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Wanting to free itself from typical retailers dependence on End-of-Season Sales (EOSS) to meet revenue targets, Peter
England worked with Capillary to generate more business from its loyal customer base during lean and pre-sale months.
Focusing on the presale month of June, the team structured and deployed a Campaign Carnival, reactivating lapsed customers,
driving new loyalty registrations and adding double digit sales in June. The Peter England brand now witnesses a massive 69%
ROI contribution from its non-sale months.
Industry
: Mens apparels
Solution
BUSINESS OBJECTIVE
Many retail verticals typically undertake two month-long sale periods in July and
December where mass offers and high discounting drive sales but lead to significant
margin erosion. Peter England desired to engage its customers better to improve the
top-line contributions of non- and pre-sale months and reduce its dependency on
EOSS altogether. For example, from May to June, the brand had witnessed double
digit sales dips in 2010 and 2011. To minimize pre-sale slumps, Peter England
wanted to engage its customers with preferred offers, exclusive rewards and
customized brand experiences.
WHY CAPILLARY?
The focus of our June Campaign Carnival program is personalized one-to-one
engagement with loyal customers to reinforce brand loyalty and drive
incremental store sales in a low-business season. Capillary has been our
loyalty partner for many years and understands our customers behaviors
and purchase patterns really well. At the core of our marketing strategy, we
want to become independent of sale months and are working with Capillary
to capitalize on behavioral trends and to forecast demand preferences in
order to build better customer experiences.
- Priyank Mod, Senior Marketing Manager
THE SOLUTION
Capillarys data-driven solution is designed to attract customers even in traditionally
weak months. It accomplishes this by leveraging Peter Englands strong customer
base and detailed customer profiles built with Capillarys InTouch retail CRM to
create over 30 customer micro-clusters based on similar purchase patterns, product
preferences, demographics and 15 other Key Performance Indicators (KPIs).
Capillarys Bespoke Analytics and granular insights make statistical modeling easier
and more precise with Q&A-driven analysis. Peter Englands June 2012 pre-EOSS
Campaign Carnival was structured as:
Personalized and Targeted Marketing Collect, integrate and analyze customer
demographics, profile and transaction data along with sales and product data and use
resulting rich customer views to build targeted marketing campaigns with dual
objectives of building brand loyalty and driving incremental store sales. By harnessing
the power of analytics and Big Data, the Peter England brand can now think like its
Capillary Technologies , 2013 All Rights Reserved
Campaign impact:
57% increase in ABV
26% spike in customer spends
15% jump in sales
Positive sales
increment
Double digit
sales dip
May
June
Year: 2010
Double digit
sales dip
May
June
Year: 2011
May
June
Year: 2012
Solution Facts
> Reduced overall marketing spend for lean-month
campaigns
> Dynamic vouchering system for instant in-store
cross- and up-sell
> Brand cross-pollination corporate tie-ups with
GE, HP, HCL, Freecharge & Spice Hotspot
> In-store campaign promotion by trained store
associates
> Store Locator service providing customers with
details of nearest stores
> Special offers to customers on anniversaries
and birthdays
Implementation
Live in 600+ stores from 2009
PEs core team : Marketing Head
Senior Marketing Manager
Head - Retail
June 2011
Sales
June 2012
customers and act on their buying preferences with relevant communications and
offers, optimizing its marketing expenditures. A social signup and registration system
enables customers to join the rewards program without signing-up in stores and to
receive personalized rewards for being brand ambassadors on Facebook.
Instant In-Store Engagement Peter England is using Capillarys Cloud Instant
Analytics/Instant Engagement technology to immediately cross- and up-sell
products of interest to specific customers. As soon as purchases or store walk-ins are
recorded, customers receive offers via text, email or through the stores sales
associate encouraging them to buy additional preferred products at one-time
discounts, driving additional same-visit sales, more transactions and higher
walk-in-to-transaction conversions.
Targeted Campaigns Peter Englands customer base is now segmented according
to demographics, purchase frequency/latency, lifetime value, average basket size and
over 15 other KPIs. Under the Campaign Carnival structure, the Capillary offer engine
has been used to build over 26 different campaigns mapped to customer segments
such as high loyal, value seekers, high spenders, lapsed, potential and many other
combination overlaps among the segments. While existing customer segments are
targeted with personalized rew`ards, new customers are targeted with more
aggressive offers to increase impulse buys and their chances of converting to
long-term brand loyalists.
BUSINESS BENEFITS
While Peter England experienced a characteristic double digit sales dip in June of
2011, the Campaign Carnival actually yielded a positive sales increase in June 2012.
More than a tenth of June 2012 sales came from customers tagged to Campaign
Carnival activations. More than 12,000 customers, who had not visited Peter England
stores between December 2011 and May 2012, came back into stores due to the June
2012 campaign with many continuing to return to stores in both July and August as
well. Peter Englands ratio of natural repeat to new transactions improved by over
70%, highlighting the power of using campaigns to reinforce customer loyalty. New
customer registrations jumped by 20%. The instant in-store engagement portion of
the Campaign Carnival generated a high 30% redemption rate and 5% additional sales
for the month.
Traditionally June is a low performing month compared to sale and festive months. With Summer-surprise, Capillary successfully reversed
this trend using their industry know-how and expertise. Summer Surprise was a campaign specially designed for pre-sale months by PE
and Capillary. Peter England is glad that its customers didnt have to wait for sale campaigns for shopping with us.
- Manish Singhai, Head - Retail
CLIENTS INCLUDE: PUMA | PIZZA HUT | UNITED COLORS OF BENETTON | CHICCO | NOKIA | JEAN CLAUDE BIGUINE
JACK WILLS | NIKE | MARKS & SPENCER | PETER ENGLAND
San Francisco | London | Beijing | Singapore | Johannesburg | Dubai | Bangalore | Delhi | Mumbai
Visit www.capillarytech.com for more details.
For queries and more information contact us at : info@capillarytech.com