LeverCare - Enhancing Customer Value at Hindustan Unilever

Suman Pal, Hindustan Unilever. Nikhil Alulkar, SAP India

Agenda

1. 2. 3. 4.

Overview of Hindustan Unilever Changing FMCG Dynamics in India LeverCare Consumer Connect Program Distribution Value Chain Enhancement 4.1 LeverCare - Stockist
4.2 VIJETA Loyalty Management

5. VIJETA Loyalty Management 5.1 Communication Channels (Web, Contact Center)

About Hindustan Unilever Limited

Source: http://www.hul.co.in/investor/annual_report_2008.asp

About Hindustan Unilever Limited

Source: http://www.hul.co.in/investor/annual_report_2008.asp

About Hindustan Unilever Limited

6 Megabrands ~ $ 150 to 200 mn each, 53% FMCG portfolio

Agenda

1. 2. 3. 4.

Overview of Hindustan Unilever Changing FMCG Dynamics in India LeverCare Consumer Connect Program Distribution Value Chain Enhancement
4.1 4.2 LeverCare - Stockist VIJETA Loyalty Management

5. VIJETA Loyalty Management

5.1 Communication Channels (Web, Contact Center)

The Traditional FMCG Value Chain Is changing

Hindustan Unilever

Modern Trade

Primary Customer Stockist

Consumers

Small kirana

Retailer Wholesaler

Consumers

Super value Store

Family Grocer

Consumers

Consumers

Competition

Agenda

1. 2. 3. 4.

Overview of Hindustan Unilever Changing FMCG Dynamics in India LeverCare Consumer Connect Program Distribution Value Chain Enhancement
4.1 4.2 5.1 LeverCare - Stockist VIJETA Loyalty Management Communication Channels (Web, Contact Center)

5. VIJETA Loyalty Management

LeverCare Genesis
Lever Care is project of bold ambition, aimed at setting up a world-class consumer connect system to help consumers reach the company, and equally in future, to help brands reach out to consumers. Challenges
Crystallizing process flows, functional roles & responsibilities Migration of near 1000 SKUs to new HUL Lever Care pack artworks within a stiff timeframe and managing the regulatory sensitivities Setting-up an outsourced call centre & courier services Providing an elaborate IT infrastructure based on SAP-CRM architecture Crafting comprehensive Brand FAQs and, training call agents

LeverCare Business Processes

Feedback
To Capture Consumer insight on HULs products and services e.g. consumer did not like Lux Provocateur black color

Query
To answer consumer queries on HULs products and services e.g. if any product is available to remove pimple and pimple marks

Complaint
To address consumer complaints on HULs products and services e.g. consumer bought Lux Bodywash but within a week it became semi-solid mass

Others
To address any other type of consumer call on HULs products and services not covered as above e.g. consumer had an idea which he wanted to share with us he wanted HUL address

LeverCare Consumer Connect Program

CONSUMERS
Samples: replacement/collection

Communication

Courier SPOC

FEEDBACK

FEEDBACK

Phone
Enquiry / feedback

SMS

Web

Snail Mail

eMail
Complaints

Personal contact

TechShastra.com

LeverCare back-office

Ageis Call Centre

FEEDBACK

Escalation

FEEDBACK

LeverCare core team

Escalation
Category QA Brand Legal Category LTM CD

LeverCare Consumer Interactions

LeverCare Consumer Knowledge Search Result

Answer to any brand query

Agenda

1. 2. 3. 4.

Overview of Hindustan Unilever Changing FMCG Dynamics in India LeverCare Consumer Connect Program Distribution Value Chain Enhancement 4.1 LeverCare - Stockist
4.2 VIJETA Loyalty Management

5. VIJETA Loyalty Management 5.1 Communication Channels (Web, Contact Center)

LeverCare Primary Customer Connect Program

HUL Stockist
Complaint Internal Note Feedback Query Others Resolution

Phone

eMail

Phone / eMail

eMail / SMS

Call Centre @ CMC Hyderabad

Internal Note

Resolution

SMS

eMail

ASM

RSM

Branch Legal

Branch Commercial

CSE

Agenda

1. 2. 3. 4.

Overview of Hindustan Unilever Changing FMCG Dynamics in India LeverCare Consumer Connect Program Distribution Value Chain Enhancement
4.1 4.2 5.1 LeverCare - Stockist VIJETA Loyalty Management Communication Channels (Web, Contact Center)

5. VIJETA Loyalty Management

Challenges in Current Landscape

Process related challenges High manual consolidation Longer Redemption time One version of the truth on sales, inventory and margin in real time Communication channels
Manual Tier Management

VIJETA Program
Manual O/L Enrollment

Redemption

Target Setting Point Calculation

Member Related challenges Lack of transparency on points accrual Faster Goto Market, lack of agility Limited transparency
Unify

Channel Team / ADC

Vijeta Member

We chose SAP CRM Loyalty Management

Reward Rules Management
Robust Rule Modeling Version Management Template & Expert mode maintenance Rule Scheduling Partner Sponsorship Campaign Integration

Program Management

Membership Handling
Membership Types and Registration Member Tier Management Member Activities Member Profile Maintenance Point Account Management Basic Membership Card Handling

Processing Engine
Scalable Engine Component Online Member Activity Processing Batch Member Activity Processing Tier Evaluation Processing

Tier Management Points Management Tier based Point Expiration Program Creation Program Partners Management Dynamic Attributes

HULs strategy, SAP CRM as single platform for customer related initiatives

Offers integrated Loyalty Management Solution along with Marketing campaigns. Simulation of Rule Rich functionality & Integration capability Processing
Point Expiration Processing

Integrate / Analyze / Collaborate

Loyalty API Connectivity Sales Order Integration IC Integration

Clear future Road Map. Support from SAP.

Web Channel Integration

Program Management Tier Management: Example

Program Management Reward Management Processing Engine
Ability to have different point based tiers on point accruals System Initiated Tier transition rules transition based on member attributes / monthly sales volume User Initiated User Initiated Based on evaluation by HUL Representative. Marketing Specials : Campaigns/ Rules which evaluate and reward member behaviour

Membership Handling
Loyalty Program

Tier Group

Base
Tier Level Tier Level Tier Level Tier Level

Silver

Gold

Platinum

Value in INR Qualifying Purchase

Qualifying Turnover

30K to 1.49L 20K to 49K 10K to 99K

1.5L - 2.99 L 50 K 99 K 1L - 1.99 L

3 Lac+ 1 Lac+ 2 Lac+

Loyalty Management - Overview Communication

Program Management
Wholesalers

Vijeta Program Members

Reward Management

Processing

Engine

Internet

Phone

Multi Channel Interaction

Email

Lead

Membership Handling
Web Shop Interaction Centre CRM UI

Membership Handling

Billing Document

Loyalty Sales Order

Member Activities

Reward Rule Management

Rule Engine

Processing Engine

Loyalty Management
Point Redemption Point Account

Program Management

Vijeta Outlets earn points

Base Point Calculation

Earning linked to value of Sales 250 INR = 1 Point

Base Point

Power Point Calculation linked to sales Vijeta Packs. Earning

Power Point Points = Product + Quantity + Tier

Earning linked to quarterly sales target achievement Bonus Point Integration with Unify system.

Point Account
Visi Point Earning linked to achievement of VISI scheme Visibility of HUL products at the retail outlet

HUL Vijeta - Reward Rule Management

Base Reward One Point for purchase of every INR 250. If member exceed its quarterly target, give % of base point earned during the quarter as Bonus Points Silver Members get 50% points Gold Members get 75% points Platinum Members get 100% points If member buys any of the published power packs for the month, award power points depending on the Product / Tier / Quantity combination

Bonus Promotion

Monthly Promotion

Tier change evaluation

Rules based Quarterly update on purchase

Templates

Generic User Interface

Common Rules
Characteristics Represent frequently employed marketing techniques to achieve specific results Follow a limited number of templates Need to be deployed quickly and reliably Examples Power pack Promotions Retail promotions (src. of revenue) Seasonal promotions Fixed ratio between receipt value and points rewarded Visibility points

System Rules
Characteristics Simple administration Involve rule based conditions Bonus Points (Triggers) Visibility Points based on sales visit Tier transition rules

Exception Rules
Characteristics Complex conditions Not administered frequently Examples Multiple activities promotions such as time location merchandise and customer/target group dependent

VIJETA Contact Center Easy Member Identification

Hi, Welcome to Vijeta Call Centre.. How may I help you !

I am Santosh, calling from Geetha Rani General Store.

My HUL Party Code is HUL-101015D-9

VIJETA Member Inquiry

Customer identified by the call centre agent Customer identified by the call centre agent By HUL Party Code

VIJETA Member Inquiry

I want to know my account balance

You have 2284.91 Base points and 1400 power points in your account

Cont.

Anything else I can assist you with?

May I know my last transaction details.

VIJETA Point Inquiry

You have cut a bill of amount Rs.18,228 for CAC DNDRF CLN 512X5M. You have received 72.91 base points for the same.

Cont.

Anything else I can assist you with?

I want to Redeem points

VIJETA Redemption Request

VIJETA Redemption Processing

Redeem Request for Trip to Malaysia has been processed which will consume 150 Points. Our Customer Support team will call you for further details

Thanks

VIJETA Contact Center Member Interactions

Last Interactions by Geetha Rani General Stores

Knowledge Management - VIJETA Contact Center

Solution proposed by system

Problem

VIJETA Member web self service

VIJETA Member Sales Transactions

PL AM S

PR

ES C

NO ,

AC T

UA T

VIJETA Member Billing Transactions

PL AM S

PR

ES C

NO ,

AC T

UA T

Proposed Benefits VIJETA @ SAP CRM

Long Term Relationship with wholesalers
Hindustan Operational Efficiency in Administrating Loyalty Programs Modern Trade Unilever

To understand market insights Primary launch Campaigns (Power Packs) and Consumers
Customer Stockist

Small kirana

Retailer Wholesaler

Consumers

Super value Store

Family Grocer

Consumers

Consumers

Competition

Thank you!

SAP 2008 / Page 37