It's All About Me: How Metro Is Personalizing Its Way To Growth


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dunnhumby and Metro presentation from the National Retail Federation's 2013 Retail's Big Show.

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It's All About Me: How Metro Is Personalizing Its Way To Growth

  1. 1. Itʼs all about me:"How Metro is Personalizing Its Way to Growth
  2. 2. Coalition Media"It’s all about me 1/18/13 2
  3. 3. Welcome"It’s all about me 1/18/13 3
  4. 4. Our themes" •  Meaningful brand engagement is contingent on a fully integrated business and brand strategy that drives loyalty. •  A loyalty program allows you to generate data to deliver a refined customer experience that generates a rewarding value propositon. •  Shifting from a multi-channel to omni-channel content and communications strategy will deliver relevence, redemptions and sales.It’s all about me 1/18/13 4
  5. 5. Canadian grocery market" Total CDN Grocery Spend" Total market Quebec and Ontario $83 billion" 63%" Western Canada 31%" Ontario 38%" Quebec 25%" Atlantic Canada 6%"Source:  Nielsen  MarketTrack  It’s all about me 1/18/13 5
  6. 6. Metro Overview " 832" 642" $12" Retail Locations" Food Stores" billion in revenue" Ontario" Quebec" 149 Conventional" 218 Conventional" 114 Discount" 84  Discount" 263 Grocery Stores" 77 Small format" 379 Grocery Stores"It’s all about me 1/18/13 6
  7. 7. Why Customer Centricity?"
  8. 8. Competitive Landscape" •  21% CAGR of sqft (06 to 09) vs 1.8% for industry sales •  New store formats emerging (Ethnic, Specialty, Discount, Pharmacy) •  Target & Walmart continue to grow their Canadian presence •  Very mature loyalty market in Canada – the average consumer has 14 loyalty cards in their wallet!It’s all about me 1/18/13 8
  9. 9. Majority of Consumers Shopping in both Banner Types" Source: Industry Tracking, November 2010. SuperTrack, August 2010. Shopping per banner type (in %, 2006 to 2010)" Note: Walmart in only included in Ontario as a discounter. Quebec OntarioIt’s all about me 1/18/13 9
  10. 10. Consumers Increasingly Looking for Value "34.0 2009" 2010" 2011" 2012"32.0 31.530.028.026.0 23.324.022.020.0 % Sold on TPR (1)  Source: Nielsen MarketTrack, Percentage $ Sales per TPR. Ontario GB+MM+DG, - ccdg Ontario Conference, October 20th, 2012. It’s all about me 1/18/13 10
  11. 11. It’s all about me 1/18/13 11
  12. 12. a company’s only asset Is loyalty to their customersIt’s all about me 1/18/13 12
  13. 13. dunnhumby puts the customer at the center of every decision
It’s all about me 1/18/13 13
  14. 14. It’s all about me 1/18/13 14
  15. 15. + 400 brands worldwide"It’s all about me 1/18/13 15
  16. 16. dunnhumby & Metro working together" •  Before 2009, Metro only had customer data in Ontario with Air Miles •  Customer-centric partnership began in 2009 with holistic vision •  With launch of metro & moi and dunnhumby as customer advocate and guide, the “why” behind the “buy” become clearer across the business •  Joint teams focused on bringing the voice of the customer to drive smarter decisionsIt’s all about me 1/18/13 16
  17. 17. Metroʼs Customer Focus"Metro is becoming We want to The creation of amore customer establish and reward program infocused across the maintain a QC and better Reward"enterprise." relationship with leveraging the Loyal Metro our customers coalition in ON were throughout their fundamental pillars of Customers" life cycle." this strategy."It’s all about me 1/18/13 17
  18. 18. Our approach " Attract & Reward our Make better Increase the 
 engage customers" business average customers" decisions basket & with data" frequency" +" +" =" Building long-term To shop in our stores To better understand our Increase Metroʼs 
 relationship through and encourage them customers and inform our brand value" their life cycle. to come back. business decisions.It’s all about me 1/18/13 18
  19. 19. More than Loyalty Programs " Insight Driven Brand Strategy built on proximity & personalization. " Executed Brand Strategy throughout the whole enterprise." Growing customer" value proposition through customer- centric business decisions."It’s all about me 1/18/13 19
  20. 20. New Brand Strategy"It’s all about me 1/18/13 20
  21. 21. Metroʼs Reward Program " A simple & engaging program ! Bonus offers at shelf! •  $1 spent = 1 point" •  Early reward redemption starts 
 at 500 points = $4" •  Bonus points on products at store"It’s all about me 1/18/13 21
  22. 22. Metroʼs Reward Program " Personalized coupons! •  Coupons for specific products based on customer purchase behaviour" •  Multiple media platforms (every week)"It’s all about me 1/18/13 22
  23. 23. Metroʼs Reward Program " Rewards sent! every 3 months! •  Savings on my grocery bill" •  4x per year"It’s all about me 1/18/13 23
  24. 24. In store "It’s all about me 1/18/13 24
  25. 25. Earning the Support of Store Operations"It’s all about me 1/18/13 25
  26. 26. A New Platform for Integrated Promotions" Leveraging the program as a promotional platform"It’s all about me 1/18/13 26
  27. 27. Leveraging Social Media" The #1 Grocery Facebook Page in Canada!"It’s all about me 1/18/13 27
  28. 28. Leveraging the Coalition in Ontario"It’s all about me 1/18/13 28
  29. 29. Using the data to make better decisions"the intersection of segmentations leads to valuable insights lifestage profitability primary channel demographics, what they buy brand choice, packaging preference, preferred format (supermarket, express, weight of purchase gas station, online) lifestyles promotional promiscuity shopping motivations behind cherry picking deals, bulk buying to larder fill shopping behaviour habits share of shopping, “you are what you do” recency & frequency brand advocacy shopping participation in extensions trips missionsIt’s all about me 1/18/13 29
  30. 30. Enhance the client experience" Targeted  promo1ons   What  products  should  we  promote  to  reach  our  loyal  customers?   Flyer  op1miza1on   How  do  we  maximize  reach  &  associated  basket  spend?   Category  management   What  is  our  op;mal  offer  and  planogram?   Price  op1miza1on   The  right  price  for  the  right  product  for  the  right  customer.   Improved  Value  Proposi1on  for  our  Loyals  It’s all about me 1/18/13 30
  31. 31. Earning the Support of Store Operations"It’s all about me 1/18/13 31
  32. 32. Moving Multi-Channel to Omni-Channel" Single  Channel   Mul1-­‐Channel   Cross-­‐Channel   Omni-­‐Channel  Customers experience a single 
 Multiple touch-points - still Multiple touch-points as part of Brand experience, 
 touch-point" acting independently" the same brand" not a channel within a brand" Retailersʼ channel knowledge Retailers have a ʼsingle view of 
 Retailers leverage their single and operations exist in the customerʼ but operate in 
 view of the customer in technical & functional silos" functional silos" coordinated and strategic ways" The IDEAL"It’s all about me 1/18/13 32
  33. 33. Making it happen" •  Ensuring the integrity of all data being used •  Changing the way CIO’s and CMO’s work together •  Building an efficiently connected internal enterprise system •  Supported by Dunnhumby Customer Insights & IT Center of Excellence •  Demonstrating clear ROI on the investmentIt’s all about me 1/18/13 33
  34. 34. 2013 Focus" •  Continue to focus on retention to foster long term engagement and battle fatigue within the loyalty lifecycle. •  Optimize the use of customer data to strengthen the relevance & performance of our commercial strategies in an Omni Channel environment. •  Futher refine and customize our direct communications based on new Customer Segmentation Model. •  Maintain the same level of organizational enthusiasm and commitmentIt’s all about me 1/18/13 34
  35. 35. Summary" •  Loyalty is an integral part of our growth strategy. •  Customer data in all key business decisions is imperative to succeed. •  Organizational engagement is key to the success of a customer- centric strategy.It’s all about me 1/18/13 35
  36. 36. Q&A" Marc Giroux" Marc Fischli" Chief Marketing & COO, International Markets! Communications Officer!It’s all about me 1/18/13 36