Creating Personalized Promotions for Loyal Commercial Customers
Targeted promotions and offers is an effective way to drives sales and increase customer loyalty, which is exactly the results achieved by RONA, one of Canada’s largest home improvement retailers, when it partnered with XCCommerce and implemented its Promotion Solution Suite.
Vertical Home Improvement
Size 375 Stores
Background + Business Challenge
RONA is a division of Lowe’s Canada, one of Canada’s leading home improvement companies. Spanning the entire country, RONA’s vast network of more than 375 stores includes both corporate stores and independent affiliated dealers. Known for its large in-store and online product selection as well as for its installation services, RONA also provides expert support and advice to its retail and pro customers for their building and renovation projects.
The Reno Depot banner of RONA was replacing its Point Of Sale (POS) system and needed a promotion solution to support its specific requirements. RONA also needed to ‘future proof’ themselves against new development costs as new functionality is required and new channels are added.
Operating in a very competitive market, RONA needed an advanced promotion solution to deliver basic promotional offers (e.g. % discount, BOGO) as well as promotions tiered on quantity or spend amount (e.g. buy 12 of any item and get the 13th free).
The promotion solution would need to support RONA’s challenge of multiple sale types and customers, including cash and carry sales, custom orders and commercial transactions for Do-It-Yourself individuals and professional contractors.
In addition to complex promotion types, RONA required the ability to select the best deal between promotions which overlapped on the same items, guaranteeing consistency and customer satisfaction, while eliminating unintended deep discounts due to multiple competing offers.
The XCCommerce Promotions Solution Suite was chosen as a means to provide all the required functionality and to future proof against potential new promotion types. The externalizing of the promotion execution process also allowed for the adoption of future sales channels as well as for future changes to different sales systems.
Summary of Value Delivered
- Promotion Effectiveness XCCommerce’s rules based promotion engine provides a broad array of promotions, with support for complex stacking and conflict resolution rules.
- Sales Associate EffectivenessXCCommerce’s fully automated execution of promotions has resulted in significant improvement in throughput at checkout for RONA and the elimination of calculation errors including awarding discounts when the criteria has not been fully met.
- Product DemandRONA was able to implement XCCommerce’s products to quickly create sophisticated and targeted promotions to meet their business needs and merchandise priorities. This includes seasonal sales, manufacturer supported sales, and directing focus to higher margin items.
- Customer LoyaltyThe XCCommerce Promotions Solution Suite provides RONA’s customers with a differentiated experience and a unified, seamless, and consistent platform across all channels generating a positive experience for all customers.
- Market Trend ResponseRONA can respond rapidly to the changing market trends and priorities by quickly creating new and complex promotional offers using the rich functionality from the XCCommerce promotion solution.
- Automation SystemsXCCommerce’s Promotion Engine delivered RONA an automated solution for applying promotions, commercial discounts, and resolving overlaps, eliminating the need for cashier manual intervention and thereby reducing labour costs and discount errors.
- Reduce Total Cost of OwnershipThe XCCommerce product architecture enabled RONA to implement the solution in their environment with minimal changes to its existing solutions and systems, reducing development, implementation, maintenance, and support costs for the overall solution across all channels, current and future.
Results + Value Delivered
XCCommerce’s industry leading promotion solution allowed RONA to implement its desired promotions and marketing strategies, enabling them to quickly adapt to industry trends and pressures. At the same time, the XCCommerce solution reduced the load and stress on cashiers while providing customer satisfaction through consistent results.
The XCCommerce promotion solutions provides support for commercial customers who receive varying discounts by product category, depending on their business volume rating with RONA. Support is also provided for custom orders, including modification of orders after the initial completion and appropriate recalculation of promotions.
Adoption of the XCCommerce Promotion Solutions Suite has delivered RONA a competitive advantage, delivering the ability to implement any promotion type RONA can think of.