GI Insight InTouch 05 by GI Solutions Group

InT uch From GI Insight

Database Marketing and Customer Loyalty Experts

DOES YOUR DATA NEED A SPRING CLEAN? INSIDE

Building a truly multichannel customer database through the Bonus Club loyalty programme

FIND OUT

Could your customers benefit from a personalised mail pack?

Issue 05

Welcome to InTouch Welcome to the customer magazine from GI Insight focusing on current topics, industry news and features on customer loyalty, communication and database marketing. Good data management is at the heart of effective loyalty marketing, it prevents decay and ensures the integrity of your data. Bad data can harm your customer relationships, cause bad publicity and result in additional costs due to postal returns. On pages 4 and 5 Kirk Dobie, our new Commercial Director, looks at the issue of data quality and poses 3 simple questions that could improve the success of your loyalty marketing efforts. In the retail sector, as competition grows fiercer, it becomes increasingly important to stay abreast of the new developments in order to get ahead of the competition. To find out our latest thinking, why not join us at the Customer Loyalty Conference 2014 on June 10th? Youâ&#x20AC;&#x2122;ll find more details on page 8. Please let us have any feedback and thank you for reading InTouch. Yours sincerely,

Andy Wood Managing Director, GI Insight

andy.wood@gi-solutionsgroup.com E

Follow Andyâ&#x20AC;&#x2122;s blog. Log on to: http://giinsight.wordpress.com

http://uk.linkedin.com/in/andywoodgiinsight http://www.gi-solutionsgroup.com/gii-about-us/andy-woods-blog B This magazine was delivered in an Oxo-degradable plastic polylope and printed by GI Insight, 147 Scudamore Road, Leicester, LE3 1UQ. Tel: 0116 232 1711; Fax: 0116 232 1611; Website: www.gi-solutionsgroup.com. For more information contact Tara Pickles, Head of Marketing on 07970 263 943. We will hold your details in accordance with our Privacy Policy and may contact you by mail, email or telephone on the products and services offered by GI Insight. If you would like to unsubscribe from the GI Insight mailing list please email marketing@gi-solutionsgroup.com with your details.

2 | InTouch

View an online version of this magazine. Go to www.gi-solutionsgroup.com/intouch or use this QR code f

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InTouch Case Study

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Building a truly multichannel customer database through the Bonus Club loyalty programme PROJECT

SOLUTION

Bonmarché’s Bonus Club loyalty scheme has emerged as a crucial business driver for the women’s fashion retailer. The company, which sells through stores, online, catalogues and a call centre, uses the insight gleaned from its Bonus Club data to identify key trends, as well as to guide the creation of offers and communications that build customer relationships. One of the key trends identified was that multichannel customers are the most valuable, spending not only more overall but more in-store than in-store only buyers and more online than online only purchasers. Bonmarché and GI Insight devised a strategy for growing this group, setting targets for 2013: • increase the size of the multichannel segment by 20% • increase spend per multichannel customer by 5%

GI Insight analysed Bonmarché’s customer base to gain an understanding of each segment, incorporating web browsing behaviour into the existing single customer view in order that web analytics could also be taken into account.

“Bonmarché are proud of the customer loyalty and business intelligence we derive from the Bonus Club rewards programme. GI Insight is central in delivering ongoing customer value and business knowledge from the data we collect and they are a great team to work with.” Sarah Wilkinson Marketing and PR Manager, Bonmarché

marketing@gi-solutionsgroup.com

The next step was to create customer journeys for each segment to encourage more buyers to purchase through multiple channels. Communications were personalised, tailored and targeted to encourage multichannel buyers to spend more and single channel customers to try new methods of purchasing. Mailings were targeted at both in-store and online customers – with certain in-store customers sent catalogues to help drive online take-up. Promotional discounts were tailored according to spend and timing targets.

RESULT The loyalty campaign succeeded in its two main objectives: • the number of active (spent in last 12 months) multichannel customers increased by 27% • the annual spend by these customers rose by 8% Overall, Bonmarché now has a broader base of multichannel customers with better ROI and less waste. The proportion of active multichannel customers has increased from 37% to 44%, while total revenues have grown by 7%.

0116 412 0017

www.gi-solutionsgroup.com

DOES YOUR DATA NEE Kirk Dobie, GI Insight Commercial Director, looks at the issue of data quality and how this can affect your results.

Last September the Information Commissioner issued tough new guidelines to the direct marketing industry to help improve practice – see www.ico.org.uk. This placed the emphasis on the data controller to make sure customers knowingly opted-in to receive marketing communication, rather than receiving sales messages unexpectedly. But we have to see both sides of the coin and think about how a business communicates with its customers. According to the Direct Marketing Association, around 94% of companies admit to having “issues” with customer data. Therefore if you are in charge of your company’s customer database, do you know how much of your “crown-jewels” database is accurate and selfcleansing or does it fall into gradual uneconomic disrepair? How do you work out the extent of these repairs and how do you go about working out the cost?

4 | InTouch

CAN YOU ANSWER T



Q1. Do you know many customers t would like to mai moved house?

Q2. How many cu who you email us email addresses?



Q3. Do you know many customers w would like to call changed their num

ED A SPRING CLEAN?

THESE QUESTIONS?

w how that you il have

• Around 8% of households change hands each year • Currently around 480,000 households are being added to movers files each month but only around 40% use mail re-direction • Also just under 6 million households are on the Mailing Preference Scheme to prevent unwanted postal activity

ustomers se new ?

w how who you l have umber?

• The average number of email addresses per person has risen from just under 3 per person five years ago, to over 6 per person in 2014, so will you have the right one to use?

• Around 1 million telephone numbers become invalid every week in the UK. High percentages (80%+) of landlines are on the Telephone Preference Service and with just under 20m numbers registered and therefore it is not easy for numbers to be cleansed. • Lower percentages of mobiles are on TPS – but this will grow, especially as numbers are being harvested when not used or devices changed and the lead generation industry will surely move toward mobiles as call costs reduce over time. • Only recently have non-intrusive cost-effective telephone number cleansing services appeared and I’m sure they will become used more often going forward

marketing@gi-solutionsgroup.com

So how likely is your information to be accurate? Think about who you tell you have moved house or changed numbers. It’s probably a mandatory “yes” for your bank, mortgage lender, credit card company, utility provider, local council, good friends and close family. It’s probably a “no” or a “maybe” for everyone else. Did you know only 40% of movers sign up to postal re-direction? So how can you make the difference to data quality and the knock-on effect of cost-effective customer engagement, retention, good service and ultimately profitable loyalty? There are a number of new services available for data cleansing and enhancement to help identify movers’ new numbers or email addresses, which will improve data quality and accuracy. But effective loyalty programmes encourage selfcleansing. People want to receive the information, offers and promotions and keep the companies they want to hear from informed of any changes. You just have to make it easy for them.

For more information on spring cleaning your data, please call me on 07896 990486 or email kirk.dobie@gi-solutionsgroup.com

0116 412 0017

www.gi-solutionsgroup.com

GI Solutions’ Digital Envelope Could your customers benefit from a personalised mail pack? To maximise the value of personalising mailings in colour we can match digitally printed envelopes with digitally printed letters. This lets you reflect the variable personalised contents of your letter with your outer envelope so you stand out on the doornat against your competitors. As the packs are printed digitally, you can vary each outer envelope to reflect different brands, offers or levels of personalisation and still benefit from the best postage costs from using a single mailing file. Go to www.gi-solutionsgroup.com/ digital-envelope-mailpacks to see how to change your customers’ behaviour. Alternatively scan this QR code to visit our website

Mr AB Sample 123 Sample House Sample Street Samplestown Sampleshire SA1 2MP

Alistair, do you prefer green ones? Mr AB Sample 123 Sample House Sample Street Samplestown Sampleshire SA1 2MP

Alistair, do you prefer pink ones? Mr AB Sample 123 Sample House Sample Street Samplestown Sampleshire SA1 2MP

Mr AB Sample House 123 Sample Sample Street Samplestown Sampleshire SA1 2MP

Alistair, fer do you pre blue ones?

Alistair, do you prefer red ones?

Alistair Ezzy is Sales Director for GI Insight’s sister company GI Solutions. For more information on changing your customers behaviour please call 07970 232 491 or email: alistair.ezzy@gi-solutionsgroup.com

Is your customer communication

As media channels proliferate customer communication is becoming increasingly fragmented – so customers may browse in-store, research products on their mobile, then purchase using their laptop. This creates opportunities for greater customer interaction. But if you can’t track your customer purchase behaviour across different channels, you cannot know the true value of your customers. A Single Customer View (SCV) allows you to understand and measure your customer’s experience. It gives you a true 360 degree view of your customers and allows you to achieve costs savings. It also helps with compliance. For your copy of ‘GI Insight, The essential components of a single customer view’ please visit: www.gi-solutionsgroup.com/gi-insight or email marketing@gi-solutionsgroup.com 6 | InTouch

Ask the Expert

Colin Martin, Senior Analytical Team Leader

We are new to sending out campaigns and know we need to evaluate how successful they are. What is the best way to do this and what should we look out for? Response analysis is vital if you are going to understand the profitability performance of the mechanics in your campaign. It is the only way to make sure you are spending your budget on the right channel, with the right offer, and to the right customers. It is important to remember that campaign success is not just about redemption, but about customers’ total spend, as this includes customers who reacted to your campaign but did not take up the offer. At GI Insight, we carry out response analysis on all campaigns and by holding a control cell of customers will measure the average customer value,

Traditionally, a physical plastic card is used to create engagement with the customer. Now with the increasing capability of Smartphones, it is possible and even desirable, to have a ‘virtual’ card. This isn’t to replace a plastic card – not everyone will possess a Smartphone or use it in this way – but it is intended to work in conjunction with the physical card, giving you another way of engaging your customers. GI Insight have developed a mobile app specifically to work in conjunction with your loyalty programme, which will fully support your marketing strategy. For more information go to: www.gi-solutionsgroup.com/gi-multichannel-marketing/loyalty-app, call 0116 412 0017 or email marketing@gisolutionsgroup.com for a demonstration

so you can evaluate incremental revenue and ultimately the return on your investment (ROI). Understanding the results by customer segment will then influence the customer journey planning/targeting to ensure you are maintaining and growing your customer base. For more information call 0116 412 0017 or email marketing@gi-solutionsgroup.com

DATABASE MARKETING & CUSTOMER LOYALTY SEMINAR WEDNESDAY 4TH JUNE

NEW LOCATION - Leicester City Football Club To register, go to gi-solutionsgroup.com/seminars or hover your phone over this QR barcode to access the website. Download a free code reader app at www.beetag.com

If you can’t make our seminar, why not join us at the Customer Loyalty Conference 2014? TUES JUNE 10TH CAVENDISH CONFERENCE CENTRE, LONDON

Email marketing@gi-solutionsgroup.com or call 0116 412 0017 for more details marketing@gi-solutionsgroup.com

0116 412 0017

www.gi-solutionsgroup.com

Andy Wood, Managing Director, GI Insight speaking at: