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On the surface, daily low-price advertisements in Wal-Mart supermarkets contradict the value of getting more customers in CRM. But in fact, Wal-Mart’s low-price strategy is the core of its CRM. Unlike the previous “make-to-order” approach, winning at “price” is the ultimate goal of all Wal-Mart’s IT investments and infrastructure.
Case 1: American Wal-Mart Supermarket
The most interesting example provided by CRM data mining is the story of Wal-Mart beer plus diapers.
Generally speaking, beer and diapers are completely different products for the customer base. But the results of Wal-Mart’s data mining within a year showed that in residential areas, store beer that sold well in diapers also sold well. The reason is actually very simple. Generally, when a wife asks her husband to go downstairs to buy diapers, the gentlemen usually treat themselves to two cans of beer. Therefore, the opportunity to buy beer and diapers together is the most. This is a secret discovered by an intelligent information analysis system for modern shopping malls. This story is recognized as the birth of data mining in the business field.
Wal-Mart can collect the most detailed customer information across multiple channels, and can create a flexible, high-speed supply chain information technology system. Wal-Mart’s information system is the most advanced, and its main features are: large investment, complete functions, fast speed, intelligence and global networking. At present, the connection and data between Wal-Mart China and the US headquarters are transmitted through satellites. Most of the systems used by Walmart America have been fully applied and developed in China. The systems that have been successfully implemented in China include: inventory management systems, decision support systems, management reporting tools, and scanning point-of-sale record systems. These technological innovations have allowed Wal-Mart to successfully manage more and more business units. When Wal-Mart’s stores doubled in size, they spared no effort to promote new technologies to the market. More prominently, with the help of RFID technology, Wal-Mart can automatically obtain purchase orders. More importantly, the RFID system can automatically issue purchase orders to suppliers when the inventory is almost exhausted.
In addition, the technological innovation that Wal-Mart intends to introduce to China is a “retailer connection” system. The “retailer contact” system enables Wal-Mart to share business information with major suppliers. For example, these suppliers can get relevant product-level data, observe sales trends, inventory levels, and order information and even more. Through information sharing, Wal-Mart can work with suppliers to improve business development and help suppliers to grasp more initiative in the continuous expansion and growth of their business. Wal-Mart’s model has crossed the scope of internal enterprise management (ERP) and “communication” with the outside world, but has formed a global supply chain that links manufacturers and customers with itself as the chain owner. Wal-Mart can participate in the production planning and control of upstream manufacturers, so it can quickly reflect consumer opinions in production and develop customized products according to customer needs.
On the surface, daily low-price advertisements in Wal-Mart supermarkets contradict the value of getting more customers in CRM. But in fact, Wal-Mart’s low-price strategy is the core of its CRM. Unlike the previous “make-to-order” approach, winning at “price” is the ultimate goal of all Wal-Mart’s IT investments and infrastructure.
Case 2: German Metro cash-and-carry shopping mall
The German Metro Group (METRO) is currently the third largest trade and retail group in Europe and the fifth largest in the world. It has six independent sales formats. Among them, Metro C&&C is the most competitive and distinctive. Its sales It accounts for about 50% of the group’s sales, ranking first among the world’s major cash-and-carry commercial groups, and has an absolute advantage. The Jinjiang Metro Cash & Carry Co., Ltd. invested and built by Metro Group in China has opened 26 cash-and-carry shopping malls in China. In just ten years, it has attracted more than 3 million members and has become increasingly large.
The consumer group that Metro faces is not individuals and families, but through the form of a membership system, it locks in terminal retailers, government agencies and institutions that have the ability to buy in bulk.
One of the key factors for the success of the membership-based cash-and-ship system is its powerful customer relationship management system and solid data analysis technology that is far ahead of its local competitors. The high integration of the GMS customer management and product query system with the customer development department (CC) and even the entire mall has contributed to Metro’s success to a large extent.
GMS customer management and product query system leading peers
All Metro cash-and-carry shopping malls in the world adopt the “GMS customer management and product query system” customized and developed from ORACALE. The computer manages and controls customer data, product sales and inventory data, and can automatically be based on historical data. Predict sales, formulate purchase plans, generate orders, and have powerful functions. It is second only to Wal-Mart’s decision support system in the global retail trade group, and provides powerful information support for the development of comprehensive customer relationship management. Each shopping mall has set up an EDP computer department, responsible for the daily maintenance of the GMS system. The research report form is one of the main daily work contents of all levels of management.
Various annual, quarterly, monthly, weekly, and daily sales reports generated by the GMS system, including inventory reports, total sales reports for each period, sales statistics reports for each period, sales comparison reports for various products in the same period of each year, and categories for the same period of each year The comparison report of the number of customers and the number of bills, the horizontal and vertical sales comparison report of each time zone, the revision report, the product modification list, etc., integrate the data into useful information from multiple angles, which can be used by shopping malls and headquarters to predict demand, adapt to changes, and provide customers An important basis for timely response to goods and services.
The interface of GMS customer management system includes customer unit number, name, address, telephone number, fax number, card holder name, card issuance date, customer type, annual statistics of purchase amount of various commodities, detailed purchase records, etc.
The interface of the GMS product query system includes product number, product description, supplier number, supplier description, price, arrival date, arrival quantity, total sales volume, inventory, value-added tax rate, whether it is in the advertising period, whether it is a monopoly product, whether Detailed information on retail products, whether to limit products, minimum order quantity (weight, volume), valid days, sales department, type, and ordering suggestions.
Each customer’s purchase behavior is automatically recorded in the system by scanning the barcode of the product by the POS. Dynamic product data such as inventory and related purchase information are automatically generated, enter the product management system, and generate customer purchase information at the same time, and enter the amount and type into the system. Customers’ purchase statistics.
Since the GMS system is connected in real time between the various departments of the shopping mall, each shopping mall, each regional headquarters, national headquarters and German headquarters, and generally has two versions in English and the language of the country where it is located, it is very convenient to view the data, which is more convenient for the group’s senior management to grasp and control Global.
Full coordination between people and system
The manual and automatic systems are fully coordinated and coordinated. The customer development department of the Metro cash-and-carry shopping mall is supported by the GMS system, which not only serves as an information bridge, but also focuses on providing professional customers with high-quality products and system business at the lowest possible price. The management purpose of the plan fully reflects the advanced customer relationship management thinking of developing together with professional customers and creating a win-win situation, which is different from similar departments in other shopping malls.
The Customer Development Department (CC) is an important portal for Metro’s cash-and-carry shopping malls for customer relationship management. In order to fully guarantee the GMS system for more effective customer relationship management, Metro’s customer developers will call the “ME600 form” before going out to visit customers every day. 》, check the customer’s historical consumption records in the mall, including consumption time statistics, category statistics, amount statistics, maximum transaction volume, etc., and make a recommended purchase plan for the customer in advance based on the commodity prices in the mall during the period, often proactive and timely To meet customer needs. For bulk customers, the GMS system has more detailed sales statistics and analysis techniques. In addition, customer developers must formulate detailed customer development plans every day, every week, every month, and every year based on various sales reports generated in real time by GMS. Sales growth, adjust the plan at any time. At the end of the work day, the customer developer must fill in various forms according to the visit to update the customer profile data and sales suggestions in the GMS system. And provide targeted services and information support.
Metro also actively establishes stable information channels, and promotes information feedback through telephone interviews, interviews with consultants, mailing Metro Post, letter contacts, customer exchange meetings and other forms to promote information feedback, understand the market, and revise its business strategies and management decisions.
Case 3: Tesco, the largest retailer in the UK
Tesco (Tesco) is the largest retailer in the UK and the third largest in the world, with an annual revenue of 20 billion pounds. Tesco leads its peers in customer loyalty and has more than 14 million active cardholders. Tesco is also the most successful and profitable online grocery supplier in the world. By 1999, the number of online shopping customers was 250,000, online operating income was 125 million, and the profit rate was 12% (the general profit of the retail industry was 8%). Tesco recently invested 3. The acquisition of 90% of China Tesco’s shares by 200 million pounds is the largest acquisition by a foreign retail giant in China, and it has entered the Chinese market on a large scale.
Tesco, like Wal-Mart, is at the forefront of using information technology for data mining and enhancing customer loyalty. Analyze the purchasing preferences and consumption patterns of each card member through the combination of magnetic stripe scanning technology and electronic membership cards, and design personalized quarterly communications for different sub-groups based on these analysis results.
Tesco’s worthwhile method is the brand co-branding program, which is to jointly launch a customer loyalty program with several competitive brands. Tesco’s membership activities provide various rewards for different groups, such as “MeTime” for housewives. (“My time is the master”) activities: Family women can accumulate points in daily purchases in exchange for free experience or significant discounts from local high-end beauty and hair salons to designer clothes.
Moreover, Tesco’s membership card is not a loyalty program that simply collects points for rewards. It is a combination of information technology, creating and analyzing a consumer database, and using this to guide and obtain more precise consumer segmentation, and more accurate Customer insights, and a more targeted marketing strategy customer relationship management system.
Through this process, Tesco has identified 6 subdivided groups according to consumers’ buying preferences; 8 subdivided groups according to life stages; 11 subdivided groups according to usage and purchase speed; and according to purchasing habits and The target group subdivided by behavior model reaches as many as 5000 groups. The benefits it brings to Tesco include:
More targeted price strategy: some price discounts are only provided to groups with high price sensitivity;
More selective procurement plan: the composition of purchases is formulated according to the composition of consumption reflected in the database;
More personalized promotions: Tesco has designed different quarterly newsletters for different sub-groups, and provided different rewards and consumption stimulus plans. Therefore, the actual usage rate of Tesco coupons reached 20%, instead of the industry average of 0.5%;
More intimate customer service: Detailed customer information allows Tesco to provide special services to key customers, such as configuring personal shopping assistants for pregnant women;
More measurable marketing effects: marketing campaigns for different sub-groups can see the effects of campaigns from the changes in their purchasing patterns;
More convincing market research: The sample collection of the basic database is more accurate;
The result listed above is naturally the improvement of consumer satisfaction and loyalty.
Case 4: Watsons Personal Care Store
Watsons is currently the largest personal care product chain in Asia and one of the world’s largest retailers of health and beauty products and perfume and cosmetics. In the field of “personal three-dimensional care and care products”, Watsons not only gathers many top brands in the world, but also develops and produces more than 600 kinds of its own brands. The total number of stores in mainland China has exceeded 200.
In the CRM strategy, Watsons found that in the increasingly homogeneous competition of the retail industry, how to target customer groups is crucial.
Watsons longitudinally intercepts part of the high-quality customers in the target consumer group, horizontally refines, refines, and focuses on the target customer market. It advocates the business philosophy of “health, beauty, and joy”, and focuses on the 18-35-year-old young female consumer group. Operation of personal care and health products. Watsons believes that female consumers in this age group are the most challenging. They like to use the best products, seek novel experiences, pursue fashion, and are willing to show themselves in front of friends. They are more willing to use money to bring big changes to themselves, and they are willing to make various new attempts. The reason why we pay more attention to consumers under the age of 35 is that most of the older women already have their own fixed brands and lifestyles.
In-depth research on the psychology and consumption trends of target consumer groups, private-brand products consider customer needs in all aspects from quality to packaging, while reducing product development costs and creating price advantages.
Relying on its own brand products to master the abundant upstream production resources, “Watsons” can feed back the information of the terminal consumer market to the upstream production enterprises as soon as possible, and then continuously adjust the products. From the selection of raw materials to packaging, capacity and pricing, almost every link is based on the needs of consumers, so the goods provided are like tailor-made for target customers. Even a bottle of distilled water, whether in shape or color, you can see the difference between “Watsons” and other products.
Private brands are a unique category in Watsons stores. Consumers who patronize Watsons not only purchase products from other brands, but also purchase Watsons private-label products. Every time a private-brand product is launched, it is guided and fundamentally based on the needs of consumers, and continues to bring consumers fresh ideas. Through its own brand, Watsons is directly dealing with consumers at all times, can timely and accurately understand consumers’ various demand information for products, and can analyze and grasp the marketability of various products in a timely manner. In the process of implementing its own brand strategy, retailers put forward new product development and design requirements. Compared with manufacturers, it has the characteristics of short product project development cycle and less disconnection between production and sales, which reduces risks while reducing product development costs. Also created a price advantage.
“Buy expensive, refund the difference” and “I dare to swear to guarantee low prices” are one of Watsons’ price strategies, but Watsons also enhances brand value through differentiation and personalization, and has not always taken the low-price route completely. Watsons recently launched a VIP card to strengthen customer value management. With the VIP card, you can redeem shopping points and points for any goods in the store, bi-weekly VIP special offers, and some products enjoy a 20% discount. Members will receive a point reward for every ten yuan of purchases, and each point is equivalent to a consumption amount of 0.1 yuan. You can redeem at will, there are a variety of products for you to choose from, and you can also accumulate to experience the fun of redemption with higher value. There are also offers such as extra points products, VIP discounts and VIP exclusives. I believe it will bring more consumer pleasure to customers.
Case 5: Suning Appliance, a home appliance digital chain company
Suning Appliance is a leader in China’s 3C (home appliances, computers, communications) home appliance chain retail enterprises. As of the end of December 2005, Suning Appliance had nearly 300 chain stores in more than 90 cities in 27 provinces and municipalities in China, with more than 70,000 employees. According to statistics from the Ministry of Commerce, Suning Appliance’s sales in 2005 were nearly 40 billion yuan. Suning Appliance is one of the 20 large-scale commercial enterprise groups in the country.” Suning’s informatization work is even more commendable. It was selected as one of the “Top 500 Chinese Enterprises Informatization in 2005” and ranked 45th, becoming one of the top 100 companies. The only retail company selected. Suning’s information platform with SAP/ERP as the core is the first in the domestic commercial retail field.
Real-time online management of purchasing, warehousing, sales, finance, settlement, logistics, distribution, after-sales service, and customer relationship based on the ATM private network. To adapt to the requirements of managing and processing the increasingly huge market data, establish a comprehensive, unified and scientific daily decision-making analysis report and query system. Effectively control logistics inventory, greatly increase the speed of turnover, reduce the occupation of inventory funds, and make inventory timely and effective. Computer area distribution and dispatch. Improve the after-sales service system (delivery management, installation management, maintenance management) to provide a strong basic service platform for the customer service center. Through modern analysis methods such as multi-dimensional analysis model and product life cycle analysis model, comprehensive use of data warehouse, online analysis and processing, data mining, quantitative analysis model, expert system, enterprise information portal and other technologies, provide services necessary for the operation of home appliance retail industry Analyze decision-making models and tap the potential value of data.
The industry supply chain built by BtoB, BtoC, and bank-enterprise direct connection has realized digital marketing. Established collaborative working relationships oriented to consumer demand and market competitiveness with suppliers such as Sony and Samsung. Knowledge management and database marketing have become the basic work methods, marking that the supply chain management of China’s home appliances and consumer electronics products extends from the upstream manufacturer’s manufacturing link to the retail channel link. Suning, Sony and Motorola took the lead in realizing B2B docking, and the B2B docking with upstream companies such as LG, Samsung, Haier, etc. was completed, and the information system that links up and down the industry value chain is beginning to take shape. Based on the sales information platform, the supply and marketing parties decide to purchase supplies and terminal promotions, realize the function of supplier management inventory, strengthen the cooperation of industrial chain information, establish an e-commerce platform and the existing SAP/ERP system to perfectly integrate, inter-industry B2B docking, orders, Real-time transmission and exchange of data such as shipment, warehousing and sales summary, greatly reducing business communication costs; establishing a complete customer service system and information data collection, mining, analysis, and decision-making system, analyzing consumption data and consumption habits, and integrating the research results Feed back to the upstream production and ordering links for sales and production.
Suning customer service centers in more than 100 cities across the country have built a centralized and distributed customer relationship management system using internal VOIP networks and call center systems, and established 50 million customer consumption databases. Establish video, OA, VOIP, and multimedia monitoring to form an enterprise auxiliary management system, including image monitoring, communication video, information gathering, command and dispatch, intelligence display, alarm and other functions, real-time image monitoring of national chain stores and logistics centers, headquarters and large areas The remote multimedia monitoring center is responsible for real-time monitoring of the operation of chain stores, logistics warehouses, after-sales outlets and important places, and the all-round remote management of the national chain network “without leaving home”.
It has realized full membership sales and cross-regional and cross-platform information management, unified inventory, unified customer information, and implemented one-card sales. Suning realized the simultaneous operation of more than 20,000 terminals, which greatly improved management efficiency. The customer service centers in Suning are all based on the CRM system. The customer service center has a large set of information systems such as CRM. The CRM system will automatically answer the language, intelligent queuing, online calls, voice mail, fax and language recording functions, email processing, automatic screen pop-up, report functions, integrated Chinese TTS conversion Functions, integrated SMS short message service and many other functions are incorporated into it, and a unified external service and a comprehensive and intelligent internal management platform covering the whole country have been established.
Relying on the digital platform, Suning’s membership system services have been fully upgraded, and the storefront has been upgraded to a membership system (CRM) sales model, which greatly simplifies the shopping process for consumers and facilitates customers. Now, accumulated points can be used to offset cash, which has become an important factor for Suning to attract consumers. At present, Suning has launched special services such as member-priced products, member alliance merchants, and member-specific services for member consumers.
For example, after a certain product is limited to a special offer, the customer honor card records the customer’s information, and Suning can notify these customers who are interested in buying the product in advance, and give them the discount, without them having to line up.
In addition, Suning’s personalized discounts for customers have become practical. For example, Suning can directly give cash discounts to certain customers with good purchase records, or package them for bundled sales according to the other’s buying habits. These all bring practicality to customers. benefit. Moreover, the profit is visible and real-time, which is more beneficial than large-scale untargeted promotion.
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