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Reimagining Customer Loyalty

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Presentation on theme: "Reimagining Customer Loyalty"— Presentation transcript:

1 Reimagining Customer Loyalty
29 SEP 2014 Fiona Llewellyn (Director of IT – NBTY Europe)

2 NBTY Europe – Who we are Europe's leading retailer of Vitamins, Minerals and Herbal Supplements Over 80 Years in Health Supplement Industry

3 NBTY Europe – Our world Video of Store (TBD Fiona)

4 NBTY Europe – Loyalty Programs
Holland & Barrett UK – Rewards for Life Holland & Barrett IE – Rewards for Life GNC UK – Train to Gain 4 points earned per £1 4 points earned per €1 15 points earned per £1 Quarterly Reward Coupon issuance: 100 points = £1 / €1 Earn points / Redeem coupons across all channels Enrol / Activate across all channels Bonus point promotions / Exclusive offers for members Marketing offers via , direct mail and SMS

Need for transformation Dec 2012 Reached 6 M Members Sep 2011 RFL Launch in all stores Dec 2011 Reached 1 M Members Increased Member Spend Jan 2012 First Coupon issued Increased Sale Benefits (Redemptions) EVOLVING LOYALTY PROGRAM Scalability of legacy system CHA L L ENGE S Inflexible PoS System hampering Customer Experience at Stores Lack of unified customer view (cards not customers) Inability to offer flexible loyalty promotions Lapsing customers due to inability to capture customer details in store Inability to target offers to specific customer segments

6 The Right Technology Solution The Right Implementation Partner
Transformation enablers The Right Technology Solution Understand your customer Reward, recognize and differentiate Deliver great cross-channel customer experience Measure and gain insights The Right Implementation Partner Enterprise Customer Experience Solutions Oracle Co-Development Partner (Loyalty/Marketing) Customer Insights and Analytics Deep domain and delivery expertise

7 Next Gen CX Technology Oracle Retail POS Oracle ATG / Endeca
Enrollment Transactions Profile Management Oracle ATG / Endeca E-Commerce Enrollment Profile Management Mobile Applications Coupons Activation Profile Management Oracle Service Bus Legacy AS400 Products Stores Customer Data Siebel Loyalty Members Program Promotions Customer Care Oracle Customer Hub Customer Unification Data Cleansing ODI Siebel Marketing Segmentation Campaigns List Management Responsys Marketing FTP Oracle Applications Loyalty Analytics Marketing Analytics Legacy Systems Customer Insights / Advanced Analytics Custom Applications

8 CX Implementation Differentiators
Enhanced engagement through real-time enrolment and activation Real-time points accrual and display to customers on receipt 31 types of ‘Configurable’ loyalty promotions deployed (category, SKU, Tiered, Spend, Time etc.) – To be grown to 45 types Unified customer view through Siebel Loyalty and Oracle Customer Hub Personalized campaigns via customer segmentation

Loyalty Program Evolution Sep 2014 5M Activations T2G Launch Feb 2013 RFL Pilot launch on Oracle Apr 2014 In-store activation Activation increasing by 70% per week May 2014 Deployed on all H&B stores Reached 10M Members EVOLVING LOYALTY PROGRAM Customer Base Impact 40% uplift in card activations Active customers are 75% more profitable 50% of cards issued in the last year 11M cards issued (higher outreach) 2 % net positive migration in customer value Sales Impact 6-8 % Sales uplift due to loyalty promotions Loyalty Penetration – 62% in sales & 53% in transactions 36% increase in Voucher redemption resulting in 10% increase in customer spend BENE F I T S

10 Leveraging Insights – Targeted Marketing
Customer Insights Targeted Promotion Increased Customer Engagement Campaign Evaluation Key Initiatives State of Art Loyalty System Enhanced POS System & Website Unified view of Customer Evaluate customer Behaviour Identify Customer Segments Develop strategy for targeted promotion Enhanced promotion capability Provide customized offers E.G Beauty Swap for Beauty customers Increase Customer Experience Influence Annual spend Enhance Brand Affinity Increase in Coupon Redemption Rates (19%) Increase in Purchase Rate (0.8 more order/ customer) Customer Segmentation Offer on Beauty Products Cherry Pickers Lapsing, Customer Promising Shoppers Only for Beauty Customers

11 CX Implementation Roadmap
We are here Store POS Enhancement & Rollout Loyalty Program Platform (Siebel) Loyalty Enhancements Points Promotions Targeted Vouchers Social/ Affinity Clubs Ring fencing & Customer Journeys Single View of Customer (Oracle Customer Hub) Campaign Management ( ) Customer Service Customer Analytics & Value Management Drive Trading Decisions (Assortment, Space Zoning, Promotion Design etc.) E Commerce Consumer Engagement Application - Mobile Enterprise Business Intelligence Omni-Channel Phase 1 – CX Foundation Blocks Phase 2 – Multi Channel Engagement Phase 3 – CX Value Realization

12 Questions?

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