LCBO Customer Insights for Sale Customer Insights & CRM Pam - - PowerPoint PPT Presentation

Pam Lawson

May 27, 2016

LCBO Customer Insights for Sale Customer Insights & CRM

Customer Insights Analytics Capabilities

• In 1999, LCBO

introduced Air Miles rewards as a value- added feature

• Highest penetration

loyalty card in Ontario: 75% Air Miles Penetration

The Relationship

• 68% of Air Miles customers

purchase at LCBO

• 4.6 Million collectors at LCBO

that are Ontario residents.

• 50% of LCBO Customers

have Air Miles:

• 54% Vintages, 53%

Wines, 37% Beer, 42% Spirits

• Profile: GenX, families,

boomers, seniors

• A household card

The Relationship

• Understand what

products customers are purchasing, and where and when they’re purchasing them.

• Products and

categories

• Stores and regions
• Frequency

Air Miles Advantages

• Determine the value/cost
• f customers.
• Customer value

Air Miles Advantages

• Linkages to other

consumer databases

• Demographics
• Psychographics
• Usage and attitude

studies

Air Miles Advantages

• More effective

advertising and promotions through targeting

Air Miles Advantages

• Purchase Cycle
• Affinity Analysis
• Brand Switching
• Top Shoppers
• Market Customer

Analysis

• Share within a Category
• Surveys

Types of Analysis using Air Miles

Purchase Cycle

• Determining average length of time it takes for a customer to make a repeat purchase
• f the same product
• Usually calculated in days (i.e average/mean/mode # of days)
• Helps determine the number of repeat customers vs. single visit customers

• This type of report takes a look at customers before, during, and after, a time

period to find out whether a promotion/new brand/price change made an effect.

• Some customers shop in all three time intervals, while others shop only during one
• r two periods. (Venn diagrams are particularly useful here.)

A/M Customer Profile Previous Promo Post The Lost

X

Cherry-Pickers

X

Bar-Stockers

X X

Loyalists

X X X

Won-Overs

X X

Asleep-at-the-Wheel

X X

Late-Risers

X The Lost Late -Risers Cherry Pickers

Bar Stockers Won-Overs

Brand Switching

(Lost, Loyal & New)

Loyalists

Category

• Products in an AM customer’s basket over a fixed period of time.
• What else does a person who buys a particular product normally buys over time.

Affinity Analysis

• These reports usually conducted in conjunction with Brand Switching reports
• Explores the story of shoppers who are Loyal, Lost, and New to particular product
• What products are these people buying now?

Affinity Analysis/ Sourcing Reports

ABCDEF Revenue

ABCDEF Non-Top Shoppers ABCDEF Top Shoppers

$13 $79

$- $20 $40 $60 $80 $100

ABCDEF Non-Top Shoppers ABCDEF Top Shoppers

ABCDEF Average R13 Spend

Top Shoppers

For any product, set, subset, etc… we look at the mean spend

• ver a time interval and

those customers who spend more than that value are considered as ‘Top Shoppers’.

• Looking specifically at product /set/etc.. combinations
• How many AM customers purchased these products together
• This report shows the combinations of products purchased by AM collectors
• These reports show the popularity of products bought together.
• It’s used to identify promotional operations and for selecting customers to target for email

campaigns

Market Basket & Customer Analysis

Market Basket & Customer Analysis

• This report determines how much spend customers allocate towards a subset of a

larger set

• i.e. Vintages Releases compared to all of Vintages
• Over time, patterns can emerge where spend in certain sets/subsets increase or

decrease

Share within a Category

• Age
• Gender*
• Income
• Education
• Segment
• Ethnicity
• Engagement level

This information is available through data collected from LCBO surveys. * Air Miles is a household card

Profiling Customers

• Postal Code
• Psyte Clusters

Loyalty One shares Postal Codes with LCBO once a year. Psyte HD clusters (Life stage segments by Postal Code) are available through Pitney Bowes.

Surveys

Surveys & POS Data

Examples

Where do Top Beer Customers live?

Where do Top Beer Customers live?

Surveys & POS Data

Examples

Thank you

May 27, 2016

LCBO PSM Trade Symposium

2.9M Air Miles Collectors are active at LCBO

Demographics

17.2% 29.0% 19.7% 18.1% 15.9%

41-50 31-40 19-30 64+ 51-64

Age Gender

Household with Teen

27.9%

Household with Child

26.2%

Single/Couple

10.5%

Gen Y

4.1%

Senior

15.9%

Empty Nester 15.4%

Lifestage Segments

30.3% 30.2% 39.5%

Female Other Male

2.9M Air Miles Collectors are active at LCBO [cont’d]

Air Miles Program Engagement

17.2% 21.3% 9.4%

Mid Premium High

Brand Engagement

Dream vs. AM Cash

44.7%

4 - 6 Partners

23.8%

1 - 3 Partners

24.1%

7 - 9 Partners

7.4%

10+ Partners

Collector Tier Partners Visited 72% 28% 1% 12% 87%

2.9M Air Miles Collectors are active at LCBO [cont’d]

Air Miles Channel Engagement Contact Language

72% 28% 92% 44% 48%

Mailable Emailable Web Active

EN FR

8%

Mobility

There are some differences by Category

• Beer Collectors tend to be younger than Wine and Spirits

Collectors

• Beer and Spirits Collectors tend to be Male
• Wine Collectors tend to be Female
• Spirits and Wine Collectors have a longer tenure in the Air

Miles Program than Beer Collectors

• Beer and Wine Collectors shop more Partners than Spirits

Collectors

Air Miles Collectors love to earn Air Miles at LCBO

57%

Would select WINE with a BAM Offer

• ver another

Perceptions

58%

Have purchased a BAM Offer in the past

Participation

68%

Air Miles encourages them to collect more Miles (Baseline: 59%)

Young Adults

We have created segments that Suppliers can leverage to target Collectors based on their engagement at LCBO

• Reward – Always looking for BAM

Offers

• Premiumization – Upsell to more

premium BAM Offer products

• Frequent Engagement – Target

regularly to switch product through bonus

• Occasional Engagement – Target

mainly during peak seasons

• Bonus Introduction - Engage

with richer BAM Offers on New products

• Growth Potential – Engage with

richer BAM Offers on established products

LCBO Collector penetration is very high based on LCBO locations

• Overall, 86% of LCBO Active Collectors live

within a 5km radius of an LCBO location

• Top 5 location for Bonus Miles Issuance in

last 12M:

1.

Hawkesbury (Store 83)

2.

Ottawa (Store 624)

3.

Toronto (Store 164)

4.

Ottawa (Store 38)

5.

Toronto (Store 10)

• This can help improve targeting for in-store

tastings with BAM Offer products, and eCommerce BAM Offers

And geo-targeting helps to target based on penetration

• LCBO sees strong Active

Collector Penetration in much of the downtown Toronto and Mississauga core (+65%) vs. Overall Air Miles program

• This data can be

combined with BAM Offer Engagement Model for email and DM campaigns to optimize targeting

So, how does a Supplier create a strong BAM offer?

Define the objective

1

Sales Margin Volume Product Launches

Determine the offers that will change customer behaviour

2

Geo Location AIR MILES Customer Profiles Customer Segments LCBO Engagement Model

TARGET CONTACT

AIR MILES Channels LCBO Channels

Measure the impact and

• ptimize future campaigns

3

Measure Optimize

Examples: Best Offers to drive Sales

Optimal offers:

33

Sales ROI Buy 2 Get 5 AM Buy 2 Get 2 AM Buy 4 Get 3 AM



Buy 1 Get 1 AM Offers to Avoid | 1:1 ratio

+ +

• 

Buy 3 Get 4 AM Offers to Test | Multiples Units

Objective: Sales Category: Beer (single cans)

Examples: Best Offers to drive Margin

Optimal offers:

34

Margin ROI Buy 1 Get 8 AM, Buy 2 Get 25 AM Buy 2 Get 15 AM Buy 1 Get 4 AM



Buy 1 Get 10+ AM Offers to Avoid | Overly rich (Same customer behaviour; Use for product trial offers)

+ +

•  Buy 500ml Get 4

AM, Buy 1L Get 10 AM Offers to Test | Upsell (Move customers to larger format)

Objective: Margin Category: Spirits (mid)