“WINNING  THE  HEARTS  AND  MINDS  OF  OUR  CUSTOMERS”    KRUIDVAT  CROSS  CHANNEL  LOYALTY  PROGRAM  

Lars Crama, Director at 2organize, together with Selligent, omnichannel audience engagement solution, explain the multichannel approach and other key success factors of the loyalty program launched by A.S.Watson, the world's largest health, beauty & lifestyle retailer, for its brand Kruidvat in the Benelux.

While more than ever marketers are eager to engage their customers, few Loyalty cards survive. So how has A.S.Watson been able to activate this card active in more than 25% of all households in the Netherlands? Showing great conversions and results? Just attend this session and you will know!

Lars Crama - 2organize Nick Worth - Selligent

QUESTION:  

“How  many  plasDc  cards  are  in  your  wallet?”  

The  average  person  carries  around  17  plasDc  cards  in  their  wallets  or  purses.    

(including credit and debit cards, store cards, library memberships, driving licenses, national insurance, organ donor and loyalty cards. Source: http://newslite.tv/2012/09/17/we-all-have-bulging-wallets-bu.html)

FACT:  

25%  households  

High  Customer  

Engagement  

High  Revenue  

ContribuDon  

1.   ABOUT  KRUIDVAT  2.   THE  CROSS  CHANNEL  LOYALTY  PROGRAM  3.   FRAMEWORK  FOR  SUCCESS  4.   KEY  TAKEAWAYS  

1.   ABOUT  KRUIDVAT  2.   THE  CROSS  CHANNEL  LOYALTY  PROGRAM  3.   FRAMEWORK  FOR  SUCCESS  4.   KEY  TAKEAWAYS  

PART  OF  A.S.  WATSON  

!   The  world's  largest  health,  beauty  &  lifestyle  retailer  

•  Over  10,000  stores  opera.ng  20  retail  brands  in  33  markets  worldwide  

!   Europe’s  largest  luxury  perfumeries  &  cosmeDcs  retailer  

•  Over  1,600  stores  in  16  markets,  opera.ng  under  mul.ple  retail  brands  

KRUIDVAT  BENELUX  

!  980  Stores    

!  12.000  Employees  

!  Media  expenditure  •  Over  70  Million  Euro  

!  Loyalty  Program  •  Start  2011  in  The  Netherlands  

#1  -­‐  INCREASE  CUSTOMER  LOYALTY  

#2  -­‐  LEARN  FROM  CUSTOMER  INTERACTIONS  

1.   ABOUT  KRUIDVAT  2.   THE  CROSS  CHANNEL  LOYALTY  PROGRAM  3.   FRAMEWORK  FOR  SUCCESS    4.   KEY  TAKE-­‐AWAYS  

KRUIDVAT  LOYALTY  PROGRAM  

WATCH THE VIDEO HERE: http://www.selligent-awards.com/2012/nominee/kruidvat

 TARGET  GROUP  

   

90%  Women  Housewives  

Above  20  Years    

Divided  in  4  Personas  (Lifestyles)  

CUSTOMER  SEGMENTATION  

Mariska  Young  Mother  

Saskia  Starter  

Claire  Older  Mother  

Corrie  Grandmother  

 PRODUCT  

CATEGORIES    

 Divided  in  4  Categories  

   

PRODUCT  CATEGORIES  

Beauty   Health  

Baby   Men  

CROSS-­‐CHANNEL  SEGMENTATION  

Generic  Offers  

Loyalty  Offers  

GENERATING  LOYALTY  OFFERS  

Loyalty  Segments  

+200  sub-­‐segments    

Loyalty    Offers  

Generated  Daily  

Product  Push  by  procurement    and/or  supplier(s)  

Customer  Behaviour  Clicks  -­‐  Buying  

3  

4  

5  

7  

6  

2  

1  

Campaign  Layer  

CROSS-­‐CHANNEL  CAPABILITIES  

eStore  Website  

Stores  

Mobile  App  

eMail   Welcome  email  

Data  Layer  

Loyalty  Program  -­‐  Customer  Life  Cycle  Management  -­‐  Event  Driven  Marke.ng  

Sales  

Sales  

Interac.ons  Transac.ons  Segmenta.ons  

Registra.ons  

Registra.ons   Ac.va.ons  

Ac.va.ons  Offers  Daily/weekly  

AcKvaKon  -­‐  24hrs  Valid  -­‐  1  week  

Offers  Daily/weekly  

Offers  Daily/weekly  

Loyalty  Card  Customers  

Birthday  email  

Baby  Mamma  email  

1  

4  

3  

2  

6  

5  

CROSS-­‐CHANNEL  CAPABILITIES  

Campaign  Layer  

eStore  Website  

Stores  

Mobile  App  

eMail   Welcome  email  

Data  Layer  

Loyalty  Program  -­‐  Customer  Life  Cycle  Management  -­‐  Event  Driven  Marke.ng  

Sales  

Sales  

Interac.ons  Transac.ons  Segmenta.ons  

Registra.ons  

Registra.ons   Ac.va.ons  

Ac.va.ons  Offers  Daily/weekly  

AcKvaKon  -­‐  24hrs  Valid  -­‐  1  week  

Offers  Daily/weekly  

Offers  Daily/weekly  

Loyalty  Card  Customers  

Birthday  email  

Baby  Mamma  email  

Jury  Award   Market

ers  Voice  Award  

1.   ABOUT  KRUIDVAT  2.   THE  CROSS  CHANNEL  LOYALTY  PROGRAM  3.   FRAMEWORK  FOR  SUCCES  4.   KEY  TAKE-­‐AWAYS  

TACTIC  #1:  CUSTOMER  PROFILING  

CUSTOMER  PROFILING  SCORECARD  

Explicit  Profile  

Implicit  Profile  

Response  Profile  

Session  Profile  

Journey  Profile  

Customer  Metadata  

Now

Later

Endstate

1

2

3

4

5

Creative Commons License - Customer Profiling Scorecard by 2organize.com is licensed under a Creative Commons Attribution NonCommercial 3.0 Unported License. Feel free to use it, we welcome all feedback.

Customer  maintained  profile:  name,  address,  email,  seTngs,  favourites,  configura.ons,  preferences,  product  ra.ngs,  reviews,  Q&A,  UGC,  Social  Media  Content  

Supplier  maintained  behavioural  profile:  online  transac.ons,  offline  transac.ons,  product  use,  service  use,  interac.ons,  socio-­‐demographic  data,  psychographic  data  

SDmulus-­‐reponse-­‐data  related  to  func.onali.es  and  campaigns.  Include  contact  history,  interac.on  pressure,  campaign  response,  s.mulus-­‐sensi.vity  

Real-­‐Dme  behavioral  data:  referring  site,  loca.on,    campaign  exposure,  use  of  site  func.onali.es,  customer  intent  

Longitudinal  cross  channel  behavioural  data:  mul.  stage  decision  process  iden.fica.on,  microconversions,  engagement    

AnalyDcs  generated  customer  data:  recency/frequency/value  profile,  LTV-­‐profile,  segmenta.on,  engagement  scoring,  aTtudinal  scoring,  sen.ment  scoring  

(example Scorecard, NOT Kruidvat)

TACTIC  #2:  ROADMAP  WITH  QUICK  WINS  

DIGITAL  &  CRM  STRATEGY  ROADMAP  2012   2013   2014  

Phase  1   Phase  2   Phase  3   Phase  4   Phase  5  

Vision  &  Strategy   Basics  Quick  Wins   Customer  Value   Life  Time  Value   Customer  Journey  

Customer  Contact  Strategy  

Program   Prospect  Welcome  

Order  Follow  Up  Churn  /  Reten.on  

EDM:  abandoned  cart  EDM:  customer  journey   Win  back    

EDM:  behavioral  events  

Campaigns   Bulk  communica.on  Simple  segmenta.on  

Segmenta.on  Mul.  channel   Personalized   Real  .me  Interac.ve  

Insights  Reports   Hi-­‐prio    KPI’s   All  KPI’s   Dashboards   Balanced  Scorecard  

Analysis   RFM  Basic  Segmenta.on   Advanced  Segmenta.on  

LTV  Behavioral  segmenta.on    

Value  drivers  Loyalty  drivers  

Share  of  Wallet  Life  style  segmenta.on  Engagement  scoring  

ROMI  analysis  

MarkeDng  Performance  Improvement  

Monitor  basic  KPI’s  Set  up  test-­‐  and  control  groups  

Simple  A/B  tes.ng  

Advanced  A/B    tes.ng  Mul.variate  tes.ng  campaigns  

Advanced  A/B    tes.ng  programs  

Mul.variate  tes.ng  programs  ROMI  op.miza.on  

Customer  Data  IntegraDon  Registra.ons  Transac.ons  

Customer  Profiles  Contact  history  

Demandware  Survey  data  

Campaign  feedback  data  Integrate  business  units  

Web  data  Social  media  data  Compe.tor  data  

External  environment  data  

(example  Roadmap,  NOT  Kruidvat)  

Delivering  business  results  in  each  phase  

TACTIC  #3:  MONTHLY  IMPROVEMENT  CYCLE  

1.  Set  Goals  

2.  Set  KPI’s  

3.  Plan  

4.  Prepare  

5.  Contact  

6.  Follow  up  7.  Monitor  

8.  Op.mize  

9.  Report  

10.  Analyze  

11.  Discuss  

12.  Improve  

+400%  

1.   ABOUT  KRUIDVAT  2.   THE  CROSS  CHANNEL  LOYALTY  PROGRAM  3.   FRAMEWORK  FOR  SUCCESS  4.   KEY  TAKE-­‐AWAYS  

WHAT  WE’VE  LEARNED  

1.   Find  out  what  drives  customer  value  to  determine  your  programs  success  criteria  

2.   Combine  transacDonal  and  behaviourial  data  to  allow  highly  relevant  and  personalized  interacDon  

3.   Enrich  customer  profiles  over  Dme  

4.   Design  a  roadmap  that  combines  vision  with  quick  results  

5.   Incorporate  conDnuous  improvement  cycles  

YOUR  CHALLENGE?  

Good  luck!   Good luck winning your customers’ hearts and minds

Email:  lars.crama@2organize.com  Twiher:  @larscrama  Web:  www.2organize.com  

Visit  Selligent  Booth  #47  

www.selligent.com