Shivam Shekhar | 1711427 Data Strategy Paper Introduction Metro Cash & Carry is an international self-service wholesaler. It is a retail system focussed with its customers being other businesses (B2B). It operates across Europe and India with 24 stores around the country. The cash and carry concept is based around self-service and bulk buying. Only registered customers can walk-in to the store and purchase products. The core customer groups are hotels, restaurants, traders and other business professionals. Target Segment According to Metro, they classify their target segments into three buckets using the information that they gather through their mandatory registration process: Target Segment Name Description of Target Buying Potential & Profitability HORECA Hotels, Restaurants and Café. All institutions in the food service industry comprise this segment. (Registered Businesses only) Buying Potential: High (Yearly Contracts) Profitability: Low (Due to bulk purchases and yearly contracts with Metro C&C) Traders Kirana Stores, Food Resellers, General Trade Stores, Canteens SCO (Services Complimentary Offices) All service-oriented organisations like Pharmacy, Offices, Showrooms Buying Potential: High (Frequent Purchases) Profitability: Medium (The portfolio of products is large, and margin varies from low to high) Buying Potential: Low (Since they are end-users rather than resellers) Profitability: High (Least price-sensitive segment and high margin purchases despite lower Average Bill Value) Data Strategy Data element GST Registration Number Source Internal (Mandatory for Registration) Source: Registration Form Intended use/rationale Necessary to establish that the customer is an officially registered business. Failure to ensure this can lead to legal issues as FDI in MultiBrand Retail (B2C) is not permitted in India. Shivam Shekhar | 1711427 Data Strategy Paper Location of Business Internal (Mandatory for Registration) Source: Registration Form Promotion Address Internal (Mandatory for Registration) Source: Registration Form License Type Internal (Mandatory for Registration) Source: Registration Form Name Internal (Mandatory for Registration) Source: Registration Form Internal (Mandatory for Registration) Source: Registration Form Internal (Mandatory for Registration) Source: Registration Form E-Mail Phone For classification of customers into zones and to assign zonal salesman accordingly. The zones are divided based on the nearest store and the radius in terms of distance. (Refer to Appendix 1) To send out magazines and product catalogues. It is to ensure that businesses receive the communication in a spot where the user is likely to be engaged. A lot of customers want brochures and offers at home address rather than a store. Collected to gauge what kind of business they are in. This helps in sending them communications of a specific portfolio of products. Essential for focused marketing efforts and increased effectiveness. (Refer Appendix 2) Identification and Verification of Registered Customer To shoot mailers regarding products and especially feedback surveys. Promotional and Informational Messages (Useful because the customer base is traditional, especially the ones that lie under the target segment ‘Traders’) Shivam Shekhar | 1711427 Data Strategy Paper Area of Business Frequency of Visit Customer Concerns Bill Value & Time Spent Internal (Mandatory for Registration) Source: Registration Form To classify them into target segments described above, Useful for pointed communication and establishing the right medium to reach consumers. HORECA – Direct Sales SCO – Online Marketing Traders – Direct + SMS (Refer to Appendix 3) Internal (From Scanning Classification of Customers Card) into four types (Refer to Source: Customer Card Appendix 4). To retain ‘fresh’ and ‘current’ customers. To regain ‘attrition’ customers and avoid spending money on gaining back ‘activation’ customers. Month-on-Month trend analysis of customer and benchmarking with previous years to assess the effectiveness of offers and targeting. Approach customers who are less engaged and call to check concerns and move up the chain. (Refer to Appendix 5) Internal (Through Salesman – This helps in escalating issues Direct Interaction on to the senior management; it Customer’s Place of can range from the proximity Business) of store (Propose delivery mechanisms) to price issues (Alter offers accordingly). Internal (When a customer Measure the busy periods visits the store and checks and open more counters to out) improve convenience. Offer In-Time/Out-Time/Bill Value: relevant discount in certain Card gets scanned at entry time periods to attract and billing customers. Measure the (Refer to Appendix 6) effectiveness of offers during a sales period (Annual/Festive Sales) Shivam Shekhar | 1711427 Data Strategy Paper Appendix Appendix 1 (Zoning of Customers) Appendix 2 (List of License Type) Alcohol Wholesale Alcohol Retail Drug Wholesale Drug Retail Defence Gram Panchayat Gas Agency license Pesticide License Kerosene Licence College/School License Entertainment License Factory License Food License Others (50 More Types) Appendix 3 (List of Area of Business) HORECA Traders 1. 2. 3. 4. 1. Residential Hotel Restaurants Bakery, Sweet Shop & Eateries Caterers/Canteens Kirana Store Shivam Shekhar | 1711427 Data Strategy Paper 2. 3. 4. 1. 2. 3. 4. SCO Food Resellers Fruits & Vegetable Stall General Kiosk Pharmacy Office & institutions Industry Shop/Showrooms Appendix 4 (Classification of Customer) Type 1: Fresh Customers Previous Year(s) Current Year Previous Year(s) Current Year Previous Year(s) Current Year Previous Year(s) Current Year Year of Registration Most Recent Purchase Type 2: Current Customers Year of Registration Most Recent Purchase Type 3: Attrition Customers Year of Registration Most Recent Purchase Type 4: Activation Customers Year of Registration Most Recent Purchase Appendix 5 (Frequency Chain) Shivam Shekhar | 1711427 Data Strategy Paper Appendix 6 (Card with Barcode)