Background + Business Challenge
Shoppers Drug Mart (SDM), Canada’s leading drug store retailer with more than 1,300 stores and the largest loyalty program in Canada, needed to upgrade its promotion solution to enable the delivery of complex promotions demanded by its customers and business. Targeted offers, dynamic coupons, and customer choice awards were critical requirements, enabling SDM to create a competitive advantage and enhance the benefits of its loyalty program. Implementation of a new solution needed to optimize and extend SDMs existing mission-critical systems.
Being a national drug retailer, our new POS promotions software has positioned us to offer our customers more timely and
Stewart McKechnie, IT Program Director ePOS, Shoppers Drug Mart
targeted promotions that fit the fast paced lifestyles of today’s consumers.
Our Solution
Shoppers Drug Mart partnered with XCCommerce to support its Point-of-Sale (POS) Enhancement Program, to implement and integrate XCCommerce’s Promotion Solution Suite (PSS) with SDM’s existing corporate systems and new POS solution.
XCCommerce’s industry leading promotion solution helped SDM transform its promotions and marketing strategies, enabling rapid creation of unique and complex promotions to support and enhance SDM’s loyalty program.
The XCCommerce solution helped transform store operations and cashier processes. Cashier involvement was eliminated with XCCommerce’s fully automated Promotion Engine handling complex promotions, loyalty rewards and redemption, and promotion overlap resolution. SDM customers realized a differentiated in-store experience along with consistent application of promotions, and significantly reduced check out times.
Summary of Value Delivered
- Promotion Effectiveness XCCommerce’s rules based promotion engine provides SDM an endless combination of offer types and rewards, with support for complex stacking and automated conflict resolution rules.
- Increase Conversion RatesUsing the rich functionality included in XCCommerce’s Promotions Solution Suite, SDM experienced an increase in return shopping visits for non-loyalty customers with the introduction of bounceback coupons and gift card rewards.
- Sales Associate EffectivenessXCCommerce’s fully automated execution of promotions has resulted in significant improvement in throughput at checkout for SDM.
- Product DemandTo maximize sales volumes during the holiday seasons and key special occasions, SDM leveraged XCCommerce’s products to quickly create sophisticated and targeted promotions to meet its business needs and merchandise priorities.
- Customer LoyaltyWith the implementation of the XCCommerce solution, SDM was able to further strengthen its extremely successful loyalty program by rewarding consumer loyalty with loyalty points and targeted offers based on membership level. The flexiblity of the XCCommerce promotion solution allowed SDM to implement a new feature as part of its customer loyalty program, where the consumer receives a message at the end of a transaction stating “You could have earned xx points today”. SDM also leveraged XCCommerce’s innovative rules-based promotions engine to create the unique Customer Choice promotion, where the promotion engine calculates two possible rewards, a number of points or a discount amount, and the customer is presented the choice.
In addition, the implementation of the XCCommerce promotions solution provides SDM customers with a differentiated experience and a unified, seamless, and consistent solution across all channels generating a positive experience for all SDM customers.
- Marketing Campaign EffectivenessSupport for SDM’s very successful loyalty program was a critical business requirement for the promotion tool. XCCommerce’s Promotions Solution Suite allowed SDM to quickly create unique and complex promotions to support and enhance its loyalty program.
- Increase Basket SizeSDM can leverage the upsell functionality from XCCommerce to help cashiers encourage customers to purchase similar SDM brand items that may currently be on sale and generate higher margins.
- Centralized Promotions & Coupon ManagementThrough a single point of entry, SDM is supporting promotion definition and evaluation across all brands and channels, resulting in a consistent application of promotions and a positive customer experience.
- AutomationWith the implementation of XCCommerce’s Promotions Solution Suite, SDM created more complex and targeted promotions and saw the elimination of manual effort required by cashier involvement in promotion qualification and overlap resolution. In addition, XCCommerce’s fully automated promotion solution supported SDM’s Loss Prevention team in eliminating the ability for cashiers to generate unwarranted offers during a transaction.
- Market Trend ResponseSDM 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.
- Reduce Total Cost of Ownership The XCCommerce product architecture enabled SDM to implement the XCCommerce solution within its environment with minimal changes to its existing solutions and systems, reducing development, implementation, maintenance, and support costs for the overall solution.
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