NECTAR CASE STUDY

Clive Underdown

Head of Campaign Management, EMEA

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MY INTRO…

Discover how Aimia is using IBM Unica's enterprise marketing solution todeliver relevant and personalised marketing communications to the millionsof UK consumers who collect Nectar loyalty points

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AGENDA

• The Aimia world

• Nectar

• Why & how we use Unica

• How we’ve benefited from Unica

• Example campaigns

• Looking to the future

THE AIMIA WORLD

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AIMIA IS A GLOBAL ORGANISATION

6

3,800 people

30 offices

20 markets

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OUR ECO-SYSTEM

Coalition

Loyalty

Proprietary Loyalty

Analytics& Media

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HERE ARE SOME OF OUR BRANDS & PARTNERS

Earn Partners Burn Partners

Retailers Manufacturers

Proprietary Loyalty UK

Coalition

Loyalty

Analytics& Media

NECTAR

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THE NECTAR EXPERIENCE

Play video

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TOUCH-POINTS WITH THE NECTAR COLLECTOR

OUTBOUND

INBOUND

Statements Targeted & Triggered Comms

ATL / PR

Call Centre Online

Mobile Social

IN STORE

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OUR COMMUNICATION GOAL: RIGHT OFFER, RIGHT TIME, RIGHT PLACE

12

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THE DATA ASSET WE USE TO DRIVE PERSONALISATION

Lifestyle and social data

Behaviours and Attitudes

Personal and registration data

Transactional data

• Name

• Gender

• DOB

• 95% accurate (regular cleansing)

• Activity in all Nectar partners and

e-stores (location, spend, frequency)

• Responsiveness to Nectar offers

and Partner marketing

• Bespoke insight into competitor shopping

behaviour

• Attitudes to loyalty (e.g. loyal to

merchant or regular switching)

• Price sensitivity (e.g. deal-seeker

or buys premium products)

• Online engagement

• Mosaic segmentation

• Household metrics (children,

income, home/car ownership)

• Service providers (phone,

broadband, energy)

• Address

• Email

• Phone

SourcesRegistration data

and account

management

Regular data cleansing and third

party matching

1Bn+ Nectar online and offline

transactions p.a.

Nectar.com online behaviour and

preferences

Nectar targeted market research and

third party surveys

WHY WE CHOSE UNICA

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WHY WE NEEDED AN ENTERPRISE MARKETING SOLUTION

Multiple Touch Points

Changing Client Priorities

Increased ComplexityMore Demanding

Consumers

+ =

“Show me the value”

Increased Frequency

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2,500

Campaigns

8,000

Unique

Offers

300,000,000

Personalised

Messages

WHY WE NEED AN ENTERPRISE MARKETING SOLUTION

18,000,000

Collectors

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WHY UNICA…

Industry leader 133 evaluation criteria

Quality of the UnicaSolutions Team

Future product roadmap

Partnership model

HOW WE USE UNICA

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OUR CAMPAIGN MANAGEMENT PROCESS

Type here

REVIEW / SET

STRATEGY

Type here

Type here

Type here

Type here Type here

PLAN BRIEF

BUILDDEPLOYMEASURE &

EVALUATE

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OUR CAMPAIGN TOOLS FIT OUR PROCESS

Review /Set

Strategy

Plan, Brief Build & Deploy

Measure & Evaluate

Identify Target AudienceExplore

Customer Transactions Customer Interactions

Plan & Brief Build Deploy

Model

Self Serve

Self Serve

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REVIEW / SET STRATEGY, PLAN AND BRIEF

Strategy & Planning

Plan ResourcesBrief Delivery

Teams

• Marketing calendar updated

• Stakeholders committed

• Requests submitted

• Campaign details input toUnica central repository

• Campaigns reviewed

• Insights taken

• Objectives & strategy set

• Communications plan created

• Campaign Submitted in Unica MO:

- Full Objectives

- Target Groups

- Suppressions

- Offer and assets

• Campaign brief reviewed

• Campaign approved or rejected

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SET UP & BUILD

Offer Management

Client Briefs Agency

Campaign Build

Offer Allocation

CampaignApproved

• Roles assigned to tasks

• Campaign project createdClient Approval

AssetsReceived

Email Build

Test

Tasks managed and monitored

through Marketing Operations

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EXAMPE FLOW CHART – A MARKET RESEARCH CAMPAIGN

Creating the Target Group Creating the Segments and Contact List

Create Target Group

Previous Contacts & Participants

Exclude Previous Contacts & Participants from Target Group

Create Segments

Create Contact List

Update Contact History

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DEPLOY

Data Processing

(e.g. Mail Sort)

P&P

3rd Party

Vendor(e.g. Catalina)

Print Vendor

Channels

Client

Sign Off

Creation of Target List

API

Print

Digital

Email

Output File

Email send

Creation of

Contact History

Tasks managed and monitored through Marketing Operations

HOW WE’VE BENEFITED FROM UNICA

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HOW WE HAVE BENFITED BY USING UNICA

Standardisation

Tasks re-deployed

Content Management

Better organisational alignment

Centralised

data repository

Better data &Greater transparency

Quality Scale

Innovation

Re-usability and

automationIntegration

Speed

Better decisions

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UNICA ENABLES US TO OPERATE A FLEXIBLE AND SCALABLE CAMPAIGN RESOURCE MODEL

Nectar

Analytics

Campaign ServicesTeam

Nectar

ISS

Standard

Bespoke

D

E

L

I V

E

R

Y

Bespoke

Standard

ISSAnalytics

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UNICA HAS HELPED US KNIT TOGTHER COMPLEX, CROSS FUNCTIONAL PROCESSES

Nectar

InsightRelationship

Exec

Campaign

ServicesDigital WNS

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LESSONS LEARNED

It was a journey, not a project

Change for the organisation

Implementation required significant change management

It wasn’t just about technology

Change for the individual

Change for IT systems

EXAMPLE CAMPAIGNS

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PERSONALISED STATEMENT AND OFFERS

Description

• 20M paper PUMs and 10M e-PUMs sent

annually

• Larger target audiences in the Summer

and at Christmas

• Points balance and programme updates

• 1-1 targeted coupons (8M variants)

• Open rate of >95%

• Average overall response rate: 15–25%

Offer coupons“Your points update”

Featured in all 30M PUMs

Collect 5000 Nectar points when you take

out a Capital One Credit Card

Where are our Partners featured?

1-2-1 tailored offers

Tailored Message to Collector

Tailored Message to Collector

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PERSONALISED OFFERS ONLINE

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PERSONALISED OFFERS VIA MOBILE

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TRIGGERED COMMUNICATIONS

Description

• Bi-weekly mailing triggered by

Collector transacting with a new

Partner (earn) or redeeming 3,000

Points (burn) in the last month

• 1.4M sent each year

• 1-1 coupons

• Response rates: 25–40%

Where are our Partners featured?

Offer coupons

Tailored Message to CollectorTailored Message to Collector

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35

A MULTI-MEDIA, INTEGRATED COMMUNICATIONS PLAN

38kFeb FebFebJul FebMar Apr/May Aug Nov

£1

PROMO £1

PROMO

DM

50k

PUM

STOP!

All DM recipients (Cycle 2)

190kA)

Trigger coupon

Redeemers of either the DM or C@T a) (Not both)

15.2kB)C@T (Cycle 8/9)

75kC)

LOOKING TO THE FUTURE

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OUR CAMPAIGN WORLD HAS CHANGED

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THERE ARE MANY DIFFERENT KINDS OF CONSUMER

Experience

focusedValue

focused

Convenience

focused

38

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BUT THEIR SHOPPING JOURNEYS ARE THE SAME

39

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WE NEED TO HARNESS THE FORCES AT WORK SHAPING NECTAR COLLECTORS’ SHOPPING BEHAVIOUR

Shoppin

g

tools

Social

networkingPersonalization

Access

40

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CRITICAL ORGANISATIONAL BEHAVIOUR

41

Agility

Relevance

Authenticity Focus

THANK YOU

Clive Underdown

Clive.Underdown@aimia.com