Our client, one of the biggest retailers in Europe, was struggling to keep up with the competition. The client boasted of having more than 15,000 stores across Europe with a consolidated revenue of more than $50 billion. The crux of the problem was mushrooming of multiple niche players in the market that had focused offering and concentrated segments. Due to its huge size, client wasn't able to target its customers as effectively as niche players. To make matters worse, there was a complex marketing ecosystem that was too rigid to be adequate against agile competition. Consequently, market share started falling and all the efforts to improve conversion rate fell flat.
SpeedIT Consulting took hybrid approach towards designing of marketing strategy for the client. It was based on combination of data driven advanced analytics and fundamentals of traditional marketing. It took a 3-pronged approach towards countering competition and increasing conversion rate.
- De-centralised Marketing Operations:
The first step of the strategy was to empower local marketing teams. The central marketing team agreed to take up high level strategy/compliance role, while regional business owners were empowered to design their own campaigns. These campaigns were specific to their business vertical/category/region across marketing channels. Offers and promotions were still managed by central marketing team, which were available for business owners to choose from. Overall, it resulted in huge synergies between local and central marketing team. As a result, total of over 500 users, across 10 countries are now collaborating to plan & execute the best offers for their consumers.
- Implement Data Driven Omni Channel Loyalty Platform
Client already had an existing customer loyalty program. However, like most big companies in the world today, their loyalty program was product based, following market basket model. SpeedIT helped client implement new generation loyalty program based on individual customer journey. Advanced analytical models were designed using SAS solutions like Marketing Operations Management & Customer Intelligence for a highly convergent, omni channel loyalty platform. As a result, their loyalty program is now much more personalized and far more effective than before.
- Analytical Customer Segmentation
SpeedIT Consulting designed an advanced analytical model to ensure consumer ranking is really aligned to individual behaviour in the real world. Analytical consumer ranking system was developed, which would score consumers on various parameters, like social media influence, loyalty, purchase readiness, product affinity, maturity and similar. These individual scores were then utilised in building a customer segmentation model, which allowed marketers to easily provide the next best offer to their consumers. Apart from standard demographic data, the analytical scores helped in improving the consumer loyalty by specifically targeting the consumers with the right offer.
- Improved time to market due to localization.
- Improved customer satisfaction due to highly targeted messaging.
- Increase in overall conversion rate by more than 15%.