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

Reimagining Customer Loyalty 29 SEP 2014 Fiona Llewellyn (Director of IT – NBTY Europe). NBTY Europe – Who we are. Europe's leading retailer of Vitamins, Minerals and Herbal Supplements Over 80 Years in Health Supplement Industry. NBTY Europe – Our world. Video of Store (TBD Fiona).

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

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  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 15 points earned per £1 4 points earned per €1 4 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 email, direct mail and SMS

  5. Need for transformation • Jan 2012 • First Coupon issued • Increased Sale Benefits (Redemptions) • Dec 2012 • Reached 6 M Members EVOLVING LOYALTY PROGRAM • Dec 2011 • Reached 1 M Members • Increased Member Spend • Sep 2011 • RFL Launch in all stores CHA L L ENGE S • Scalability of legacy system • 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. Transformation enablers

  7. Next Gen CX Technology Oracle Retail POS 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 Email 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

  9. Loyalty Program Evolution May 2014 • Deployed on all H&B stores • Reached 10M Members Sep 2014 • 5M Activations • T2G Launch EVOLVING LOYALTY PROGRAM Apr 2014 • In-store activation • Activation increasing by 70% per week Feb 2013 RFL Pilot launch on Oracle BENE F I T S 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

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

  11. CX Implementation Roadmap We are here Store POS Enhancement & Rollout Loyalty Program Platform (Siebel) Loyalty Enhancements Targeted Vouchers Points Promotions Social/ Affinity Clubs Ring fencing & Customer Journeys Customer Service Single View of Customer (Oracle Customer Hub) Campaign Management (Email) Drive Trading Decisions (Assortment, Space Zoning, Promotion Design etc.) Customer Analytics & Value Management 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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