Date post: | 21-May-2015 |
Category: |
Business |
Upload: | kelvin-tai |
View: | 382 times |
Download: | 1 times |
In the world of Supply > Demand, how Retailer can drive the customer behavior
CERIDIAN STORED VALUE SOLUTION
Intelligent Retail Business Tranformation Kelvin Tai
Chapter 1 - Mission Statement
Enable Retail Business Transformation
2
“For Retailer Branding,product selling is equally importance with customer shopping experience. Retailer needs to interact with their customer intelligently and better shopping experience”
Chapter 2
Today Retailer Challenges
Chapter
Section 1 Today - SUMMARY
1. Increasing Operating Cost in China
2. Lack of Measurable Marketing Tools
3. Lack of cost effective tools to increase Actual Spending
4. Decrease of Customer Loyalty to the Brand
Today Retailer Challenges
4
P.S. Different Retailer would face different challenges, I am here to list out the common challenges
5
Today - Stock Turnover Challenge
“Increased Competition & Economic slow down caused the inventory pilling up”
Operation Cost Increase
Case Study
Interactive 2.1
1 2
6
Marketing Resource Misallocation
Lack of Measurable Tools
Interactive 2.2
1 2
Today - Unknown ROI of Marketing Campaign
“Lack of data available, It is more like relying on intuition feeling when doing budget and plan”
7
Proactive Targeting
Low Response rate for Voucher
Interactive 2.3
1 2
Customer Revisit
Need to Attract Customer Traffic
Interactive 2.4
1 2
Today - Myth of drive store traffic & conversion rate & Basket Value
“ Litte empirical evidence exists on the impact of traffic on store performance and the increase of basket”.
8
80/20 Rules still prevail
Next Generation
Interactive 2.5
1 2
Today - Myth of winning customer love
Many Retailer find their own loyalty card but
1. Hard to tell how success because lack of data tracking and analysis
2. Simply giving rewarding points or couponing
“ Without the business intelligent, you cannot shoot the Cupid’s arrow right to the customer heart.”
Section 2CREDIT CARD IS A POWERFUL TOOL
1. Branding & Loyalty
2. Profitable Product
3. Cost Effective Cross Selling tool
Lesson from Retail Banking
9
What does this mean to me? We are not the bank
We are not the bank, we sell the product
Retailer might think :
Every Bank will issue their Credit Card
Why Retailers are leveraging the Prepaid Card Solution to empower
Proactive and Accurate marketing with business intelligence
Measurable ROI to maximize the limited marketing budget
Lever to increase in sale and basket value
10
Eye ball catching card design with Brand logo attract the people to buy as gift to others
Retail Gift Card
Promotional Card vs Coupon the response rate is exceptional higher
Promotional Card
Loyalty Card is the powerful cross sale tool with business intelligence
Loyalty Card
With Prepaid Card, Retailer can do almost the same as what Retail Bank do...
Retailer Future
Interaction with you customer is the Key
Not Just ERP or other
No Customer = No Business
“ The financial performance of a retailer relates to its ability to attract traffic into its stores and convert the incoming traffic into sales profitably.”
12
Some Statistic from BCG report:1. The no of Middle Income level customer in China will grow
from 50,000,000 to 140,000,000 in 2020 but will more geo-graphically scattered.
2. 80/90 generation are the golden group, which have the great-est potential to spend more
3. In Major City, Female shows a strong growth on spending and expect to weight over Male in future; In Minor City, Male may still slightly over Female in Spending
4. Retailers need to have wider city/province coverage in 2020 but their preference and needs are widely different
Chinese Customer
Section 1
2011 Q4 AC Nelson reported the index of consumer sentiment in China is rising to 108 points, 19 points higher than other countries
Lorem Ipsum dolor amet, consectetur
13
• Leverage technology to understand your customer needs and proactive marketing with business intelligent
• Improve the payment and shopping experience
• Multi-Channel Sales and Marketing to let your customer having unity experience
What do these meant to Retailer?
In the 40/50’s, the chinese people need to fight for buying goods but it is no long existed nowadays
Image 3.1
Nowadays, Chinese people have too many choice to choose from
Image 3.2
14
Learnt from Retail Banking Please refer to Chapter 2, Section 2
“ Retailer should treat their own ‘Merchant Label Card’ as one of their core business strategy.
Retailer Future = Info Science?
Section 2
Different type of Prepaid card have their own purpose, but ultimately, it is to increase the profitability.
Image 3.3 Merchant Label Card
15
LIFT AMOUNT
Basket Value
Interactive 3.1 Lift is the lever of boosting sales
Value Proposition:
• Being the Lever to “Lift” of incremental sales
• Merchant “Cash Machine”
• Sales Data Tracking
$0
$50,000,000
$100,000,000
$150,000,000
20092010
Gift Card is a over RMB$1,000,000,000 business
Germany US
Case Study - One of the famous Fashion & Apparels retailers
Interest Income
Cash is King
Interactive 3.2 Cash is King
16
Value Proposition
• Proven tool for store traffic driver and sale conversion
• Being the Lever to “Lift” of incremental sales
LIFT is exceptional
Driver for Store Traffic
Interactive 3.3 Driver for Grand Opening
Image 3.4 Promotion Card drive exceptional sales performance over coupon
Case Study : - One of the famous Fashion & Apparels retailers
Exceptional Store Traffic
Driver for New Product Sales
Interactive 3.4 Driver for New Product Launch
17
Value Proposition
• Enable Accurate Target marketing
• Drive for customer behavior
• Better payment experience
Proactive Target Marketing
Drive Customer Behavior
Interactive 3.5 Drive for sales by proactively demand creation
Case Study - One of Specialty Retail (e-card only)
Client ResultClient Result
Redemption Rate 30%
LIFT Ratio 642%
Increase in Sales US$30,000,000
No of Return Visit > 30,000
Analysis of Customer
Return Visit
Interactive 3.6 Data Mining of Customer Behavior
Chapter 4
About Ceridian Stored Value Solution
Section 1
ACHIEVEMENT SUMMARY
1. Global Provider: 650+ clients across 45 countries
2. 550 MM+ card production ; 1.2 Billion transaction processed
3. More Top 100 retailers than anyone else
World Leading Prepaid Solution
19
Ceridian SVS has been the pioneer since 1992 in providing prepaid solution service for 650+ customer worldwide in which 6 of top 10 retailers in USA
“ We are a World Leading Prepaid solution service company, serving different customers in different retail industry all over the world”
20+ experience in Prepaid Solution
20
Image 4.1 SVS clients are all over the world and in different retail industry
About Arthor : Kelvin Tai
xxi
“ Seasoned IT/Business consultant on Financial and Retail industry, specializing on payment solution”
xxii