Swift Runner Sports

Ekeleme | Kohlitz | Powers | Shepelwich | Weeden

Driving growth and profits through customer focused strategies

SITUATION ANALYSIS | OPPORTUNITY | OBJECTIVES

BRAND STRATEGY | CRM STRATEGY | APPENDIX

SITUATION ANALYSIS

IncentiveLoyalty

Program($10 off)

FreeShipping

(order over $75)

15% Discount (order over

$100)

Invited/ No Response $66.11

Received Emailor

Participant$70.11 $69.11 $68.92

No Emailor

Not Invited$63.02 $65.98 $66.47

OPPORTUNITY

Increase frequency of purchase across all running

demographics

Determine the running needs of each customer segment

OBJECTIVES

Surviving Customers

Segment % of Total Customers Segment Value from Annual Spend

Surviving Customers

1/year 24% $8.8M

Surviving Customers

2/year 11% $8MSurviving

Customers

3/year 8% $8.1M

Surviving Customers

4+/year 5% $10.1M

New Customers

1/year 40% $14.6M

New Customers

2/year 7% $5.1M

New Customers

3/year 4% $4M

New Customers

4+/year 1% $2M

Totals 100% $60.7M

Shift from being owners of avid to being owners of running

BRAND STRATEGY

CRM STRATEGY

Increase share of wallet with customers

Re-align our resources around our most valuable opportunity

Identify additional revenue streams based on consumer insight

Product Development

Sales

Superior Customer

Experience

Retention and Win-Back

Customers

Targeting and Marketing

Functions of The CRM Cycle

Run More Motivational Tool

Swift Runner Sports | For the active runner

xSearchhttp://www.swiftrunnersports.com/runmore

YO U ’ R E O N T H E R I G H T T R A C K !RUN 1 RUN 2 RUN 3 RUN 4

TIME

DISTANCE

8:15 7:58 7:57 7:42

KEEP LOGGING YOUR TIMES!

1 MILE 1 MILE 1 MILE 1 MILE

EMAIL:

PASSWORD:RUN MORE!

RUN MORE MOTIVATIONAL TOOL

Front End

Input information on health status

Personalized content specific to goals

2-3 mi/wk

8+ mi/wk

4-7 mi/wk

Casual

New

Intermediate

Avid

MONTHLY INPUT-BASED EMAILS

RUN MORE MOTIVATIONAL TOOL

Back End

Mining data to build algorithms and assign

messaging

Determine metrics of success based on conversion rates

Seasonal Marketing

WINTER

Apparel PushFree Shipping

SHOES

Apparel PushFree Shipping

SPRING SUMMER FALL

SHOES

TextWINTER

Apparel PushFree Shipping

SHOES

Apparel PushFree Shipping

SPRING SUMMER FALL

SHOES

WHAT: Apparel Push WHY: Avid runners purchasing habits

WINTER

Apparel PushFree Shipping

SHOES

Apparel PushFree Shipping

SPRING SUMMER FALL

SHOES

TextWINTER

Apparel PushFree Shipping

SHOES

Apparel PushFree Shipping

SPRING SUMMER FALL

SHOES

WHAT: Shoe Push WHY: On average shoes should be replaced every 300 miles.

Spring has arrived

FREE SHIPPING

WITH EVERY ORDER

Enter in the SWIFTSPRING code to redeem your free shipping at checkout.

SALE3 DAYS ONLY! ENDS MARCH 5TH.

And so has our selection of

the best running wear for the

season.

S H O P N O W

Dear Sarah,

Loyalty & Referral

REFERRAL PROGRAM

= $10

$25

$50

=

=

LOYALTY & REFERRAL PROGRAM

RUN MORE MOTIVATIONAL TOOL

PRIMARY TARGET: AVID RUNNERS

SECONDARY TARGET: INTERMEDIATE RUNNERS

PRIMARY TARGET: CASUAL RUNNERS

SECONDARY TARGET: ALL OTHER RUNNERS

SEASONAL MARKETING

TARGET: ALL RUNNERS

1,600,000

233,000

127,00020,000

1,000,000

20,000

Loyalty Emails*Run More ToolReferral Emails*Monthly Incentive Emails*Seasonal Incentive Emails*Race Sponsorships

*Assuming $250 CPM

Budget= $3MM

$71.8M

MINDSETACTION

APPENDIX

IncentiveFree

Shipping (order over $75)

Average Order Size

Received Email $69.11

No Email $65.98

IncentiveLoyalty

Program($10 off)

Average Order Size Average # Orders

Participants $70.11 1.1

Invited/No Response $66.11 0.85

Not Invited $63.02 0.83

Incentive15% Discount

(order over $100)Average Order Size

Received Email $68.92

No Email $66.47

IncentiveLoyalty

Program($10 off)

FreeShipping

(order over $75)

15% Discount (order over

$100)

Orders 13,661 3,456 2,397

Revenue/Order $19.16 $11.23 $10.17

Cost $53,020 $24,192 $35,955

Incentive Program Comparison

IncentiveLoyalty

Program($10 off)

FreeShipping

(order over $75)

15% Discount (order over $100)

Costs $10 - ($10 x .32)* = $6.80 $7 $15 - ($15 x .32)* =$10.20

Response Rate 13,661 / 50,000 = .273 8,125 / 50,000 = .1625 7,375 / 50,000 = .1475

Acquisition Cost $6.80 / .273 = $24.91 $7 / .1625 = $43.08 $10.20 / .1475 = $69.15

Acquisition Costs

*accounting for 32% profit margin

CasualRunner$10.79

IntermediateRunner$44.81

AvidRunner

$97.68-$256.12

Customer Segments

% of Customers # of CustomersYearly Spend Per Segment

1/year 64% 375,283 $23.6 mil

2/year 18% 103,472 $13 mil

3/year 12% 67,854 $12 mil

4+/year 6% 34,871 $12.1 mil

Totals 100% 581,480 $60.7 mil

Purchases/Year

% of Customers

Survival Rate

% of Recurring Customers

% of New Customers in

Segments

1/year 64% 39% 24% 40%

2/year 18% 59% 11% 7%

3/year 12% 71% 8% 4%

4+/year 6% 78% 5% 1%

2008 Customers Base: 581,480

Surviving Customers

Segment % of Total Customers# of Customers/

SegmentCustomers X Annual

Spend

Segment Value from Annual

Spend

Surviving Customers

1/year 24% .24 x 581,480 = 139,556 139,556 x $63 = $8.8M

Surviving Customers

2/year 11% .11 x 581,480 = 63,963 63,963 x $126 = $8MSurviving

Customers

3/year 8% .08 x 581,480 = 46,519 46,519 x $176 = $8.1M

Surviving Customers

4+/year 5% .05 x 581,480 = 29,074 29,074 x $349 = $10.1M

New Customers

1/year 40% .4 x 581,480 = 232,592 232,592 x $63 = $14.6M

New Customers

2/year 7% .07 x 581,480 = 40,704 40,704 x $126 = $5.1MNew

Customers3/year 4% .04 x 581,480 = 23,260 23,260 x $176 = $4M

New Customers

4+/year 1% .01 x 581,480 = 5,815 5,815 x $349 = $2M

Totals 100% = 581,480 $60.7M