BOOSTING CUSTOMER RELATIONSHIP & STORE

REVENUE VIA TAPWAY RETAIL ANALYTICS

STUDENT NAME : KARTHIKEYAN SHANIKA DILINI

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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY…………………………………………………….2

2. INTRODUCTION………………………………………………………………3

3. ANALYSIS………………………………………………………………….4 – 7

4. CONCLUSION……………………………….……………………………….8

5 RECOMMENDATIONS…………………………………....……………….9 - 11

6.REFERENCES…………………………………………………………………12

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1.EXECUTIVE SUMMARY

The focal problem facing the Malaysian Café chain is that it was having difficulties obtaining sign

ups and creating a customer data base for their loyalty program , and they did not know their

customers’ engagement patterns in the outlets, such as the time and amount spent there, how often

they returned, as well as their demographics. The contents of this report were carefully designed to

address the Malaysian coffee chain’s recent challenges. Without addressing these concerns, the

coffee chain will be in serious trouble and may not be able to boost the customer relationship and

store revenue.

In order to solve this problem, it is recommended that the Malaysian coffee chain undergo a Retail

Analytics Solution. Therefore, Coffee chain consulted a Big Data Analytics (BDA) solution provider

namely “Tapway”. Tapway helped the coffee chain to boost the customer relationship management

and the store revenue by;

➢ Generating customer profiles with TAPWAY Guest Wi-Fi automatically

➢ Analyzing customer profiling and behavior with TAPWAY CRM

➢ Driving sales conversion with targeted messaging at the right time and right place

➢ Measuring marketing campaign effectiveness and refine the strategy with necessary changes.

➢ Optimizing operations through TAPWAY Wi-Fi footfall analytics.

In support of this recommendation, the coffee chain was able to launch highly targeted marketing

campaigns to boost their sales with the help of large data base created by Tapway’s Retail Analytics

solution. It also helped them to increase the outlet revenue.

It will be important that the senior management team of the Malaysian coffee chain take the time to

ensure that employees are inspired by their company and are fully committed to the recommended

plan.

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2. INTRODUCTION

The contents of this report were carefully designed to address the Malaysian Coffee Chain’s

challenges. Specifically, the coffee chain is experiencing the issues of obtaining signups and creating

a customer base for their loyalty program, and they did not know their customers’ engagement

patterns in the outlets. These concerns must be addressed for Coffee Chain to boost customer

relationship management and outlet revenue. Regarding the problem that is being faced, the senior

management team at the coffee chain needs to consider the needs of a Retail Analytics Solution in

making an effective decision to address this problem.

It is recommended in the current report that the Malaysian coffee chain needs to get the service from

a retail Analytics Solution Provider namely “Tapway”. Tapway is a Big Data Analytics (BDA) solutions

provider that helps brick-and-mortar businesses improve customer experiences through shopper

profiling, behavior analysis, and personalized engagements. Started humbly in 2014 in Malaysia,

Tapway now has more than 1,000 sensors in over four countries across Southeast Asia. Tapway

was created by two accomplished technologists from the aerospace industry, Lim Chee How and

Justin Loh, who believe that technologies can revolutionize the slow-evolving brick-and-mortar

industry to create a much better customer experience.

This report will provide an in-depth analysis of the challenges those are being faced and this analysis

will help to identify the viable solution for resolving the challenges being experienced.

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3. ANALYSIS
Retail analytics is the process of providing analytical data on inventory levels, supply chain

movement, consumer demand, sales, etc. that are crucial for making marketing, and procurement

decisions. The analytics on demand and supply data can be used for maintaining procurement level

and for taking marketing decisions. Retail analytics gives us detailed customer insights along with

insights into the business and processes of the organization with scope and need for improvement.

In the Big data reality business world, we can detect 5 types of analytics namely;

• Descriptive Analytics – With these analytics, you can answer the question “What happened

when?”

• Inquisitive Analytics – With these analytics, you can answer the question “Why it happened

then?”

• Predictive Analytics– With these analytics, you can answer the question “What will happen

when I change the process?”

• Prescriptive Analytics – With these analytics, you can answer the question “What should I

have to change?”

• Pre-emptive Analytics – With these analytics, you can answer the question “What can I

do/change more?”

All of these Analytics are needed to obtain a complete overview of the Retail process.

Figure 3.1 – Retail Analytics

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The Malaysian Coffee Chain has a high number of customer traffic volume which they find it difficult

to capture most of the customer profiles, and at the meantime they see a decline in net promoter

score. Overall key challenges were:

• Difficulty obtaining sign-ups and creating a customer database for loyalty program

The Malaysian coffee chain got problem of obtaining new sign-ups customers and creating a

customer data base in order to launch their targeted marketing campaign. A customer database is

the collection of information that is gathered from each person. The database may include contact

information, like the person's name, address, phone number, and e-mail address.

Figure 3.2 – Customer Database

• Not knowing new customers behaviuor patterns in the outlet.

In order to launch a targeted marketing and advertising campaign, it is needed to know about the

customer behaviuor patterns. The customer’s buying behaviour is largely governed by the needs,

preferences, and tastes of the consumers for whom the product/service is ultimately purchased.

Numerous patterns influence the buying behaviour of the customers:

▪ Place or the Location of Purchase - Lot of customers prefer to purchase their preferred products

by visiting various stores in different locations for comparing the prices and the offers. Hence,

a customer does not remain loyal to a single store for a very long period. A retail store should

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pay a lot of importance to the store location, identifying a distributor in the closer vicinity and

the nature of merchandise and the ready availability of stocks.

- Type of Products to be Purchased and Quantity of Purchase

This essentially implies an analysis of the type of product which a customer will want to purchase

and in how much quantity. This will depend on the following factors like:

i. Buying capacity of the customer

ii. Product Perishability or durability

iii. Availability of the product choices

iv. Customer requirement of the product

v. Whether the product is available in abundance or there is a shortage of the product

vi. Product storage

If the Malaysian coffee chain is unable get data about the new customer’s buying behaviour patterns,

it won’t be able to boost the sales revenue and customer relationship by launching its targeted

marketing campaign.

• How to capture customer profile without affecting operational productivity?

In order to get the information about the customers, the coffee chain needs to collect the data

about the customer like their age, preferences, waiting time, number of orders etc. If they use the

traditional data collection methods like questionnaire, filling forms, interviews etc., it will affect to

the daily operations delayed. Therefore, Tapway Retail analytics Solution helps to capture the

customer profile without affecting the operations of the Coffee chain.

• How to inform customer about the on-going promotions in real-time?

Tapway retail analytics solution helps to coffee chain to inform about the current advertising

campaigns in real time. Once the customer signs up to the Coffee chain’s Wi-Fi System, it can

promote all the current campaigns and the customer is updated with all on-going promotions in

real-time.

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• Which communication platform can provide the highest response rate?

Tapway Retail Analytics Solutions can monetize which communication platforms like email, SMS,

and social media can provide the highest response rate. Since Tapway’s Guest Wi-Fi captive

portal solution capture the mobile device data, it can be able to promote each customer via

different communication platforms and measure the response rate.

• When should it allocate more or reduce staff to meet the demand?

Tapway Retail Analytics Solution collects the data about the waiting time and number of walk-by

etc. It helps the Malaysian coffee chain to either to increase or decrease the staff to meet the

demand in those time.

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4. CONCLUSION
Overall, this report has addressed the Malaysia Coffee chain’s challenges and provided

comprehensive recommendations in order to boost their Customer Relationship Marketing and sales

revenue. Thus, it is of paramount important to implement a Retail Analytics Solution as outlined in

the current report in order to ensure that the Malaysian Coffee Chain will be successful in the long

run.

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5. RECOMMENDATIONS
Tapway Retail Analytics Solution helps the Malaysian coffee chain to engage customers seamlessly

via online and offline channels. It helps to attract more customers and promote loyalty using highly

targeted offerings and recommendations. In the backend, it uses data to optimize the targeted

marketing campaigns, operation costs, and staffing schedules. Tapway Retail Analytics Solution

helps to overcome the challenges above mentioned by following ways.

(1) Generate customer profiles with TAPWAY Guest Wi-Fi automatically (GWS).

Tapway GWS leverages on Wi-Fi networks to provide a highly personalized login experience

for the customer. GWS allows the Malaysian Coffee chain to collect customer profiles,

maximize advertisement conversions, conduct automated surveys, and create engaging

marketing initiatives.

The following figure shows how Tapway GWS works on this scenario.

Figure 5.1 – Tapway Guest Wi-Fi System

(2) Analyze customer profiling and behavior with TAPWAY CRM

TAPWAY Customer relationship management (CRM) is an approach to manage the

Malaysian Coffee Chain’s interaction with current and potential customers. It uses data

analysis about customers' history with the coffee chain to improve business relationships with

customers, specifically focusing on customer retention and ultimately driving sales growth.
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(3) Drive sales conversion with targeted messaging at the right time and right place

The Malaysian coffee Chain can convert the new customers to loyal customers and walk-

through to customers with targeted emails and messages with the help of Tapway Retail

Analytics Solution.

(4) Measure marketing campaign effectiveness and refine the strategy with necessary
changes

With the help of Tapway’s Retail Analytics Solution, the Malaysian coffee chain can

measure ROI for each marketing campaign in detail such as percentage of email viewed,

and the percentage of coupon claimed. Based on the results of measurement, it can refine

its marketing strategy with necessary changes.

(5) Optimize operations through TAPWAY Wi-Fi footfall analytics

Footfall analytics is the analysis of how people use physical space via Wi-Fi or camera

technologies. There are several technologies that fall under the category of footfall analytics

including laser beams, cameras, thermal imaging cameras, Wi-Fi, Bluetooth and GPS - all of

which are used to measure people movement. Each of these technologies is a source of

footfall data and in most cases, this data is pushed to the cloud, analyzed and then presented

in the form of analytics. Wi-Fi is perhaps the most common and reliable type of footfall

analytics. Whether people connect to the Wi-Fi network or not, Tapway Wi-Fi footfall analytics

is possible to gain accurate footfall analytics from Wi-Fi enabled smartphones. Tapway Wi-

Fi footfall analytics are very rich in terms of the data provided (people counts, dwell times,

movement, heat maps, repeat visitation, time between visits and more) and is cost effective

to install and manage, making this the most popular form of footfall analytics on the market

today.

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In support of these recommendations, the Malaysian Coffee chain has acquired over 3000 unique

customer profiles in each of their outlet every month in less than 3 months in each of their outlet

every month. With TAPWAY solution, they have achieved:

•  Automated customer profile generation with no data entry work needed

•  Increased average visit frequency to more than once per month

•  Growth in marketing campaign response rate

•  overall revenue of RM1800 per campaign which is increase of revenue by 3%.

At the same time, the Malaysian coffee chain has decided to implement new targeted campaigns

based on their customers’ visiting behaviour such as;

• Rewarding customer entering for the 5th time in the past 30 days.

• Sending a message to those exiting the café for the second time in one week

It also decided to integrate Tapway Retail Analytics Solution to their POS terminals to enable

seamless coupons claiming as well as incorporating sales data to the CRM platform.

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6. REFERENCES

• http://gotapway.com

• https://en.wikipedia.org

• https://elsekuipers.wordpress.com

• https://www.hcltech.com

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