Digital.ru. Success Story

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1 Digital.ru Success Story

2 CONTENTS BACKGROUND CHALLENGE SOLUTION IMPLEMENTATION OUTCOMES

3 Russian Retail Giant Digital.ru Implements BPMonline Loyalty System to Transform Sales and Marketing Strategy BACKGROUND Digital.ru is one of Russia s largest computer and technology retailers, offering products through nearly 150 stores and online at digital.ru for nearly two decades. CHALLENGE Digital.ru strives to be more than an ordinary retailer, wanting to shape the best possible customer experience, provide exceptional customer service and build stronger relationship with its loyal customers. At the same time, the company recently faced an increasing competition with lower quality, but also lower prices. Therefore, the global challenge for Digital.ru was to increase sales and achieve sustainable business growth without capital investment in geographic expansion and opening new retail stores. 3

4 Digital.ru analyzed its regular sales and marketing data, activities and processes to better understand customer buying decisions and loyalty, and found that: 25% About one out of four buyers were not driven through advertising campaigns. Meaning that Digital.ru had a stable portfolio of repeat customers though the frequency of their purchases was low. 12% 1 There were only 12% first time buyers, showing that costly and risky regular ATL and BTL campaigns did not have enough impact on the target audience. 26% Despite the fact that 26% of purchases were made online, the company didn t have any motivational or loyalty program in place for online buyers. Digital.ru discount program was applied only in retail stores. Costly and risky regular campaigns, a growing gap between online and offline buyers behavior and a reduced number of new customers made it clear that the entire sales and marketing strategy needed to be transformed. SOLUTION The sales and marketing transformation strategy anticipated 4 major goals: Raise the frequency of purchases by repeat customers through more personalized communication and targeted approach 1 Deliver the same values and benefits to both offline and online customers though implementation of a unified loyalty program 2 4

5 Increase ROI of marketing campaigns through better segmentation and targeting 3 Reduce the number of price seekers by increasing emotional loyalty to the brand and increasing the number of purchases made online 4 Digital.ru decided to implement a comprehensive system that would help improve customer service, engage buyers and build brand loyalty. After having properly analyzed several technologies proposed, BPMonline was selected for the following reasons: Better flexibility of the BPMonline platform (customization capabilities, speed of operations). 1 The top level functionality (ability to create customer segmentation for targeted campaigns, business process management capabilities). 2 Intuitive and easy to learn user interface (single interface, 3 with no need to move among multiple windows). Speed and ease of implementation (BPMonline suggested to launch a pilot project in less than three months to test the strategy). 4 IMPLEMENTATION BPMonline designed, developed and launched the pilot project in eight weeks with a fully operational system across all channel after another eight weeks. BPMonline solution is used to support the following operations: 5

6 OMNI-channel customer engagement A single technology platform to support Digital.ru efforts through every customer touchpoint. Tools to automate business processes, and track key performance indicators aligned with omni-channel strategy. Loyalty program reward management Managing all the aspects important for successful loyalty program operation: processing rules, cards, bonuses, fraud control. Tracking and analyzing customer interests and buying behavior Tracking a complete customer journey, including pages visited on the website, social media activity, campaign response, purchases online and in retail stores, ratings and reviews. Sophisticated customer segmentation Customer segmentation based on social demographics, geography, buyer behavior, online behavior and interests to better identify and engage with each of customer segments. Marketing campaign management Automated multichannel marketing campaigns targeted for each of the segments, tracking the results of the campaigns and ROI. Analytics Profound analytics to get a deeper understanding of the customer and best tune the engagement strategy to his needs. 360-degree customer view Capturing robust customer data, such as purchase histories, profiles, wish lists, loyalty program information to deliver an unprecedented level of service. 6

7 One of the best-accepted initiative that had the biggest impact on emotional loyalty of Digital.ru customers was the Dreams Come True project. The idea is that customers submit their dreams online or in one of the retail stores. The whole community of Digital.ru buyers choose the most important dreams and can donate their bonuses to help the dreams come true. Alex had a dream to have a highperformance rigid sport wheelchair he couldn t afford. Understanding that this vehicle would be very helpful in all areas of Alex s life Digital.ru community decided to make his dream come true. Andrew s dream was to get iphone 5 as a Christmas gift. Digital.ru CEO came to Andrew s place dressed as Santa Claus to wish Andrew merry Christmas and present him a new phone. This program resulted in a high-level of customer engagement elevating the Digital.ru brand. 7

8 OUTCOMES The Digital.ru loyalty program was the first of its kind in the Russian retail market. Today it covers more than 600,000 customers, delivering the following benefits: 160% increase in sales due to the growing number of repeat customers, purchases made online, emotional loyalty to the brand, and brand advocacy. Greater marketing campaigns ROI: open rate of campaigns increased by 20%; sales through targeted special offers increased 100 times. Overall revenue growth without capital investment in opening new retail stores and geographic expansion. Oleg Lee, CMO at Digital.ru It usually takes at least a year to implement a comprehensive loyalty program. On the other hand, Retailers need to rapidly adapt to the fast pace market changes amid increasing competition. This was an aggressive transformative effort, moving from pilot to operation in less than 5 months. With the help of BPMonline, we can now run targeted and highly personalized campaigns, efficiently manage customer lifecycles. This helped us transform our sales and marketing processes and manage ongoing changes and track success with meaningful analytics and dashboards. 8

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