Smart marketingInformation & communication @ makro

Hij kent zijn (goede) klanten

Hij kan het goed uitleggen

Hij is goed georganiseerd

information

communication

organisation

Wants & Needs

products

Buying behaviour

relation

life

FRAT

decision drivers

one to one

moment

mood

objective

lean

flexibleefficient

MAKRO Part of METRO group (MediaMarkt, Saturn, Galeria Inno, ...)

MAKRO : 6 outlets in BelgiumWorldwide 600 outlets in 32 countries

“For professional customers & end consumers”

Collect Data

AnalyseData

UseData

COLLECT ANALYSE USE

Signaletic : Customer X, lives in Antwerp. He belongs to the branch Horeca. He has a restaurant, Belgian kitchen with menu’s between 25€ and 45€.

Invoices : Customer X visits our store in Deurne 1x a week and spents on average 424€. He regularly buys meat, fish, fruits & vegetables and occasionaly he buys wine.

The customer knowledge approachcollect

IDENTIFY

DIFFERENTIATE

Customers Segmentation Understanding

Segmentation > understandinganalyse

Customer, not buying

New prospects

First time buying

Growing versus Declining | product type

HORECA TRADERSCOMPAGNY

or OFFICES

END CONSUMERS

NEW CUSTOMERS

LOST CUSTOMERS

EXISTING CUSTOMERS

REGULAR

IRREGULAR

ACQUISITION

UPSELLING

FREQUENCY

REACTIVATION

useThe customer knowledge approach

Strategic flow

IDENTIFY

DIFFERENTIATE

CUSTOMIZE

INTERACT

Set up / Cleansing / enrichment / updates > segmentation

Brand essence / audience messaging / compelling content > needs & objectives

Action flows / connectivity / closed the loop / testing / metrics > ROI

Proces driven relationship communication

About MAKRO folder

Regular circulation coverage of Makro Folder based on date last visit– Variable selection with an average of 4 folders, 8 weeks after date last visit

– Standard selection of Horeca and Trader customers and

– Standard selection of new customers for 1 month

Mail approach and model inefficient for sporadic customers; no frequency builder

Low frequency customers receive 4 folders right after their visit, whereas they don’t visit us …

… but no folder activates them when they come back.

visit visit visit

Circulation 2009

Optimization of circulation– Maintain approach for Horeca and Trader customers

– Integrate new customers for longer period

– Normal circulation for regular customers > 6 visits last 12m

– Target customers with increasing frequency =<6 visits last 12m but >= 2 visits last 2m

– Target low frequent customers before probable visit• Eg : Irregular customer with an visit interval of 1 visit every 3 months will

receive folder at 1,5 months after last visits

Basket or frequency approach by personalized coversheet

Circulation 2010

Cover Sheet

Basket– Objective: increase basket by offering each folder 1 promotion

on products/categories which the customer does not buy

• Costs discount only if extra sales is generated

• Each customer is screened on the basis of 2 to 5 offers with a postulated priority. Not buying = selection If buying all products (top customer) = generic promotion

Frequency– Objective: increase frequency by offering 1 promotion

on basket or category

• Costs discount only if extra visit and sales is generated Promotion in % on total basket: e.g. -10% on basket or Promotion in € on min. value in category:

e.g. -10€ / 100€ non food

Cover Sheet

Detailed metrics and learnings used in test to increase frequency

Testing

Test if we could get a higher activation by a more selective approach

Personalised mass communication (folder & coversheet)

VERSUS

Multiple personalised communication (DM / postcard / folder with or without coversheet)

TestingSummer mailing - coversheetWith and without promo

TestingSummer maling - postcardWith and without promo

TestingBack to school mailing – coversheetWith and without promo

TestingBack to school mailing – postcardWith and without promo

Testing

Methodology

We look at the respons but also ticket size (food & non-food)

Ticket size Nonfood can be an interesting trigger.

We do the test 3 times = 3 folder periods (F16, F17 & F18)

Then we can make clear conclusions on

- target group

- triggers

- potential live time value

Testing

KPI’s

The results are compared on the basis of:

I. Number of respons and respons %

II. Total sales, sales Nonfood, sales Food and AVG ticket size per respons

III. Number of visits and AVG ticker size per visit

Respons = customers who have received a coversheet, postcard or folder and that have visited Makro in the folder period

Critical Success Factors

Information about individual shopping pattern actively used in communication

thanks