Inspiring your customers to engage with your brand Dominic Panetta Senior Manager - Marketing
Australian brand Retail franchise system Franchising since 1997
~60 stores (Aust) International presence Storage & organisational products
Key Brand Strategies
BRAND ESSENCE Organisation
VISION To be the clever place to organise any space
POSITIONING • Upper market • Specialist • Premium/Quality • Customer service
Core Target
Female (80%+) 30-50 yrs (60%) Married / De-facto (80%) Live in a house (80%)
Have young children at home ‘Chief Purchasing Officer’ Her money: 70% working (FT or PT) Online is her primary information portal
Creating
Engagement
2009: What do we REALLY know about our customers? What they spend on average? / For how long? How to get them to spend
more?
How regularly they shop with you? How to get them to come back more
regularly? What proportion of your customers are repeat? What products they are most interested in? Why a customer stops shopping with you? What is a loyal customer worth to you over time?
Inspirations Reward Program Why? How? Barriers Objectives Launch Current Status Influencing customers Learnings
Why a Reward Program?  Research confirms that successful programs have evolved from cost centres into key profit drivers, and provide a key competitive advantage for brands.
 Loyalty programs are a real business imperative for driving brand loyalty.  Consumers saying they are more active and engaged in a brand with a loyalty program.
For Love or Money 2015. Directivity and Citrus
Our customers wanted a reward program
46% of customers want HSW to introduce a loyalty program*
* 2009, n5,000 - existing e-newsletter recipients + focus groups
Move from mass marketing to targeted marketing
BIG data Understand our customer's buying behaviours to tailor our future marketing activity.
How was Inspirations developed? eNewsletter survey (existing customers) Focus groups (existing & non-existing customers) Store owners Outcomes: Keep it simple No points
Overcoming barriers to success
Overcoming barriers Budget
Expertise: - Internal staff - External partners
CRM System
Franchisee acceptance & commitment
Store staff training
Store Compliance
Objectives Attract NEW customers
Retain our best customers
Efficient & effective marketing communications facility
Increase their Lifetime Value
Positive word-of-mouth
Member Benefits
Free to join No Cards / No points $10 ‘Welcome’ Voucher $10 ‘Reward’ Voucher for every $200 spent Birthday Voucher VIP Shopping Events Member-only Competitions Product reviews Workshops
Inspirations: Current Status* Launched
October 2010
Total Members
524,370 (85%+ Female)
– ‘Activated’ Members
78% = 410,020 Members
– Non ‘Activated’ Members
22% = 114,350 Members
Registrations
~9,000 / mth (5% via online)
Avg visitation
5.5x PA (4x non members)
% of Total Turnover
~45%
*At end Feb 2016
Inspirations: Current Status*  Average Member transaction value
Non Member
$58
Member
$76
 Voucher redemption rate ~35% *At end Jan 2016. 1. Net value, after voucher.
With Voucher
$831
Influencing (inspiring) customers
Inspirations website
Interactions (last 12 months)
12 million eDMs 11,000 Help Desk interactions AMP Capital Shopping Centres - Recommended Retail Practice Report (2014): “79% of Australians say email contact is the best form of communication from retailers.�
350,000 1.2 million page views
eDM Results Average open rate =
33% - 35% – Industry avg = 25%
Why? Inspiring images / solutions
Member offers Relevant content
Member Offers +300% Quantity sold*
* v prior like-period
Inspirations Double Rewards 3-4x per year – Tactical timing
> traffic / sales Double the purchase value Earn a Reward Voucher faster
Double Rewards - National Sales results FEB 2015
APRIL 2015
+30% JUNE 2015
* Member sales v previous week
Sales*
OCT 2015
Content marketing - Blog  Inspiration / How to / Expert advice
Content marketing
VIP Shopping Events Local Area Marketing initiative Slow start, now a major activity Special Occasions – Christmas / Mother’s Day / Store Birthday
Results (Christmas 2015): 42 stores participated >1,200 members attended >$75,000 incremental sales
Local eDMs
Local Area Marketing – eDM Case Study
8-week eDM program – Product of the Week
Local Area Marketing – eDM Case Study $1,600
$1,400
>$11,000 incremental sales
$1,200
$1,000
eDM1 eDM2 eDM3
$800
eDM4 eDM5
$600
eDM6 eDM7 eDM8
$400
$200
$0 Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Results: ~100% sales increase* * v prior like-period
Mobile Marketing
SMS Marketing Late 2012: Introduced SMS ‘reminders’:
Registration Activation Voucher expiry Happy Birthday ($10 Voucher)
SMS Marketing – the value of influence Avg number of vouchers issued
26,000*
Avg Voucher Redemption rate
~40%*
Avg Sale with Voucher = $75 @ 40%
$780,000
September 2014
Saved: ~$1,200 Avg voucher redemptions declined >1,000
Lost revenue ~$75,000
* Jan – Aug, 2014
Surprise and Delight
Member Lifecycle strategy Targets: ‘Super Members’ (T1 & T2) / ‘Lapsed Members’ (T4)
Objectives: – Help retain our very best customers (recognise and reward) – Win-back ‘lapsed’ customers – Drive incremental sales Mthly reengagement
Annual ‘surprise’ engagement
T4 ‘Lapsed’ Members
T1 ‘Super’ Members
T2 ‘Best’ Members
Voucher value
$10 voucher
$20 voucher
$10 voucher
When sent
Monthly
Sporadically
Sporadically
Validity
1 month
1 month
1 month
Min Spend
$30
None
$30
Member Lifecycle Strategy ~1% ~1%
Super Members (T1) Howards Lovers
(T2)
~75%
~23%
~$26k ~$18k
Core (T3) – no additional reminder activity
Lapsed Members (T4) Non-activated
~$90k JulOct
NEW
Member Rewards
3rd Party Member Rewards (FY15 initiative) Objectives Refresh the Inspirations program
Attract new Members Engage Existing Members and HSW Store staff Drive sales via additional rewards (other than HSW Vouchers)
3rd Party Member Rewards 1
Bonus Reward
2
Member-get-Member
3
Surprise and Delight (best Members)
3rd Party Member Rewards 1
Bonus Reward
Objectives: – Upsell opportunity the existing $70/$80/$90 shoppers – Attract new Member registrations
Incentive: Spend $100 / Receive a bonus reward – Reward choices: Movies passes / Family Day out / Sports lessons
Occasions: 3x during FY15 Duration: 1 month each (2mth voucher validity & multiple usage)
3rd Party Member Rewards 2
Member-get-Member
Objectives: Encourage NEW shoppers to register / increase Membership numbers Incentive: Existing Members invite 2 friends to register. All 3 receive a choice of a Beauty Gift Voucher or Golf Voucher Duration: Monthly ongoing
3rd Party Member Rewards 3
Surprise and Delight our very best Members
Objective: Pamper our Top 1,000 Members – Brand Ambassadors / create positive word-of-mouth
Incentive: Top 1,000 Members receive a personal phone call on their Birthday and offered a choice of: - $30 Beauty pamper gift voucher - $30 Inspirations Voucher
3rd Party Member Rewards - Results 1
Bonus Reward - did not work
2
Member-get-Member - did not work
3
Surprise and Delight (best Members) – very well received
What’s
Next?
FY17 SMS Marketing  SMS or eMail notification? (linked to landing page)  Member Survey
Member Offers
Instant Voucher redemption
IT / Network / CRM upgrades to allow realtime voucher issuance & redemption
Tiered Membership?
Lessons Learned KIS: Keep it Simple – Registration requirements / Points / Rules
Financial Liability – points-based / liable until expiry
CRM software – commitment
Constant development required – Not ‘set and forget’
Trial & Error Persist encouraging store participation
Award Winning Program  Australian Marketing Institute 2013 Award for Marketing Excellence: Loyalty Programs
In the News Marketing Magazine Experian Case Study Inside Retail
Thank you