CASE STUDY - CRM & LOYALTY
CRAI
“dunnhumby has a strong competence on marketing levers, big data, and
customer strategy. Others might also have this, but it’s dunnhumby’s
commitment, passion and willingness to really understand client needs
that adds value.”
- Mario La Viola, CRAI Marketing Director
About CRAI Personalised communications:
• Established in 1973 Increasing customer engagement
• Central headquarters in Milan and sales
• Cooperatives spread across 19 Italian regions and
CRAI had a loyalty program in place but had never studied their
2270+ stores
customers’ behaviour and needs, nor had they undertaken any
• www.craiweb.it
personalised engagement activity. They recognised the need
to improve their customers’ experience and saw how creating
Objectives personalised communications could help drive their
• Help them to better understand their customers and business objectives.
their value
• Differentiate customers according to their habits
and needs Challenge
• Create an individual and personalised dialogue with
Very little work had been done with their customer base before,
customers
and quite a few challenges were uncovered. Although a rich
• Drive greater loyalty over time and increase spend
customer database had been created from their loyalty program,
for the business
the quality of data was poor in terms of contactable customers.
From a CRM perspective, inconsistencies of technology &
Achievements systems capabilities were identified across their stores. And
usage of the loyalty card by customers was quite low.
• 1% growth on LFL sales during CRM campaigns
• Average +40% incremental sales duringthe CRM
campaigns and 11% in the postcampaign period
© 2019 dunnhumby / All rights reserved
Solution
dunnhumby worked with CRAI from the assessment of their business (objectives, priorities, capabilities and resources) up to the
design of the customer journey, resulting in a CRM plan. After a process of customer data validation to gain powerful customer
insights, business & customer opportunities were identified and quantified. The plan was designed to engage customers in a
personalised and relevant way, by activating the right content, through the right channel, at the right time. However, key to a winning
plan was a cycle of tests to drive best customer engagement and ROI.
3 tests with different spend scenarios were activated:
Test 1 (Summer) Test 2 (Autumn) Test 3 (No specific season)
*Repetition of Test 1 but different season
Customer group 1: target 60th Customer group 1: target 75th
percentile of basket spend & Customer group 1: target 60th percentile of basket spend &
15% off percentile of basket spend & 15% off
Customer group 2: target 75th 15% off Customer group 2: target 75th
percentile of basket spend & Customer group 2: target 75th percentile of basket spend &
20% off percentile of basket spend & 20% off
Results
Improved customer
75th spend percentile / 20% off was the best winning
experience & customer
scenario. With this mix, we identified the ideal combination to
engagement
drive the right balance between level of customer engagement
and incremental sales for CRAI. customers seemed to
appreciate a higher discount even if having to spend more.
With this scenario, participation was 3% points higher in all 3
tests, while the incremental sales generated by the contact
1%
customers were 7-8% points higher.
Growth on lfl sales
during crm campaigns
After the test phase, CRM activities were consolidated driving
an average of 40% sales uplift and 1% growth on LFL sales
during campaigns.
+40%
Incremental sales
during crm campaigns
+11%
Incremental sales post-
campaign period
© 2019 dunnhumby / All rights reserved
T H E W O R L D ’ S F I R S T C U S T O M E R D ATA S C I E N C E P L AT F O R M
dunnhumby is the global leader in Customer Data Science, empowering businesses everywhere
to compete and thrive in the modern data-driven economy. We always put the Customer First. Our
mission: to enable businesses to grow and reimagine themselves by becoming advocates and
champions for their Customers.
With deep heritage and expertise in retail — one of the world’s most competitive markets, with a
deluge of multi-dimensional data — dunnhumby today enables businesses all over the world, across
industries, to be Customer First.
The dunnhumby Customer Science Platform is our unique mix of technology, software and
consulting enabling businesses to increase revenue and profits by delivering exceptional
experiences for their Customers – in-store, offline and online. dunnhumby employs over 2,000
experts in offices throughout Europe, Asia, Africa, and the Americas working for transformative,
iconic brands such as Tesco, Coca-Cola, Meijer, Procter & Gamble, Raley’s, L’Oreal and Monoprix.
Contact us to start the conversation
dunnhumby.com
