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APPROACH TO CRMCRM VISION

CRM Strategy Planning Meeting

February 2008

Prepared by:Barbara Canning Brown

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CHARLES APPROACH TO CRM

ACCOUNTABILITYSuccess MetricsForecast/Bus CaseReporting ResultsOptimization

PROGRAM FRAMEWORKProgram frameworkMessaging ArchitectureAcq / RM / Media PlanContact/RM PlanWeb ExperienceCreative Execution

DATA STRATEGYData CaptureSurvey QuestionsProfilingGolden QuestionsDecisioning/TriggersAnalytics design

INSIGHTS & PLANNINGGoals / RequirementsInsights - Brand/TargetCommunications StrategyConceptual Creative

DATA OPPSBusiness RulesDatabase ArchitectureDB Vendor IntegrationDB Vendor StewardshipCall Center

TECHNOLOGY Siebel, Email Dashboard, Campaign Management, Reporting

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CRM VISION

One To Many One To Select Groups One To One

Opt-InBroad targetingMass advertisingProduct/promotion driven

PersonalizedSegmented targetingCustomized communicationsCategory/product usage driven

CRM - individualizedIndividual targetingPersonalized communicationsand experiencesBehavior/value driven

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PROGRESSIVE DATA STRATEGY

Preference

Data

OfferRecord Content

Newsletter

Opt-In

AccountSet-Up

LastName

ChildOr HH Size

PostalAddress

FirstName

Zip Code

EmailAddress

Opt-In/Opt-Out

Password

Content(Newsletter)

Selection

Trigger Streams, Offers& Pathways

CustomerBehaviors

Customer Segment

Copy/OfferPathways

Segments

Shopping Occasions

ShoppingOccasion

Tools Investment

Customer ROI

Measure

Purchase T ransactio ns

Profile Segmentation & Behavior Value

GROUNDED IN RFM BUT BUILT THROUGH LIFECYCLE

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AND ENHANCED THROUGH DEMOGRAPHICS

Brenda &Brendan

Isabelle& Ian

Brand Inspirationals Intelligent Buyers

“Save me so much money I won’t be able to stay away”

“Help me trade down and trade

up”

Penny

Price/Value

“Help me make it to my

next paycheck”

Survey 1: Segmentation(Golden questions that will help us identify your segments)1. Freq of shop2. Who shopping for at TRU3. Degree enjoy / dislike shopping TRU4. Indicates what smart means to them5. Categories shopped/not shopped

Survey 2: Shopping Occasion• Series of shopping occasion questions

Survey 3: Segmentation• Re-Qualification

Seasonal Poll• Question feeds relevant editorial and promotion

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BY BUILDING INDIVIDUAL PROFILES

Opt-In & Account Setup

BrendaOpt-in11554 (East Meadow, New York)Chose bi-weekly communications

Account Profile & Preferences

ApparelBabyToysChildren

Site InteractionBehaviors

Online gift registry Online birthday club

Segment

Brand AspirationalShops 43 times a years

Shops for family

Shops BRU and specialty stores

Identified as “helps me trade down and trade up”

Shopped Toys, apparel, but not electronics.

Category DNS Shopped food, apparel, but not electronics

Shopping Occasion

Growing out of clothesSpecial occasionSpecial item missionShops weekends

Customer Value Medium value, high potential.

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BASED IN ECONOMICALLY VIABLE SEGMENTS

Completeprofile

Opt-in

Maintain spending

Keep profile up to date

Increase cross-category spending

Make onetransaction

DEEPERCUSTOMERINFORMATION

INDIVIDUALBEHAVIORCHANGE

Segmentation = Profitable management of individual relationships

?

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AND WHILE PROGRAMS ARE ABOUT FILLING NEEDS

Needs

Price / ValueSave me so much I won’t

be able to stay away.Help me trade down

to trade up.Help me make it from

paycheck to paycheck.

ShoppingHelp me make

smarter choices.Give me smart brand choices.

Give me everyday value and a good shopping experience.

Living Make my lifestyle less wasteful. Make my life richer and easier. Bring my family together.

Brand Aspirational Price/Value ShopperPrice-Sensitive Affluents

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ENGAGEMENT IS REQUIRED TO BUILD LONG TERM VALUE

A dynamic customer grooming program that deepens customer relationships via more targeted and relevant cross-category presentation. The program . . .

Facilitates discovery of new categories and helps them find the brands they like

Optimizes the time they spend shopping online and in-store

Helps transform the personal standards

The result is that shopping at Toys R US makes the brand synonymous with shopping smart and living better.

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AND A FAIR EXCHANGE OF VALUE IS NOT NEGOTIABLE

Toys R US Consumer

Emotional resonance Inspiration

Cross-category shopping Navigation

Engagement Relevant Education & Support

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PROGRAM COMPONENTS

Shop Smarter

Live Better

Category-Focused Featured Brands Product Promotions

Lifestage EventsAdvanced Notice

Of ProductAvailability

Promotion of NewIn-Store AmenitiesE

QU

ITY

PR

OM

OT

ION

TransformLiving Standards

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ILLUSTRATIVE EXAMPLES

Shop Smarter

Live Better

Children’s Fashion WeekBaby Care Classes

Coalition Strategy Expand GBC

On-site Baby Advice

In-store Moving Checklist

Spring Cleaning Day

Memorial Day Tailgate

Preview Nights

Inventory News

Product Launches

Designated Parking

Extended Hours

Complimentary Snacks

EQ

UIT

YP

RO

MO

TIO

N

Trade-Up Program

Charity Donations

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ILLUSTRATIVE TACTICS

Shop Smarter

Live Better

Electronic Shopping GuidesAn evolution of the weekly circular. Modeled on electronic programming guides.Versioned geographically to tell you what’s going on in your store, aisle by aisle.

Richer profile data helps highlight the aisles you enjoy most, as well as smart cross-aisle visits.

eMerchandise CirclesA new twist on group purchasing. Third-party content & user-generated content tools integrated

into online catalogues, surrounding merchandise to connecting consumers and drive purchases.E

QU

ITY

PR

OM

OT

ION

Dynamic Planning & Shopping Tools

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INDIVIDUAL PROFILES

Opt-In & Account Setup

BrendaOpt-in11554 (East Meadow, New York)Chose bi-weekly communications

Account Profile & Preferences

ApparelBabyToysChildren

Site InteractionBehaviors

Online gift registry Online birthday club

Segment

Brand AspirationalShops 43 times a years

Shops for family

Shops BRU and specialty stores

Identified as “helps me trade down and trade up”

Shopped Toys, apparel, but not electronics.

Category DNS Shopped food, apparel, but not electronics

Shopping Occasion

Growing out of clothesSpecial occasionSpecial item missionShops weekends

Customer Value Medium value, high potential.

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Q: If your child is going off to school this fall…please tell us how you’re feeling about it (rank in order of importance)

(a) a bit anxious about doing/getting things right(b) confident and optimistic for my child(c) shopping for BTS is a chore(d) heading BTS is another annual milestone to celebrate (e) anxious about the cost and expense

EXPERIENCE COMMUNICATIONS“Equity” Email (Monthly) “Promotional” Email (Wkly-Bi-Wkly)

THEME: FALL

ElectronicsBack-To-School

Jul/Aug 2008 Oct 2008BI-WEEKLY PROMOBrenda

Shops for family1 Child 11 yrsDNS: ElectronicShops Weekends

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TRANSFERS FROM STREAM TO STREAM% conversion from one stream to the

next

SUCCESS METRICS

Opt-insConversion Rate Opt-outs

% of total registrantsOffer Response, e.g.Coupons printed,

redeemedEmail Response – open, click, unsubscribeNewsletter InteractionsConversion of non-customers to customers –

offer redemption and re-qualificationCross-sell/Upsell response among customersPurchasesRetention Rate - % 12-month active opt-ins

Program Site InteractionsWish List completesRegistry set upsDownloadsSharingetc.

Return Visits# of Log Ins

RECRUITMENT RELATIONSHIP MANAGEMENT

WEBSITE ENGAGEMENT

DISCUSSION