Case Study - Luxury Retail

CRM design, roadmap, technology architecture for a luxury retail chain

A major high-end luxury retail department store was to further enhance its competitive advantage by becoming far more customer-centric than any of its competitors.

Kpability was engaged to help the luxury retailer dive deep into its customer database and discover strategic insights around their loyalty program and CRM. Using data mining and customer intelligence tools, techniques, and methodologies, Kpability unearthed several customer profiles based on a number of variables including customer demographics and more importantly customer purchase behavior around stores, departments, categories, sub-categories, and brands. These customer insights helped the retailer execute a more disciplined approach around strategic customer segments.

Thereafter, the project progressed towards a holistic CRM engagement where the consultants were involved in designing the CRM strategy and organization, particularly where personal shopper’s roles expanded to that of lifestyle consultants. One-to-one marketing programs were designed specifically for each customer segment. Organizational design, end-to-end process design, work processes, workflows, and performance measures were put in place.

The CRM technology was developed and extensively customized for the use of Lifestyle Consultants, Store Operations, Marketing, Merchandising and overall Management. The CRM system was integrated with both their core retail system and their loyalty program to the degree that the purchasing behavior of each of their 200,000 plus loyalty members could be viewed, analyzed, segmented, and managed.

Apart from the Accounts Module, a Customer Module was designed to give a comprehensive view of the key customers and loyalty club members particularly around their demographics, their lifestyles, and their very shopping behavior at the stores. The Customer Module included a snapshot of their purchase history, loyalty points and rewards. New tabs were also created to view specific customer information, lifestyles, family details, shopping profiles, and others. Finally, a customer intelligence and business intelligence tool were deployed for extensive customer, store, and category analytics.