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Acing The CRM Experiment - 40 Customer Engagement Tips From Leading Brands

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There is so much great information in this 44 page white paper designed to show retailers how proper customer engagement can have a lasting effect on a brand and its sales.

There is so much great information in this 44 page white paper designed to show retailers how proper customer engagement can have a lasting effect on a brand and its sales.

More in: Retail , Business , Technology
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  • 1. A Handbook on 40 Customer Engagement Learnings from Leading Brands
  • 2. What's Inside Predicting and Preventing Customer Attrition Customer Retention Program In-store Engagement Rewards Based Loyalty Programs Points Based Loyalty Programs Inventory Optimization Data Collection, Collation and Storage & Enrichment Social Marketing Visual Analytics (Heat Maps) Gift Card Solution Store Task Flow Management Campaign Automation Customer Store Experience Lifecycle Marketing Segmentation and Micro-segmentation Direct Mailer Optimization Right Offer to Right Customer Right Time with Right Communication Right Communication through Right Channel Campaign Level Analytics 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
  • 3. What's Inside Customer Level Analytics Product Level Analytics Store Analytics Multi Channel Engagement Propensity Model New Joinee Program Personalized Targeting Pareto Analysis Digital Marketing Cashier Incentive Instant In-store Engagement Discount Optimization Cross Tie Ups New Store Opening Effect Catchment Analysis Store Cannibalization Product Cannibalization Product Placements (In-store) Customer Feedback Management Customer Complaint Management 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
  • 4. up Based on the past history of customer transactions, lapsation studies are initiated to understand customer churning Assessment of lapsed customers and what char- acteristics are inherent in them Deployment of statistical predictive modeling to forecast future behavior and design relevant offers A leading distribution company of food and beverages in the UK, invested in a customer attrition prevention and prediction model to take corrective action to combat downtrading. Exhaustive customer profiling helped make segmented campaigns that yielded a 10% hit rate and 52% responsiveness through focused promotions Image sourced from GoogleACING THE CRM EXPERIMENT Reduce customer downtrading and attrition rates that throws up insights into customer preferences Reduce latency among customers Helps design offers targeted to micro-segments of customers driving up response rate and customer resonance with relevant offers Approach 04 01 Predicting and Preventing Customer Attrition Benefits Result 10% 52% Segmented Campaign Focused Promotions
  • 5. up Assess historical behavior of customers, purchase patterns and points accumulated Engage with active customers with offers to boost average basket size Initiate aggressive offers to delight and retain customers on the verge of lapsation High customer retention with Loyalty sales contribution upped to of total monthly sales of program deployment of sales through repeat purchases 50% < 9 months60%& in Benetton, one of the best known fashion companies in the world, deployed retention programs across its 200+ stores through a cloud and mobile based loyalty solution. Image sourced from Google ACING THE CRM EXPERIMENT Personalized targeted campaigns on customer segments for additional cross-sell or up-sell Automated communication of member status, rewards balance, birthday/anniversary offers to create brand connect Daily MIS reports around registrations, sales and other KPIs to track program effectiveness Approach 05 02 Customer Retention Program Benefits Result
  • 6. up Enlist customers into the loyalty program and send instant activation message to unique contact number provided Based on purchase history, engage with customer real time with instant offers while they are still in store Burberry, the iconic luxury brand of trench coats and tartan plaids invested in creating a digitally con- nected enterprise to engage with every customer globally and create real-time experiences across devices that translate the Burberry vision. Opening of a flagship store in Michigan Avenue that demonstrated the brand's vision to create enriching experiences. The company clocked an 18% increase in Q1 sales in 2013 with record high annual revenues of 2 Billion. ACING THE CRM EXPERIMENT 18% increase Q1 sales in in 2013 2 Billion Annual Revenue Seamless integration of POS with loyalty program to boost registrations and capture customer data points Analytics enabled campaign management engine helps perk up response and create real time engaging experiences for customers Instant In-store engagement solution can help spike average basket size per customer real time and generate revenue from loyalty base Approach 06 03 In-store Engagement Benefits Result Image sourced from Google
  • 7. up Analyze customers lifetime purchases, frequency and recency of vists and divide them into various slabs A coalition of allied brands offer points based on customer spends Enables customer to redeem points in any of the allied brands' stores offering a range of products to choose from In 2012, leading sports brand, rolled out a reward-based social loyalty program that encouraged members on Facebook to pursue an active and healthy lifestyle with set targets in the fitness regime. Annual revenues hit $24 billion, up 60% since 2006 and profits jumped by 57% creating a social buzz that heralds the brand for innovation and stoking advocacy. Annual revenue $24 billion ACING THE CRM EXPERIMENT New age loyalty helps easy transition of legacy loyalty systems to a real time platform Increase Customer Lifetime Value (CLV) of the targeted customer base through analytics driven campaigns and build stronger relationships with customers to invoke desired behavior Enhance shopping experience through real time in-store customer incentives Approach 07 04 Rewards based Loyalty Program Benefits +60% & 57%+ Revenue since 2006 ProfitResult Image sourced from Google
  • 8. up Form slabs and tiers based on various factors like lifetime purchase value, frequency and so on Rewards customers with offers redeemable only at the brand-operated stores A leading international fashion apparel label was empowered by an array of loyalty solutions to drive upgrades, revenues and lower acquisition costs. 33% increase in loyalty program's redemption rates, over 195% increase in additional revenues, loyalty acceleration of 28% achieved through upgrades and limited earn-burn ration by over 60% resulting in zero-cost acquisitions through referral programs. ACING THE CRM EXPERIMENT Lower customer churn and build retention while lowering acquisition costs Build loyal customer base continually and data warehouse for analytical insights Eliminate ineffective non-responsive mass cam- paigns optimizing marketing costs Arrive at price points and inventory optimization based on historical analysis of customer response and preferences Approach 08 05 Points based Loyalty Programs Approach Benefits 33% increase 28% 195% increase in Loyalty Programs redemption rates loyalty upgrades in additional revenues Over Result Image sourced from Google
  • 9. up Apply planograms or shelf optimization techniques to firm up visual merchandising based on high-affinity between products Placement of merchandise influenced by up-sell and cross-sell strategies Fix discount schemes based on sale patterns, stock levels and affinity between products A Growing quick-service chain famous for its mouth watering wraps, mapped its marketing with menu optimization to analyze customer's dish preferences and sales per menu item Streamlined and optimized brand's menu and attached inventory across its 34 outlets and deployed customer segmentation and lifecycle marketing models to maximize personalization to various customer clusters ACING THE CRM EXPERIMENT Current inventory optimization and initiate localization to lower costs and increase sales per category Insight driven product combinations to create enhanced customer experiences and stickiness Optimize the marketing spend allocation to product categories Divesting low yield or slow moving inventory and deliver right offer for the right products at the right time Approach 09 06 Inventory Optimization Benefits Result Logistics Lifecycle Inventory Analyze Model Goods Flow Time Efficient Marketing Management Segmentation warehousing Optimize Optimize Product Chain Image sourced from Google
  • 10. up Cloud based POP solution to collate and update data on customer during each transaction Initiates standardization of different formats of the same data item across database Enrichment of incomplete data points performed to arrive at crisp and complete customer data A leading international fashion apparel label was empowered by an array of loyalty solutions to drive upgrades, revenues and lower acquisition costs. Personalized communications resulted in 9% spike in repeat customers and overall 15% same Store Transactions Growth. 24x7 dedicated, cloud based solution called for minimal IT infrastructure and resource burden ACING THE CRM EXPERIMENT Data equates to revenues. Investment in data management helps retailers combat poor capture of store level customer data Identify and consolidate pockets of data that prevents centralized management and analysis High visibility on insights from data analytics and track coherent trends Approach 10 07 Data Collection, Collation and Storage & Enrichment Benefits Result 9% 15% 24X7 spike in repeat customers same Store Transactions Growth cloud based solution Image sourced from Google
  • 11. up Create apps for the brand and capture data points on customer Engage with the customer via social channels to drive engagement and integrate with backend CRM A leading shoe brand in India, amped up its social media marketing campaigns to increase loyalty conversions with a comprehensive social solution. Clocked 45% coupon downloads on campaigns activated on Facebook and 10% redemption for social coupons ACING THE CRM EXPERIMENT Create one-to-one marketing opportunities through social channels Monetize fan base and leverage social media Accelerate loyalty and repeat purchases Drive customer interactions and brand awareness online to garner social advocates Approach 11 08 Social Marketing Benefits Result 45% 10% coupon downloads on Facebook redemption for social coupons Clocked Image sourced from Google
  • 12. up An graphical integrated representation of store and customer level analytics Visual representation offers a lucid overview enabling easier interpretation of data points and insights ACING THE CRM EXPERIMENT Comprehensive analysis of effect of competitor and customer locations on sales and identify focus areas Impact of new store opening and self cannibalization Identifying most responsive or profitable customer cluster in a specific area and execute push strategies for slow moving products Potential areas for opening new stores through catchment analysis Approach 12 09 Visual Analytics (Heat Maps) Benefits A respected and sought-after retail brands in UK deployed heat- mapping of online customers to incite them with offers to shop in the nearest outlet as well as the ecommerce portal. The brand grossed an incremental sale of 137000 from a mere 25% of the customer base in less than 12 weeks. Result 137000 12 weeks Sale of in less than Image sourced from Google
  • 13. up Study customer database based on lifetime spend and frequency and initiate customization on gift cards issued Design a timeline engine for each customer segment to push through relevant campaigns, update real time and avoid instances of fraud Create store locator app for customers to navigate to the nearest store to redeem or make purchase ACING THE CRM EXPERIMENT Innovative and cost-effective marketing tools to rope in customers through branded experiences that offer convenience and delight Enables designing a straightforward strategy to connect with customers and their references through gifting option Combat gift card fraud concern by safeguarding proprietary gift card information from miscreants through real time tracking Approach 13 10 Gift Card Solution Benefits $3k worth of redemptions and >$6k worth of recharges for an average of 400 cards issued per store. Over 50 new customers were acquired with a redemption rate of over 43% Result Headquartered in Paris, a high- end luxury salon and spa with typically high customer acquisition costs and leveraged a unique and flexible Gift Cards solution to engage with their premium customers. $3000 $6000 400 cards 43% 50worth of redemptions Average of Acquired with issued per store redemption rate worth of recharges new customers over > Image sourced from Google
  • 14. up GUESS, one of the world's top apparel retailers, deploys a broad store and taskforce management solution across its outlets that enables employees receive business-critical information through dynamic dashboards to track customer buying patterns on the go. Result Through lapsation study, store managers are provided daily list of customers who are nearing lapsation Store managers consequently assigns tasks to executives to initiate dialogue and engagement strategies to coax a sale from the targeted customers ACING THE CRM EXPERIMENT Model store tasks based analytics on expected business volumes, and schedules Streamline execution of store wise strategies to cross-sell or up-sell Centralized overview of customer summary to store associates for better interaction and customer-centric approach Leverage technology to initiate immediate feedback or grievance redressal and input customer data real time. Approach 14 11 Store Task Flow Management Benefits The sales force has eliminated cumbersome spreadsheets for PDF based operational snapshots of business performance and take quick decisions to boost revenues. PDF Image sourced from Google
  • 15. up On deployment of analytics, insights are derived to design optimized campaigns which are fed into automation modules for deployment to targeted customer segments On campaign deployment, performance metrics and extensive reports are generated that aid post campaign assessment ACING THE CRM EXPERIMENT Management of customer, store, product and campaign level intelligence High quality data visualization and flexible loyalty management Build productivity through automated reports and dashboards through an integrated platform for campaign analysis Maximize average basket size per customer and increase customer retention through offers Approach 15 12 Campaign Automation Benefits World leaders in designing and manufacturing extreme weather outdoor gear and shoes deployed analytics and campaign automation engine to deliver real-time, actionable insights followed by response driven offers. 13% increase in repeat bills in the first year with a whopping 41% boost in loyalty sales. Result Campaign Automation Campaign Optimization Data Visualization Loyalty Management Customer Retention Customer Analysis
  • 16. up Integrated POS module with updated data on customer behavior, past transactions and purchase history offering a snapshot view of customer's loyalty benefits Personalize engagement based on this information and make real time, relevant offers to drive stickiness ACING THE CRM EXPERIMENT Single view task assignment to sales executives based on recommendations on customer summary and past purchase trends Increased quality of 1:1 interactions with customers through personalization in-store Easy and quick customer complaint or feedback capture mechanism Right-time communication to generate higher yield and enhanced customer experiences real time Automated reminders on customer birthdays or anniversaries to establish emotional connect Approach 16 13 Customer Store Experience Benefits Leading preimum beauty brand deployed centralized workflow in each salon and personalized exclusive in-store customer interactions. 28% stickiness in its premium services categories and a high customer retention of 75% repeat sales from existing customers Result 28% 75% stickiness in its premium services categories repeat sales from existing customers Image sourced from Google
  • 17. up With a one year minimum backlog of data points on customer behavior and purchase patterns, lifecyle modeling can be deployed Traces the customer across lifecycle and identifies opportunities for designing relevant campaigns and offers to perk up bill value and loyalty ACING THE CRM EXPERIMENT 'Surprise' customers with messages customized to potential purchases based on past transactions Relevant meaningful interactions with customers to create strong brand advocacy Increase category penetration across different lifecycles and push slow moving and premium categories effectively Approach 17 14 Lifecycle Marketing Benefits Result A maternity and baby care brand, in order to drive long-standing customer loyalty and increase bucket size per transaction initiated a lifecycle based targeted engagement solution to reach out to the right customer at the right life-stage to generate higher propensity to buy. Customer Retention Get Referrals Convert Sales Deliver & Satisfy Upselll Customers 42% 10%6monthsin withlower customer attrition additional revenues from lifecycle based campaigns
  • 18. up Macro-level segmentation derived from broadly defined parameters such as bill value, preferences, recency or latency etc., Micro-segmentation categorizes customers into homogenous clusters that show minimal variations within each cluster conducted through descriptive statistics and predictive modeling ACING THE CRM EXPERIMENT Differentiating customers into segments and micro-segments based on strategic KPIs Derive insights into each micro-clusters revealing important inputs on designing campaigns Inventory management backed by analysis on customer preferences and buying patterns Personalized campaigns for each customer to derive monetary and loyalty advantages Approach 18 15 Segmentation and Micro-segmentation Benefits The global leader in mobile and accessories wanted to take a closer look at what drove their customers and how to win their mindshare in the competitive consumer electronics industry. An in-depth clustering of customers based on multiple parameters was performed to enable focused targeting. Result 26% 20% 11months + withincrease in average SKUs per customer repeat sales doubling in increase in average purchase value Image sourced from Google
  • 19. up Measure targeted response level at which cost of campaign can be justified Post assessment of earlier mailer campaigns and catchment area study, arrive at the optimal number of customers or catchment areas to initiate campaign with to achieve desired response rate Helps identify customer responsiveness to different product segments and motivations to repeat buy revealing insights on future campaign designs Historical study of direct mailer campaigns and their drop assessment uncovers key metrics on assessing cost effectiveness when combined with alternative channels Heat map study and propensity modeling helps to ascertain high response customer segments and locations to yield maximum ROI from mailer campaigns Approach Benefits Pizza Hut, the world's largest pizza retailer, was challenged with dimin- ishing impact of communications that adversely affected its top-line. The retailer implemented a comprehensive CRM solution to identify better communication channels timed to perfection with the right customers, with messaging to deliver high response rates. It also initiated a direct mailer optimization solution to assess performance of existing campaigns. Clocked 13X overall ROI for the campaign period on existing offers yielding 5% sales growth every month. Also, profit of $204k generated by optimizing mailers during a 5 month period. Result 5% $204K sales every month profit generated ACING THE CRM EXPERIMENT 19 16 Direct Mailer Optimization Image sourced from Google
  • 20. up Study of Average Bill Value or share of wallet analysis to understand customer value Based on customer valuation, degree of personalization and customization in offers are ascertained to enhance delight factor and boost bill value ACING THE CRM EXPERIMENT Strong analytics and insights help churn strategies to accelerate customer store visits frequency and average basket size Data underpins loyalty program success through real time offers and personalized communications to the right bracket of segments to promote revenues and stickiness Helps combat discounting on high performing products and beefs up inventory management Approach 20 17 Right Offer to Right Customer Benefits Image sourced from Google
  • 21. up Study purchase pattern during the calendar year and identify pockets of boost in sales to design and target offers Identify the most preferred time of communication with higher response rate to maximize offer effectiveness ACING THE CRM EXPERIMENT Perk up performance of existing marketing campaigns and offers Reduce discount dependency on offers by fine-tuning the target to achieve higher response Customer purchase behavior discovery to pave way for future offer designs Map customer-channel propensity and customer purchase cycle to lower marketing and acquisition costs Approach 21 18 Right Time with Right Communication Benefits Image sourced from Google
  • 22. up Based on the offer and communication designed, assessment of past campaign success throws insights into the channel that yields higher response rates and lowers cost of campaign ACING THE CRM EXPERIMENT Unearth patterns between response and communication channels, audience receptiveness and alter existing offers to generate high probability of desired selling behavior Focus tone and timing of messaging through historical analysis of channel behavior and generate response at lower costs Lower cost of marketing and acquisition and increase campaign success by eliminating mass marketing messaging Approach 22 19 Right Communication through Right Channel Benefits Core Messaging Social Media Emails Website Content Mobile Phone Apps Direct Mail Articles & blogs Press Releases Image sourced from Google
  • 23. up Analyse success of campaigns and customer responsiveness and the determinants of success factors in the campaign minus the seasonal influencers through test and control activity Variation between test and control groups monitored to identify the lift percentage and the resulting incremental revenues Breakdown customer buying behavior, past campaign success and customer lifecycle to design automated personalized campaigns to deliver better response Develop ground-breaking engagement campaigns that can be easily automated, accessed and managed on cloud enabling accommodation of high volume campaigns to multiple customer segments and coupon series Analytics driven campaigns yield higher hit rates resulting in positive KPIs and stronger customer engagement Approach Benefits A chain of beauty and lifestyle retail stores, is a one-stop-shop for personal care needs housing an extensive array of international and domestic brands. The brand sought an analytics driven CRM solution to categorize inventory, identify buying trends to map product-customer relationships and push offers. 10.6X ROI achieved through campaign automation solution with 27% higher spends per customer and a 51% spike in repeat sales per store. Result 10.6X 27% 51% ROI achieved through campaign automation higher spends per customer spike in repeat sales per store ACING THE CRM EXPERIMENT 23 20 Campaign Level Analytics Image sourced from Google
  • 24. up Assessment of customer behavior in store and with respect to product lines to throw insights on potential offers Customer behavior, past purchase and transaction history also enables identification of optimal channel to initiate campaigns through and achieve desired behavioral outcome ACING THE CRM EXPERIMENT A single combined overview from disparate sources on customer behavior across product categories and stores Deploy predictive analytics to influence customer response, lasting relationships and brand affinity Pitch the right offer to the right customer at the right time through the right channel Reap from automation with enhanced productivity and agility in adapting campaigns and lowering attrition Approach 24 21 Customer Level Analytics Benefits Key Business Result Areas Costs Reduction Cross-channel customer experience Sales Performance Real-time performance Agent Productivity MIS Reporting Social Media Response Supervisor Effectiveness Image sourced from Google
  • 25. up Monitor sales of product assortment to identify and categorize SKUs based on revenues generated Study product cannibalization, affinity between products and customer buying patterns as part of analytics to devise relevant up-sell and cross-sell campaigns ACING THE CRM EXPERIMENT Enhance product assortment and arrive at data-driven insights on supply chain based on customer buying behavior and trends gathered Make tactical and strategic decision by tracking new product assortment, optimize promotions and markdowns, and control instances of stock-outs Increase performance and productivity of merchandise and drive business revenues through insightful decisions Approach 25 22 Product Level Analytics Benefits Key Benefits Monitoring Sales Product Assortment Optimize Promotions Product Reporting Merchandise Productivity Images sourced from Google
  • 26. up Close monitoring of Same Store Transaction Growth (SSTG) to assess store growth periodically Assessment on location-wise performance of stores and emulation of success stories across lower-performing stores ACING THE CRM EXPERIMENT Improve transaction value per store and boost footfalls through enhanced customer service level leading to higher store profitability Increase productivity of store real estate through streamlined operations, effective marketing initiatives fine-tuned to customer profile, and adequate staff to customer ratio Transform the in-store experience for the customer, thus improving satisfaction and overall loyalty Approach 26 23 Store Analytics Benefits Effective Marketing Store Productivity Improve customer satisfaction Customer Loyalty Image sourced from Google
  • 27. up Leverage social media, mobile, email and direct mailer channels to optimize communication and design outreach programs to engage with customers Necessitates deep understanding of channels and incumbent technologies to differentiate engagement campaigns and achieve higher response rates ACING THE CRM EXPERIMENT Seamless engagement across multiple channels leveraging existing and emerging technologies create a positive brand perception in customers Differentiation through 360 presence strength- ens recall and customer connect yielding higher revenues at lower retention costs Better data capture through several touch points with deeper insights Approach 27 24 Multi-channel Engagement Benefits PUMA, one of the leading sport-lifestyle brands deployed a customer win-back campaign through multi-channel engagement. A high 4% hit rate from targeted win-back campaigns Almost 4K lost customers reactivated per month - more than 80% higher than bulk campaigns 30% of total sales from repeat customers Result Image sourced from Google
  • 28. up Measure the probability of a customer segment responding to a specific campaign Insights are derived from assessment of past campaigns to model propensity or success rate of future campaigns and gauge minimum customers to target to achieve desired response level ACING THE CRM EXPERIMENT Intensify the granularity of segmentation and relevance of offers through customer differentiation Throws up trends and relationships between attri- butes and variables that affect customer buying behavior Pinpoint specific attributes responsible for a behavioral outcome to deploy predictive analytics Mass mailing costs are done away with and focused targeted mailers with high response rates can be initiated Approach 28 25 Propensity Model Benefits One of the oldest and well known retailers in Singapore, used propensity models to repel diminishing scale of returns with increasing number of campaigns and to identify optimum customer base to target to get desired degree of response and their preferred model of communication. Response rate of 93% was attained through 60% customer base as opposed to 100% thereby reducing marketing costs. Over 50% additional customers retained through campaigns with a 3.8% reduction in discount margins. Result Image sourced from Google
  • 29. up New entrants to the loyalty program are studied on purchase behavior, past visits and buying habits to identify recency - frequency - monetary value of customer Campaigns initiated to lure customer in store within 90 days of enrollment to amplify loyalty towards the brand ACING THE CRM EXPERIMENT Despite lack of transaction history, basket level campaign designing for new customers Real time tracking of basket and shopping motiva- tions of the customer to spawn actionable insights in store and offer relevant targeted campaigns Aggressive engagement with new customers to firm up brand affinity and lower drop rates through lapsation modeling Approach 29 26 New Joinee Program Benefits A web-only apparel retailer, Revolve Clothing integrated marketing analytics to connect with its new customers through emailers as part of its new joinee program. 33% of its one-time buyers were converted into repeat customers. Result Image sourced from Google
  • 30. up Instill a tone of personalization in messaging and design campaigns around past behavior of customers to increase relevance of communication ACING THE CRM EXPERIMENT Powerful personalized recommendation tools propel conversion rates apart from creating engaging experiences Personalized campaigns inch closer to 1:1 market- ing and spawns strong brand loyalists Dynamic up-sell and cross-sell tactics can be de- ployed backed by analytics on customer behavior through targeted campaigns Approach 30 27 Personalized Targeting Benefits A leading electronics and accessories brand in South Africa with over 85 outlets realized the need for amplifying its personalized communication in a highly volatile, new product launch driven industry with an aim to retain loyal base and induce repeat purchases. Post deployment of exhaustive personalization campaigns, brand realized 20X ROI with campaign management solution and a 53% redemption rates from existing customers. with campaign management solution redemption rates from existing customers Result 20x ROI 53% Image sourced from Google
  • 31. up Based on the Pareto rule (80/20) identify top-con- tributing product categories and customer segments Macro-level segmentation initiated post which recency-frequency-monetary value of customers are derived and clustering is performed ACING THE CRM EXPERIMENT Reveals significance of individual SKUs and the annual spends incurred and arrive at critical decisions of introducing or closing down products based on performance Pareto analysis combined with cluster analysis helps estimate store specific inventory plans Enhance productivity and service levels through inventory management to forecast, and address stock-outs, unfulfilled orders and back orders immediately Approach 31 28 Pareto Analysis Benefits A leading apparel brand in India wanted to discontinue its Toys category due to negligible sales contribution despite occupying high store estate area. The brand initiated Pareto analysis to identify top performing and slow moving product categories, thus freeing real estate for high moving products. Identified that 38% of Toy customers are High Loyal contributing to 58% of sales thus freeing up space by closing down low performing product lines. Pareto Rule Result 20% 80%effort Results Image sourced from Google
  • 32. up Map online presence of customers on social media, relevant communities and online transaction patterns of segments Run campaigns for each digital touch point namely emailers, remarketing ads, mobile- optimized in-app advertising with optimized communication to drive up responses and engagement ACING THE CRM EXPERIMENT Leverage ubiquitous connectivity in the online space to connect with users Ecommerce portals can track microscopically the behavior of customers on websites, source of enquiries, pages that yielded higher visibility etc 1:1 personalization made possible with customized communication to each visitor Automated and customized emailers to keep customers hooked to build potential enquiries, brand awareness and future loyalists Approach 32 29 Digital Marketing Benefits A leading ecommerce apparel portal, with more than 100K customers visiting on an average per week, implemented a structured digital strategy for its business expansion and loyalty enhancement. Average bill value perked up by 50% with a 12% increase in repeat customers in just 8 months of program deployment. Result
  • 33. up To push up enrolments in loyalty program installed in POS, incentives are designed to motivate cashiers to push through registrations with the customer Extensive training on loyalty scheme, redemption process and data capture provided to beef up interface with customers ACING THE CRM EXPERIMENT Performance based pay or incentivizing cashiers for enrollments into loyalty programs help ensure ownership and active engagement with customers Data points are critical and cashiers act as the final interface with customers through which personal data can be collected and analytics initiated Cashiers are hubs for gathering customer feedback and can uncover important actionable recommendations that could otherwise go unreported Approach 33 30 Cashier Incentive Benefits Raymond, India's largest branded fabric and fashion retailer pumped in significant resources in ensuring a rules driven campaign and promotions module to offer the right offer to their 1.7 million customer base. Total registrations reached 1.6 million in 3 years from 250K with a 115% increase in a premium circle membership. Result Image sourced from Google
  • 34. up Analysis of historical data on customer's transaction statements and purchase trends reveals insights on potential relevant campaigns that would generate high response Real time rendering of vouchers and campaigns while customer is in store to capitalize on impulse purchase and initiate up-sell or cross-sell ACING THE CRM EXPERIMENT Mobile voucher redemption estimated to be around at 10 billion this year presenting a huge business opportunity for retailers Real time vouchering models enable personalized targeted offers that guarantee a high response rate and potential conversions while customer is in store Dynamic vouchering system presents itself as a medium to engage with customers with relevant campaigns that also build brand affinity apart from significant cross-sell and up-sell schemes Approach 34 31 Instant In-store Engagement Benefits One of China's influential accessories brand deployed a CRM solution to data warehouse, initiate targeted campaigns and build purchase frequency of loyal customer base with instant engagement. 1.85% hit rate for campaigns from earlier 0.94% registering a 43X ROI from the engagement program. Result Campaign hit rate 0.94% 1.85%
  • 35. up Measure affinity between products to arrive at optimal discounts without eating into revenues Analyze customer response towards past discount schemes to calculate propensity and optimize discount schemes ACING THE CRM EXPERIMENT Lower discount dependency by zeroing in on customer buying patterns to reveal insights on designing promotions that would yield higher responses and lower revenue declines during pre-sale months Optimal pricing and promotion of products to sustain and increase profitability without lowering margins or offering discounts through mass offers Plan for inventory based on demand forecasting to assess sales volumes for promotional and non-promotional periods through analytics Approach 35 32 Discount Optimization Benefits Peter England, one of the largest menswear brands in India, wanted to break free from the dependence on end of season sales (EOSS) and deployed a customer engagement program to drive up business during lean and pre-sale months. Sales increased by 1.5% after optimization during pre and post EOSS period as compared to the 15% and 21% decline in prior two years. Result Image sourced from Google
  • 36. up Analysis of transaction history and purchase behavior of customers revels insights into po- tential alliances that maybe forged with relevant brands Associations are formed to offer a stronger value proposition to customers through tangible bene- fits and amplify loyalty ACING THE CRM EXPERIMENT Effective cross promotions backed by analytics of customer buying patterns lowers cost of promotions and increases top-line Successful promotions tie in larger customer base lowering acquisition costs by funneling them from popular to premium brands Relevant offers helps increase retention and stickiness and inventory management Approach 36 33 Cross Tie Ups Benefits A leading Indian restaurant chain with over a 100 outlets worldwide, employed a full scale cross brand promotion campaign to lower acquisition costs, reduce customer drop outs and create enhanced experiences. Over 34% increase in customers shopping with multiple brands through cross tie ups and a 60% jump in average monthly customers retained in 15 months through personalized promotions. Result increase in customers shopping jump in average monthly customers 34% 60% Image sourced from Google
  • 37. up Measure changes in customer acquisitions and footfalls as a result of new store opening Initiate catchment area analysis and trace migration of customers to the new store ACING THE CRM EXPERIMENT Prevents potential store cannibalization by unplanned openings that can hurt revenues of existing and new outlet Catchment analysis of stores and targeted customers can set performance targets and future growth strategies Helps create distinction in inventory maintenance and targeted customer profile based on place- ment of customers, their tastes and expectations Approach 37 34 New Store Opening Effect Benefits Dunkin Donuts relocated their store to less than 100 yards and added a drive through. Sales soared up by over 50% as drive-throughs attract more on-the-go coffee drinkers Result Sales soared up by drive- throughs 50% Image sourced from Google
  • 38. up Identify customer pockets based on place of residence through pin code Roll out campaigns targeted to a perimeter around the store through catchment analysis ACING THE CRM EXPERIMENT Throws up insights on how consumer behavior impacts revenues and costs and devise business models to meet consumer requirements Assessment of customer demands helps benchmark on setting targets for store-wise performance, defining merchandise mix and determining store layout Competitor analysis to identify potential open points or market gaps in catering to customers Approach 38 35 Catchment Analysis Benefits Retail giants McDonalds and Burger King deploy comprehensive catchment analysis based on socio-economic factors, demographic and economic profile, lifestyle, benefits sought and other intrinsic factors to determine the location and format of their existing and new stores. Image sourced from Google
  • 39. up Evaluate impact of new store opening on the revenue of existing store within a geographical perimeter Through evaluation, map migration of customers between stores and arrive at ideal proximity between stores that minimizes revenue loss ACING THE CRM EXPERIMENT Helps identify stores that yield lowest marginal benefit, choose optimum location for opening new store and maintain optimum sales: investment ratio Mapping impact on top line due to store-level variables on overall sales Assessment of store competition and strategize on inventory of products based on buyer prefer- ences and catchment area analysis Approach 39 36 Store Cannibalization Benefits Starbucks, the global coffee chain brand, in the years 2007-2008 shutdown several outlets due to non performance and operating costs. Today the coffee chain employs data-driven location choices that meet the benchmarked sales: investment ratio of 2:1, with a combination of drive-throughs and smaller stores to exceed hurdle rates and generate high revenues. Result Image sourced from Google
  • 40. up Evaluate the impact of new product types on the checkout of existing product types Initiate strategies to lower revenue loss due to new SKU introduction ACING THE CRM EXPERIMENT Comprehensive understanding of dynamics of brand preferences and buyer purchase patterns of product categories Uncover strategies for introducing new product line, modifying existing supply chain for higher revenues and identify scope for differentiation between products Identify opportunities to divest nonperforming products, cross-sell and up-sell campaigns that will yield higher contribution to top line Design personalized offers on products to perk up responses and drive repeat purchases Approach 40 37 Product Cannibalization Benefits Apple faced serious reviews from analysts when launching the iPad on how it would cannibalize performance of existing Apple PCs. Result sold with over million iPads 15 $10 billionin revenues Image sourced from Google
  • 41. up Built on extensive research into customer preferences and purchase trends, visual merchandising is initiated to drive up sales through convenience and easy access Seamless connectivity between product categories placement in store is ensured ACING THE CRM EXPERIMENT Science of product placement addresses need for convenience, executes cross-sell/up-sell strategies and helps boost revenues Enhance visual appeal of store while managing inventory and prevent 'stock outs' Intensify utility of very square foot of retail space to multiply selling potential Approach 41 38 Product Placements (In-store) Benefits Safeway, a leading UK retailer, initiated a family shopper based strategy for product placement in stores with the core objective of offering convenience. Safeway increased the average sales per square foot by over 15% in less than 2 years with a reduction in operating costs by 60 million within a year. Result Image sourced from Google
  • 42. up Capture customer feedback on a generic store experience or specific campaign initiated Conditional on degree and extent of feedback instances, process and operational enhancements may be initiated ACING THE CRM EXPERIMENT Effective feedback and management system helps create a relationship with the customer and ushers a sense of proactiveness around the brand Uncovers critical changes to service, products and operational set-up that could spawn loyalty and secure repeat business Prevents a closed loop feedback system that dilutes potentially grave negative feedback which may spiral out of control if left unattended Approach 42 39 Customer Feedback Management Benefits US based retail chain Homebase invests in a periodic customer feedback gathering tool through quantitative and qualitative research to gauge customer satisfaction, pain points and inputs on product range and service. Homebase has structured a People, Process, Products based organization structure to consistently deliver on the promise to its customers and create long term sustainable revenues. Result Hello? Hello? Help! UGH Thanks Image sourced from Google
  • 43. up Critical operation that demands instant response or acknowledgement Calls for rectification and appeasement of grievance raised and settlement of complaint with the customer through remedial measures ACING THE CRM EXPERIMENT Instant acknowledgement of customer grievance creates a positive vibe with the customer by revealing company's readiness in addressing complaints With analytics, mapping customer data to provide personalized complaint management cements relationship with the customer Helps in crafting pleasant next-visit customer experiences and driving loyalty and profitability Approach 43 40 Customer Complaint Management Benefits A leading consumer electronics brand devoted significant efforts in developing a customer complaint management engine that could resolve customer queries or ticket raised swiftly. Reduction in operation costs with a centralized complaint management system that lowered average time for complaint resolution from 18 days to 48 hours. Result Customer Service support Sales info policy response question reply quality opinions information reviews survey satisfaction assistance complaint relation helpful
  • 44. Capillary offers an Intelligent Customer Engagement platform to retailers and consumer businesses - managing the entire life cycle of customer data from acquisition, analysis, insights and activations. We are the world's leading SaaS provider of end-to-end Multi-Channel Customer Engagement, Big Data Customer Intelligence, Clienteling, Real-time Loyalty and Social CRM solutions to 150+ enterprise customers - with over 10,000 locations and 75 Million shoppers who interact with our cloud platform.