02 harrodsv [e doc_find.com]

How Harrods Understands, Anticipates and Inspires

its Customers

“Anything is Possible…”

David Llamas, Harrods

Introduction to Harrods

The Harrods Challenge

Harrods Information Systems Strategic Alignment

Customer Centric Initiatives

Empowering the Future

Lessons Learnt

AGENDA

RETAIL BUSINESS OUTLOOK OF 2002

RETAIL Issues

Thin margins

Competitive pressure

Building loyal customers

Multi-channel offering

HARRODS Issues

Product and process diversification

Ultimate customer service

Limited geographical expansion

Online opportunities for a Global Brand

PROCESS Issues

Business processes were slow and inefficient constraining the business scalability

Systems were highly unreliable causing business disruption

Information quality was poor and limited


ANYTHING IS

POSSIBLE

HARRODSDRIVERS

RETAILDRIVERS

PROCESSISSUES


Guarantee availability and reliability of service

Improve IT Service Levels

Infrastructure Refresh

PHASE 1 Overhaul of legacy systems – 4 years

PHASE 1 – Service Levels

2003 2004 2005 2006 2007 2008


Support scalability;

Improve productivity & control operating costs

Operational Efficiencies

IT Solutions Simplification

PHASE 2 Back-office & front-office consolidation program – 4 years

Process

Simplification

Productivity

Cost Control

Scalability

2003 2004 2005 2006 2007 2008

PHASE 2 – Operational Excellence



Sustainable growth on multi-channel initiatives

Provide a Flexible and Agile Systems Infrastructure

PHASE 3 Introduction of a Flexible Multi-channel IT architecture – 2 years

PHASE 3 – Flexibility & Agility

2003 2004 2005 2006 2007 2008




Improve profitability and availability of product

Increase customer spend and optimize marketing expenditure

Business Decision Making Optimization

PHASE 4 Move from traditional reporting to the predictive enterprise – 3 years

PHASE 4 – Strategy Focused

2003 2004 2005 2006 2007 2008

PHASE 3 – Flexibility & Agility



AGENDA






Lessons Learnt

“Anything is Possible…”

The Harrods Customer Challenge

UNDERSTAND Our Customers

Who are Our Customers?

What, When, How, Why do they shop with us?


ANTICIPATE Our Customers

What can we do to ensure that our customers are retained?

How can similar customers be attracted?

How can the overall customer profitability be improved?

How can the right customers be targeted at the right time with the most

appealing merchandise and marketing strategies?


INSPIRE Our Customers

Enhance the customer shopping experience and exceed their expectations

Customer Centric Strategies

Customer Information Management

Data Quality issues… Recognize your Customer!

How do we provide a UNIFIED Brand Experience across all

Channels… Information sharing

Customer contact Strategy

Harrods Customer Segmentation

What type of customers do we have?

What are their preferences and shopping behaviors?

A more Personalised Customer Shopping Experience

Harrods by invitation and personal shopping

Clienteling

Harrods Rewards Program


Single Customer View is a pre-step to a robust multi-channel retail CRM

architecture… “Having a database of customer records is just data, having a

clean and accurate database of customer records is INFORMATION”

Data Analysis


Harrods Single Customer View Solution

Multiple

Channels

In-Store Call Centre Internet Customer Service Loyalty Station

Enterprise Service Bus

Data Management

Confirm LinkConform Compose

http://creative.gettyimages.com/source/Search/15','1','V81

http://creative.gettyimages.com/source/Search/21','2','

http://creative.gettyimages.com/source/Search/52','2','


Customer Groups

UK Spenders

Jet-Set Elite

Quality-Seekers

Bargain-Hunting Homemakers

Wishful or Wistful

Teddies and Treats

UK Non Spenders

International

Middle East Customers

Rest of World Customers

Staff

Q

Share of Spend by Segment

0%

10%

20%

30%

40%

50%

60%

Segment Size

% age of Spend

Q

Segment Distribution

0.7%6.4%

6.4%

4.6%

6.1%

36.0%

0.6%

33.6%

5.7%Q

http://images.google.co.uk/imgres?imgurl=http://www.giftbricks.com/images/engraved%2520brick%2520teddy%2520bear%2520symbol.png&imgrefurl=http://www.giftbricks.com/engraved_brick_tile_symbols_animals.htm&h=80&w=80&sz=1&hl=en&start=3&tbnid=rYCSV2mmNehimM:&tbnh=74&tbnw=74&prev=/images%3Fq%3Dteddy%2Boutline%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://johnlepinski.com/images/320/320_HomeIcon.png&imgrefurl=http://johnlepinski.com/illustration/&h=320&w=320&sz=65&hl=en&start=1&tbnid=17BtdxpF8_pSeM:&tbnh=118&tbnw=118&prev=/images%3Fq%3Dhome%2Bicon%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://spsp.clarion.edu/mm/RDE3/c2/C2comments/Thought_Bubble_1.GIF&imgrefurl=http://spsp.clarion.edu/mm/RDE3/c2/C2comments/c2Pictorial.html&h=410&w=464&sz=5&hl=en&start=3&tbnid=vyyyn1HRDiFTQM:&tbnh=113&tbnw=128&prev=/images%3Fq%3Dthought%2Bbubble%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www.bristol.ac.uk/university/maps/plane-icon.gif&imgrefurl=http://www.bristol.ac.uk/university/maps/by_air.html&h=100&w=100&sz=1&hl=en&start=3&tbnid=V-ywrfyKfxRl3M:&tbnh=82&tbnw=82&prev=/images%3Fq%3Dplane%2Bicon%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www.sd-commission.org.uk/sdc_images/Pound_150.jpg&imgrefurl=http://www.sd-commission.org.uk/pages/Economics_CSR.html&h=198&w=150&sz=8&hl=en&start=5&tbnid=qBU94iI7NQ2DwM:&tbnh=104&tbnw=79&prev=/images%3Fq%3Dpound%2Bsymbol%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www.cnn.com/WORLD/struggle_for_peace/land_maps/middle_east_region.jpg&imgrefurl=http://www.controvert.org/controvert/index.php%3Foption%3Dcom_content%26task%3Dview%26id%3D34%26Itemid%3D2&h=394&w=421&sz=54&hl=en&start=31&tbnid=ZnBiqGJ-QrElFM:&tbnh=117&tbnw=125&prev=/images%3Fq%3Dmiddle%2Beast%2Bicon%26start%3D20%26gbv%3D2%26ndsp%3D20%26svnum%3D10%26hl%3Den%26sa%3DN

http://images.google.co.uk/imgres?imgurl=http://www1.istockphoto.com/file_thumbview_approve/2482727/2/istockphoto_2482727_world_globe.jpg&imgrefurl=http://www.istockphoto.com/file_closeup/what/business/business_concepts/2482727_world_globe.php%3Fid%3D2482727&h=380&w=380&sz=52&hl=en&start=5&tbnid=NelJtAKTLA1TwM:&tbnh=123&tbnw=123&prev=/images%3Fq%3Dglobe%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG

http://images.google.co.uk/imgres?imgurl=http://www-rohan.sdsu.edu/~londonsp/Harrods.jpg&imgrefurl=http://www-rohan.sdsu.edu/~londonsp/StudentSumLifeFIE.htm&h=380&w=608&sz=30&hl=en&start=4&tbnid=PJ6WRwc5Dhai9M:&tbnh=85&tbnw=136&prev=/images%3Fq%3DHarrods%2BStaff%26gbv%3D2%26svnum%3D10%26hl%3Den%26sa%3DG


















Current Positions Desired Positions


Nu

mb

er

of

Vis

it in

6 M

on

ths

Average Spend per Visit

-£200 £100 £0 £100 £200 £300 £400 £500 £600 £700 £800 £900 £1,000

12

10

8

6

4

2

0

-2


Middle East

Rest of World

UK Non-Spenders

Staff

Wishful or Wistful

Teddies

& Treats

Bargain Hunting

Homemakers

QQQuality Seekers

Jet-Set Elite













Prospect Pool

Single Customer View

Black

Gold

Green

One-to-one servicing

Tailored Products & Services

(By Appointment / Personal Shopping Services)

Direct Mail / Clienteling

Exclusive invitations to store events

(Introduce to “By Appointment”)

Direct Mail

System generated target offers

(Sales Assc. / Rewards team)

Clienteling

Retain Most

Valued

Customers

CRM

Develop

Customer

Relationships

Rules / Prioritization

Analysis / Segmentation / Modeling

Single Customer View / Marketing Analytics

Data Sources

Data quality

Flexible design

Scalable architecture

Systems integration

Data enrichment

Product

Demographics

Behavioural

Propensity modelling

Cross-Sell Analysis

Retention AnalysisCustomer metrics

Campaign results

Forecast reports


Harrods Rewards Program

55% of sales are

loyalty card based

Black

Gold

Green

Q


Rewards Program & Customer Segmentation Alignment

Tier Codes by Segment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jet-SetElite

QualitySeekers

BargainHunting

Homemakers

Wishful orWistful

Teddies& Treats

UK Non-Spenders

MiddleEast

Rest ofWorld

Staff

Segment

Green 0 Green 1 Green 2 Gold Black Elite









AGENDA






Lessons Learnt


PRODUCT Centric Initiatives

Selection

Availability

Profitability

Workforce Optimization Initiatives

Task Scheduling

Staff Scheduling

CORPORATE PERFORMANCE Management Optimization

Continuous Improvement

AGENDA






Lessons Learnt

Lessons Learnt

Get your Processes and Information Quality Right

Evolution and not Revolution

Do not Underestimate Change Management

Continuously Evaluate your Strategic Partnerships

David Llamas

CIO

Harrods Ltd

[email protected]

Education

02 harrodsv [e doc_find.com]