Download GALERIA KAufHof IN ouR CuSTomERS` SHoES

C L I EN T
INSIGH T
GALERIA Kaufhof
In our customers’ shoes
Customer segmentations form the basis for GALERIA Kaufhof
marketing strategies
Ever changing market developments and trends
mean GALERIA Kaufhof has to realign and reassess
its department stores again and again to remain
the number one choice for shoppers – particularly
as eCommerce and a Multi­channel marketing
approach continue to gain momentum.
To lay the foundations for enhanced shopping experiences and
future marketing strategies, the company was looking to more clearly
understand its customers, their behaviour and their needs. “Who
are our customers and what do they want?”, is how Marc Neurath,
Head of CRM at GALERIA Kaufhof summarised the two key questions
and the driving force behind the project with emnos.
Really getting to know the customer
As emnos empowers retailers and consumer businesses to distill
customer data and turn it into tangible business growth, the project
with GALERIA Kaufhof focused on extensive customer segmentations.
Client Insight | GALERIA Kaufhof | 04/2014
GALERIA Kaufhof
With over 130 years in the department store business, GALERIA Kaufhof
has a long heritage in anticipating and
shaping shopping trends in Germany.
105 department stores in 80 cities now
serve two million customers on a daily
basis. Quality, exclusivity and reliability
combine with qualified and service
oriented staff.
“To meet customer expectations, our department stores offer a carefully
selected product range – from decorating equipment to damask tablecloths,
trendy clothing and exclusive premium suits. Given this diverse product
range, GALERIA Kaufhof customers show a heterogeneous shopping
behaviour across categories and departments,” explained Marc Neurath.
“Who are our
customers
and what do
they want?”
Marc Neurath
“For example,” he continued, “some customers attach great importance
to quality and brands when purchasing their own clothing but opt for lower
budget products when choosing cooking equipment – and some customers
are the complete opposite.” These disparate shopping habits are a challenge
from a marketing and segmentation perspective and had to be taken into
consideration in the segmentation process.
As emnos customer segmentations are based on factual product and
basket data, the project started with a data audit. Two years of transactions,
including PAYBACK loyalty card data and additional store, customer, product
and hierarchy information, were analysed and aggregated to develop
the customer segmentations.
In a step by step approach, emnos created three types of segmentation:
A so-called ‘need segmentation’ for each of the four GALERIA Kaufhof
product categories (women, men, children and home) to understand
more about product choice.
A ‘meta segmentation’ combining the four need segmentations
and developed as a strategic umbrella.
The above were complemented with additional customer panel research
to investigate, for example, the interest in eCommerce and the affinity
to purchase online in the GALERIA Kaufhof webshop.
A third ‘mission segmentation’ was developed to reveal more about
customer reasons to purchase. It is important to understand the missions
in order to tap the full cross selling potential on the shelf, on the path
to the desired product category and at the point of purchase.
Need segmentati on
Need
1
Data
AUdit
Need
2
Need
3
Need
4
Meta segmentation
Customer Panel
Mission Segmentation
2
Client Insight | GALERIA Kaufhof | 04/2014
Marketing
mix
Staying ahead of customer interests
emnos segmentations are based on customer shopping behaviour at the
GALERIA Kaufhof department stores, profiled with socio-demographic data
and market research. GALERIA Kaufhof relies on the web-based software
solution, emnos Segmenter, to keep customer segmentations up-to-date
and track behavioural changes and movement between the segments.
Marketing mix based on facts
Based on the segmentation, GALERIA Kaufhof further enhanced the
customer experience in its department stores. “The segmentations were
the basis for the marketing plan in 2013 and were also considered in the
on- and offline marketing mix. Only when we understand our customers
and their individual needs, can we create inspiring shopping experiences
for all customers,” added Marc Neurath. “To keep us a step ahead in our
marketing, we use emnos Segmenter.”
“To keep us a step
ahead in our
marketing, we use
emnos Segmenter.”
Marc Neurath
As eCommerce and Multichannel become more important, emnos
segmentation results are not only used for traditional offline, but also
online, direct marketing activities. They also give guidance on customer
target groups and category management decisions.
To make it easy for the whole company to understand the identified
customer segments, GALERIA Kaufhof built four dedicated “segment worlds”
at its headquarters. Touring around the “segment worlds” helps personnel
get a stronger grasp and understanding of the implications for their daily
work. “The interest in these tours is overwhelming and each one is very well
attended,” commented Marc Neurath.
Overall, by using and embedding emnos segmentations
in day to day operations, GALERIA Kaufhof is able to base
all its strategies and decisions on real facts and has started
a continuing customer centric journey.
Marc Neurath is Head of CRM
at GALERIA Kaufhof
3
About emnos
emnos is a pioneer in analysing customer data and interpreting what it reveals about customer behaviour.
Some of the world’s top retailers and suppliers choose emnos for its unmatched ability and expertise
in mining and decoding billions of retail transactions and interactions. The insights revealed by this data
impact marketing, merchandising, pricing and promotional decision-making on a daily basis and can be
used to deliver tangible business growth. emnos services and solutions typically enable clients to realise
a 4-6% revenue increase on turnover and over 2% margin growth.
Operating throughout Europe and in the USA, emnos is part of Loyalty Partner, a subsidiary of American
Express. To learn more about emnos and its unique offering of strategic planning, retail data analytics
and insight solutions, visit www.emnos.com
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Client Insight | GALERIA Kaufhof | 04/2014