Vanessa Cowan

World of Difference – Imbizo copy Introducing a World of Difference …… where everything revolves around YOU Your world changes from October 26th What’s it all about? A World of rewards A World where you come first A World where you get to choose A World where you can make the difference A world where everything is designed to make your life a little better A World that could change your life …… The World of Difference CRM programme sees Woolworths embarking on a lifelong journey to build lasting, one-on-one relationships with all its customers. Customer Relationship Management offering a World of Difference repositions us a customer-centric marketing organisation, creating and maintaining ‘fierce’ consumer loyalty to the brand. Our long term vision? To drive aggressive acquisition, retention and growth through building informed, loyal and personal relationships with more customers. The low down on Customer Relationship Management (CRM) You may have heard the term Customer Relationship Management bandied around or been quick to adopt the acronym but just how well do you understand Customer Relationship Management? Defining Customer Relationship Management in a sentence is both simple and complex, much like its meaning. On the one hand, it really is as simple as it sounds; it’s about gaining a deeper and holistic understanding of our customers so that we can anticipate, meet and, better still, exceed all their unique needs. On the flip side, building relationships is never an easy process, particularly when it comes to people – the most complex of all living creatures. It requires attention to detail, ongoing commitment and understanding. It’s only when we are able to piece together all the information we accumulate on a customer that we are able to really gain a composite and holistic picture of that customer – who they are, what they want and need, what appeals most and what doesn’t, where, how and when they shop, what they expect from Woolworths and more. The more comprehensive our knowledge of our customers spending behaviour, wants and needs, the better positioned we are to gain competitive advantage - with a more integrated view of our customers, we will be able to fulfil all their needs and wants, from foods, to clothing, home and financial services, while also providing that extra “value add”. Why now? This ability to exceed customer needs and expectations is no longer a ‘nice-to-have’, but a business imperative in today’s increasingly competitive and globalised landscape. Traditional players are entering new business spaces, creating new rules and doing the “unexpected.” There are a number of compelling reasons for Woolworths to act NOW: ▪ We are already late to market with a customer relationship programme. Loyalty programmes have become the expected norm in the minds of SA consumers and consumers increasingly want to be rewarded for their ongoing support of retailers. ▪ We lack empirical customer insights (other than on our FS cards) o Best practice retailers (e.g. Tesco have introduced customer measures into their retail scorecards). o We don’t have a clear understanding of customer attrition. • Woolworths lacks an integrated approach, working as One brand, One business, One team. There has been a tendency to work in ‘product silo’s in the past but there is increasingly a need to integrate all business units into one customer offering, that acknowledges all customer needs, across foods, retail, homeware and financial services. The points on the WW credit card are further insufficiently leveraged across the business and the In Store card is inadequately integrated into retail promotional strategies. • Woolworths financial services products are not sufficiently differentiated in an increasingly dynamic marketplace. Taking these products above the line with an attractive rewards component will add credibility and appeal. • Internationally and locally, the threat of traditionally defined industry players moving into new and multiple business areas, is on the rise. • We are the only national Clothing, Food and Home retailer on the MySchool programme. Currently the programme is run as a stand-alone programme and is not integrated into an integrated Woolworths loyalty programme. Although Woolworths is a latecomer in the CRM space, advantage is always temporary - we now have the opportunity to leapfrog ahead of competitors by thinking beyond what has already been done and learning from mistakes made. What does our World of Difference involve? The World of Difference programme is positioned around two focus areas for phase 1, which launches on October 26th 2005. Further exciting CRM components will be phased in from early 2006 and ongoing benefits offerings will continuously be reviewed and improved upon, as part of the Wooloworths drive for innnovativeness and transformation. 1. Direct Marketing: The first capability is the development of a world-class direct marketing capability. This includes utilising all data sources to communicate with our customers using the most effective channel. 2. Loyalty: The loyalty component is essentially defined as ‘free’ with the focus being on acquiring information from our customers by rewarding and recognising their contribution. Further deployment of customer insights will be focused towards generating modified behaviours and galvanizing FS growth through increasing perceived product benefits and active cross selling. So how does it benefit me? All Woolworths staff will be fully involved in the World of Difference programme from the outset. You will be invited to enroll and enjoy the benefits, just as customers do. In experiencing, living and making the difference yourselves, you will play an important role as advocates and ambassadors of the programme. We know you’ll be enticed to experience our World of Difference for yourself. What are the World of Difference benefits? Choose the card for YOU 1. For Me card • • • • • • • • • Random free shopping at till point – you may be pleasantly surprised one day to hear that all your purchases at a particular till transaction are free of charge! Every week, a total of 200 customers across the country will win their shopping for free. The swipe card facilitates easy opt-in to MySchool – now you can Make the difference Your card of choice – you now only have to have one card to enjoy MySchool benefits and World of Difference benefits (and, if you enroll for or already have a Store Card or Visa Card, all benefits will be contained in that one card.) Ongoing competitions o Competition with a difference!!! Further detail to follow o Customers stand in line to win R10 000 of free shopping every month o Customers stand in line to win R10 000 cash for their “My School” of choice every month o Every item you purchase gives you one entry into all of the above competitions – so the more you spend the greater your chances of winning! A range of different incentive vouchers offered at periodic intervals, as reward for your custom and loyalty. Newsletter to keep you up-to-date and in-the know A chance to join the Woolworths customer panel and have YOUR say Always have the inside track – be the first to know, be invited, experience, sample, have, enjoy and make a difference Specialised events, promotions  In line with legal parameters, staff will not be entered into the customer competitions but there will be a series of staff competitions. 2. In Store Card All the above Cash Card benefits PLUS • Double entries into all competitions – every item you purchase gives you two entries into competitions, so you double your chances of winning and giving. • Exclusive promotions and special offers • Invitations to exclusive events – be the first to be invited to workshops, pre sale evening and product launches • • Free membership of the Ster Kinekor Movie Club Credit convenience in WW stores (55 days interest free) 3. Visa Card All the above Cash Card and In Store Card benefits PLUS • W points giving you cash back vouchers (redeemable in Woolworths) • Unlike many other credit card point programmes, membership of Wpoints is absolutely free; there is no annual loyalty club fee • Convenience of credit worldwide • Free secondary cards – earn WPoints even faster • Free travel insurance • Free lost card protection Objectives of the CRM programme • • • • • • Attract new customers Identify, retain and grow most profitable customers Grow attractiveness of the FS offering Add FS revenue streams Increase uptake of store card and Grow customers’ usage of Woolworths products and services