2012 An Post Winners’ Breakfast

Campaigns Presentation by;

David O’Sullivan, Sean Collins, Director Customer Insights & CRM ManagerIgnition-integrated ideas people SuperValu (Musgrave Retail Partners)New Ways to Save every day Spend Less with SuperValu

SuperValu is part of the Musgrave Group, Ireland’s largest grocery and supermarket retail chain.

SuperValu comprises 190 individually owned and locally based, retail stores operating across the 26 counties and headquartered in Cork.

Real Rewards is SuperValu’s fob based Customer Loyalty programme which first started in 2009.

For each €1 a customer spends, they collect a point towards benefits such as low cost Getaway Breaks and 5% off Voucher once they reach 400 points.

Campaign BackgroundWhat is SuperValu Real Rewards?

Market Background

An already cut-throat grocery / retail market was further compromised by biting recession & growing promiscuity amongst shoppers.

SuperValu saw opportunity to engage Real Reward members on a much more direct, personal & commercial level & cultivate value/credibility in the programme by delivering direct benefits through a simple, measurable channel.

In 2010, SuperValu undertook test mailings to evaluate Direct Mail at the 3 key family spend occasions of Easter, Back to School & Christmas.

Voucher redemption was on average greater than 20% for the 3 mailings.

These impressive voucher redemption results convinced SuperValu that Direct Mail as a strategic channel for Real Rewards would; Enhance long term relationship with shoppers Increase shopper retention Build loyalty Increase spend over time through realisable target spend.

SV board gave a green light for a limited 2011 Real Rewards Direct Mail campaign, but were conscious of it need to deliver Real Results

Feb 2011 in response to budget & government cuts, New Ways to Save Everyday was launched on TV. It was integrated visually with DM & featured a store owner with a blackboard, which was used to house the savings.

This was the first of many Real Rewards mailing campaigns undertaken, which eventually totalled over a million people being mailed that year.

The Green Light for Direct Mail

Using Data as a Creative element

The overriding key issue for the successful development of the campaign was the effect use of the Real Rewards database

Data analysis of purchasing behaviour created 3 clearly identifiable consumer spending segments; New Members, Mid-High Spenders & Lapsed shoppers

Voucher Value & realisable target spend increase assigned to each shopper

Letter to ‘do all the talking’ and was a vehicle to connect and involve RR shoppers in value voucher offerings through a high degree of variable alpha-numeric personalised data within a simply tailored letter format.

Letters harnessed the potent and powerful impact of conversational copy with the data, in a template format originating from each local store / Manager, that welcomed, engage & incentivized each particular type of Real Rewards shopper.

Getting the Data-Basics right

23k New Members – 2 Vouchers, 2 Wks35k Mid-High Spenders – 3 Vouchers, 3 Wks 32k Lapsed Shoppers 4 Vouchers, 2 Wks

Personalisation… Knowing the Customer needs

Variable VoucherSavings Total

2D Barcode for post mailing analysis

Variable Voucher Value

Localised Store Name

Shoppers’Target Spend

Total savingsavailable with

5% voucher

Name of Local Owner or Manager

Personalised Vouchers

4 lower value Vouchers catered for smaller more

frequent shopping patterns

New Ways to Save… Real Results

Voucher Redemption Averaged 19.7% across 3 letter types

Big benefit was that during an off peak period shoppers bought into SuperValu because of the relevance of the offer and its timing after the budget and government cuts.

15% of the lift generated was maintained in the following 8 weeks within the +55 year old segment (Lapsed Shoppers) targeted

12% of the lift in spend generated was maintained in the following 8 weeks in the reduced spend segment (Lapsed and Mid Level shoppers)

Real Rewards Pre-Christmas Campaign

Spend Less with SuperValu

Winner of Gold for Best High VolumePresented by Sean Collins

Customer Insights & CRM Manager

From the ground up….

SuperValu “A brand you can trust” In challenging times, maintaining loyalty is imperative 800,000 active members through 190 independent retailers

> 1 Million Real Reward transactions /week100k 5% off Vouchers earned every week

Challenge to SuperValu was how to build from this platform Communications “on brand” Value at the centre Relevance obvious to the consumer

A passion for Retail … For 190 retailers; ”if my wife get this….”

Must enrich the offer Must not alienate member segment Must have appeal to non-Real Reward members

In 2010 we were told, “Here’s a bit of rope ….” Easter, BTS & Christmas Success was clear by end of day one of BTS Management team convinced to invest in this channel Retailers … coming on board but more work to do…

‘Kicking & screaming…’ into a CRM plan for 2011 Won total trust by the first week in February. Ownership / Passion - Delivered numerous DM pieces

“Got it right in 2010 – Can you do it twice ?” • Q3 & Q4 where always going to be about winning 1 week• Market won’t be taken by surprised again in 2011• Consumer wanted “To spend less for Christmas & take the

fear out of January”• Momentum had to build from earlier so process started in

October & run into January– Win back those who wavered in Oct – Grow engagement with mid loyal in Nov. through max

relevance : Multiple different offers x 5 different groups reflecting current behaviour

– Convert mid to top & hold top @ Christmas and…– build momentum into January

Integrated message through all channels

>30 variable value offers & targets

Over 1/3 of active members mailed

Many different Saving : Spend offer levels

For each of 5 different groups

New Members Top /Mid/Etc.

Integrated message through all channels

Spend less!

>30 variableoffers & targets

Keep the message simple

Customised member data

Back Page Getaway Breaks Offer

Real Rewards, Real Results we can Vouch for

• Own shoppers VFM ratings @ record high pre Xmas• >25% voucher redemption• Higher than expected sales lift amongst those mailed• Met the challenge of equalling SuperValu’s best ever

Christmas week in an even tougher 2011….• And beat it...• SuperValu share rose to 20.2%• 2012 collaborative mailings with suitable suppliers

Strong co-branding

Real value to drivestrong engagement

Customer selectiondown to current item level purchase behaviour

Driving Real Value for suppliers

2D Barcode links member to redemption