Rewards Program led Business Growth




Coffee Day Fresh ‘n Ground
Coffee Day Fresh ‘n Ground:
                                                                    inTouch has delivered year...
The Solution
inTouch benchmarked proposed program benefits against those offered by other successful
rewards programs and ...
Business Benefits

 Program statistics:                                   Topline growth for the 3 years was at
 Program L...
Every day analytics

                                       Assured Results and RoI

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Rewards program led business growth

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Successful rewards programs anywhere in the world have always had customer data at the center of their strategy. Without strong customer analytics capabilities, a successful rewards program is simply inconceivable.

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Rewards program led business growth

  1. 1. Rewards Program led Business Growth Coffee Day Fresh ‘n Ground
  2. 2. Coffee Day Fresh ‘n Ground: inTouch has delivered year-on-year benefits to Rewards Program led Business Growth several clients in a wide variety of businesses – Consumer, Retail, Ecommerce, Food & Beverages, Jewelry, Beauty & Healthcare, Harish Bijoor (CEO, Harish Bijoor Consults): Coffee Card Program Education, Satellite and Web Communication, is the best thing that has happened to the Fresh ‘n Ground Petroleum, HR Services and more – over several long term and on-demand brand.. engagements for the past 5 years. Jayanth C J (President, Coffee Day Fresh ‘n Ground): We cherish Salary Computational Tool for the largest the 3 years of a highly successful partnership with inTouch! temp staffing business in India >> predicts market benchmarked salaries based on skills and attrition scores S t o r i e s Pricing and Discount Optimization for the Successful rewards programs anywhere in the world have always world’s largest Satellite Communication had customer data at the center of their strategy. Without strong business >> has delivered more than $100 customer analytics capabilities, a successful rewards program is million in potential annual savings for the business simply inconceivable S u c c e s s The case Sales Program Effectiveness for America’s largest Air conditioning systems provider >> Rewards programs are a prime focus area for inTouch and our has afforded visibility into rates of return first client here was Coffee Day’s Fresh ‘n Ground Division. The delivered by various marketing programs across sales territories in North America division manages a chain of 450 stores across South India that sell Filter Coffee Powder. The business has a franchise of more than 500,000 households. Supply-Demand Matching & Optimization Tool for a large Staffing Service provider in India >> An essential characteristic of the business is that consumers in has brought down doability turnaround from 3 weeks to across the table for the salesforce South India are habituated not only to drinking coffee as part of their daily routine but are also hooked to a particular Topline growth oriented rewards programs for aroma/taste and hence to a particular brand. Thus, there was a a market leading Filter Coffee business in India strong case for rewarding the customer base for their patronage >> has delivered a 3-fold increase in revenues of about 7 years, in order to secure their loyalty. for 3 straight years for the 425 outlet chain Our business study revealed some challenges, however. In a Customer Feedback Decision Support and mature category, the topline growth for the industry was a Smart Response System for India’s largest fine meagre 2% and most of this was driven and sustained with dining restaurant chain and many more frequent use of short term promotions. The category also market leading café and QSR chains >> drives a significant percentage of repeat visits across constituted a routine purchase for consumers – nil excitement the 20 outlet restaurant chain and extremely limited scope for up-selling.
  3. 3. The Solution inTouch benchmarked proposed program benefits against those offered by other successful rewards programs and found that there was a need felt by customers for a rewards program that delivered incrementally accruing benefits. Actionable Analytics – at the heart of the program The success of the program is thanks largely to Many rewards programs in India undermine the importance of customer intelligence. Even a continuous learning – Plan-Target-Act-Learn among firms that appreciate the role of – actionable analytics orientation, besides customer intelligence, few are equipped with strong back-office capabilities built by inTouch the requisite knowledge and skills. for Fresh ‘n Ground. Each individual customer interaction was slotted into a datamart with a The approach often is, “build it and they will view to enable achieving analytics objectives. buy” In each such program, inTouch sharply focuses analytics objectives on management decision making styles as well as the organizational capability to action decisions. From tracking member transactions and segmenting customers based on their purchase behavior, inTouch graduated to a predictive modeling platform when the gross number of transactions crossed a critical 3 million (it now stands at 10 million). The 50g extra and 100g extra schemes Our analytics team segmented customers by monthly purchase volume concluded that if specific customer segments are motivated Analytics capabilities that support the program to buy additional increments, a substantial today include – increase in tonnage is possible by way of upselling. 1. Trend analysis for program performance critical parameters and Predictive business The ‘50g extra’ scheme was a sweepstakes modeling 2. Offer Response evaluation and modeling program for customers who bought an 3. Loyalty scoring and Recency Frequency additional 50g alongside their usual Monetary Value (RFM) modeling purchase. 4. Reward Milestone modeling – positioning rewards based on revenue and cash flow goals The scheme not only resulted in a sizeable 5. Card usage, Attrition and win back modeling increase in revenues, it was also successful 6. Micro-segmentation of customer base and interacting with a market of one in migrating entire segments to higher value. Our research also pointed to substantial number of customers that the scheme was successful in weaning away from competition and turning loyal to Fresh ‘n Ground.
  4. 4. Business Benefits Program statistics: Topline growth for the 3 years was at Program Launch: September 2003 8% as against a staid industry growth rate of 2%. Sales increased from about 110T in 2003 Member base: 400,000 and growing at the to about 150T in 2006 rate 2,000 members a month Stable baseline (off-season) revenue with minimal use of short term promotions Member activity: 75% to 80% (as against a (and hence cash outflow). Offer response global benchmark of 45% to 50%) modeling ensures intelligent use of Rewards performance: 165,000 members promotions to program members rewarded to date Predictability in terms of sales, response to offers and segment migration. Daily Transactions: 10,000 transactions a day Business modeling enables visibility and choice of proactive tools to achieve Gross Transaction volume mined by inTouch: objectives 10 million to date Improved Customer involvement in a dull category. Customers have many reasons % Tonnage contributed by program: 95% of to interact with the brand today. all sales
  5. 5. Every day analytics Assured Results and RoI Incremental and scalable Built and managed for your business inTouch analytics, Floor 2, #33/5, NHS Road, V. V. Puram, Bangalore, India. Pin: 560004 Mail response@be-in-touch.com Call +91-80-32929411 Visit www.be-in-touch.com Visit www.indiasalary.in India’s only authentic salary computational tool. Powered by inTouch analytics in partnership with TeamLease Services

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