Our approach to

CUSTOMER ENGAGEMENT2015

April 2015

TMC has more than 18 years of experience in the design and implementation of solutions for Consumer Goods and Retail Industries in the areas of sales, distribution, trade and shopper marketing.

We are an international network of recognized senior professionals and academic teachers.

Our teams count with extensive experience and knowledge in Latin America

We offer integrated solutions from diagnosis up to execution

Who is TMC?

An International Network of Commercial Experts

Where are we?

LONDON

VALENCIA - CENTRAL OFFICE

RIO DE JANEIRO

BUENOS AIRES

CARACAS

MIAMI

MONTERREY

Some of our Clients

INDUSTRY RETAIL

Our Competitive Advantages

The quality and seniority of our global partners directly involved in projects from the outset

All consultants have significant Trade – Go To Market experience

The simplicity of solutions and methodologies provided by highly experienced professionals

The highly competitive value equation

Customized support all the way up to implementation

Regional capabilities

ORGANISATION DEVELOPMENT

SHOPPER UNDERSTANDING

WHERE TO WINHOW TO WIN

Product Portfolio - Core Areas

• ORGANISATIONAL MODEL

• TRAINING & DEVELOPMENT

• INCENTIVE PROGRAMS

• SHOPPER PROFILE

• SHOPPER BEHAVIOUR

• SHOPPING OCCASIONS

• CUSTOMER SEGMENTATION

• ROUTE TO MARKET DESIGN

• SUPPLY CHAIN

• CUSTOMER SATISFACTION

• STRATEGIC PLANNING

• C&S ACTIVATION PLANNING

Our approach to Customer Engagement

MAIN OBJETIVE IS TO PROTECT/INCREASE

SALES VOLUME

`

WHILST ADJUSTING

TRADING TERMS & CONDITIONS

AFFORDABLE

MODULAR

EASY

HIGHPERCEIVE

DVALUE

INCENTIVESASPIRATIO

NAL

TO ACCESS - TO MANAGE – TO REDEEM

OUR HOLISTIC SOLUTION INTEGRATES THE BEST IN CLASS ELEMENTS PROVEN SUCESSFUL IN MOST MARKETS

Goes beyond software and apps

And avoid most common mistakes

WHY MOST ENGAGEMENT PROGRAMS FAIL?TOP 5 REASONS

71%88%

82%58%75%

Lack of understanding of REAL needs & motivations. Irrelevant and rigid reward structures.

Underestimate resources required to sustainable CHANGE behavior. Low or inexistent ROI

Isolated effort from the Corporate Marketing Strategy. Perceived as reactive, tactic approach rather than strategic and long term

Poor user interfaces. Difficult access and navigation

Lack of quality in customer service, fast problem resolution. Difficulties to redeem prizes. Structure, Process and Decision making process Capgemini 2014 (1400 Global Companies across Retail, Banking, Consumer, Telecom, Airlines, Hotels and

Electronics). Transera- Customer Analytics in the Cloud. ADMA – Association for data-driven Marketing & Advertising. Harvard Business Review - http://hbswk.hbs.edu/item/6733.html. McKinsey & Company. Charles Guhigg – Power of Habits.

% referred to the number of sources indicating the same reason

SEGMENTATION & ASSESSMENT OF INITIAL SATISFACTION LEVELS

RELEVANT INCENTIVES

WHERE WHAT

PLATFORM & TOOLS

HOW

MEASURE WIN WIN

HOW MUCH

It is presented in a modular process

1 2 3 4

EASY TO FOLLOW 4STAGES

Leveraging on existing informationTO BUILD A

SUSTAINABLE CUSTOMER ENGAGEMENT PROGRAM

Segmentation – WHY?

SEGMENTATION• Not all strategic customers want THE SAME

• But you need to motivate most of them to CHANGE BEHAVIOR

• With RELEVANT OFFERS that will help to create differentiation from all other engagement programs where they participate

• OPTIMIZING INVESTMENT by focusing on what really matters

DOES NOT MEANCOMPLICATION

Companies that PULL this stage spend in average 30% more money on INNEFICIENCIES

WHERE1

Easy adapt to new situations. Short period planners. Day by Day philosophy. Money talks.

Always in the search for alternatives. Resourceful people who get water from stones

Team workers who value the support from others. Trustable people with long term plans

Working for a better future. Value learning and development.

OBJECTIVES• How satisfied are your most

strategic customers with the service you provide?

• Which company is the Benchmark Supplier?

• How is your performance compared to the benchmark in your category?

• What to do to improve? Customer Expectations

Perceived Overall Quality

Perceived Value

Customer Satisfaction

Customer Loyalty

Customer Complaints

HAVE TO vs WANT TOINDEX

TM

Assessment of Satisfaction – WHY? WHERE1

Not all strategic Customers will require the same amount of effort and investment to get engaged with you

Benchmark Supplier

INDEX

YOU CATEGORY

LOYALTY HIGHLOW

SWIT

CHIN

G M

OO

D

HIGH

LOW

WANT TO

HAVE TO

START - END

CRITICAL

CUSTOMER INDEX CUSTOMER MAP

VARIABLE CORRELATION (r2)

YOUR SCORE

AVG CATEGORY BMK SCORE

Sales team profile

Frequency of visit

Quality of Service

Promotional Offers

VARIABLE TABLE

Assessment of Satisfaction – WHY? WHERE1

Our Model delivers critical insights in simple and easy to use tables and charts

Assessment of Satisfaction – WHY?

To understand the DEPARTING POINT in the relationship:

SATISFACTION

NET

TURN

OVE

R ($

$)

(Willingness to work to BAT)

WHERE1

Allowing to identify the investment required to CHANGE EXISTING BEHAVIORS

YOU WANT

CUSTOMERS WANT• There might be groups of strategic customers where the

investment required to recover or rebuild the necessary engagement is beyond financial feasibility

• The risk of burning budgets before crossing the Emotional Point is high (achieving CHANGE IN BEHAVIOR)

Emot

iona

l Sat

isfac

tion

Time

Minimum required to take a positive action towards BAT

BAT Budget

Relevant Incentives – WHY?

TMC will help to build A RELEVANT INCENTIVE PACK by Customer Segment…

WHAT2

TO GENERATE ENGAGEMENT BEYOND

MONEY

IT IS REQUIRED TO BALANCE PERSONAL & BUSINESS NEEDS

WHAT DO THEY REALLY WANT?

PYRAMID OF NEEDS

COST MARGIN VOLUME

PROMOTERS FIXEDMERCHANDISE GIVE AWAYS DISCOUNTS FEES CREDIT DAYSSPECIAL

PROMOTION

EXISTING INFORMATION / MARKET KNOWLEDGE & TRENDS (Country, Market, Channel, Retail specifics)

SKILLS & DEVELOPMENT(Access to Professional Training programs for Managers, Executives and Staff with Diploma)

ACCESS TO SUPPLIERS & AGENCIES

CONSULTANCY (Marketing, Finance, Operation, Management)

…To define the appropriate set of Metrics that define SUCCESS in the short and long term

$$SHORT TERM

MIDIUM TERM

LONG TERM

• Programs must be Financially Sustainable: more than 80% of Customer Engagement programs in USA and Europe created since year 2000 are no longer operative.

• Only in US, companies spend more than 2 billion US$ / year in Engagement Programs without clear definition of the expected RETURN OF INVESTEMENT

• More than 80% of Engagement Programs that are launched without clear objectives are closed within a year.MIN

D

HOW MUCH3 Measure WIN WIN – WHY?

VALUE

BEAR IN

Measure WIN WIN – WHY?HOW MUCH3

• Does it worth to continue dealing with Industry products?

• Does it worth to continue dealing with your company and products?

• Does it worth to continue buying the same? Increase certain brands/skus?

• What is the ROI for the average strategic customer?

…To provide answer to the following critical questions

?CUSTOMER

• How much an effective program will COST?

• What could happen with Volume & Profit if we don’t do anything?

• What is the ROI? Is this good, average or excellent?INTERNAL

Platform – WHY?

…And to Create a SECURE and SIMPLE platform to optimize management and control

HOW4

SELF MANAGED

LOW MAINTENANCE COSTS

To develop the mobile application, making use of latest trends in terms of communications and interfaces for user experience

• Develop an app for Android 2.6+, based on our sales force automation solution. sfanet.net. This will be the face of the program for Customers.

• Develop a Web portal for management and control also based on sfanet.net with the possibility to export and download information and reports in different standard formats. (Excel and XML)

• Building a "cloud" for data centralization, backup and real-time processing of mobile application

Platform – WHY?

Flexible enough to interact in different ways with target Customers beyond just traditional point collection

HOW4

RAFFLES

INSTANT WIN PRIZES

COLLECT POINTS

Necessary to BUST PARTICIPATION in certain periods of time (i.e. before, during and after a change in Trading Terms)

Necessary to CHANGE BEHAVIOR by repetition of desired actions for longer periods of time.

Build TRUST on the program by testing the Platform, Process and Systems. Provide frequency of interaction. Lowest Value prizes

We turn your challenges into solutions

We want to hear about your Biggest Commercial concerns and challengesso we can prepare a business proposalto quickly revert the situation and accelerate growth!

Thanks

Carlos I. AlfonzoM: (21) 981788488O: (21) 20255709

Av. das Américas 500, Bloco 9, Sala 129-130. Barra da Tijuca. Rio de Janeiro. RJ – Brasil. 22640-100

www.tmcconsultores.comwww.incompanybs.com