1. 11

2. 2
CRM – CUSTOMER RELATIONSHIP
MANAGEMENT

3. 3
DISCUSSION
• What is CRM?
• Lessons learned!
• Your issues and questions.
• CRM benefits.
• Other things.

4. 4
WHAT IS CRM?
‘Using customer data and business intelligence to build
customer value over time’
C = CUSTOMER
R = RELATIONSHIP
M = MANAGEMENT

5. 5
WHAT IS CRM?
• How do we describe customer value?
Three metrics are used by most retailers to define customer
value:
RECENCY – the time frame in which a customer purchases,
for example 0 – 3 months from date of purchase, and most
recent/least recent.
FREQUENCY – the number of times a customer purchases,
for example, 1x, 2x, +3x, and most frequent/least frequent.
MONETARY – the dollar value of a customer’s purchase, for
example, total lifetime purchase value and top 10%/bottom
10%.

6. 6
WHAT IS CRM?
• How is value operationalized?
In other words, how do we apply customer value in designing
CRM programs and how do we talk about that application?
SEGMENTATION

7. 7
WHAT IS CRM?
• What is segmentation?
A segmentation RANKS customers from highest value to
lowest placing them into buckets called SEGMENTS for
planning purposes as follows:
Most recent plus most frequent plus
highest value (top 10%)
To the lowest bucket of
Least recent (oldest) plus least frequent plus
lowest value (bottom 10%

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LESSONS LEARNED!
Three stories and three lessons:
1. CLIENTELLING -- “Pour moi d'être compris, je dois
comprendre“
2. PROCESS/DETAIL -- “There are 179 step in an
effective contact program and they are all worth a
nickel”
3. ENGAGEMENT -- “Your best customer is the customer
standing right in front of you, right now”

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YOUR ISSUES AND QUESTIONS
A number of questions about TUMI CRM standards, the
customer database, and how we contact our customers have
come up including:
1.TUMI customer database –
 215,000, 0 – 12 month customers
 600,000, 13+ month customers
 60% of our customer shop 1x and never return to shop

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YOUR ISSUES AND QUESTIONS
2. Mailing and emailing
 0 – 12 month customers are mailed three times
per year
 400,000 customers are emailed weekly

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YOUR ISSUES AND QUESTIONS
3. Capture –
 A perfect capture is an accurate capture
 12-months to April we processed 440,000 transactions
and 215,000 captures (48%)
 Capture works when the customer is engaged, for
example, in the EU we have 45,000 tracer registrations
but less than 18,000 captures through TUMI owned
stores.

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YOUR ISSUES AND QUESTIONS
4. Foreign Tourists
 We can capture foreign tourist address information and
save the record.
 We can’t accurately transmit that information to the
customer database
 We are working on a fix!
5. Why capture foreign tourist information –
 TUMI is a global company
 Without capture we can’t increase customer value

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YOUR ISSUES AND QUESTIONS
6. TUMI Passport program
 How do we keep high value customers?

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CRM BENEFITS
1. Name Capture
if we capture a customer and touch them 4x in the first six
months after sale they are 60% more likely to convert to a
second sale.
The average sale of a captured customer is about 14% higher
than that of a non captured customer.
If 2% additional buyers are captured the average store will
benefit by +$ in sales

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CRM BENEFITS
RETAIL CAPTURE REPORT
Report date:
Period: MAY
Classification: DOMESTIC
District: NORTHEAST
Area: BOSTON
Store #: 74
Store Name: CHESTNUT HILL
DNC PHONE
TRAFFIC TRANSACTIONS CAPTURED MAILABLE CAPTURED MAILABLE
MONTH 2,650 174 - 160 77 70 16 6
0% 6% 3% 3% 1% 0%
0% 92% 44% 40% 9% 3%
YTD 9,525 684 17 632 285 29
0% 7% 0% 3% 0% 0%
2% 92% 0% 42% 0% 4%
MONTH 26,501 7,950 1,354 860 770 109
5% 3% 0% 3% 0% 0%
17% 11% 0% 10% 0% 1%
YTD 12,954 8,995 3,350 2,513 1,632 1,152
26% 19% 0% 13% 0% 9%
37% 28% 0% 18% 0% 13%
DOMESTIC
STORE
ADDRESS EMAIL

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CRM BENEFITS
2. Value
The top 30% of our customers based on RFM account for x%
of total business (show HML segmentation by store)
RETAIL SEGMENTATION REPORT
Report date:
Period: MAY
Classification: DOMESTIC
District: NORTHEAST
Area: BOSTON
Store #: 74
Store Name: CHESTNUT HILL
COUNTS
% TOTAL
ACTIVES
Lifetime
Dollars
% TOTAL
ACTIVES
Lifetime
Spend Per
Cust
Mailable % Emailable %
57,078 27% $105,259,549 53% $1,844 44,163 24% 27,758 26%
75,691 36% $47,197,701 24% $624 67,109 37% 42,136 40%
78,552 37% $45,757,546 23% $583 71,627 39% 35,548 34%
211,321 100% $198,214,796 100% $938 182,899 100% 105,442 100%
1x BUYERS 18,852 9% 56,316,859 28% $856
TOTAL TRANSACTIONS 439,626
57,078 27% $105,259,549 53% $1,844 44,163 24% 27,758 26%
75,691 36% $47,197,701 24% $624 67,109 37% 42,136 40%
78,552 37% $45,757,546 23% $583 71,627 39% 35,548 34%
211,321 100% $198,214,796 100% $938 182,899 100% 105,442 100%
1x BUYERS 18,852 24%
TOTAL TRANSACTIONS 439,626
CAPTURED
DOMESTIC
STORE
HIGH VALUE
MEDIUM
LOW VALUE
TOTAL ACTIVES
HIGH VALUE
MEDIUM
LOW VALUE
TOTAL ACTIVES

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CRM BENEFITS
3. Repeat Purchase (Frequency and segmentation
60% of TUMI buyers shop 1x and never return. If we convert x
% of those customers to second sale this will deliver approx
$x per store
TUMI - FREQUENCY REPORT
District:
Store Number:
Store Name:
MONTH: < mm/dd/yy>
RUN DATE : < mm/dd/yy>
YEAR TO DATE
2011 2010 YTD MNTH AVG
$ #
#/TOT
% $ #
#/TOT
% $ #
#/TOT
%
RETAIL
NEW (1X buyers that never bought)
1X (excluding new buyers)
2X
3X +
TOT
% TRANSACTIONS
TOT TRANSACTIONS
WEB
NEW (1X buyers that never bought)
1X (excluding new buyers)
2X
3X +
TOT
% TRANSACTIONS
TOT TRANSACTIONS

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OTHER THINGS WE ARE WORKING ON
• Store level customer reporting
• Seamless Receipts
• Customer database
• Gift card promotion and mobile gift card
• Retail corporate gift update
• Passport program rollout
– Tracer update

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