Since openings its first shop in New Zealand in 1991, Pumpkin Patch has experienced phenomenal growth and now owns 170 stores worldwide. Its children’s clothing collection is also sold in a further 150 partner stores.

The retailer has a database of over two and half million customers, a number which is projected to double over the next five years.

Twice a year Pumpkin Patch distributes its catalogue to approximately 1.1 million customers around the world. It also sends over six million marketing emails a year.

With this vast and growing database, finding a CRM tool that was scalable and could provide a clear and accurate customer view was a key requirement.

“We needed an application that could efficiently record our customers’ names and addresses in any country and allow us to use that information to market to them through different channels,” says Bruce Walkley, general manager of Pumpkin Patch Direct.

“With the number of catalogues that we send out, having accurate data is crucial in keeping the cost of mailings low. After an extensive analysis of all CRM packages available on the market globally, we chose Microsoft Dynamics CRM as the product that can deliver on that front and so far, we’ve been very happy with our choice.”

Need for speed leads to customised front-end data capture
For Martin Bremner, direct marketing manager at Pumpkin Patch Direct, speed and stability were important considerations around a new CRM system.

“Our shops are busy and fast-paced. We often have anxious mums and dads queuing up at the counter with tired, grumpy kids in tow, making a lot of noise!” he says.

“We need to be able to record their details quickly, so that we don’t make people wait, while still capturing reliable data that is useful for our marketing team.” 

To achieve this, Pumpkin Patch worked with Microsoft and IT partner Datacom to create a customised interface that allows retail employees to input customer data directly at the counter.

The CRM system is integrated with Pumpkin Patch’s retail transaction database, order engine and contact centre records. This means the company can create a full profile of each customer including personal information, transactions made in-store, online or by mail order, marketing permissions, marketing communications received and promotions they have participated in.

“This provides us with a truly 360-degree view of our customer base and allows us to target them with relevant campaigns,” says Bremner.

“The solution allows us to refine our marketing strategy by identifying better opportunities and targeting customers more accurately with catalogues and emails.  Our data is far richer and more reliable, so we are now sending catalogues to people who want them and who are more likely to make a purchase than might have otherwise done before.”

Top service for contact centre customers
Microsoft Dynamics CRM is also being used within Pumpkin Patch’s contact centre to help manage workflow. Contact centre agents take orders, deal with queries, handle complaints and manage other communications, so skill routing is used to direct the customer to the person most qualified to meet their need.

The system is linked to Microsoft Exchange Server to ensure that the same criteria are applied to incoming emails and all customers receive the highest level of service. 

“Previously we managed the contact centre using email and a paper based system of in trays,” says Bremner, “but having a CRM solution means that queries are handled quickly and more efficiently and there is less chance of a query going astray. It is also easier to find customers on the system so they are not kept waiting on the phone and customer service representatives are less likely to create a duplicate record.”

The Microsoft Dynamics CRM solution helps the contact centre to manage all customer interactions in one system, where previously several databases and systems were used.  Pumpkin Patch now holds more information in each customer record, rather than fragments in several systems, giving one complete view of the customer and better business insight. In addition, there is more visibility on customer issues and how they are being dealt with, ensuring that customer service levels remain high and allowing the company to pinpoint areas for staff training.

Smooth implementation
From start to finish, the global CRM system implementation project took about six months. The project came in under budget and disruption to the business was minimal.  Much of the project time was spent on planning to make sure that the system met users’ needs and on the customisation of the retail interface. 

“We used the existing CRM product and pared down the input screen to be more streamlined and efficient for our retailers,” says Walkley.

“Training was done remotely via web demo sessions in each of our retail stores around the world. Trainers could guide employees through the product and it was simple enough to learn. Because the new system is quick and easy to use, our employees feel positive about it which has had an impact on morale and we get much richer information from it which benefits the business.”

Prior to the Microsoft Dynamics CRM solution, Pumpkin Patch used an externally hosted CRM solution. However, it proved to be unreliable, costly and inflexible in terms of roll-out on a global scale. 

“We wanted to move away from a hosted system and control our own customer database,” says Walkley.

“We can now make and evaluate changes quickly to cope with rapid company growth in different markets with different models. This gives us greater customer insight and the ability to run reports when necessary, without relying on an external provider or paying for their time. Rather than processing routine reports, our IT experts actually have time to add value to managing and configuring the system to meet our needs.”

Positive reaction, greater business insight
“The store reaction has been overwhelmingly positive. I’ve never actually seen an IT project where there hasn’t been any negative feedback. I keep waiting for it to happen but it hasn’t,” adds Bremner.

“The system is so much simpler to use and is stable and reliable.  People have already bought into it and we’re seeing results in terms of names captured, transactions matched and accuracy of the data that we’re collecting.

“Our customer database has gone from being one that was difficult to use and prone to problems, to one that provides important business insight. As we explore the capabilities of the system, we feel that we will be able to get even more useful data and further improve our customer relationships.

For more information
Microsoft CRM
Anne Frith
09 362 5865
askdynnz@microsoft.com

October 2007

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