how do data collection and management influence your efficiency and profit?
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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 InboxTRANSCRIPT
1 Solution INBOX 14/10/09
Customer Relationship Management
Unlock the sleeping potentials
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.
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
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
5 Solution INBOX 14/10/09
WHAT WE DO
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?
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
8 Solution INBOX 14/10/09
Evolutions in the context,…
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
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
11 Solution INBOX 14/10/09
One to One & CRM
A strategic vision
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
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
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
15 Solution INBOX 14/10/09
Beyond the mirror,…
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
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
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
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
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)
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,…
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
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
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
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€ ! »
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)
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
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
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.
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
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
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
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
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 »
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
routing
routing
Campaigns
reporting
EXTRANET Available on-line
Data enriching:
geomarketing, studies…
SMS
routing
The center of data treatment
FTP (automated)
36 Solution INBOX 14/10/09
ANALYSIS OF THE PROFITABILITY PER SEGMENT
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
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
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
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
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
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
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 €
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!
45 Solution INBOX 14/10/09
Thank you for your
attention
I’m pleased to answer your questions
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
Your contact person:
INBOX Group
Mr Stéphane Amarsy
CEO
INBOX
30 rue Vincent Moris
Тel.: +33155480278