With consumers’ channel choices expanding, retailers are increasingly reliant on the ability to quickly and efficiently segment and target customers to maximize messaging and engagement.
Scandinavian sports retailer Stadium, the largest retail chain in the Sweden, Denmark and Finland area for sport, outdoor and fashion apparel, recently boosted by its loyalty initiative with a cross-channel marketing initiative. With a net worth exceeding 400 million Euros (equalling approximately $560 million in US sales), the outlet has more than 120 stores in their target area. By tapping into the power of multi-channel platforms, Stadium revolved its in-depth marketing around the customer’s purchase history, interests and offers personalized communication options.
According to a recent survey conducted by media agency Mindshare, Stadium had the third-most-loyal customer base in its region, thriving off of interactive conversions as their key relationship marketing strategy. However, the company was seeking to enhance brand-to-consumer intimacy and to create a more loyal membership base that would help customers influence their peers and enhance the retailer’s growth.
To help enhance the customer experience, Stadium established a free loyalty program based on the collection of bonus points with each purchase to receive coupons, product offers and access to VIP in-store “member days.” The loyalty program can be activated through the traditional retail card, which shoppers register and bring to locations, or a cardless method that is tracked by shoppers’ civic number on their driver’s license.
“We offer a cardless membership because in Sweden consumers don’t carry credit cards, but rather a civic number,” explained Peter Janejford, Loyalty Manager, Stadium. “When customers apply in the store, they just give their civic number, scan the back of their ID and fill out e-mail and mobile phone information to become a member.”
With over a million members in their program database, Stadium sought out a cross-channel method that would unify all customer contacts and introduce ways of communicating through e-mail, web, social media and direct mail. To get this 360-view of the customer’s actions, Stadium implemented Neolane and focused on increasing their “active users,” shoppers who make at least three purchases within a six-month span, from 60% to 70%. The company also sought to increase overall value of the brand.
“We’d like to share information about the customer across all touch points and go from complexity to simplicity,” Janefjord said. “We’re trying to build this 360-degree customer view where Neolane’s technology is the center of it. We have a vision where we’d like to let customers decide where, when and how to be contacted.”
The implementation of Neolane in Stadium’s customer strategy was designed to gear marketing campaigns from simple segmentation to one-to-one contact personalized and relevant to each shopper’s declared or inferred interests and purchase history.
E-mail and direct mail campaigns are already being utilized, while an SMS program is being considered as communication with customers who opt-in. This flexibility allowed shoppers to stick to their platform of choice to receive all Stadium rewards and offers.
To create a more efficient e-mail system, Stadium implemented template-based communications to consistently create newsletters and collaborate on all content. By utilizing Neolane, Stadium created more personalized BtoC conversations and thorough contact management via web and phone. This new marketing automation platform is the company’s first step towards building a thriving loyalty management strategy.
“In order to achieve results quickly, Stadium is taking a phased approach to implementing Neolane,” said Franck Attia, Director of Nordic Operations, Neolane. “Even with this approach, many of our clients in the retail sector have seen a return on investment within a year, and we are certain that will be the case for Stadium as well.”