Proposed Engagement Model for CRM

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Agenda
Client Brief Objective Target Audience Strategic Approach Program Structure
Points Earning Methodology Rewards Structure Technology Integration Value Added Benefits Creative Development & Communications

Rewards Sourcing & Fulfillment Customer Helpdesk Support Data Analytics

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The Brief
MTS would like to commission a loyalty come lead generation program The program would have two phases
Phase 1 :The Loyalty phase Phase 2 :The lead generation phase (referral phase) Loyalty phase : The existing customers would be exposed to a host of benefits to ensure their loyalty and Lead genration Phase : Have a strong loyal customer base of we would use them for generating leads via a string referral incentive program

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Objective
Develop an engagement program for the existing customers to create positive experience Acquire new customers by word of mouth of brand advocates created through this engagement program

Engage existing subscribers

MTS

SUBSCRIBER

Build relationships

Generate Referrals
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Target Audience
Data Card Pre-Paid

Data Card Post-Paid

SUBSCRIBERS

Smart Phone Users

Voice based Post-Paid

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Strategic Approach
PHASE 1 Customer Engagement
1

Recognize, reward and retain the existing customers

2 Data driven marketing to engage them at oneto-one level with personalized offers

PHASE 2 Drive Referral

Drive referrals by creating positive experiences

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Proposed Program Structure

Study the database and create tiers as suggested (Diamond, Gold and Silver) Define the hard, soft benefits and value added privileges for these members Pre-enroll the existing customers (subscribers) into the program keeping their mobile number as unique identifier Any new customer registration will be processed through offline verification process Once registered, members can keep a track of points earned, burned, transaction history, redemptions, etc on a dedicated program website Segment Tiers Define Rewards Enroll Members Allocate Points Rewards Catalog Special Benefits

Next generation catalogue can be created for these members wherein they can redeem the points for exciting reward items
Once they make a redemption on the program website, the rewards will be delivered at their doorstep
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Fulfillment ENGAGEMENT

Points Earning Methodology

Average monthly spend over Rs. 500

Average monthly spend between Rs. 200 to Rs. 500

Average monthly spend below Rs. 200

Category Diamond Gold Silver

Amount Spent (Rs.) 10 10 10

Points Earned 5 2 0.5

Point % 50% 20% 5%

Points Expiry 18 months 12 months 12 months

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Rewards Structure

Rewards Structure

On Spend Value

On Subscription

Special Rewards

= Points

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Rewards on Spend Value

On Spend Value

= Points

Rewards Silver Welcome Points 500 Amount Spent Points Rs 10 = 5 Points Rs 10 = 2 Points Rs 10 = 0.5 Points Free Recharge Anniversary Bonus Points 4% of Amount Spend 3% of Amount Spend 2% of Amount Spend

Spend based Benefits Diamond Gold 2000 1000

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Rewards on Subscription
On Subscription

=
Subscription based Benefits Diamond Gold Silver

Handset Rewards Tenure 1-2 Years Up to 20% off once a year Up to 15% off once a year Up to 10% off once a year Tenure >2 Years Up to 20% off twice a year Up to 15% off twice a year Up to 10% off twice a year Birthday Rewards 25% off any handsets upto 25% off on 2 months data 25% off on 3 months data Rs. 15000 and 50% off on 3 Tenure 1-2 Years recharge recharge months data recharge 20% off any handsets upto 20% off on 2 months data 20% off on 3 months data Rs. 5000 and 50% off on 3 Tenure 2-3 Years recharge recharge months data recharge 10% off on 2 months data 10% off on 3 months data 15% off on 3 months data Tenure >3 Years recharge recharge recharge

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Special Rewards
Special Rewards

=
Special Benefits
Birthday Greetings Anniversary Gifts Online Deals and Discounts Movie Tickets New Product Previews Newsletter Priority Customer Service Customised Recharge Offers Offline Tie-ups Interest based offers Special invites for events and parties Diamond Gold Silver

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Registration Process

Assumptions:
Mobile number is a mandatory field while capturing customer data

Requirements:
We need to know the format in which MTS captures the customer data We need map multiple relationship of customer with MTS
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Points Accurals Flow

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Redemption Process

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Value Added Services Online Deals

Online shopping platform to run tactical promotions and online rewards catalogue campaigns
Ease of transactions Customised rewards Branded merchandising Customized and Personalized communications Campaign specific micro-sites

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Value Added Services Offline Discounts

Edenred has an affiliate network of more than 19000 food and gift outlets which includes national branded chain restaurants and retail stores Tie-ups can be done with national branded chain restaurants and retails stores to pass on great deals and discounts These tie-ups will include both Tier 1 and Tier 2 brands to suit the local and regional requirements

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Creative Communications
Program Communication Elements and Medium
Online Program Website Launch e-mailer Reminder e-mailer Points update e-mailer Membership upgrade e-mailer Special exclusive offers e-mailer New Product precursor e-mailer Special Invites and events e-mailer Birthday and accassion based greetings Offline Welcome DM letter Points update (along with the monthly billing) Membership upgrade letter In-shop promotion material like posters, danglers, leaflets and tent-cards Special invites and greetings SMS Launch SMS Points update Offers Invites Upgrades

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Rewards Sourcing & Fulfillment Rewards Sourcing & Fulfillment Ships over 5,000,000 personalized rewards every year to loyalty members across India alone
Delivery to over 15000 locations in India Gift sourcing & Catalogue Management Customized Catalogue

Sourcing & stock model at our own warehouse

Tracking Management & gift tracking with multiple services providers including Indian Postal Service Quick TAT Offering wide choice amongst 4000 SKUs

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Customer Helpdesk
In-house handling of all program customer queries, Online and offline support and Quick Turn Around Time
In house, dedicated & highly trained customer care team with multiple lingual

Online and offline support

(TAT) Turn Around Time of 1 Business Day

Online Applications

Offline tools

Ensured Customer Satisfaction

E-mail, Online registration,

Call Center, SMS, IVR

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2 Data driven marketing to engage them at oneto-one level with personalized offers

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Data Analytics
Data driven marketing approach will be followed throughout the program Subscribers will be filtered on predefined criteria to send out finely tuned communications and precisely targeted offers These communications and offers will be further assessed by using Accentiv Analytic tool and will be put under different baskets

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Why Analytics
To know the following: Where do these customers come from? Do they belong to a specific customer segment? What are the products bought by these customers? How many times do these customers visit your showrooms?

Who are my most valuable customers?

Which of your outlets have a higher concentration of loyal customers? What is the churn among your best customers? Which are the top 10 highest selling products? What is the product interactivity among these? How is the loyal customer behaviour changing over a period?

Van Huesen and Louis Philippe are using Accentiv Analytics to drive loyalty programs
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What would Analytics deliver

To provide flexibility in loyalty data analysis, the Accentiv analytics suite organizes the reports into several modules

Loyalty Analysis Score Card Customer Analysis

1. Modules are presented in the form of a dashboard with multiple windows. 2. Each window comes with a palette of variables and reports that meets your exact requirements, which means more flexibility for you. 3. Reports can be further diced using the filters on the side and top panels to provide different views of the same report.

Store Analysis

Churn Analysis

Product Analysis Customer Service Analysis

Campaign Analysis

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Sample Reports: Loyalty Analysis

Customer Value Category analysis Top 20 / 30 / 50 customer vs their contribution Yearly comparision on customers, revenue & average revenue Alerts on above yearly comparison analysis Top/Bottom Customer performance report Supporting data report for Communication / Transactional Summary

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Sample Reports: Loyalty Analysis

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Sample Reports: Churn Analysis

Time frame based customer churn analysis Qtrly, Monthly, Day based churn analysis

Further drill down on various brackets (i.e. Freq, Store Visit, Customer Value)
Enrollment vs Repeat churn analysis Repeat vs Enrollment churn analysis

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Sample Reports: Store Analysis

Demographic based store performance analysis Top/Bottom store performance report Yearly comparison of store analysis along with alerts Store vs Product performance analysis combined with segmentations

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Sample Reports: Campaign Analysis

Campaign based store performance analysis Campaign based customer contribution analysis Campaign based product contribution analysis Campaign based demographic wise store/product/customer contribution analysis

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Sample Reports: Composite Ranking

Fresh Soup Composite Ranking

Total Category : Fresh Soup

w/e May13 2011 13.08

100.0

Rs 118.70

% of Metro shoppers Product buying SIMPLY ORGANIC CHNKY VEGETABLE 0.26 SIMPLY ORGANIC LENTIL&PARSLEY 0.18 DUCHY ORIG TOMATO&ROSEMARY SOU 0.08 "DUCHY ORIGINALS CELERIAC LEE 0.07 DUCHY ROASTED ROOT VEG SOUP 60 0.08 SO TOMATO & BASIL SOUP 0.32 SO CARROT & CORINADER SOUP 0.25 SO LEEK & POTATO SOUP 0.10

Rank 39 45 60 67 62 37 41 56

Loyalty : % of Category spend on the SKU Rank 29.3 2 23.6 5 25.0 3 24.1 4 21.7 16 20.8 22 21.1 19 16.2 46

AWP Rs of JMetro Shoppers Rs 5.31 Rs 4.93 Rs 4.26 Rs 4.43 Rs 3.83 Rs 2.90 Rs 2.54 Rs 2.13

Rank 1 2 6 5 11 32 39 51

Change in Total of Composite Ranking Rankings Ranking Yr on Yr 42 4 -1 52 7 1 69 16 -4 76 21 11 89 27 New 91 31 8 99 33 5 153 56 5

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Accentiv Analytics How to access?

URL www.accentivanalytics.com, below is the login page

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Loyalty Engine: LISA - Key Strengths

Web based technology platform that provides the business logic and technology essential for implementing and managing a loyalty program Highly proven and robust platform track record of 98% uptime

Capture Customer Info & profiles Analyze Data for new initiatives Track Customer Behaviour

Manageability of campaigns 500 to 5mn or more members with the flexibility to run multiple reward programs simultaneously

LOYALTY ENGINE

Evaluate ROI & Performance Communicate 1-to-1 at all touch points

Manage Points & Redemptions

Modular engine & Quick Deployment

Performance tracking Comprehensive reporting module allows measurement of program performance

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LISA Modules

Capture & Management Member Information

Member Management

Bulk creation / update of member profile Member tiers, approvals

View / Modify member transaction

Transaction Management

Bulk upload of member transaction Invoice processing System

Campaign / Bonus points

Points Management

Batch process of points Expiry points

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LISA Modules

Create regular or time based catalogue

Catalogue Management

Create tier based catalogue Schedule changes of points or price

View / Modify member redemptions

Redemption Management

Track redemption status Offline redemption process

Create / modify email templates

Communication Management

Send communication to individual or group Send communication based on rule

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LISA Modules

Create regular or time based catalogue

Product Management

Create tier based catalogue

Schedule changes of points or price

Create / Modify survey

Survey / Poll Management

Create / Modify Polls Generate reports for Survey / Polls

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Phase 2

PHASE 2 Drive Referral

3
Drive referrals by creating positive experiences

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Referral Program The Multiplier Effect

Engagement program facilitated positive experiences amongst the existing subscriber base In phase 2, we need to leverage these positive experiences and ask for referrals to bring in incremental business

Dig deeper using Data Analytics to know which segment has given the maximum references and how many got converted Launch the referral program and create more points and rewards earning opportunities for the members
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Referral Program Approach

Engagement program for 50000 existing subscribers 1500 Enrolled Members (3% of total existing base) in the engagement program Identify the best customers using data analytics and launch a referral program for them

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Referral Program Communication

Communication Emailer SMS Telecalling Direct Mailer

Entire Database (50,000)

Enrolled Members

Best Customers

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MLM Model
Assumptions: Mobile number / emailid provided by Referrer will remain same Business process remains same (600 on level one, 120 on level two and 24 on level three.)

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Recommendations

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The Multiplier Effect

More earning opportunities without spending a single rupee Points Multiplier Rewards Multiplier Milestone Multiplier Multiply Points Multiply Rewards

Members can choose to participate in either one of these or 2 of these or all of these multipliers to give referrals
All the referrals must be unique across the multipliers A member can refer 15 of his/her friends if he/she participates in all 3 referral schemes

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Points Multiplier
These referrals will be value based referrals Each member will be allowed to give maximum of 5 referrals Depending on the value MTS gets out of these referrals on conversion, members will be given 10% of total value generated in the form of points The payout will be multiplied with number of conversions e.g. if out of 5 only one gets converted then only 10% will be given out, if 2 gets converted then 20%, if 3 gets converted then 30% and so on The payout will also be according to the tier a member belongs to

More earning opportunities without spending a single rupee

Multiply Points Multiply Rewards

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Points Multiplier Framework

Diamond Converted Existing Customer Referred Customer 1 Referred Customer 2 Referred Customer 3 Referred Customer 4 Referred Customer 5 Total Points X X Value {1599*10%} 160 160 X X 160 480 Points (50%) 80 80 X X 80 240

Gold Converted
Existing Customer Referred Customer 1 Referred Customer 2 Referred Customer 3 Referred Customer 4 Referred Customer 5 Total Points

Value {1599*10%} 160 160 160 160 160 800

Points (20%) 32 32 32 32 32 160

Silver Converted Existing Customer Referred Customer 1 Referred Customer 2 Referred Customer 3 Referred Customer 4 Referred Customer 5 Total Points X X X

Value {1599*10%}
160 X X X 160 320

Points (5%)
8 X X X 8 16

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Rewards Multiplier
These referrals will be volume based referrals Each member will be allowed to give maximum of 5 referrals Depending on number of conversions, members will be given exciting reward items The reward value will get multiplied with number of conversions e.g. if out of 5 only one gets converted then only a cross pen will be given out, if 2 gets converted then a higher value reward, if 3 gets converted then even higher value reward and so on The reward value will be equal across all tiers

More earning opportunities without spending a single rupee

Multiply Points Multiply Rewards

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Milestone Multiplier
These referrals will be milestone based referrals e.g. if a member has 500 points and he aspires to get to 700 points to redeem his favorite watch then all he needs to do is give referrals and on conversion he gets fixed points Each member will be allowed to give maximum of 5 referrals Depending on number of conversions, members will be given fixed points The point payout will get multiplied with number of conversions e.g. if out of 5 only one gets converted then only 50 points will be given out, if 2 gets converted then 100 points, if 3 gets converted then 150 points and so on The milestone value will be fixed across all tiers More earning opportunities without spending a single rupee
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Multiply Points Multiply Rewards

Process

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Process

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Thank You!
For more information, you can get in touch with: <Neha Mahajan>at <neha.mahajan@edenred.com>

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