Shell

How Shell Generated €3,3M by Integrating Loyalty Data to their Geospatial Solution

Summary

The client

Shell is an international energy company with expertise in the exploration, production, refining and marketing of oil and natural gas, and the manufacturing and marketing of chemicals. Shell is also the world’s number one retailer, serving 30 million customers a day, and processing 11 billion transactions a year across 44,000 retail gas stations in more than 75 countries.

The challenge

Data is key when it comes to fuel pricing strategies. Shell wanted to leverage their customer loyalty data by automating the analysis process, which at that time was done manually, on a site-by-site basis.

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The result

Within only three months of usage, Shell was able to achieve net new margins of 3,3M euros for Germany alone.

The client

Shell has been a Korem customer since 2007. The first project Korem completed for Shell was building a solution allowing the analysis of fuel price volatility in Western Canada. Having successfully provided transparency on daily price dynamics through geospatial analysis, Shell and Korem’s business relationship continued with the development of a geo-dashboard with reporting and analytics capabilities.

With its many locations across the world, combined with a large amount of data and market volatility, Shell found it challenging to properly analyze variables in real time. Hence, this geo-dashboard solution is now an essential tool for decision-making across the organization. The dashboard was developed to reflect the distinct market realities. With this tool Shell can:

  • Have a single view of its data and competitor data
  • Analyze and manage site performance
  • Monitor pricing strategies
  • Plan and monitor supply and outages
  • Plan routes for prospective activities

The Challenge

How to Incorporate Loyalty Data Into Daily Pricing Strategies?

Loyalty programs are an excellent way to keep customers coming back while collecting data on their consumption habits. These data, combined with other location information, can be geospatially analyzed to gain customer insights.

Shell has multiple loyalty programs across the globe and many markets leverage the Shell ClubSmart program. However, the loyalty program data was underused due to the complexity of manually analyzing the relevant data on a site-by-site basis. This was a time-consuming process and did not properly give an overview of the market.

Shell wanted to expand the capabilities of its custom-developed geospatial solution by visualizing the purchasing behavior of ClubSmart customers, in proximity to both Shell and competitors’ locations.

The solution

A New Flexible Map Layer for Competitive Prices

Having a large-scale enterprise solution for an international company requires flexibility, scalability and agility. This new data layer was no different and was built with the possibility of easily adding data and being replicable in all geographic markets through data standardization.

Korem adapted the solution so that users could easily and automatically create analysis map layers based on aggregated customer data, describing for each gas station the wider catchment area, whether the customer base is mainly on the road or dominated by residents living close to the site.

The loyalty data can be viewed as precisely as desired, ranging from a single gas station to the entire country. The data is synchronized each time there is a change which gives pricing analysts a near real-time view in only one click which helps them take action on a daily basis.

Generating real-time thematic map layers gave Shell the ability to improve its pricing position based on improved customer understanding. In addition to this, the solution provided the flexibility to add any data element, such as the number of transactions, convenience store sales, or loyalty penetration percentage using only the site number as a unique identifier.

featured services

Shell Uses These Korem Services

Korem's Strategic Consulting Services

Strategic Consulting

We provide business and technology perspectives to develop an innovative geospatial roadmap that will create value for your organization.
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Korem's Contract Advisory Services

Contract Advisory

We give you access to the best geospatial providers for which we already have negotiated the best prices and contract terms.
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Korem's System Integration Services

System Integration

Whether you are looking at geospatial enablement or for fully customized application, we deliver on time, on budget and on target.
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Korem's Managed Services

Managed Services

We complement your in-house IT operations to accelerate your time to value and maintain your geospatial solution in a cloud or hybrid environment.
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Key results

€3,3M

in revenues in Germany alone

28

countries using the solution

The outcome

A Simple Investment Yielding Big Results

By automating and simplifying the manual and cumbersome process of their loyalty data analysis, Shell was able to spend less time on data integration and shift their focus to analyzing the data and driving insights, while generating higher revenues with this solution.

The results have been astounding! After the first three months of implementation, Shell was able to improve their revenue margin by more than 3M euros in Germany alone. The geo-dashboard now supports operations in 28 countries that can leverage this new functionality with their loyalty data.

Shell is now able to better understand their loyal customers behavior within their network thereby enabling them to make quicker and more informed pricing decisions.

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