A brief timeline of customer insights1955 19851965 1975 20151995 2005
Social ClassABC1C2DE
You are the job you do
Social ClassABC1C2DE
You are the job you do
Geodemo-graphics
ACORNMOSAIC
You are whereYou live
Geodemo-graphics
ACORNMOSAIC
You are whereYou live
LifestylesListsNDL
GuaranteeCards
You are what you say
LifestylesListsNDL
GuaranteeCards
You are what you say
Customer DataTESCOAmexVisa
Amazon
You are what you buy
Customer DataTESCOAmexVisa
Amazon
You are what you buy
Big DataSocial MediaDigital Media
Mobile BehavioursBrowsing Behaviour
You are what you are
passionate about
Big DataSocial MediaDigital Media
Mobile BehavioursBrowsing Behaviour
You are what you are
passionate about
“Claimed & demographic data”“Claimed & demographic data” “Actual & behavioural data”“Actual & behavioural data”
Who wins… the retailer data modelBenefits for the retailer, manufacturers and customers
MANUFACTURERS•improved Marketing ROI•better NPD•effective promotions•Increased brand loyalty
RETAILERS•higher footfall•increased share of wallet•better retail offer•new service development
• promotions• better shopping trip• new meal solutions
• products I want• better prices• Relevant offers
CUSTOMERS
insight enables action that drives behaviour
customer data
enables...
Data sources•EPoS data•Credit & debit card data•Loyalty cards•3rd party data
Increased Customer Lifetime Value•Same-store sales growth•Same-store Margin growth•Market share growth
desired customer experience
to drive...
Enabling Better Business Decisions•Great Shopping Experience•Meaningful innovation•Relevant MarketingBuilding relationships with customers•Retention•Growth•Win back / prospecting
customer experience
customer insight to inform...
Basket segmentation•Basket size/value•Affluence•Shopping missions
Customer segmentations•Value & Loyalty•Lifestyles•Attitudes•Lifestage / Lifestyle
Personal data is only need in small parts of this process
So what do you have to understand?
MOTIVATIONSDescribe customers by attitudes, influence and circumstances. Based on granular behavioural data. All customers measured on each motivation.
SEGMENTATIONSDescribe customers by demographics, usage behaviour and profit. Each customer has one segment.
value of insight v value of customer contact
create new co-operative business
models
solve real problems need education
Well put together insight models…
are global for global
brands
7
value of insight v value of customer contact
creates win-win-win
allows you to build
trust through
relevance, content
and consent
clears a direct path to
the customer by dis-
intermediating
marketing agencies
Effective customer contact…
8
What is big? What is useful?
1 Terabyte Solid State Disk
Store c 1,000 transactionsfor 10,000,000 people
Or
4 transaction per second for every day of your life
Read & process the entire dataset in about 30 minutes
What do we want from it?
Patterns & Decisions
PERSONALISATION & PRIVACY ARE DIFFERENT CONSTRUCTS
Finding patterns, assortment planning, product associations, price optimisation can all be done with “anonymised” data
Claimed attributes (age, children, car ownership) are all better MODELLED than actual; you are what you do NOT what you say
Commerce is fundamentally different to government and research objectives:-
we want to understand the behaviour of groups and tribeswe are not interested in the outliers and exceptionswe are concerned with efficient process, optimising mix
we are data rich; matching data sources less of an imperative
social log-on gives access to a rich public persona of the customer
much personalisation is about what you browse and click not YOU
managing “your data” is often a customer service benefit
Personalisation can be achieved without breaching privacy; only addressable communication needs to carry this risk
When do we need private data in this process
Red & Blue Data
ETL Process
PIDsHashed
Geocodes
Red/Blue Split
Blue data is analysed
Red Data is hidden
PersonalsiedFulfilment
When needed
Predictive v Descriptive Analytics v Fact Confirmation
Credit ScoringInsurance Risk
Behavioural ScoringMotivations
Entitlement (eg Over 18)Membership
Back to “postcode” or small areas•proving very powerful for passions, like theatre going
•allows merging of multiple venues without personal disclosure•perturb the data or use “barnardisation” methods
Recognise we have Consent•develop a customer charter spelling out what you will and will not do•Always work in the common good•Example: no switch messages on repertoire
Be cool not creepy•Apply commonsense rules•Someone will always take exception.. What is the “Daily Mail” test
It’s only junk when it’s not relevant•Customers understand the common standards and expect them•Using data badly or failing to use it carries as much reputational risk as highly targeted and relevant applications
Other processes we employ
Emerging Trends
Personal Data Stores & Cloud VerificationI don’t need your DOB, just proof & photo to show you are over 18 to buy alcohol
User controlled consent & data access
Share just the facts needed to fulfil the transactioncar insurance, proof of entitlement
MONETISE MY OWN DATA.. What will you give me to share my purchase history with you?
Longer Term BenefitsI know my family has a pre-disposition to this genetic disease, I will share my data with you as an act of philanthropy / self interest
Organisations are avoiding unnecessary data
Moral Dilemma… Consumer fears Company Reputational RiskCar telematics… shows me you speed when you drive
Shopping data…you buy more than 50 units of alcohol a week
Smart Meters… you leave your lights on all the time
Mobile phone… movement, location and social circles
ISP… what and where you visit
BUT I can change any of these suppliers at any time
Government is not trusted with data; no consent process
RIPA has damaged consumer trust in government use of data
Social Media spending is expected to be 21.4% of marketing budgets in five years
Source: theCMOsurvey August 2014
Spend patterns are evolving towards digital and social
US ad spending on the internet surpassed ad spending on broadcast television for the first time last year, increasing 17 per cent in 2013 to a record $42.8bn
Source: IAB April 2014
2014 is set to be the first year that consumers spend more time with digital media than they do with traditional media
Source: eMarketer March 2014
VibeSocial DNAInsights
Defines Content
Returns Data
Social DNA
Through Fan Science we created our core product offering…
Create intelligent, curated content streams for you
customers.
Internal Insight Product
External Consumer product
Discover the communities,
influencers and content that matters
most to your customers
Conclusions
Have a clear customer charterRed / Blue split can protect against most risks, except criminalityCommercial organisations only care about tribes not individualsRelevance is the key; personalised fulfilment can be driven from anonymised
analyticsBe cool not creepy; most commercial organisation are looking at ways of not
storing personal dataBig data is not a panacea; to be useful it needs to become actionableSocial Media is rewriting the rules for getting your message to landPersonal data stores will give the consumer controlThe future for Brands is engaging with customers via their passions
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