Customer Boots DUG Conference 2009
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1 Customer Boots DUG Conference 2009 Ian Symis Senior Insights Manager
2 The role of Boots in customers lives
3 A range of formats supports a wide range of shopping missions High Street Edge of Town Community Flagship Airports
4 A range of formats supports a wide range of shopping missions.carried out by a wide range of customers Flagship
5 Advantage Card Data a goldmine in 8 square inches Shops at lunchtime weekdays at local store Buys vitamins health conscious Is a parent with a young baby Buys meal deals frequently engaged with 6 for 5 meal deal Boots UK Limited YATE 255 (01454) /10/ :25 Served by: LISA *** 3 FOR 2 *** Ymea silhouette Milk Thistle 6.99 Kira Blk Cohosh 2.41 SAVING 2.41 NOW.00 Pamp Act Maxi Bts B/Soft Wipes *** LUNCH *** Diet Coke 500ml.85 Shp Blueberry Bar.45 Del Dk Hsin Wrap 2.03 SAVING 34p NOW 2.99 No7 Voupon Earn.00 TOTAL TO PAY CARD SALES Total Saving Today 2.75 Including 0.34 Deals And 2.41 Discount ADVANTAGE CARD STATEMENT 6TH MEAL DEAL FREE You Have Bought 4 Meal Deals Buy 1 More To Claim Your 6 th Meal Deal Free Before 31/10/08 Points Received 48 Points to Spend In Store * for 2 offers From the Advantage Card data we also know: Name: Laura Smith Address: 1a Street, Yate, Gloucestershire, BS1 2AB lsmith1234@hotmail.com Phone Number: Mobile Phone Number: Purchase History: Any purchases linked to Advantage Card Clubs: Parenting Club
6 The challenge for segmentation is to translate raw data into a picture of the customer Miss Laura Smith: is a busy working mum likes shopping in town on a weekend looks after her health is looking for good value loves a bargain on promotion We have the opportunity to understand 16m customers as well as we understand Miss Smith!
7 Advantage Card data tells us what customers do.. but why do they do it? Viewpoint is an online panel, with 35,000 Boots customers It can be used for quantitative surveys both big and small and online qualitative research
8 Provides us with factual insight into a wide range of issues Longitudinal tracking understanding how individual customers change over time Behaviour and attitude diaries Straw poll giving feedback for free Website evaluation studies Online questionnaires using images and media
9 Description of Customer Segments
10 Segmentation timeline Repertoire Repertoire Repertoire WHAT WHAT WHAT Holistic Customer Holistic Customer WHY Holistic Customer WHY WHY Door Mat Door Mat Door Mat Lifestage Lifestage Lifestage WHO WHO WHO Value Drivers Value Drivers WHAT Value Drivers WHAT WHAT Behavioural Segments (introduced) Behavioural Segments (introduced) WHAT Behavioural Segments (introduced) WHAT WHAT Betty Tina & Charlotte Betty Tina Charlotte Betty WH0 Tina & Charlotte WH0 WH0 Behavioural Segments (updated) Behavioural Segments (updated) Behavioural Segments WHAT (updated) WHAT WHAT
11 Existing segmentation framework All Advantage Card All Advantage Card Used to develop the overall brand proposition for Advantage Card and the in-store marketing materials
12 Segmentation framework All Advantage Card Charlotte Tina Betty Bob Lifestage based segments: Betty, Tina, Charlotte, Bob These segments are used to educate our shop colleagues on the main customer profiles for recruitment and engagement purposes Direct mailing creative segmentation is carried out at this level as further levels of segmentation may not be cost effective e.g. this level is used to target men e.g the men's versions of the Advantage Card statement/ Health Club mailings
13 Lifestage based segments Betty Our oldest female group - aged 55 and over. Betty is most likely retired and her kids have left home. Her health needs come before her beauty needs, with over 70% of her spending being in healthcare. Tina Our mum, with children living at home. Family health, good value and beauty treats for herself are her key priorities. Charlotte Our younger single female, with no children. Charlotte is our most important beauty customer, making up 34% of her spend in Boots.
14 Segmentation framework All Advantage Card Charlotte Tina Betty Bob Cosmopolitan Busy & Beautiful Young Family Family Brand Classic Beauty Health Guidance Health Aware Grab & Go Behavioural Segments ( 8-way ) Contact planning to ensure that we are not over or under communicating with any one segment Strategic frameworks for proposition development e.g. beauty communications Used for tailored programmes e.g. Health Club = Health Aware & Health Guidance Not all customers who are Betty, Tina, Charlotte or Bob will fit within the 8-way segments as displayed on this chart. The 8-way segments cut across all these customer groups
15 Purchasing based segment: Health Guidance Need help & advice to make best health product decisions Attitudes to life. I am not as young as I used to be, so taking care of myself is a big part of my life. I really want to enjoy my life as much as possible now and do the things I want to. I prefer things that are made well compared with things that look good. Attitudes to health & beauty. Overall description Buying products that help me feel healthier is really important to me these days, as I want to make the most of life. I am less concerned with my appearance, and when I go shopping I look more for good value and often a bit of friendly advice too. Making sure I am healthy is completely my main focus now, I am not really that bothered with how I look, as long as I am presentable. Attitudes to shopping. I like to shop where the staff are on hand to answer any questions I might have, as I often need guidance. I will go back to the same shop time and again if it can provide good personal service.
16 Purchasing based segment: Busy & Beautiful Rewarding their hard work with treats & looking good Attitudes to life. I lead a busy life which I really enjoy balancing a career with making the most of my time out of work. I often feel I deserve to treat myself, and when I look good I feel good, as I feel how others perceive me is really important. Overall description I lead a busy lifestyle but try to balance having a successful career with treating myself and looking good. I like people to notice how I look, and enjoy buying beauty products and shopping generally, and am happy to pay more for the best quality products. Attitudes to health & beauty. I like to look good at all times both in and out of work. I like people to notice my look, and I use a wide range of beauty products to get the look I want which can vary on different occasions depending on what I am doing. Attitudes to shopping. I enjoy shopping, as when I shop it is usually for my self. When I have time to browse, I like to try new products and brands to see if any work better than what I am currently using.
17 Segmentation framework All Advantage Card Charlotte Tina Betty Bob Cosmopolitan Busy & Beautiful Young Family Family Brand Classic Beauty Health Guidance Health Aware Grab & Go Individual Individual Individual purchase history is used to develop communications including kiosk offers and coupons in statement mailings Customers increasingly expect personalised content
18 Segmentation itself won t help the business: In order for the segmentation to be a success: Understand the Segments Communicate to the Business Develop Segment Strategies Implementation and management Measure and Review
19 So how are the Segments used? Strategy - Reporting of impacts on customers, value, profitability Marketing - Development of effective campaign strategy Communication Plan Brand Strategy Category Plan Category Strategy Customer segmentation Who What spend How much (value) Where Mission (how) Comm n Strategy Communication Strategy People Strategy Customer Strategy Brand/Product Strategy Format Strategy Property Strategy
20 So how are the Segments used? Strategy - Reporting of impacts on customers, value, profitability Marketing - Development of effective campaign strategy Loyalty - Customer development and retention I left my paper coupons at home when I went to Boots, so couldn t use them. Luckily, I just popped my card in the kiosk, and was able to print them off again, so it wasn t a wasted journey. Boots has just ed me to ask how I d like to get my communications. I like to do my bit for the environment, so I ve opted to get as much as possible by . My daughter receives offers that are different to mine, but they are always for the things we are interested in Living such a busy life, I d forgotten about the coupons Boots sent me. Luckily, they sent me a gentle reminder to my , and I managed to find the coupons and use them just in time! I researched the digital camera market on boots.com the other day, and was pleasantly surprised to receive a generous offer through the post a few days later for exactly the model I m interested in. So I bought the camera from Boots. I like getting the odd text message from Boots, because they are always for things that I want. Yesterday, they told me about a special offer in my local store, so I went in and snapped one up.
21 So how are the Segments used? Strategy - Reporting of impacts on customers, value, profitability Marketing - Development of effective campaign strategy Loyalty - Customer development and retention R & D - identifying customer needs for NPD Category - planning, pricing, promotions and ranging, supplier engagement The right information, to the right people, at the right time, in the right format, and make sure that it is used
22 Customer Boots Any Questions? Ian Symis Senior Insights Manager
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