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Foodstuffs New Zealand
Awards
Keith Norris Direct Marketing Organisation of the Year
Entrant
Foodstuffs New Zealand
Entry Rationale
Operating within the Foodstuffs business, New World has 137 supermarkets conveniently located around New Zealand. They offer the best quality products, excellent service and value for money.

However, Kiwi grocery shoppers are highly promiscuous.

As a result, loyalty is growing in importance in supermarket shopping and the rise of big data has led to retailers seeking to own their data so they can both understand shoppers better; connecting with them relevantly on a one-to-one basis is now a commercial imperative.

Over the past three years, New World realised the creation of successful loyalty programmes and constantly optimised direct communications based on customer insights would be critical to success.

To be successful they’ve developed four major projects, focused on a commitment to customer-centric DM experience:
  • Overhauling New World Direct – a comprehensive recalibration of all supplier-based DM activity. Tracking growth in brands beyond temporary increases in sales revenue. Strategy is based on long-term sustainability.
  • Introducing New World Clubcard in the South Island (North Island launch pending).
  • New personalised eDMs based on segmentation, purchase type, and lifestyle observations enabled by the richer customer insights that CRM systems now capture.
  • Developing a suite of DM templates for tactical store initiatives enabling individual franchise holders to develop local relationships.
Commitment to customer centricity is evident. Each direct contact with the customers is carefully crafted for them, and their New World experience.

New World grew their Direct Marketing Team in 2014-2015 with key appointments across data analysis, communications and marketing services – all geared up to deliver a new level of customer experience.

The success of a one-to-one approach is evident:
  • New templates are receiving higher than established response rates, moving from 7-9% to rates as high as 25% for New World Direct.
  • The additional Clubcard sign-up equates to a penetration rate of over 93% of all shoppers (total 400,000) in the South Island.
  • Cooperative supplier promotions based on behavioural observations and smart DM have grown declining categories, from ready-made custard to instant coffee. The long-term behavioural change has been tracked in the target segments continuing to purchase regularly after the completion of the promotion.