Improved Nectar to draw the bees in, for LMG!



Loyalty Management Group (LMG), one of the largest loyalty program implementation and management companies in the world, owns and operates Nectar -UK’s largest customer program. Nectar works with partner companies such as 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.


LMG was looking to build marketing velocity. With a staff of 215 people, they could execute only 2500 campaigns per year against the target of 5000 campaigns. Limitations in terms of number of campaigns resulted in limited customer contact thus leading to minimal responses and poor usage.

The existing process was largely manual and had huge overheads that led to the campaign team depending on 17 internal teams to source data, create, execute and measure the results of single campaign. The data stack for LMG included variety and diversity and the data sets were so large and complex that it became difficult to process using traditional data processing applications and this resulted in delays in campaign development. The offer to channel mapping process was also generating a lot of errors which in turn slowed the campaign velocity. The only solution to increase the number of campaigns was to either increase the number of headcounts or to automate the processes.

LMG unanimously decided that marketing automation was the logical way forward and shortlisted Unica Campaign and EMessage as the tools of choice.


Xerago was selected as the implementation partner by LMG for marketing automation and multi-channel campaign development.

Xerago analyzed their Marketing Programs and their Technology & Data Platforms and found that the marketing program had to too many manual interventions – such as Back End Bonusing, manually collecting data from systems like Map-o-matic, call center remote database, Molehill data store, Interwoven, Oracle CRM and Business Objects. LMG had signed up with partners like Sainsbury which required them to work with huge WX2 databases.

Post assesment of current state Xerago identified that a mere implementation of Unica Campaign, Reporting and EMessage alone would not help LMG overcome the marketing velocity challenge. An effective solution would involve:-

-an implementation of the marketing automation platform components and configuration to LMG’s specific needs

-an automation of all manual processes through the various stages of campaign development

-a streamlining of the campaign development process

-an integration of stand-alone databases, and proprietary data sources to Unica Campaign, the campaign automation tool

Xerago created a unified system that would automatically collect data from various sources (that used to be done manually) and automated the Backend Bonusing process by deploying predefined rules that credited collectors’ accounts with BEB points after the calculation process was completed. For the campaign development, the Oracle CRM system needed to provide a hands-off file to UNICA Campaign – but connectivity was an issue. So Xerago built database-specific drivers and configured the Oracle database to facilitate a seamless data transfer.

Unica Campaign – the marketing automation tool – supported the limited offer mapping functionality. Xerago built a custom offer module that would store thousands of offers from LMG’s partners which would be available on Unica Campaign. This module helped build an integrated customer-to-offer mapping as part of a regular campaign development workflow.

Xerago went on to automate the entire campaign development and management processes by building standard campaign templates. This led to a situation where the process could be managed by just 3 teams per campaign – resulting in 2X improvement in effectiveness.

Apart from this, Xerago also set up:-

-campaign-wise channel-specific metrics to measure campaign efficiency and effectiveness using Oracle CRM & Unica Campaign

-systems to measure campaign responses, learn customer response behavior and implement the same on future campaigns using Business Objects.

-a campaign repository to mine campaign response data to create response prediction models and scorecards in the future using Unica Model.

Xerago collaborated with the CRM, Marketing, IT, Reporting and Channel teams at LMG to deliver the seamless marketing velocity the client was looking for.As a result of these interventions, Xerago enabled LMG to scale its marketing velocity by automating and streamlining several marketing processes.


Xerago helped LMG execute the targetted number of campaigns marked on the campaign calendar with zero increase in headcount. In a span of 6 months LMG acheived over 100% lift in marketing velocity. Further the benefits of automation and streamlined process flows resulted in signficant increase in marketing efficiency.

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