METRO GROUP

Published on 26-Sep-2012

"The eCouponing system does away with forgetting coupons at home, or getting coupons you won’t use. We expect to see higher redemption rates and more loyal customers as we work to refine coupon delivery and targeting." - Dr. Gerd Wolfram, Managing Director of METRO SYSTEMS, Head of the METRO GROUP Future Store Initiative project

Customer:
METRO GROUP

Industry:
Retail

Deployment country:
Germany

Solution:
Customer Relationship Management, Digital Media, Master Data Management, Smarter Commerce, Smarter Planet

Smarter Planet:
Smarter Solutions for Retail

Overview

METRO GROUP (Metro/Makro Cash & Carry, real,- , Media Markt, Saturn & Galeria Kaufhof) is one of the largest and most international retailing companies. The company has a headcount of over 280,000 employees and operates around 2,200 stores in 32 countries.

Business need:
The German retailer “real,-” is taking part in a digital customer loyalty program, managed by Payback, that gives customers points and rewards for shopping in its real,- hypermarkets. However, its couponing system was based on paper coupon mailings, which were costly to administer and expensive to be targeted to specific customer segments or based on shoppers’ actual buying behavior. Payback and real,- sought an electronic coupon system that would better target customer segments, and encourage in-store coupon activation via smartphone to increase up-selling and cross-selling revenue.

Solution:
By replacing mass mailings of a limited number of paper coupons with electronic delivery of digital coupons, this retailer can segment by customer demographics, and send nearly unlimited coupons to the customers most likely to use them. Soon, the retailer will be able to track and analyze coupon usage, enabling it to continuously refine its strategy, to encourage higher redemption rates and improved sales. Of critical importance to driving sales is the fact that digital coupons, unlike paper coupons, can be sent to the customer “just-in-time” for a particular holiday or seasonal event.

Benefits:
Coupon validation takes a maximum of 320 ms—which appears as nearly instantaneous to the customer and sales clerk—speeding the checkout process Enables targeting of particular customer segments in the future, and costs much less than traditional paper-based couponing campaigns By usage of the Electronic Product Code Information Service (EPCIS) framework, standardized interfaces enable usage of solution for multiple other couponing use cases like gift cards, empties return deposit and so on

Case Study

METRO GROUP (Metro/Makro Cash & Carry, real,- , Media Markt, Saturn & Galeria Kaufhof) is one of the largest and most international retailing companies. The company has a headcount of over 280,000 employees and operates around 2,200 stores in 32 countries.

The Opportunity
The German retailer “real,-” is taking part in a digital customer loyalty program, managed by Payback, that gives customers points and rewards for shopping in its real,- hypermarkets. However, its couponing system was based on paper coupon mailings, which were costly to administer, and which were expensive to be targeted to specific customer segments or based on shoppers’ actual buying behavior. Payback and real,- sought to implement an electronic coupon system that would be able to better target customer segments, and encourage in-store coupon activation via smartphone to increase up-selling and cross-selling revenue.

What Makes It Smarter
Successful coupon campaigns encourage customers to come into a store and buy items they might not otherwise purchase. By replacing mass mailings of a limited number of paper coupons with electronic delivery of digital coupons that can be activated online or in the store, this retailer is able to segment by customer demographics, and send a nearly unlimited number of coupons to the customers who are most likely to use them. In the near future, the retailer will be able to track and analyze how and when coupons are used, and by whom, enabling it to continuously refine its strategy, to encourage higher redemption rates and improved sales. Of critical importance to driving sales is the fact that digital coupons, unlike paper coupons, can be sent to the customer “just-in-time” for a particular holiday or seasonal event.

Real Business Results
· Coupon validation takes a maximum of 320 ms—which appears as nearly instantaneous to the customer and sales clerk—speeding the checkout process
· Enables targeting of particular customer segments in the future, and costs much less than traditional paper-based couponing campaigns
· By usage of the Electronic Product Code Information Service (EPCIS) framework, standardized interfaces enable usage of solution for multiple other couponing use cases like gift cards, empties return deposit and so on

Products and services used

IBM products and services that were used in this case study.

Software:
InfoSphere Traceability Server

Legal Information

© Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States September 2012 IBM, the IBM logo, ibm.com and InfoSphere are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.