SAINSBURY’S: WINNING TODAY’S CUSTOMERS THROUGH DEEP INSIGHTS David Buckingham President, Aimia US Region ISS AIMIA MAKES BUSINESS PERSONAL We inspire loyalty by creating deep and lasting relationships that are relevant, rewarding and fun Helping modern companies do what a traditional corner shop would do 2 AIMIA IS THE LARGEST LOYALTY COMPANY IN THE WORLD Aimia provides loyalty solutions for over 100 brands including… 3 AIMIA AND SAINSBURY'S HAVE BEEN DRIVING A SUCCESSFUL PARTNERSHIP FOR MANY YEARS MARKETING EFFICIENCIES UNDERLIE OPERATING MARGIN OWN BRAND SALES PENETRATION GROWTH Leveraging Nectar insight to reduce wastage and increase targeted, personalized marketing has helped contribute to Sainsbury’s growing its operating profit year after year. Aimia has worked with Sainsbury’s to extend its own brand into categories previously dominated by branded products. 4 THE RELATIONSHIP HAS EXPANDED EXTENSIVELY OVER TIME 5 THE LAUNCH OF I2C CHANGED THE FACE OF THE UK SHOPPER MARKETING INDUSTRY Holistic, insight-led customer analytics and communications Over 22m transactions per week in 1000 locations 30+ media channels Loyalty, insights consultancy and CRM planning expertise 6 “The creation of i2c has been a game changer in the way we have used customer insights to plan, execute and evaluate multi-channel shopper marketing campaigns.” “It’s a win-win for both customers and suppliers. This means more timely, relevant and accessible offers for customers based on their likes and dislikes, while brands benefit from an end-to-end insight based marketing solution and greater ROI.” UNILEVER SAINSBURY’S 7 CLASS LEADING INSIGHT CPG’S ACCESS IDENTICAL CUSTOMER DATA TO THE SAINSBURYS TEAMS SELF SERVE • 100% EPOS and Customer data over 2 yrs • Daily data, delivered weekly • Highly granular – SKU, customer, transaction level QUALITATIVE RESEARCH • Provides the customer voice in our tailored retail consultancy solution • Using Sainsbury’s transaction and SKU level data we are able to accurately target consumers based on real behaviours • Delivers the ‘why’ behind the ‘what’ for true holistic insight RETAIL CONSULTANCY • Taking insight to action • Aligned to Sainsbury’s category teams • Facilitate better conversations with Sainsbury’s on insight • Advanced analytical techniques 8 I2C BRINGS SUPPLIER INSIGHTS IN SUPPORT OF CATEGORY OBJECTIVES Landscape, KPIs Size of range tail Decision hierarchy Value of each decision PROJECT KICK-OFF SUPPLIER INSIGHTS DELIVERY PHASE 1 • • • Kick off meeting with agreed suppliers and category team. i2c provide category landscape and build CDH. Start to understand key decisions in ranging tree, writing up the top line findings/thoughts ready for interim insights review workshop Identify work done to date Align to sainsbury’s objectives Agree target suppliers on board INTERIM INSIGHTS REVIEW i2c facilitate workshop attended by Sainsbury’s and supplier to agree top line decisions from CDH INSIGHTS DELIVERY PHASE 2 AND FINAL REVIEW i2c complete CDH, write up and support supplier’s final presentation to Sainsbury’s. Next steps are agreed. Range go-live POST IMPLEMENTATION REVIEW i2c delivers agreed PIR work to supplier with findings and recommendations. 9 I2C COMMUNICATION MAXIMISE REACH AND RESPONSE WITH AN INTEGRATED CUSTOMER JOURNEY TARGETED ONLINE COVERAGE Mobile App TRIGGERS FOR PURCHASE CONSIDERATION Entrance Gates Trolley and Basket Advertising Sainsbury’s Online New Information Bakers Email AT HOME IN AND AROUND STORE Competition Bakers Social Media FOLLOW UP AND LOCK IN Direct Mail Sampling Milk Advertising Coupon at Till C@T 10 SAINSBURY'S AND I2C MAKE PROMOTIONS WORK HARDER FOR LONGER SUMMARY OBJECTIVES RESULTS Demonstrating how high visibility media can drive awareness of price promotion, whilst also targeting a smaller group of preferred customers drives campaign efficiency • Increase awareness and sales of Ryvita brand • Awareness of new packaging and key SKUs • Maximise visibility of Demonstrating how high visibility media can drive awareness of price promotion, whilst also targeting a smaller group of preferred customers drives campaign efficiency in-store £1 price promotion • Follow-up previous Coupon @ Till redeemers Incremental revenue to Ryvita Crispbreads (%) Post period Total Per head £59k £0.02 Combined £8k £0.21 Coupon £7k £0.22 Trolley 50% 30% 20% 10% Promotion 40% Promotion Customers Trolley 3 weeks – 3m Coupon at Till 3 weeks – 40k Combined 6 weeks – 35k Incremental revenue to Ryvita Crispbreads Post 3% 10% 13% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Trolley Coupon at Till Campaign period Post period 11 SAINSBURY'S AND I2C MAKE PROMOTIONS WORK HARDER FOR LONGER A 10 week campaign period i2c recommendations successfully delivered £56k of incremental revenue for Ryvita, with an additional £17k generated post period Instore and targeted media worked together to drive revenue and prolonged uplift 12 SAINSBURY'S AND I2C DELIVER CATEGORY GROWTH SUMMARY OBJECTIVES RESULTS Demonstrating how high visibility media, combined with targeted channels, can drive customers to the aisle and increase awareness of products and price promotions. Benefiting both brands and Sainsbury’s category. • • • • Over a 19 week campaign and 12 week post period, deploying sampling, entrance gates and coupon at till successfully delivered Increase awareness of Ribena brand Grow aisle and brand penetration Increase promotional effectiveness Drive loyalty to the Ribena brand RIBENA CAMPAIGN DELIVERS INCREMENTAL CUSTOMERS TO BRAND AND CATEGORY Incremental returning customers Incremental revenue % During 13% Post 5% During Post 6% 2% £874k incremental revenue to category Incremental new Customers 8k 14k 6k 24k £129k incremental revenue to Ribena 7k 17k 13 SAINSBURY'S AND I2C DELIVER CATEGORY GROWTH Through increasing penetration of new customers and driving incremental sales from returning customers Ribena campaign generated £129k of incremental revenue for Ribena £874k to the squash and cordial aisle 14 SAINSBURY’S AND I2C CONFECTIONERY EVENT DROVE SIGNIFICANT VALUE • The Sweetshop Extravaganza event Successfully delivered on Customer, Category and Cadbury goals • The key objectives for Mondelez were to: • Help Sainsbury’s to generate excitement around the Confectionery Category • Drive penetration by leveraging taste qualities of Cadbury Dairy Milk • Increase customer engagement with the Cadbury brand The media analysed drove a sales uplift of 4.2% during the campaign period and a further 1.9% post, with a positive return on investment Stores with a combination of all three media drove a sales uplift of 10.1% during the campaign period Communicating to customers across multiple touchpoints increases engagement and uplift 15 SAINSBURY’S AND I2C CONFECTIONERY EVENT DROVE SIGNIFICANT VALUE AT HOME Email Sainsbury’s Magazine Online IN AND AROUND STORE Nectar Competition Barker TV Wall Trolleys Car Park Posters/Banners Aisle Fins In-store Broadcasting In-store Sampling 16 KEY TAKEAWAYS Sainsbury’s have been driving true CCR over a sustained period CPG collaboration has driven sustainable growth Customer has become ingrained in strategy and culture Getting this right can drive significant business improvement 17