This document discusses customer relationship management (CRM) and provides an overview of key CRM concepts and benefits. It defines CRM as using customer data and business intelligence to build customer value over time. It then discusses metrics used to define customer value, how value is operationalized through customer segmentation, and lessons learned from CRM case studies. The document also addresses common questions and issues around a company's CRM standards, customer database, and customer outreach programs. It concludes by summarizing several benefits of CRM, including increased sales from improved customer capture rates and repeat purchases.

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CRM – CUSTOMER RELATIONSHIP
MANAGEMENT

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

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

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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%.

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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

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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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