Draft retailcapabilities082511
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Transcript of Draft retailcapabilities082511
A Luckie presentation
August 10, 2011
Big data is a big deal
CONFIDENTIAL - PROPERTY OF LUCKIE & COMPANY. © 2011 LUCKIE & COMPANY. Reproduction, distribution, presentation, display, license, and derivative works by written permission only from Luckie & Company.
Great storytelling begins with the data
By gaining a deep and thorough understanding of your company’s relationships with its customers, we develop insights that will change how you manage customer engagement, sales and retention.
We develop strategies using your data that enable measurable marketing ROI by deploying macro campaigns and micro initiatives based on multivariate Business Intelligence. Our methodology is:• Identify the strategic objectives of an organization balanced against marketing
opportunity• Integrate all data sources to determine how technology-driven marketing can
motivate consumers to specific transactional behaviors• Differentiate consumers in various segments, groups or other subsets to
maximize relevance while maintaining the highest return on marketing investment (ROMI)
• Execute customized, individually relevant multi-channel marketing programs• Measure the results against key performance indicators and rapidly react This approach allows for constant improvement of multiple initiatives while focusing on current consumers, acquiring prospects, and ensuring effective channel use to drive marketing optimization.
Data defines and prioritizes the consumer spectrum
1 to ManyMass: TV, Print, Display
Shop at Stein Mart
1 to FewNiche: SEO/SEM, Print, Email, SM
Women’s, Men, Housewares
1 to 1Loyalty Club:
Private Sale, New Brands, BOGO
AWARENESS
New Member
Elite
New Loyalist
Departmentalist Holiday
Shopper
Tenured
Good Customer
Register to win <Register for newsletter <
Register for coupons < Customer transaction<
Moving from Awareness to Behavior
BEHAVIOR
Data defines value potential across three or more dimensions
Value potential drives the strategy, targeting, creative, execution, and optimization
Banners
Mobile Banners Intelligent POPMobile Opt-In
Facebook App Facebook AdsiPad/iPhone App iPad Ads
Location Based Marketing
Paid / Organic Search
Digital Video
Blogger Outreach/PR
Couponing based on Check-in
Community
Print Out-of-Home (OOH) Video eMail
:30 :15Direct Public Relations
Radio
Customer Service
SweepstakesSponsorships
Great strategy drives the right stories to the right audiences at the right times and in the right places
WOMEvent
Website Mobile Site
Foursquare
Flickr
Tumblr
And that drives customers to action
Customer Velocity
0
10
20
30
40
50
60
70
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12
Purchase (#)
Days
bet
wee
n Vi
sits
Our current and former clients all agree
Lets take a closer look
Customer Segmentation Example
behavioral segments
Defines value to the brand
• Based transactional (behavioral) metrics– Sales (monetary)– Coupons– Engagement (digital)– Visits (frequency & recency)– Loyalty
• Marketing impact– Investment– Cadence– Lifetime value management
leveraging the y-axis
13
Tim
e 1
Inte
rcep
t
Tim
e X
Accelerating
Accelerating
Accelerating Projected
DeceleratingDecelerating
Decelerating Projected
Investment Investment
Accelerating Accelerating Projected DeceleratingDecelerating Projected Investment
Customer Velocity
Investment
Segment % Base % Sales Annual
Revenue Spend /
Vis i t Vis i ts Stores Dept
% Red Line
% Hol iday
Best Customer 20% 55% $ 500.00 $ 50.00 10.0 2.5 12.0 18% 25%
Core Customer 25% 15% $ 300.00 $ 40.00 7.5 2.0 5.0 16% 25%
Category Shopper
5% 2% $ 70.00 $ 35.00 2.0 1.2 1.4 7% 20%
Outfitter 8% 10% $ 300.00 $ 175.00 1.7 1.2 6.9 12% 14%
Hol iday Shopper 10% 4% $ 110.00 $ 55.00 2.0 1.0 2.8 5% 100%
Occas ional is t 20% 6% $ 60.00 $ 40.00 1.5 1.0 2.2 5% 0%
Red Line Shopper
12% 8% $ 90.00 $ 30.00 3.0 1.2 4.5 62% 22%
Example | Behavioral Segment
Attitudinal profiles
• Defines the ‘who’ (targets)– Based on demographic, psychographic
and motivational datasets• Marketing impact
– Creative presentation– Media targets
Planet PÜRists
• Primarily well to do singles, young couples
• Messaging and creative– Natural, organic,
artsy– Environmental,
cause-oriented
• Imagery – Earthy tones– Clean, balanced
Planet PÜRists
Planet PÜRists Index Grand TotalDemographic Snapshot
Percent Asian 8.4% 161 5.2%Percent Black 8.1% 104 7.8%Percent White 76.0% 95 79.7%Percent Hispanic 11.3% 109 10.3%
Financial SnapshotPer Capita Income $38,714 120 $32,210Median Household Income $65,055 107 $60,731Average Household Income $85,137 106 $80,046Average Household Value $195,475 95 $204,807Socioeconomic Average 75 118 64
Household SnapshotAverage Household Size 2.3 91 2.5Median Age of Household 37.6 98 38.4Percentage Married 52% 89 58%Percent Household 14 - 24 13% 92 14%
7%
Pct of Sales
10%
Pct of Customers
High internet activity Responds to text coupons Uses mobile email Does not read the paper Very active in social media Index high to use internet for
job search, dating and banking
Index high for Spanish radio
Planet PÜRists
Attitudinal Segment
media strategy | Mobile, AL
Attitudinal Segment
media strategy | Jacksonville, FL
creative effect
Attitudinal Segment
Response Rates Fashion Piece Moderate Piece Value Piece
Fashion Customer +11%
Moderate Customer +8%
Value Customer +16%
Response Rates Fashion Piece Moderate Piece Value Piece
Fashion Customer +11% -83% -73%
Moderate Customer -15% +8% -5%
Value Customer -44% -45% +16%
Individual Attributes
• Defines individual demand drivers– Product or brands– Preferred channel(s)– Preferred stores
• Marketing impact– Messaging– Offers– Communication
frequency
Individual Attributes
0 5 10 15 20 25 30 35 40 45 500.0
0.2
0.4
0.6
0.8
1.0
Survival & Revenue v. TenureEntire Base
Proportion of Total Revenue Probability of Survival
Tenure (Months)
Prob
abili
ty/P
ropo
rtion
Individual Attributes
0 5 10 15 20 25 30 35 40 45 500.0
0.2
0.4
0.6
0.8
1.0
Survival & Revenue v. TenureOrders > 1
Probability of Survival Proportion of Total Revenue
Tenure (Months)
Prob
abili
ty /
Pro
porti
on
Individual Attributes• leveraging the z-axis
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
$-
$100
$200
$300
$400
$187
$276
$330
$385
$155
$214
$254
$291
Test Control
Sp
en
d p
er
Cu
sto
mer
Implementation of a longitudinal multi-touch contact strategy drives not only tactic ROI, but also significant impact on annual spend vs. control and increases LTV
360° view
360° view
Need updating with all logos
What story can we tell with your data?
Thank you
Luckie & Co.
John Heenan, CMO600 Luckie DriveBirmingham, AL 35223
P 205.879.2121F 205.877.9855
www.luckie.com
CONFIDENTIAL - PROPERTY OF LUCKIE & COMPANY. © 2011 LUCKIE & COMPANY. Reproduction, distribution, presentation, display, license, and derivative works by written permission only from Luckie & Company.