It's All About Me: How Metro Is Personalizing Its Way To Growth

Itʼs all about me:"How Metro is Personalizing Its Way to Growth

Coalition Media"

1/18/13 It’s all about me 2


Welcome"

Our themes"

•  Meaningful brand engagement is contingent on a fully integrated business and brand strategy that drives loyalty.

•  A loyalty program allows you to generate data to deliver a refined customer experience that generates a rewarding value propositon.

•  Shifting from a multi-channel to omni-channel content and communications strategy will deliver relevence, redemptions and sales.


Canadian grocery market"

Total market $83 billion"


Quebec and Ontario 63%"

Total CDN Grocery Spend"

Western Canada 31%" Ontario 38%" Quebec 25%" Atlantic Canada 6%"

Source: Nielsen MarketTrack

Metro Overview "


832"Retail Locations"

$12"billion in revenue"

642"Food Stores"

Ontario"149 Conventional"114 Discount"263 Grocery Stores"

Quebec"218 Conventional"84  Discount"77 Small format"379 Grocery Stores"

Why Customer Centricity?"

Competitive Landscape"

•  21% CAGR of sqft (06 to 09) vs 1.8% for industry sales

•  New store formats emerging (Ethnic, Specialty, Discount, Pharmacy)

•  Target & Walmart continue to grow their Canadian presence

•  Very mature loyalty market in Canada – the average consumer has 14 loyalty cards in their wallet!


Majority of Consumers Shopping in both Banner Types"

Shopping per banner type (in %, 2006 to 2010)"


Ontario Quebec

Source: Industry Tracking, November 2010. SuperTrack, August 2010. Note: Walmart in only included in Ontario as a discounter.

Consumers Increasingly Looking for Value "


(1)  Source: Nielsen MarketTrack, Percentage $ Sales per TPR. Ontario GB+MM+DG, - ccdg Ontario Conference, October 20th, 2012.

2009" 2010" 2011" 2012"

23.3

31.5

20.0

22.0

24.0

26.0

28.0

30.0

32.0

34.0

% Sold on TPR


Is loyalty to their customers

a company’s only asset


13

dunnhumby puts the customer at the center of every decision

1/18/13 It’s all about me


+ 400 brands worldwide"

15 1/18/13 It’s all about me

dunnhumby & Metro working together"

•  Before 2009, Metro only had customer data in Ontario with Air Miles

•  Customer-centric partnership began in 2009 with holistic vision

•  With launch of metro & moi and dunnhumby as customer advocate and guide, the “why” behind the “buy” become clearer across the business

•  Joint teams focused on bringing the voice of the customer to drive smarter decisions


Metroʼs Customer Focus"


Reward"Loyal Metro Customers"

We want to establish and maintain a relationship with our customers throughout their life cycle."

Metro is becoming more customer focused across the enterprise."

The creation of a reward program in QC and better leveraging the coalition in ON were fundamental pillars of this strategy."

Our approach "


Building long-term relationship through their life cycle.

To shop in our stores and encourage them to come back.

To better understand our customers and inform our business decisions.

Increase Metroʼs brand value"

+" +" ="

Attract & engage customers"

Reward our customers"

Make better business decisions with data"

Increase the average basket & frequency"

More than Loyalty Programs "

Insight Driven Brand Strategy built on proximity & personalization. "

Executed Brand Strategy throughout the whole enterprise."

Growing customer"value proposition through customer-centric business decisions."


New Brand Strategy"


Metroʼs Reward Program "


A simple & engaging program !

Bonus offers at shelf!

•  $1 spent = 1 point"•  Early reward

redemption starts at 500 points = $4"

•  Bonus points on products at store"



Personalized coupons!

•  Coupons for specific products based on customer purchase behaviour"

•  Multiple media platforms (every week)"



Rewards sent!every 3 months!

•  Savings on my grocery bill"

•  4x per year"

In store "


Earning the Support of Store Operations"


A New Platform for Integrated Promotions"


Leveraging the program as a promotional platform"

Leveraging Social Media"


The #1 Grocery Facebook Page in Canada!"

Leveraging the Coalition in Ontario"


Using the data to make better decisions"


the intersection of segmentations leads to valuable insights

primary channel preferred format (supermarket, express, gas station, online)

profitability brand choice, packaging preference, weight of purchase

lifestage demographics, what they buy

lifestyles motivations behind shopping behaviour

“you are what you do”

promotional promiscuity cherry picking deals, bulk buying to larder fill

shopping habits share of shopping, recency & frequency

shopping trips missions

brand advocacy participation in extensions

Enhance the client experience"


Improved Value Proposi1on for our Loyals

Price op1miza1on The right price for the right product for the right customer.

Category management What is our op;mal offer and planogram?

Flyer op1miza1on How do we maximize reach & associated basket spend?

Targeted promo1ons What products should we promote to reach our loyal customers?

Earning the Support of Store Operations"


Moving Multi-Channel to Omni-Channel"


Customers experience a single touch-point"

Multiple touch-points - still acting independently"

Retailersʼ channel knowledge and operations exist in

technical & functional silos"

Multiple touch-points as part of the same brand"

Retailers have a ʼsingle view of the customerʼ but operate in

functional silos"

Brand experience, not a channel within a brand"

Retailers leverage their single view of the customer in

coordinated and strategic ways"

The IDEAL"

Single Channel Mul1-‐Channel Cross-‐Channel Omni-‐Channel

Making it happen"

•  Ensuring the integrity of all data being used

•  Changing the way CIO’s and CMO’s work together

•  Building an efficiently connected internal enterprise system

•  Supported by Dunnhumby Customer Insights & IT Center of Excellence

•  Demonstrating clear ROI on the investment


2013 Focus"

•  Continue to focus on retention to foster long term engagement and battle fatigue within the loyalty lifecycle.

•  Optimize the use of customer data to strengthen the relevance & performance of our commercial strategies in an Omni Channel environment.

•  Futher refine and customize our direct communications based on new Customer Segmentation Model.

•  Maintain the same level of organizational enthusiasm and commitment


Summary"

•  Loyalty is an integral part of our growth strategy.

•  Customer data in all key business decisions is imperative to succeed.

•  Organizational engagement is key to the success of a customer-centric strategy.


Q&A"


Marc Giroux"Chief Marketing & Communications Officer!

Marc Fischli"COO, International Markets!

Business

It's All About Me: How Metro Is Personalizing Its Way To Growth