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Transcript
CRM in Retail
case studies of outsourced solutions for
small, mid-sized and large companies
Retail in Detail Conference, 30th September 2009
Yuval Katz: Chairman of the Board, Retail Adventures, a.s.
09/2009
Prague, Czech Republic
Retail Adventures: „We Bring Adventure to Retail”
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Yuval Katz: Chairman of the Board of Retail Adventures
• For the last 18 years, active in the supply of Retail Technologies in CEE via the Novum Group
• Scope of Novum Group, (of which Retail Adventures is member of) includes retail software,
retail hardware, and customer loyalty solutions
Mission Statement
• Help retailers achieve financial goals by using available data, utilizing innovative retail
adventures techniques and to up to date communication technologies.
ČS Bonus Program – complete outsourcing, Julius Meinl – BON, Quelle
Service range
• CRM
• Interactive customer communication (on and offline)
• SMS and MMS communications
• POS integration
• Loyalty systems
• Interactive Voice Responses
• Call Center, IVR, WebCall Integration
Today, things are different
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Increased competition
Cost cutting pressures
Supply chain achieved its limit
Little (mostly cost driven) differentiation
Tesco is setting new standards
• segmentation
• value delivery
• supply chain management
Can we do what Tesco does?
• How much will this cost?
• Tesco invested millions of pounds over the years in their solution!
Actually, very few retailers achieved it
The secret to success is hidden in the data
• understanding, differentiation, exploitation, and interaction with customer
Customers in the 21st Century
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Very different
Want attention
In power – listen, do not push
Multi-channel and multi-media
Cautious on private data
Like to play
Like to share with others
Seeking true value (retailer and supplier cooperation)
Customer demand translated into retail processes:
• Category management
• Store design, Online experience
• Customer services
Customer wants VALUE!
A typical scenario in today‘s specialized retail
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20 outlets,
Time limited supplier financed leaflet actions driven by seasonality or inventory
priorities
Plastic customer card issued -> discount provided
Basic customer data stored at POS level, basket data available (in raw form)
Brand website available including e-shop, newsletter sent, 30% of customers with
electronic contacts (email, mobile)
Why it is not bringing the desired results?
Retailer in the blind
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The initiative in place does not address many of the points that such a system should
address
Non existing, or limited tracking of customers behavior across all selling and
interaction platforms resulting in
Potential mismatch between
• general pricing level and customer’s wallet
• actual customer demand and store ambience and atmosphere
Weak inventory forecasting
• WHICH assortment to stock?
• HOW MUCH of that assortment to stock? .
In case of promotions, little ability to predict results
Either low or high response rates resulting in stock inefficiencies and poor cash flow
management
Retailer in the defensive
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In today’s environment of the financial crisis, retailers tend to assemble at the lowest
common denominator, which is PRICING POLITICS
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Often unneeded discounts are given to customers who come to the shop because of
other reasons
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The alternative is to really work on having a better understanding on our customers
behavior, likes and dislikes
Why Pareto is Crucial to your Business?
% MVC
Av. Customer
C&A
23
35
Hugo Boss
9
0
Marks&Spencer
23
23
Next
4
0
OP Prostějov
18
45
Pierre Cardin
4
0
Pietro Filipi
9
8
Steilmann
5
0
Stones
7
0
Sunset Suits
8
3
Zara Men
6
0
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MVC – Most Valuable Customer
• 30% make 70% of revenue
• Small share on total No of
customers – little weight on
total answers
• Overall higher spend
• Significantly broader
selection
• Sophisticated and
demanding
• Very much different value
requirements
Average Customer
• BIG brands matter
• Flat, price competition
CRM can help you to achieve your business goals – how?
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Market share, turnover, cash flow, profitability
Identify
Distinguish
Influence
Customize
Customer:
Identification
Contact info
Transactions
Interactions
Value:
Current profit
Strategic profit
Needs:
Segment
Individual
Learn more:
Needs
Values
Preferences
Customer`s
needs:
Products
Services
Price policy
Communication
Channels
Consolidated
customer view
Customers are
not the same
What is
the benefit
Time, money,
convenience
Identify
Customer enrolment
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Register your customer via
mobile, brand or corporate
web site
Start small – create
relationship first, upsell
later with card (loyalty,
payment)
Capture your web site
potential
Some customers will not
carry card but want to
interact – young audience
Entertain – exclusive
information, e-coupons
Track purchase from
campaign to POS – make
smart decisions
Distinguish
Segmentation
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Key functionality – ability to
track, understand, differentiate
customers by behavior
Not only POS transactions
(basket) but also all customer
touch points – full picture in
one application
Built-in segmentation engine
Same data model used for data
mining procedures
Data mining outputs used as
segment definitions in
campaigns
Campaign results filled back in
segment profile
Influence
Personalized communication – all channels
Letter, internet, SMS, PR SMS, MMS, wap, email, e-coupons
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After defining a segment and
understanding its behavior
personalized campaign can be
created in the same application
Personalization not only in name
but also in content of the
message
Campaign performance
reporting part of each campaign
– immediate feedback to
campaign success
Customer response to the
campaign added to its profile
and history
Excellent for tests – measure on
sample then roll out to full DB
Influence
Personalized web pages – customer in power
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Extranet pages under login
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Visuals and content is changing
depending on segment
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Pages can be administrated
directly from application
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Can be used for B2B and B2C
programs
Influence
Customer communities – web 2.0
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Community management tool
built in application
Platform for customer
interaction and sharing
Ability to create, manage and
monitor customer behavior and
preferences
Customers involved in building
brand
Excellent feedback on corporate,
brand performance
Great self-service tool –
significant reduction of servicing
cost
Challenge of managing issues
Influence
Promotions – SMS, email, e-coupon
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All channels available for
promotions
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E-coupons issued via internet,
mobile or email
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Ability to track coupon
redemption at POS
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Available for reward
management – ordering and
redemption
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Comprehensive campaign
performance report
Influence
Internet campaigns
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Built-in solution for internet
campaign planning,
management and reporting
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Ideal for supplier promotions
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Ability to track customer
incentive tools (banner click,
coupons) back to purchase at
POS
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Closing the marketing loop – real
time feedback on campaign
effectiveness
Influence
Loyalty program – B2C, B2B, single, coalition – clearing
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Medium and Long Term
Approach
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Builds on a regular
communication platform
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Reduces overall
expenditure per action
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“Behavioral Training”
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Brings long term and
lasting results
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Emotional Bonding
Influence
Printed catalogues
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Printed catalogues have a long shelf life
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They are reference materials and
specifically during holiday season help
influence behavior
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Useable as advertising platforms
Influence
MojeBody.CZ Outsourced Fulfillment
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MojeBody.cz is a platform
for applying and optionally
consolidating points from
different suppliers
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Valuable in order to
increase overall value for
customer, while keeping
costs for the retailer lower
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“Loyalty Solution in a Box”
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High Value for money as it
uses an electronic
distribution and fulfillment
platform
Influence
Campaign management
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Campaign management tool for
setting, managing and monitoring
all activities and channels
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Direct and mass campaigns
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Community, personalized web
pages, loyalty program
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Easy to navigate campaign
overview with drill down function
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Filter for activity type and time
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Different color for different activity
type
Customize
Adapt your retail processes based on customer insights
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Assortment/category strategies
• Destination categories for core/perspective
segments
• Top up categories for core/perspective
segments
Brand strategies
• Up sell brands
• Cross-sell brands
• Top up brands (impulse shopping, trial
shopping)
• Replace brands (brand switchers)
• High frequency vrs. high margin
Store layout strategies
• Reflect core/perspective segments
Supplier strategies
• Assortment targets (segment repertoire)
• Campaign targets (sales, satisfaction)
• Margin targets (increase, brand/SKU testing,
non/price sensitive segments)
Repertoire analyses – speculative – mass activities
(leaflets)
Retailer AND supplier model
How to create win-win situation
Retail CRM
data exchange
customer
Hosted
supplier
CRM
da
an
xch
e
ta
dat
Shared customer base
Shared knowledge
Shared cost
Shared infrastructure
a ex
ge
supplier 1
cha
nge
supplier 2
Instant and cost effective solution for retail CRM
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Invite retail CRM is available via
key POS suppliers – APLS, Datec,
Global Systems, USluno
Data model and interface
already developed – fast and
low cost implementation
Cross-boarder, multi-language
Supports Retailer-Supplier
cooperation (ASP, sharing data)
Cost effective due to thin client
architecture
Rent, self-funding, ASP business
model
Solution…. and a gift for you
Shelter for abandoned dogs
V Zámcích 56, Praha 8 – Troja | www.upozpraha.cz/utulek-troja.html
Real solution which works
A dog is not a solution to secure your customer loyalty…
…this is a task for Retail Adventures.
„CALL US!“