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Maxxing Solution Overview


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Maxxing is a division of Mapping Group which has served the content management and workflow needs of 2,500 worldwide customers for over 22 years. Maxxing’s Intelligent Promotions SuiteTM has planned, …

Maxxing is a division of Mapping Group which has served the content management and workflow needs of 2,500 worldwide customers for over 22 years. Maxxing’s Intelligent Promotions SuiteTM has planned, designed, executed and refined over 100,000 targeted marketing campaigns from 4,000 retail outlets generating 800-million promotions that have reached over 25-million consumers through a variety of multi-channel distribution methods including in-store devices, mobile applications, location based services, social networks, digital advertising and coupon aggregators.

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  • 1. Solution OverviewJohn SeanerGeneral Manager AmericasSeptember 2, 2011
  • 2. Company HighlightsEstablished: 2008 as a wholly-owned subsidiary of Mapping GroupParent Company: Serving 2,500 customers of all sizes, industries and geographies with enterprise content management and workflow solutions for 22 yearsAccolades: Our offer management and promotions lifecycle solutions have created, executed, analyzed and refined over 100,000 targeted marketing campaigns from 4,000 retail outlets generating 800mm promotions that have reached some 25mm consumersIndustries Served: Supermarkets and grocery stores, mass merchants, department stores, general merchandise and apparel retailers, drug stores and pharmacies, specialty retailers, internet retailers and restaurants and hospitality providers 1
  • 3. Notable Reference Customers 15,000 hypermarket, grocery, 900 women’s footwear and apparel discount and convenience stores in stores in 20 countries with $5 billion 55 countries with $122 billion in in revenues revenues 350 grocery stores in 2 countries with 20 music stores in 1 country with $45 $3.5 billion in revenues million in revenues 75 grocery stores in 1 250 shoe stores in 1 country with country with $12 billion in $450 million in revenues revenues 100 casual restaurants in 6 220 consumer electronics stores countries with $265 million in in 1 country with $750 million in revenues revenues 70 children’s apparel stores in 30 men’s apparel stores in 1 country 6 countries with $125 million with $51 million in revenues in revenues 1,000 grocery stores in 84 supermarkets and hypermarkets in 6 countries with $12 6 countries with $10 billion in revenues billion in revenues 2
  • 4. Family of Solutions Intelligent Promotions SuiteTM ‒ An end-to-end customer loyalty, offer management and promotions lifecycle solution Intelligent Promotions Suite MarketMover EditionTM ‒ A complete turnkey customer loyalty, offer management and promotions lifecycle solution specifically developed for the needs of independent retailers Real-Time Intelligent PromotionsTM ‒ Enhances existing POS, customer loyalty and/or campaign management systems by providing marketing professionals with the tools to benefit from real-time targeted offers and intelligent promotions 3
  • 5. Challenges in the Retail Industry Effects of 2007-2008 global economic meltdown continue to restrict consumer spending Pronounced 15% to 45% decrease in customer loyalty over the last 3 years Private labels are not reverting market share to global brands as they typically have in past economic recoveries Lower margins are now forecasted for most product categories due to increase in commodities and materials costs Emergence of a fickle consumer demand chain as a results of inflationary pressures and decrease in real wealth Continuing economic volatility due to world events is proving challenging to even short-term planning and growth Declines in same-store sales and stock prices 4
  • 6. Promotions Have Helped Mitigate These Challenges 81% of all consumer spending over the last 3 years has revolved around the use of coupons and promotions (NCH) 78% percent of consumers indicate that price and promotion is now the most important factor in buying decisions (IBM) Consumers spend 56% more on a market basket of goods with coupons than without coupons (IBM) 57% of consumers would not have purchased an item without an associated promotion or coupon (NCH) Consumers will repeat purchase an item 91% of the time if they receive a promotion connected with that item (NCH) 5
  • 7. Marketers Struggle with Traditional Promotions Efforts True effectiveness of current trade promotions practices is consistently debated “One-size-fits-all” of mass promotions and manufacturers coupons leave money (i.e. margin) “on the table” and fails to create lasting customer affinity Typical promotions approaches surrounding new retailers, stores or products fail to initiate the “awareness/trial repeat/upsell” cycle Lack of multi-channel coordination and consistency with promotional campaigns is creating consumer dissatisfaction Confusion as to the role and true effectiveness of emerging marketing channels is distracting Capabilities to share promotions results and consumer insight with trading partners are severely lacking 6
  • 8. Targeted Offers Have Greater Impact Increase in Revenue and Market Share -Increase Revenue  Consumers purchase an average of $131 per basket of goods with mass promotions and $241 per basket of goods with targeted -Sell Higher Margin promotions (IBM) Products  Targeted coupon redemption rates are 4 to 5 times higher than those of conventional mass promotion efforts (Ipsos) -Decrease Time-to-  Retailers can experience an increase of almost 10% in customer loyalty with a targeted offer deployment strategy (Clarkston) Market  A 5% increase in customer loyalty can result in a 25% increase in -Attack New Markets profitability (McKinsey) Decrease in COGS and Operating Costs -Reduce Inventory  Acquiring new customers can cost as much as 5 times that of regaining an existing ones (CMO Council) -Reduce Logistics  A 10% increase in promotions effectiveness can lead to a 15% to Expenses 20% decrease in overall marketing costs (Clarkston)  With precision analysis on consumer trends, developments and -Reduce Sales and spending patterns during targeted promotions campaigns, sourcing Marketing Expenses and merchandising expenses can be reduced by over 10% (BCG)  Excess inventory, stock outs and demand volatility can effectively be -Reduce Direct mitigated by targeted promotions and the market intelligence learned through their execution (Cap Gemini) Materials Expenses 7
  • 9. Targeted Promotions Capabilities are Not Optimal Efforts via customer loyalty programs have largely failed to increase brand affinity and drive desired consumer behavior Reliance upon marketing agencies, outsourcing firms, or coupon services do not allow companies to “get close” to the customer Micro segments are dramatically decreasing the effectiveness of traditional promotions efforts Lack of real-time capabilities to create and adjust offers, as well as deploy new promotions in reaction to dynamic events have an adverse impact upon the enterprise Multi-channel deployment is typically inconsistent in offer, price, limitation, etc. and leads to customer frustration Effects of mismanaged promotions efforts have far- reaching financial impacts upon business operations 8
  • 10. Maxxing Streamlines the Promotions Lifecycle Plan Analyze Model MAXXING Intelligent Promotions SuiteTM Manage Create Execute 9
  • 11. Maxxing’s Solution Model Process View 10
  • 12. The Maxxing Intelligent Promotions SuiteTM 11
  • 13. Promotions Definition Plans, defines, configures and tests targeted promotions campaigns and mass offers Defines offers at over 90 levels including: ‒ Customer source, profile or history ‒ Product brand, group, category or attribute ‒ Event, time, location or store ‒ Shopping cart content or value ‒ Saved shopping cart or wish-list Triggers over 60 types of offers, rewards, rebates, discounts or sweepstakes based on conditions and limits Accommodates customer-specific offer levels and criteria Includes guided wizards and macros to automate and simplify frequently-used processes 12
  • 14. Promotions Creation Intuitive design tool to create the communications media for targeted offers Built-in templates along with the ability to import artwork and graphics from popular desktop publishing software Easily adds dynamic fields (price, discount, URL, 2d barcodes, short codes, etc.) directly into marketing media Provides the ability to develop, organize and maintain a marketing repository: ‒ Guidelines and templates ‒ Brand assets and product information ‒ Deployment media 13
  • 15. Promotions Execution Advanced messaging engine that operates in several formats: ‒ Corporate-level or store-level or both ‒ Real-time or batch mode Coordinates and deploys offers through a variety of channels: ‒ POS, i-POS, kiosk, handheld device and smart-cart ‒ Mobile phone and tablet computer (Apple, Android and Blackberry OS) ‒ Social networks and location based services ‒ Digital advertising and coupon aggregators ‒ 1D and 2D Barcodes, EPC RFID and NFC ‒ Conventional print, email, mail, fax or interactive voice response Automatic authentication prevents coupon fraud or consumer usage inconsistent with defined conditions or limits Triggers redemption and reconciliation of promotions with trading partners 14
  • 16. Targeting and Segmentation Rules-based analytical engine used to identify customer segments: ‒ Customer Lifetime Value (CLV) ‒ Recency, Frequency and Monetary Value (RFM) ‒ Recency, Frequency and Average Purchase (RFA) ‒ Recency, Frequency and Profit (RFP) ‒ Small, Medium, Large and Non Buyer (SMLNB) ‒ Respondent Customer Rate (RCR) Models custom targeting criteria such as scoring based on: ‒ Psychographics ‒ Geography and D ‒ Demographics ‒ Customer behaviors ‒ Customer transaction history 15
  • 17. Campaign Management Comprehensive budgeting, forecasting, scheduling and workflow features Real-time campaign monitoring with notifications and alerts Evaluates historical campaign conclusions, consumer actions, behaviors and patterns, then simulates the execution of promotions to measure potential impact Predictive modeling tools optimize offers based on promotion distribution and sales channel as well as the effect of multi- selling, up-selling, cross-selling and product cannibalization Analytics dashboard with over 40 standard reports, graphical capabilities and drill-downs, including customer activity, promotion effectiveness, uplift, brand performance, gross margin and return on investment 16
  • 18. Customer Loyalty Collects, organizes, manages and analyzes all vital customer information Allows the creation of customized loyalty programs by defining guidelines, conditions, tier levels and rewards Includes a rules-based framework for properly processing point accruals, redemptions, tier changes and return credits. Easily integrates with POS systems, call centers, kiosks, smart carts, mobile devices and web sites 17
  • 19. Trading Partner Collaboration Facilitates the sharing of customer insight and campaign results among trading partners in an effort to improve promotions effectiveness Provides a uniform understanding of daily customer demand, buying patterns, emerging trends and competitive pressures Trading partners can collaborate on customer segmentation, targeting and joint-campaign activities Suppliers have the ability to configure offers and integrate them directly into a retailer’s environment Facilitates the maximization of trade promotions funds 18
  • 20. Key Operational Benefits Increases Customer Loyalty, Shopping Frequency and Basket Size through the use of targeted promotions based on real-time customer behavior and the ability to react to store-level trends as they emerge Improves Sales, Product Category Pricing and Margins through the ability to directly control marketing initiatives and the continuous monitoring and adaptation of promotions campaigns Accelerates Response to Real-Time Merchandising Priorities and thus reduces the costs of excess inventory, volume surges, out of stocks and markdowns Optimizes Private Label Opportunities by stimulating demand and maximizing profits Facilitates Customer Insight Sharing and Collaboration between trading partners to effectively plan targeted promotion strategies, budgets and campaigns Redirects and Repurposes Trade Promotions Funds toward highly- influential targeted marketing efforts that can be accurately measured 19
  • 21. Key Marketing Benefits Reduces Core Marketing Costs by refocusing marketing spending on higher performing, targeted promotions and reducing the need for expensive mass marketing communication efforts whose effectiveness cannot be accurately measured Lowers Operational Marketing Costs by minimizing dependence upon expensive and frequently ineffective coupon services as well as eliminating coupon clearinghouses through an automated redemption process Extends Marketing Reach and Improves Conversion Rates by utilizing each customer’s preferred communication channels Increases Promotions Speed and Frequency by streamlining the marketing process and accelerating the development of promotions campaigns Reduces Competitor Visibility compared to traditional mass promotions that expose advertised prices or coupon values and triggers competitor reactions Instantly Addresses Competitive Offers through the ability to react to pricing pressures and either match or beat competitor offers within minutes 20
  • 22. Superior Customer Results Increase in Revenue and Profitability -Increased Revenues 18% to 80% offer redemption rates depending -Increased Category upon distribution channel Sales Average 9% uplift on overall sales -Increased Category Margins Average 14% increase in category sales -Increased Offer Average 23% increase in category margins Redemption Rates Decrease in Costs Average 14% increase in customer loyalty -Reduced Customer Average 21% increase in customer retention Defection Average 16% increase in frequency rates -Reduced Marketing Costs Average 31% reduction in marketing costs 21
  • 23. Comparative Advantages Real-Time Capabilities react to trends and changes in consumer shopping behavior Widest Range of targeting method, offer types, deployment channels and reporting capabilities Flexible and Adaptive System Architecture that easily integrates with existing enterprise software and hardware Rapid Implementation in 90-days with preconfigured templates based on best practices as well as administrative controls and process frameworks that map to your current business Low Total Cost of Ownership with high usability, proven scalability, superior reliability and low support requirements Quick Return on Investment from pronounced impact on organizational effectiveness and operations 22
  • 24. Professional Services We measure our success by how quickly and efficiently we put our enterprise solutions to work for our customers Our team employs consultants, educators, and technical support staff dedicated to maximizing return on investment We understand that the key to a successful business lies with establishing a life-long partnership with a team that can ensure a customer’s financial and organizational growth Implementation, application and technical consulting, as well as training, education and customer support services are complemented by our partners 23
  • 25. Maxxing Satisfies all Customer Decision Criteria Financial stability High-performance company Retail-centric vision Superior customer results Large investment in R&D Comprehensive solution functionality Flexible solution architecture Exceptional professional services Large network of partners Validation by industry analysts and associations 100% referencable customer base 24
  • 26. Questions? John Seaner Vice President & General Manager Americas Maxxing, Inc. 1501 Broadway, 12th Floor New York, NY 10036 +1 646-571-2077 (Office) +1 267-247-6323 (Mobile) 25