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Bp Case Study Final Uk
1. BP CRM Pilot Fuelled by smartFOCUS
BP is a FSTE100 company serving around 13 million
customers every day through 28,500 retail outlets in
more than 100 countries across six continents. It was
founded as the Anglo Persian Oil Company by William
Knox D'Arcy in 1909 and employs 100,000 people.
Customer
Cequity's end-to-end suite of integrated
services includes customer management
Introduction BP
consulting, marketing database &
information management solutions,
BP has four brand values that underpin everything they do:
analytics, metrics & dashboards and
Industry Sector
campaign measurement support. Our
Performance - setting global standards
state-of-the-art technology solution,
Innovative - delivering breakthrough solutions
Petroleum & Chemicals
Cequity ACE is powered by smartFOCUS
Progressive - always looking for a new and better approach
Green - demonstrating environmental leadership and is a hosted customer marketing
Solution
system that can be quickly implemented
BP aspires to be one of the world's great companies, with a sustainable long term future. This without major hardware or software
Modeling
is captured by the phrase ‘beyond petroleum', reflecting their brand positioning today and
investments. This helps us deliver rich yet
their aspiration to meet the world's future energy needs.
valuable, information-driven, customer
Solution Components
experience opportunities for you.
In the UK they operate circa 1,300 Petrol Station Sites, of which, 40% are owned by BP.
“From our experience, the Intelligent Analytical
The Challenge
Data Quality/Management
Marketing from smartFOCUS makes it possible
to instantly analyze, segment, identify and
BP’s UK Retail Division has explored different CRM strategies in the past 10 years from
communicate with large volumes of customers
Single Customer View
tokens to branded loyalty cards. They were one of the founding partners of the Nectar
and contacts on an individual basis. Intelligent
Loyalty Scheme in September 2002. In 2005 decided to investigate how they could harness
the full power of all their customer data from across the business to maximise scheme Marketing improves customer communications -
Analysis & Visualization
participation. throughout the entire lifetime of a company-
customer relationship and makes performance
BP’s Retail Marketing team commissioned a pilot project with smartFOCUS to investigate the Predictive Modeling
driven multi-channel marketing a reality.
opportunity to gain greater advantage through better use of the data available. The desire for
smartFOCUS is faster and more efficient than we
BP is to leverage their data to gain customer insights and to use this knowledge to
thought Campaign Management
it would be!”
become a more customer focussed organisation.
Given the complexity of the data flows between BP, its Point of Sale (POS) data supplier and its Email Marketing
loyalty partner, BP Retail staff had no central marketing database and more importantly, no
CEO - Cequity Solutions
direct access to this data at BP.
Online Execution
smartFOCUS’ Managed Service Division, was appointed to build an analytical data mart from
these various data sources and provide a managed service to host the data mart and update it
Performance Management
on a monthly basis. In addition to the construction of the database they were to provide full
analytical services to support BP in the execution of a Customer Driven CRM Pilot
Managed Service
Campaign based on knowledge and insight gleaned from analysis of the data.
The CRM Pilot Campaign
The objectives of the pilot campaign were to increase the average contribution per
customer, decrease customer churn thus improving retention and increase the visit
frequency to improve the share of wallet.
The pilot campaign devised was multi-channel, multi-offer and multi-stage. The
communication channels used to deliver the offers included; a highly personalised Direct
Smile® mailing piece, an Email and a Point of Sale offer comprising of voucher offers
printed with the till receipt. Finally, the SMS channel was used to remind Customers about
the offers that BP had made to them when they were in close proximity to pilot BP sites.
Except for e-mail, all of these were new channels being tested by BP.
The primary goal of the campaign was to either reward customers based on their recent
shopping behaviour or incentivise customers to try new products, or both. Customers were
provided with offers such as free or half price items plus Nectar points for higher margin
products like Ultimate Fuels, Car Washes and Wild Bean Café products including Lattes and
Muffins.
Continued overleaf
2. What we did
smartFOCUS delivered the CRM pilot project in four stages as follows;
1. Build the analytical data mart
2. Develop a suite of metrics to gain a better understanding of BP Nectar customers
3. Deliver the CRM pilot campaign, consisting:
Selection of sites for the pilot
Selection of control sites
Selection of target and control customers
4. Undertake post campaign analysis of the CRM pilot campaign results
The stages were delivered as a series of consultancy days consisting of workshops and onsite
consultancy to ensure a complete knowledge transfer of the insights gained.
Additionally, the analytical data mart was maintained and updated with regular updates
from the different suppliers.
Stage 1 - Build the Analytical Data Mart
“The customer
The first stage for smartFOCUS was to design and build the data mart to support analytics
segmentation solution
and underpin the planned CRM pilot campaign. The key data forming the core of the
implemented by
system was the individual Nectar Card transaction data from all BP’s petrol station sites
enhanced with Nectar Card registration information and BP’s product data from their SAP
smartFOCUS has enabled BP
system. At the end of the this stage the high level metrics were as follows;
to quantify the value of their
9m BP Nectar Account Registrations
active customer base, to
83m site visits (‘shopping baskets’)
understand which
111m transactions
segments are growing and
The analytical data mart, containing all the customer details, their transactions, BP Sites
gain an insight into
and Products was hosted on smartFOCUS’ infrastructure.
customer transitions
Stage 2 - Develop Customer Insight
between the segments.”
Working in conjunction with BP, smartFOCUS Solutions Consultant implemented the bespoke
segmentation solution developed for BP by LMUK and Pareto Works in smartFOCUS Viper.
The segmentation was based on customer transactions over a six month period at BP Sites,
taking into account the value of the transactions along with the frequency and regularity of the
customers visits to BP sites. This yielded a seven segment solution of the ‘active’ customers into
seven groups ranging from A-Loyal down to G-Visited only once.
The segmentation was then used as a basis for reporting on a number of customer metrics,
including;
Spend
Contribution Number of visits to BP sites
Transaction behaviour e.g. Fuel only or shop and fuel
The segmentation was then updated on a monthly basis. This enabled BP to monitor and
track customer movement between segments and track the performance of segments.
Stage 3 - Delivery of the CRM Pilot Campaign
The first task was to select the pilot sites. To ensure that this was impartial and maintained
the integrity of the project, smartFOCUS used their MODELER application to ‘cluster’ BP’s
Sites together into groups with similar characteristics. The four site groupings were then
reviewed and selections made for pilot and control sites that were representative and
consistent with the overall groupings.
The campaign definition was created using the Campaigner application which utilised queries
and entities already set-up in the data mart. The requirement was to select customers based on
their shopping behaviour in the past 3 months at 35 pilot sites. The first split of the
customers created 2 groups, one who had only purchased fuel and a second that had made
both a fuel and shop transaction.
The fuel only customers were to get rewards based on their fuel purchase behaviour and
incentive offers based on their propensity to purchase the pilot offer products; whilst the
second group received either rewards for existing shopping behaviour or incentives to trial
new products for which they had a high propensity.
In total there were 12 main campaign cells splitting into 24 sub cells
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across the different contact channels, each receiving 2 or 3 individual
offers of reward or incentive.
Continued overleaf
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Stage 4 - Post Campaign Analysis
Phone: +91 22-43453800
Following the successful delivery of the campaign, it was essential that the post campaign
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analysis allowed quantification of the objectives against the control groups. Having
updated the data mart smartFOCUS provided a full analysis of the campaign results
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including measurement of the response against the stated objectives.
papers and presentations log on to:
A full post campaign analysis report was delivered to BP Retail to conclude the project www.cequitysolutions.com
which identified some of the key successes and failures of the campaign for future Learning.
Adhoc Analysis Or Write to:
BP quickly recognised the value of having their own data mart incorporating data merged info@cequitysolutions.com
together that had previously remained in separate silo’s. It provided a great opportunity for the
retail marketing team to answer some of the key questions that had until now remained For the latest thinking in Analyical
impossible to answer. Therefore, in addition to the CRM project, BP commissioned a series of Marketing, check out our blog at:
ad-hoc pieces of analysis to answer strategic and tactical questions framed by the business,
blog.cequitysolutions.com
such as;
Targeting for the re-launch of new formulation Ultimate Fuels
Segment movement to understand how long Customers remain / persist in a particular
Segment
Customer sensitivity to fuel price changes
Wild Bean Café free latte offer promotion
Performance of new M&S Shop site formats
Results and Benefits
The work undertaken deploying smartFOCUS Viper software has allowed BP to gain a deeper
understanding and insight of the shopping behaviour of their Nectar Card customers and value
they deliver to BP. This will enable them to determine the value of being a member of the
Nectar scheme and input into future strategy.
BP has benefited from the ability to obtain rapid answers to marketing questions by utilising
both the flexibility and speed of the data mart allied with the service provided in the form of
expert consultancy from smartFOCUS. This combination of skills and technology has enabled
BP to deliver a highly complex and sophisticated CRM pilot campaign very cost effectively.
The customer segmentation solution implemented has enabled BP to quantify the value of their
active customer base, to understand which segments are growing and gain an insight into
customer transitions between the segments.
Key elements of the CRM pilot project has been delivered through interactive workshops and
on-site consultancy thereby providing BP with a complete understanding of the processes and
the data utilised within the project and allowing full knowledge transfer of the insights gained.
Following the results and conclusion of this project, BP is now going to implement a global
CRM strategy adopting the lessons learnt in the pilot CRM campaign.
About smartFOCUS
smartFOCUS (LSE:STF) is a leading international marketing software company that
empowers marketers with the intelligence to drive high performance multi channel campaigns
and more valuable customer relationships. Its Intelligent Marketing solutions integrate off-line
and on-line data, analysis, campaign and performance management to deliver better targeted
more timely and relevant communications that increase campaign conversion rates and
improve customer’s insight.
smartFOCUS now has over 300 customers worldwide using its marketing software including
AAA, ABN AMRO, ATOS, Centreparcs, EMI, Fig Leaves, Harrods, Hilton International,
NSPCC, Societe Generale and QVC.
In 2006 smartFOCUS experienced revenue growth of 52% to £9M. The organisation is
headquartered in the UK, with offices in the US, continental Europe and Asia Pacific.
Contact Details
Note: This is an ‘original paper’ by smartFOCUS. Cequity ACE is powered by
smartFOCUS and Cequity uses this distinguished technology to empower its end-to-end suite
of analytical marketing and customer relationship management solutions.
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