galeria kaUFHoF in oUr CUstoMers’ sHoes...Overall, by using and embedding emnos segmentations in...
4
CLIENT INSIGHT GALERIA KAUFHOF IN OUR CUSTOMERS’ SHOES Customer segmentations form the basis for GALERIA Kaufhof marketing strategies GALERIA KAUFHOF With over 135 years in the depart- ment store business, GALERIA Kaufhof has a long heritage in anticipating and shaping shopping trends in Germany. 105 department stores in 80 cities now serve seven million PAYBACK customers on a daily basis. Quality, exclusivity and reliability combine with qualified and service oriented staff. Ever changing market developments and trends mean GALERIA Kaufhof has to realign and reassess its department stores again and again to remain the number one choice for shoppers – particularly as eCommerce and a Multichannel marketing approach continue to gain momentum. To lay the foundations for enhanced shopping experiences and future marketing strategies, the company was looking to more clearly understand its customers, their behaviour and their needs. “Who are our customers and what do they want?”, is how Marc Neurath, Head of CRM at GALERIA Kaufhof summarised the two key questions and the driving force behind the project with emnos. Really getting to know the customer As emnos empowers retailers and consumer businesses to distill customer data and turn it into tangible business growth, the project with GALERIA Kaufhof focused on extensive customer segmentations. Client Insight | GALERIA Kaufhof
Transcript of galeria kaUFHoF in oUr CUstoMers’ sHoes...Overall, by using and embedding emnos segmentations in...
Client insigHt
galeria kaUFHoFin oUr CUstoMers’ sHoes Customer segmentations form the basis for galeria kaufhof marketing strategies
galeria kaUFHoFWith over 135 years in the depart-ment store business, galeria kaufhof has a long heritage in anticipating and shaping shopping trends in germany. 105 department stores in 80 cities now serve seven million PaYBaCk customers on a daily basis. Quality, exclusivity and reliability combine with qualified and service oriented staff.
Ever changing market developments and trends mean GALERIA Kaufhof has to realign and reassess its department stores again and again to remain the number one choice for shoppers – particularly as eCommerce and a Multi channel marketing approach continue to gain momentum.
To lay the foundations for enhanced shopping experiences and future marketing strategies, the company was looking to more clearly understand its customers, their behaviour and their needs. “Who are our customers and what do they want?”, is how Marc Neurath, Head of CRM at GALERIA Kaufhof summarised the two key questions and the driving force behind the project with emnos.
Really getting to know the customerAs emnos empowers retailers and consumer businesses to distill customer data and turn it into tangible business growth, the project with GALERIA Kaufhof focused on extensive customer segmentations.
Client Insight | GALERIA Kaufhof
“To meet customer expectations, our department stores offer a carefully selected product range – from decorating equipment to damask tablecloths, trendy clothing and exclusive premium suits. Given this diverse product range, GALERIA Kaufhof customers show a heterogeneous shopping behaviour across categories and departments,” explained Marc Neurath.
“For example,” he continued, “some customers attach great importance to quality and brands when purchasing their own clothing but opt for lower budget products when choosing cooking equipment – and some customers are the complete opposite.” These disparate shopping habits are a challenge from a marketing and segmentation perspective and had to be taken into consideration in the segmentation process.
As emnos customer segmentations are based on factual product and basket data, the project started with a data audit. Two years of transactions, including PAYBACK loyalty card data and additional store, customer, product and hierarchy information, were analysed and aggregated to develop the customer segmentations.
In a step by step approach, emnos created three types of segmentation:
A so-called ‘need segmentation’ for each of the four GALERIA Kaufhof product categories (women, men, children and home) to understand more about product choice.
A ‘meta segmentation’ combining the four need segmentations and developed as a strategic umbrella.
The above were complemented with additional customer panel research to investigate, for example, the interest in eCommerce and the affinity to purchase online in the GALERIA Kaufhof webshop.
A third ‘mission segmentation’ was developed to reveal more about customer reasons to purchase. It is important to understand the missions in order to tap the full cross selling potential on the shelf, on the path to the desired product category and at the point of purchase.
“ Who are our customers and what do they want?”Marc Neurath
Data aUDit
Marketing Mix
Meta segMentation
CUstoMer Panel
Mission segMentation
neeD 1
neeD 2
neeD 3
neeD 4
neeD segMentation
2 Client Insight | GALERIA Kaufhof
Staying ahead of customer interestsemnos segmentations are based on customer shopping behaviour at the GALERIA Kaufhof department stores and profiled with socio-demographic data and market research. GALERIA Kaufhof relies on the web-based software solution, emnos Segmenter, to keep customer segmentations up-to-date and track behavioural changes and movement between the segments.
Marketing mix based on facts Based on the segmentation, GALERIA Kaufhof further enhanced the shopping experience in its department stores. “The segmentations were the basis for the marketing plan in 2013 and were also considered in the on- and offline marketing mix. Only when we understand our customers and their individual needs, can we create inspiring shopping experiences for everyone,” added Marc Neurath. “To keep us a step ahead in our mar-keting, we use emnos Segmenter.”
As eCommerce and Multichannel become more important, emnos segmentation results are not only used for traditional offline, but also online, direct marketing activities. They also give guidance on customer target groups and category management decisions.
To make it easy for the whole company to understand the identified customer segments, GALERIA Kaufhof built four dedicated “segment worlds” at its headquarters. Touring around the “segment worlds” helps personnel get a stronger grasp and understanding of the implications for their daily work. “The interest in these tours is overwhelming and each one is very well attended,” commented Marc Neurath.
Overall, by using and embedding emnos segmentations in day to day operations, GALERIA Kaufhof is able to base all its strategies and decisions on real facts and has started a continuing customer centric journey.
“ To keep us a step ahead in our marketing, we use emnos Segmenter.”Marc Neurath
Marc Neurath is Head of CRM at GALERIA Kaufhof
3
about emnosemnos is a pioneer in analysing customer data and interpreting what it reveals about customer behaviour. some of the world’s top retailers and suppliers choose emnos for its unmatched ability and expertise in mining and decoding billions of retail transactions and interactions. the insights revealed by this data impact marketing, merchandising, pricing and promotional decision-making on a daily basis and can be used to deliver tangible business growth. emnos services and solutions typically enable clients to realise a 4-6% revenue increase on turnover and over 2% margin growth.
operating throughout europe and in the Usa, emnos is part of loyalty Partner, a subsidiary of american express. to learn more about emnos and its unique offering of strategic planning, retail data analytics and insight solutions, visit www.emnos.com
our officesHeadquartersemnos GmbHTheresienhöhe 1280339 MünchenGermany
+49 89 [email protected]
Madridemnos Iberia S.L. Calle de María de Molina 37 28006 Madrid Spain
+34 91 510 74 [email protected]
Parisemnos SARL97 rue St Lazare75009 ParisFrance
+33 1730202 [email protected]
Chicagoemnos USA Corp. 181 W. Madison St. Suite 3715 Chicago IL 60602USA
+1 312 880 1336 [email protected]
Londonemnos UK Ltd. Avalon House72 Lower Mortlake RoadRichmond Surrey TW9 2JYUnited Kingdom
+44 208 614 [email protected]
Client Insight | GALERIA Kaufhof
