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Improving Business Performance With Customer Insights
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Transcript of Improving Business Performance With Customer Insights
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#RetailAnalytics
Improving Business Performance With Customer Insights
#RetailAnalytics
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#RetailAnalytics
Type ques)on here
Welcome Webinar Attendees
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#RetailAnalytics
Follow This Webinar On Twitter
#RetailAnalytics
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#RetailAnalytics
About Retail TouchPoints
ü Launched in 2007
ü Over 23,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP
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#RetailAnalytics
Panelists
Eric Williams Former Executive VP
and CIO Catalina Marketing
Debbie Hauss Editor-in-Chief Retail TouchPoints
Anthony Volpe Retail Analytics Evangelist
SAS
MODERATOR
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Company Confidential 2012 Enw advisors 6
For the “Me” Generation
Improving Business Performance with Customer Insights
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Company Confidential 2012 Enw advisors
Who is Catalina Marketing
• Founded in 1983
• Headquartered in St. Petersburg, Florida
• $500+ million annual revenue
• Privately held (Hellman & Friedman)
• Invented consumer-based Marketing in early 1980’s ~ 27,000 US Grocery & Mass Merchants ~ 10,000 International (France, Italy, Germany, Belgium, Netherlands, UK, Japan) ~ 17,000 Pharmacy (US)
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Company Confidential 2012 Enw advisors
Mass Media continues to Diminish in
Relevance
Personalized, Behavior-Specific Targeting is Everywhere
WEEKLY SAVINGS
Text Messaging POS Print
Messaging
Social Networking
Online Wireless
Voice Mail
Real Time POS
The World of Marketing has changed and the Data required to operate has changed
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Company Confidential 2012 Enw advisors
The “Me” Generation has created challenges for traditional advertising media
iPod
Personal Trainer
My Television Facebook
Self Magazine
iPhone My Way
Personal Coffee
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Company Confidential 2012 Enw advisors
And… maintain my personal information securely and use it appropriately
1. Short and to the point
2. Choose to see when convenient for me
3. Personally communicated by trusted friends or experts
4. Information about price discounts or special deals
5. Customized to fit my specific needs and interests
Source: Yankelovich Partners Marketing Receptivity Study
What Consumers Want in Marketing Communication
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Company Confidential 2012 Enw advisors
Using Customer Insights to Move From Product Centric to Customer Centric Strategies
Customer Insights: Making Information Actionable
Product is king … This is who buys it
Customer is queen … This is what is important to her
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Company Confidential 2012 Enw advisors
© 2012 Catalina Confidential
Data and Technology
• Three key examples of how data can change Marketing organizations – Data Mining and Predictive Analytics
• The use of HPC and In-database technology
– Offer Optimization • The use of Marketing Automation
– The Brave New World of Media Optimization
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Company Confidential 2012 Enw advisors 13
What is Predictive Modeling? A sophisticated method to identify and
communicate to consumers who have never purchased your brand but are most likely to buy
1) Greatly enhances trial efficiency 2) Excellent conversion rates after trial 3) Increases “never buy” response rates Likely brand buyers exhibit similar grocery
purchase behavior as current brand buyers, only they have not yet purchased the brand
Brand Buyer Likely to Buy Brand
Predictive Modeling:
Predictive Modeling – Books / CDs / Movies
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Company Confidential 2012 Enw advisors
Data mining allows marketers to focus their investments against most likely new customers
“When consumers first try Coffee Mate or International Delight, they tend to remain loyal to that product. If we could only predict which households cream their coffee with milk we can attract them, but almost all households buy milk.”
- Nestlé USA
Data Mining – Predictive Analytics
Making Consumer information Actionable
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Company Confidential 2012 Enw advisors
Data mining allowed Catalina to predict and market to households lightening coffee with milk
• Within Catalina’s household database – Use Behavior Activated Research (BAR) to conduct attitudinal
study of a group of milk and coffee households
– Identify those who lighten their coffee with milk
• Identify similar households in Catalina’s database based on a predictive model
• Apply impressions against identified groups
• Measure changes in groups’ purchase behavior
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Company Confidential 2012 Enw advisors 16
Marketing Solutions for Top Industry Initiatives
Precision Marketing Solution Find the people who care Tell them the day it’s in the store First an ad, then an incentive Result Accelerated new item velocity Ongoing higher share
Launching New
Items
Driving Usage
& Compliance
Advancing Eat At Home
Building Category Volume
Precision Marketing Solution Find the people who have the ingredients Give a cook-at-home-tonight recipe
Recipe only or Recipe + Incentive
Result $0.13 investment yielded $0.75 in sales
Average Dollar Sales
RECIPE +
INCENTIVE
$7.83
RECIPE ONLY
$7.75
CONTROL
$7.00
Precision Marketing Solution Educate with a series of helpful messages Reinforce benefits of regular regimen
Result Consumers began to buy monthly, not bi-monthly
72
Days
35
Days
Purchase Cycle
Compressed 50%
Volume Lift: Test vs Control
16.7% 18.5%
8.4%13.3%
64.3% 61.8%54.8%
65.2%
Bath Tissue FeminineCare
FrozenWaffles
InstantCoffee
Category Growth Brand Growth
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Company Confidential 2012 Enw advisors 17
Creating a Unique Campaign for Each Segment
Loyals $285/Mo 4.2 Trips
60% Sales
Recapture Stock Up Categories
Splits $99/Mo 1.8 Trips
31% Sales
Create a Trip Mission
Occasional $38/Mo 1.1 Trips 9% Sales
More Trips
Segment Strategy
Occasionals
SPLITS
LOYALS
$-$10$20$30$40
$50$60$70$80
- 1 2 3 4 5 6 7Trips Per Month
AVG
BA
SKET
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Company Confidential 2012 Enw advisors 18
Tailor Your Communications
Deliver customized incentives based on loyalty and category consumption
Never Buys Own Brand
Loyal Buyer of Own Brand
Occasional Buyer
Buys Competitor Frequently
Initial Trial
Try Me Again!
Gain Share
Retain & Optimize
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Company Confidential 2012 Enw advisors
Offer Optimization
Jam $1 off $5 Jam $2 off $7
Jam $2 off $4 Jam $1 off $3
4
Cheese $1 off $5 Cheese $1 off $3
Cheese $1 off $7 Cheese $2 off $7
Milk $1 off $5 Milk $1 off $3
Milk $1 off $7 Milk $0.50 off gal.
FREE Salad Bag
Carrots $1 off 1 lb Carrots $1 off 2 lb Carrots $2 off 3 lb Cereal $1 off $5
Cereal $1 off $3
Cereal $1 off $7 OJ $1 off $5 OJ $1.50 off gal.
OJ $1 off $7 FREE Muffin Bakery $1 off $7
2 6 7 5 3 1 Cereal $1 off $7 Jam $1 off $3
OJ $1.50 off gal. Milk $1 off $7 FREE Muffin
Cheese $1 off $3
Customer must qualify for 3 Offer Groups to get a
distribution. If customer qualifies for more
than 5, they should only get the 5 highest priority
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Company Confidential 2012 Enw advisors
The New Consumer
Personalization (opt in, my communication style, recognize me, mass is noise)
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Company Confidential 2012 Enw advisors
Multi-Channel Shopper Platform
Targeted Offers (Relevant. Personalized. Timely.)
DIGITAL TOUCHPOINTS (Mobile, Kiosk, Screen, Apps, Email, NFC,
etc.)
PROCESS
PERSONNEL
TECHNOLOGY
Intelligent Shopper Solu)on
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Company Confidential 2012 Enw advisors
Laying Foundation of Loyalty Database
Based on Spending/Frequency, Product Preferences
Regency/Frequency 80% + Sales on Card
Customer Sign-up
Commitment
Market Impact
Customer Segmentation
One To One Marketing Programs Relevant Offers / Promotions based on Customer Purchase History
Integrated Customer Marketing
Building Card Usage
1
4
2
3
5
Loyalty Marketing Continuum
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Company Confidential 2012 Enw advisors
Thank You!
23
Data gets you in the game
Information provides the advantage
Knowledge changes everything
Eric Williams Executive VP & CIO - Retired Catalina Marketing Corp. [email protected]
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
IMPROVING BUSINESS PERFORMANCE WITH CUSTOMER INSIGHTS
A SOFT-LINES PERSPECTIVE
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
Copyright © 2012, SAS Institute Inc. All rights reserved.
Customer Insights Are
Just That--Insights
• Improved business performance requires insights to be incorporated into critical decision processes
• The decisions to be impacted should drive the search for new insights
• Innovation is the key to continuous improvement with Customer Insights
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
Customer Insights Can
Impact All Aspects Of
Retail
• Merchandising and Supply Chain have the potential to be revolutionized
• Progressive Omni-Channel initiatives will rely heavily on Customer Insights
• Marketing remains the most common application
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
CUSTOMER INSIGHTS IMPROVING MERCHANDISING PERFORMANCE
Impact Localized Assortments
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
CUSTOMER INSIGHTS IMPROVING OMNI-CHANNEL PERFORMANCE
Broaden Assortments by Properly Using
E-Comm
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
CUSTOMER INSIGHTS IMPROVING DESIGN PERFORMANCE
Capture Behavior and Sentiment in
Design
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Copyr igh t © 2012 , SAS Ins t i tu te Inc . A l l r i gh ts reserved .
Copyright © 2012, SAS Institute Inc. All rights reserved.
High Performance
Analytics Supercharge
Customer Insights
• Behavioral data is truly Big Data • Failing fast is critical • Innovations can incorporate a broader combination
of data elements than ever imagined
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#RetailAnalytics
Q&A // Submit Your Questions
Type ques)on here
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#RetailAnalytics
Q&A
Eric Williams Former Executive VP
and CIO Catalina Marketing
Anthony Volpe Retail Analytics Evangelist
SAS
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#RetailAnalytics
Thank You For Attending This Webinar
You can download this presentation at:
http://rtou.ch/ciwebinar