how do data collection and management influence your efficiency and profit?

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1 Solution INBOX Customer Relationship Management Unlock the sleeping potentials

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For whose who couldn't attend to the conference "Fashion Retail & Distribution" organized by BBCG in Moscow - How clever retailers are improving their profit through loyalty? By Vincent Lootens from Inbox

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Page 1: How do data collection and management influence your efficiency and profit?

1 Solution INBOX 14/10/09

Customer Relationship Management

Unlock the sleeping potentials

Page 2: How do data collection and management influence your efficiency and profit?

2 Solution INBOX

A unique combination of marketing and technology expertise to identify and reap customer value.

Inbox is an independent consulting firm founded in 2001 specialized in customer marketing.

We help our clients better understand the behavior of their customers and enhance interaction with them.

Inbox assists its clients from analysis, (data mining, specification, design), to implementation of operational CRM solutions.

We develop customized and evolving solutions based on our expertise and operational knowledge of the business challenges our clients face.

Page 3: How do data collection and management influence your efficiency and profit?

3 Solution INBOX 14/10/09

A diversified portfolio with an emphasis on Consumers’ services.

Last year, we performed:

60+ product appetite scores

27 audits of customers’ behavior

22 relational action plans designed and implemented

19 customer segmentations

40 marketing DB hosted and managed

Over 62 million individuals’ data hosted

92% of clients are very satisfied

20%

18%

15% 13%

11%

10%

8% 5%

Revenues by sector

Finance

Retail / Luxury

Media / Telco

Insurance

Press

Mail & Online vendors

FMCG

Leasure / Tourism

40%

24%

13%

13%

7% 3%

Revenues by offer

Analytics / Clients DB

Datahosting

Interactive & relationalanimation

Consultancy

Reporting tools

Online questionnaire

Leisure / Tourism

Page 4: How do data collection and management influence your efficiency and profit?

4 Solution INBOX

Inbox’s international coverage

Inbox operates in 7 countries on 3 continents:

EUROPE

• Founded in 2001 in Paris

• Since 2008 in Moscow

NORTH AMERICA

• Since 2013 in Washington D.C.

• Canada (Montreal)

EMERGING MARKETS

• Since 2009 in Tunisia

• Since 2011 in Morocco

• Partnerships in the Middle-East

Page 5: How do data collection and management influence your efficiency and profit?

5 Solution INBOX 14/10/09

WHAT WE DO

Page 6: How do data collection and management influence your efficiency and profit?

6 Solution INBOX 14/10/09

SATISFACTION CLIENT

MARGIN

REVENUES

ROI

GR

OW

TH

RE

CO

MM

AN

DA

TIO

N

OUTSTANDING RELATIONSHIP

SALES

TRUST

SUBSCRIPTION

CROSS SELLING

UP

SE

LLIN

G

We make big data & marketing studies accessible

for a company with limited (or not) ressources

PROFITABILITY…

&

…CLIENT LOYALTY?

Page 7: How do data collection and management influence your efficiency and profit?

7 Solution INBOX

Our areas of expertise

KYC

Cross/Up-Selling

Prevent & Stop Churn

Cross-Channel

Campaigns

Lead Generation

& Conversion

MORE TO

EXISTING

CUSTOMERS SE

LL

LEADS

TO CUSTOMERS CO

N-

VE

RT

PREDICT YOUR

CUSTOMERS

NEEDS KN

OW

CUSTOMER

CHURN ST

OP

BY OPTIMIZING

YOUR

CAMPAIGNS SA

VE

Page 8: How do data collection and management influence your efficiency and profit?

8 Solution INBOX 14/10/09

Evolutions in the context,…

Page 9: How do data collection and management influence your efficiency and profit?

9 Solution INBOX

Context has evolved, yes… as,

A progressive saturation of the consumers’ needs

Improvement in the offer

Catch-up of the economy (globalization)

A Russian consumer more demanding

Higher penetration of goods, services

Higher exposure to foreign markets

Over the period 2009 – 2012:

Issuance of “discount card”: Discount first & last BUT: Value destructive Absence of differentiation

• 55% of the CRM initiatives have missed

their targets (Gartner Group – 2010)

• 50% of multi-programs penetration in key urban centers

• 70% of purchase decision making process remains at the point of sales

(Inter-Act System – 2011)

0.2%

20.2%

47.7%

31.8%

Ни одной

От 1 до2

От 3 до 5

Более чем 5

Quantity of cards

Page 10: How do data collection and management influence your efficiency and profit?

10 Solution INBOX

Consumer’s behaviour is changing

2%

8%

61%

29%

Конечно, нет

Скорее всего, нет

Да, вероятно

Обязательно

Is the loyalty card, a stimulus in your choice?

1%

19%

20%

47%

53%

59%

67%

76%

76%

81%

Иное

Привычка

Рекомендации родственников, друзей, знакомых, …

Удобное расположение магазина

Предлагаемые бренды

Программа лояльности/ дисконтная программа для …

Система скидок или акции

Качество

Ассортимент товаров

Цены

Criteria of customers’ preference towards retail chain

• Discount is good but prices reality would be better

• Depth & width of the assortment become KEY in the differentiation

• Quality remains a strong pillar

• … the consumer is looking for better consideration & greater attention, and ready to play WIN-WIN

Page 11: How do data collection and management influence your efficiency and profit?

11 Solution INBOX 14/10/09

One to One & CRM

A strategic vision

Page 12: How do data collection and management influence your efficiency and profit?

12 Solution INBOX

Positioning

Target

SWOT Analysis

Distance

Capacity to federate

Communication

Competition Communication

Budget

HR

DEFINITION

Customer Relationship Management

Action to manage, organize the links between different persons who do

exchange – positively or negatively – under commercial terms goods and/or services

within constraints (budgetary, human resources, commercial pressure) which lead to necessary arbitration and then,

selection and targeting

Training, job description What for? Me too or Strategic pillar?

Where do I stand today?

Alone or in partnership

Which resource allocations for which results?

Perceived image

Page 13: How do data collection and management influence your efficiency and profit?

13 Solution INBOX

10 Basic Rules of Success

Clearly define from the beginning realistic targets (industry, sector,…)

Build a Business Case and keep it up-to-date

Obtain and keep the support of the General Management

Execute quickly the project to obtain quick results

Limit and control the perimeter of the CRM project

Be aware of change management

Get involved the users throughout the project

Drive (manage) strictly the project

Get it properly integrated into your environment

Measure the results with agreed and shared K.P.I

Page 14: How do data collection and management influence your efficiency and profit?

14 Solution INBOX 14/10/09

Customer DB

Channel Management

Relational Marketing

Customer Service

Sales Productivity

New Product Development

Strategic Marketing

Key advantages of DB set-up

Definition of price policy

Client & Customer Segmentation

Profitability & Efficiency of DM programs

Margin analysis per distribution channel

Customers expectations & preferences

Geo-marketing (competitive analysis) Cost of recruitment or retention of customers

In-depth customers’ knowledge, history of the relations

Market trends

Customer expectation

Sales history per products categories

Demand, volume, profitability simulations

Efficiency of the sales process

Customer satisfaction (follow-up,…)

Individualization of the client knowledge

Individualization of the offers

Page 15: How do data collection and management influence your efficiency and profit?

15 Solution INBOX 14/10/09

Beyond the mirror,…

Page 16: How do data collection and management influence your efficiency and profit?

16 Solution INBOX

Why developing a CRM program? Creating additional turnover

Extending and improving the relationship between the brand and its customers

• Retaining the good customers

• Reactivating occasional customers

• Maintaining proximity between the customers and the brand

• Improving knowledge of the customers from the get-go

• Paying attention to the events of the client's life

• Supporting the acquisition of new members

Triggering additional purchases

• Anticipating renewal habits

• Increasing volumes of purchases of families of goods

• Encouraging cross-selling

Controling the investments

• Avoiding unnecessary proposals (too frequent, redundant, inadapted)

• Developing a balanced bonus scheme (not too much, not too ittle)

• Chosing the most profitable and relevant channels for each customer and actions

• Integrating all proposals in one program

Page 17: How do data collection and management influence your efficiency and profit?

17 Solution INBOX 14/10/09

Managing the CLV: our client’s end-goal

Retain/Expand Attrite/Win-Back

Program Enrollment

Rewards related

promotions

Value Added proposition:

Partnership offers

VIP treatment

Laps Prevention

Extend and restart the

customer lifecycle

Acquire Develop

Clear Costumer

roadmap Customer Lifetime Value to segment and target based on behavior

Define acquisition

targets

Lapsed win back

Page 18: How do data collection and management influence your efficiency and profit?

18 Solution INBOX

But different marketing is required,…

• Consumer Insights

• Product/brand benefits

• Monologue

Product

Marketing

• Consumer Behaviors

• Consumer aspiration

• Dialogue

Consumer

Marketing

Today

Tom

orro

w

Page 19: How do data collection and management influence your efficiency and profit?

19 Solution INBOX

Your mission : to build proximity

A great proximity with the customer is A KEY axis of differentiation vs competitors - it aims at creating a link based on mutual capability to:

• Listen, exchange, share

• Thank, punish, reward

• Federate, value, entertain

-5

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6 7

Customer profitability over time

Price premium

Referrals

Reduced operating costs

Repeated order

Cross Sales

Base profit

Acquisition

Average length of customer relationship (years)

Because a LOYAL customer is WORTH it

Know

& Understand

Communicate directly

Develop interest

Gain

proximity

Share

Page 20: How do data collection and management influence your efficiency and profit?

20 Solution INBOX

Your target: to collect DATA

Any person in contact with the customer is a :

DATA COLLECTION POINT (DCP)

Consolidation of the data into common database

De-duplication of the contacts (recommended)

Interface Reporting

Retained Customers Program

New Customer Cultivation Program

Any point of contact with the customer is a :

DATA COLLECTION PROMOTER (DCP)

Page 21: How do data collection and management influence your efficiency and profit?

21 Solution INBOX

Your weapon: CRM analytics tools

Segmentation

Assessment

Selection

• Behavioral

• Potential/Value

• Scoring

• Expertise

• Target

• Constraint

100,000

70,000

28,000

The best potential of results and R.O.I

Prospects for special offer, new offer,…

Page 22: How do data collection and management influence your efficiency and profit?

22 Solution INBOX

From brand communication to individual relationship

-> Main belief: the success of loyalty program requires the commitment of the commercial/sales staff into its success and execution

Seasonal or

promotional offers

to any one

Actions targeted on

homogeneous

group of clients

Targeted action

client by client

Easy to implement

Véhicle of the brand and

commercial animation

Stronger relevancy of

the marketing &

commercial action plan

Knowledge and

maximum recognition of

consumer

One AD like others

Risk of low effectiveness

Need to rely on a

knowledgeable

consumer database

Complexity, ability to

manage offers matching

each segment

Advantages Limitations, Attention

1

2

3

Page 23: How do data collection and management influence your efficiency and profit?

23 Solution INBOX

Architecture of customer relationship

Budgetary constraints

Over sollicitations

Loyalty

program

• Tool to acquire

customer knowledge

• Vector of

communication

Relational

action plan

• Tool of activation and

stimulation through

commercial plan

• « ROI driver »

Constraints

Channels

Pillars

Customer

Knowledge

• Basis of observation

and individual

understanding

• Compulsory to enable

personalization of the

relation

Page 24: How do data collection and management influence your efficiency and profit?

24 Solution INBOX

Main elements to consider in the creation of loyalty program

Rewarding system

Transactional Service Relational

Materializing the program

Supports

Package and

communication

Status

Page 25: How do data collection and management influence your efficiency and profit?

25 Solution INBOX

How do you feel ?

« I’m offering you this bouquet! »

« I’m offering you this bouquet of

a 20€ value! »

« I’m offering you this bouquet of

a 20€ value that I bought with a

promotion at 15€ ! »

Page 26: How do data collection and management influence your efficiency and profit?

26 Solution INBOX

• Basis of the program : bonus program and services standards

• Important to consider possibility to « punish », should cardholder not fullfill minimum requirements.

Working principles :

-> Lisibility, simplicity

-> Targeted offers aiming at delivering on cross-sell, average check increase, frequency of purchase, optimizing perceived value of brand

-> Real reward with a real perceived value but with as lowest possible as association to price reduction, and as much as possible to gift attached

Rewarding system

• Access to services: pre-booking, delivery, limited edition, gift pack, …

• Granted services are targeted in accordance with company’s goals and postioning

Working principles:

-> Services developed: free delivery, gift package, booking of best sellers, … perceived as useful to clients, and easy to implement for the brand

-> Huge work has been performed on the perceived value of the service and the emotion attached to received recognition

• Whole communication and events has been built to create proximity and keep the relation alive an active (private space, mobile app.)

• Exclusive information, recurring meeting point (newsletter, SMS, private space,...) : real story teller bringing meaningful insights and getting cardholder participant.

• Events in shop (private sales, night opening,...) …

• Satisfaction survey

Working principles :

-> Strengthen the brand consistency, and imagery, supporting top of mind in consumers’ mind

Transactional Service Relational

-> As main outcomes, the transactional reward has been set to stimulate cross-sell &

up-sell, based on offers designed as per customers’ profiles (including share of wallet)

-> Services has been deployed after internal training of « services » leaders with review

of the motivation system (especially with regards to VIP status – TBC)

Page 27: How do data collection and management influence your efficiency and profit?

27 Solution INBOX

• Supports of the program : loyalty card, recognition feature or space in shop, or virtual card

• Supports de communication / habillage

• Ton et image du programme

• Canaux de communication

• Transversal axis across the all members, towards which will be define differently the different offers (rewards and materialization of the program)

• « Premium » or VIP status : promise, positioning of the brand to be worked out, description,

• Who will value what is important to you, for your clients : need to build ladder

• Communication and différenciation feature to be built

Status

Materializing the loyalty program

Supports

-> Recognition in store is always perceived as a strong feature of the loyalty program, it has an strong impact on value perceived, increases the interest towards communication (emailing, smsing, brand offers) to the detriment of standard spech price / promo

-> Aspirational status requires a clear understanding and explanation of service standards

Package and

communication

Page 28: How do data collection and management influence your efficiency and profit?

28 Solution INBOX

Who buys what and for whom?

Purposes

- Drawing of cards by family of products & products

- Drawing of cards by type of customers

Identification of the consumer profile at a given period for a given family of products/brands vs

overall consumers basis

Outcomes

- Targeted campaigns to gain in readability

- Personalized offers to improve the out click

- To improve the marketing mix (where & how)

- To control the match between offer and profiles

Who & What

Who are the customers buying a specific category of product/brand or a product in particular?

What do they buy through the analysis of their basket over a given category or across categories

Page 29: How do data collection and management influence your efficiency and profit?

29 Solution INBOX

Who buys what and for whom? Product

category

Period covered

Customer profile

Women 45

< 25 yo 60

CSP + 22

Total 100

Generic profile

Women 55

< 25 yo 40

PCS + 34

Total 100

Customers

category

Period covered

Type of products

bought

Shoes 45

Jersey 60

Coat 12

Total 100

Generic profile

Shoes 20

Jersey 32

Coats 25

Total 100

This family of products shows a profile of

purchase with an over-representation of

young and low socio-professional (income)

class

This category of customers shows a profile of

purchase with an over-representation of

shoes, jersey and an under-representation of

coats.

Page 30: How do data collection and management influence your efficiency and profit?

30 Solution INBOX

Datamining to understand behaviors Any data (available or to be acquired), being relevant, enriches the understanding of customers behaviors and as a consequence enables the illustration of patterns and models – share of wallet, nurture rate,... Being characterized by consumer profiles

Source: Inbox study for KupiVIP

Page 31: How do data collection and management influence your efficiency and profit?

31 Solution INBOX

Leading to a segmentation to target offers as per customers’ tastes

• The segmentation was based on purchase habits; the 32 variables which represent the number of purchases in each group we previously designed.

• Developed on the basis of sample of 67 931 buyers having placed at least a purchase of two different brands, from 01/07/2010 to 01/07/2012

Distribution of customers in each group

Page 32: How do data collection and management influence your efficiency and profit?

32 Solution INBOX

Number % Number % Number % Per customer RUR % Per customer

AC1 To privilege 7 015 0,16% 6 005 85,6% 58 523 36,8% 9,75 290 734 463 41,7% 48 415

AC2 To build loyalty 5 382 0,13% 3 631 67,5% 16 711 10,5% 4,60 73 286 834 10,5% 20 184

AC3 To maintain 6 721 0,16% 3 577 53,2% 12 535 7,9% 3,50 57 169 304 8,2% 15 982

AC4 To be developed 9 834 0,23% 4 045 41,1% 10 449 6,6% 2,58 44 120 711 6,3% 10 907

AC5 To reactivate 5 672 0,13% 1 836 32,4% 4 872 3,1% 2,65 22 776 841 3,3% 12 406

34 624 0,81% 19 094 55,1% 103 090 64,9% 5,40 488 088 153 70% 25 562

IC1 Inactive, last purchase 3-6 months 12 420 0,29% 2 875 23,1% 6 672 4,2% 2,32 30 127 634 4,3% 10 479

IC2 Inactive, last purchase 6-12 months 12 310 0,29% 1 369 11,1% 2 962 1,9% 2,16 13 585 684 1,9% 9 924

IC3 Inactive, last purchase >12 months 7 251 0,17% 374 5,2% 810 0,5% 2,17 3 644 737 0,5% 9 745

31 981 0,75% 4 618 14,4% 10 444 6,6% 2,26 47 358 055 7% 10 255

NC11 New, One purchase, last one < 15 days 3 544 0,08% 1 126 31,8% 3 306 2,1% 2,94 13 207 170 1,9% 11 729

NC12 New, One purchase, last one 16-30 days 4 975 0,12% 867 17,4% 2 056 1,3% 2,37 7 265 635 1,0% 8 380

NC13 New, One purchase, last one 31-60 days 5 895 0,14% 773 13,1% 1 582 1,0% 2,05 5 928 651 0,9% 7 670

NC14 New, One purchase, last one 61-90 days 4 673 0,11% 538 11,5% 974 0,6% 1,81 3 640 809 0,5% 6 767

NC15 New, One purchase, last one 91-180 days 13 016 0,30% 1 148 8,8% 2 163 1,4% 1,88 7 996 962 1,1% 6 966

NC16 New, One purchase, last one >180 days 44 574 1,04% 1 507 3,4% 2 706 1,7% 1,80 9 864 663 1,4% 6 546

NC21 New, Two purchase, last one < 15 days 1 892 0,04% 814 43,0% 2 900 1,8% 3,56 11 505 445 1,6% 14 134

NC22 New, Two purchase, last one 16-30 days 1 991 0,05% 574 28,8% 1 536 1,0% 2,68 5 865 299 0,8% 10 218

NC23 New, Two purchase, last one 31-60 days 2 730 0,06% 642 23,5% 1 324 0,8% 2,06 4 753 241 0,7% 7 404

NC24 New, Two purchase, last one 61-90 days 2 122 0,05% 382 18,0% 754 0,5% 1,97 2 829 497 0,4% 7 407

NC25 New, Two purchase, last one 91-180 days 5 318 0,12% 675 12,7% 1 338 0,8% 1,98 4 964 052 0,7% 7 354

NC26 New, Two purchase, last one >180 days 13 315 0,31% 745 5,6% 1 406 0,9% 1,89 5 807 124 0,8% 7 795

104 045 2,44% 9 791 9,4% 22 045 13,9% 2,25 83 628 548 12% 8 541

R1 Registered < 15 days 159 942 3,75% 1 123 0,7% 2 313 1,5% 2,06 9 356 934 1,3% 8 332

R2 Registered 16-30 days 246 010 5,76% 972 0,4% 1 744 1,1% 1,79 5 819 028 0,8% 5 987

R3 Registered 31-60 days 227 873 5,34% 1 156 0,5% 1 959 1,2% 1,69 6 042 423 0,9% 5 227

R4 Registered 61-90 days 95 148 2,23% 574 0,6% 1 009 0,6% 1,76 3 515 476 0,5% 6 125

R5 Registered >90 days 3 368 914 78,92% 9 849 0,3% 16 237 10,2% 1,65 53 611 330 7,7% 5 443

4 097 887 96,00% 13 674 0,3% 23 262 14,6% 1,70 78 345 191 11% 5 730

4 268 537 100,00% 47 177 1,1% 158 841 100,0% 3,37 697 419 947 100% 14 783

All inactive customers

All New customers

All registered customers

ALL

Segment on 01/04/2011Customers

Activity on the next 3 month

Customers with purchases Orders Sales

All active customers

Turning into management tool Consumers segmentation – Purchase intents

Page 33: How do data collection and management influence your efficiency and profit?

33 Solution INBOX

Building the yearly CRM action plan CRM actions are integrated in the yearly marketing plan

During each action, CRM tools and communication provide support, stimulating different consumers segments with various triggers

CYCLE PLAN Y2012 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

DB type 1-6 7-13 14-20

21-28

1-6 7-13

14-20

21-27

28-31 1-10 11-17

18-24

25-30

1-8 9-15 16-22 23-31

1-5 6-12 13-19

20-26

27-30

1-10 11-17

18-24 25-31

1-7 8-14 15-21

22-28 29-31

1-11 12-18 19-25 26-30

1-9

10-16

17-23

24-31

1-6 7-13

14-20

21-27

28-30

1-11

12-18

19-25

26-31

Trendsbrands.ru

Event 1 Event 2 Event 3

Collect and save up to 30%

Get bonus for the 3rd purchase

Get you gift with next purchase

Welcoming messages GIFT

Brand newsletters More codes

Holiday congratulations letter

Compliment

Do you know? letters More points

Happy Birthday letter GIFT Once a year (gifts to be reserved)

Invitations to events Compliment 1 2 3

Trendsbrands.r

u Campaigns

News and

events

Qualitative

relational

program

Page 34: How do data collection and management influence your efficiency and profit?

34 Solution INBOX 14/10/09

How to use the analysis results?

Branded Campaigns News and events

Qualitative relational

program

Transaction-based

relational program

New seasons

Private sales

Fashion week

8th of March

Christmas

Back to school

….

Customer’s birthday

Relationship

anniversary

Store opening

Sales, rummage

sales

Website visits

Welcome pack

« To better serve

you » questionnaires

« Your opinion on

the new campaign »

Happy Hour

1 2

3 4

«Generate loyalty

among the right

customers.

Keep proximity between

the brand and

customers.

Better know the

customers from the 1st

contact »

« Keep proximity

between the brand and

customers.

Pay attention to the

events of the client's

life »

« Re-activate occasional

customers.

Anticipate renewal habits.

Grow purchase volumes

of families of goods

Motivate diversification of

purchases. »

Actions index

«Keep or develop

awareness.

Support brand

building.

Support sales and

promotion »

Page 35: How do data collection and management influence your efficiency and profit?

Daily

flo

w o

f data

On-line store

MARKETING

DATABASE Website:

Newsletters…

Stores

Optional addresses

normalization

Campaigns tracking:

reactivity indicators

(open rates, Clics,

opt-out...)

Opt’in management

Studies, customer

profiles,

segmentation

Reporting

Campaign management,

counting tools, extraction,

targeting, personalization

Mail

routing

Email

routing

Campaigns

reporting

EXTRANET Available on-line

Data enriching:

geomarketing, studies…

SMS

routing

The center of data treatment

FTP (automated)

Page 36: How do data collection and management influence your efficiency and profit?

36 Solution INBOX 14/10/09

ANALYSIS OF THE PROFITABILITY PER SEGMENT

Page 37: How do data collection and management influence your efficiency and profit?

37 Solution INBOX

An investment adapted to each segment contribution

As an average, the cost of activation per client reached 44 cent ( but 70 cents per client active for less than 2 years)

Campaigns targeting is based on each segment

Enabling a priority investment onto the most prospective segments without forgetting the other ones

Cost of customer activation by segment

1.59 €

1.32 €

1.03 €

0.22 €

1.37 €

0.67 €

0.30 €

0.18 €

0.03 €

1.41 €

0_TBC

1_BC

2_CT

3_CO

5_NTBC

6_NBC

7_NCT

8_NCO

4_CI

9_NS

Page 38: How do data collection and management influence your efficiency and profit?

38 Solution INBOX

Main lever/trigger: To activate a maximum of buyers over a season

Is active a client with at least one purchase over the season

Global active rate grew from 17% to 20%

Among active clients for less than 2 years, the active rate grew from 25% to 29%

Active rate varies from segment to segment but segmentation (RFM) being predictive allows anticipation

Active rate*

Note : Zone blanche population is a benchmark group – no sollicitation over the season

62%

45%

37%

18%

52%

29%

20%

14%

5%

30%

56%

40%

31%

17%

43%

25%

18%

13%

5%

24%

0_TBC

1_BC

2_CT

3_CO

5_NTBC

6_NBC

7_NCT

8_NCO

4_CI

9_NS

Population Hors Zone Blanche Population Zone Blanche

Page 39: How do data collection and management influence your efficiency and profit?

39 Solution INBOX

Secondary lever/trigger: To increase the average number of purchases per active client

Number of purchase per client grew from 1,7 to 1,8

Number of purchase per client varies from segment to segment, but shows the same dynamic across the database over the period

Loyalty program has a stronger impact on very good clients (TBC) and new clients (NS) showing a good performance in the transformation phasis

Number of purchases per active client

2.2

1.8

1.7

1.5

2.1

1.7

1.6

1.5

1.4

1.8

2.0

1.7

1.6

1.4

2.0

1.7

1.5

1.4

1.4

1.6

0_TBC

1_BC

2_CT

3_CO

5_NTBC

6_NBC

7_NCT

8_NCO

4_CI

9_NS

Population Hors Zone Blanche Population Zone Blanche

Note : Zone blanche population is a benchmark group – no sollicitation over the season

Page 40: How do data collection and management influence your efficiency and profit?

40 Solution INBOX

Additional lever/trigger: To increase the average basket

Average basket grew from 70€ to 72€

Loyalty program is bringing an increase in the average basket across most of the segments but very good clients (TNC, NTBC) and occasional buyers (CO, NCO)

Average basket*

75 €

73 €

75 €

69 €

77 €

68 €

70 €

69 €

73 €

73 €

71 €

73 €

76 €

67 €

73 €

67 €

70 €

62 €

69 €

73 €

0_TBC

1_BC

2_CT

3_CO

5_NTBC

6_NBC

7_NCT

8_NCO

4_CI

9_NS

Population Hors Zone Blanche Population Zone Blanche

Note : Zone blanche population is a benchmark group – no sollicitation over the season

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41 Solution INBOX

Loyalty program is bringing up to 10 € additional contribution per client

Yearly average additional contribution*

* Additional contribution : Additional turnover * Margin rate – Additional costs

As an average, the loyalty program is generating addition contribution of 1.75 € per client (2.73 € per active client for less than 2 years)

All segments are contributing to profitability including share of inactive

The very good clients (TBC & NTBC) are very well impacting

8.15 €

2.94 €

2.68 €

1.12 €

9.13 €

2.26 €

1.30 €

1.56 €

0.17 €

2.90 €

0_TBC

1_BC

2_CT

3_CO

5_NTBC

6_NBC

7_NCT

8_NCO

4_CI

9_NS

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42 Solution INBOX

Make the C.R profitable

A MUST

Before, to develop the loyalty meant: • Heavy investments without necessarily R.O.I measurement

• Choice in IT solutions without prior definition of the strategy

Nowadays, one signe will : MAKE PROFITABLE, meaning: • To develop the turnover and reduce the churn

• To drop the commercial costs and optimize the processes

To achieve so, you need to :

Know, Act and Measure

Page 43: How do data collection and management influence your efficiency and profit?

43 Solution INBOX

Profitability of loyalty program

Over the last 2 years, the loyalty program is showing a constant improvement in the additional net revenues, while being profitable from the first year :

2010/2011 2011/2012 2012/2013 2013/2014

Overall turnover 11 602 309 € 10 558 101 € 13 831 113 € 17 842 135 €

Nb cardholders 15 000 30 000 43 000 56 000

Nb of cardholders visits/year 4,26

4,55 (+7%)

4,60 (+8%)

4,64 (+9%)

Average basket 71€

74,5 € (+5%)

78,1 € (+5%)

82,9 € (+6%)

Cardholders additional revenues 0€ 709 278 € 1 191 970 € 1 782 825 €

Additional gross margin cardholders

(50% of the additional turnover) 354 639 € 595 985 € 891 412 €

Additional costs to execute the program - 121 248 € - 213 176 € - 307 267 €

Investment / depreciation [-93 500 €] -31 167 € - 31 167 € - 31 167 €

TOTAL COSTS - 152 415 € - 244 343 € - 338 434 €

Net additional contribution from program 202 224 € 351 642 € 552 979 €

Page 44: How do data collection and management influence your efficiency and profit?

44 Solution INBOX

The efficiency at hand

Where Share of profit

Who Share of Mind

How Share of Heart

Greatest

effectiveness

The more I buy, the more I get!

They take care of me!

They know what I need!

Page 45: How do data collection and management influence your efficiency and profit?

45 Solution INBOX 14/10/09

Thank you for your

attention

I’m pleased to answer your questions

Page 46: How do data collection and management influence your efficiency and profit?

46 Solution INBOX 14/10/09

Your contact person:

INBOX RUSSIA

Mr Vincent Lootens

Executive Director

INBOX Russie

Entuziastov Schosse, 56

111123 Moscou

Тel.: +7 495 672 23 49

Fax: +7 495 786 99 22

Cell :+7 985 763 23 91

[email protected]

Your contact person:

INBOX Group

Mr Stéphane Amarsy

CEO

INBOX

30 rue Vincent Moris

Тel.: +33155480278

[email protected]