Brooks Brothers - CRM and Field Support

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FIELD INTRODUCTION

CRM – CUSTOMER RELATIONSHIP MANAGEMENT

Charles de GruchyHead of customer marketing

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DISCUSSION

• Objectives for the CRM session

• Privacy

• What is CRM?

• Your questions

• Other things we are working on

• Welcome program

• Capture technology

• Insights into your business

• One great idea

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TODAY --

Objectives for the CRM session are:

1.to help you understand some CRM basics, and

2.to show you how this knowledge will be of value in building your business.

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TODAY --

Specifically --

• Walk through some of the questions I’ve heard asked about BROOKS BROTHERS CRM standards,

• Review a capture program in development,

• Present a technology to support relationship building and capture, and finally

• Give you some insights into your store and your customers.

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YOUR QUESTIONS

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YOUR QUESTIONS

A number of questions about BROOKS BROTHERS CRM standards, the customer database, and how we contact our customers have come up. Here are a few --

1. BROOKS BROTHERS US customer database – 2,700,000, 0 – 12 month customers 4,600,000, 13+ month customers

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2. Mailing and emailing 0 – 12 month customers are mailed a catalog three

times per year – Spring, Fall and Holiday. 13+ month customers are mailed selectively 1M customers are emailed weekly The WELCOME email timing has been changed from

immediate to 4-weeks from purchase.

YOUR QUESTIONS

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YOUR QUESTIONS

3. Foreign Tourists

We can capture foreign tourist address information and save the record.

We just may not know how.

4. Why capture foreign tourist information –

BROOKS BROTHERS is a global company

Without accurate capture we can’t increase customer value

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YOUR QUESTIONS

5. Contact information My customers don’t want to give me their contact

information. My customers are different.

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OTHER THINGS WE ARE WORKING ON

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OTHER THINGS WE ARE WORKING ON

• Retail corporate gift collateral support

• Gift card promotion in the Fall/Holiday catalog

• Gift card personalization/customization

• Customer database and analytics system

• Retail THANKYOU emails

• Social media engagement measurement

• Face book impact on business metrics

• 1x (hit and run) Customer clientelling program

• Low frequency – how to maintain the ‘experience’ after the sale

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PRIVACY

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PRIVACY

BROOKS BROTHERS is completing a global initiative to update our privacy standards.

WHY?

Because respect for and acknowledgement of our customer’s privacy needs correlates directly with our ability to build long term customer relationships.

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PRIVACY

Privacy policy US ex CA, key policy points –

1.COLLECTION -- The personal information that we collect from you and store or that is submitted by you when you transact business with us

2.SHARING -- We may share personal information that you provide to us with our affiliates and service providers

3.ACCESS -- You can access, correct and update certain personal information by contacting our Customer Service Department at [email protected].

4.OPTING OUT -- You may change your opt-out or opt-in preference at anytime by contacting our Customer Service Department at 1.800.274.1815

5.SECURITY -- Various security measures, including encryption technology embedded in our global data systems, are used to protect personal information that we collect

mailto:[email protected]

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PRIVACY

Privacy and consent CA and EU –

6. CONSENT-- BROOKS BROTHERS will request and confirm customer consent to be contacted by signature.

Consent is an increasingly important part of privacy management in both the US and globally. Across the US there are now 32 state initiatives to restrict access and limit capture options for marketers.

Changes in capture laws in California have limited capture to pre or post sale and are designed to ensure PERMISSION is both clear and explicit

In the EU a PERMISSION based privacy standard has been in place for a number of years.

BROOKS BROTHERS’s corporate policy is to stay in advance of the market trend to ensure minimum exposure to legal risk.

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PRIVACY

Privacy policy distribution –

•US retail privacy policy launched

•EU retail privacy in translation

•CA policy guideline ready for distribution

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WHAT IS CRM?

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WHAT IS CRM?

‘Using customer data and business intelligence to build customer value over time’

C = CUSTOMER

R = RELATIONSHIP

M = MANAGEMENT

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WHAT IS CRM?

• How do we describe customer value?

Three metrics are used by most retailers to define customer value:

RECENCY – the time frame in which a customer purchases.

For example, 0 – 3 months from date of purchase, and most recent to least recent.

FREQUENCY – the number of times a customer purchases

For example, 1x, 2x, +3x, and most frequent to least frequent.

MONETARY – the dollar value of a customer’s purchase.

For example, total lifetime purchase value and top 10% to bottom 10%.

LIFETIME

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WHAT IS CRM?

• What does this mean to your business?

Each metric is a measure of the health of your business and each metric predicts how your business will grow.

MORE RECENT PLUS MORE FREQUENT

=

HIGHER VALUE

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HOW DO I MAKE THIS HAPPEN?

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CAPTURE CLIENTELING CAPTURE CLIENTELING CAPTURE CLIENTELING











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CAPTURE IS KEY

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CAPTURE IS KEY?

IN OTHER WORDS –

WITHOUT CAPTURE MARKETING CANNOT:

• Motivate customers to be more recent, or

• Give customers reasons to be more frequent, or

• Influence their overall value upwards

AND RETAIL CANNOT

• Benefit from incremental traffic, or

• Influence customer behavior on the floor.

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CAPTURE IS KEY?

CAPTURED CUSTOMERS SPEND MORE THAN NON CAPTURED!

The average sale of a captured US customer is about 24% higher than that of a non captured customer and 22% higher in the EU

WHY?

Because these are the customers we mail and email, telephone and text, invite to events and preview product with. These are the

customers we “touch” frequently.

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CAPTURE IS KEY?

NOT JUST ANY CAPTURE WILL DO

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CAPTURE STANDARDS –

Year to April we processed +1.5M transactions and CAPTURED 700K (48%).

That doesn’t mean that 48% of those captures are MAILABLE.

CAPTURE IS KEY

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WHAT’S A PERFECT CAPTURE? The simple answer is that a perfect capture is an accurate capture!

– Complete first and last name– Land address with the address number– Correctly spelled street name– Correctly spelled city name– Complete ZIP or postal code– Home address for consumers (no hotels please)– Complete email address

CAPTURE IS KEY

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NEW WELCOME PROGRAM,

TECHNOLOGY, AND SUPPORT

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WELCOME PROGRAM, TECHNOLOGY AND SUPPORT?

1. We have developed three important new customer retention and sales support tools:

• A WELCOME program designed to support the capture process,

• A leading TECHNOLOGY solution that makes capture simple and effective and transparent, and

• New INSIGHTS into your customer RECENCY, and FREQUENCY

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WELCOME PROGRAM

WELCOME/ANTIATTRITION DECISION TREE

AccountOpen

WelcomePackage

PlasticsCreated

2-days PlasticsInhome

3-days Pre month

end

PlasticsMailed 7-days

1 2

3

Usage offer

31days

PURCHASE

NO PURCHASE

Brooks total mail stream

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ACTIVATION – TOUCH 1

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ACTIVATION – TOUCH 2

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ACTIVATION –TOUCH 3

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ACTIVATION –TOUCH 4

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CLOSING AND UPSELLING

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2. SCRIPT SUPPORT

Laura is developing into a much broader clientelling project that will include the consultative approaches to best support the capture effort.

Results of her work with be in training Q1, 2012

In addition, for the CA market we have developed a capture guideline that navigates through the capture restrictions in that market.

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POS ENHANCEMENT

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3. POINT OF SALE ENHANCEMENT

FOR CALIFORNIA --

• A non-transaction based capture screen in SAP is in development.

This screen will be used either prior to or post sale consistent with legal restrictions in the CA market to capture customer contact information in coordination with the CAPTURE CARD.

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CUSTOMER RECOGNITION AND

RESALE

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4. CUSTOMER RECOGNITION

THANK YOU POST EXPERIENCE PROGRAM --

•A thank you email to retail buyers is in development that will be pushed to retail only buyers thanking them for their contact information and offering them 10% off their next purchase.

•Site experience personalization will be implemented for Q4

•Integrated Display media will deliver post experience messaging at key post decision points

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HOW DO REWARDS WORK?

• BROOKS BROTHERS provides experience and “value” benefits designed to recognize and reward the two buyer behaviors we’ve already discussed:

– RECENCY – more recent

– FREQUENCY – more frequent

WHY IS THIS IMPORTANT?

Because the recognition and reward of these customer behaviors creates habits of behavior in our customers

that are good for sales!

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SIMPLY – through CRM programs like PASSPORT we motivate more of the customer behaviors that we know lift sales and increase

customer value measured in:

• RECENCY

• FREQUENCY

• MONETARY

MANAGING CUSTOMER BEHAVIOR!

SALES

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• REWARDS for both tender and non tender customers will continue to be developed over the next several years. New customer benefit to launch is:

BIRTHDAY RECOGNITION

• TIMING -- Test Q1– Rollout Q2, 2012

REWARDS PROGRAM

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• COLLATERAL DISTRIBUTION --

Initial inventory will be distributed from NJ

Replenishment through Vidalia

Target launch – Fall ’11

-- EXPECTATIONS MANAGEMENT --

Launch is contingent on:

• Email

• SAP

CAPTURE PROGRAM DISTRIBUTION

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CAPTURE TECHNOLOGY

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CAPTURE TECHNOLOGY

eReceipts

“WOULD YOU PREFER AN EMAIL RECEIPT PAPER RECEIPT OR BOTH?”

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CAPTURE TECHNOLOGY

e RECEIPTS AND CAPTURE --

eReceipts create two important reasons to justify capture to your clients:

•It’s a record of sale that gives access to warranty benefits, and

•It’s a convenience that saves time.

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CAPTURE TECHNOLOGY

eReceipts

RECEIPT # AND ASSOCIATE ID

PROMOTION INFORMATION AND LIVE LINK

SOCIAL MEDIA LINKS – LIKES!!

PRIVACY POLICY

RETURNS POLICY

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CAPTURE TECHNOLOGY

CURRENT STATUS --

1.Laura, Richard and I are meeting August 8th for draft scripting

2.Joe Brino will develop the BPP mid August

3.Trial in Short Hills and GSP mid to end of August

4. Launch meeting US and EU marketing and retail mid September

5.Rollout end September US and EU

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KEY BEHAVIOR CHANGES

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KEY BEHAVIOR CHANGES

• WHAT DO WE WANT YOU TO DO DIFFERENTLY

•FIRST – Show your customers that we respect their privacy –

INCLUDE THE PRIVACY POLICY IN YOUR CAPTURE CONVERSATION.

•SECOND – Demonstrate that BROOKS BROTHERS is working to improve the shopping experience –

SHARE THE BENEFITS OF eRECEIPTS.

•THIRD – Think about influencing your customers RECENCY and FREQUENCY --

INCLUDE WELCOME BENEFITS AS PART OF YOUR RELATIONSHIP BUILDING DIALOG.

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INSIGHTS

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INSIGHTS

• We have developed two new store reports based on:

1. CAPTURE, and

2. REPEAT PURCHASE

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INSIGHTS1. Name Capture

• If we capture a customer and touch them 4x in the first six months after sale they are 60% more likely to convert to a second sale.

• What is the difference between your captured rate and your mailable rate?

RETAIL CAPTURE REPORTReport date: 07/13/11Period: APRILClassification: DOMESTICDistrict: Northeast District 1Area:Store #: 2Store Name: Short Hills

DNC PHONETRANSACTIONS CAPTURED MAILABLE CAPTURED MAILABLE

MONTH 529 7 338 297 117 241 1% 64% 56% 22% 0% 46%

YTD 1,952 12 1,214 1,063 452 854 1% 62% 54% 23% 0% 44%

MONTH 37,299 138 14,300 11,631 6,883 9,731 0% 38% 31% 18% 0% 26%

YTD 130,851 406 51,877 42,590 25,054 35,042 0% 40% 33% 19% 0% 27%

DOMESTIC

STORE

ADDRESS EMAIL

MAILABLE to CAPTURED

RATIO

TAKES THE PLACE OF THE DASHBOARD

COMPARED TO TOTAL

DOMESTIC

64% vs. 56%

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INSIGHTS 1. Name Capture

RETAIL CAPTURE REPORTReport date: 07/13/11Period: APRILClassification: DOMESTICDistrict: Boston AreaArea:Store #: 55Store Name: Copley Place


MONTH 427 3 148 118 34 88 1% 35% 28% 8% 0% 21%

YTD 1,565 3 589 440 117 286 0% 38% 28% 7% 0% 18%

MONTH 37,299 138 14,300 11,631 6,883 9,731 0% 38% 31% 18% 0% 26%

YTD 130,851 406 51,877 42,590 25,054 35,042 0% 40% 33% 19% 0% 27%

DOMESTIC

STORE

ADDRESS EMAIL

35% vs. 28%

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INSIGHTS1. Name Capture

RETAIL CAPTURE REPORTReport date: 07/13/11Period: APRILClassification: DOMESTICDistrict: Southeast District 2Area:Store #: 76Store Name: Dadeland


MONTH 439 3 98 79 42 73 1% 22% 18% 10% 0% 17%

YTD 1,609 7 394 315 200 257 0% 24% 20% 12% 0% 16%

MONTH 37,299 138 14,300 11,631 6,883 9,731 0% 38% 31% 18% 0% 26%

YTD 130,851 406 51,877 42,590 25,054 35,042 0% 40% 33% 19% 0% 27%

DOMESTIC

STORE

ADDRESS EMAIL

22% vs. 18%

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INSIGHTS2. Repeat Purchase

• If we convert 4 - 6% of 1X customers to second sale in a BROOKS BROTHERS owned store this will deliver approx. +$30.0m to $45.0m per store annually.

• Approx. 10% of our prior years customers shop again in the current year.

• How consistent is our relationship building from store to store and from district to district?

District: Europe North Store Number: 3002Store Name: Hamburg

Lifetime Dollars Counts % TOTAL


NEW $ 9,777 23 21.1% $8,439 27 32.5%1X (excluding new buyers ) $ 44,384 72 66.1% $16,724 39 47.0%2X $ 9,401 10 9.2% $9,895 11 13.3%3X + $ 3,257 4 3.7% $6,705 6 7.2%TOTAL $ 66,820 109 $41,763 83

DISTRICTNEW $29,728 93 48.9% $12,666 39 39.4%1X (excluding new buyers ) $46,274 79 41.6% $19,247 43 43.4%2X $11,115 14 7.4% $9,895 11 11.1%3X + $3,257 4 2.1% $6,705 6 6.1%TOTAL $90,374 190 $48,513 99

TUMI - FREQUENCY REPORT

YEAR TO DATE2011 2010

MONTH: 04/30/11RUN DATE : 07/14/11

ABOVE DISTRICT BUT

BELOW GLOBAL

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District: MidAtlantic AreaStore Number: 52Store Name: Georgetown



STORENEW $ 52,523 133 50.8% $43,871 126 41.0%1X (excluding new buyers ) $ 59,405 86 32.8% $113,847 150 48.9%2X $ 37,882 35 13.4% $34,152 23 7.5%3X + $ 24,098 8 3.1% $29,194 8 2.6%TOTAL $ 173,908 262 $221,064 307

DISTRICTNEW $259,469 818 44.9% $342,892 965 43.0%1X (excluding new buyers ) $592,795 721 39.6% $650,721 868 38.7%2X $265,480 209 11.5% $325,052 280 12.5%3X + $123,914 73 4.0% $333,133 132 5.9%TOTAL $1,241,657 1,821 $1,651,798 2,245



MONTH: 04/30/11RUN DATE : 07/14/11

THIS IS THE NUMBER WE

WANT TO INFLUENCE

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District: Texas Area Store Number: 63Store Name: Domain



NEW $ 44,795 128 39.9% $61,627 187 42.4%1X (excluding new buyers ) $ 100,938 132 41.1% $98,041 157 35.6%2X $ 35,635 49 15.3% $89,159 71 16.1%3X + $ 24,534 12 3.7% $57,995 26 5.9%TOTAL $ 205,902 321 $306,821 441

DISTRICTNEW $405,179 1,088 44.6% $496,340 1,180 43.4%1X (excluding new buyers ) $899,210 980 40.1% $921,698 990 36.4%2X $288,024 282 11.6% $531,659 386 14.2%3X + $154,013 91 3.7% $362,601 162 6.0%TOTAL $1,746,427 2,441 $2,312,297 2,718



MONTH: 04/30/11RUN DATE : 07/14/11

IF SOME STORES ARE DELIVER ING

HIGHER COUNTS --

WHAT IS THE PATTERN OF

SUCCESS BEHIND THEM?

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INSIGHTS

CURRENT STATUS --

1.The reports you’ve seen today will replace the dashboard reporting

2.Reports will be integrated into the dashboard -- TBD

3.Report updates will be quarterly

4. Scheduling is TBD

WHY THE TBDs?

We are migrating our customer database to a new vendor – completion with reporting Jan ‘12

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REPORTS ROUNDTABLE

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• FOCUS ON THE CAPTURE REPORT

• DISCUSSION – • Privacy

• Tools and tactics

• eReceipts

• Consistency

• TASK – • 25 minutes:

– 10 minutes to discuss

– 5 minutes to share

– 5 minutes to present

– 5 minutes to vote

• Each District comes up with one great idea

ONE GREAT IDEA

Brooks Brothers - CRM and Field Support

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Transcript of Brooks Brothers - CRM and Field Support