Webinar On-Demand: The Power of Analytics to Drive Loyalty

© Copyright 2000-2012 TIBCO Software Inc.

THE POWER OF ANALYTICS

TO DRIVE LOYALTY


Your presenters today

David RosenStrategy, Analytics and Consumer InsightsTIBCO Loyalty Lab

Brett HannathDirector, MarketingTIBCO Loyalty Lab

2


TIBCO LOYALTY LAB

WHO WE ARE


LOYALTY TECHNOLOGY• Loyalty Lab On-Demand Loyalty

Platform• Predictive Analytics & Data

Visualization• Data Matching, Cleansing,

Standardization, Enrichment• Messaging and Integration• Real-Time Contextual Marketing

LOYALTY TECHNOLOGY• Loyalty Lab On-Demand Loyalty

Platform• Predictive Analytics & Data

Visualization• Data Matching, Cleansing,

Standardization, Enrichment• Messaging and Integration• Real-Time Contextual Marketing

LOYALTY SERVICES• Program Strategy and Design• Analytics• Creative• Program Support• Data Integration• Customization

LOYALTY SERVICES• Program Strategy and Design• Analytics• Creative• Program Support• Data Integration• Customization

TIBCO Loyalty Lab


TIBCO Loyalty Lab clients

Over 260 million consumer records managed


What do marketers need?

6

LOYALTY

Offers

Loyalty Programs

Relevant Messaging

Real-time Engagement

Customer Insights

Single View of the

Customer

Effective Mobile

Great Service

Social Context


What do marketers need?

7

LOYALTY

Offers

Loyalty Programs

Relevant Messaging

Real-time Engagement

Customer Insights

Single View of the

Customer

Effective Mobile

Great Service

Social Context


WE WERE CURIOUS

8


We surveyed over 100 marketers…


… to find how analytics areused to drive loyalty


Who responded?

11

18%

19%

9%

54%

Your company's industry

Financial Services / Banking

Retail

Travel / Hospitality

Other

15%

39%

34%

12%

Your role in your company

C-level

Manager

VP or Director

Other

19%

20%

17%

32%

10%2%

Size of your company by number of

employees

1 - 99 1,000 - 4,999

100 - 499 5,000 +

500 - 999 Don’t know


Organizational culture

12

0 20 40 60 80 100

We don’t have time to test –we move too fast

We have invested insignificant predictive analytics

/ business intelligencesoftware and/or services

Our organization has internalexpertise in predictive

analytics

Test & learn is the foundationof our culture

We actively use the results toinform our campaigns

Do you agree or disagree with the following statements when it comes to

the culture of your organization?

Top 2 Top 3

A third party

analytics firm7%

None of the above

16%

Our vendor

11%

The analytics

team44%

The loyalty team22%

The principle driver of analytics for our company is:


Current vs. IdealTools and Tactics Considered:

• Use tools to measure social buzz and sentiment• As it relates to our loyalty program, analyze customer lift by basket

size and frequency• Measure specific campaigns with A/B testing• Measure specific campaigns with rigorous test and control• Measure program ROI down to a specific number for overall program

performance• Measure consumer satisfaction and attitudes

7-point scale7-Strongly Agree, 1-Strongly Disagree

13

Measuring the success of your loyalty program


Current loyalty program measurement

14

0 10 20 30 40 50 60 70 80 90 100

Use tools to measure social buzz and sentiment

As it relates to our loyalty program, analyze customer lift bybasket size and frequency

Measure specific campaigns with A/B testing

Measure specific campaigns with rigorous test and control

Measure program ROI down to a specific number for overallprogram performance

Measure consumer satisfaction and attitudes

How do you CURRENTLY measure the success of your program?

Top 2 Top 3


Desired loyalty program measurement

15

0 10 20 30 40 50 60 70 80 90 100


As it relates to our loyalty program, analyze customer lift bybasket size and frequency

Measure specific campaigns with A/B testing

Measure specific campaigns with rigorous test and control

Measure program ROI down to a specific number for overallprogram performance


Ideally how would you LIKE TO measure the success of your loyalty program?

Top 2 Top 3


Current vs. desired measurement

16

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

How

do

you

CU

RR

EN

TLY

mea

sure

the

suc

cess

of

your

p

rog

ram

?

Ideally how would you LIKE TO measure the success of your loyalty program?

Analyze customer lift by basket size and frequency


Measure specific campaigns using A/B testing

Measure specific campaigns using rigorous test and control

Measure program ROI down to a specific number for overall program performance



Are dashboards and reports important/effective?

Effective vs. ImportantDashboards / Reports:

• Breakage rate• Point accrual• Point redemption/conversion• Channels• Products (SKU)• Offer performance• Segment migration

7-point scale7-Extremely Effective/Important, 1-Extremeley Ineffective/Unimportant

17


Performance dashboards/reports effectiveness

18

0 10 20 30 40 50 60 70 80 90 100

Breakage rate

Point accrual

Point redemption / conversion

Channels

Products (SKU)

Offer performance

Segment migration

How effective do you rate your Performance Dashboard / Reporting capabilities?

Top 2 Top 3


Performance dashboards/reports importance

19

0 10 20 30 40 50 60 70 80 90 100

Breakage rate

Point accrual


Channels

Products (SKU)

Offer performance

Segment migration

How important are the below Performance Dashboards / Reports?

Top 2 Top 3


Importance vs. effectiveness in reporting

20

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

How

eff

ecti

ve d

o yo

u ra

te y

our

Perf

orm

ance

Das

hboa

rd /

R

epor

ting

cap

abili

ties

?

How important are the below Performance Dashboards / Reports?

Breakage ratePoint accrual Products (SKU)


Channels

Offer performanceSegment migration


Are certain capabilities effective/important?

Effective vs. ImportantAnalytics Capabilities:

• Modeling and predictive analytics• Liability measurement and management –auditing• Matching members to offers/ Offer optimization

7-point scale7-Extremely Effective/Important, 1-Extremeley Ineffective/Unimportant

21


Importance vs. effectiveness in analytics

22

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00

How

eff

ecti

ve d

o yo

u ra

te y

our

cap

abili

ties

?

Within your loyalty program analytics, how important are the below?

Liability measurement and management - auditing Modeling and predictive analytics

Matching members to offers / Offer optimization


WHY SHOULD WE CARE?


Customer/offer scoring; finding associated retailer and customer behavior

Retail cross-sell modeling


Offers looking for people


Buy three and get a coupon for a free

frozen treat

Earn double points on Greek-style

yogurt

What we do when when we have something to sell, to do, to promote…

… who is the best candidate to convert without sacrificing profitability?

• Category promotions• Cross-sells• Product introductions• Partner offers


People looking for offers


What we do when we want to change the behavior of specific members …

… what is the best offer to most efficiently motivate the next action?

• Come back, we’ve missed you• What to buy next• New member lock-in

Welcome to yourRewards. Earn double points on your

third entry

Happy Birthday. Enjoy a frozen yogurt on us!


WHAT’S HIDING IN YOUR DATA?

User DrivenFreedom to ExplorePower to Discover

CollaborativeResponsive to Events

Any and All Data!

A BETTER APPROACH IS NEEDED

…visualization-based data discovery tools have far-reaching implications for how business information is consumed….end-user

organizations should adopt use as a way to improve the success of their BI program. - Gartner, June 2011

ANALYTICS & DATA

DISCOVERY

Useful, but Limited to Static

Information

Predetermined Questions Only

IT-dependent

REPORTING STATS

Powerful, but Highly Complex

Difficult to Customize

For Advanced Users Only

Visual, Intuitive, & Interactive

Dynamic, Fast, & Easy to Use

Ad-hoc Q&A, Customizable

Empowers All User Populations

Spotfire Value Drivers

Self-Service DiscoveryFreely explore data to any level of detail, radically

accelerating decision making, while dramatically reducing dependence on IT

Universal AdaptabilityLeverage a single analytics and data discovery platform

to empower anyone, anywhere to make insightful decisions

Visibility Into the UnknownDiscover insights hidden in Big Data and Real-Time

Events to immediately identify strategic business opportunities or threats.

Fastest to Actionable InsightInstantly turn insight into action by enabling anyone to

rapidly discover hidden insights and quickly collaborate in context


DEMO


Thank you!• Event follow-up email – presentation, survey results, whitepapers

• More information @ www.loyaltylab.com• Email questions to [email protected]

• Nov 6 Webinar - Success with Social Loyalty forms.loyaltylab.com/webinar_ssl

http://www.loyaltylab.com

mailto:[email protected]

Webinar On-Demand: The Power of Analytics to Drive Loyalty

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Transcript of Webinar On-Demand: The Power of Analytics to Drive Loyalty