Customer Value Maximization for a leading Indian Retailer

A Xerago Case study

Assignment Background

The client is an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones. Their multi-brand outlets were providing products at the lowest price in the market. They claimed to provide mobiles at the most competitive prices in the market and wanted to launch mobile retail shops across 19000 locations. The client wished to break through the existing clutter in the mobile phones market and wanted to position themselves as the dealers who offered mobiles at competitive rates.

The Goal

To increase leads among the deal-seeking segment

The Scenario

TVCs

Search

Display media

Poor response rate

Poor leads

Poor conversions

RESULTING IN

Tactical Operations Outcomes

eDM

Customer Value Maximization Approach

By making interventions on,

Through objective measures, a

snapshot of client’s marketing

effectiveness on many levels and

dimensions was constructed and

this helped us objectively

demonstrate the effectiveness of

the client’s current marketing

programs.

Based on the current state and

desired end state, the road-map

which involved a re-architecture

of strategy and re-alignment of

resources was developed and

interventions were made to

catalyze the marketing growth

engine.

This was the high value growth

phase where all possible marketing

variable combinations are tweaked

on a concurrent basis to produce

the optimal spend to impact

outcomes. Learning was constantly

updated for ongoing maximization.

MEASURE MANAGE MAXIMIZE1 32

In order to achieve client’s goal, Xerago deployed its proprietary Customer Value Maximization framework, which involved the following 3 stages:

Process TechnologyCreative Media

The Measure phase

• Brand was perceived as “Low cost, high utility” due to the brand lineage towards the grocery retailer.

• The deal-seekers segment was the major segment

• The deal-seekers segment predominantly had the following activity flow

o Price comparatoro Negotiator

Parameters X-rayed

Brand positioning & recall

Evaluation Results

Marketing programs & service interactions

Buying behavior cycle

The Manage phase – Activities & Areas Impacted

Teams ImpactedProcess Overhauls:

Interventions were made on stock-keeping process &cross-channel closure process

Media Interventions:

Identification of high traffic websites where prospects were likely to visit and running campaigns on such sites. Identification of relevant keywords for search marketing, both short and long tail keywords

Technology Interventions

Lead Management System, de-dupe system, model building

Creative Interventions:Search Ad copy, long tailed keywords, content and imagery build-outs for display campaigns, landing pages, web assisted content for outbound call center

The Manage Phase – Teams Impacted

Channels

SKU

CRM MIS Reporting

IT

TEAMS IMPACTED

Analytics

The Maximize phase

Xerago setup a concurrent framework to measure the effectiveness of the interventions made to

ensure desired results are delivered. This was achieved by establishing benchmarks for various

interventions and real-time optimization of the efforts. Below are the outcomes.

Achieving twice the target lead numbers

30% response rate with people making calls to call center for price verification/negotiation

75% conversion on calls made to 1800 call center

Ongoing optimization of lead generation process by performance based creative swapping.

Thanks

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Xerago is a Customer Value Maximization company headquartered in Chennai, India. Ever since inception, Xerago has evolved marketing solutions for clients, using a

combination of Robust Process, Creative Excellence, Cutting edge Technology and Discrete Measurement. Over time Xerago has created IP both tangible and in-tangible

that enables the entity to retain its unique advantage of being among the few entities globally that has stellar depth of consulting with a combination of large scale

marketing outsourcer.

More About the Client:

The client is an Indian retail chain with 1600 outlets selling groceries, fruits,

vegetables, medicines and mobile phones. It began operations in 1997.