Successful rewards programs anywhere in the world have always had customer data at the center of their strategy. Without strong customer analytics capabilities, a successful rewards program is simply inconceivable.

1. Rewards Program led Business Growth
Coffee Day Fresh ‘n Ground

2. Coffee Day Fresh ‘n Ground:
inTouch has delivered year-on-year benefits to
Rewards Program led Business Growth several clients in a wide variety of businesses
– Consumer, Retail, Ecommerce, Food &
Beverages, Jewelry, Beauty & Healthcare,
Harish Bijoor (CEO, Harish Bijoor Consults): Coffee Card Program Education, Satellite and Web Communication,
is the best thing that has happened to the Fresh ‘n Ground Petroleum, HR Services and more – over
several long term and on-demand
brand..
engagements for the past 5 years.
Jayanth C J (President, Coffee Day Fresh ‘n Ground): We cherish Salary Computational Tool for the largest
the 3 years of a highly successful partnership with inTouch! temp staffing business in India >> predicts
market benchmarked salaries based on skills
and attrition scores
S t o r i e s
Pricing and Discount Optimization for the
Successful rewards programs anywhere in the world have always
world’s largest Satellite Communication
had customer data at the center of their strategy. Without strong business >> has delivered more than $100
customer analytics capabilities, a successful rewards program is million in potential annual savings for the
business
simply inconceivable
S u c c e s s
The case Sales Program Effectiveness for America’s
largest Air conditioning systems provider >>
Rewards programs are a prime focus area for inTouch and our has afforded visibility into rates of return
first client here was Coffee Day’s Fresh ‘n Ground Division. The delivered by various marketing programs
across sales territories in North America
division manages a chain of 450 stores across South India that
sell Filter Coffee Powder. The business has a franchise of more
than 500,000 households. Supply-Demand Matching & Optimization Tool
for a large Staffing Service provider in India >>
An essential characteristic of the business is that consumers in has brought down doability turnaround from 3
weeks to across the table for the salesforce
South India are habituated not only to drinking coffee as part of
their daily routine but are also hooked to a particular
Topline growth oriented rewards programs for
aroma/taste and hence to a particular brand. Thus, there was a
a market leading Filter Coffee business in India
strong case for rewarding the customer base for their patronage >> has delivered a 3-fold increase in revenues
of about 7 years, in order to secure their loyalty. for 3 straight years for the 425 outlet chain
Our business study revealed some challenges, however. In a
Customer Feedback Decision Support and
mature category, the topline growth for the industry was a Smart Response System for India’s largest fine
meagre 2% and most of this was driven and sustained with dining restaurant chain and many more
frequent use of short term promotions. The category also market leading café and QSR chains >> drives
a significant percentage of repeat visits across
constituted a routine purchase for consumers – nil excitement the 20 outlet restaurant chain
and extremely limited scope for up-selling.

3. The Solution
inTouch benchmarked proposed program benefits against those offered by other successful
rewards programs and found that there was a need felt by customers for a rewards program
that delivered incrementally accruing benefits.
Actionable Analytics – at the heart of the program
The success of the program is thanks largely to
Many rewards programs in India undermine
the importance of customer intelligence. Even a continuous learning – Plan-Target-Act-Learn
among firms that appreciate the role of – actionable analytics orientation, besides
customer intelligence, few are equipped with strong back-office capabilities built by inTouch
the requisite knowledge and skills. for Fresh ‘n Ground. Each individual customer
interaction was slotted into a datamart with a
The approach often is, “build it and they will
view to enable achieving analytics objectives.
buy”
In each such program, inTouch sharply focuses
analytics objectives on management decision making styles as well as the organizational
capability to action decisions.
From tracking member transactions and segmenting customers based on their purchase
behavior, inTouch graduated to a predictive modeling platform when the gross number of
transactions crossed a critical 3 million (it now stands at 10 million).
The 50g extra and 100g extra schemes
Our analytics team segmented customers by monthly purchase volume concluded that if
specific customer segments are motivated Analytics capabilities that support the program
to buy additional increments, a substantial today include –
increase in tonnage is possible by way of
upselling. 1. Trend analysis for program performance
critical parameters and Predictive business
The ‘50g extra’ scheme was a sweepstakes modeling
2. Offer Response evaluation and modeling
program for customers who bought an 3. Loyalty scoring and Recency Frequency
additional 50g alongside their usual Monetary Value (RFM) modeling
purchase. 4. Reward Milestone modeling – positioning
rewards based on revenue and cash flow goals
The scheme not only resulted in a sizeable 5. Card usage, Attrition and win back modeling
increase in revenues, it was also successful 6. Micro-segmentation of customer base and
interacting with a market of one
in migrating entire segments to higher
value. Our research also pointed to substantial number of customers that the scheme was
successful in weaning away from competition and turning loyal to Fresh ‘n Ground.

4. Business Benefits
Program statistics: Topline growth for the 3 years was at
Program Launch: September 2003 8% as against a staid industry growth rate of
2%. Sales increased from about 110T in 2003
Member base: 400,000 and growing at the to about 150T in 2006
rate 2,000 members a month Stable baseline (off-season) revenue
with minimal use of short term promotions
Member activity: 75% to 80% (as against a (and hence cash outflow). Offer response
global benchmark of 45% to 50%) modeling ensures intelligent use of
Rewards performance: 165,000 members promotions to program members
rewarded to date Predictability in terms of sales,
response to offers and segment migration.
Daily Transactions: 10,000 transactions a day Business modeling enables visibility and
choice of proactive tools to achieve
Gross Transaction volume mined by inTouch: objectives
10 million to date Improved Customer involvement in a
dull category. Customers have many reasons
% Tonnage contributed by program: 95% of
to interact with the brand today.
all sales

5. Every day analytics
Assured Results and RoI
Incremental and scalable
Built and managed for your business
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