CIO Solutions Gallery

Ryan McGuire

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Today’s Agenda

• Overview

• Luxottica Overview

• CRM @ Luxottica

• How does CRM fit into the overall Luxottica business?

• What’s the CRM/Analytics org structure?

• How do measure our CRM impact?

• Key questions to address

• How is the college curriculum being changed to be  more relevant and “on point” to digital experience?

• How are organizations personalizing their journeys with customer insights?

• Q&A

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A bit about me…my career has been a mix of retail & CPG, ultimately leading me towards a focus on CRM for the last ~10yrs

- Department Store (Retail), 4 Years- Mercantile Stores Co. (McAlpin’s - May Merchandising Company (May Department Stores)

- St. Louis, MO

- Consumer Packed Goods (CPG), 5 Years

- Sara Lee & others- Consumer Marketing, Brand Management & Product Management

- dunnhumbyUSA (CPG & Retail), 8 Years- CPG/Man Prac team

- CPG/Man Prac team (Coca-Cola, Campbell’s, ConAgra and others)

- Kroger team (Price & Promotion)- dh Italia with Gruppo PAM (Promotions & Shop/FMCG)- Kroger team (Assortment/Merchandising team)- Kroger team (Rapid Insights)- Kroger team (Loyalty & Rewards)

- Luxottica (Retail), ~2yrs; started in Oct’13- CRM/Analytics team (Campaign Management & Digital Analytics)

Dillard’s)

Luxottica Overview

OVER 50 YEARS OF EXCELLENCE

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201020001990198019701960

OVER 50 YEARS OF CAREFULLY PLANNED GROWTH

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1961InceptionLeonardo Del Vecchiosets up Luxottica di Del Vecchio e C. S.A.S. which in 1964 is transformed into a joint-stock company named Luxottica S.p.A

1971The first Luxottica brand collection of optical eyewear makes its debut at the MIDO international trade fair in Milan

1981 1990Luxottica Group is listed on the NYSE

2000Luxottica Group is listed on the Milan Stock Exchange’s Mercato Telematico Azionario managed by Borsa Italiana

2011Expansion of Sunglass Hut in Brazil and Mexico

1988

Is launched. The non-profit provides vision care and eyewear around the world to those in need

1995Acquisition of one of the largest optical retail chains in North America:

1997

1999

2001Acquisition of major distributor of premium sunglasses:

2003Acquisition of one of the leading optical retailers in Australia and New Zealand:

2004Further expansions in optical retail in North America

2005

2006

2007

2008

2012Acquisition of Tecnol, Brazil

Acquisition of GMO, Latin America

Sunglass Hut expansion in Spain and Portugal

2013

2014Acquisition of glasses.com

2015

Group acquires brand

Enters into license

A RICH BRAND PORTFOLIO

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Proprietarybrands

CRM @ Luxottica Overview

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CRM has three main functions to enable behavior change at Luxottica, enabled by underlying IT technologies

We aim to complement our existing strengths to become a customer centric organization

• Analyze and understand our customers

• Inform the brands’ action plan

• Deploy the most appropriate engagement strategy

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CRM/Analytics team has grown to over 30 people in the last 2yrs, including customer care & call center

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CRM performance is measured across four metrics, partnering heavily with IT to deliver results

Global Control iSalesMailed customers vs. non-mailed customers

(short-term impact) 1. Utilize campaign history tables for mailed & non-mailed

2. Gather total sales responses for campaigns with both mailed & non-mailed customers

3. Compare mailed vs. non-mailed customer sales to understand iSales generated with mailed customers

*Measures CRM impact on a per campaign basis

Mailed customers vs. non-mailed customers (long-term impact)

1. Split customers into two groups at random: Global Holdout (not mailed) & Non-Global Holdout (mailed)

2. Customer groups are then “stratified”, ensuring customer groups are comparable (Look alike customer groups)

3. Measure the performance between the two customer groups

*Measures CRM impact on a long-term basis

NPS (Net Promoter Score)

1. Employ deployment after recent purchase

2. Likelihood to recommend 0-10 scale with free text

3. Store-level report on CSAT, NPS, Free Text insight

*Measures customer experience at a customer level

2yr Repurchase Rate

*Measures CRM impact in driving repeat visits

1. Define a base period (in the past)

2. Track for 2 year how many customers purchase again of the ones who purchased during the base period

3. 2yr repurchase rate is the ratio of customers who purchased again and the customers who purchased in the base period

4. Track overtime with rolling base periods

How are universities evolving curriculum & digital experiences?

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Local greater Cincinnati universities are evolving around data and digital interactions

• Xavier’s introduced an data analysis focused program in 2015

• Hired former dhUSA/84.51 employee to run it & enroll local companies to participate in partnership with XU

• Xavier’s enhancing traditional curriculum with newer, digitally focused courses:

• Undergrad Digital Marketing (fantastic adjunct instructor)• Undergrad & Graduate Social Media

• Miami’s introduced the ELM / eLearning Miami

• Piloted during Fall 2014 & full rollout in Fall 2015

How are organizations personalizing customer journeys with data insights?

PEARLE VISION CUSTOMER JOURNEY 2.0Evolving to become more and more personalized

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Cross sell Rx Sun DM

EER/Recall DM/EM

Eye Health EER EM

Calendar based

Triggered event

Lifecycle

Thank you EM

NPS

EER/Recall DM/EM

NEW

Existing

Birthday DM/EM

EER Inactive (48/60 mos)EER Past Due (30/36 mos)

Cross sell Rx Sun DM

Seasonal Eye Health EM

Seasonal Eye Health EM

Seasonal Eye Health EM

Seasonal Eye Health EM

MVC DM/EM

Equity DM/EM: OD Campaign, CHO/2nd Lifer, Style-Fashion

Customer Appreciation DM/EM

C.O.R.N.E.A. EM

Brand EM

Brand EM

Brand EM

C.O.R.N.E.A. EM

• When it comes to loyalty, it’s all about rewarding customers for their behaviors

• For the last 10 years, Kroger’s been rewarding their best customers (premium loyal & valuable segments) with something called the LCM (Loyal Customer Mailer) each quarter

• The LCM has 12 targeted coupons (based on household buying behavior) and roughly 10MM unique versions, hence why Kroger calls it their “snowflake”

Kroger (with dhUSA/84.51 partnership) has created 10,000,000 “snowflakes” each quarter for customers

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APPS BECOME HEALTH COACHES

• Damage to your hearing is caused by a complex relationship between how long, how loud, and what you listen to

• The HearAngel app monitors your headphone’s audio and notifies you when you’ve reached your daily sound allowance

• It also allows you to experience what hearing loss would sound like, by producing a sound similar to someone who is affected by hearing loss

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• When it comes to loyalty, it’s all about making it easy and convenient

• Amazon Prime recently released Dash, a product that is changing the convenience and loyalty of the CPG landscape

• The Dash product allows consumers to engage in a type of one-click shopping in their non-digital lives

LOCKED IN LOYALTY WITH THE PUSH OF A BUTTON

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Massive Data, Massive Insights

• Virgin Atlantic added sensors to every component on their 787 Boeing aircraft and is capitalizing on the internet of things to provide real time machine insights

• The airplane creates roughly a 1/3 terabyte of data per flight

• Being able to optimize and use this massive amount of data means faster on-the-ground turnarounds and less delays for passengers

Q&A