Smart Marketing - Makro

S mart marketing
I nformation & communication @ makro

H ij kent zijn (goede) klanten
H ij kan het goed uitleggen
H ij is goed georganiseerd

information
communication
organisation
Wants & Needs products Buying behaviour relation life FRAT decision drivers one to one moment mood objective lean flexible efficient

MAKRO Part of METRO group (MediaMarkt, Saturn, Galeria Inno, ...)
MAKRO : 6 outlets in Belgium Worldwide 600 outlets in 32 countries
“ For professional customers & end consumers”

Collect Data Analyse Data Use Data COLLECT ANALYSE USE

Signaletic : Customer X, lives in Antwerp . He belongs to the branch Horeca. He has a restaurant, Belgian kitchen with menu’s between 25€ and 45€. Invoices : Customer X visits our store in Deurne 1x a week and spents on average 424€. He regularly buys meat, fish, fruits & vegetables and occasionaly he buys wine. The customer knowledge approach collect IDENTIFY DIFFERENTIATE

Segmentation > understanding analyse Customer, not buying New prospects First time buying Growing versus Declining | product type Customers Segmentation Understanding

HORECA TRADERS COMPAGNY or OFFICES END CONSUMERS NEW CUSTOMERS LOST CUSTOMERS EXISTING CUSTOMERS  REGULAR  IRREGULAR use The customer knowledge approach ACQUISITION UPSELLING FREQUENCY REACTIVATION

Strategic flow Set up / Cleansing / enrichment / updates > segmentation Brand essence / audience messaging / compelling content > needs & objectives Action flows / connectivity / closed the loop / testing / metrics > ROI IDENTIFY DIFFERENTIATE CUSTOMIZE INTERACT

P roces driven relationship communication

About MAKRO folder

Regular circulation coverage of Makro Folder based on date last visit
Variable selection with an average of 4 folders, 8 weeks after date last visit
Standard selection of Horeca and Trader customers and
Standard selection of new customers for 1 month
Mail approach and model inefficient for sporadic customers; no frequency builder
Low frequency customers receive 4 folders right after their visit, whereas they don’t visit us …
… but no folder activates them when they come back.
visit visit visit Circulation 2009

Optimization of circulation
Maintain approach for Horeca and Trader customers
Integrate new customers for longer period
Normal circulation for regular customers
> 6 visits last 12m
Target customers with increasing frequency
=<6 visits last 12m but >= 2 visits last 2m
Target low frequent customers before probable visit
Eg : Irregular customer with an visit interval of 1 visit every 3 months will receive folder at 1,5 months after last visits
Basket or frequency approach by personalized coversheet
Circulation 2010

Cover Sheet

Basket
Objective: increase basket by offering each folder 1 promotion on products/categories which the customer does not buy
Costs discount only if extra sales is generated
Each customer is screened on the basis of 2 to 5 offers with a postulated priority.
Not buying = selection
If buying all products (top customer) = generic promotion
Frequency
Objective: increase frequency by offering 1 promotion on basket or category
Costs discount only if extra visit and sales is generated
Promotion in % on total basket: e.g. -10% on basket or
Promotion in € on min. value in category: e.g. -10€ / 100€ non food
Cover Sheet

Detailed metrics and learnings used in test to increase frequency

Test if we could get a higher activation by a more selective approach
Personalised mass communication (folder & coversheet)
VERSUS
Multiple personalised communication (DM / postcard / folder with or without coversheet)
Testing

Testing Summer mailing - coversheet With and without promo

Testing Summer maling - postcard With and without promo

Testing Back to school mailing – coversheet With and without promo

Testing Back to school mailing – postcard With and without promo

Methodology
We look at the respons but also ticket size (food & non-food)
Ticket size Nonfood can be an interesting trigger.
We do the test 3 times = 3 folder periods (F16, F17 & F18)
Then we can make clear conclusions on
- target group
- triggers
- potential live time value
Testing

KPI’s
The results are compared on the basis of:
Number of respons and respons %
Total sales, sales Nonfood, sales Food and AVG ticket size per respons
Number of visits and AVG ticker size per visit
Respons = customers who have received a coversheet, postcard or folder and that have visited Makro in the folder period
Testing

Critical Success Factors
Information about individual shopping pattern actively used in communication

thanks

Smart Marketing - Makro

by bpost on Sep 02, 2010

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Smart Marketing - Makro — Presentation Transcript