From Mass Marketing to Individual Communication.
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1 MADE TO TRADE. From Mass Marketing to Individual Communication. Presenter: Thomas Führer METRO SYSTEMS GmbH 2014 V 1.61
2 Contents. 1 METRO GROUP. 2 METRO SYSTEMS. 3 Data Warehouse at METRO. 4 1 to 1 Communication. 1
3 Made for success: METRO GROUP at a glance. One of the world s leading retail and wholesale companies Successful stock-listed company Presence in 2,200 locations in 31 countries Around 249,000 employees from 170 nations Four sales lines with leading positions METRO Cash & Carry: cash & carry wholesale Media-Saturn: consumer electronics stores Real: hypermarkets Galeria Kaufhof: department stores All sales lines are closely linked to online shops Geared towards sustainable positive earnings development 2
4 Group structure profiles at a glance. METRO AG A leading international player in cash & carry wholesale trade Europe s No. 1 consumer electronics retailer; one of the largest discount providers in German-language online sites One of the leading operators of hypermarkets in Germany The market leader in the department store segment in Germany and Belgium Companies 3
5 Sales and earnings developments 2013/14. Sales 9M 2013 mn. 12M 2012/13 mn. 12M 2013/14 mn. Change in % compared with the previous year s period in in local currencies METRO GROUP 46,321 65,679 63, % Germany 17,840 25,623 25, Eastern Europe international 28,481 40,056 37, Group sales by region 2013/14: 5.9% Asia/Africa 40.4% Germany Western Europe 1 13,664 19,192 19, Eastern Europe 12,011 17,180 14, Asia/Africa 2,805 3,685 3, EBIT 2,3 METRO GROUP 728 2,000 1, % Western Europe 1 Status: 30 September Excluding Germany 2 Before special items 3 Adjustment of previous year 4
6 Employees and locations. Employees 1 Locations Selling space in 1,000 m² Employees 3 by region: METRO GROUP 249,150 2,200 12,236 Germany 104, , % Asia/Africa 38.5% Germany Western Europe 2 53, ,841 Eastern Europe 68, ,855 Asia/Africa 23, % Eastern Europe 20.3% Western Europe 2 Status: 30 September By headcount as of closing date 2 Excluding Germany 3 Full-time equivalents 5
7 Contents. 1 METRO GROUP. 2 METRO SYSTEMS. 3 Data Warehouse at METRO. 4 1 to 1 Communication. 6
8 METRO SYSTEMS Information Services. 7
9 International presence local strength Duesseldorf, Germany Presence in 26 MCC countries Bucharest, Romania Status:
10 Contents. 1 METRO GROUP. 2 METRO SYSTEMS. 3 Data Warehouse at METRO. 4 1 to 1 Communication. 9
11 METRO Data Warehouse (MDW) - Content. Broad Information at one Single Point of Truth 10
12 Metro Data Warehouse (MDW) - Single Point of Truth. Metro Data Warehouse Central Information Source International Supplier Management Shelf Management CSM Plannng & Forecast TPT MDO Campaign Management MCM 26 countries Customer Management MCRM DEAL Promotion DnR Tracking Key Intinatives PerforM Supplier Collaboration MSMS Logistic MSLS 2 sales line Common Data Structure Common KPI definitions Common Hierarchies Basketballkorb ML MDW Market Research Data Exports 11
13 METRO Data Warehouse (MDW) - Facts. The Standard BI Application at MCC and Real Delivered more than ~ 8.5 Mio. reports in the last 12 month Daily data freshness on customer / article on store level (real,- near real time ) Used currently by ~ users in 26 countries / in 11 time zones Stores ~ 85 TB of data, up to 3 years detailed data Business improvements / experience over the last 17 years 12
14 METRO Data Warehouse (MDW) - Deployment Status. Austria Productive Countries 13
15 METRO Data Warehouse (MDW)- Flexible Areas. Corporate Solution Standard Flexible Area Local Frontend Reporting Query man ODBC Backend Data Model Country Database 14
16 Contents. 1 METRO GROUP. 2 METRO SYSTEMS. 3 Data Warehouse at METRO. 4 1 to 1 Communication. 15
17 Shopping at METRO C&C stores. Customer registration Customer entry Collecting goods Checkout with personalized invoice 16
18 Mass Marketing: What does it look like? Example for Metro Mail (MCC Germany)? 17
19 Individual Communication: What does it look like? Example for Direct Mail (MCC Poland) 18
20 Individual Communication: What does it look like? Example for HTML- Version Full View Zoom in: Top part 19
21 Individual Communication: What does it look like? Example for Individual METRO/MAKRO Mail (NL) (1/2) Back page Front page Personalized salutation Second best targeted offer Introduction text signed by store manager Disclaimer with targeted photo Best targeted offer 20
22 Individual Communication: What does it look like? Example for Individual METRO/Makro Mail (NL) (2/2) Left middle page Right middle page Targeted competence Targeted offers 7-14 Targeted offers
23 Targeted Marketing How does it work? Data collection Data analysis Individual communication Direct Mailing Customer visits the store and does his shopping, orders for delivery, visits websites or receives digital communication Data is analysed to define Shopper DNA (customer likes & dislikes) Communication is sent out to customer with individual offers (Direct Mailing & ) 22
24 Targeted Marketing How does it work? Systems & Processes Keeps the data & content flowing Defines what is relevant for whom Data Mining Organisation Coordinates all elements to final result Provides the visual & textual triggers Execution & Production 23
25 Campaign Execution I / one time Enrichment with all campaign components (assets) Generation of the different Input files for the further process steps / systems Uploading all necessary content per IG to the Content Store Content Store Maintenance of picture Url; selection of text and discount percentage etc. Creative Instruction DM Printing House Instruction Workbook Creative Instruction EM Optivo Definition of discount action MMS DnR GMS/SCS DnR 24
26 Campaign Execution II Address selection based on Scorings and Communication Strategy is done in MCM Cardholder lists are provided to the printing house and Optivo, depending on communication channel Customer Target Groups have to be created in MDW and are transferred to the DnR-module of MMS or GMS/SCS MDW MCM MCM User Campaign plan Media Database Customer Target group for DNR Customer , SMS, Phone-No; Offer identifier MMS DnR Optivo Web Service To be contacted cardholder addresses Offer Printing House Printing House to personalize with Cardholder name and Offer Identifier 25
27 Targeted Marketing = Data Driven Marketing. Data availability and data quality are major factors to select and communicate relevant content to individual Customers / Cardholders Speciale paasselectie voor M. XXXXXX Sample description 14,55 Customer Data Address information information Contact permissions Product Data Article descriptions Brand information Price segment 26
28 Benefits of 1 to 1 Communication. For the Customer Recognition as Individuals Relevant communication Usage of digital channels For Metro / Makro Increase of touchpoints Growth of customer loyalty Usage of digital channels 27
29 Next Steps. Implementation of Teradata Aster Development of new DataMining Models on new Aster environment Implementation of new campaign types Piloting of a Marketing Operation Suite with MCC Russia Development of a dedicated Coupon and Voucher Management System Presentation of Coupons/Vouchers on Web-Portal 28
30 Contact. METRO SYSTEMS GmbH Senior Consultant Thomas Führer Metro-Strasse Duesseldorf Germany Phone: Internet: 29
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