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Reimagining Customer Loyalty29 SEP 2014

Fiona Llewellyn (Director of IT – NBTY Europe)

Click to add textNBTY Europe – Who we are

Europe's leading retailer of Vitamins, Minerals and Herbal Supplements

Over 80 Years in Health Supplement Industry

Click to add textNBTY Europe – Our world

Video of Store (TBD Fiona)

Click to add textNBTY Europe – Loyalty Programs

Holland & Barrett UK – Rewards for Life

GNC UK – Train to Gain

Holland & Barrett IE – Rewards for Life

4 points earned per £1 4 points earned per €1 15 points earned per £1

Quarterly Reward Coupon issuance: 100 points = £1 / €1 Earn points / Redeem coupons across all channelsEnrol / Activate across all channelsBonus point promotions / Exclusive offers for membersMarketing offers via email, direct mail and SMS

Click to add textNeed for transformation

Sep 2011RFL Launch in all stores

Dec 2011•Reached 1 M Members• Increased Member Spend

Jan 2012•First Coupon issued• Increased Sale Benefits (Redemptions)

Scalability of legacy systemInflexible PoS System hampering Customer Experience at StoresLack of unified customer view (cards not customers)Inability to offer flexible loyalty promotionsLapsing customers due to inability to capture customer details in storeInability to target offers to specific customer segments

CHA L L ENGE S

EVOLVIN

G LO

YALTY PROG

RAMDec 2012•Reached 6 M Members

Click to add textTransformation enablers

The Right Technology Solution

• Understand your customer

• Reward, recognize and differentiate

• Deliver great cross-channel customer experience

• Measure and gain insights

The Right Implementation Partner

• Enterprise Customer Experience Solutions

• Oracle Co-Development Partner (Loyalty/Marketing)

• Customer Insights and Analytics

• Deep domain and delivery expertise

Click to add textNext Gen CX Technology

Oracle Retail POS

Enrollment TransactionsProfile Management

Oracle ATG / Endeca

E-Commerce Enrollment Profile Management

Mobile Applications

Coupons Activation Profile Management

Siebel Loyalty

Members Program Promotions Customer Care

Oracle Customer Hub

Customer UnificationData Cleansing

Siebel Marketing

Segmentation Campaigns List Management

Loyalty Analytics Marketing Analytics

Customer Insights / Advanced Analytics

Oracle Service Bus

Legacy AS400

Products Stores Customer Data

OD

I

FTP

Responsys

Email Marketing

Oracle Applications

Legacy Systems

Custom Applications

Click to add textCX Implementation Differentiators

Enhanced engagement through real-time enrolment and activation

Real-time points accrual and display to customers on receipt

31 types of ‘Configurable’ loyalty promotions deployed (category,

SKU, Tiered, Spend, Time etc.) – To be grown to 45 types

Unified customer view through Siebel Loyalty and Oracle Customer

Hub

Personalized campaigns via customer segmentation

Click to add textLoyalty Program Evolution

Feb 2013RFL Pilot launch on Oracle

Apr 2014• In-store activation•Activation increasing by 70% per week

May 2014•Deployed on all H&B stores •Reached 10M Members

B ENE F I T S

EVOLVIN

G LO

YALTY PROG

RAM

Sep 2014•5M Activations•T2G Launch

Customer Base Impact• 40% uplift in card activations

• Active customers are 75% more profitable• 50% of cards issued in the last year• 11M cards issued (higher outreach)• 2 % net positive migration in customer

value

Sales Impact• 6-8 % Sales uplift due to loyalty promotions• Loyalty Penetration – 62% in sales & 53% in

transactions• 36% increase in Voucher redemption

resulting in 10% increase in customer spend

Click to add textLeveraging Insights – Targeted Marketing

•State of Art Loyalty System

•Enhanced POS System & Website

•Unified view of Customer

Key Initiatives Customer Insights

Targeted Promotion

Increased Customer Engagement

•Evaluate customer Behaviour

•Identify Customer Segments

•Develop strategy for targeted promotion

•Enhanced promotion capability

•Provide customized offers

•E.G Beauty Swap for Beauty customers

•Increase Customer Experience

•Influence Annual spend

•Enhance Brand Affinity

Campaign Evaluation

•Increase in Coupon Redemption Rates (19%)

•Increase in Purchase Rate (0.8 more order/ customer)

Customer Segmentation

Cherry Pickers

Lapsing, Customer

Promising Shoppers

Offer on Beauty Products

Only for Beauty Customers

Purchase Rate 12 - 6 Months

Purchase Rate 6 Months Purchase Rate Post Voucher

0.00

0.01

0.02

0.03

0.04

0.05

0.06 Purchase RatePre and Post Voucher

Middle 50% of Data Mean

Click to add textCX Implementation Roadmap

Store POS Enhancement & Rollout

Loyalty Program Platform (Siebel)

E Commerce

Campaign Management (Email)

Customer Analytics & Value Management

Consumer Engagement Application - Mobile

Customer Service

Loyalty EnhancementsPoints Promotions Targeted Vouchers Social/ Affinity Clubs Ring fencing & Customer Journeys

Enterprise Business Intelligence

Omni-Channel

Phase 1 – CX Foundation Blocks

Single View of Customer (Oracle Customer Hub)

Phase 2 – Multi Channel Engagement

Phase 3 – CX Value Realization

Drive Trading Decisions (Assortment, Space Zoning, Promotion Design etc.)

We are here

Questions?