Situation
The client had access to a large volume of customer data that they were failing to leverage to drive hyper personalized initiatives, therefore resulting in low ROI for marketing & voucher spends. Differentiation of personalization on the basis of the nature of business, Foods compared to Fashion was the need of the hour. A consistent and adequate measurement framework for a holistic evaluation of the impact of marketing on revenue growth was also lacking.
Impact
The detrimental impact of non-personalized communication and an inconsistent measurement approach sent to the loyalty base lead to:
- Lower ROI of marketing investments and voucher/promotion budgets
- Lack of ability to attribute the impact of revenue to customer initiatives
- Communication fatigue due to the series of non-personalized communications, and hence, a drop in response rates across channels
Resolution
Through a collaborative effort between Customer Insights, Loyalty Operations & ITC Infotech’s Customer Value Management team – the loyalty personalization program was redefined to:
- Reset measurement metrics and implement a consistent reporting framework to assess short-term and longitudinal impact
- Re-build Advanced Analytical models using Advanced Statistical / Machine Learning concepts and methods to align to Customer Value Management principles
- Integrate personalization within Trade Promotion communications using Customer Intelligence
- Evaluate, modify and expand the voucher pool to align with customer objectives
