When Customer is King, what is the retailer?

Carsten Wulff, Regional Director EuropeLS Retail

LS Retail • HQ Reykjavik• 117 employees in 11 countries• Companies in Atlanta, Dubai,

Singapore

26years

The Retail Experts

150 LS Retail Partners

Certified by Microsoft

Fashion /apparel

25%

Other26%Supermarkets /

Grocery12%

Hospitality / Restaurants

9%

Consumer electronics

8%

Furniture6%

Hardware / DIY5%

Duty Free5%

Pharmacies4% Vertica

lsAnd sales

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

20,000

40,000

60,000

80,000

100,000

0

500

1,000

1,500

2,000

2,500Cumulative Unit Sales - All Products

POS Store Customers

Customers

Change in customer behaviorThe connected customer is King !

Change in customer behaviorIt is a new regime !

Source: Microsoft 2014

Why is personalization important for the customers and the retailer?

Personalization is ImportantBecause there are things I hate about retailing!

Personalization is Important... And there are things I like !

Customers Want PersonalizationRecognition

Would switch most of their spend if they were frequently recognized their previous spend

Customization

Would actively welcome more customized promotions

40 % 40 %Peter Lewis, Loblaw and Graeme MCcVie, LoyaltyOne at NRF 2014

What types of personalization do customers want?

Peter Lewis, Loblaw and Graeme MCcVie, LoyaltyOne at NRF 2014

The Experience of MonoprixFeedback from more than a half-million Monoprix customers shows that:

• 1 opportunity shopper is worth 90€ per month• 1 good loyal shopper is worth 200€ per month• The most loyal shoppers are worth 400€ per month• A loyal multichannel shopper buys 43% more than a loyal

store shopperStephane Maquaire, CEO of Monoprix at NRF 2014

What do the customers say?Relevance

Do not receive relevant offers today from retailers

Rewards

Do not receive any meaningful benefits from sharing personal information

50 % 75 %Peter Lewis, Loblaw and Graeme MCcVie, LoyaltyOne at NRF 2014

The gapThe Customer says• Deal with me on my terms• Listen to me• Get to know me• Give me your best price (I

can compare!)• Involve me in your brand

The Retailer wants• More customers• Larger sales per customer• Customer loyalty• Brand awareness

Bridging the gap

Mobile Loyalty

Loyalty Portal

e-Commerce

Windows Client

Web Client

SharePoint Client

LS POS NAV

Mobile Inventory

Mobile POS

LS Retail and Loyalty• Understand the customer– Personal info– Lifestyle– Shopping habits

• Reward the customer• Personalized Offers• Relevant campaigns• Convenient omnichannel shopping

Understand the customer • Specific Pricing• Offers

– Loyalty Level– Attributes

• Personal• System• Dynamic (in real time)

– Multiple Benefits• Discount / Price• Special Loyalty Points• Gifts• Coupons

– Published Offers for Marketing• Coupons

– General– Customer Specific

• Multiple Clubs• Multiple Levels• Automatic Upgrade &

Downgrade• Direct Marketing• Point Collection with point

offers• Special Price Structure• Full traceability of usage

and discount with a budget• Loyalty Campaigns

Loyalty – Back Office Management

Loyalty – Customer App• Personal• Synchronized e-Commerce

& Mobile App• Shop• Offers• Coupons• Notification• Shopping Lists• History• Store Locations

Mobile Loyalty

• What goods and services the retailer offers• Where is the retailer

located• Interesting offers and

prices • Never looses

coupons again• Sales History is visible

at a glance

Personalized services at your fingertip

The customer get what he wants

• Recognition• Meaningful benefits• Attractive reward program• Personalized offers• Relevant promotions and

campaigns• Easy shopping

Increase Profit with LS Retail Loyalty

• Attract new customers• Turn opportunity customers in

to loyal customers• Turn customers into

multichannel customers• Increase sales per customer

Conclusion

When the customer King, the retailer can make a lot of profit from being the

favorite supplier