A Retail Merchant Loyalty Program

Transcription

1 A Retail Merchant Loyalty Program

2 Table of Content A Retail Merchant Community Slides Loyalty Strategy Slides 5 11 Suggested Systematic Marketing Campaign Calendar Slides New Services we suggest to introduce Slides A Retail Merchant s Loyalty Partner Slides Survival by Charles Darwin Slides 19 20

3 A Retail Merchant Community (April. 1 st 13 March 31 st 14)

4 A Retail Merchant Community No of Cardholders : 57,128 No of Visits : 426,174 Visit Ratio of each customers : 7.46 Average Ticket Price per visit : $ Average Customer Spend : $ No of cardholders who redeemed points : 19,233 No of Additional Visits generated (Redeemed) : 44,201 Average Redemption transaction per visit : $ Average purchase value when a redemption takes place : $ Total Revenues Transacted on Loyalty Program : $ Million From Rewarded Points : $ million From redeemed points : $ 2.43 million Total NET Uplift in Revenues : $ 1,773,304 % increase on Revenues : 10.36%

5 2014 Loyalty Strategy

6 Opportunities From April 1 st 2013 March 31 st 2014 The last visit date of 26% of our customers was in the last 30 days The last visit date of 17% of our customers was in the last 60 days The last visit date of 13% of our customers was in the last 90 days The last visit date of 6% of our customers was in the last 120 days The last visit date for 38% of customers was over 120 days. Strategy: 1. Increase our revenue from customers by targeting the customers who have not made a purchase in months. 2. Begin by targeting the 44 % of our customers who have not visited us for at least 120 days and above by preloading their cards with $ 10 (20% of the average bill) to be used within 30 days. 3. Continue to monitor the ones who do not visit for at least 120 days. 38% % of customers Last Visit 26% 17% 6% 13% Up to 30 Days Up to 60 Days Up to 90 Days Up to 120 Days Over 120 days

7 Opportunities Customers Visiting From April 1 st 2013 March 31 st % of customers purchased from 1 brand 23% of customers purchased from 2 brands. 10% of customers purchased from 3 brands. 7% of customers purchased from 4 brands and above. Strategy: 1. Cross sell other brands to the customers who have not yet made a purchase from those brands. 2. Start with targeting the 60% who purchased from one brand in the last 12 months by offering them double points on their purchase from other brands. 23% 10% 7% 60% 1 Brand 2 Brands 3 Brands 4 and above

8 Opportunities From April 1 st 2013 March 31 st 2014 % of Cardholders 26% of customers visited 1 time 23% of customers visited up to 3 times 12% of customers visited up to 5 times 9% of customers visited up to 7 times 6% of customers visited up to 9 times 24% of customers visited 10 and above Strategy: 1. Increase our revenue from customers whose average visit ratio is less than the yearly average of 7.46 times by increasing their visit rates. 2. Start with targeting the 70% of our customers who visited us up to 7 times in the last 12 months and offer them a raffle. 6% 9% 24% 12% 26% 23% 1 Visit 2 & 3 Visits 4 & 5 Visits 6 & 7 Visits 8 & 9 Visits 10 + Visits

9 Opportunities For 4 quarters April 1 st 2013 March 31 st The AVG bill per transaction during April June 2013 was $ 50.2 while The average bill per transaction during July Sep 2013 was $ 42.2 The average bill per transaction during Oct Dec 2013 was $ 55.8 The average bill per transaction during Jan Mar 2014 was $ While The Average Visit Ratio of each customer was 2.05, 2.17, 2.0 and 2.51 in the last 4 quarters. Strategy: 1. We should Increase Average Ticket price during slower seasons by rewarding double points when customers spend above a certain amount (ie, $ 70). 2. With an increase average visit ratio of over 2.5 times, this would reflect on spend per Cardholder April - June 2013 July - Sept 2013 Oct - Dec 2013 Jan - Mar 2014 Avg spend / CH Avg Bill / visit April - June 2013 July - Sept 2013 Oct - Dec 2013 Jan - Mar 2014 Avg Bill / visit Avg spend / CH Visit Ratio

10 Opportunities From April 1 st 2013 March 31 st 2014 Average ticket price is $ 46. Average Redemption Value is $ 15. Average Sale price of products sold when redeeming points is $ 55. We generate a 368% uplift from each redeemed transaction We generate 20% increase from the average ticket price. $ Avg Values This resulted in a NET average of 10.36% increase to our overall revenues of $ 1.77 million. Strategy: 1. Reward customers with a meaningful value so their points balance grows fast. 2. Target customers who have a points balance of more than $ 15 to redeem their points Avg purchase value Avg Redemption Value Avg Purchase value with redemption Avg purchase value Avg Redemption Value Avg Purchase value with redemption Series

11 Other Opportunities / Strategies 1. Reward and thank our top 5 customers who spend the most by brand in each quarter. 2. Reward and thank our top 5 customers who visit the most by brand in each quarter. 3. Reward and thank our top 5 customers who visit & spend the most in all brands. 4. Create a raffle with the main objective of increasing revenue during slow seasons. Example: Get one chance to win an IPAD for every $10 you spend at any of our outlets during Sept. 5. Increase the number of cardholder by ensuring every customer who buys a product, gets a card. 6. Train our employees to request for the Retail Merchant Loyalty Card when a transaction is made so that it is registered in the database. This has to be part of the company s culture. 7. Create bonus schemes to our employees for distributing our Loyalty Card. 8. Create Competition between our brands for the highest % increase in loyalty transactions.

12 Suggested Systematic Targeted Marketing Campaign Calendar

13 12 Week Systematic Marketing Campaign: Right Offer to the Right Customer Inactive Customers Active Customers Period Raffle Double Points Cross Sell Preloading Points Redemption Reward Top 5 Reward Top 5 Total Campaign customer by spend customer by spend Events Week Week Week Week Week Week Week Week Week Week Week Week Total Events

14 New Services we suggest to introduce

15 Introduce a new VIP card to your top 10% - 15% customer base by spend and provide them with additional benefits such as but not limited to: Double points on all purchases. Early notification of new arrivals. Inform the other cardholder base of the potential to upgrade to VIP by setting a specific parameter (example, spend $ 700 (100% higher than the current average customer spend of $343) at any of our outlets in 12 months to be eligible to upgrade to a VIP) and monitor progress accordingly. Leverage the epoints loyalty platform to introduce gift cards.

16 RETAIL MERCHANT LOYALTY PARTNER

17 About Us epoints is an International customer loyalty and marketing company that designs branded programs for businesses. We engage with our partners to do three very important things: We develop, manage & execute profitable branded loyalty programs. We help our partners increase sales and loyalty across their customer base. We help our partners maximize the return of their marketing investment by analyzing their customer data and then deploying systematic & targeted marketing campaigns sending the right offer to the right customer.

18 How The Program Works Customers register their Loyalty cards. Basic Demographic Information. Contact Details. As Customers Use their Loyalty cards. Purchase History is built. Earn points that are just like cash. Decide when to redeem their points balance at any next visit. Obtain analytics. Study analytics and prepare our customized marketing plans. Increase Marketing ROI Increase Sales Increase Profits The Process The Result

19 Survival by Charles Darwin

20 It is not the strongest of the species that survives, nor the most intelligent but the one that is most adaptable to change Charles Darwin