For whose who couldn't attend to the conference "Fashion Retail & Distribution" organized by BBCG in Moscow - How clever retailers are improving their profit through loyalty? By Vincent Lootens from Inbox

1. Customer Relationship
Management
Unlock the sleeping potentials
1
Solution INBOX
14/10/09

2. A unique combination of marketing and technology
expertise to identify and reap customer value.
Inbox is an independent consulting
firm founded in 2001 specialized in
customer marketing.
We help our clients better
understand the behavior of their
customers and enhance interaction
with them.
Inbox assists its clients from analysis,
(data mining, specification, design),
to implementation of operational
CRM solutions.
We develop customized and
evolving solutions based on our
expertise and operational knowledge
of the business challenges our
clients face.
2
Solution INBOX

3. A diversified portfolio with an emphasis
on Consumers’ services.
Revenues by sector
Last year, we performed:

Finance
8%
60+ product appetite scores
5%
Retail / Luxury
20%
Media / Telco
10%

Insurance
27 audits of customers’ behavior
Press
11%


22 relational action plans designed
and implemented
19 customer segmentations
18%
FMCG
13%
Leasure Tourism
Leisure / / Tourism
15%
Revenues by offer
Analytics / Clients DB
3%
40 marketing DB hosted and managed
7%
Datahosting
13%
40%
Over 62 million individuals’ data hosted
13%
92% of clients are very satisfied 
Interactive & relational
animation
Consultancy
Reporting tools
24%
3
Mail & Online vendors
Solution INBOX
Online questionnaire
14/10/09

4. Inbox’s international coverage
Inbox operates in 7 countries on 3 continents:
EUROPE
• Founded in 2001 in Paris
• Since 2008 in Moscow
NORTH AMERICA
• Since 2013 in Washington D.C.
• Canada (Montreal)
EMERGING MARKETS
• Since 2009 in Tunisia
• Since 2011 in Morocco
• Partnerships in the Middle-East
4
Solution INBOX

5. WHAT WE DO
5
Solution INBOX
14/10/09

6. REVENUES
MARGIN
SUBSCRIPTION
SALES
&
UP SELLING
ROI
6
CROSS SELLING
RECOMMANDATION
PROFITABILITY…
GROWTH
We make big data & marketing studies accessible
for a company with limited (or not) ressources
SATISFACTION CLIENT
…CLIENT LOYALTY?
OUTSTANDING RELATIONSHIP
Solution INBOX
TRUST
14/10/09

7. SELL
CONVERT
Prevent
& Stop
Churn
KYC
CrossChannel
Campaigns
7
Solution INBOX
KNOW
Lead
Generation
&
Conversion
LEADS
TO CUSTOMERS
PREDICT YOUR
CUSTOMERS
NEEDS
STOP
Cross/Up
-Selling
MORE TO
EXISTING
CUSTOMERS
CUSTOMER
CHURN
SAVE
Our areas of expertise
BY OPTIMIZING
YOUR
CAMPAIGNS

8. Evolutions in the context,…
8
Solution INBOX
14/10/09

9. Context has evolved, yes… as,
Over the period 2009 – 2012:
• 55% of the CRM
initiatives have missed
their targets
(Gartner Group – 2010)
•
A progressive saturation of
the consumers’ needs
A Russian consumer more
demanding
Improvement in the offer
Higher penetration of goods,
services
Catch-up of the economy
(globalization)
Higher exposure to foreign
markets
50% of multi-programs
penetration in key
urban centers
Quantity of cards
•
70% of purchase
decision making process
remains at the point of
sales
Issuance of “discount card”:
Discount first & last
31.8%
Более чем 5
BUT:
От 3 до 5
47.7%
(Inter-Act System – 2011)
От 1 до2
Ни одной
9
20.2%
0.2%
Solution INBOX
Value destructive
Absence of differentiation

10. Consumer’s behaviour is changing
Criteria of customers’ preference towards retail chain
Цены
81%
Ассортимент товаров
76%
Качество
76%
Система скидок или акции
67%
Программа лояльности/ дисконтная программа для …
59%
53%
Предлагаемые бренды
Удобное расположение магазина
47%
Рекомендации родственников, друзей, знакомых, …
20%
19%
Привычка
Иное
1%
•
Обязательно
61%
Скорее всего, нет
10
Depth & width of the assortment become KEY in the
differentiation
•
Quality remains a strong pillar
•
… the consumer is looking for better consideration
& greater attention, and ready to play WIN-WIN
29%
Да, вероятно
Конечно, нет
Discount is good but prices reality would be better
•
Is the loyalty card, a stimulus in your
choice?
8%
2%
Solution INBOX

11. One to One & CRM
A strategic vision
11
Solution INBOX
14/10/09

12. Customer Relationship Management
Positioning
HR
Target
What for?
Me too or Strategic pillar?
Training, job description
Budget
Which resource allocations
for which results?
Action to manage, organize the links
between different persons who do
exchange – positively or negatively – under
commercial terms goods and/or services
within constraints (budgetary, human
resources, commercial pressure) which
lead to necessary arbitration and then,
selection and targeting
SWOT Analysis
DEFINITION
Where do I stand today?
Competition
Communication
Distance
Perceived image
Communication
12
Solution INBOX
Capacity to
federate
Alone or in partnership

13. 10 Basic Rules of Success
Clearly define from the beginning realistic targets (industry, sector,…)
Build a Business Case and keep it up-to-date
Obtain and keep the support of the General Management
Execute quickly the project to obtain quick results
Limit and control the perimeter of the CRM project
Be aware of change management
Get involved the users throughout the project
Drive (manage) strictly the project
Get it properly integrated into your environment
Measure the results with agreed and shared K.P.I
13
Solution INBOX

14. Key advantages of DB set-up
Margin analysis per distribution channel
Customers expectations & preferences
Geo-marketing (competitive analysis)
Channel
Management
Strategic
Marketing
Definition of price policy
Client & Customer Segmentation
Profitability & Efficiency of DM programs
Relational
Marketing
Customer
DB
New Product
Development
Market trends
Customer expectation
Sales history per products categories
Demand, volume, profitability simulations
Cost of recruitment or retention of customers
In-depth customers’ knowledge, history of the
relations
Individualization of the client knowledge
Individualization of the offers
Customer
Service
Sales
Productivity
Efficiency of the sales process
Customer satisfaction (follow-up,…)
14
Solution INBOX
14/10/09

15. Beyond the mirror,…
15
Solution INBOX
14/10/09

16. Why developing a CRM program?
Creating additional turnover
Extending and improving the relationship between the brand and its customers
• Retaining the good customers
• Reactivating occasional customers
• Maintaining proximity between the customers and the brand
• Improving knowledge of the customers from the get-go
• Paying attention to the events of the client's life
• Supporting the acquisition of new members
Triggering additional purchases
• Anticipating renewal habits
• Increasing volumes of purchases of families of goods
• Encouraging cross-selling
Controling the investments
• Avoiding unnecessary proposals (too frequent, redundant, inadapted)
• Developing a balanced bonus scheme (not too much, not too ittle)
• Chosing the most profitable and relevant channels for each customer and actions
• Integrating all proposals in one program
16
Solution INBOX

17. Managing the CLV: our client’s end-goal
Extend and restart the
customer lifecycle
Value Added proposition:
Partnership offers
VIP treatment
Rewards related
promotions
Laps Prevention
Program Enrollment
Lapsed win back
Define acquisition
targets
Clear Costumer
roadmap
Acquire
17
Customer Lifetime Value to segment and target based on behavior
Develop
Retain/Expand
Solution INBOX
Attrite/Win-Back
14/10/09

18. Today
But different marketing is required,…
Product
Marketing
• Consumer Insights
• Product/brand benefits
• Monologue
18
Solution INBOX
Consumer
Marketing
Tomorrow
• Consumer Behaviors
• Consumer aspiration
• Dialogue

19. Your mission : to build proximity
A great proximity with the customer is A KEY axis
of differentiation vs competitors - it aims at
creating a link based on mutual capability to:
•
•
•
Listen, exchange, share
Thank, punish, reward
Federate, value, entertain
Share
Know
& Understand
Gain
proximity
Communicate
directly
Develop
interest
Customer profitability over time
40
35
Price premium
30
Referrals
25
Reduced operating costs
20
Repeated order
15
Cross Sales
Base profit
10
Acquisition
5
0
-5
1
2
3
4
5
6
7
Average length of customer relationship (years)
19
Solution INBOX
Because a LOYAL
customer is WORTH it

20. Your target: to collect DATA
Any point of contact
with the customer is a :
Any person in contact
with the customer is a :
DATA COLLECTION PROMOTER
(DCP)
Consolidation of the data into
common database
De-duplication of the contacts
(recommended)
Reporting
Interface
Retained Customers
Program
20
New Customer
Cultivation Program
Solution INBOX
DATA COLLECTION POINT
(DCP)

21. Your weapon: CRM analytics tools
Segmentation
100,000
70,000
28,000
• Behavioral
• Potential/Value
Assessment
• Scoring
• Expertise
Selection
• Target
• Constraint
The best potential
of results and R.O.I
Prospects for special offer, new offer,…
21
Solution INBOX

22. From brand communication to
individual relationship
Advantages
Limitations, Attention
3
Targeted action
client by client
Knowledge and
maximum recognition of
consumer
Complexity, ability to
manage offers matching
each segment
2
Actions targeted on
homogeneous
group of clients
Stronger relevancy of
the marketing &
commercial action plan
Need to rely on a
knowledgeable
consumer database
1
Seasonal or
promotional offers
to any one
Easy to implement
Véhicle of the brand and
commercial animation
One AD like others
Risk of low effectiveness
-> Main belief: the success of loyalty program requires the commitment of
the commercial/sales staff into its success and execution
22
Solution INBOX

23. Architecture of customer relationship
Channels
Loyalty
program
Pillars
Customer
Knowledge
• Tool to acquire
customer knowledge
• Vector of
communication
• Basis of observation
and individual
understanding
• Compulsory to enable
personalization of the
relation
Relational
action plan
• Tool of activation and
stimulation through
commercial plan
• « ROI driver »
Budgetary constraints
Constraints
Over sollicitations
23
Solution INBOX

24. Main elements to consider in the
creation of loyalty program
Materializing the program
Package and
communication
Supports
Status
Rewarding system
Transactional
24
Service
Solution INBOX
Relational

25. How do you feel ?
« I’m offering you this bouquet! »
« I’m offering you this bouquet of
a 20€ value! »
« I’m offering you this bouquet of
a 20€ value that I bought with a
promotion at 15€ ! »
25
Solution INBOX

26. Rewarding system
Transactional
Service
Relational
• Basis of the program : bonus
• Access to services: pre-booking,
• Whole communication and events
program and services standards
Important to consider possibility
to « punish », should cardholder
not fullfill minimum requirements.
delivery, limited edition, gift pack,
…
Granted services are targeted in
accordance with company’s goals
and postioning
has been built to create proximity
and keep the relation alive an
active (private space, mobile app.)
• Exclusive information, recurring
meeting point (newsletter, SMS,
private space,...) : real story teller
bringing meaningful insights and
getting cardholder participant.
• Events in shop (private sales, night
opening,...) …
• Satisfaction survey
Working principles :
-> Strengthen the brand consistency,
and imagery, supporting top of mind
in consumers’ mind
•
Working principles :
-> Lisibility, simplicity
-> Targeted offers aiming at delivering
on cross-sell, average check increase,
frequency of purchase, optimizing
perceived value of brand
-> Real reward with a real perceived
value but with as lowest possible as
association to price reduction, and
as much as possible to gift attached
•
Working principles:
-> Services developed: free delivery,
gift package, booking of best sellers,
… perceived as useful to clients, and
easy to implement for the brand
-> Huge work has been performed on
the perceived value of the service
and the emotion attached to received
recognition
-> As main outcomes, the transactional reward has been set to stimulate cross-sell &
up-sell, based on offers designed as per customers’ profiles (including share of wallet)
-> Services has been deployed after internal training of « services » leaders with review
of the motivation system (especially with regards to VIP status – TBC)
26
Solution INBOX

27. Materializing the loyalty program
Package and
communication
Supports
• Supports de communication / habillage
• Ton et image du programme
• Canaux de communication
• Supports of the program : loyalty card,
recognition feature or space in shop, or
virtual card
• Transversal axis across the all members, towards which will be define differently the
different offers (rewards and materialization of the program)
• « Premium » or VIP status : promise, positioning of the brand to be worked out,
Status
description,
• Who will value what is important to you, for your clients : need to build ladder
• Communication and différenciation feature to be built
-> Recognition in store is always perceived as a strong feature of the loyalty program, it has an
strong impact on value perceived, increases the interest towards communication (emailing,
smsing, brand offers) to the detriment of standard spech price / promo
-> Aspirational status requires a clear understanding and explanation of service standards
27
Solution INBOX

28. Who buys what and for whom?
Who & What
Who are the customers buying a specific category of
product/brand or a product in particular?
What do they buy through the analysis of their
basket over a given category or across categories
Outcomes
- Targeted campaigns to gain in readability
- Personalized offers to improve the out click
- To improve the marketing mix (where & how)
- To control the match between offer and profiles
Purposes
- Drawing of cards by family of products & products
- Drawing of cards by type of customers
28
Identification of the consumer profile at a given
period for a given family of products/brands vs
overall consumers basis
Solution INBOX

29. Who buys what and for whom?
Product
category
Customers
category
Period covered
Period covered
Customer profile
Women
< 25 yo
CSP +
…
Total
45
60
22
100
Generic profile
Type of products
bought
Women
< 25 yo
PCS +
…
Shoes
Jersey
Coat
Total
55
40
34
…
100
This family of products shows a profile of
purchase with an over-representation of
young and low socio-professional (income)
class
29
45
60
12
Total
100
Generic profile
Shoes
Jersey
Coats
20
32
25
…
Total
100
This category of customers shows a profile of
purchase with an over-representation of
shoes, jersey and an under-representation of
coats.
Solution INBOX

30. Datamining to understand behaviors
Any data (available or to be acquired), being relevant, enriches the understanding of
customers behaviors and as a consequence enables the illustration of patterns and
models – share of wallet, nurture rate,... Being characterized by consumer profiles
30
Source: Inbox study for KupiVIP
Solution INBOX

31. Leading to a segmentation to target
offers as per customers’ tastes
Distribution of customers in each group
•
•
31
The segmentation was based on purchase habits; the 32 variables which represent the number
of purchases in each group we previously designed.
Developed on the basis of sample of 67 931 buyers having placed at least a purchase of two
different brands, from 01/07/2010 to 01/07/2012
Solution INBOX

32. Turning into management tool
Consumers segmentation – Purchase intents
Segment on 01/04/2011
Customers
Number
AC1
AC2
AC3
AC4
AC5
IC1
IC2
IC3
NC11
NC12
NC13
NC14
NC15
NC16
NC21
NC22
NC23
NC24
NC25
NC26
R1
R2
R3
R4
R5
To privilege
To build loyalty
To maintain
To be developed
To reactivate
All active customers
Inactive, last purchase 3-6 months
Inactive, last purchase 6-12 months
Inactive, last purchase >12 months
All inactive customers
New, One purchase, last one < 15 days
New, One purchase, last one 16-30 days
New, One purchase, last one 31-60 days
New, One purchase, last one 61-90 days
New, One purchase, last one 91-180 days
New, One purchase, last one >180 days
New, Two purchase, last one < 15 days
New, Two purchase, last one 16-30 days
New, Two purchase, last one 31-60 days
New, Two purchase, last one 61-90 days
New, Two purchase, last one 91-180 days
New, Two purchase, last one >180 days
All New customers
Registered < 15 days
Registered 16-30 days
Registered 31-60 days
Registered 61-90 days
Registered >90 days
All registered customers
ALL
32
Activity on the next 3 month
Orders
Customers with purchases
%
7 015
5 382
6 721
9 834
5 672
34 624
12 420
12 310
7 251
31 981
3 544
4 975
5 895
4 673
13 016
44 574
1 892
1 991
2 730
2 122
5 318
13 315
104 045
159 942
246 010
227 873
95 148
3 368 914
4 097 887
4 268 537
0,16%
0,13%
0,16%
0,23%
0,13%
0,81%
0,29%
0,29%
0,17%
0,75%
0,08%
0,12%
0,14%
0,11%
0,30%
1,04%
0,04%
0,05%
0,06%
0,05%
0,12%
0,31%
2,44%
3,75%
5,76%
5,34%
2,23%
78,92%
96,00%
100,00%
Number
6 005
3 631
3 577
4 045
1 836
19 094
2 875
1 369
374
4 618
1 126
867
773
538
1 148
1 507
814
574
642
382
675
745
9 791
1 123
972
1 156
574
9 849
13 674
47 177
%
Number
%
85,6%
67,5%
53,2%
41,1%
32,4%
55,1%
23,1%
11,1%
5,2%
14,4%
31,8%
17,4%
13,1%
11,5%
8,8%
3,4%
43,0%
28,8%
23,5%
18,0%
12,7%
5,6%
9,4%
0,7%
0,4%
0,5%
0,6%
0,3%
0,3%
1,1%
58 523
16 711
12 535
10 449
4 872
103 090
6 672
2 962
810
10 444
3 306
2 056
1 582
974
2 163
2 706
2 900
1 536
1 324
754
1 338
1 406
22 045
2 313
1 744
1 959
1 009
16 237
23 262
158 841
36,8%
10,5%
7,9%
6,6%
3,1%
64,9%
4,2%
1,9%
0,5%
6,6%
2,1%
1,3%
1,0%
0,6%
1,4%
1,7%
1,8%
1,0%
0,8%
0,5%
0,8%
0,9%
13,9%
1,5%
1,1%
1,2%
0,6%
10,2%
14,6%
100,0%
Solution INBOX
Per customer
9,75
4,60
3,50
2,58
2,65
5,40
2,32
2,16
2,17
2,26
2,94
2,37
2,05
1,81
1,88
1,80
3,56
2,68
2,06
1,97
1,98
1,89
2,25
2,06
1,79
1,69
1,76
1,65
1,70
3,37
Sales
RUR
%
290 734 463
73 286 834
57 169 304
44 120 711
22 776 841
488 088 153
30 127 634
13 585 684
3 644 737
47 358 055
13 207 170
7 265 635
5 928 651
3 640 809
7 996 962
9 864 663
11 505 445
5 865 299
4 753 241
2 829 497
4 964 052
5 807 124
83 628 548
9 356 934
5 819 028
6 042 423
3 515 476
53 611 330
78 345 191
697 419 947
41,7%
10,5%
8,2%
6,3%
3,3%
70%
4,3%
1,9%
0,5%
7%
1,9%
1,0%
0,9%
0,5%
1,1%
1,4%
1,6%
0,8%
0,7%
0,4%
0,7%
0,8%
12%
1,3%
0,8%
0,9%
0,5%
7,7%
11%
100%
Per customer
48 415
20 184
15 982
10 907
12 406
25 562
10 479
9 924
9 745
10 255
11 729
8 380
7 670
6 767
6 966
6 546
14 134
10 218
7 404
7 407
7 354
7 795
8 541
8 332
5 987
5 227
6 125
5 443
5 730
14 783

33. Building the yearly CRM action plan
CRM actions are integrated in the yearly marketing plan
During each action, CRM tools and communication provide support, stimulating different consumers
segments with various triggers
Trendsbrands.r
u Campaigns
CYCLE PLAN Y2012
Jan
DB type
Trendsbrands.ru
Feb
1-6 7-13 14-20
Qualitative
relational
program
News and
events
Mar
217- 141-6
28
13 20
Apr
May
June
2111- 18- 252328-31 1-10
1-8 9-15 16-22
27
17 24 30
31
1-5
6-12
Event 1
July
13- 20- 2711251-10
18-24
19 26 30
17
31
Event 2
Aug
1-7 8-14
Sept
Oct
Nov
152926- 1- 10- 17- 247- 14- 21- 28- 1- 12- 19- 2622-28
1-11 12-18 19-25
1-6
21
31
30 9 16 23 31
13 20 27 30 11 18 25 31
Event 3
Collect and save up to
30%
Get bonus for the 3rd
purchase
Get you gift with next
purchase
Welcoming messages
Brand newsletters
GIFT
More codes
Holiday
Compliment
congratulations letter
Do you know? letters
More points
Happy Birthday letter
GIFT
Invitations to events
Compliment
33
Once a year (gifts to be reserved)
1
2
Solution INBOX
Dec
3

34. How to use the analysis results?
1
2
Branded Campaigns
News and events
New seasons
«Keep or develop
awareness.
Support brand
building.
Customer’s birthday
Private sales
Relationship
anniversary
Fashion week
Store opening
8th of March
Support sales and
promotion »
Christmas
«Generate loyalty
among the right
customers.
Sales, rummage
sales
Back to school
….
Welcome pack
…
« To better serve
you » questionnaires
Keep proximity between
the brand and
customers.
Better know the
customers from the 1st
contact »
Website visits
« Keep proximity
between the brand and
customers.
Pay attention to the
events of the client's
life »
« Re-activate occasional
customers.
Anticipate renewal habits.
Actions index
« Your opinion on
the new campaign »
Grow purchase volumes
of families of goods
Motivate diversification of
purchases. »
Happy Hour
Qualitative relational
program
Transaction-based
relational program
3
34
4
Solution INBOX
14/10/09

35. The center of data treatment
Daily flow of data
Data enriching:
geomarketing, studies…
Stores
Optional
addresses
normalization
MARKETING
DATABASE
Website:
Newsletters…
On-line store
EXTRANET
Available on-line
Campaigns tracking:
reactivity indicators
(open rates, Clics,
opt-out...)
Opt’in management
FTP (automated)
Studies, customer
profiles,
segmentation
Campaigns
reporting
Reporting
Mail
routing
Campaign management,
counting tools, extraction,
targeting, personalization
SMS
routing
Email
routing

36. ANALYSIS OF THE PROFITABILITY
PER SEGMENT
36
Solution INBOX
14/10/09

37. An investment adapted to each segment
contribution
Cost of customer activation by segment
As an average, the cost of
activation per client reached
44 cent ( but 70 cents per
client active for less than 2
years)
Campaigns targeting is
based on each segment
Enabling a priority
investment onto the most
prospective segments
without forgetting the other
ones
37
0_TBC
1.59 €
1_BC
1.32 €
2_CT
1.03 €
3_CO
0.22 €
5_NTBC
1.37 €
6_NBC
0.67 €
7_NCT
0.30 €
8_NCO
4_CI
0.18 €
0.03 €
9_NS
1.41 €
Solution INBOX

38. Main lever/trigger:
To activate a maximum of buyers over a season
Active rate*
Is active a client with at least
one purchase over the
season
0_TBC
56%
1_BC
40%
2_CT
Global active rate grew from
17% to 20%
31%
43%
6_NBC
25%
4_CI
52%
29%
20%
18%
7_NCT
14%
13%
8_NCO
Active rate varies from
segment to segment but
segmentation (RFM) being
predictive allows anticipation
37%
18%
17%
3_CO
5_NTBC
Among active clients for less
than 2 years, the active rate
grew from 25% to 29%
45%
5%
5%
9_NS
24%
30%
Population Hors Zone Blanche
Population Zone Blanche
Note : Zone blanche population is a benchmark group – no sollicitation over the season
38
Solution INBOX
62%

39. Secondary lever/trigger:
To increase the average number of purchases per active client
Number of purchases per active client
Number of purchase per
client grew from 1,7 to 1,8
Number of purchase per
client varies from segment
to segment, but shows the
same dynamic across the
database over the period
0_TBC
2.0
1.7
2_CT
1.7
1.6
3_CO
1.4
1.5
5_NTBC
2.0
6_NBC
1.7
2.1
1.7
1.6
1.5
7_NCT
Loyalty program has a
stronger impact on very
good clients (TBC) and new
clients (NS) showing a good
performance in the
transformation phasis
1.8
1_BC
8_NCO
1.4
4_CI
1.5
1.4
1.4
9_NS
1.6
Population Hors Zone Blanche
1.8
Population Zone Blanche
Note : Zone blanche population is a benchmark group – no sollicitation over the season
39
Solution INBOX
2.2

40. Additional lever/trigger:
To increase the average basket
Average basket*
0_TBC
1_BC
Average basket grew from
70€ to 72€
Loyalty program is bringing
an increase in the average
basket across most of the
segments but very good
clients (TNC, NTBC) and
occasional buyers (CO, NCO)
75 €
71 €
73 €
73 €
75 €
76 €
2_CT
69 €
67 €
3_CO
77 €
73 €
5_NTBC
68 €
67 €
6_NBC
70 €
70 €
7_NCT
8_NCO
62 €
69 €
4_CI
73 €
69 €
9_NS
73 €
73 €
Population Hors Zone Blanche
Population Zone Blanche
Note : Zone blanche population is a benchmark group – no sollicitation over the season
40
Solution INBOX

41. Loyalty program is bringing up to 10 €
additional contribution per client
Yearly average additional contribution*
As an average, the loyalty
program is generating
addition contribution of 1.75
€ per client (2.73 € per
active client for less than 2
years)
0_TBC
8.15 €
1_BC
2.94 €
2_CT
2.68 €
3_CO
1.12 €
5_NTBC
All segments are
contributing to profitability
including share of inactive
9.13 €
6_NBC
2.26 €
7_NCT
1.30 €
8_NCO
The very good clients (TBC
& NTBC) are very well
impacting
4_CI
1.56 €
0.17 €
9_NS
2.90 €
* Additional contribution : Additional turnover * Margin rate – Additional costs
41
Solution INBOX

42. Make the C.R profitable
A MUST
Before, to develop the loyalty meant:
• Heavy investments without necessarily R.O.I measurement
• Choice in IT solutions without prior definition of the strategy
Nowadays, one signe will : MAKE PROFITABLE, meaning:
• To develop the turnover and reduce the churn
• To drop the commercial costs and optimize the processes
To achieve so, you need to :
Know, Act and Measure
42
Solution INBOX

43. Profitability of loyalty program
Over the last 2 years, the loyalty program is showing a constant improvement in
the additional net revenues, while being profitable from the first year :
2010/2011
2011/2012
2012/2013
2013/2014
Overall turnover
11 602 309 €
10 558 101 €
13 831 113 €
17 842 135 €
Nb cardholders
15 000
30 000
43 000
56 000
4,26
4,55
(+7%)
4,60
(+8%)
4,64
(+9%)
71€
74,5 €
(+5%)
78,1 €
(+5%)
82,9 €
(+6%)
0€
709 278 €
1 191 970 €
1 782 825 €
Additional gross margin cardholders
(50% of the additional turnover)
354 639 €
595 985 €
891 412 €
Additional costs to execute the program
- 121 248 €
- 213 176 €
- 307 267 €
-31 167 €
- 31 167 €
- 31 167 €
TOTAL COSTS
- 152 415 €
- 244 343 €
- 338 434 €
Net additional contribution from program
202 224 €
351 642 €
552 979 €
Nb of cardholders visits/year
Average basket
Cardholders additional revenues
Investment / depreciation
43
[-93 500 €]
Solution INBOX

44. The efficiency at hand
The more I buy, the
more I get!
Where
Share of profit
Greatest
effectiveness
Who
How
Share of Mind
Share of Heart
They know what I
need!
44
They take care of me!
Solution INBOX

45. Thank you for your
attention
I’m pleased to answer your questions
45
Solution INBOX
14/10/09

46. Your contact person:
INBOX RUSSIA
Mr Vincent Lootens
Executive Director
INBOX Russie
Entuziastov Schosse, 56
111123 Moscou
Тel.: +7 495 672 23 49
Fax: +7 495 786 99 22
Cell :+7 985 763 23 91
vlootens@inbox.fr
46
Your contact person:
INBOX Group
Mr Stéphane Amarsy
CEO
INBOX
30 rue Vincent Moris
Тel.: +33155480278
samarsy@inbox.fr
Solution INBOX
14/10/09