40 Customer Engagement Learnings from Leading Brands Handbook

A Handbook on 40 Customer Engagement Learnings
from Leading Brands

What's
Inside
Predicting and Preventing Customer Attrition
Customer Retention Program
In-store Engagement
Rewards Based Loyalty Programs
Points Based Loyalty Programs
Inventory Optimization
Data Collection, Collation and Storage & Enrichment
Social Marketing
Visual Analytics (Heat Maps)
Gift Card Solution
Store Task Flow Management
Campaign Automation
Customer Store Experience
Lifecycle Marketing
Segmentation and Micro-segmentation
Direct Mailer Optimization
Right Offer to Right Customer
Right Time with Right Communication
Right Communication through Right Channel
Campaign Level Analytics
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23

What's
Inside
Customer Level Analytics
Product Level Analytics
Store Analytics
Multi Channel Engagement
Propensity Model
New Joinee Program
Personalized Targeting
Pareto Analysis
Digital Marketing
Cashier Incentive
Instant In-store Engagement
Discount Optimization
Cross Tie Ups
New Store Opening Effect
Catchment Analysis
Store Cannibalization
Product Cannibalization
Product Placements (In-store)
Customer Feedback Management
Customer Complaint Management
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

up
Based on the past history of customer
transactions, lapsation studies are initiated to
understand customer churning
Assessment of lapsed customers and what char-
acteristics are inherent in them
Deployment of statistical predictive modeling
to forecast future behavior and design relevant
offers
A leading distribution company
of food and beverages in the
UK, invested in a customer
attrition prevention and
prediction model to take
corrective action to combat
downtrading.
Exhaustive customer profiling
helped make segmented campaigns
that yielded a 10% hit rate and 52%
responsiveness through focused
promotions
Image sourced from GoogleACING THE CRM EXPERIMENT
Reduce customer downtrading and attrition rates
that throws up insights into customer preferences
Reduce latency among customers
Helps design offers targeted to micro-segments of
customers driving up response rate and customer
resonance with relevant offers
Approach
04
01 Predicting and Preventing
Customer Attrition
Benefits
Result
10% 52%
Segmented
Campaign
Focused
Promotions

up
Assess historical behavior of customers,
purchase patterns and points accumulated
Engage with active customers with offers to
boost average basket size
Initiate aggressive offers to delight and retain
customers on the verge of lapsation
High customer
retention with
Loyalty sales contribution
upped to
of total monthly sales of program deployment
of sales through
repeat purchases
50% < 9 months60%& in
Benetton, one of the best known fashion companies in the
world, deployed retention programs across its 200+ stores
through a cloud and mobile based loyalty solution.
Image sourced from Google ACING THE CRM EXPERIMENT
Personalized targeted campaigns on customer
segments for additional cross-sell or up-sell
Automated communication of member status,
rewards balance, birthday/anniversary offers to
create brand connect
Daily MIS reports around registrations, sales and
other KPIs to track program effectiveness
Approach
05
02 Customer Retention
Program
Benefits
Result

up
Enlist customers into the loyalty program and
send instant activation message to unique
contact number provided
Based on purchase history, engage with
customer real time with instant offers while they
are still in store
Burberry, the iconic luxury brand of
trench coats and tartan plaids
invested in creating a digitally con-
nected enterprise to engage with
every customer globally and create
real-time experiences across devices
that translate the Burberry vision.
Opening of a flagship store
in Michigan Avenue that
demonstrated the brand's
vision to create enriching
experiences.
The company clocked an 18%
increase in Q1 sales in 2013
with record high annual
revenues of 2 Billion.
ACING THE CRM EXPERIMENT
18%
increase
Q1
sales
in in 2013
2 Billion Annual Revenue
Seamless integration of POS with loyalty program
to boost registrations and capture customer data
points
Analytics enabled campaign management engine
helps perk up response and create real time
engaging experiences for customers
Instant In-store engagement solution can help
spike average basket size per customer real time
and generate revenue from loyalty base
Approach
06
03 In-store
Engagement
Benefits
Result
Image sourced from Google

up
Analyze customers lifetime purchases, frequency
and recency of vists and divide them into various
slabs
A coalition of allied brands offer points based on
customer spends
Enables customer to redeem points in any of the
allied brands' stores offering a range of products
to choose from
In 2012, leading sports brand, rolled out a
reward-based social loyalty program that
encouraged members on Facebook to
pursue an active and healthy lifestyle with
set targets in the fitness regime.
Annual revenues hit $24 billion, up 60%
since 2006 and profits jumped by 57%
creating a social buzz that heralds the
brand for innovation and stoking advocacy.
Annual revenue $24 billion
New age loyalty helps easy transition of legacy
loyalty systems to a real time platform
Increase Customer Lifetime Value (CLV) of the
targeted customer base through analytics driven
campaigns and build stronger relationships with
customers to invoke desired behavior
Enhance shopping experience through real time
in-store customer incentives
Approach
07
04 Rewards based
Loyalty Program
Benefits
+60% &
57%+
Revenue
since
2006
ProfitResult

up
Form slabs and tiers based on various factors like
lifetime purchase value, frequency and so on
Rewards customers with offers redeemable only
at the brand-operated stores
A leading international fashion apparel label
was empowered by an array of loyalty
solutions to drive upgrades, revenues and
lower acquisition costs.
33% increase in loyalty program's redemption
rates, over 195% increase in additional
revenues, loyalty acceleration of 28% achieved
through upgrades and limited earn-burn ration
by over 60% resulting in zero-cost acquisitions
through referral programs.
Lower customer churn and build retention while
lowering acquisition costs
Build loyal customer base continually and data
warehouse for analytical insights
Eliminate ineffective non-responsive mass cam-
paigns optimizing marketing costs
Arrive at price points and inventory optimization
based on historical analysis of customer response
and preferences
Approach
08
05 Points based Loyalty
Programs Approach
Benefits
33%
increase
28%
195%
increase
in Loyalty Programs
redemption rates
loyalty upgrades
in additional
revenues
Over
Result

up
Apply planograms or shelf optimization
techniques to firm up visual merchandising based
on high-affinity between products
Placement of merchandise influenced by up-sell
and cross-sell strategies
Fix discount schemes based on sale patterns,
stock levels and affinity between products
A Growing quick-service chain famous for its
mouth watering wraps, mapped its marketing with
menu optimization to analyze customer's dish
preferences and sales per menu item
Streamlined and optimized brand's menu
and attached inventory across its 34 outlets
and deployed customer segmentation and
lifecycle marketing models to maximize
personalization to various customer
clusters
Current inventory optimization and initiate
localization to lower costs and increase sales
per category
Insight driven product combinations to create
enhanced customer experiences and stickiness
Optimize the marketing spend allocation to
product categories
Divesting low yield or slow moving inventory and
deliver right offer for the right products at the
right time
Approach
09
06 Inventory
Optimization
Benefits
Result
Logistics
Lifecycle
Inventory
Analyze
Model
Goods
Flow
Time
Efficient
Marketing
Management
Segmentation
warehousing
Optimize
Optimize
Product
Chain

up
Cloud based POP solution to collate and update
data on customer during each transaction
Initiates standardization of different formats of the
same data item across database
Enrichment of incomplete data points performed
to arrive at crisp and complete customer data
A leading international fashion apparel label
was empowered by an array of loyalty
solutions to drive upgrades, revenues and
lower acquisition costs.
Personalized communications resulted in 9% spike
in repeat customers and overall 15% same Store
Transactions Growth. 24x7 dedicated, cloud based
solution called for minimal IT infrastructure and
resource burden
Data equates to revenues. Investment in data
management helps retailers combat poor capture
of store level customer data
Identify and consolidate pockets of data that
prevents centralized management and analysis
High visibility on insights from data analytics and
track coherent trends
Approach
10
07 Data Collection, Collation
and Storage & Enrichment
Benefits
Result
9%
15%
24X7
spike in repeat
customers
same Store
Transactions
Growth
cloud based
solution

up
Create apps for the brand and capture data
points on customer
Engage with the customer via social channels to
drive engagement and integrate with backend
CRM
A leading shoe brand in India, amped up its social media marketing campaigns
to increase loyalty conversions with a comprehensive social solution.
Clocked 45% coupon downloads
on campaigns activated on
Facebook and 10% redemption
for social coupons
Create one-to-one marketing opportunities
through social channels
Monetize fan base and leverage social media
Accelerate loyalty and repeat purchases
Drive customer interactions and brand awareness
online to garner social advocates
Approach
11
08 Social
Marketing
Benefits
Result
45%
10%
coupon
downloads
on Facebook
redemption
for social
coupons
Clocked

up
An graphical integrated representation of store
and customer level analytics
Visual representation offers a lucid overview
enabling easier interpretation of data points and
insights
Comprehensive analysis of effect of competitor
and customer locations on sales and identify
focus areas
Impact of new store opening and self
cannibalization
Identifying most responsive or profitable customer
cluster in a specific area and execute push
strategies for slow moving products
Potential areas for opening new stores through
catchment analysis
Approach
12
09 Visual Analytics
(Heat Maps)
Benefits
A respected and sought-after retail brands in UK deployed heat-
mapping of online customers to incite them with offers to shop in the
nearest outlet as well as the ecommerce portal.
The brand grossed an incremental sale of 137000 from a
mere 25% of the customer base in less than 12 weeks.
Result
137000
12 weeks
Sale of
in less than

up
Study customer database based on lifetime
spend and frequency and initiate customization
on gift cards issued
Design a timeline engine for each customer
segment to push through relevant campaigns,
update real time and avoid instances of fraud
Create store locator app for customers to
navigate to the nearest store to redeem or make
purchase
Innovative and cost-effective marketing tools to
rope in customers through branded experiences
that offer convenience and delight
Enables designing a straightforward strategy
to connect with customers and their references
through gifting option
Combat gift card fraud concern by safeguarding
proprietary gift card information from miscreants
through real time tracking
Approach
13
10 Gift Card
Solution
Benefits
$3k worth of redemptions and >$6k worth of recharges for an
average of 400 cards issued per store. Over 50 new customers
were acquired with a redemption rate of over 43%
Result
Headquartered in Paris, a high-
end luxury salon and spa
with typically high customer
acquisition costs and leveraged
a unique and flexible Gift Cards
solution to engage with their
premium customers.
$3000 $6000
400 cards 43%
50worth of
redemptions
Average of Acquired with
issued per
store
redemption
rate
worth of
recharges
new
customers
over
>

up
GUESS, one of the world's top apparel retailers, deploys a broad
store and taskforce management solution across its outlets that
enables employees receive business-critical information through
dynamic dashboards to track customer buying patterns on the go.
Result
Through lapsation study, store managers are
provided daily list of customers who are nearing
lapsation
Store managers consequently assigns tasks to
executives to initiate dialogue and engagement
strategies to coax a sale from the targeted
customers
Model store tasks based analytics on expected
business volumes, and schedules
Streamline execution of store wise strategies to
cross-sell or up-sell
Centralized overview of customer summary to
store associates for better interaction and
customer-centric approach
Leverage technology to initiate immediate
feedback or grievance redressal and input
customer data real time.
Approach
14
11 Store Task Flow
Management
Benefits
The sales force has eliminated cumbersome
spreadsheets for PDF based operational snapshots
of business performance and take quick decisions to
boost revenues.
PDF

up
On deployment of analytics, insights are derived
to design optimized campaigns which are fed into
automation modules for deployment to targeted
customer segments
On campaign deployment, performance metrics
and extensive reports are generated that aid post
campaign assessment
Management of customer, store, product and
campaign level intelligence
High quality data visualization and flexible loyalty
management
Build productivity through automated reports and
dashboards through an integrated platform for
campaign analysis
Maximize average basket size per customer and
increase customer retention through offers
Approach
15
12 Campaign
Automation
Benefits
World leaders in designing and manufacturing extreme weather
outdoor gear and shoes deployed analytics and campaign automation
engine to deliver real-time, actionable insights followed by response
driven offers.
13% increase in repeat bills in the first year with a whopping
41% boost in loyalty sales.
Result
Campaign
Automation
Campaign
Optimization
Data
Visualization
Loyalty
Management
Customer
Retention
Customer
Analysis

up
Integrated POS module with updated data on
customer behavior, past transactions and
purchase history offering a snapshot view of
customer's loyalty benefits
Personalize engagement based on this
information and make real time, relevant offers
to drive stickiness
Single view task assignment to sales executives
based on recommendations on customer
summary and past purchase trends
Increased quality of 1:1 interactions with
customers through personalization in-store
Easy and quick customer complaint or feedback
capture mechanism
Right-time communication to generate higher yield
and enhanced customer experiences real time
Automated reminders on customer birthdays or
anniversaries to establish emotional connect
Approach
16
13 Customer Store
Experience
Benefits
Leading preimum beauty brand deployed centralized workflow in
each salon and personalized exclusive in-store customer interactions.
28% stickiness in its premium
services categories and a high
customer retention of 75% repeat
sales from existing customers
Result
28% 75%
stickiness in
its premium
services
categories
repeat sales
from existing
customers

up
With a one year minimum backlog of data points
on customer behavior and purchase patterns,
lifecyle modeling can be deployed
Traces the customer across lifecycle and
identifies opportunities for designing relevant
campaigns and offers to perk up bill value and
loyalty
'Surprise' customers with messages customized
to potential purchases based on past transactions
Relevant meaningful interactions with customers
to create strong brand advocacy
Increase category penetration across different
lifecycles and push slow moving and premium
categories effectively
Approach
17
14 Lifecycle
Marketing
Benefits
Result
A maternity and baby care brand, in order to drive long-standing customer
loyalty and increase bucket size per transaction initiated a lifecycle based
targeted engagement solution to reach out to the right customer at the right
life-stage to generate higher propensity to buy.
Customer Retention Get Referrals Convert Sales
Deliver & Satisfy Upselll Customers
42% 10%6monthsin withlower customer
attrition
additional revenues
from lifecycle based
campaigns

up
Macro-level segmentation derived from broadly
defined parameters such as bill value,
preferences, recency or latency etc.,
Micro-segmentation categorizes customers
into homogenous clusters that show minimal
variations within each cluster conducted through
descriptive statistics and predictive modeling
Differentiating customers into segments and
micro-segments based on strategic KPIs
Derive insights into each micro-clusters revealing
important inputs on designing campaigns
Inventory management backed by analysis on
customer preferences and buying patterns
Personalized campaigns for each customer to
derive monetary and loyalty advantages
Approach
18
15 Segmentation and
Micro-segmentation
Benefits
The global leader in mobile and accessories wanted to take a closer
look at what drove their customers and how to win their mindshare in
the competitive consumer electronics industry. An in-depth clustering
of customers based on multiple parameters was performed to enable
focused targeting.
Result
26% 20%
11months
+ withincrease in
average SKUs
per customer
repeat sales
doubling in
increase in average
purchase value

up
Measure targeted response level at which cost of
campaign can be justified
Post assessment of earlier mailer campaigns and
catchment area study, arrive at the optimal
number of customers or catchment areas to
initiate campaign with to achieve desired
response rate
Helps identify customer responsiveness to
different product segments and motivations to
repeat buy revealing insights on future campaign
designs
Historical study of direct mailer campaigns and
their drop assessment uncovers key metrics on
assessing cost effectiveness when combined with
alternative channels
Heat map study and propensity modeling helps
to ascertain high response customer segments
and locations to yield maximum ROI from mailer
campaigns
Approach Benefits
Pizza Hut, the world's largest pizza retailer, was challenged with dimin-
ishing impact of communications that adversely affected its top-line. The
retailer implemented a comprehensive CRM solution to identify better
communication channels timed to perfection with the right customers, with
messaging to deliver high response rates. It also initiated a direct mailer
optimization solution to assess performance of existing campaigns.
Clocked 13X overall ROI for the campaign period
on existing offers yielding 5% sales growth every
month. Also, profit of $204k generated by
optimizing mailers during a 5 month period.
Result
5% $204K
sales every
month
profit
generated
19
16 Direct Mailer
Optimization

up
Study of Average Bill Value or share of wallet
analysis to understand customer value
Based on customer valuation, degree of
personalization and customization in offers are
ascertained to enhance delight factor and boost
bill value
Strong analytics and insights help churn strategies
to accelerate customer store visits frequency and
average basket size
Data underpins loyalty program success through
real time offers and personalized communications
to the right bracket of segments to promote
revenues and stickiness
Helps combat discounting on high performing
products and beefs up inventory management
Approach
20
17 Right Offer to
Right Customer
Benefits

up
Study purchase pattern during the calendar year
and identify pockets of boost in sales to design
and target offers
Identify the most preferred time of
communication with higher response rate to
maximize offer effectiveness
Perk up performance of existing marketing
campaigns and offers
Reduce discount dependency on offers by
fine-tuning the target to achieve higher response
Customer purchase behavior discovery to pave
way for future offer designs
Map customer-channel propensity and customer
purchase cycle to lower marketing and acquisition
costs
Approach
21
18 Right Time with
Right Communication
Benefits

up
Based on the offer and communication designed,
assessment of past campaign success throws
insights into the channel that yields higher
response rates and lowers cost of campaign
Unearth patterns between response and
communication channels, audience receptiveness
and alter existing offers to generate high
probability of desired selling behavior
Focus tone and timing of messaging through
historical analysis of channel behavior and
generate response at lower costs
Lower cost of marketing and acquisition and
increase campaign success by eliminating mass
marketing messaging
Approach
22
19 Right Communication
through Right Channel
Benefits
Core
Messaging
Social
Media Emails
Website
Content
Mobile
Phone Apps
Direct
Mail
Articles
& blogs
Press
Releases

up
Analyse success of campaigns and customer
responsiveness and the determinants of success
factors in the campaign minus the seasonal
influencers through test and control activity
Variation between test and control groups
monitored to identify the lift percentage and the
resulting incremental revenues
Breakdown customer buying behavior, past
campaign success and customer lifecycle to
design automated personalized campaigns to
deliver better response
Develop ground-breaking engagement campaigns
that can be easily automated, accessed and
managed on cloud enabling accommodation of
high volume campaigns to multiple customer
segments and coupon series
Analytics driven campaigns yield higher hit rates
resulting in positive KPIs and stronger customer
engagement
Approach Benefits
A chain of beauty and lifestyle retail stores, is a one-stop-shop for personal
care needs housing an extensive array of international and domestic brands.
The brand sought an analytics driven CRM solution to categorize inventory,
identify buying trends to map product-customer relationships and push offers.
10.6X ROI achieved through
campaign automation solution
with 27% higher spends per
customer and a 51% spike in
repeat sales per store.
Result
10.6X 27% 51%
ROI achieved
through campaign
automation
higher spends
per customer
spike in repeat
sales per store
23
20 Campaign
Level Analytics

up
Assessment of customer behavior in store and
with respect to product lines to throw insights on
potential offers
Customer behavior, past purchase and
transaction history also enables identification of
optimal channel to initiate campaigns through
and achieve desired behavioral outcome
A single combined overview from disparate
sources on customer behavior across product
categories and stores
Deploy predictive analytics to influence customer
response, lasting relationships and brand affinity
Pitch the right offer to the right customer at the
right time through the right channel
Reap from automation with enhanced productivity
and agility in adapting campaigns and lowering
attrition
Approach
24
21 Customer
Level Analytics
Benefits
Key Business Result Areas
Costs
Reduction
Cross-channel
customer
experience
Sales
Performance
Real-time
performance
Agent
Productivity
MIS
Reporting
Social Media
Response
Supervisor
Effectiveness

up
Monitor sales of product assortment to identify
and categorize SKUs based on revenues
generated
Study product cannibalization, affinity between
products and customer buying patterns as part of
analytics to devise relevant up-sell and cross-sell
campaigns
Enhance product assortment and arrive at
data-driven insights on supply chain based on
customer buying behavior and trends gathered
Make tactical and strategic decision by tracking
new product assortment, optimize promotions
and markdowns, and control instances of
stock-outs
Increase performance and productivity of
merchandise and drive business revenues
through insightful decisions
Approach
25
22 Product
Level Analytics
Benefits
Key Benefits
Monitoring
Sales
Product
Assortment
Optimize
Promotions
Product
Reporting
Merchandise
Productivity
Images sourced from Google

up
Close monitoring of Same Store Transaction
Growth (SSTG) to assess store growth
periodically
Assessment on location-wise performance of
stores and emulation of success stories across
lower-performing stores
Improve transaction value per store and boost
footfalls through enhanced customer service level
leading to higher store profitability
Increase productivity of store real estate through
streamlined operations, effective marketing
initiatives fine-tuned to customer profile, and
adequate staff to customer ratio
Transform the in-store experience for the customer,
thus improving satisfaction and overall loyalty
Approach
26
23 Store
Analytics
Benefits
Effective
Marketing
Store
Productivity
Improve customer
satisfaction
Customer
Loyalty

up
Leverage social media, mobile, email and direct
mailer channels to optimize communication and
design outreach programs to engage with
customers
Necessitates deep understanding of channels
and incumbent technologies to differentiate
engagement campaigns and achieve higher
response rates
Seamless engagement across multiple channels
leveraging existing and emerging technologies
create a positive brand perception in customers
Differentiation through 360 presence strength-
ens recall and customer connect yielding higher
revenues at lower retention costs
Better data capture through several touch points
with deeper insights
Approach
27
24 Multi-channel
Engagement
Benefits
PUMA, one of the leading sport-lifestyle brands deployed a customer
win-back campaign through multi-channel engagement.
A high 4% hit rate from targeted win-back
campaigns
Almost 4K lost customers reactivated per
month - more than 80% higher than bulk
campaigns
30% of total sales from repeat customers
Result

up
Measure the probability of a customer segment
responding to a specific campaign
Insights are derived from assessment of past
campaigns to model propensity or success rate
of future campaigns and gauge minimum
customers to target to achieve desired
response level
Intensify the granularity of segmentation and
relevance of offers through customer
differentiation
Throws up trends and relationships between attri-
butes and variables that affect customer buying
behavior
Pinpoint specific attributes responsible for a
behavioral outcome to deploy predictive analytics
Mass mailing costs are done away with and
focused targeted mailers with high response rates
can be initiated
Approach
28
25 Propensity
Model
Benefits
One of the oldest and well known retailers in Singapore, used propensity
models to repel diminishing scale of returns with increasing number of
campaigns and to identify optimum customer base to target to get desired
degree of response and their preferred model of communication.
Response rate of 93% was attained through 60% customer
base as opposed to 100% thereby reducing marketing costs.
Over 50% additional customers retained through campaigns
with a 3.8% reduction in discount margins.
Result

up
New entrants to the loyalty program are studied
on purchase behavior, past visits and buying
habits to identify recency - frequency - monetary
value of customer
Campaigns initiated to lure customer in store
within 90 days of enrollment to amplify loyalty
towards the brand
Despite lack of transaction history, basket level
campaign designing for new customers
Real time tracking of basket and shopping motiva-
tions of the customer to spawn actionable insights
in store and offer relevant targeted campaigns
Aggressive engagement with new customers to
firm up brand affinity and lower drop rates through
lapsation modeling
Approach
29
26 New Joinee
Program
Benefits
A web-only apparel retailer, Revolve Clothing integrated marketing analytics to
connect with its new customers through emailers as part of its new joinee program.
33% of its one-time buyers were
converted into repeat customers.
Result

up
Instill a tone of personalization in messaging and
design campaigns around past behavior of
customers to increase relevance of
communication
Powerful personalized recommendation tools
propel conversion rates apart from creating
engaging experiences
Personalized campaigns inch closer to 1:1 market-
ing and spawns strong brand loyalists
Dynamic up-sell and cross-sell tactics can be de-
ployed backed by analytics on customer behavior
through targeted campaigns
Approach
30
27 Personalized
Targeting
Benefits
A leading electronics and accessories
brand in South Africa with over 85
outlets realized the need for amplifying
its personalized communication in a
highly volatile, new product launch
driven industry with an aim to retain
loyal base and induce repeat purchases.
Post deployment of exhaustive personalization
campaigns, brand realized 20X ROI with campaign
management solution and a 53% redemption rates
from existing customers.
with campaign
management
solution
redemption rates
from existing
customers
Result
20x
ROI 53%

up
Based on the Pareto rule (80/20) identify top-con-
tributing product categories and customer
segments
Macro-level segmentation initiated post which
recency-frequency-monetary value of customers
are derived and clustering is performed
Reveals significance of individual SKUs and
the annual spends incurred and arrive at critical
decisions of introducing or closing down products
based on performance
Pareto analysis combined with cluster analysis
helps estimate store specific inventory plans
Enhance productivity and service levels through
inventory management to forecast, and address
stock-outs, unfulfilled orders and back orders
immediately
Approach
31
28 Pareto
Analysis
Benefits
A leading apparel brand in India wanted to
discontinue its Toys category due to negligible
sales contribution despite occupying high store
estate area. The brand initiated Pareto analysis to
identify top performing and slow moving product
categories, thus freeing real estate for high
moving products.
Identified that 38% of Toy customers are
High Loyal contributing to 58% of sales
thus freeing up space by closing down
low performing product lines.
Pareto Rule
Result
20% 80%effort
Results

up
Map online presence of customers on social
media, relevant communities and online
transaction patterns of segments
Run campaigns for each digital touch point
namely emailers, remarketing ads, mobile-
optimized in-app advertising with optimized
communication to drive up responses and
engagement
Leverage ubiquitous connectivity in the online
space to connect with users
Ecommerce portals can track microscopically
the behavior of customers on websites, source of
enquiries, pages that yielded higher visibility etc
1:1 personalization made possible with
customized communication to each visitor
Automated and customized emailers to keep
customers hooked to build potential enquiries,
brand awareness and future loyalists
Approach
32
29 Digital
Marketing
Benefits
A leading ecommerce apparel portal, with more than 100K customers
visiting on an average per week, implemented a structured digital strategy
for its business expansion and loyalty enhancement.
Average bill value perked up by 50% with a 12% increase in
repeat customers in just 8 months of program deployment.
Result

up
To push up enrolments in loyalty program
installed in POS, incentives are designed to
motivate cashiers to push through registrations
with the customer
Extensive training on loyalty scheme, redemption
process and data capture provided to beef up
interface with customers
Performance based pay or incentivizing cashiers
for enrollments into loyalty programs help ensure
ownership and active engagement with customers
Data points are critical and cashiers act as the
final interface with customers through which
personal data can be collected and analytics
initiated
Cashiers are hubs for gathering customer
feedback and can uncover important actionable
recommendations that could otherwise go
unreported
Approach
33
30 Cashier
Incentive
Benefits
Raymond, India's largest branded fabric and fashion retailer pumped in
significant resources in ensuring a rules driven campaign and promotions
module to offer the right offer to their 1.7 million customer base.
Total registrations reached 1.6 million in 3 years from 250K
with a 115% increase in a premium circle membership.
Result

up
Analysis of historical data on customer's
transaction statements and purchase trends
reveals insights on potential relevant campaigns
that would generate high response
Real time rendering of vouchers and campaigns
while customer is in store to capitalize on impulse
purchase and initiate up-sell or cross-sell
Mobile voucher redemption estimated to be
around at 10 billion this year presenting a huge
business opportunity for retailers
Real time vouchering models enable personalized
targeted offers that guarantee a high response
rate and potential conversions while customer is
in store
Dynamic vouchering system presents itself as a
medium to engage with customers with relevant
campaigns that also build brand affinity apart from
significant cross-sell and up-sell schemes
Approach
34
31 Instant In-store
Engagement
Benefits
One of China's influential accessories brand deployed a CRM solution to
data warehouse, initiate targeted campaigns and build purchase frequency
of loyal customer base with instant engagement.
1.85% hit rate for campaigns from earlier 0.94%
registering a 43X ROI from the engagement program.
Result
Campaign hit rate
0.94%
1.85%

up
Measure affinity between products to arrive at
optimal discounts without eating into revenues
Analyze customer response towards past
discount schemes to calculate propensity and
optimize discount schemes
Lower discount dependency by zeroing in on
customer buying patterns to reveal insights on
designing promotions that would yield higher
responses and lower revenue declines during
pre-sale months
Optimal pricing and promotion of products to
sustain and increase profitability without lowering
margins or offering discounts through mass offers
Plan for inventory based on demand forecasting
to assess sales volumes for promotional and
non-promotional periods through analytics
Approach
35
32 Discount
Optimization
Benefits
Peter England, one of the largest menswear brands in India, wanted
to break free from the dependence on end of season sales (EOSS) and
deployed a customer engagement program to drive up business during
lean and pre-sale months.
Sales increased by 1.5% after optimization during
pre and post EOSS period as compared to the
15% and 21% decline in prior two years.
Result

up
Analysis of transaction history and purchase
behavior of customers revels insights into po-
tential alliances that maybe forged with relevant
brands
Associations are formed to offer a stronger value
proposition to customers through tangible bene-
fits and amplify loyalty
Effective cross promotions backed by analytics of
customer buying patterns lowers cost of
promotions and increases top-line
Successful promotions tie in larger customer base
lowering acquisition costs by funneling them from
popular to premium brands
Relevant offers helps increase retention and
stickiness and inventory management
Approach
36
33 Cross
Tie Ups
Benefits
A leading Indian restaurant chain with
over a 100 outlets worldwide,
employed a full scale cross brand
promotion campaign to lower
acquisition costs, reduce customer
drop outs and create enhanced
experiences.
Over 34% increase in customers shopping with multiple brands through
cross tie ups and a 60% jump in average monthly customers retained in
15 months through personalized promotions.
Result
increase in
customers
shopping
jump in average
monthly
customers
34% 60%

up
Measure changes in customer acquisitions and
footfalls as a result of new store opening
Initiate catchment area analysis and trace
migration of customers to the new store
Prevents potential store cannibalization by
unplanned openings that can hurt revenues of
existing and new outlet
Catchment analysis of stores and targeted
customers can set performance targets and future
growth strategies
Helps create distinction in inventory maintenance
and targeted customer profile based on place-
ment of customers, their tastes and expectations
Approach
37
34 New Store
Opening Effect
Benefits
Dunkin Donuts relocated their store to less than 100 yards and
added a drive through.
Sales soared up by over 50% as drive-throughs
attract more on-the-go coffee drinkers
Result
Sales soared
up by drive-
throughs
50%

up
Identify customer pockets based on place of
residence through pin code
Roll out campaigns targeted to a perimeter
around the store through catchment analysis
Throws up insights on how consumer behavior
impacts revenues and costs and devise business
models to meet consumer requirements
Assessment of customer demands helps
benchmark on setting targets for store-wise
performance, defining merchandise mix and
determining store layout
Competitor analysis to identify potential open
points or market gaps in catering to customers
Approach
38
35 Catchment
Analysis
Benefits
Retail giants McDonalds and Burger King deploy comprehensive
catchment analysis based on socio-economic factors,
demographic and economic profile, lifestyle, benefits sought and
other intrinsic factors to determine the location and format of
their existing and new stores.

up
Evaluate impact of new store opening on the
revenue of existing store within a geographical
perimeter
Through evaluation, map migration of customers
between stores and arrive at ideal proximity
between stores that minimizes revenue loss
Helps identify stores that yield lowest marginal
benefit, choose optimum location for opening new
store and maintain optimum sales: investment
ratio
Mapping impact on top line due to store-level
variables on overall sales
Assessment of store competition and strategize
on inventory of products based on buyer prefer-
ences and catchment area analysis
Approach
39
36 Store
Cannibalization
Benefits
Starbucks, the global coffee chain brand, in the years 2007-2008
shutdown several outlets due to non performance and operating costs.
Today the coffee chain employs data-driven location choices that meet the
benchmarked sales: investment ratio of 2:1, with a combination of drive-throughs
and smaller stores to exceed hurdle rates and generate high revenues.
Result

up
Evaluate the impact of new product types on the
checkout of existing product types
Initiate strategies to lower revenue loss due to
new SKU introduction
Comprehensive understanding of dynamics of
brand preferences and buyer purchase patterns of
product categories
Uncover strategies for introducing new product
line, modifying existing supply chain for higher
revenues and identify scope for differentiation
between products
Identify opportunities to divest nonperforming
products, cross-sell and up-sell campaigns that
will yield higher contribution to top line
Design personalized offers on products to perk up
responses and drive repeat purchases
Approach
40
37 Product
Cannibalization
Benefits
Apple faced serious reviews from analysts when launching the iPad on
how it would cannibalize performance of existing Apple PCs.
Result
sold with over
million
iPads
15 $10
billionin revenues

up
Built on extensive research into customer
preferences and purchase trends, visual
merchandising is initiated to drive up sales
through convenience and easy access
Seamless connectivity between product
categories placement in store is ensured
Science of product placement addresses need
for convenience, executes cross-sell/up-sell
strategies and helps boost revenues
Enhance visual appeal of store while managing
inventory and prevent 'stock outs'
Intensify utility of very square foot of retail space
to multiply selling potential
Approach
41
38 Product Placements
(In-store)
Benefits
Safeway, a leading UK retailer, initiated a family shopper based
strategy for product placement in stores with the core objective of
offering convenience.
Safeway increased the average sales per square foot by over 15% in less
than 2 years with a reduction in operating costs by 60 million within a year.
Result

up
Capture customer feedback on a generic store
experience or specific campaign initiated
Conditional on degree and extent of feedback
instances, process and operational enhancements
may be initiated
Effective feedback and management system helps
create a relationship with the customer and ushers
a sense of proactiveness around the brand
Uncovers critical changes to service, products
and operational set-up that could spawn loyalty
and secure repeat business
Prevents a closed loop feedback system that
dilutes potentially grave negative feedback which
may spiral out of control if left unattended
Approach
42
39 Customer Feedback
Management
Benefits
US based retail chain Homebase invests in a periodic customer feedback
gathering tool through quantitative and qualitative research to gauge
customer satisfaction, pain points and inputs on product range and service.
Homebase has structured a People, Process, Products based
organization structure to consistently deliver on the promise to
its customers and create long term sustainable revenues.
Result
Hello?
Hello?
Help!
UGH
Thanks

up
Critical operation that demands instant response
or acknowledgement
Calls for rectification and appeasement of
grievance raised and settlement of complaint with
the customer through remedial measures
Instant acknowledgement of customer grievance
creates a positive vibe with the customer by
revealing company's readiness in addressing
complaints
With analytics, mapping customer data to provide
personalized complaint management cements
relationship with the customer
Helps in crafting pleasant next-visit customer
experiences and driving loyalty and profitability
Approach
43
40 Customer Complaint
Management
Benefits
A leading consumer electronics brand devoted significant efforts in
developing a customer complaint management engine that could
resolve customer queries or ticket raised swiftly.
Reduction in operation costs with a centralized complaint
management system that lowered average time for complaint
resolution from 18 days to 48 hours.
Result
Customer Service
support
Sales
info
policy
response
question reply
quality
opinions
information
reviews
survey
satisfaction
assistance
complaint
relation
helpful

Capillary oﬀers an Intelligent Customer Engagement platform to retailers and consumer businesses - managing the entire
life cycle of customer data from acquisition, analysis, insights and activations. We are the world's leading SaaS provider of
end-to-end Multi-Channel Customer Engagement, Big Data Customer Intelligence, Clienteling, Real-time Loyalty and
Social CRM solutions to 150+ enterprise customers - with over 10,000 locations and 75 Million shoppers who interact with
our cloud platform.

40 Customer Engagement Learnings from Leading Brands Handbook

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