acing the crm experiment - 40 customer engagement tips from leading brands

A Handbook on 40 Customer Engagement Learnings from Leading Brands

What'sInside

Predicting and Preventing Customer Attrition

Customer Retention Program

In-store Engagement

Rewards Based Loyalty Programs

Points Based Loyalty Programs

Inventory Optimization

Data Collection, Collation and Storage & Enrichment

Social Marketing

Visual Analytics (Heat Maps)

Gift Card Solution

Store Task Flow Management

Campaign Automation

Customer Store Experience

Lifecycle Marketing

Segmentation and Micro-segmentation

Direct Mailer Optimization

Right Offer to Right Customer

Right Time with Right Communication

Right Communication through Right Channel

Campaign Level Analytics

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What'sInside

Customer Level Analytics

Product Level Analytics

Store Analytics

Multi Channel Engagement

Propensity Model

New Joinee Program

Personalized Targeting

Pareto Analysis

Digital Marketing

Cashier Incentive

Instant In-store Engagement

Discount Optimization

Cross Tie Ups

New Store Opening Effect

Catchment Analysis

Store Cannibalization

Product Cannibalization

Product Placements (In-store)

Customer Feedback Management

Customer Complaint Management

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Based on the past history of customer transactions, lapsation studies are initiated to understand customer churning

Assessment of lapsed customers and what char-acteristics are inherent in them

Deployment of statistical predictive modeling to forecast future behavior and design relevant offers

A leading distribution company of food and beverages in the UK, invested in a customer attrition prevention and prediction model to take corrective action to combat downtrading.

Exhaustive customer profiling helped make segmented campaigns that yielded a 10% hit rate and 52% responsiveness through focused promotions

Image sourced from GoogleACING THE CRM EXPERIMENT

Reduce customer downtrading and attrition rates that throws up insights into customer preferences

Reduce latency among customers

Helps design offers targeted to micro-segments of customers driving up response rate and customer resonance with relevant offers

Approach

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01 Predicting and PreventingCustomer Attrition

Benefits

Res

ult 10% 52%

SegmentedCampaign

FocusedPromotions

up

Assess historical behavior of customers, purchase patterns and points accumulated

Engage with active customers with offers to boost average basket size

Initiate aggressive offers to delight and retain customers on the verge of lapsation

High customer retention with

Loyalty sales contribution

upped toof total monthly sales of program deploymentof sales through

repeat purchases

50% < 9 months60%& in

Benetton, one of the best known fashion companies in the world, deployed retention programs across its 200+ stores through a cloud and mobile based loyalty solution.

Image sourced from Google ACING THE CRM EXPERIMENT

Personalized targeted campaigns on customer segments for additional cross-sell or up-sell

Automated communication of member status, rewards balance, birthday/anniversary offers to create brand connect

Daily MIS reports around registrations, sales and other KPIs to track program effectiveness

Approach

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02 Customer RetentionProgram

Benefits

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Enlist customers into the loyalty program and send instant activation message to unique contact number provided

Based on purchase history, engage with customer real time with instant offers while they are still in store

Burberry, the iconic luxury brand of trench coats and tartan plaids invested in creating a digitally con-nected enterprise to engage with every customer globally and create real-time experiences across devices that translate the Burberry vision.

Opening of a flagship store in Michigan Avenue that demonstrated the brand's vision to create enriching experiences.

The company clocked an 18% increase in Q1 sales in 2013 with record high annual revenues of 2 Billion.

ACING THE CRM EXPERIMENT

18%increase

Q1sales

in in 2013

2 Billion Annual Revenue

Seamless integration of POS with loyalty program to boost registrations and capture customer data points

Analytics enabled campaign management engine helps perk up response and create real time engaging experiences for customers

Instant In-store engagement solution can help spike average basket size per customer real time and generate revenue from loyalty base

Approach

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03 In-storeEngagement

Benefits

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Image sourced from Google

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Analyze customers lifetime purchases, frequency and recency of vists and divide them into various slabs

A coalition of allied brands offer points based on customer spends

Enables customer to redeem points in any of the allied brands' stores offering a range of products to choose from

In 2012, leading sports brand, rolled out a reward-based social loyalty program that encouraged members on Facebook to pursue an active and healthy lifestyle with set targets in the fitness regime.

Annual revenues hit $24 billion, up 60% since 2006 and profits jumped by 57% creating a social buzz that heralds the brand for innovation and stoking advocacy.

Annual revenue $24 billion


New age loyalty helps easy transition of legacy loyalty systems to a real time platform

Increase Customer Lifetime Value (CLV) of the targeted customer base through analytics driven campaigns and build stronger relationships with customers to invoke desired behavior

Enhance shopping experience through real time in-store customer incentives

Approach

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04 Rewards basedLoyalty Program

Benefits

+60% & 57%+

Revenue

since2006

ProfitResult


up

Form slabs and tiers based on various factors like lifetime purchase value, frequency and so on

Rewards customers with offers redeemable only at the brand-operated stores

A leading international fashion apparel label was empowered by an array of loyalty solutions to drive upgrades, revenues and lower acquisition costs.

33% increase in loyalty program's redemption rates, over 195% increase in additional revenues, loyalty acceleration of 28% achieved through upgrades and limited earn-burn ration by over 60% resulting in zero-cost acquisitions through referral programs.


Lower customer churn and build retention while lowering acquisition costs

Build loyal customer base continually and data warehouse for analytical insights

Eliminate ineffective non-responsive mass cam-paigns optimizing marketing costs

Arrive at price points and inventory optimization based on historical analysis of customer response and preferences

Approach

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05 Points based Loyalty Programs Approach

Benefits

33%increase

28%

195%increase

in Loyalty Programsredemption rates

loyalty upgrades

in additionalrevenues

Over

Result


up

Apply planograms or shelf optimization techniques to firm up visual merchandising based on high-affinity between products

Placement of merchandise influenced by up-sell and cross-sell strategies

Fix discount schemes based on sale patterns, stock levels and affinity between products

A Growing quick-service chain famous for its mouth watering wraps, mapped its marketing with menu optimization to analyze customer's dish preferences and sales per menu item

Streamlined and optimized brand's menu and attached inventory across its 34 outlets and deployed customer segmentation and lifecycle marketing models to maximize personalization to various customer clusters


Current inventory optimization and initiate localization to lower costs and increase sales per category

Insight driven product combinations to create enhanced customer experiences and stickiness

Optimize the marketing spend allocation to product categories

Divesting low yield or slow moving inventory and deliver right offer for the right products at the right time

Approach

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06 InventoryOptimization

Benefits

Result

Logistics

Life

cycl

e

Inventory

AnalyzeModel

Goods

Flow

Tim

eE

ffic

ient

Mar

ketin

g

Management

Segmentation

warehousingOptimize

OptimizePro

duc

tC

hain


up

Cloud based POP solution to collate and update data on customer during each transaction

Initiates standardization of different formats of the same data item across database

Enrichment of incomplete data points performed to arrive at crisp and complete customer data

A leading international fashion apparel label was empowered by an array of loyalty solutions to drive upgrades, revenues and lower acquisition costs.

Personalized communications resulted in 9% spike in repeat customers and overall 15% same Store Transactions Growth. 24x7 dedicated, cloud based solution called for minimal IT infrastructure and resource burden


Data equates to revenues. Investment in data management helps retailers combat poor capture of store level customer data

Identify and consolidate pockets of data that prevents centralized management and analysis

High visibility on insights from data analytics and track coherent trends

Approach

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07 Data Collection, Collationand Storage & Enrichment

Benefits

Result

9%

15%

24X7

spike in repeatcustomers

same StoreTransactionsGrowth

cloud basedsolution


up

Create apps for the brand and capture data points on customer

Engage with the customer via social channels to drive engagement and integrate with backend CRM

A leading shoe brand in India, amped up its social media marketing campaigns to increase loyalty conversions with a comprehensive social solution.

Clocked 45% coupon downloads on campaigns activated on Facebook and 10% redemption for social coupons


Create one-to-one marketing opportunities through social channels

Monetize fan base and leverage social media

Accelerate loyalty and repeat purchases

Drive customer interactions and brand awareness online to garner social advocates

Approach

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08 SocialMarketing

Benefits

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45%

10%

coupon downloads

on Facebook

redemptionfor socialcoupons

Clocked


up

An graphical integrated representation of store and customer level analytics

Visual representation offers a lucid overview enabling easier interpretation of data points and insights


Comprehensive analysis of effect of competitor and customer locations on sales and identify focus areas

Impact of new store opening and self cannibalization

Identifying most responsive or profitable customer cluster in a specific area and execute push strategies for slow moving products

Potential areas for opening new stores through catchment analysis

Approach

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09 Visual Analytics (Heat Maps)

Benefits

A respected and sought-after retail brands in UK deployed heat- mapping of online customers to incite them with offers to shop in the nearest outlet as well as the ecommerce portal.

The brand grossed an incremental sale of 137000 from a mere 25% of the customer base in less than 12 weeks.

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137000

12 weeks

Sale of

in less than


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Study customer database based on lifetime spend and frequency and initiate customization on gift cards issued

Design a timeline engine for each customer segment to push through relevant campaigns, update real time and avoid instances of fraud

Create store locator app for customers to navigate to the nearest store to redeem or make purchase


Innovative and cost-effective marketing tools to rope in customers through branded experiences that offer convenience and delight

Enables designing a straightforward strategy to connect with customers and their references through gifting option

Combat gift card fraud concern by safeguarding proprietary gift card information from miscreants through real time tracking

Approach

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10 Gift CardSolution

Benefits

$3k worth of redemptions and >$6k worth of recharges for an average of 400 cards issued per store. Over 50 new customers were acquired with a redemption rate of over 43%R

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Headquartered in Paris, a high-end luxury salon and spa with typically high customer acquisition costs and leveraged a unique and flexible Gift Cards solution to engage with their premium customers.

$3000 $6000

400 cards 43%

50worth ofredemptions

Average of Acquired with

issued perstore

redemptionrate

worth ofrecharges

new customers

over>


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GUESS, one of the world's top apparel retailers, deploys a broad store and taskforce management solution across its outlets that enables employees receive business-critical information through dynamic dashboards to track customer buying patterns on the go.

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Through lapsation study, store managers are provided daily list of customers who are nearing lapsation

Store managers consequently assigns tasks to executives to initiate dialogue and engagement strategies to coax a sale from the targeted customers


Model store tasks based analytics on expected business volumes, and schedules

Streamline execution of store wise strategies to cross-sell or up-sell

Centralized overview of customer summary to store associates for better interaction and customer-centric approach

Leverage technology to initiate immediate feedback or grievance redressal and input customer data real time.

Approach

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11 Store Task Flow Management

Benefits

The sales force has eliminated cumbersome spreadsheets for PDF based operational snapshots of business performance and take quick decisions to boost revenues.

PDF


up

On deployment of analytics, insights are derived to design optimized campaigns which are fed into automation modules for deployment to targeted customer segments

On campaign deployment, performance metrics and extensive reports are generated that aid post campaign assessment


Management of customer, store, product and campaign level intelligence

High quality data visualization and flexible loyalty management

Build productivity through automated reports and dashboards through an integrated platform for campaign analysis

Maximize average basket size per customer and increase customer retention through offers

Approach

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12 CampaignAutomation

Benefits

World leaders in designing and manufacturing extreme weather outdoor gear and shoes deployed analytics and campaign automation engine to deliver real-time, actionable insights followed by response driven offers.

13% increase in repeat bills in the first year with a whopping 41% boost in loyalty sales.

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CampaignAutomation

CampaignOptimization

DataVisualization

LoyaltyManagement

CustomerRetention

CustomerAnalysis

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Integrated POS module with updated data on customer behavior, past transactions and purchase history offering a snapshot view of customer's loyalty benefits

Personalize engagement based on this information and make real time, relevant offers to drive stickiness


Single view task assignment to sales executives based on recommendations on customer summary and past purchase trends

Increased quality of 1:1 interactions with customers through personalization in-store

Easy and quick customer complaint or feedback capture mechanism

Right-time communication to generate higher yield and enhanced customer experiences real time

Automated reminders on customer birthdays or anniversaries to establish emotional connect

Approach

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13 Customer StoreExperience

Benefits

Leading preimum beauty brand deployed centralized workflow in each salon and personalized exclusive in-store customer interactions.

28% stickiness in its premium services categories and a high customer retention of 75% repeat sales from existing customersRes

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28% 75%stickiness inits premiumservicescategories

repeat salesfrom existingcustomers


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With a one year minimum backlog of data points on customer behavior and purchase patterns, lifecyle modeling can be deployed

Traces the customer across lifecycle and identifies opportunities for designing relevant campaigns and offers to perk up bill value and loyalty


'Surprise' customers with messages customized to potential purchases based on past transactions

Relevant meaningful interactions with customers to create strong brand advocacy

Increase category penetration across different lifecycles and push slow moving and premium categories effectively

Approach

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14 LifecycleMarketing

Benefits

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A maternity and baby care brand, in order to drive long-standing customer loyalty and increase bucket size per transaction initiated a lifecycle based targeted engagement solution to reach out to the right customer at the right life-stage to generate higher propensity to buy.

Customer Retention Get Referrals Convert Sales

Deliver & Satisfy Upselll Customers

42% 10%6 monthsin withlower customerattrition

additional revenues from lifecycle based campaigns

up

Macro-level segmentation derived from broadly defined parameters such as bill value, preferences, recency or latency etc.,

Micro-segmentation categorizes customers into homogenous clusters that show minimal variations within each cluster conducted through descriptive statistics and predictive modeling


Differentiating customers into segments and micro-segments based on strategic KPIs

Derive insights into each micro-clusters revealing important inputs on designing campaigns

Inventory management backed by analysis on customer preferences and buying patterns

Personalized campaigns for each customer to derive monetary and loyalty advantages

Approach

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15 Segmentation andMicro-segmentation

Benefits

The global leader in mobile and accessories wanted to take a closer look at what drove their customers and how to win their mindshare in the competitive consumer electronics industry. An in-depth clustering of customers based on multiple parameters was performed to enable focused targeting.

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26% 20%11months

+ withincrease inaverage SKUsper customer

repeat salesdoubling in

increase in average purchase value


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Measure targeted response level at which cost of campaign can be justified

Post assessment of earlier mailer campaigns and catchment area study, arrive at the optimal number of customers or catchment areas to initiate campaign with to achieve desired response rate

Helps identify customer responsiveness to different product segments and motivations to repeat buy revealing insights on future campaign designs

Historical study of direct mailer campaigns and their drop assessment uncovers key metrics on assessing cost effectiveness when combined with alternative channels

Heat map study and propensity modeling helps to ascertain high response customer segments and locations to yield maximum ROI from mailer campaigns

Approach Benefits

Pizza Hut, the world's largest pizza retailer, was challenged with dimin-ishing impact of communications that adversely affected its top-line. The retailer implemented a comprehensive CRM solution to identify better communication channels timed to perfection with the right customers, with messaging to deliver high response rates. It also initiated a direct mailer optimization solution to assess performance of existing campaigns.

Clocked 13X overall ROI for the campaign period on existing offers yielding 5% sales growth every month. Also, profit of $204k generated by optimizing mailers during a 5 month period.R

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5% $204Ksales everymonth

profit generated

ACING THE CRM EXPERIMENT 19

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Study of Average Bill Value or share of wallet analysis to understand customer value

Based on customer valuation, degree of personalization and customization in offers are ascertained to enhance delight factor and boost bill value


Strong analytics and insights help churn strategies to accelerate customer store visits frequency and average basket size

Data underpins loyalty program success through real time offers and personalized communications to the right bracket of segments to promote revenues and stickiness

Helps combat discounting on high performing products and beefs up inventory management

Approach

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17 Right Offer to Right Customer

Benefits


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Study purchase pattern during the calendar year and identify pockets of boost in sales to design and target offers

Identify the most preferred time of communication with higher response rate to maximize offer effectiveness


Perk up performance of existing marketing campaigns and offers

Reduce discount dependency on offers by fine-tuning the target to achieve higher response

Customer purchase behavior discovery to pave way for future offer designs

Map customer-channel propensity and customer purchase cycle to lower marketing and acquisition costs

Approach

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18 Right Time with Right Communication

Benefits


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Based on the offer and communication designed, assessment of past campaign success throws insights into the channel that yields higher response rates and lowers cost of campaign


Unearth patterns between response and communication channels, audience receptiveness and alter existing offers to generate high probability of desired selling behavior

Focus tone and timing of messaging through historical analysis of channel behavior and generate response at lower costs

Lower cost of marketing and acquisition and increase campaign success by eliminating mass marketing messaging

Approach

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19 Right Communication through Right Channel

Benefits

Core Messaging

SocialMedia Emails

WebsiteContent

MobilePhone Apps

DirectMail

Articles& blogs

PressReleases


up

Analyse success of campaigns and customer responsiveness and the determinants of success factors in the campaign minus the seasonal influencers through test and control activity

Variation between test and control groups monitored to identify the lift percentage and the resulting incremental revenues

Breakdown customer buying behavior, past campaign success and customer lifecycle to design automated personalized campaigns to deliver better response

Develop ground-breaking engagement campaigns that can be easily automated, accessed and managed on cloud enabling accommodation of high volume campaigns to multiple customer segments and coupon series

Analytics driven campaigns yield higher hit rates resulting in positive KPIs and stronger customer engagement

Approach Benefits

A chain of beauty and lifestyle retail stores, is a one-stop-shop for personal care needs housing an extensive array of international and domestic brands. The brand sought an analytics driven CRM solution to categorize inventory, identify buying trends to map product-customer relationships and push offers.

10.6X ROI achieved through campaign automation solution with 27% higher spends per customer and a 51% spike in repeat sales per store.

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10.6X 27% 51%ROI achievedthrough campaignautomation

higher spendsper customer

spike in repeatsales per store

ACING THE CRM EXPERIMENT 23

20 CampaignLevel Analytics


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Assessment of customer behavior in store and with respect to product lines to throw insights on potential offers

Customer behavior, past purchase and transaction history also enables identification of optimal channel to initiate campaigns through and achieve desired behavioral outcome


A single combined overview from disparate sources on customer behavior across product categories and stores

Deploy predictive analytics to influence customer response, lasting relationships and brand affinity

Pitch the right offer to the right customer at the right time through the right channel

Reap from automation with enhanced productivity and agility in adapting campaigns and lowering attrition

Approach

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21 CustomerLevel Analytics

Benefits

Key Business Result Areas

CostsReduction

Cross-channelcustomer

experience

SalesPerformance

Real-timeperformance

AgentProductivity

MISReporting

Social MediaResponse

SupervisorEffectiveness


up

Monitor sales of product assortment to identify and categorize SKUs based on revenues generated

Study product cannibalization, affinity between products and customer buying patterns as part of analytics to devise relevant up-sell and cross-sell campaigns


Enhance product assortment and arrive at data-driven insights on supply chain based on customer buying behavior and trends gathered

Make tactical and strategic decision by tracking new product assortment, optimize promotions and markdowns, and control instances of stock-outs

Increase performance and productivity of merchandise and drive business revenues through insightful decisions

Approach

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22 ProductLevel Analytics

Benefits

Key Benefits

MonitoringSales

ProductAssortment

OptimizePromotions

ProductReporting

MerchandiseProductivity

Images sourced from Google

up

Close monitoring of Same Store Transaction Growth (SSTG) to assess store growth periodically

Assessment on location-wise performance of stores and emulation of success stories across lower-performing stores


Improve transaction value per store and boost footfalls through enhanced customer service level leading to higher store profitability

Increase productivity of store real estate through streamlined operations, effective marketing initiatives fine-tuned to customer profile, and adequate staff to customer ratio

Transform the in-store experience for the customer, thus improving satisfaction and overall loyalty

Approach

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23 StoreAnalytics

Benefits

EffectiveMarketing

StoreProductivity

Improve customersatisfaction

CustomerLoyalty


up

Leverage social media, mobile, email and direct mailer channels to optimize communication and design outreach programs to engage with customers

Necessitates deep understanding of channels and incumbent technologies to differentiate engagement campaigns and achieve higher response rates


Seamless engagement across multiple channels leveraging existing and emerging technologies create a positive brand perception in customers

Differentiation through 360 presence strength-ens recall and customer connect yielding higher revenues at lower retention costs

Better data capture through several touch points with deeper insights

Approach

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24 Multi-channelEngagement

Benefits

PUMA, one of the leading sport-lifestyle brands deployed a customer win-back campaign through multi-channel engagement.

A high 4% hit rate from targeted win-back campaigns

Almost 4K lost customers reactivated per month - more than 80% higher than bulk campaigns

30% of total sales from repeat customers

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Measure the probability of a customer segment responding to a specific campaign

Insights are derived from assessment of past campaigns to model propensity or success rate of future campaigns and gauge minimum customers to target to achieve desired response level


Intensify the granularity of segmentation and relevance of offers through customer differentiation

Throws up trends and relationships between attri-butes and variables that affect customer buying behavior

Pinpoint specific attributes responsible for a behavioral outcome to deploy predictive analytics

Mass mailing costs are done away with and focused targeted mailers with high response rates can be initiated

Approach

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25 PropensityModel

Benefits

One of the oldest and well known retailers in Singapore, used propensity models to repel diminishing scale of returns with increasing number of campaigns and to identify optimum customer base to target to get desired degree of response and their preferred model of communication.

Response rate of 93% was attained through 60% customer base as opposed to 100% thereby reducing marketing costs. Over 50% additional customers retained through campaigns with a 3.8% reduction in discount margins.R

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New entrants to the loyalty program are studied on purchase behavior, past visits and buying habits to identify recency - frequency - monetary value of customer

Campaigns initiated to lure customer in store within 90 days of enrollment to amplify loyalty towards the brand


Despite lack of transaction history, basket level campaign designing for new customers

Real time tracking of basket and shopping motiva-tions of the customer to spawn actionable insights in store and offer relevant targeted campaigns

Aggressive engagement with new customers to firm up brand affinity and lower drop rates through lapsation modeling

Approach

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26 New Joinee Program

Benefits

A web-only apparel retailer, Revolve Clothing integrated marketing analytics to connect with its new customers through emailers as part of its new joinee program.

33% of its one-time buyers were converted into repeat customers.

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Instill a tone of personalization in messaging and design campaigns around past behavior of customers to increase relevance of communication


Powerful personalized recommendation tools propel conversion rates apart from creating engaging experiences

Personalized campaigns inch closer to 1:1 market-ing and spawns strong brand loyalists

Dynamic up-sell and cross-sell tactics can be de-ployed backed by analytics on customer behavior through targeted campaigns

Approach

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27 PersonalizedTargeting

Benefits

A leading electronics and accessories brand in South Africa with over 85 outlets realized the need for amplifying its personalized communication in a highly volatile, new product launch driven industry with an aim to retain loyal base and induce repeat purchases.

Post deployment of exhaustive personalization campaigns, brand realized 20X ROI with campaign management solution and a 53% redemption rates from existing customers.

with campaignmanagementsolution

redemption ratesfrom existingcustomers

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20x ROI 53%


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Based on the Pareto rule (80/20) identify top-con-tributing product categories and customer segments

Macro-level segmentation initiated post which recency-frequency-monetary value of customers are derived and clustering is performed


Reveals significance of individual SKUs and the annual spends incurred and arrive at critical decisions of introducing or closing down products based on performance

Pareto analysis combined with cluster analysis helps estimate store specific inventory plans

Enhance productivity and service levels through inventory management to forecast, and address stock-outs, unfulfilled orders and back orders immediately

Approach

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28 ParetoAnalysis

Benefits

A leading apparel brand in India wanted to discontinue its Toys category due to negligible sales contribution despite occupying high store estate area. The brand initiated Pareto analysis to identify top performing and slow moving product categories, thus freeing real estate for high moving products.

Identified that 38% of Toy customers are High Loyal contributing to 58% of sales thus freeing up space by closing down low performing product lines.

Pareto RuleRes

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20% 80%effort Results


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Map online presence of customers on social media, relevant communities and online transaction patterns of segments

Run campaigns for each digital touch point namely emailers, remarketing ads, mobile- optimized in-app advertising with optimized communication to drive up responses and engagement


Leverage ubiquitous connectivity in the online space to connect with users

Ecommerce portals can track microscopically the behavior of customers on websites, source of enquiries, pages that yielded higher visibility etc

1:1 personalization made possible with customized communication to each visitor

Automated and customized emailers to keep customers hooked to build potential enquiries, brand awareness and future loyalists

Approach

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29 DigitalMarketing

Benefits

A leading ecommerce apparel portal, with more than 100K customers visiting on an average per week, implemented a structured digital strategy for its business expansion and loyalty enhancement.

Average bill value perked up by 50% with a 12% increase in repeat customers in just 8 months of program deployment.

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To push up enrolments in loyalty program installed in POS, incentives are designed to motivate cashiers to push through registrations with the customer

Extensive training on loyalty scheme, redemption process and data capture provided to beef up interface with customers


Performance based pay or incentivizing cashiers for enrollments into loyalty programs help ensure ownership and active engagement with customers

Data points are critical and cashiers act as the final interface with customers through which personal data can be collected and analytics initiated

Cashiers are hubs for gathering customer feedback and can uncover important actionable recommendations that could otherwise go unreported

Approach

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30 CashierIncentive

Benefits

Raymond, India's largest branded fabric and fashion retailer pumped in significant resources in ensuring a rules driven campaign and promotions module to offer the right offer to their 1.7 million customer base.

Total registrations reached 1.6 million in 3 years from 250K with a 115% increase in a premium circle membership.

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Analysis of historical data on customer's transaction statements and purchase trends reveals insights on potential relevant campaigns that would generate high response

Real time rendering of vouchers and campaigns while customer is in store to capitalize on impulse purchase and initiate up-sell or cross-sell


Mobile voucher redemption estimated to be around at 10 billion this year presenting a huge business opportunity for retailers

Real time vouchering models enable personalized targeted offers that guarantee a high response rate and potential conversions while customer is in store

Dynamic vouchering system presents itself as a medium to engage with customers with relevant campaigns that also build brand affinity apart from significant cross-sell and up-sell schemes

Approach

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31 Instant In-store Engagement

Benefits

One of China's influential accessories brand deployed a CRM solution to data warehouse, initiate targeted campaigns and build purchase frequency of loyal customer base with instant engagement.

1.85% hit rate for campaigns from earlier 0.94% registering a 43X ROI from the engagement program.

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Campaign hit rate

0.94%

1.85%

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Measure affinity between products to arrive at optimal discounts without eating into revenues

Analyze customer response towards past discount schemes to calculate propensity and optimize discount schemes


Lower discount dependency by zeroing in on customer buying patterns to reveal insights on designing promotions that would yield higher responses and lower revenue declines during pre-sale months

Optimal pricing and promotion of products to sustain and increase profitability without lowering margins or offering discounts through mass offers

Plan for inventory based on demand forecasting to assess sales volumes for promotional and non-promotional periods through analytics

Approach

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32 DiscountOptimization

Benefits

Peter England, one of the largest menswear brands in India, wanted to break free from the dependence on end of season sales (EOSS) and deployed a customer engagement program to drive up business during lean and pre-sale months.

Sales increased by 1.5% after optimization during pre and post EOSS period as compared to the 15% and 21% decline in prior two years.R

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Analysis of transaction history and purchase behavior of customers revels insights into po-tential alliances that maybe forged with relevant brands

Associations are formed to offer a stronger value proposition to customers through tangible bene-fits and amplify loyalty


Effective cross promotions backed by analytics of customer buying patterns lowers cost of promotions and increases top-line

Successful promotions tie in larger customer base lowering acquisition costs by funneling them from popular to premium brands

Relevant offers helps increase retention and stickiness and inventory management

Approach

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33 CrossTie Ups

Benefits

A leading Indian restaurant chain with over a 100 outlets worldwide, employed a full scale cross brand promotion campaign to lower acquisition costs, reduce customer drop outs and create enhanced experiences.

Over 34% increase in customers shopping with multiple brands through cross tie ups and a 60% jump in average monthly customers retained in 15 months through personalized promotions.R

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increase incustomersshopping

jump in averagemonthlycustomers

34% 60%


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Measure changes in customer acquisitions and footfalls as a result of new store opening

Initiate catchment area analysis and trace migration of customers to the new store


Prevents potential store cannibalization by unplanned openings that can hurt revenues of existing and new outlet

Catchment analysis of stores and targeted customers can set performance targets and future growth strategies

Helps create distinction in inventory maintenance and targeted customer profile based on place-ment of customers, their tastes and expectations

Approach

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34 New Store Opening Effect

Benefits

Dunkin Donuts relocated their store to less than 100 yards and added a drive through.

Sales soared up by over 50% as drive-throughs attract more on-the-go coffee drinkers

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Sales soared up by drive-throughs

50%


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Identify customer pockets based on place of residence through pin code

Roll out campaigns targeted to a perimeter around the store through catchment analysis


Throws up insights on how consumer behavior impacts revenues and costs and devise business models to meet consumer requirements

Assessment of customer demands helps benchmark on setting targets for store-wise performance, defining merchandise mix and determining store layout

Competitor analysis to identify potential open points or market gaps in catering to customers

Approach

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35 CatchmentAnalysis

Benefits

Retail giants McDonalds and Burger King deploy comprehensive catchment analysis based on socio-economic factors, demographic and economic profile, lifestyle, benefits sought and other intrinsic factors to determine the location and format of their existing and new stores.


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Evaluate impact of new store opening on the revenue of existing store within a geographical perimeter

Through evaluation, map migration of customers between stores and arrive at ideal proximity between stores that minimizes revenue loss


Helps identify stores that yield lowest marginal benefit, choose optimum location for opening new store and maintain optimum sales: investment ratio

Mapping impact on top line due to store-level variables on overall sales

Assessment of store competition and strategize on inventory of products based on buyer prefer-ences and catchment area analysis

Approach

39

36 Store Cannibalization

Benefits

Starbucks, the global coffee chain brand, in the years 2007-2008 shutdown several outlets due to non performance and operating costs.

Today the coffee chain employs data-driven location choices that meet the benchmarked sales: investment ratio of 2:1, with a combination of drive-throughs and smaller stores to exceed hurdle rates and generate high revenues.R

esul

t


up

Evaluate the impact of new product types on the checkout of existing product types

Initiate strategies to lower revenue loss due to new SKU introduction


Comprehensive understanding of dynamics of brand preferences and buyer purchase patterns of product categories

Uncover strategies for introducing new product line, modifying existing supply chain for higher revenues and identify scope for differentiation between products

Identify opportunities to divest nonperforming products, cross-sell and up-sell campaigns that will yield higher contribution to top line

Design personalized offers on products to perk up responses and drive repeat purchases

Approach

40

37 Product Cannibalization

Benefits

Apple faced serious reviews from analysts when launching the iPad on how it would cannibalize performance of existing Apple PCs.

Res

ult

sold with overmillioniPads

15 $10billion in revenues


up

Built on extensive research into customer preferences and purchase trends, visual merchandising is initiated to drive up sales through convenience and easy access

Seamless connectivity between product categories placement in store is ensured


Science of product placement addresses need for convenience, executes cross-sell/up-sell strategies and helps boost revenues

Enhance visual appeal of store while managing inventory and prevent 'stock outs'

Intensify utility of very square foot of retail space to multiply selling potential

Approach

41

38 Product Placements (In-store)

Benefits

Safeway, a leading UK retailer, initiated a family shopper based strategy for product placement in stores with the core objective of offering convenience.

Safeway increased the average sales per square foot by over 15% in less than 2 years with a reduction in operating costs by 60 million within a year.

Res

ult


up

Capture customer feedback on a generic store experience or specific campaign initiated

Conditional on degree and extent of feedback instances, process and operational enhancements may be initiated


Effective feedback and management system helps create a relationship with the customer and ushers a sense of proactiveness around the brand

Uncovers critical changes to service, products and operational set-up that could spawn loyalty and secure repeat business

Prevents a closed loop feedback system that dilutes potentially grave negative feedback which may spiral out of control if left unattended

Approach

42

39 Customer Feedback Management

Benefits

US based retail chain Homebase invests in a periodic customer feedback gathering tool through quantitative and qualitative research to gauge customer satisfaction, pain points and inputs on product range and service.

Homebase has structured a People, Process, Products based organization structure to consistently deliver on the promise to its customers and create long term sustainable revenues.R

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t

Hello?

Hello?Help!

UGH

Thanks


up

Critical operation that demands instant response or acknowledgement

Calls for rectification and appeasement of grievance raised and settlement of complaint with the customer through remedial measures


Instant acknowledgement of customer grievance creates a positive vibe with the customer by revealing company's readiness in addressing complaints

With analytics, mapping customer data to provide personalized complaint management cements relationship with the customer

Helps in crafting pleasant next-visit customer experiences and driving loyalty and profitability

Approach

43

40 Customer Complaint Management

Benefits

A leading consumer electronics brand devoted significant efforts in developing a customer complaint management engine that could resolve customer queries or ticket raised swiftly.

Reduction in operation costs with a centralized complaint management system that lowered average time for complaint resolution from 18 days to 48 hours.R

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t

Customer Servicesupport

Sal

es in

fo

policyresponse

question reply

qua

lity opinions

information

reviews

survey

satisfactionassistance

complaint

rela

tion

helpful

Capillary offers an Intelligent Customer Engagement platform to retailers and consumer businesses - managing the entire

life cycle of customer data from acquisition, analysis, insights and activations. We are the world's leading SaaS provider of

end-to-end Multi-Channel Customer Engagement, Big Data Customer Intelligence, Clienteling, Real-time Loyalty and

Social CRM solutions to 150+ enterprise customers - with over 10,000 locations and 75 Million shoppers who interact with

our cloud platform.