In order to showcase the company's excellent marketing and digitalization cases and promote the transformation and development of the company, China Department Store Business Association continues to carry out outstanding case collection activities. Excellent cases will be announced at the "19th China Department Store Retail Industry Forum" held in Nanjing in late August.
Today’s case presentation is: China Duty Free Group’s major member helps the digital development of duty-free retail.
Company Profile
China Duty Free (Group) Co., Ltd. (referred to as China Duty Free Group) was formally established in 1984. It is a state-owned exclusive company authorized by the State Council to carry out duty-free business nationwide. After more than 30 years of rapid development, China Duty Free Group has established long-term and stable cooperative relationships with more than 1,000 world-renowned brands around the world. It has established more than 240 duty-free shops covering nine categories including airports, aircraft, borders, passenger terminals, railway stations, foreign ship supply, diplomats, cruise ships and the city, in Dalian , Shanghai, Qingdao , Shenzhen, Beijing and Sanya. And Hong Kong has built seven major customs supervision logistics centers covering the whole country. Sales channels cover large domestic hub airports such as Beijing Airport, Shanghai Airport , Guangzhou Airport , and Hangzhou Airport, Hong Kong Airport , Macau Airport and other Asia-Pacific international airports, as well as Sanya International Duty Free City , with nearly 200 million passengers per year. Provide duty-free goods and services to domestic and foreign tourists. So far, China Duty Free Group has become one of the largest international duty-free operators.
Looking forward to the future, relying on the strong tourism resources of its parent company China Tourism Group , China Duty Free Group will continue to shoulder the mission of making China's duty-free industry stronger, better and bigger, comprehensively integrate resources, innovate operating mechanisms, and steadily promote internationalization. development strategy to build a world-class travel retail operator with global competitiveness.
Specific practices
1. Project background introduction:
In the digital business era, consumption patterns are changing to diversification and digitalization. Digitalization and omni-channel are becoming traffic tools that accurately radiate target customer groups. Facing the continuous innovation of consumer groups and consumer demands, China Duty Free Group is actively exploring consumer-oriented digital service innovation in the travel retail market.
With the gradual liberalization of domestic duty-free market policies, China Duty Free has taken advantage of its own advantages to build a digital marketing service system supported by mobile Internet and big data technology. While focusing on providing consumers with the ultimate service, it also allows members to serve Become a unique highlight of its refined operations.
Starting from improving the membership experience, China Duty Free has created a unified membership platform, and by creating a unified membership system and points pass-through deposit and redemption system, the services and rights of each business type are closely integrated, so that members can personally experience the one-stop service The China Duty Free Ecosystem redefines a new seamless, efficient and convenient way for consumers to shop at China Duty Free. And through the large membership platform based on big data and linked with multiple business formats, it accumulates various behavioral data of users within the China Duty Free Ecosystem, improves user portraits and user preference analysis capabilities, and provides members with more refined operational services.
Through an omni-channel, multi-scenario, and full-cycle marketing service system, while meeting the in-depth and diverse needs of consumers, China Duty Free is also continuously empowering the Chinese travel retail market with technological means.
2. Design ideas and implementation process:
According to the needs of business development, China Duty Free Group has established multiple membership systems in various business areas. At the same time, each store across the country has also established its own WeChat public account. Member data and information cannot be shared. There are a large number of duplicate members; the membership informatization development of each system is relatively independent, and multiple systems of member rights and interests coexist with different standards; points cannot be shared, and customers cannot enjoy member rights across member brand systems... As the business continues to develop As members' requirements for consumer experience continue to increase, how to better empower business development and achieve the goal of building a membership system with unified members, unified management, unified rights and unified operations has become the focus of the upgrade of China Duty Free Group's membership system.
To build a large membership system, we must first unify the fragmentation of existing members, integrate the existing CDF membership systems, enrich member data information, and form a CDF large membership system with unified rights and unified brand image; secondly, in-depth utilization and Integrate group resources, improve the member operation system, and build a high-value member service ecosystem through attractive member rights and interests, thereby improving member loyalty; third, use big data technology to deeply couple with marketing business to integrate offline business Combining the nature of operations with its own value advantages, establish a marketing service system covering all channels and multiple scenarios, injecting new life into member marketing, and providing a steady stream of driving force for the long-term increase in the commercial value of the China Duty Free brand; fourth, the system must maintain high Flexibility, high stability and high scalability support the introduction of resources from different industries, realize interconnection and resource sharing between different industries, and form a travel retail ecosystem with China Duty Free as the core.
(1) Open up all-domain data and build the core member data asset center of China Duty Free Group
Open up the membership system and transaction system of each independently operated brand under China Duty Free Group, and collect the online, offline and third-party omni-channel membership data of each brand , member transaction data and member behavior data are stored in the member data platform, forming the core member data assets of China Duty Free Group.
1) Integrated management of multi-source heterogeneous member data to build a unified membership ONEID system
Build a unified China Duty Free membership platform to connect, collect, and classify member data from multiple existing self-owned channels and heterogeneous channels Through one governance, a unified membership ONEID system is formed to achieve online and offline unification, domestic and overseas unification, unified membership system, unified member brand, and unified member data, effectively solving problems such as duplication of member information from different channels and difficulties in data exchange and sharing.
2) A complete and continuously optimized labeling system to form a multi-dimensional and three-dimensional understanding of members.
builds a membership labeling system that conforms to the characteristics of the duty-free industry, models, extracts, and analyzes member asset data, and builds a 360゜ portrait of members to provide the group with The store carries out precise membership marketing activities for thousands of people to provide members with insights and analysis capabilities.
3) Use AI algorithm models to drive member insights and provide support for efficient digital operations.
helps operators better understand member preferences through algorithm models such as RFM model, AARRR growth model, promotion sensitivity model, product intelligent recommendation model, and behavioral preference model. , providing tool support for digital operations.
(2) Refined operation of global membership to improve member loyalty in an all-round way
Fully consider the business characteristics of the group's hierarchical, decentralized and domain-based business, as well as the multi-category and multi-level business management structure of duty-free shops, as well as multi-language, multi-currency and other multi-business In order to meet the needs of the model, we need to build a membership system with members as the core, which can be unified and divided, and is common to multiple business models to achieve unified membership, unified rights and unified operations.
1) Member data and rights are exchanged to build an integrated member service system.
establishes a member growth management system based on member consumption model management. Through growth value, points and other carriers, differentiated member level rights and interests are established. Through member care, member price , member days, member gift packages, exclusive customers, member privileges and other forms to provide different members with different exclusive rights and interests to enhance member loyalty and consumption experience.
2) Co-branding and mutual recognition of the multi-channel membership system expands the field of membership services
supports the mutual sharing of rights and points exchange with airlines and banks to achieve high-end resource sharing, thereby expanding the brand influence of China Duty Free Group.
(3) Enrich member marketing tools and improve member operation capabilities
Build a unified marketing tool platform for groups and stores to carry out precise member marketing activities. Marketing methods include but are not limited to card and coupon marketing, points marketing, content marketing, event marketing, scenario marketing, etc. The marketing platform is interconnected with the member data asset platform, and target customer groups are selected based on member tag portraits, members' full life cycles, members' full shopping journeys, etc., and flexible marketing strategies can be selected to reach omni-channel marketing.
1) Covering the entire life cycle, improving member retention and contribution rates
focuses on the growth process of members, based on the concept of scenario + service, combined with a diversified rights system and the ability to reach all channels, to build a complete member full life cycle operation Tools to carry out different member incentive activities for different stages of the member life cycle to improve member retention and contribution rates.
2) Covering the entire shopping journey to improve members’ shopping experience.
provides a series of convenient services around the entire shopping journey of members, including entry, shopping guide, product selection, settlement, check-out and after-sales, to create a one-stop good shopping experience.
3) Scenario-triggered automated marketing to improve operational efficiency
combines data-driven member behavior preference insights, reach mechanisms, etc. to build a scenario-triggered automated marketing engine to improve member marketing efficiency and effectively promote performance conversion.
(4) Cross-scenario multi-dimensional data analysis, empowering operators to make efficient decisions
AI engine drives cross-scenario multi-dimensional membership data, points data, coupon data, indicator data, sales data, marketing activity data, product/store operation data, etc. Visual presentation, support for custom selection, high concurrency and stability to meet fast response. Use data to assist operations in carrying out activities and achieve real-time tracking and optimization, forming a data closed loop and empowering operators to make efficient decisions.
(5) Cross-industry cooperation realizes multi-level linkage of resources and innovates the business growth model
Based on the scale of China Duty Free Membership and brand effect , based on the architectural layout of the unified large membership platform, a China Duty Free Cross-Industry Cooperation Platform is built , open membership, rights, points, coupons and data services, and provide data and business support for cooperation with Internet channel providers, payment service providers, banks, brand owners, etc. Focusing on travel retail services before, during and after the trip, there are currently dozens of cooperation projects relying on China Duty Free members, laying the foundation for customers to have a good experience in one-stop duty-free shopping services.
3. Main achievements achieved:
Since the China Duty Free Membership Platform was put into operation, with the help of a brand-new membership operation system, from the perspective of data analysis and decision support, China Duty Free has been engaged in membership marketing, high-end membership group operations, and brand business endowment. Effective optimization and improvement have been made in terms of capabilities, cross-industry cooperation, and intelligent analysis. Through high-quality and refined membership operation services, China Duty Free has achieved significant growth and improvement in membership size and activity: membership size has increased by 5 times, the number of active members has increased by 3 times, and the ratio of membership sales to revenue has increased by 20%. %, the points activity increased by 18%, and the total number of members exceeded 20 million!
China Duty Free Membership Platform has not only achieved a comprehensive upgrade covering member growth paths, rights and marketing models, but also provided effective assistance for the platform to deeply explore the value of its customer base. Especially during the epidemic, the use of China Duty Free Membership Digital Platform has achieved online and offline integration, overall coordination of the group and branches, and intelligent membership marketing. While helping brands better connect with target customers and improve store operation efficiency, It has also found a new growth engine to achieve closed-loop management of the entire consumer life cycle and attract incremental users.
4. Outlook:
When business innovation has returned to people-centered, how to use technology to empower more accurate and relevant consumer services has become an important research topic for retailers, brands and service providers. As a large international duty-free operator, the construction and operation of China Duty Free's unified membership platform is not only a reflection of China Duty Free Group's technological innovation, but also the application of China Duty Free's "people-oriented" concept.
In the future, China Duty Free Group will rely on the strong tourism resources of its parent company, China Tourism Group, and China Duty Free Group will continue to shoulder the mission of making China’s duty free industry stronger, better and bigger, comprehensively integrate resources, innovate operating mechanisms, and steadily promote internationalization. development strategy to build a world-class travel retail operator with global competitiveness. We will continue to improve the level of corporate digital construction, continuously optimize the capabilities of our membership platform, and insist on providing consumers with more refined and convenient services while improving the consumer experience. We will continue to be committed to promoting the vigorous development of China's tourism retail market, steadily advancing the international development strategy, and making unremitting efforts to better shape and spread the value of Chinese brands!
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