Home Retail Capillary Drives Benetton’s Customer Base Growth by 7.5x in Less Than 2...

    Capillary Drives Benetton’s Customer Base Growth by 7.5x in Less Than 2 Years


    With InTouch CRM & loyalty Engine implemented across Benetton stores, Capillary has increased the registered customer base by 7.5X in less than two years. Capillary also accelerated Benetton’s newly launched Color Club Program, registering 70 per cent walk ins every month and generating 2-3X RoI from every loyalty campaign.

    Business challenge

    Benetton’s constant endeavour to ‘be with fashion’ led to a complete overhaul of their existing manual loyalty programme and relaunch it as ‘Color Club’, which is currently active in more than 200 stores across India successfully. As the brand’s operational structure was 95 per cent franchisee based, the legacy card based programme was not only expensive to run but also due to manual business process management, occurred with long lead times and poor customer experiences. With the all new Color Club Programmme launched in 2012, Benetton aimed to do away with the traditional ways of paper forms and plastic cards and upgrade to mobile as the channel to connect with its local customer base. The brand also wished for an intelligent CRM process with high data capture rates that could help them build personalised targeted campaigns on different customer types by discovering insights on their purchase behaviour and preferential choices.

    Why capillary quote

    ”After evaluating many in the Retail CRM space, we realised the need of a solution that could not only help us have a powerful grasp on consumer attitudes and behaviours, but also build engagement programmes that easily match into the global brand that Benetton is. Today, the multifaceted and yet easy to participate design of the new programme keeps the customers intrigued in Color Club. Its not just about the point structure, but also the ‘extra’ that brand loyalty comes with, be it the home delivery or the special previews or the makeover, and, with Capillary Customer Engagement, we know just the right way to communicate it to our customers, says” Vinay Sharma, CRM manager.

    The solution

    In less than three months, Capillary successfully migrated Benetton’s legacy programme by harmonising the existing demographic data and available purchase history. The liability of allocated reward points from the old programme was effectively managed and a process to allow customers to redeem or write off, successfully closed the transition. The three tiered ‘Color Club’ programme is now based on customer’s Life Time Value encouraging them to upgrade to higher tiers for better benefits. With Capillary’s cloud+mobile CRM platform installed in all its stores, Benetton enrolled its customers with mobile access as the unique identifier and incrementally build detailed customer profiles upon successive visits in any outlet. Capillary’s Customer Intelligence platform discovers actionable insights around an individual customer’s purchase behaviour, preferred product categories and the trigger for additional sales. Periodic refresh of key customer segments like High Loyal or Value Seekers on the basis of pre-defined loyalty KPIs helps in the creation of targeted offers and personalised communications. Capillary’s Campaign Manager uses these insights to design and execute engagement programmes with the dual objective of relevant experience and incremental store sales. The cloud platform ensures real-time availability of customer data, and uses mobile technology to engage the customer instantly and communicate points balance and earned rewards. Capillary also trains the store staff regularly on effective management of the customer loyalty initiative for better customer service and higher programme efficiency.