The Farley Groups’ (established in 1988) humble beginnings started from a 2 shop-lot mini-market now has 3 major stores in Sarawak; Bintulu, Kota Samarahan and Sibu whereby their operations spans across 6 different retail businesses - Supermarket, Departmental store, Shoe Centre, Bakery, Cafe and Food Court.

CHALLENGE

Farley Group’s years of manual customer loyalty management has worked so far however they realised that it has to be refreshed in order to compete and stay relevant in this digital economy. 

With an incredibly diverse goods and services offered, it was vital for the group to have a centralised customer database across the 3 locations visible on one central dashboard. This will significantly increase visibility and understanding of their customer’s shopping behaviour and spending to ensure effective and timely business decision making that will affect the business’s revenue and growth. 


SOLUTION

Once we have collected the group’s customer database and clean through the data, the first thing we would like to identify would-be our loyal customers. By utilising the Pareto Principle which is also known as the 80/20 rule to look for our top 20% of customers that represents 80% of our sales so that we are able to focus our efforts in retaining and eventually find more customers like them to dramatically grow the group’s sales and profits.

To find out who these 20% of customers that contributes 80% of the revenue, we took the customer database from 2016 - 2018 and segmented them to the following Venn diagram.

Venn Diagram: Farley Group members from 2016-2018

Once we were able to identify these groups of customers; we are able to strategise our communication respectively to provide a more personalised and customised message to increase our effectiveness. From the diagram, we are able to see clearly that group ABC customers are our most important customers as they have been a member for 3 years consecutively. Therefore, one of the strategies we could implement is to create a “WOW" effect to have these customers continue to stay with us. It was as simple as providing them a Birthday gift or designated parking lot whenever they visit the store. 

Image:  Farley’s CRM features a dashboard-based analytics which includes member data management, reports and ability to send targeted app push notifications.

On the other hand, for those that fall under the AB and B category, we should start conducting a survey and a reactivation promotion to find out why they drop out and how we’re able to bring them back on board. Through Shoppertise Campfyre analysis and activation on the loyalty app, we’re able to send them a personalised message to say we have missed them coupled with a discount or cash vouchers to encourage them to shop at their closest Farley Store. With this, we’re able to go deep into hyper-segmenting our customer base and sending relevant messages or add value in our services that they are not able to resist or ignore.

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RESULTS

The Farley Group has found tremendous improvement in efficiency that results in lower operating costs. Besides that, the group’s marketing strategies can now be clearly executed and measured in metrics that matter on their customer engagement platform. Customers also have experienced greater convenience while they shop in their stores, thus increasing the average order value and purchase frequency.

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TO CLOSE

By utilising data and having a customer segmentation exercise through the utilisation of Shoppertise Campfyre, we were able to have a clearer picture on how to communicate and create rewards that encourage them to visit and spend more. Speak to us to see how you can improve the effectiveness of your loyalty program or to start one on your own.