CASE STUDY | Real-Time Offers at Point of Sale MARKET SMARTER. ADAPT FASTER.

CASE STUDY AT A GLANCE When a large retailer was looking to aggressively expand their targeted offers and increase revenue, they turned to Pinpoint Systems for a solution to better interact with their customers Solution Spotlight at the point of sale. Best Offer at Point of Sale

Industry Vertical Today’s shoppers expect more value than ever from both the places they shop and the products Retail they purchase. For retailers to stay competitive, they must keep up with customer expectations and solidify customer loyalty. Essentially, retailers must remember the tried Business Challenges and true marketing mantra of delivering the right offer via the right Pinpoint’s Best Offer at Point of Sale • Low frequency of returning customers channels, at the right time. In order to do this, offers must arrive solution was deployed at a Fortune • Need to better utilize member at the best possible time during the buy cycle to encourage up- 200 retailer in less than three database sell and brand loyalty, and for many retailers that opportunity is months. With the revenue realized • Limited number of items in the cart greatest at the point of sale. from the success of the project, the • Need to move customers around the store The Challenge solution was paid for in just one • Out dated system did not support month after implementation. sophisticated marketing strategies Our client needed to increase revenue per customer at the point of sale. They wanted to expand basket size and move customers Solution Overview around the store to stimulate repeat business. They were also challenged with how to best reach these • Automatically “decides” which customers in a targeted and timely manner while they had their attention at the point of purchase. offer(s) to present at customer check-out The current system included member information and was able to provide limited predetermined offers at the • Offer decision process “learns” point of sale, with simple criteria and rules, but did not address member profiles, transaction history or basket and self-adjusts based on offer redemptions analysis. They also had limited strategies for communicating with non-members or unidentified customers. • Real-time reporting on offer performance Our client was additionally challenged by the following business issues: • Open technical architecture for • Basket Expansion rapid integration to point of sale u systems To stimulate purchases in additional lines in same category based on current purchase • Available at each point of contact, • Up-sell across multiple channels (store, u Promotes offers for next spend tier based on current basket spend web, mobile, etc.) • Bounce-back u Results Summary Addresses return trip/incremental trips Cross-shop • Increased response rates 2x-3x • u Targets purchases across a related, high-affinity category • Implemented in less than 3 months - weeks ahead of business plan • Location-Based u • Investment recovered one month Offers for specific registers, stores or locations based on competition, weather or other geo-specific after implementation triggers • Thousands of stores utilize technology at point of sale The Solution • 350 check-out transactions per To align with the client’s marketing challenges, Pinpoint Systems created the Best Offer at Point of Sale second processed by the offer solution: a nimble environment with real-time reporting on offer performance to allow marketers to quickly decision engine react and modify eligibility and decision rules. As part of the decisioning process for the tool, the system is • Over 1,000 active offers able to leverage member profiles, transaction history and any models associated with the member database • Approximately 10 million highly targeted offers per week extended by interacting with the data warehouse to pull the data into the operational data and associate the basket back to them. (continued) CASE STUDY | Real-Time Offers at Point of Sale

MARKET SMARTER. page 2 ADAPT FASTER.

Rapid Evolution The solution, anchored by IBM/Unica Interact* software as the core decision engine, was implemented in With more than 1000 activities order to facilitate integration at additional customer touch points to deliver repeatable, relevant and timely around the targeted offers, our targeted interactions in real-time. Pinpoint Systems’ consultants added the infrastructure to help support client needed a formal process to inbound marketing forms and automatically process learnings on offer redemptions to improve relevance and manage the exponential activity and to make decisions on the best targeting via the decision framework and logic. offers for their audience segments in real-time. Because classic reporting was cumbersome for daily operations, Technical Integration the Pinpoint consultants created a dashboard to analyze relative offer performance and to quickly and Monitoring & easily identify which offers to keep Operational Reporting and which to discard. Mobile

IBM Unica O Real-time Information perational Data Real-time decision engine Web

Technology moves fast. Interface Layer Targeted o ers IBM WebSphere AS Pinpoint helps clients stay ahead of

Reporting Email the curve, transitioning to next- Data Customer generation customer marketing Channels models and technologies quickly— while avoiding the pitfalls. Data Warehouse POS We provide ongoing partnership to ensure our clients’ marketing programs continue to adapt Existing client systems and utilize appropriate new (e.g. barcode) technologies and tactics as they Kiosk emerge.

Marketing Performance Reporting

The open technical architecture provides rapid integration to point of sale systems across multiple channels (store, web, mobile, etc.). The basket analysis combined with transaction history and demographic data allows for customizable “best offers” for individual customers. Offers are printed on receipts in real-time at the point of sale in the store or presented in digital formats (online/email) at the time of order confirmation. There is also included a matching logic to help create offers for non-member customers.

With more than 1000 activities around the targeted offers, our client needed a formal process to manage the exponential activity and to make decisions on the best offers for their audience segments in real-time. Because classic reporting was cumbersome for daily operations, the Pinpoint Systems’ consultants created a dashboard to analyze relative offer performance and to easily identify which offers to keep and which to discard.

(continued) CASE STUDY | Real-Time Offers at Point of Sale

MARKET SMARTER. page 3 ADAPT FASTER.

About Pinpoint The Results Pinpoint Systems helps you realize The client came to Pinpoint Systems with an aggressive business plan and our consultants were able to meet the promise of real-time marketing and exceed that plan within the first three months of the project. Significant revenue based on the solution was to ensure that each of your customer realized within one month of implementation and the client’s initial investment was recouped within that same time. interactions is more intimate and most productive. We intelligently The solution is currently in place at thousands of retail stores and processes 350 check-out transactions per deploy real-time marketing systems second. The system is fast and efficient with over 1,000 active offers and approximately 10 million highly targeted offers per week. Where previously basket analysis was non-existent, the response rates based on the and provide EMM software consulting new basket analysis capabilities are 2x-3x. and implementation for Fortune 1000 and mid-market companies. Best Offer at Point of Sale improves the shopper experience through repeatable, relevant and timely targeted interactions. It also improves our client’s wallet share while driving more customers to its stores, both online Pinpoint’s consultants help you and offline. navigate the complexity of real- time, customer-centric marketing interactions, enabling new capabilities that maximize the value and measurability of every customer relationship. Our practical, hands- on approach combines qualitative analysis of your business needs with a deep understanding of data, technologies and tools to help you select, implement and manage real-time marketing systems with confidence and agility.

Want to explore if the Best Offer at Point of Sale solution is right for your business?

Learn what Pinpoint Systems can do for you. *Pinpoint Systems is an authorized IBM Unica Reseller and [email protected] IBM Unica SVP Partner.

Pinpoint Systems Corporation • 8605 Trethorne Court • Waxhaw, NC 28173-6797 • 800-809-0612 www.pinpoint-corp.com