Case: Personalised communication in Retail

How personalised offers drive conversion

Subjects:

  • Offer personalization
  • 360° customer view

We helped a large retail organisation to improve customer loyalty significantly, by implementing automated segmented and event-driven campaigns. Combined with their new loyalty program, we managed to increase conversion rates for campaigns, and at the same time, lower the total marketing costs.

Loyalty programme

This leading department and online store wanted to move from a one-size-fits-all approach to personalised offers and communication. Using their existing customer card, they decided to implement a new loyalty programme, concentrating on the customer’s specific buying behaviour. Due to our extensive knowledge of marketing strategies, direct marketing and customer analytics, we were asked to implement the underlying analytical CRM solution.

Integrated customer database

At the heart of the solution is a database where valid and up-to-date customer data is gathered from all touch points. Information from the cardholders’ database, the webshop and the customer contact centre has been integrated into one 360º customer view. This master database is not only the central source for customer engagement, but is also essential in supplying optimal service to customers.

Advanced segmentation

On top of the customer database, Crystalloids implemented software for advanced analytics, campaign segmentation and reporting. With this environment, modelling techniques like ‘affinity modelling’ and ‘likelihood to respond’ are used to discover cross- and upsell possibilities. With cluster analysis, customers are constantly segmented based on recency, frequency and monetary value. These customer segments and the expected buying behaviour allow for campaigns that are far more targeted and personalised.

Self-service

To be able to run the advanced customer loyalty programme, Crystalloids consultants provided our customer with full marketing support, from advanced analytics to running segmentations, selections and campaigns. To help our customer maintain and develop the loyalty programme on its own, we gave further shape to its campaign management processes and trained its marketers. They can now design, implement and run new campaigns themselves; single or repeated campaigns, targeting specific customer segments, but also event-driven campaigns. Over time, and with every campaign, the knowledge about customer behaviour grows, resulting in a consistently increasing conversion rate.