To improve customer engagement, the retail chain needed to upgrade marketing and loyalty management. The retailer radically transformed these aspects after the implementation of SAP solutions.
Client
One of the leading chain stores in Uzbekistan.
The company includes 80 retail outlets and more than 5K employees.
Challenge
To improve customer retention, the retailer decided to rethink marketing processes and loyalty programs. For these changes, the company needed a new software. Previously, marketing department used in-house software. However, the system lacked the important functions, in particular customer data collection, audience segmentation and message automation.
To address the gaps, company decided to implemet SAP solutions. The company made such decision because its internal ERP system also operated on the SAP basis. In order to seamlessly transfer data between internal systems, the business chose the same software vendor.
Solution
At the beginning of the project, company opted the SAP products to adress the company’s needs:
- SAP CRM Loyalty - Customer data collection and loyalty management;
- SAP Marketing - Customer segmentation and omnichannel communication;
- SAP Business Warehouse - Data analysis and reporting.
SAP CRM Loyalty
SAP CRM Loyalty stores at the unified platform customer data from surveys and POS-systems. Thus, it includes:
- demographics (age, family size, profession, place of residence);- purchase history (place of purchase, average transaction size, favorite items, numbers of deliverings).
In the system, marketers keep track of trends in customer behavior. Similarly, they can review individual customer journeys in real-time.
In SAP CRM Loyalty specialists run business processes, such as planning loyalty programs, managing member activities and setting reward rules.
Retail chain integrated its own app and a Telegram bot with SAP CRM Loyalty. As a result, clients can view their purchase history and check accumulated points.
SAP Marketing
SAP Marketing solution helps manage advertising activities. The system provides with a marketing calendar showing planned and current events. Specialists can assign tasks, store campaign templates and automate approval processes.To launch a marketing campaign, specialists used to reach programmers. Now the SAP solution allows them to do it on their own.
SAP Marketing allows the company to manage customer communication across multiple channels: sms, Telegram bot and push notifications from the app.
Marketers employ comprehensive customer data in promotional activities due to the integration between SAP Marketing and SAP CRM Loyalty systems. It enables to address topical messages for target audiences and carry out hyper-personalized communication. For these purposes, company uses 50 segmentation attributes that include:
- the sum of client transactions over a period;
- the number of sent/read messages;
- the most suitable time to send push notifications;
- the amount of redeemed points at a date.
SAP Marketing provides statistics on a campaign results like conversions, KPIs and other metrics.
SAP Business Warehouse
SAP Business Warehouse (BW) helps process high-volume customer data, analyse it and create reports.
Specialists use SAP BW on a daily basis to evaluate cash receipts reports. They also review trends in sales by analyzing data by the following categories:
- items and product groups;- customer characteristics (gender, location, marital status, profession, etc.);
- visited shops in the chain;
- the type of loyalty card.
Users can narrow a report and get the information about a specific group or a person.
IT department verified the data accuracy of the SAP BW reports. So, the system users don’t spend extra time to verify each report.
Results
- The customer division carries out 80-90% of daily tasks in SAP CRM Loyalty.
- The marketing department runs advertisement campaigns faster due to the unification of the three communication channels (sms, Telegram bot and mobile app) to the single platform.
- Marketers launch personalized campaigns based on a real-time customer behavior.
- Specialists accomplish time-consuming tasks such as segmentation, data analysis, reporting faster.