Customer Data Collection with the Integration of Mobile Technology in the Retail Fuel Sector

Transcription

1 The world we have created today has problems that cannot be solved by thinking the way we thought when we created them Albert Einstein Customer Data Collection with the Integration of Mobile Technology in the Retail Fuel Sector

2 Agenda Corporate Overview BP Project Objectives Data Collection & Database Content Data Campaign to Loyalty schemes Conclusions & Next Step

3 Corporate Overview March 24, 2004

4 Corporate Overview Business has two functions, marketing and innovation Peter F. Drucker Pharos Consulting specializes in strategic consulting, creative marketing solutions, CRM strategies and execution processes, smart business applications, campaign management and sales strategies over changing communication and purchasing platforms

5 Operation Fields & Abilities SALES & CHANNEL SOLUTIONS CUSTOMER SOLUTIONS Creative Business Idea PLATFORM SOLUTIONS INTEGRATION SOLUTIONS STRATEGIC DATABASE & ANALYTICS SOLUTIONS In the world of standardized solutions, Pharos provides creative business solutions through deploying, customizing and integrating solutions available in the marketplace, in line with customers needs and wants.

6 Pharos as a pioneer From process improvements to technological implementations and from f customer data collection to new communication platforms, Pharos aims to provide businesses with innovative solutions consistent with their unique needs and opportunities available in the marketplace. Pharos Consulting differentiates itself from other consulting firms through its methodology, where it not only creates a business idea but also a takes on the execution of the project, thereby relieving clients of the additional a workload. Pharos Consulting acts as the main liaison for its client. Regardless of the size and scope of the project, Pharos determines and coordinates all third parties involved, executes and manages the project and delivers tangible results.

7 Leadership is action, not position. Donald H. Mcgannon

8 BP Overview One of the leading gas retailers in Turkey 3 rd rd biggest company in Turkey in terms of revenue (US$2.5( bio in 2003 US$2.5 bio in 2003) Approximately 600 retail sites with high big city penetration local dealer Network Strong brand values Leader in service quality and in innovation

9 Oil & Gas Overview - Turkey Towering competitive pressures Agressive new comers to the marketplace Brand-switchers forming the 40% of entire oil customer-base Promotion sensitive consumers Hard to differentiate due to heavy price and product regulations s from governmental fronts The Wooden horse is entering the Troy 2005: the year of price deregulation No promotions but pinpointed marketing efforts

10 Getting ting ready for the Action Need for customer data for marketing purposes before price deregulation starts Need for differentiation in rising competitive pressures Finding a smart way to collect customer purchase data Creating a customer database Re-activating customer database through designing campaigns and testing loyalty programs

11 Exploring the right path of total retail fuel consumer-base of the consumers are Turkcell customers of estimated shared customers of BP & Turkcell Attract Turkcell customers Capture Data What is the right offer? Which is the easiest way?

12 Solution; BP-Turkcell Airtime Campaign One of Turkey s s largest joint campaign held nationwide BP & Turkcell Unique customer offer call duration and counter units of Turkcell Customer were given promotion slips with algoritmic codes Codes were send via text messaging Call durations and counter units were uploaded by Turkcell 7-month time span

13 WAFOIZOLF Gamze ozcelik Gamze ozcelik, you have reach an upload level. 5 minutes of call duration has been uploaded to your account. free counter units and free call durations

14 Campaign Results Customer Responsiveness to the BP-Turkcell Campaign on spending thresholds POS + SMS figures are used, Phase II Sep.-Dec.'03 61,4% 63,2% 73,3% 70,7% 77,7% 76,7% 82,3% 80,0% 85,0% 90,4% 100,00% 90,00% 80,00% 70,00% 60,00% 50,00% 40,00% 20 milyon 30 milyon 40 milyon 50 milyon 60 milyon 70 milyon 80 milyon 90 milyon 100 milyon 00 milyon +

15 Success Criteria Critical Mass 40% of BP Customer Base Customer Response Rate 40% of the entire revenue-coverage Retail Participation 80% of retail sites in BP network Manageable Database & Coding System Multiple information embedded in single code

16 First Level Results Customer Response Rates vary in 65% - 85% environs 60% of BP Customer base is reached Around 30% of Turkey s s carpark is covered Customer Database of unique customers BP Data Requirements are met 95% of retail participation Over transactions registered counter units & call duration equivalents are distributed Around 40% to 50% of revenue covered

17 Creative Idea Project Milestones A campaign with a unique customer offer: free counter units and free call durations in return for gas purchases Algoritmically shortened unique code system to collect customer information Technological Infrastructure & Development POS and SMS technologies customized for BP Turkey. Software and infrastructure developments in all parties. Campaign & Data Collection Heavily advertised co-promotion with GSM operator giant Turkcell. Unique codes sent by SMS to receive promotional offer form the basis of the data collection channel. Data Analysis Enterprise Guide is used to analyze the immense data flowing into the BP Customer Database. Data Activation All feasibility and campaign and loyalty schemes are tested and formed upon the outcomes and studies on Enterprise Guide

18 The secret to creativity is knowing how to hide your sources. Albert Einstein Data Collection & Data Content March 24, 2004

19 Data Collection Process TSIFEK Merchant ID RF B I Amount Product Type Check Digit SMS Text Messaging Data warehouse Payment Type Purchase Time Merchant Info Code Content Customer Name Code Sent Time Customer Phone Number

20 Data Collection Infrastructure Lipman Quad Server Campaign Operational Interfaces Data Ware house Unique Codes; XYUZWESRJ Pharos BP Server Enterprise Guide

21 What do we sit on? BP Retail Specific Retail Site Specific Customer Specific Spending amount Number of BP-Turkcell customer Number of BP-Turkcell Customer Visiting frequency Visiting times Average pump-filling size Retail points visited Station-loyalty type Method of payment Product purchased Estimates for total number of customers Average pump-filling size Customer breakdown at spending bracket and payment method Purchase profiling Peak times Responsiveness to promotions Number of customer Purchase behaviour in customer database Spending brackets in Turkey Geographical mapping Ability to measure migration rates

22 One Month in BP Retail Turkey Share of BP Customers - campaign participants At Different Monthly Spending Brackets (Mio TL) % % % % Total BP Customers - estimated by customer response rate At Different Monthly Spending Brackets (Mio TL) % % % % % Source: SAS Enterprise % US$ US$ US$ US$ % % Source: SAS Enterprise

23 One Month in a Chosen BP Retail Site Monthly Revenue Breakdown, Monthly Spending Brackets - November TL 26% 0-79 TL 28% 0-79 TL TL TL TL TL 250+ TL US$ 190 > US$ TL 7% TL 11% US$ US$ TL 17% US$ TL 11%

24 One Month in a Chosen BP Retail Site 15% of this BP station s s customers are at the spending bracket of TL mio 149mio (US$76-110) US$ This segment produces 17% of the total monthly revenue TL 17% Average monthly spending is at TL114mio (US$85) per customer This customer group s s peak times are on Fridays and Tuesdays, between 18:30 and 19:45

25 One Customer in BP Retail System Visit mapping; station-loyal to Maltepe Station,, few purchases in closer to other BP retail sites An average of TL217mio (US$165) is spent at the BP retail system each month This customer bears a potential of TL450mio (US$350) of monthy total spending in BP Filling amount per visit is TL61mio (US$45) Visit frequency is once every 4-5 days Visiting days: : Saturdays and Mondays mostly Product purchased: : Unleaded Method of Payment: : 80% of overall spending is with Credit Card

26 At the end-of the day BP acquired a living and vibrant database as well as a strong purchasing data empowered by regional and site-specific specific flexibility Data collection was quick, efficient and manageable through the use of technology BP finds a new channel to communicate with its clients: SMS

27 CRM at BP Retail - Turkey Customer Communication BP Customised Campaigns BP Retail Site Segmented Campaigns

28 People do not lack strength; they lack will. Victor Hugo From Data Campaign to Loyalty Implementations

29 BP Customer Protection Program Objective is to create an emotional bond among BP loyal customers by providing a BP-specific insurance package in return for reaching a monthly purchase threshold

30 Project Preparation - Phases Process Design BP Client-Specific Product Design BP Database Results & Evaluation Pilot Data Test on BP Database Pilot Project Creation

31 Personal Accident + Excess Liability + Medical Expenditures Monthly purchase limit is set according to analysis outcomes Higher purchase = Higher premiums Enterprise Guide is heavily used to select 150 stations in 3 main BP regions with bigger customer base fulfilling requirements Process Design BP Client-Specific Product Design BP Database Results & Evaluation Pilot Data Test on BP Database Pilot the Pilot participants were chosen from higher spending segment Credit card usage and related amounts are higher than BP averages Monthly average spending is above TL200mio Target audience size is estimated through database Pilot data is segmented by phone number, age, martial status and upgrade conversion on retail station breakdown Pilot customers purchasing behaviour is analyzed with Enterprise Guide Fiction Creation Pilot project on 4 major sites for 2 weeks unique customers joined the pilot AIG outbound call upgrade conversion is measured

32 BP Customer Protection Program BP Customer protection program is expected to be held in 2004 Q4Q Brand value of security will be strengthened in BP s s customer perception A total of 150 stations is expected to joint the program 10% of the total customers in the chosen regions are expected to t participate in the program

33 Lessons Learned From data collection to data analysis, all phases should be defined and planned carefully and with insight into the future. You can not collect all the data needed at the same time, though technology drastically quickens and facilitates the process. Rewarding is a very efficient stimulus behind data collection. Analytics is meaningless without business and marketing objectives.

34 Next Steps Before the year 2005, data collection will continue with various marketing activities and campaigns. Database will be deepened both horizontally and vertically. Price deregulation will create the need for a database covering all retail territory down to even the smallest retail points. Product, customer and regional segmented campaigns and loyalty schemes will be critical smart marketing efforts should be supported through ongoing analysis.

35 Customer Data Collection with the Integration of Mobile Technology in the Retail Fuel Sector March 24, 2004