Key CCG Services

  • Comprehensive Relationship Marketing Program Analysis and Design
  • Consulting Services
  • Database Analysis and Target Audience Profiling
  • Data Appending, Customer Segmentation
  • Data Mining
  • Measurement and Refinement

Situation

Payless, a specialty family footwear mega-retailer, had dabbled in developing a customer database to support its CRM efforts. It tested a frequency program, but the program was flawed and the data was suspect. In another attempt to collect customer data, the company joined the ClubMom coalition program, but wasn’t getting the ROI needed to justify ongoing participation.

Meanwhile, the company was facing growing market pressure from increased competition (particularly mass discounters) and declining market share. The marketing and customer divisions believed that to gain a competitive edge,this mega-retailer needed to collect, manage and leverage accurate customer data, and build a database that would link customer names and addresses to transactions.

Strategy

To overcome significant internal resistance to CRM, the Payless marketing team turned to CCG, who had previously helped the company understand why its test frequency program had failed. The goal now was to develop a business case for CRM, specifically demonstrating the benefits of investing in a customer database with minimal impact on existing resources. Using its proprietary CRM Assessment Process, CCG developed a CRM business case for Payless.

Assessment

Working closely with the various stakeholder groups at Payless, CCG finalized the CRM objectives, outlined the strategies and associated expenditures, conducted a departmental impact study and created ROI pro formas. Specifically, CCG:

  • Worked with Finance and Merchandise to validate analyses on expected benefits from Payless Points and Parade, and applied them to test and rollout plans
  • Outlined key risks and mitigating factors in developing a CRM program and organizational impact
  • Scoped out infrastructure requirements and costs with IT and Operations in conjunction with development of a pilot program
  • Determined best methodology for data collection given Payless’ unique positioning, low price point and low shopping frequency of customer segments
  • Managed customer focus groups to review customer response to program alternatives
  • Reviewed competitive programs

Components

CCG delivered a final case to present to key Payless management and shareholders. Among the business case deliverables:

  • Executive Summary
  • Key Opportunities and Recommendations
  • Organizational Areas of Impact
  • Buying and Product Development
  • Distribution and Operations
  • Advertising and Marketing
  • Proposed Customer Data Collection Program
  • Pilot Program Description and Structure
  • Estimated Participation Levels
  • Pilot Program Communications
  • Pilot Internal Communications Plan
  • Pilot Measurement
  • Exit Strategy
  • Program Rollout Plan
  • Technical Solution Recommendations
  • Financial Analysis

Payless Proof of Concept Plan

CCG developed a CRM pilot plan to be implemented in the balance
of the current fiscal year containing objectives, strategies, consumer
contact matrices, budgets and timelines.

Key stages for the pilot included:

  • Methodology for capturing customer data at POS
  • Methodology for determining merchandising and product
    allocation benefits
  • Program to capture customer data and link to transactions
  • Detail of potential risks, costs and benefits of the program
  • Approval to proceed with pilot program
  • Rollout Implementation Plan

Merchandising Benefits White Paper

As a final deliverable, CCG worked with various Payless stakeholders
(such as Product Development, Merchandising, Operations, IT and
Finance) to review the previous data analysis and conclusions, and to
build a consensus on an approved methodology.

Results

Payless installed a customer database and is following through on several of CCG’s recommendations.