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Conference preview: Single view of customers’ data drives CRM opportunity at Space.NK.apothecary

Having a single customer view (SCV) across its channels has been critical to the success of the CRM strategy of Space.NK.apothecary, and it is set to further mine its customer data to improve engagement and further engender loyalty. By Glynn Davis


Conference preview: Single view of customers’ data drives CRM opportunity at Space.NK.apothecary

Ahead of taking part in a panel discussion at the 4th Retail Bulletin Customer Loyalty Conference 2013 on June 12 Kate Hamer, CRM & Loyalty manager at Space.NK.apothecary, gave some details of the retailer’s CRM activities that she says started two years ago with "the consolidation of all its data sources into a single pot."

"Since we created the SCV we’ve come a long way. It took a long time to get to that position but I’m surprised more people have not got SCVs," she says, recognising that this is a fundamental stepping stone to operating an effective CRM strategy.

From this platform Space.NK has been able to build-up a real idea of its customers and what the journey is that ultimately takes them on to being a loyal shopper with the company. What has helped with its capture of data – across its UK and US websites and stores - is its loyalty programme where the members represent a high percentage of total spending at the company. 

"It is massively important and is good for retention. A high proportion of our customers are members. They receive 1 point for every £1 / $1 spent in store or online and receive a £5 reward. Top tier members (deluxe members) enjoy double the rewards as well as additional benefits" says Hamer, referring to those members who spend £1,000 / $1,000 or more with the brand in a year.

Against this backdrop she says Space.NK has been able to use its customer data to identify prospects and get them to make a first purchase, identify what makes a customer loyal and use initiatives to drive those prospects or first-purchasers to achieve that target of becoming a loyal customer as well as using the data to also re-activate lapsed customers.

"For this you need a robust IT team and technology platform, and it is a challenge,” she admits, adding that the next step on the CRM journey is to try and achieve real-time, automated communications whereby the targeted marketing messages sent out to consumers are triggered automatically dependent on where they are within the customer journey: “We’d like to have real-time dynamic customer segments, with automated communications sent out that are relevant, targeted and also incorporate our current campaigns."

For this Space.NK is “looking at different solutions including new technologies and platforms that would allow us to gain more control and visibility of our data. She adds: “The idea is to be able to have easy access to the data in-house whereby a piece of kit would enable the company to "delve deeper, identify new segments, trends and opportunities and better fulfil our customer wants and needs". 

Such activities would go hand-in-hand with its continued profiling – every 12 to 24 months using Mosaic – that is undertaken to identify customer types, demographics, lifestyles and identify which profiles it over-indexes.

This helps indicate where the brand should be investing its marketing budget to ensure they are targeting the right publications and partner brands as well as how and where it could attract new customers from that have similar customer profiles and lifestyle types.

Underlying all this CRM activity is how to tackle ‘big data’ which Hamer says represents “huge potential but is also a massive challenge – especially across so many touch points such as social media channels where there are many ways for customers to engage with a brand. How can you collect, prioritise, make sense of and effectively use this data and integrate it into your SCV and CRM Strategy? That’s the next challenge.”

To view the programme and register, click here

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