Groupe Aeroplan gets a personalized outreach program

lmg-segmentation_updated1Overview:

Groupe Aeroplan (LMG), one of the largest loyalty program implementation and management companies in the world, owns and operates Nectar, UK’s largest customer program. Nectar partners with other companies including the supermarket chain Sainsbury’s and BP and serves more than 50% of households in the UK. As a routine outbound marketing campaign LMG reaches out to its customer base every week with a mailer named PUM.

Challenge:

Groupe Aeroplan wanted to personalize PUM, their weekly customer outreach program and include 4 unique offers for each customer. They had been using a simple rule-based offer mapping process and wanted to move to a personalized segment-based one.

But the problem was that the data available was large, complex and diverse and did not lend itself to personalization. Groupe Aeroplan’s partners included Sainsbury and other retailers – which meant huge WX2 database with thousands of offers every day and this made the personalization a nightmare.

Solution:

Xerago analyzed the existing data and technology environment that included a review of systems like the WX2 partner database, Molehill data store / Data warehouse, Oracle Oracle CRM, Trillium and Business Objects and Business Objects.

Xerago identified that a solution lay in:-

Personalization:- By creating segments and mapping offers to individual customers based on their preferences and likelihood to use the offer
Automation:-Integration of offers with mailers i.e. PUM and execute them as personalized campaigns inside Unica eMessage. With Unica eMessage, marketers can extend Unica Campaign’s capabilities to email and other outbound digital campaigns with the ability to create, preview, test, execute, and track messages.

Xerago realized that the majority of data collected from systems were either not utilized or underutilized – which meant that there was no data mining in practice to derive insights to use in campaigns. To address this, Xerago first re-set the data mining rules. Leveraging data from the data warehouse, third party databases and existing tools like Oracle Oracle CRM, Trillium and Business Objects, Trillium and Business Objects, Xerago derived insights about customers and created a response model that used past behavior and preferences to generate personalized offers for each customer.

The propensity model to create segments was built on top of data from the data warehouse that comprised 21 billion rows of data, detailing the purchasing habits of two years’ worth of shoppers at Sainsbury. And it was overlaid with Groupe Aeroplan’s proprietary data from Nectar and other sources.

This resulted in 16,203 unique segments for the outbound campaign on Groupe Aeroplan ‘s customer base of 14.5 Million customers, for thousands of offers. Each segment had a unique set of 4 offers that addressed the sensibilities of each customer, achieving the desired personalization. To execute this as an outbound campaign required an integration with Unica eMessage. Xerago built an application that integrated the personalized customer lists with specific eMessage templates. This ensured a seamless automation of personalized communication as outbound marketing campaigns.

Xerago helped Groupe Aeroplan move from a rule-based offer mapping to a segment-based model.

Results:

Xerago helped Groupe Aeroplan achieve remarkable efficiency by automating the entire process. Over 16,000 unique treatments for the emailer campaign resulted in an extremely personalized outbound marketing campaign for Groupe Aeroplan.

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