Loyalty 2 - HCL Technologies · 2015-02-06 · 6 Loyalty 2.0 Creating a new conversation with...

Loyalty 2.0Creating a new conversation with customers

A Retail Executive Briefing Paper to stimulate debate and feedback

A Special Retail Industries Paper

2

Contents

Introduction Page 3

Moving Targets Page 4

Changing Perspectives Page 7

New Demands Page 9

Encountering Barriers Page 11

New Directions Page 13

SAP Solutions Page 14

Loyalty 2.0 Creating a new conversation with customers

“A loyalty programme is most effective when it is done in the context of a

full-blown customer strategy. It is about asking yourself how you will do things

differently, including segmenting the customer differently. In the past, retailers

were vendor-driven, with product chosen prices set and stores laid out from a

supplier-centric point of view. Now retailers must think how they turn their business

upside down and ask: what does the customer want me to present to them, and

how? It is a fundamental shift, but if you get this right you will then arrange stores

differently, promote products differently, position your business differently.

”Alison Lambert, HCL

Introduction

To the 1940s’ shopkeeper, who had a personal relationship with most of his or

her regular customers and was able to greet them on arrival and know their

favourite products, the concept of needing a bridge to enable the identification

and track the needs and likes of a customer would be utterly alien. To today’s

retail manager in any function at head office, who has no such direct face-to-face

relationship with customers themselves, loyalty schemes seem an essential. How

else would you be able to gather information on customers and market to them?

Loyalty schemes grew up, in many ways, to replace the lost art of direct

conversation with customers. Naturally, there were other drivers too. The first

concepts are sometimes described as ‘points mean prizes’ because early

schemes, such as Green Shield stamps, were fundamentally focused on

driving individual product-buying behaviours in return for a small but cumulative

reward. Although later schemes, even some iconic ones which are today held

up as exemplars of excellence, were far more sophisticated in delivery, they

essentially didn’t move far beyond this concept for many years.

Today, a new evolutionary shift is required which needs more fundamental

changes of perspective and has implications for organisational structures,

processes and, most importantly, thinking.

The drivers are both economic and competitive, as a large number of retailers

vie for a share of straitened consumer budgets for everything from grocery

essentials to apparel to leisure purchases. They are surrounded by retailers and

service providers who are busy creating new retail niches and online-centric

retail concepts which can potentially go from being amusing irritants to serious

competition quite fast thanks to the power of the online consumer. They must

even compete with the giants of search, as shopping comparisons are brought

front and centre of search results in an age when the internet is the first port of

call for a consumer considering a purchase.

This paper considers how the concept of ‘Loyalty’ itself is changing in a retail

world which has changed beyond recognition and in a period of unprecedented

competition for all types of consumer brands. It aims to stimulate thought and

discussion about how brands can embrace new ideas to engage and build

enduring relationships with customers who are becoming more powerful,

more cynical, more analytical about purchasing and more complex in their

buying behaviour.


3

4

Moving Targets

The customer is changing, bringing wide implications for how companies engage

with them. Loyalty activities, which are fundamentally focused on and around

the customer, are inevitably directly impacted, and it is simply not as easy to

build and keep faith with customers as it was in the past.

z The expectations of the consumer are rising inexorably and irrevocably

As the internet penetrated homes in the ’90s it generated a tingling sense of

excitement and potential for many people. Retailers responded and created

online shops that could be at customers’ fingertips 24 hours a day, generating

a feeling of closeness. A sense of immediacy started to grow and, as internet

speeds increased with broadband, so did the expectation to have faster

information and response times. Consumers’ loyalty began to be eroded by the

growing number of alternatives opening up to them; they started to realise they

had choice, which meant they could now exert influence via the choices they

made. The web rapidly became the place to pre-research every purchase,

compare and evaluate products and seek out great price deals on similar products.

z Social immersion is changing the power balance

As the social world enveloped and engaged the consumer, a sense of personal

power started to grow. Today consumers are demonstrably able to influence

brands, display instant dissatisfaction or pleasure, and broadcast that feeling,

firstly to their social groups and increasingly even further, to millions thanks to

platforms like Twitter. As a result, consumers are being driven towards purchases

by group dynamics and trending brands, not by loyalty. The shopping savvy that

the internet brought is also played out on social platforms as consumers swap

knowledge of lowest price deals and opportunities.

z Smart devices have handed consumers new capabilities

The introduction and then explosion of smart-phones and tablet devices has

meant that consumers can research, compare and shop any time and any place.

They are rapidly becoming a primary rather than secondary shopping platform.

Research by Affiliate Window found that iPad conversion rates in late 2011 were

3.82% compared to 1.9% on desktop PCs1. Research by Adobe shows that tablet

visitors to e-commerce sites spend 20% more than desktop shoppers and twice

as much as those using smart-phones2. Most consumer-facing brands have

responded in some way, but are they doing so enough? Only 10% of the top

100 online brands have tablet-optimised websites, according to a 2012 survey,

while 20% still have no mobile access3. UK consumers have clearly embraced

the multi-channel world, with retailer apps, social media and tablets joining

websites, catalogues and bricks and mortar stores4. The smart-phone has brought

a further phenomenon, as consumers are able to walk into a store and compare

products and pricing in real-time, neutralising much of the power of traditional

in-store techniques of merchandising and shelf promotion.


1. Affiliate Window and buyat Mobile Commerce Report 20112. Adobe: ‘The Impact of Tablet Visitors on Retail Websites’3. www.somoagency.com4. www.shoppercentric.com release: ‘Shopping in a Multi-channel World’

z New multi-channel behaviours are emerging

In a global survey in late 2011, PwC5 defined several emerging behaviour patterns

which are variants of multi-channel shopping:

• Spreading shopping across multiple channels. 86% were already habitually

using two channels to shop, while 25% were using four or five

• Interacting with a single retailer across more than one channel. 76% of UK

respondents have done this, the highest level in any market surveyed

• Making a single purchase using a range of channels. Over 80% of

respondents researched electronics, computers, books, music and movies

first, while over 60% researched online around apparel and footwear, toys

and beauty products.

z Basic loyalty programmes are not the differentiators they once were

Almost all major retailers are fielding a scheme, and the internet has democratised

the capability making it quite easy for smaller retailers and brands to establish

schemes, to the point that wallets and handbags are bursting with cards.

Estimates vary: according to Standard Life’s 2012 research 47% of the British

population use loyalty cards6 while an Ipsos MORI poll put the figure at 68%,

with supermarket scheme membership leading the way7. At the same time, the

most established loyalty models such as those in airline and grocery industries

are struggling to differentiate from each other.

z New loyalty industry dynamics are emerging

Loyalty concepts have spread to new channels, with companies like smart-phone

loyalty card Punchd, acquired in 2011 to form part of Google Wallet, and a similar

newcomer, Punchcard, which launched only in February 2012 and was already

live in 15 million US locations two months later. Group purchasing phenomena

such as Groupon have created new platforms on which people are more loyal

to deal-broking intermediaries than to the end retailer of goods or services.

z The consumer is not a passive player in this game any more

Consumers have realised they have power, both in generally and as loyalty

scheme members; and online advice portals are advising them how to work

loyalty schemes to their advantage. They are not so much ‘fatigued’ by loyalty,

but simply have too many memberships of schemes which deliver them little

they perceive to be of value. Instead, they want to be recognised, and want

brands to work harder for them. A survey of UK consumers in 2011 indicated

that 65% want more personalised and real-time loyalty actions from retailers,

including real-time offers sent to the mobile while shopping8.


5

“Customers increasingly want to

be in control of when they redeem

and what they do in-store too. They

want to manage things themselves,

when and how it suits them and don’t

want Loyalty things done ‘to’ them.

It’s a big shift, especially for those

companies still stuck on paper

vouchers, because customers are

rapidly losing interest. It can even

be a disincentive if you send them

vouchers if they would prefer e-

vouchers via their mobile. Customers

want more say, more things which

are specific and relevant to them and

less marketing clutter - otherwise

the loyalty scheme is a nuisance,

rather than a value-add.


5. PwC: ‘Customers Take Control’ 2011 Report6. Standard Life: Report 20127. Retail Times: ‘Supermarkets have highest loyalty scheme take up in UK’ 2011 Report8. Steria: ‘Why are retailers failing to capitalise on new channels to market?’ 2011

6


z The recession isn’t impeding this change

Despite the difficult time, consumer adoption of smart technology and social

media is accelerating. Figures vary: the most recent OfCom report suggests that

27% of UK adults and 47% of teenagers own a smart-phone, while a recent

comScore survey suggesting 42% average penetration in the EU9 as a whole.

Social media statistics continue to startle, with Facebook announcing in mid-

2011 that it had 30 million UK accounts covering half the population, while UK

Twitter users were estimated in early 2012 at 23.8 million10. All such figures are,

almost certainly, out of date as soon as they are published.

All of these points create an overwhelming and irresistible force upon brands.

They need to recognise the fundamental difference this force will make to how

they manage their relationships and work to grow customer lifetime values. It is

more than simply a technical challenge of how to manage multi-channel, because

the link between online and offline behaviour is undeniable and complex; it has

increased the pressure for retailers to learn how to link the offline and online

worlds to understand how to attract and keep customers.

It fits right alongside other macro-level imperatives to do more with less – acquiring

customers more cleverly at lower costs, keeping every customer possible

and boosting their relationship with the brand. Refocusing around this newly

empowered customer is going to be a key to success for every company that

wants to sell to them.

9. comScore: ‘Smartphone penetration reaches 42%’ 2011 Report10. www.semiocast.com: ‘Top 20 countries in terms of Twitter accounts’


7

Changing Perspectives

There is both opportunity and challenge in how companies manage their Loyalty

activities in response to these waves of change, and there are both practical

and philosophical implications:

z Loyalty thinking must move to multiple channels

Loyalty management started off in many cases with single-channel thinking, as

mechanisms to drive bricks and mortar footfall. Of course today we are in a multi-

channel world and loyalty thinking and management has expanded, firstly from

store to online, and now to mobile. The integration of channels is far from

complete for most brands, however, and their loyalty schemes are lagging too.

Going forward, companies must manage their brand and build customer loyalty

not just on multiple platforms individually but in a truly complete, immersive,

way. Multi-channel increasingly becomes omni-channel, not only as customers

choose how to engage anywhere they choose, but as they are exposed to brands

through indirect, social and shared experiences as well as their individual

shopping activities.

z From the pursuit of basic customer data to understanding their lives

In an online and mobile buying world which is already enabled by supporting

payment models which depend on identification, that basic data no longer has

to be teased out of shoppers but is part of the first and every transaction. The

emphasis, and technical challenge, becomes to collect, understand and make

accessible other information which is far more valuable, and often less structured.

Those retailers which do not operate online, or do not have loyalty schemes to

generate useful and useable data, are facing an even greater challenge.

z From simple buying behaviour to complex emotional change

Older loyalty schemes were aimed at changing simple behaviours such as a

decision to step into one store rather than another. Now, it must change to

creating real relationships based on positive emotions which make the customer

want to enter a particular store or interact with a particular brand. This can only

come about through confidence and anticipation on the part of the customer that

there will be a really easy, positive and enjoyable interaction involved, i.e. that

the customer experience will be better than with an alternative choice of retailer.

z Becoming one of a few trusted favourites is now the goal

Despite changes in channel behaviour, online shoppers still identify favourites.

PwC research11 indicated that 86% of its respondents shopped across multiple

channels with five retailers or fewer, and in the UK the average number of regular

stores was 3.2. Retailers must work hard to stay in that ‘trusted favourites’ zone

and offer what customers seek across their chosen channels; this is increasingly

for things to be easy, convenient and seamless. The same research indicated that

24/7 access to shopping is the main influencer for 28% of online shoppers, who

also seek better offers, the ability to compare products and, find exclusives.

11. PwC: ‘Customers Take Control’ 2011 Report

“The currency of rewards is

changing. It’s all part of the

convergence of loyalty and

promotions, and becoming much

less about gaining a point for every

ten pounds I spend and much more

about how you will make it easier for

me to shop and buy what I want, and

the fact that, based on what you know

about me, you will offer me highly

relevant deals.

”David Oliver, PwC

8


z Exchange real value between the customer and the brand

It cannot simply be a ‘tit-for-tat’ exchange of discount or points for purchase but

must be of more substantive, relevant and meaningful value. What constitutes

value itself may also need re-evaluation, as monetary value is not the only choice:

increasingly it is about intangibles such as the associated experience or the

customer simply feeling valued and taken care of. To complicate things further,

that feeling is highly personal to each individual. This also relates to the way in

which customers will need to be segmented and targeted to deliver the most

highly relevant promotions and propositions. Furthermore, the propositions will

have to be based on each segment’s defined perception of value.

z From short-term to long-term thinking

It is no longer about managing loyalty around products that created product and

price-led orientation in early schemes, but around the long-term expectations and

needs of customers. Old loyalty thinking often focused primarily on generating

the next interaction, but it is now the long-term future relationship, potential

frequency and value of future interactions combined with a person’s sphere of

influence that are considered. The key metrics are not just revenue today, but

total customer lifetime value.

z Loyalty schemes’ one-to-one relationship is no longer the only goal

Increasingly brands must also think one-to-many, as customers are identified

as part of social groups by their affiliations and likes – this has more than one

implication. In part, brands must consider how the feelings of the customer turn

into advocacy when positive, and damaging public exposure if negative. Brands

need to get smarter at making lateral analyses about customers based on their

social groupings and behaviours, since this offers a rich ground for cross-selling.

z Brand experience can today almost be thought of as a viral force

All the positive experiences that make up the Loyalty experience of one customer

can be transmitted to and ‘caught’ by others as they advocate their experience,

publish reviews and ratings, and even actively recruit friends and contacts to share

their great find. Marketplace sites like eBay and Amazon started the trend for

star ratings and have helped build expectation that only a 99% positive rating

is good enough. The faith in a brand can be destroyed in an instant on a social

platform like Facebook, not just for one person but for a large group.

z Creating loyalty communities, united by shared needs and likes

Building social media into loyalty has huge potential, as groups with clear shared

buying needs use social media to connect up – such as young mothers. This

links to smarter segmentation thinking as well as social CRM – for example,

segments of the population, such as senior citizens, are united by their time to

shop during the day and differentiated from working types by that, as one smart

home improvement retailer spotted when it created a ‘silver’ loyalty card which

rewarded this exact behaviour.

“Younger consumers are very

open to trading information about

themselves in return for some kind of

value. That might be more targeted

promotions. People will make the

trade-off they feel is right for them,

and the digital native generation is

much less concerned about personal

privacy. If once a barrier to disclosing,

that barrier is coming down.



9

All these dynamics put new demands on information systems to produce faster,

better, deeper data insights to deliver all manner of data and information in

real-time so that it can be actively put to work to improve and enhance the

customer experience and generate real sales advantages for the business.

To fully support the new, customer-centric and data-driven world of retail and

commerce, IT systems must support a range of different new needs, all of which

support the customer:

z Create better customer knowledge and insight

The pursuit of the single, 360-degree customer view continues. Creating

integrated views that bring together online and offline interactions remains a

challenge, as brands seek to leverage the ability of the web to collect journeys

as well as actions and connect that data with what happens in the real world.

Tracking customers across channels that are ever-increasing in number is an

imperative and an enormous opportunity to build views of customers that have

literally never been seen before.

z Manage and make customer information more accessible

There is increasing recognition that a consistent application and data infrastructure

is required to access customer data. This isn’t just a challenge for the IT

department. It’s something that needs to be addressed by all parts of the

enterprise that depend on that vital access to information to deliver those

customer experiences at any touch-point. To meet customer expectations

brands must bring together customer information from web, mobile, store or

anywhere else and deliver it to the person who needs it, when they need it, and

wherever they need it to manage customer relationships and interactions better.

z Deliver a consistent, quality customer experience

The customer must rely on information delivered consistently regardless of the

channel they have chosen, since they may interact on numerous channels as part

of a single purchasing journey. This puts demands on point-of-sale information

solutions in store as well as information fielded via social media. Product in-stock

(and in-stock location) information must be accurate and identical across

channels, which demands central inventory information management that

many brands do not have.

z Real-time intelligence, instant offers

Real-time collection of customer data and instantaneous analysis are becoming

more and more feasible. It enables the next best action to be calculated whilst

the customer is in the middle of an interaction, allowing the retailer to make a

personalised offer they cannot resist. Traditional databases usually cannot offer

the query processing speeds required to manage such real-time demands.

New Demands

“Loyalty is changing for retailers in

several different ways. Firstly, they

are realising the enormous value of

customer data, and how the online

channel can be a research channel

as well as a transaction channel.

They are also trying to target their

promotions more effectively and

customer data gives them the

means. Where Loyalty schemes

were traditionally seen as quite

expensive – needing the retailer to

give back between 1% and 10% in

rewards – this new approach

effectively lowers the cost of entry.

If you know more about the customer

you don’t have to give points, there

is value to the customer simply in

well-timed, well-targeted promotions

tailored for them.


10


z Online speed and offline ease

One of the areas of dissonance for customers can be that they are often treated

quite personally online, but don’t receive that same level of recognition and

therefore personal treatment in-store. The vision of truly personalised retail

where one is able to identify a customer through their smart-phone, track the

products that a customer is considering on a store shelf in real-time, and offer

individualised promotions right at that point of decision, is highly compelling –

but to deliver it requires some heavy lifting from the back-end technologies.

Translating what is possible online into the real world store environment could

transform how customers experience that channel.

z Link and enhance core systems

Many retailers run some kind of CRM system, but today most are not purposed

to track buying habits; they tend to be deployed to measure and control sales

and marketing activities. It is a cause of real frustration for a customer who, when

they call a contact centre, finds that there is no record of the problem they had

online the previous evening. The buying history of a customer would be an

incredibly powerful tool – yet there is little connectivity between CRM and POS

systems. Highly available and powerful analytical technology is required if any

system is to load the millions of transactions that happen on a busy Saturday

afternoon in-store to other systems. An awful lot of activity needs to happen

before it can be put to good use – from identifying the customer, to match offers

to the profile, to check stock is ‘Available to Promise’ before making an offer, to

deliver it to the right (perhaps mobile) platform, and do it all in less than a second.

z Support more mobile channels, devices and applications

Highly flexible mobility solutions, secure and flexible device management and

tools to create and manage multiple variants of mobile applications will all become

essential. As the mobile industry continues to innovate this challenge is unlikely

to become simpler. It will become more business-critical, however, as NFC

(Near Field Communication) becomes standard and contactless smart-phone

payments are likely to explode.

z Loyalty management

Although loyalty approaches are changing significantly, formal schemes will

remain a reality for many companies, along with the requirement to manage

how each customer goes through different channels and integrate this with

delivery of more personalised, relevant and immediate rewards. No single

application can handle all this; it requires a range of different technologies.

It is critical, therefore, to have a holistic approach to the modernisation and

enhancement of enterprise systems to support a new customer-centric reality.

“When mobile wallet comes in,

based on NFC capabilities in new

smart-phones, this will be the next

catalyst for change. Retailers will be

able to get very targeted and timely

about how they offer promotions,

and make it far more convenient for

customers to redeem them. The

vision, which is not far away now, is

that you will have both electronic

wallet and loyalty applications on the

mobile, and the retailer can issue

vouchers and promotions in a way

which can all be managed on the

device itself. Without the customer

doing anything, their phone can be

processing their payment, redeeming

their coupons, and updating their

loyalty account.



11

It has never been so important for IT decision-making to follow the business

strategy which, in this case, demands that a common experience must be

delivered for customers. That means a need for a common architecture,

framework and platforms as well as common understanding. Unfortunately,

this is not the reality of most current organisational technology or, indeed,

structure. The most prevalent issues come from:

Silo Scenarios

Data and application silos act as a direct barrier to using information to its best

effect. While information is managed for the principal aim of making it accessible

to disparate applications across different functions there is no route to create

the integrated view, rapid analysis and speed of manoeuvre that is required.

Requiring ‘modernisation’ may seem counterintuitive to retailers who have the

very latest all-singing marketing, finance and call-centre management apps and

the hottest new social platform around – but it is needed, nonetheless. If a

company has hundreds of different platforms, all working to different IT standards

and architectural frameworks, the creation of a joined-up experience and free-

flow of customer information to where it is needed is nearly impossible.

There are purely practical issues to overcome also:

Data Deluge

Enterprises are already recognising that the data mountain is a problem that will

only grow as their dependence on data increases; their storage needs scale

as they meet compliance criteria for data retention and discovery, and so on.

New models will be needed for smarter, socially linked segmentation. Real time

intelligence must be gathered in order to create and deliver loyalty-building offers

to customers, which means establishing potentially vast new information streams

and finding new ways to load, connect, analyse and act on that information. All

of this adds up to an overwhelming data challenge that requires dedicated

thinking and enterprise-wide solutions.

Differentiating Differently

The economic turmoil of the past few years has put even greater pressure on

many brands to differentiate themselves cleverly. Globalisation of supply and

manufacturing tends to level out the cost base for many FMCG companies and

has driven down margins along with consumer prices. So players have to

compete for market share in ways other than those based on price, ways that

go beyond monetary value like great customer service and product quality.

Co-ordinated Control

As companies start to recognise that the customer experience sits behind all

loyalty-type activity, a question of ownership may arise. Loyalty schemes have

Encountering Barriers

“People are starting to understand

that having a Loyalty programme

alone won’t take them where they

want to go. We are often asked to

go in and refresh and revitalise

schemes in which companies have

failed to appreciate the sheer volume

of information they need to manage.

In many areas of retail there are high

product quantities, high customer

numbers, and high frequency

purchases to cope with – unless IT

systems can handle that, they can

get into trouble in a short space of

time, especially home-grown

systems.


12


often traditionally sat in the marketing department, totally divorced from decision-

making on product and pricing, unconnected to questions of supply or logistics;

calling on the online team only to create executions of campaigns they have

conceived and instructing stores how to roll out promotions in-store. In a joined-

up, customer centric world that can’t be the case. The whole company must get

much better at using shared data to drive the insights it needs.

Lastly, there are some organisational legacy issues which may also trip up

companies as they rally around a new future vision:

Age & Attitude

As Generation Y moves to the top of the enterprise and the digital native becomes

middle management over the next few years, the ‘old world’ experience of the

most senior and, probably, older executive may become a retarding factor.

Despite the huge value that will remain vested in the experience and knowledge

of those individuals, the reality is that they may not always recognise what

changes may be needed. The start of this is already clearly evident in the

reluctance of many companies to become truly social business, as they resist

integrating social into the business and hold it at the periphery for marketing to

deal with. Of course, no generation has a 100 per cent perfect viewpoint –

younger staff in companies may well favour the hottest latest social technologies

and be unaware of the bigger practical challenges for wider IT – but this perfectly

illustrates the need to open up conversations across the company to find the

right path through.

Form Follows Function

The very structures and hierarchies that define many organisations may act

against embracing the customer fully into the heart of the business. Flatter

structures may be needed to empower a much larger number of people to play

a role in engaging the customer at every interface. More open, communicative

and collaborative companies will find it much easier to shift towards a sharing

culture, with an open two-way dialogue and interaction with customers.

“The biggest challenge that

companies have is joining it all up.

Loyalty doesn’t just sit in marketing

any more. Much of the benefit of the

new information you have access to

lies in supporting trading decisions.

To make it work you need many

teams involved: marketing, trading

or commercial, IT, finance, and for

lots of loyalty-related operations you

will also need store operations, plus

the online team. Lots of different

functions must get coordinated to

make the business case and then

drive it forward.



13

The ‘Loyalty Scheme’ as a standalone marketing initiative now has a limited shelf

life. If they aren’t already doing so, brands must start to think of loyalty as one

part of a much larger aim of creating more intimate relationships with customers.

For companies that have a currently successful loyalty scheme, complacency

is a real risk. What works today may simply not work tomorrow. It is ironic that

the recession has given a boost to existing price-promotion and discount-led

loyalty approaches, and that may well continue to be at least partly the case in

the future, but there are also many other trends that need to be considered.

There is a complex set of challenges to overcome, including both practical and

philosophical ones. With a little smart thinking companies can start to integrate

some of the principles of ‘new’ loyalty thinking into promotional activities, others

will require investment and enhancements to shape up the technologies that will

allow retailers and brands to collect, understand and utilise information effectively.

Integrated data from across myriad channels, personalised offers delivered in

real time and highly engaging social CRM activities are important – but in addition

the whole concept of loyalty management must evolve too. It must transform

from a marketing activity to an organisational philosophy and enterprise-wide

way of working which supports the customer, and is oriented around them.

Companies that are best at engaging loyal communities of customers around

them to sustain their long-term growth and profitability will be those that create a

corporate culture that delivers a delightful customer experience, where everyone

is focused on that challenge.

Technologies as well as organisational and process changes cannot be

approached piecemeal in support of this kind of transformation. The new

challenges and opportunities can be met only by creating a clear roadmap for

change that puts the customer first.

New Directions

“Retailers are just starting to realise

that a loyalty programme cannot be

as effective as a business that is

completely re-engineered around

the customer. Loyalty used to be

peripheral; now they are recognising

that it must sit at the centre. It can

no longer be out on a limb but must

be an integral part of the business

strategy – and it will disappoint both

you and your customers if you don’t

have a proper roadmap.


14


SAP CRM for Marketing

CRM Marketing

Accurately target your audiences and

deliver personalised and relevant

messages that your audience will find

valuable – thanks to our CRM marketing

software. Align your marketing operations

to accelerate your marketing processes.

Successfully engage your customers

and deliver great experiences that build

customer loyalty.

SAP Loyalty Management

True customer loyalty is generated when

customers enjoy consistent experiences

that are relevant and valuable. Enhance

customer experiences with enterprise

loyalty programmes enabled with software

from SAP. Orchestrate multichannel loyalty

programmes across the enterprise that

convert points and rewards into true

customer loyalty.

SAP Real-Time Offer Management

Enrich customer relationships and retain

them for a lifetime by using all relevant

information to inform your interactions

with them. Cross-sell and up-sell with an

analytical real-time decision engine –

SAP Real-Time Offer Management.

SAP Social Media Analytics

This is an on-demand, subscription-based

solution that can gauge net sentiment –

the net result of analytics related to any

topic mentioned on social media sites.

The application's sophisticated, natural-

language processing engine also

extracts insights from postings of social

media users.

SAP Promotion Management for Retail

Achieve bottom-line savings and top-line

growth by streamlining your promotion

process with the SAP Promotion

Management for Retail application. The

integrated software helps you identify

profitable promotions based on shopper

demand and gives you the functionality you

need to deploy them in a timely manner.

SAP CRM for Sales

CRM Sales

Power your sales people to make a

positive impact on every deal – with

collaboration, insight, and agility from

CRM sales software. Serve customers

who are better informed than ever before

– with sales software designed for the

way you sell today – no matter the size

of your business.

SAP Web Channel

Experience Management

Turn the Internet into a profitable sales

and interaction channel with the SAP

Web Channel Experience Management

application. Provide customers with a

delightful online shopping experience,

while you leverage powerful and

convenient self-services to manage all

interactions from one place.

SAP In-Store Product Lookup

Mobile App

Give store managers and sales associates

fingertip access to product information

management tools – without leaving the

floor. Enable personnel to use

smartphones for up-to-the-minute reports

on spoilage or stock corrections. Or to

delight customers with immediate answers

about prices or product availability.

SAP CRM for Service

CRM Service

Support all facets of your customer service

organisation, from contract management

to marketing. Delight clients with a

positive user experience by quickly

resolving issues with real-time customer

support. Give employees the tools to

retain valuable customers.

SAP Business Communications

Management

Improve your customer service and fulfill

customer expectations with help from our

business contact center solutions for

communications management. Give your

customers the speedy, reliable, and

consistent customer service – delivered

through multiple contact channels – that

they demand.

SAP Workforce Management for Retail

Deliver customer service that meets

brand promise, maintain control on payroll

spend and develop greater visibility.

SAP Solutions


15

SAP Planning and Analytics

SAP BusinessObjects

Sales Analysis for Retail

Make better, faster decisions based on

real-time point-of-sale (POS) data – with

our retail sales analysis software. Rely

on powerful sales analysis tools to help

you understand the real impact of market

trends, promotions, stock levels, and more.

SAP BusinessObjects

Promotion & Merchandise Analysis

Identify which promotions are successful

and best fit for merchandise mix to

correlate with optimal markdown and

pricing parameters for all channels. Gain

visibility across various retail channels

(store, web, mobile, catalogue, etc) to

maximise promotional profitability.

SAP BusinessObjects Store

Sales and Labor Planning

A best practice-based, pre-built model for

integrated store/department level sales

and labor hours planning. Review planned

versus actual performance and schedule

maintenance and reporting in no time.

SAP BusinessObjects Supply Chain

Performance Management

Supply chain performance management

enables retailers to measure and improve

the effectiveness of supply chain

operations, lower costs and improving

return on capital.

SAP BusinessObjects

Information Steward

SAP BusinessObjects Information Steward

gives you the ability to understand and

analyse the accuracy of product and

customer data and attributes. Integrated

data profiling provides continuous and

instant visibility into data quality levels

and origins with data lineage.

SAP BusinessObjects

Event Insight for Retail

SAP BusinessObjects Event Insight

software helps retailers to continuously

discover and understand the business

impact of events as they unfold. It can

unite business events to provide keen

insight into what is happening to your

business at any moment.

SAP Planning for Retail

An enhanced planning engine and cost

method of accounting content – Define

corporate budgets and efficient

assortments per channel utilising real-

time what-if demand driven forecasts

that leverage by day, product, customer

and store performance indicators.

SAP Forecasting & Replenishment

for Retail

SAP Forecasting & Replenishment for

Retail (SAP F&R) is a key solution which

drives efficient inventories in stores and

DC of retailers. SAP F&R allows planning

and executing inventory strategies on a

global basis. With its advanced multilevel

replenishment capabilities it allows

streamlining inventories along the supply

chain and lower overall inventory levels

and cost while optimising fulfillment rates.

SAP HANA

SAP HANA is a game-changing, real-time

platform for analytics and applications.

While simplifying the IT stack, it provides

powerful features like: significant

processing speed, the ability to handle

big data, predictive capabilities and text

mining capabilities.

SAP Mobile

Sybase Unwired Platform (SUP)

Create and manage multiple apps on a

mobile enterprise platform that securely

connects your data sources to all major

device types. Sybase Unwired Platform

gives you the tools you need to drive

mobile initiatives across your entire

organisation – with a development

platform that is consistent, but highly

adaptable to changing business needs.

SAP Afaria

Better manage and secure all your

critical enterprise data, mobile

applications, and devices. Afaria takes

the complexity out of supporting your

mobile workforce – ensure all data

stored and transmitted by mobile devices

is protected.

As market leader in enterprise application software,

SAP (NYSE: SAP) helps companies of all sizes and

industries run better. SAP has sales and development

locations in more than 50 countries worldwide. SAP

applications and services enable more than 183,000

customers worldwide to operate profitably, adapt

continuously and grow sustainably.

SAP (UK) Limited

Clockhouse Place

Bedfont Road

Feltham

Middlesex

TW14 8HD

Telephone: +44 (0)870 608 4000

Email: [email protected]

www.sap.com/uk

HCL AXON is a global pioneer in leveraging leading

technologies to drive value realisation. We provide the

complete range of consulting, hosting and BPO services,

necessary to define, realise and sustain real business

change. Our unique delivery model integrates on-site

business transformation consulting services with near-

shore and off-shore technical development and support

capabilities. This model ensures that our clients receive

the optimal solution at the right price point.

HCL AXON

Axon Centre

Church Road

Egham

Surrey TW20 9QB

Telephone: +44 (0)1784 28091

www.hcl-axon.com, www.hcltech.com, www.hcl.com

Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials

are provided by SAP AG and its affiliated companies (“SAP Group”) in conjunction with HCL and PwC for informational purposes only, without representation or warranty of any kind,

and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the

express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

All SAP products and services mentioned herein as well as their respective logos, if used, are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects is an SAP company. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies.

© 2012 SAP AG. All rights reserved.

Registered in England No. 2152073

Published July 2012. Republished September 2012.

PwC firms provide assurance, tax and advisory services

to enhance value for their clients. More than 163,000

people in 151 countries in firms across the PwC network

share their thinking, experience and solutions to develop

fresh perspectives and practical advice. “PwC” refers to

the network of member firms of PricewaterhouseCoopers

International Limited (PwCIL), or, as the context requires,

individual member firms of the PwC network. Each member

firm is a separate legal entity and does not act as agent of

PwCIL or any other member firm.

PricewaterhouseCoopers LLP

7 More London Riverside

London

SE1 2RT

Telephone: +44 (0) 20 7583 5000

www.pwc.co.uk

Loyalty 2 - HCL Technologies · 2015-02-06 · 6 Loyalty 2.0 Creating a new conversation with...

Documents

Transcript of Loyalty 2 - HCL Technologies · 2015-02-06 · 6 Loyalty 2.0 Creating a new conversation with...