Key CCG Services
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 that Payless marketing strategy didn’t deliver 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 with the Payless target market, 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.
CRM was an obvious solution — but internal resistance was high.
The Payless marketing team turned to CCG’s retail marketing experts to overcome the objections and convince upper management and shareholders that a CRM solution was the right direction to take. CCG had previously helped the company understand why its test frequency program had failed. The Payless marketing strategy 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.
Building the Case for CRM
To build the business case, we started with our proprietary CRM Assessment Process. This intensive process centers around compiling and analyzing customer data across channels to better manage and improve interactions with current and potential customers — leading to greater loyalty and profits.
Then, working closely with various Payless stakeholder groups, 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 (a separate division of Payless) 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 customer loyalty program
- Determined best methodology for data collection given Payless’ unique positioning, the Payless target market, low price point and low shopping frequency of customer segments
- Managed customer focus groups to review customer response to program alternatives
- Reviewed competitive programs
CRM Business Case — Delivering the Goods
CCG delivered a final case to present to key Payless management and shareholders. The business case deliverables included:
- 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 loyalty 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
- 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 loyalty 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 Case Study: Proof of Concept Shows It Works
CCG’s next act was to use the business case as the foundation for developing a CRM pilot plan. The pilot would be implemented in the balance of the current fiscal year and would include specific objectives, strategies, consumer contact matrices, budgets and timelines.
Key stages for the CRM pilot included:
Key stages for the CRM 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
As a final Payless marketing strategy deliverable, CCG worked with various Payless stakeholders — including Product Development, Merchandising, Operations, IT and Finance — to review the previous data analysis and conclusions, and to build a consensus on an approved methodology.
Case Delivered: A CRM Success Story
Thanks to the solid business case, the Payless marketing team was able to win over the big decision makers. They installed a customer database and followed through on several of CCG’s other recommendations. Game, set, win!
Payless has turned to CCG three times to assist with their CRM initiatives and loyalty program development. They consider us a trusted advisor. During our last engagement, we were asked to not only develop a loyalty program but also predict participation and performance.
Key CCG Services
Strategic Customer Initiatives
Strategic CRM consulting
Account management
Loyalty program development, refinement & management
FasTrackSM program implementation
Omni-channel content strategy & planning
Traffic-building program development
Cross-sell or upsell program development
CRM business case development
ROI measurement
CRM/loyalty program support services
Data, Analytics & Research
Database analysis & mining
Modeling, including predictive, look-alike & regressive modeling (e.g., decision trees)
Customer scoring
Segmentation & cluster analysis
Technology Sourcing & Implementation Support
RFI/RFP process management
Requirements documentation
Process documentation
Functional requirements support
Implementation support
Content & Creative Services
Content strategy & planning
Print & digital design
Direct mail & other print assets
Print production & fulfillment
Are you next?
Are you ready to revamp your approach to customer loyalty or refresh an existing rewards program? CCG’s retail marketing experts can provide everything from strategy to development and implementation, to measurement and refinement. Complete the form below or call us at 303.986.3000 to schedule a free consultation and see how we can help you.
