How CRM marketing will save retail


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How CRM will save Retail. Creating the omnichannel customer experience that will increase customer value. Illustrated by a case study in DIY (Praxis).

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How CRM marketing will save retail

  1. 1. RSLT Marketing HOW CRM WILL SAVE RETAIL Illustrated by a case study for DIY (Praxis) Manon Snijders (Marketing consultant & interim manager @ RSLT Marketing) © Manon Snijders
  2. 2. CRM will create new added value for customers and increase profitablity. Threats for Retailers Praxis must create new added value for customers • New entrants: Amazon & to offer DiY. • Showrooming: customer visits store but orders • Change from product-oriented to customer-need-oriented. online (at lowest price) • Inspire and engage customers: deliver service, fun. • Online players very competitive in price, assortment, • Be the first place where people will go when they want to 3 hr delivery, availability, convenience. improve their home and where customers interact. • Customer Lifecycle Management: know your customer and be relevant, across touch-points. • Build brand loyalty on an emotional level. Building blocks for CRM to deliver the brand promise & increase brand preference, customer loyalty and profitability 1 KPI’s: Mission: • Brand preference “To help and inspire our customers to create the home of their dreams. ” • NPS Brand promise: Doe het zelf, Doe het samen • CLTV Delivering the 2 Knowing the 3 Reaching the 4 Building blocks will customer customer customer be elaborated on experience next slides 5 People, Processes, Technology 2 © Manon Snijders
  3. 3. In order to create focus, 6 strategic questions must be answered. Thesegmentation and customer journey approach will help guide these choices. Mission: “To help and inspire our customers to create the home of their dreams. By being where our customers are, powered by the largest DIY community” Key strategic questions Some possible answers (not exhaustive)1 Bicycles & other Home & garden Home & garden Inspiring & Which market is Praxis in? Do-it-Yourself? discounted improvement? styling? entertaining? items?2 Intratuin, Gamma & Amazon & Interior Who are Praxis’ competitors? Hornbach? Ikea & Contractors? designers? Trendhopper?3 Who are Praxis’ (core) customers? Trend-conscious Interior DiY-ers? Self-expressers? Contractors? delegators? designers?4 What does the Praxis brand Do-it-Yourself or Inspiration & Sharing with (Technical) stand for? Do-it-Yourself? let some-one self-expression? friends & family? Experts? else do it?5 What is the differentiating Most inspiring Most competent Low price, value Choice of shops & staff + best for money, service, together Convenience? customer value proposition? workshops? information? discounts? or DiY?6 Separate Partnerships What business model shopping from with Workshops, Customer Flagship stores? should Praxis follow? delivery / pick- contractors, education? intimacy? up? furniture,… © Manon Snijders
  4. 4. We need to know the customer needs throughout the customer lifecycle, in order to be more relevant to the customer and add more value. Customer need for a DiY project is strongly related to lifestage & life-events Young Mature Elder Kids Young Student Single Couple Family Family (empty nest) Redecorate from Redecorate to Moving out of Moving to first More money for Decorate baby Moving to High spending,e.g. baby room to teen room the house, getting appartment, home improve- room, bigger home power, luxury, kids room first tools. Low more spending ment. Bathroom, install “traphekje” possible move to spending power power garden, etc… appartment Once a customer need arises the customer will go through the customer journey with changing needs in each phase Orientate Customer need for Find inspiration Select & Buy Install Use & improve a DiY project Design Compare Ideally we would like to know the following about the customer • Attitude to DiY (“lifestyle segment”) • Attitude to home • Satisfaction & loyalty • Lifestage & Household composition • Current & planned projects • Current customer value and CLTV prospects • Life events: current and anticipated • Buying behaviour & preferences • Contact info & preferences (moving home, having a baby, buying a • Living conditions (home ownership, house) garden,…) 4 © Manon Snijders
  5. 5. Customer segmentation research will give insight into preferences and potential of customer groups. • Mostly between 20-45 years• Mostly between 30-55 years • 72% female• 58% female Attitude to home & • HI spending: €400 / year• HI spending: €800 / year home improvement • Main media: Facebook, Pinterest, (mobile)• Main media: Facebook, Pinterest, internet, internet, interior magazines interior magazines, iPad Expressive • Spends a lot of time getting inspiration.• Spends a lot of time getting inspiration. • High value on friends’ opinions• High value on friends’ opinions • Regularly makes (smaller) changes to• Enjoys the selection & designing part, but Designer Creative home. does not like to get involved in the technicals. 18% 38% Attitude to actually doing it myself Prefer if Love to someone else Do-it-Myself does it Delegator Handyman 15% 29%• Mostly between 30-55 years • Mostly between 20-45 years• 54% male • 89% male• HI spending: €600 / year • HI spending: €600 / year• Main media: Comparison sites, HtH, TV • Main media: Comparison sites, HtH, DiY• Cost conscious, values convenience, speed. Functional magazines, Expert sites & forums• High value on expert’s advice & contractors. • Good quality tools are important.• Prefers to work with contractors. • Is the expert (and proud of it). Listens to• Gets confused from many options. other experts, not sales people.• Interested in the result only, feels the project itself and the technical details are tedious. 5 © Manon Snijders
  6. 6. Praxis should be relevant & engaging for each customer by tailoring proposition, messages and channels to their needs… Relevant: Offer relevant products & propositions to each customer needs. Provide a differentiated treatment in message, moment, medium and channel based on customer value, history, personal needs & personal events Engaging: Engage with our customers. Inspire them, facilitate sharing among friends & family and surprise them.Example Segment Example Interactions during Customer Lifetime (1) Designer Test: what bathroom Try our bathroom Exclusive stylish accessory Answer plumbing Show us the result and type are you? design app with your Praxis VIP card question win a kitchen make-over! News: the newest Invite to instore design You can easily order Upgrade to Gold and get 1 free fall trends workshop from your saved design expert visit during your project. Handyman Try the newest tools in Test our new drills and Invite to annual tool Get Expert badge for answering Show us the result and become our store! tell us what you think! innovation fair 20 questions on Forum. Klusser van het Jaar! Invitation join our Get 10% discount with Install your bathroom to your liking Share your learnings with our expert forum (as expert) Praxis VIP card! with our huge range of kits & tools. experts on our superuser forum. 6 © Manon Snijders
  7. 7. … that will differ across the customer’s lifecycle.Across a customers’ lifecycle: Have a long term view – maximizing contribution per customer over its’ lifetime, with a holistic view on customers /household Example Interactions during Customer Lifetime (2)Personal events Kid Teenager Student 1st household Living together Move Birth of child Start-set “Garden & Student tools balcony Customer Value discounts design” Tips & tricks “Moving” for small Latest trends proposition repairs in teen rooms Latest trends Young DiY Latest trends in babyrooms academy in bathrooms & kitchens Installing “traphekje” Praxis Platinum Card for high- intensity klussers 7 © Manon Snijders
  8. 8. Customer insights are the starting point for designing the bathroom customerjourney… “Kids are growing up, “Saw very beautiful so we would like to “Moving home” bathroom at a friend / have a second sink” in a magazine” “So proud: finally Customer need “What is the most finished it and it looks for new comfortable shower?” great!” bathroom “Help! “My friends will be so So many options!” jealous” Orientate (First) Use & Find inspiration “What will it look improve Design like”? “Need matching Compare accessories” “Do-it-myself or partially delegate?”“I enjoy installing the “A bathroom is atiles, but am worried major investment” about doing the plumbing myself” Install Select & Buy “I do not want to walk through the store(s) “If I get stuck, I would endlessly to find like to get some everything” expert advice right away” “What type of kit do I CUSTOMER INSIGHTS “Been working for 7 need & how much?” (dreams, fears & frustrations) “Not sure how to “What should I watch weeks now, this install the mosaic for when selecting the project seems to be tiles” shower cubicle?” 8 never-ending” © Manon Snijders
  9. 9. … leading to omnichannel services and communications. Be exposed to friend’s Do a “What type of Designing bathroom Get discount coupon See latest trends online designs & trending bathroom style fits you” with design wizard + for bathroom on Mobile (site, app) & in store bathrooms via test & post result on save designs in personal when visiting store. Facebook, Pinterest Facebook. account (app, site). Be reminded there is a Expert design work- Customer need special offer on the shops by top designers for new radiator from my in Megastores. bathroom design. QR codes next toPost reviews on Praxis’ Plan project, materials, Orientate radiators leading toproducts and services calculations, (phased) (First) Use & Find inspiration video on howon Google+ delivery improve Design to choose a radiator CompareShare end-result via Order my saved design Include relevantFacebook / Pinterest to all-at-once instore or services in customerget friend’s admiration online. All necessary journey, e.g. ‘klus- materials included container’ & ‘werkspot’ automatically. Install Select & Buy Finance bathroom Get the tools. Course for installing Phased delivery or tiles, plumbing, … @ Call Praxis expert for Ask for advice on Forum In-store pick-up “Praxis doe het zelf Access relevant how-to academy” help or schedule a (bathroom community) video’s via site or apps. home visit. or Twitter 9 © Manon Snijders