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Barbara Canning Brown Toys R Us senior managment presentation -- CRM VISION

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Toys R Us had been driving its response business from the program level rather than the customer. I saw a tremendous opportunity to grow sales and bottomline by introducing an RFM segmentation and propensity modeling program. The RFM test programs delivered increment 640% lift in response and +6M in incremental profit. It was a huge win for the company

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Barbara Canning Brown Toys R Us senior managment presentation -- CRM VISION

  1. 1. 1 1 APPROACH TO CRM CRM VISION CRM Strategy Planning Meeting February 2008 Prepared by: Barbara Canning Brown
  2. 2. 2 CHARLES APPROACH TO CRM ACCOUNTABILITY Success Metrics Forecast/Bus Case Reporting Results Optimization PROGRAM FRAMEWORK Program framework Messaging Architecture Acq / RM / Media Plan Contact/RM Plan Web Experience Creative Execution DATA STRATEGY Data Capture Survey Questions Profiling Golden Questions Decisioning/Triggers Analytics design INSIGHTS & PLANNING Goals / Requirements Insights - Brand/Target Communications Strategy Conceptual Creative DATA OPPS Business Rules Database Architecture DB Vendor Integration DB Vendor Stewardship Call Center TECHNOLOGY Siebel, Email Dashboard, Campaign Management, Reporting
  3. 3. 3 CRM VISION One To Many One To Select Groups One To One Opt-In Broad targeting Mass advertising Product/promotion driven Personalized Segmented targeting Customized communications Category/product usage driven CRM - individualized Individual targeting Personalized communications and experiences Behavior/value driven
  4. 4. 4 PROGRESSIVE DATA STRATEGY Preferenc e Data OfferRecord Content Newslette r Opt-In Account Set-Up Last Name Child Or HH Size Postal Address First Name Zip Code Email Address Opt-In/ Opt-Out Pass word Content (Newsletter) Selection Trigger Streams, Offers & Pathways Customer Behaviors Customer Segment Copy/Offer Pathways Segments ShoppingOccasions Shopping Occasion Tools Investment Customer ROI Measure PurchaseTransactions Profile Segmentation & Behavior Value
  5. 5. GROUNDED IN RFM BUT BUILT THROUGH LIFECYCLE
  6. 6. 6 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 shop 2. Who shopping for at TRU 3. Degree enjoy / dislike shopping TRU 4. Indicates what smart means to them 5. 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
  7. 7. 7 BY BUILDING INDIVIDUAL PROFILES Opt-In & Account Setup Brenda Opt-in 11554 (East Meadow, New York) Chose bi-weekly communications Account Profile & Preferences Apparel Baby Toys Children Site Interaction Behaviors Online gift registry Online birthday club Segment Brand Aspirational Shops 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 clothes Special occasion Special item mission Shops weekends Customer Value Medium value, high potential.
  8. 8. 8 BASED IN ECONOMICALLY VIABLE SEGMENTS Complete profile Opt-in Maintain spending Keep profile up to date Increase cross-category spending Make one transaction DEEPER CUSTOMER INFORMATION INDIVIDUAL BEHAVIOR CHANGE Segmentation = Profitable management of individual relationships ?
  9. 9. 9 AND WHILE PROGRAMS ARE ABOUT FILLING NEEDS Needs Price / Value Save 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. Shopping Help 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
  10. 10. 10 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.
  11. 11. 11 AND A FAIR EXCHANGE OF VALUE IS NOT NEGOTIABLE Toys R US Consumer Emotional resonance Inspiration Cross-category shopping Navigation Engagement Relevant Education & Support
  12. 12. 12 PROGRAM COMPONENTS Shop Smarter Live Better Category-Focused Featured Brands Product Promotions Lifestage Events Advanced Notice Of Product Availability Promotion of New In-Store Amenities EQUITYPROMOTION Transform Living Standards
  13. 13. 13 ILLUSTRATIVE EXAMPLES Shop Smarter Live Better Children’s Fashion Week Baby 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 EQUITYPROMOTION Trade-Up Program Charity Donations
  14. 14. 14 ILLUSTRATIVE TACTICS Shop Smarter Live Better Electronic Shopping Guides An 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 Circles A new twist on group purchasing. Third-party content & user-generated content tools integrated into online catalogues, surrounding merchandise to connecting consumers and drive purchases. EQUITYPROMOTION Dynamic Planning & Shopping Tools
  15. 15. 15 INDIVIDUAL PROFILES Opt-In & Account Setup Brenda Opt-in 11554 (East Meadow, New York) Chose bi-weekly communications Account Profile & Preferences Apparel Baby Toys Children Site Interaction Behaviors Online gift registry Online birthday club Segment Brand Aspirational Shops 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 clothes Special occasion Special item mission Shops weekends Customer Value Medium value, high potential.
  16. 16. 16 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 family 1 Child 11 yrs DNS: Electronic Shops Weekends
  17. 17. 17 TRANSFERS FROM STREAM TO STREAM % conversion from one stream to the next SUCCESS METRICS Opt-ins Conversion Rate Opt-outs % of total registrants Offer Response, e.g.Coupons printed, redeemed Email Response – open, click, unsubscribe Newsletter Interactions Conversion of non-customers to customers – offer redemption and re-qualification Cross-sell/Upsell response among customers Purchases Retention Rate - % 12-month active opt-ins Program Site Interactions Wish List completes Registry set ups Downloads Sharing etc. Return Visits # of Log Ins RECRUITMENT RELATIONSHIP MANAGEMENT WEBSITE ENGAGEMENT
  18. 18. DISCUSSION

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