The OfficeMax Experience in México …

CALA 2007 OfficeMax’s Journey into Loyalty

Ricardo Martinez
Marketing Manager
OfficeMax Mexico
Mexico City

Agenda
OfficeMax Mexico Overview
Steps to developing a program
MaxPuntos Overview
What we are learning
Where will the program go
Incrementa/SHC Direct
Questions & Answers

OfficeMax Mexico
Established 1996
Retail, Online, Catalog Sales
66 stores and growing
Presence in all major Mexico cities

Steps to a formal program
Understand the market
Understand customer perception of our market place
Establish Goals
Examine ROI
Construct a program

Mexican Office Products Market
Independent Corner Paper and Copy stores (Papelerias)
“ Big Box” retailers taking customers from both independents and specialty office products chain
No clear customer loyalty to any supplier

Mexican Office Products Market from the Customer Perspective
Mid Sized Business
Administered Programs/Planning
Tend to drive minimum and maximum inventories
Stock piling
Mostly Structured
Frequent contact with supplier, but driven remotely or sometimes through 3rd parties
Micro & Small Business
Newly emerging/Instable
Little planning
Aware of needs/rapidly changing
Mostly Improvised
More frequent contact with suppliers, mostly personal or direct
Customer behavior with office products and paper

Mexican Office Products Market from the Consumer Perspective
In general, tend to establish a convenience and operationally based relationship with suppliers
There is little loyalty to any particular suppliers
Buying Influencers
By Price
By Selection
By offer or promotion
By location
By specialty
By Infrastructure support
By customer service
By Advertising
By Image
By Quality
By Strategy & Negotiations
Business Market Office Products & Paper Suppliers Cold/Distant Connection – merely functional

Goals Established
Learn customer purchasing behavior
Learn appropriate customer segmentation basis
Identify purchasing customer and connect to business entity to establish personal relationship with buyer
Establish a communication structure to increase average ticket and frequency
Build a defense against competition and establish customer loyalty to OfficeMax
Establish an immediately available benefit associated with all channels of customer interaction

Where to begin?
Successful program in U.S. – MaxPerks
Focused on small business and teachers
Program structure not transferable to Mexican market place
Business customer focus equally important in Mexico, micro, small and mid-size
What benefits will work to drive business customer loyalty, and how can we establish a communication relationship with these customers
Need to identify the best segmentation scheme, and identify other potential customer segments outside of business customers
Keep the program basic and learn first

Program Challenges
In house database of business contacts aging, and focused only on business name not person making purchases
U.S. Program name didn’t translate
Program cannot rely principally on direct mail communication as in the U.S.
POS system limitations
Integrate private label credit card program
Integrate all purchasing channels
Build a solution easy for the customer and not so easily replicated by competitors
Protect redemptions against product returns

Planning and Implementation
Engaged with SHC Direct/Inrementa
Develop program structure
Model costs and ROI projections
IT Planning and Implementation
Create Program Branding
Build Pilot Plan
Refine Launch plan
Launch program chain wide

Program Structure
Relate Points to Pesos
Points for every purchase (1 point for every 100 pesos)
Double points in OfficeMax brand products (2 points for every 100 pesos
Triple points for CopyMax purchases (3 points for every 100 pesos
Show earnings and balance on receipt
Allow members to pay in points in real time

Introducing MaxPuntos
Points earned with every transaction
Enroll to use your points
Redeem real time, in store
Receive additional benefits for membership
Simple and easy communication

Poster área de cajas y CopyMax El poster se coloca en el escritorio de cajas y CopyMax

Manteleta CopyMax La manteleta es de uso exclusivo de CopyMax y coloca sobre las mesas de espera o en el escritorio del área.

Poster / Manteleta En CopyMax debemos instalar el poster y la manteleta juntos para tener un impacto mayor

Tensor para áreas de filas y muebles Los 4 tensores que se enviaron a cada tienda se instalan cada uno en fila de cajas, fila de CopyMax, área de muebles y el último movible entre las áreas de electrónica y cómputo.

Stopper para promociones de dobles puntos Los stoppers se utilizan para delimitar el área de productos marcas OfficeMax (OfficeEditions, MaxBrite, OfficeMax) y promover dobles puntos en su compra.

Zona Dobles Puntos El objetivo del stopper es resaltar productos de marca propia utilizando adicionalmente un impreso en el piso que dice “aquí se ganan dobles puntos” (cont.) Stopper dobles puntos “ Aquí se ganan dobles puntos”

Program Introduction
Monterrey Pilot August – November 2006
Phased Launch December & January 2007

Why pilot the program first?
Limited & isolated market area with multiple locations
Solve operational bugs before system wide launch
Learn associate reaction
Learn customer reaction
First line analysis to validate model
Some operational issues identified, but no structural program changes made

What are we learning?
All of our goals are being realized
Learn customer purchasing behavior
We are seeing differences in category purchase across program enrollees
Learn appropriate customer segmentation basis
Business still important, emerging household segment
Identify purchasing customer and connect to business entity to establish personal relationship with buyer
We are enrolling the actual buyer connected to the business

All of our goals are being realized
Establish a communication structure to increase average ticket and frequency
We have a large percentage of the database providing email addresses
Build a defense against competition and establish customer loyalty to OfficeMax
Building specific targeted strategies using purchase behavior data to deliver relevant offers and cross sell promotions
Establish an immediately available benefit associated with all channels of customer interaction
Points are communicated with all channels of purchase and service

Customer enrollment depends first on the associate promotion of the program
Establishing enrollment contests in the stores for our associates
Contests are focusing on enrollment quality
Valid e-mail address
Complete member demographics
Training, training, training
Sales and transaction penetration are key measures of success for store managers
Associate fraud can be quickly identified and prevented

Where will the program go?
Leverage supplier access to customer list for promotions
Leverage e-mail, direct mail, telemarketing messaging for upsell, cross sell and activation
Develop additional benefits for membership using OfficeMax and other non-competing merchants

Thank you
Ricardo Martinez
[email_address]

The OfficeMax Experience in México …

by customersforever on May 13, 2007

Accessibility

Categories

Tags

Upload Details

Usage Rights

3 Embeds 10

Statistics

The OfficeMax Experience in México … — Presentation Transcript

http://www.slideshare.net	8
http://74.125.93.132	1
http://webcache.googleusercontent.com	1