CIO Solutions Gallery
Ryan McGuire
Today’s Agenda
• Overview
• Luxottica Overview
• CRM @ Luxottica
• How does CRM fit into the overall Luxottica business?
• What’s the CRM/Analytics org structure?
• How do measure our CRM impact?
• Key questions to address
• How is the college curriculum being changed to be more relevant
and “on point” to digital experience?
• How are organizations personalizing their journeys with customer
insights?
• Q&A
2
A bit about me…my career has been a mix of retail & CPG,
ultimately leading me towards a focus on CRM for the last ~10yrs
- Department Store (Retail), 4 Years
Dillard’s)
- Mercantile Stores Co. (McAlpin’s
- May Merchandising Company (May Department Stores)
- St. Louis, MO
- Consumer Packed Goods (CPG), 5 Years
- Sara Lee & others
- Consumer Marketing, Brand Management & Product Management
- dunnhumbyUSA (CPG & Retail), 8 Years
- CPG/Man Prac team
- CPG/Man Prac team (Coca-Cola, Campbell’s, ConAgra and others)
- Kroger team (Price & Promotion)
- dh Italia with Gruppo PAM (Promotions & Shop/FMCG)
- Kroger team (Assortment/Merchandising team)
- Kroger team (Rapid Insights)
- Kroger team (Loyalty & Rewards)
- Luxottica (Retail), ~2yrs; started in Oct’13
- CRM/Analytics team (Campaign Management & Digital Analytics)
3
Luxottica Overview
OVER 50 YEARS OF EXCELLENCE
5
OVER 50 YEARS OF CAREFULLY PLANNED GROWTH
1960
1970
1980
1990
2000
2010
1961
1971
1981
1990
2000
2011
Inception
Leonardo Del Vecchio
sets up Luxottica di Del
Vecchio e C. S.A.S.
which in 1964 is
transformed into a jointstock company named
Luxottica S.p.A
The first Luxottica brand
collection of optical
eyewear makes its
debut at the MIDO
international trade fair in
Milan
Luxottica Group is
listed on the NYSE
Luxottica Group is listed on the
Milan Stock Exchange’s
Mercato Telematico Azionario
managed by Borsa Italiana
Expansion of Sunglass Hut in Brazil
and Mexico
1988
Is launched. The nonprofit provides vision
care and eyewear
around the world to
those in need
1995
Acquisition of one of
the largest optical retail
chains in North
America:
Acquisition of GMO, Latin America
2001
Acquisition of major distributor
of premium sunglasses:
2012
Acquisition of Tecnol, Brazil
2003
1997
Acquisition of one of the leading
optical retailers in Australia and
New Zealand:
Sunglass Hut expansion in Spain and
Portugal
1999
2013
2004
Further expansions in optical
retail in North America
2014
Acquisition of glasses.com
2005
2015
2006
2007
2008
Group acquires
brand
Enters into
license
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A RICH BRAND PORTFOLIO
Proprietary
brands
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CRM @ Luxottica Overview
CRM has three main functions to enable behavior change at
Luxottica, enabled by underlying IT technologies
We aim to complement our existing strengths to become a customer centric organization
•
Analyze and understand our customers
•
Inform the brands’ action plan
•
Deploy the most appropriate engagement strategy
9
CRM/Analytics team has grown to over 30 people in the last
2yrs, including customer care & call center
10
CRM performance is measured across four metrics, partnering
heavily with IT to deliver results
Global Control
Mailed customers vs. non-mailed customers
(long-term impact)
1. Split customers into two groups at random:
Global Holdout (not mailed) & Non-Global Holdout (mailed)
2. Customer groups are then “stratified”, ensuring customer
groups are comparable (Look alike customer groups)
3. Measure the performance between the two customer groups
*Measures CRM impact on a long-term basis
2yr Repurchase Rate
iSales
Mailed customers vs. non-mailed customers
(short-term impact)
1. Utilize campaign history tables for mailed & non-mailed
2. Gather total sales responses for campaigns with both mailed
& non-mailed customers
3. Compare mailed vs. non-mailed customer sales to
understand iSales generated with mailed customers
*Measures CRM impact on a per campaign basis
NPS (Net Promoter Score)
1. Define a base period (in the past)
2. Track for 2 year how many customers purchase again of the
ones who purchased during the base period
3. 2yr repurchase rate is the ratio of customers who purchased
again and the customers who purchased in the base period
1. Employ deployment after recent purchase
2. Likelihood to recommend 0-10 scale with free text
3. Store-level report on CSAT, NPS, Free Text insight
4. Track overtime with rolling base periods
*Measures CRM impact in driving repeat visits
*Measures customer experience at a customer level
11
How are universities evolving curriculum & digital
experiences?
Local greater Cincinnati universities are evolving around data
and digital interactions
•
Xavier’s introduced an data analysis focused program in 2015
•
•
•
Hired former dhUSA/84.51 employee to run it & enroll local companies
to participate in partnership with XU
Xavier’s enhancing traditional curriculum with newer, digitally focused
courses:
•
Undergrad Digital Marketing (fantastic adjunct instructor)
•
Undergrad & Graduate Social Media
Miami’s introduced the ELM / eLearning Miami
•
Piloted during Fall 2014 & full rollout in Fall 2015
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How are organizations personalizing customer
journeys with data insights?
PEARLE VISION CUSTOMER JOURNEY 2.0
Evolving to become more and more personalized
EER Inactive (48/60 mos)
EER Past Due (30/36 mos)
Thank you EM
NPS
Seasonal Eye Health EM
EER/Recall DM/EM
C.O.R.N.E.A. EM
C.O.R.N.E.A. EM
Brand EM
Seasonal Eye Health EM
Brand EM
Cross sell Rx Sun DM
EER/Recall DM/EM
Seasonal Eye Health EM
Eye Health EER EM
Cross sell Rx Sun DM
Equity DM/EM: OD Campaign, CHO/2nd Lifer, Style-Fashion
MVC DM/EM
Customer Appreciation DM/EM
Brand EM
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Birthday DM/EM
Lifecycle
Seasonal Eye Health EM
Existing
Calendar based
NEW
Triggered event
Kroger (with dhUSA/84.51 partnership) has created 10,000,000
“snowflakes” each quarter for customers
• When it comes to loyalty, it’s all about
rewarding customers for their behaviors
• For the last 10 years, Kroger’s been
rewarding their best customers (premium loyal
& valuable segments) with something called
the LCM (Loyal Customer Mailer) each
quarter
• The LCM has 12 targeted coupons (based on
household buying behavior) and roughly
10MM unique versions, hence why Kroger
calls it their “snowflake”
APPS BECOME HEALTH COACHES
• Damage to your hearing is caused by a
complex relationship between how long,
how loud, and what you listen to
• The HearAngel app monitors your
headphone’s audio and notifies you when
you’ve reached your daily sound allowance
• It also allows you to experience what
hearing loss would sound like, by producing
a sound similar to someone who is affected
by hearing loss
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LOCKED IN LOYALTY WITH THE PUSH OF A BUTTON
• When it comes to loyalty, it’s all about
making it easy and convenient
• Amazon Prime recently released
Dash, a product that is changing the
convenience and loyalty of the CPG
landscape
• The Dash product allows consumers
to engage in a type of one-click
shopping in their non-digital lives
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Massive Data, Massive Insights
• Virgin Atlantic added sensors to
every component on their 787
Boeing aircraft and is capitalizing on
the internet of things to provide real
time machine insights
• The airplane creates roughly a 1/3
terabyte of data per flight
• Being able to optimize and use this
massive amount of data means
faster on-the-ground turnarounds
and less delays for passengers
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Q&A