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achievingmobile ROIfor in-store retail
Ken Kuschei. Longo’s Director Consumer Insights Chris Bryson. Unata Founder & CEO
Objective: Launch mobile apps that deliver the same customer intimacy that made Longo’s successful
Longo’s Family, 2012
Achieve Competitive Differentiation
Engage Current Loyalty Members
Drive New Member Acquisition
Gather New Forms of Customer Data
Leverage Data to Cut Other Costs
Drive Increased Loyalty & Spend
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Targets for achieving ROI
How Unata measured ROI
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Connected mobile experience to loyalty program !
Connected mobile experience to products & promotions
Tracked all mobile behaviour; connect to purchase event
Measured behaviour changes & influence of digital on basket
Benchmarked changes against non-digital users
Didn’t launch an app. Implemented a platform.
• Launched July 23, 2013: iPhone, Android, Web in Jan
• Integrated in 3 months
• Connected to Longo’s Thank You Rewards Program
• Each shopper’s content is personalized by Unata’s platform, based on purchase history
• All users behaviors tracked by Unata’s platform
Automated Personalization
Engine
Longo’s CRM
API & Cloud DB
Longo’s ERP, POS
Content Management
SystemAnalytics Engine
Platform Implementation
Loyalty • Scan card off
phone
• Points balance
• Points needed to earn next reward
List • Create list from
full inventory & prices
• Sort by department
• Personalized recommendations
Incentives • Earn incentives
for downloading app / rating purchases
Personal Flyer • Products on sale
that the shopper has previously purchased
• Other relevant specials based on buying preferences
Push Notification
• Alerts for personal flyer being updated
• Sent weekly
• Highlights number of items on sale that the user has previously purchased
Continuously improving experience
Access personalized
content via app
Make purchase with loyalty card
Personalized content automatically refreshed
Purchase data linked to mobile data, compared to other shoppers
Achieving ROI: 6 Different Ways
ROI 1. Achieve Competitive DifferentiationThe Longo’s Mobile App is the only Canadian mobile app that:
• Is connected to the full catalogue and all specials (not just the flyer)
• Has a personal flyer, personalized recommendations, access to user’s purchases
• Allows users to earn points for digital behaviors
2007Average Loyalty MemberMobile Loyalty Member
Monthly Spend
41% higher
ROI 2. Engage current members
+6% higher retention
51+ 20%
40-49 26% 30-39
32%
20-29 19%
0-19 3%
Male 40%
Female 60%
!
ROI 2. Engage current membersMobile Gender & Age Distribution consistent with loyalty program
=
1% of total loyalty spend
ROI 3. New member acquisition
13
of mobile logins are new members to the loyalty program
>
when & where mobile sessions happen
ROI 4. New Customer Data
48%
21%
31% Within 1hr of purchase1-24hrs before purchase> 1 day before purchase
41% viewing personal flyer
36% rating products
45% creating lists
• Lift in spend from app usage & each feature • 52% of items added to the list are purchased
what customers do
impact on purchase
60% previous purchases
51% recommendations in list
31% personal flyer
Add to List conversion to purchase by section
ROI 4. New Customer Data
ROI 5. Leverage data to cut other costs• Adjust flyer production at select locations after hitting mobile targets • Decrease production of plastic loyalty cards & supporting mailings • Leverage customer product ratings from mobile app to enhance merchandising;
>600K product ratings have been submitted since launch across 20K items
Title
2007
5.7%
-0.3%Average Loyalty MemberMobile Loyalty Member
ROI 6. Drive Increased Spend
Spend vs. Previous 4 Months Jul 23 ’13-Nov 23 ’13 VS. Mar 23 ’13-Jul 22 ’13
Title
2007
6.2%
-1.4%
Average Loyalty MemberPersonal Flyer User*
Lift per Avg Transaction $ vs. Prev 4 months
Personal Flyer driving spend
Mar 23 ’13-Jul 22 ’13 VS. Jul 23 ’13-Nov 23 ’13
Title
2007
11.4%
-1.4%
Average Loyalty MemberMobile List User*
List Users spending more
Lift per Avg Transaction $ vs. Prev 4 months
Mar 23 ’13-Jul 22 ’13 VS. Jul 23 ’13-Nov 23 ’13
of products added to the list and purchased had never been purchased
10% Goes great with...
Achieved Competitive Differentiation
Engaged Current Loyalty Members
Drove New Member Acquisition
Gathered New Forms of Customer Data
Leveraged Data to Cut Other Costs
Drove Increased Loyalty & Spend
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How Longo’s achieved ROI
Beacons: The Next Major EvolutionCreate Different Triggers for Different Distances
Empower the Retailer • Personal Flyer, Targeted Offers upon entry
• Increase Loyalty data capture (easy access @ checkout)
• Store staff retrieving shopper profile via their own app
Empower Manufacturers • Interactive In-Aisle Signage
• Fully customizable content: videos, signage, etc
• Engagement vs. Purchase Analytics
Chris Bryson Founder & CEO [email protected]
Thank You! Any Questions?
Ken Kuschei Director of Consumer Insights [email protected]
