Debenhams Maps In-store Service to Customer Communications, Boosting Loyalty & Sales


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The UK’s 2nd largest retail department store by market share implements Neolane
to boost customer direct marketing and build loyalty in a competitive market

Business Need: Improve loyalty and sales
by moving from mass communications
to personalized relationship marketing

Published in: Business
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Debenhams Maps In-store Service to Customer Communications, Boosting Loyalty & Sales

  1. 1. Debenhams Maps In-store Service to CustomerCommunications, Boosting Loyalty & Sales Customer name: DebenhamsThe UK’s 2nd largest retail department store by market share implements Neolane Industry: Retailto boost customer direct marketing and build loyalty in a competitive market Business Need: Improve loyalty and sales by moving from mass communications to personalized relationship marketingDebenhams is a British retailer with Neolane conversational marketing “Our email conversionannual sales of designer clothing, beauty, technologyhomeware, gifts and electrics exceeding rates are up 75% and Debenhams considered implementing£2 billion (approximately $3.2 billion). The enterprise marketing software. In trials, email-driven salescompany operates 167 department storesin the UK, Ireland and Denmark, has 61 response-rates and re-activity rates improved volumes are up 200%.” significantly and opt-outs fell; all enablingfranchised stores across 24 other countries marketing to prove its business case.and also offers customers fully transactional Robert Unsworth, head ofwebsites at and trading finance and commercial “We selected Neolane because it offers one-at insight at Debenhams to-one, cross-channel customer marketing centralized for the entire enterprise on aThe retail sector is highly competitive and single platform, said Unsworth. “Neolane ”Debenhams is committed to offering greater had everything we sought and proved it invalue, a wider choice and excellent service. the trials. ”So when it comes to customer marketingcommunications, shouldn’t they too reflect One concern Debenhams had in investing in athe same standards of service—and be solution was the up-front IT and licensing costs.personal, relevant and engaging? Available in SaaS mode, Neolane enabled a low-cost, low-risk entry with the advantage of OBJECTIVESThe challenge: falling campaign results offering scalability to full implementation. • Move from mass customerDebenhams has for many years offered campaigns to individualized,customers the opportunity to receive direct Full implementation included integration of relevant communicationsmarketing communications. But its customer the Neolane datamart with the Debenhams • Improve brand loyalty, designdata was held in multiple siloed databases. customer data warehouse, some 18 additional customer journeys and influenceThere was limited integration. Segmentation, departmental databases and a number of behaviortargeting and reporting capabilities were third party feeds. This historical data enabled • Increase sales and the return onsimplistic. basic content personalization to commence marketing investment almost immediately. Today, Neolane holds“We had lots of data, but limited visibility into some six million customer records and RESULTSthe behavior and preferences of our customers, ” is used to generate some two millionsaid Robert Unsworth, head of trading finance • Customer communications personalized content communications per managed from a single,and commercial insight at Debenhams. “As week. The platform manages the frequency of centralized point of controla consequence, our customer marketing communications sent to any single customercampaigns were really just mass-messages • Designed and launched a new (across all channels) to avoid either over- or loyalty scheme in just 12 weekssuch as in-store sales and promotions. ” under- solicitation. Online and text opt-ins and opt-outs are handled automatically. • Over 75% increase in email“The impersonal nature of the content conversion rateswasn’t consistent with the brand Cross-channel, customer response behavior • Over 200% increase in email-experience Debenhams stands for. Also, is captured and tracked by the Neolane driven sales volumefalling response rates were undermining platform. This intelligence adds to the • Mobile marketing took just 4marketing effectiveness, said Unsworth. ” customer’s profile, possibly triggering follow- weeks to define and ready for“We needed to improve the service value of on campaigns and in any case, supporting launchour communications by making them more more relevant cross-channel conversations inpersonal and worth reading. ” the future.
  2. 2. “We ultimately selected Neolane because it offers one-to-one, cross- channel customer marketing centralized for the entire enterprise on a single platform.”Mobile campaigns Members earn points for purchases andWhen Debenhams chose to launch mobile other loyalty behaviors when they use theircampaigns, enabling it as an additional card. Once registered, they can redeemchannel on the Neolane platform was points for rewards, which can then be usedrelatively simple and swiftly successful. as full or part payment against new health and beauty purchases.“It took just four weeks from go to define andbe ready to launch mobile campaigns, said ” “Customers are keen to follow their loyaltyUnsworth. points balance and see them turn into rewards, said Unsworth. “Within regular ”Email campaigns and advertising tempts statement emails, we use Neolane to generatecustomers to text a short-code to claim a and present tempting offers and messagesvoucher. They then receive a texted code appropriate for the customer. These messagesunique to their phone number, which they can get through. We use them to drive preferredshow and redeem in store. Mobile campaigns customer journeys and encourage deeperhave alerted customers to in-store events, the engagement in the scheme, further purchasesDebenhams Sale, key promotions and have and other loyalty interactions. ”also offered further discount vouchers. “We know that a Debenhams Beauty Club“As customers request their own mobile voucher, member redeeming rewards spends fivewe are experiencing a higher redemption rate times as much as our average non-memberthan the average for printed vouchers, said ” customer, said Unsworth. “We also know ”Unsworth. “As the mobile voucher expiry date that on average, once customers becomeapproaches, automated reminders are sent to members, they significantly increase theircustomers who’ve not redeemed them. ” spend with us over the next 12 months.”Debenhams Beauty Club – a clear winner For all campaigns, clear analysis and reportingThe value of Neolane is illustrated by specific allows marketers to prove which campaignreference to Debenhams Beauty, a core ideas and customer journeys are deliveringdepartment store offering led by internationally the best results; enabling optimization of thebranded products. In store, health and beauty Debenhams marketing investment.consultants provide customers with one-on-one advice and consultations. Through regular “It’s easy to show that marketing automationacquaintance they often develop personal and personalization is improving theknowledge of loyal customers’ preferences. returns we gain from customer marketing investments, said Unsworth. ”Our email ”“Beauty is a highly competitive market. To conversion rates are up 75 percent and email driven sales volumes are up 200 percent.” Neolane, Inc.add to the personal in-store experience, and One Gateway Center - 7th Floordifferentiate ourselves from competitors, 300-334 Washington Street In its first year of operation, Debenhams Newton, MA 02458we elected to launch the Debenhams Beauty Beauty Club attracted two million Office: +1 617 467 6760Club, said Unsworth. “Our core objectives ” cardholders. This is still growing. Revenue Fax: +1 617 467 6701were to build and reward customer loyalty for its health and beauty department is info@neolane.comand increase long-term sales. ” ‘significantly up’ as a direct result of the loyalty initiative. It’s now one of the store’s United StatesHe continued: “We took the Debenhams best performing departments. United KingdomBeauty Club loyalty idea from conception Franceto implementation in just 12 weeks. This Looking to the future, Debenhams may add Scandinaviawas only possible because we’d already additional channels to its marketing strategy.implemented Neolane across the enterprise, There’s the integration of its iPhone app and Neolane and the Neolane logo are trademarks or registeredmaking it easy to design customer journeys its Facebook and Twitter communications trademarks of Neolane Inc. in the United States and other countries. All other trademarks contained herein are the with Neolane for example. property of their respective owners.and add new campaign workflows. ” © 2011 Neolane, Inc.