North Face optimises rewards programme through Tibco Engage

Outdoor apparel retailer North Face has used a new SaaS product from Tibco to develop customer rewards programme

Outdoor apparel retailer North Face has used a new software as a service (SaaS) product from Tibco to develop a customer rewards programme.

Speaking at Europe’s Customer Festival, a conference for marketing, Ian Dewar, a customer relationship manager for North Face, discussed how the company built a rewards programme to target its most valued customers.

He said: "Not all our customers are the same. We want to inspire a global movement to get customers. We wanted to focus our message on the people who used the products the most – our best customers."

Dewar said only 20% of its customers come back year-on-year, so North Face created a rewards programme based on getting people to participate in outdoor activities, rather than encouraging them to buy more.

The rewards are based on free invites to activities and events, such as entry tickets for races.

The rewards programme was developed with Engage, a new SaaS product from Tibco, designed to enables businesses to interpret and motivate consumer behaviour in real time.

"We want to captivate our best customers with the most relevant content and storytelling. Tibco helps us to more effectively understand our customers by activity so we can talk about running to runners, skiing to skiers and climbing to climbers," said Aaron Carpenter, vice-president of marketing for North Face. 

"Using Tibco technology has helped us gain significant understanding of our customers to take those relationships to the next level. We are excited to use the advanced analytics options in the new Tibco Engage application."

Engage is an SaaS product from Loyalty Lab, a company Tibco acquired in 2010. The product represents Tibco’s first major push in targeting applications specifically in marketing. It competes with the likes of ExactCloud, a marketing cloud from Salesforce.

Engage provides several components for marketing. It provides a means to connect relevant sales, marketing and communication channels to capture data and push out messages, offers and content. The built-in behavioural engine can be used to blend stream of historical and real-time data to predict customer interests, spot risks, and deliver actionable recommendations, Tibco said.

Other features include real-time interaction, loyalty management, social collaboration and communities.

According to analyst Gartner, by 2020, 35% of IT spending will be outside of the IT department. In fact, market is spending more on IT than the CIO. So it is no surprise that IT companies are going outside of IT to grow their revenue stream.

At last month’s CW500 Club, John Seglias, group IT director of transport firm Abellio Group, said he learned from a chance conversation with a supplier that his company was spending a six-figure sum on an IT system.

"I said 'OK, who is your point of contact?' I thought he was going to say, 'It’s your head of IT', but, instead, he said, 'Oh, I spoke to someone in procurement'," said Seglias.

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