum commercial impact, through forcing users to enquire at every conceivable opportunity. Implemented through a strategically-led high velocity testing programme of 18 tests per month in the US, winning tests were then mainstreamed globally.
Just after a year in to the engagement, the Customer Insight Platform was refreshed, which carved the route to commercial growth through improving the user experience, de-risking the introduction of new branding and re-introducing a customer journey.
The Findings
The customer insight generated highlighted two clear findings:
1 Respond to changing customer needs
Industry changes, driven mostly by competitors are increasingly offering the ability to book and buy office space online. There was a distinct difference in what customers told us they were looking for when providing their reasons for failing to buy a Regus product.
2 Growth hacking works, but at what cost?
Forcing enquiries where possible generated large volumes of low-quality traffic and a pool of frustrated customers who have a negative impression of Regus. Returning to a defined customer journey with a clearly executed sales execution resulted in customers having a positive interaction with the website, generating higher quality enquiries.
The Results
Over the 150+ tests that have been conducted; we have generated a considerable return:
- 23% of tests have been mainstreamed by Regus
- 47% of tests were declared winners
- 92% cumulative uplift in site conversion rate
- £218m equivalent increase in annual, global revenue
- £1.69m revenue generated in-test
Our work with Regus has:
- Illustrated the importance of understanding customers
- Utilised customer insight to drive commercial growth
- Used testing to de-risk the implementation of new branding
