Transcript Collaborative CRM

Collaborative
Consumer Relationship Management
Building Differentiation
through
Mass Customization / Relationship Marketing
Many markets experience deflation in grocery prices......
•Absolute change in real grocery prices, 1993-2001
•% Constant money
• U.K.
• Germany
• Italy
• Spain
• U.S.
• France
Source: WEFA (National Statistics Institutes and OECD)
-7.9
-6.0
-3.8
-1.7
0.3
0.6
‘Collaborative CRM’ answers key business questions....
• HOW to improve shopper and consumer understanding,
and translate it into winning market strategies
• HOW to move from mass marketing into mass
customisation into relationship marketing; and WHY.
• HOW to differentiate beyond Price
Recognizing that CRM strategy is only one of several
possible business differentiation strategies...
Business Differentiation
Strategy
Mass / Scale / Price
Segments / Loyalty
Individuals / CRM
CRM area
Manufacturer-Retailer Relationship types
(based on Consumer Relationship types)
C-CRM Area
Individual
Relation
Segment
Customized
Manufacturer driven
Optimize personalized
consumer value offer in
Retailer
Manufacturer Driven
Work most attractive
segments with retailer
Manufacturer driven
insights into lead
consumer needs
Long-term
Integrated strategy
Collaborative
strategy for
relevant
segments
Retailer driven
Cherry picking of
manufacturers offers
Manufacturer
Strategy
Mass
Depending on both
sides’ consumer
strength
Traffic creators
Mass
Retailer selects
offer for segments
Retailer driven
Personalized shopper
value offer
Segment customized
Individual relation
Retailer Strategy
Example Tesco:Walking away from your competition….
Affluence
Based on deeper shopper and consumer understanding......
Upmarket
24%
Finer Foods 18%
“Foodies who are time
poor, money rich and
choose everyday luxury
items”
Healthy 18%
“Organic shoppers,
fruit and vegetables
weight watchers etc”
Convenience 9%
Mainstream 22%
“People on the go who
haven’t time or inclination
for scratch cooking”
Family type meals
Popular brands
Kids products
Mid-market
53%
Traditional 17%
“Traditional housecraft
with time to buy and
prepare ingredients”
Price Sensitive 16%
Cost conscious customers
who tend to buy cheapest on
display
Cost conscious
23%
Age
Why should ‘Collaborative CRM’
become a priority for ECR Europe ?
Definition of Collaborative CRM by ECR Europe:
“Collaborative CRM is an integrated ECR demand management
strategy, which helps manufacturers and retailers to jointly
recognise and value consumers’ / shoppers’ individual needs,
and tailor their offers to them.”
Doesn’t Collaborative CRM compete with Category Management ?
Phase 1
Up-front strategy phase,
performed across all
categories, allowing a
retailer to effectively
manage all (~200) of its
categories.
Phase 4
On going tracking and review
of the implemented category
plan by retailers and suppliers
ensures that the jointly agreed
targets are being met.
Automation of this phase will
truly bring the process into a
day to day environment .
Phase 2
Development of the
category plan.
Retailer
Strategy
Review
Develop
Category
Plans
Implementation
Phase 3
This phase focuses on in
store implementation.
Additional implementation
guidelines are included
within the planning phase
thereby increasing the
likelihood of
implementation success.
ECR Europe Collaborative CRM ROADMAP
STRATEGIC ALIGNMENT
-Scope
-Methodologies
-Stakeholders
-Choices on resources
-Rules for collaboration
ASSESSMENT
-the business challenge
-state of capability
-state of mind on cooperation
With trade partners
CRM ENABLING COMPONENTS
COLLABORATIVE
BUSINESS PROCESS:
SEGMENTATION
SHOPPER KNOWLEDGE BUILDING
OBJECTIVE SETTING AND KPI’s
JOINT BUSINESS PLANNING
IMPLEMENTATION
MONITOR
LEARN/IMPROVE
Organization
Communication channels
Data
Systems
The deliverables
• Increased Store AND Brand Loyalty through increased Consumer
Satisfaction
• Less waste and more effectiveness of marketing and promotion
spending through more targeted marketing programs
- today more than 70% of promotion spending delivers less than 20 % of
promotional volume uplift…
• Improved margin mix, reflecting the place of price in the hierarchy
of needs for different shopper segments.
sustainable profitable growth
through
shopper focused differentiation
Why should ‘Collaborative CRM’ become a priority
for ECR Europe ?
•
Our FMCG industry needs to re-gain consumers’ share of wallet (life)
•
Collaborative CRM is a key demand strategy to facilitate value added market
differentiation, and therefor FMCG growth.
•
To break away from current confusion around CRM, ECR Europe needs to steer
codification and harmonisation of CRM process, data definitions,and tools across
our industry.
•
Currently available tools and data are not used appropriately …by lack of insight on
how to use them to create value. (loyalty card data, shopper and consumer research, coupon
systems, direct mail …) ECR Europe to facilitate development/sharing of ‘Best Practices’
•
To drive business acceptance and ‘ownership’ of CRM; out of hands of consultants
and I.T. providers.
•
The Business cases for Berlin demonstrate growth results from 15% up to 200% on
total store to category level.
IN SHORT: ‘TO SERVE CONSUMERS BETTER.......’