1
Aug 08, 2015
3
DISCUSSION
• What is CRM?
• Lessons learned!
• Your issues and questions.
• CRM benefits.
• Other things.
4
WHAT IS CRM?
‘Using customer data and business intelligence to build customer value over time’
C = CUSTOMER
R = RELATIONSHIP
M = MANAGEMENT
5
WHAT IS CRM?
• How do we describe customer value?
Three metrics are used by most retailers to define customer value:
RECENCY – the time frame in which a customer purchases, for example 0 – 3 months from date of purchase, and most recent/least recent.
FREQUENCY – the number of times a customer purchases, for example, 1x, 2x, +3x, and most frequent/least frequent.
MONETARY – the dollar value of a customer’s purchase, for example, total lifetime purchase value and top 10%/bottom 10%.
6
WHAT IS CRM?
• How is value operationalized?
In other words, how do we apply customer value in designing CRM programs and how do we talk about that application?
SEGMENTATION
7
WHAT IS CRM?
• What is segmentation?
A segmentation RANKS customers from highest value to lowest placing them into buckets called SEGMENTS for planning purposes as follows:
Most recent plus most frequent plus
highest value (top 10%)
To the lowest bucket of
Least recent (oldest) plus least frequent plus
lowest value (bottom 10%
8
LESSONS LEARNED!
Three stories and three lessons:
1. CLIENTELLING -- “Pour moi d'être compris, je dois comprendre“
2. PROCESS/DETAIL -- “There are 179 step in an effective contact program and they are all worth a nickel”
3. ENGAGEMENT -- “Your best customer is the customer standing right in front of you, right now”
9
YOUR ISSUES AND QUESTIONS
A number of questions about TUMI CRM standards, the customer database, and how we contact our customers have come up including:
1.TUMI customer database –
215,000, 0 – 12 month customers
600,000, 13+ month customers
60% of our customer shop 1x and never return to shop
10
YOUR ISSUES AND QUESTIONS
2. Mailing and emailing
0 – 12 month customers are mailed three times per year
400,000 customers are emailed weekly
11
YOUR ISSUES AND QUESTIONS
3. Capture –
A perfect capture is an accurate capture
12-months to April we processed 440,000 transactions and 215,000 captures (48%)
Capture works when the customer is engaged, for example, in the EU we have 45,000 tracer registrations but less than 18,000 captures through TUMI owned stores.
12
YOUR ISSUES AND QUESTIONS
4. Foreign Tourists
We can capture foreign tourist address information and save the record.
We can’t accurately transmit that information to the customer database
We are working on a fix!
5. Why capture foreign tourist information –
TUMI is a global company
Without capture we can’t increase customer value
14
CRM BENEFITS
1. Name Capture
if we capture a customer and touch them 4x in the first six months after sale they are 60% more likely to convert to a second sale.
The average sale of a captured customer is about 14% higher than that of a non captured customer.
If 2% additional buyers are captured the average store will benefit by +$ in sales
15
CRM BENEFITS
RETAIL CAPTURE REPORTReport date:Period: MAYClassification: DOMESTICDistrict: NORTHEASTArea: BOSTONStore #: 74Store Name: CHESTNUT HILL
DNC PHONETRAFFIC TRANSACTIONS CAPTURED MAILABLE CAPTURED MAILABLE
MONTH 2,650 174 - 160 77 70 16 6 0% 6% 3% 3% 1% 0%0% 92% 44% 40% 9% 3%
YTD 9,525 684 17 632 285 29 0% 7% 0% 3% 0% 0%2% 92% 0% 42% 0% 4%
MONTH 26,501 7,950 1,354 860 770 109 5% 3% 0% 3% 0% 0%
17% 11% 0% 10% 0% 1%
YTD 12,954 8,995 3,350 2,513 1,632 1,152 26% 19% 0% 13% 0% 9%37% 28% 0% 18% 0% 13%
DOMESTIC
STORE
ADDRESS EMAIL
16
CRM BENEFITS
2. Value
The top 30% of our customers based on RFM account for x% of total business (show HML segmentation by store)
RETAIL SEGMENTATION REPORTReport date:Period: MAYClassification: DOMESTICDistrict: NORTHEASTArea: BOSTONStore #: 74Store Name: CHESTNUT HILL
COUNTS% TOTAL ACTIVES
Lifetime Dollars
% TOTAL ACTIVES
Lifetime Spend Per
CustMailable % Emailable %
57,078 27% $105,259,549 53% $1,844 44,163 24% 27,758 26%75,691 36% $47,197,701 24% $624 67,109 37% 42,136 40%78,552 37% $45,757,546 23% $583 71,627 39% 35,548 34%
211,321 100% $198,214,796 100% $938 182,899 100% 105,442 100%1x BUYERS 18,852 9% 56,316,859 28% $856TOTAL TRANSACTIONS 439,626
57,078 27% $105,259,549 53% $1,844 44,163 24% 27,758 26%75,691 36% $47,197,701 24% $624 67,109 37% 42,136 40%78,552 37% $45,757,546 23% $583 71,627 39% 35,548 34%
211,321 100% $198,214,796 100% $938 182,899 100% 105,442 100%1x BUYERS 18,852 24%TOTAL TRANSACTIONS 439,626
CAPTURED
DOMESTIC
STORE
HIGH VALUEMEDIUMLOW VALUETOTAL ACTIVES
HIGH VALUEMEDIUMLOW VALUETOTAL ACTIVES
17
CRM BENEFITS
3. Repeat Purchase (Frequency and segmentation
60% of TUMI buyers shop 1x and never return. If we convert x% of those customers to second sale this will deliver approx $x per store
TUMI - FREQUENCY REPORT District: Store Number: Store Name: MONTH: < mm/dd/yy> RUN DATE : < mm/dd/yy> YEAR TO DATE 2011 2010 YTD MNTH AVG
$ ##/TOT
% $ ##/TOT
% $ ##/TOT
%RETAIL NEW (1X buyers that never bought) 1X (excluding new buyers) 2X 3X + TOT % TRANSACTIONS TOT TRANSACTIONS WEB NEW (1X buyers that never bought) 1X (excluding new buyers) 2X 3X + TOT % TRANSACTIONS TOT TRANSACTIONS
18
OTHER THINGS WE ARE WORKING ON
• Store level customer reporting
• Seamless Receipts
• Customer database
• Gift card promotion and mobile gift card
• Retail corporate gift update
• Passport program rollout
– Tracer update