achievingmobile ROIfor in-store retail

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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2345

Connected mobile experience to loyalty program • Members could “log in” with loyalty card / create account

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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 Nov

• Integrated w/ Longo’s systems 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

• All interactions tracked

Incentives • Earn points for

downloading app, rating purchases

Personal Flyer • Products on sale

that the shopper has previously purchased

• Relevant specials based on their purchase history

Weekly Push Notification

Alerts the shopper that their personal flyer has

been updated

Sent every Friday

Highlights the 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

Longo’s most valuable shoppers want to engage via mobile.

Mobile shoppers spend more per month, and they have higher retention rates.

60+ 5%

50-60 14%

40-50 26% 30-40

33%

20-30 19%

0-20 3%

Male 37%

Female 63%

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ROI 2. Engage current membersMobile Gender & Age Distribution consistent with loyalty program

=

> 0.5% of total loyalty spend

ROI 3. New member acquisition

13

of mobile logins are new members to the loyalty program

what customers do !

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when & where mobile sessions happen !

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impact on purchase !

ROI 4. New Customer Data

48%

21%

31%Within 1hr of purchase1-24hrs before purchase> 1 day before purchase

Avg of 2 mobile sessions before each purchase

32% viewing personal flyer

39% rating products

54% creating SKU-based lists

• Lift in spend / loyalty arising from each feature, app section • 45% of items added to the list are purchased; other 55% stored for

analysis, and to be used to improve targeted offerings

60% previous purchases

51% recommendations in list

31% personal flyer

Add to List conversion to purchase by section

ROI 4. New Customer Data

The success rate of an item being added to the mobile list and subsequently purchased at POS varies based on where within the app the item is added. !

This data can be used to enhance under-performing sections, and change the mobile design / UX to make high performing sections more easily available / usable, driving incremental business.

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;

454,272 product ratings have been submitted since launch across 18,096 items

Title

2007

5.7%

-0.3%Average Loyalty MemberMobile Loyalty Member

Spend vs. Previous 4 Months Jul 23 ’13-Nov 23 ’13 VS. Mar 23 ’13-Jul 22 ’13

ROI 6. Increased loyalty & spend

Mostly driven through increased frequency of visit

Mobile Loyalty members are spending 6% more than they did before the mobile app launched

Title

2007

6.2%

-1.4%Average Loyalty MemberPersonal Flyer User*

Lift per Avg Transaction $ vs. Prev 4 months

Personal Flyer driving spendMembers who view the Personal Flyer within 6 days of their next purchase spend more per transaction than they did before adopting the mobile app

Title

2007

11.4%

-1.4%Average Loyalty MemberMobile List User*

List Users spending more

Lift per Avg Transaction $ vs. Prev 4 months

Members who made a digital shopping list within 6 days of their next purchase spend more per transaction than they did before adopting the mobile app

of products added to the list and purchased

10% had never been

purchased by the shopper

Goes great with...

The mobile app has the power to influence the basket mix; it exposes shoppers to products that they never

purchased in the last 12 months that result in a purchases

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

488 Wellington St W, Suite 300

Toronto, Ontario

contact@unata.com

(416) 479 0775