In recent years, the construction and home services industry has been the victim of a significant shift in consumer behaviour. A growing reliance on digital platforms for decision-making in commerce has become apparent, influenced by broader economic changes, wealth redistribution, and evolving homeowner demographics. HomeBase has taken steps to adapt to these changes with some ambitious and adaptive strategies. Not all have worked, but there is a lot we can learn from them.
Introduction
Established in 1979 by J Sainsbury’s PLC & GB-Inno-BM, HomeBase quickly became a household name in the DIY Home Improvement sector. Despite facing challenges from economic shifts and the rise of competition from the likes of the Swedish giant of meatballs & self-build furniture (Ikea for those of you who have yet to have their morning coffee), HomeBase has remained resilient. The brand was an early adopter of customer loyalty programs, launching one of the world's first loyalty card programs the ‘Save & Spend’ card.
Over the years, HomeBase experienced significant changes, including its sale to Schroder Ventures in 2000 for £969 million and a more recent acquisition by Hilco Capital in 2018 for a nominal sum of £1, reflecting the brand's struggle after a string of store closures.
HomeBase's Digital Transformation
Initially, HomeBase's market presence and customer engagement strategies were primarily offline, focusing on their network of 283 stores. However, shifts in consumer behavior, such as increased online research prior to purchase and a preference for virtual consultations, prompted HomeBase to reconsider its approach. The brand revamped its website, engaging audiences on social media, and leveraging SEO strategies. Notably, HomeBase's YouTube "How to" series and its strong presence on Pinterest, with 10M+ monthly views, exemplify successful elements of its pivot to digital media.
Impact of Digital Media on HomeBase
This digital shift significantly impacted HomeBase's process for lead generation and customer engagement. The brand saw increased website traffic, higher conversion rates, and enhanced customer satisfaction. However, the transition was not without challenges.
HomeBase has yet to master the other social media like FaceBook & Instagram where its customers undoubtedly are. It faces issues with these other social media pages and struggles to connect with users who are beginning to demand more authentic experiences with brands that a lot of companies are struggling to provide.
Lessons for Home Services Business Owners
HomeBase's journey offers several key lessons for home services business owners. Understanding and responding to consumer behavior trends is crucial. Digital media plays a vital role in enhancing visibility, building brand trust, and engaging potential customers. Business owners should focus on creating authentic and relatable content that resonates with their audience. Avoiding common pitfalls such as overly salesy content and disconnected social media strategies is also essential.
To learn from their setbacks, HomeBase needs to recognize the importance of authenticity and connection with audiences by experimenting with new ideas and approaches to digital marketing and take some risks with smaller influencers.
Conclusion
Adapting to shifts in consumer behavior through digital media is not just beneficial; it's necessary for survival in the home services industry. HomeBase's experience underscores the importance of embracing change and innovating. As homes and spaces continue to be a means of self-expression, connecting with new generations of homeowners through authenticity and shared values is paramount.
For those interested in exploring further, consider resources on digital marketing strategies, consumer behaviour analysis, and platforms like TikTok and Pinterest for business. Engaging with these tools can deepen your understanding of digital media and lead generation, setting your business on the path to success in a rapidly evolving landscape.