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HowtoeffectivelymakeuseofCRMtoenhancecorporatevaluesBobbyHo(ITDirector)ThestorybeginsThestorybeginsThestorybeginsThestorybegins2CRMofWatsons20093•Over13,000,000members(cardsold)by(Feb09-Nov10)•hRevenue-RMB130M+(RMB10/card)-AverageBasketValue(ABV)[Member:RMB91vs.non-Member:RMB50](witheffectfromTargetMemberPromotion)•hCustomerloyalty,repeatpurchase7.5[2.5wksValuescreated…WEST1.5MillionSOUTH3.5MillionEAST3.9MillionNORTH4.1Million•Newpromotionmechanicswhichaddressacombinationof-Rewards-%off-Dollaroff-+Pts-Freegifts-Buyingcond.-GroupofPdts-UptoAmount-UptoQuantity-Leveltiers(Quantity/Amount)•Knowledge/Capabilities–Aplatformoncustomershoppingpatternandbehavior–“Personalized”customeroffers–SMSgateway(10MSMS/day)–Fulldataintegrationfromdatacollectiontoanalysis,Additionalbenefits…–Fulldataintegrationfromdatacollectiontoanalysis,synthesis,allthewaytotransacting–InventedwithADSL+3GwithChinaTelatstorewhichcanhavequalitycomparableto“leasedline”–ExpandableplatformdeployedinotherWatsonssistercompaniesSuccessstoriesSuccessstories6*UpliftunderperformingstoresCRMcan…*Staytunedwithcustomers*NewProduct/MarketDevCustomersWatsonsFinance/BAWatsonsIT8WatsonsNPDWhataretheconstituentsofthesesuccesses?thesesuccesses?9ØLeadership:ØØNewITStrategyNewITStrategy–WheelofValuesØØCustomerDataManagementModelCustomerDataManagementModel–CASTØDedicatedteamwithclearroles&KPIsØClosecollaborationØMarketingØITØTradingThenewrevampconsistsof…WheelofValuesØTradingØOperationsØInnovation:ØØMultiMulti--channelchannelintegration,e.g.SMSGateway[10M+SMS/day]ØØFirstofitskindFirstofitskind:ADSL+3Gtechnologyforreal-timedatasync.ØImprovement:ØØFullyintegratedsystemsFullyintegratedsystems:Trading,PromotionEngine,eDM,SMSGateway,DataAnalyzer,LoyaltyEngine,ReportingserverØFocusesondataflowanddataqualityWheelofValuesValuesBusContCustomerDataManagementModel:CASTCollectTransactCustomerAnalyzeTransactSynthesizeCustomerDataManagementInformationcollectedinclude:MaritalStatus%Married28.5%Single71.5%FamilyIncomepermonth%JobNature%Age%Below182.9%18-2554.2%26-3024.6%31+18.3%CollectCustomerDataManagement13500045.1%5001–600013.7%6001–70006.4%7001–80005.5%8001–90003.5%9001–100006.9%1000118.8%房地产/金融/银行/保险10.3%服装/纺织/皮革6.0%计算机/网络/通信/电子12.4%贸易/消费零售/制造/营运9.1%美容/服务/餐饮娱乐7.0%食品/饮料/化妆品3.2%制药/医疗7.2%综合类/其他44.9%Besidestheabove,wealsocollectotherinformation,suchassales,basketvalues,Itempertransactions,etc.ChannelsofDataCollection•SMSMessages•CustomerServiceCentre•DirectMarketingCollectCustomerDataManagement14•SNS•Email•Websites•OverthecounterRightMessageRightCustomerRightChannelApply&RegisterCard(TouchPoint1,2)Member’sOffer(TouchPoint3)CheckOut(TouchPoint4)•PointsandSavingsCRMProgram–6touchpointswithmemberstogetthingsrightCollectCustomerDataManagement•Cardapplicationatstore•Cardregistrationonline/phone•MembersreceivetheexclusiveoffersmessageviastorePOSM(point-of-salesmaterials)MonitorBehaviorsPointBalanceChecking(TouchPoint5)•Memberscancheckthebalanceonthesalesreceiptandmemberwebsite•Monitormembergroups,analyseresultsandinsightsforfuturepromotionsResult•Upliftcustomerbasketsizeandprofit•IncreasepromotioneffectivenessTargetedMarketingPromotion(TouchPoint6)•OngoingdirectmarketingtotargetedmembersviaSMS,Email,directmailetc,drivingcustomerstostore•PointsandSavingsseenonreceipt•ShoppingbehaviourrecordedSpend$30ormoreonpersonalcareproductsatWatsonsHowdoweaccumulatealldata?Stepsindatacollection1.Extractfromsourcesystems2.Integrate,transform,anddenormalize3.Queryandanalyze4.DataaccessandpublishingCollectCustomerDataManagement16POSRealApplicationClustersAutomaticStorageManagementOntopoftransactionaldata,…Ontopoftransactionaldata,…17DataCleansing…1.Correct2.Accurate3.ConsistentParseNormalizeConsolidateMeasureDataCleansingCollectCustomerDataManagement4.Complete5.Integrated6.WelldefinedNormalizeVerifyandValidateMatchConsolidateCleansingProcessDataWarehousingAnalyzeCustomerDataManagement19BusinessIntelligence•Closethegapbetweenstrategyandexecution•Getabroaderviewofperformancewithdashboardssupportdecisionmaking•Sales/Profitability•CategoryandassortmentmanagementAnalyzeCustomerDataManagement•Categoryandassortmentmanagement•Spaceandproductivitymanagement•Sales/Profitability•Competitiveanalysis•Trafficanalysis•Brandingsensitivity•FraudmanagementWethenabletoperform…•Easydataretrieval•CustomerSegmentation•StoreclusteringAnalyzeCustomerDataManagement21•Campaigntracking/andmeasurements•TargetmemberpromotionSynthesize?•ConcludedInferencesfromAnalysis•RefinedstrategiesandtacticsSynthesizeCustomerDataManagement22Resultsin…Offers/Promotion…TargetedCustomersProduct/Assortment…SynthesizeCustomerDataManagement23Transact:Pushedvs.PulledTransactMassMemberPromotion(MMP)•ForallWatsonsmembers:•MemberDiscount•ExtraPoint/MultiplePointOffer•FreepointswithPurchaseCRMProgramTransact•GiftwithPurchaseTargetedMemberPromotion(TMP)•Thetailor-madeoffersarecommunicatedtothemdirectly(integrated-channelmix):•eDM(withoffercoupon)•SMS(withoffercode)•DirectMailing(withoffercoupon)26