A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution

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A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution sponsored by Manthan Systems #RetailRoadMap

Transcript of A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution

  • 1.ARoadmapToRetail Personaliza3on #RetailRoadMap SPONSOREDBY HowToAlignMarke=ngStrategyandExecu=on

2. #RetailRoadMap Typeques3onhere WelcomeWebinarAEendees 3. #RetailRoadMap FollowThisWebinarOnTwiEer #RetailRoadMap 4. #RetailRoadMap AboutRetailTouchPoints Launchedin2007 Over28,000subscribers Toprovideexecu=veswith relevant,insighPulcontent acrossavarietyofdigital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SUBSCRIBE 5. #RetailRoadMap Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Hillary Ashton VP of Customer Analytics Manthan Systems 6. Why Personalize? 86% of consumers and 96% of retailers said personalization has at least some impact on the purchasing decision (Infosys) 7. The Line Between Personal And Creepy 93% of shoppers are willing to share personal information to receive customized offers. BUT theyre not willing to share everything: 78% are ok with sharing their email address; 64% zip code; 38% birth date and 38% postal address. 8. Using Personalization To Beat Amazon Innovation through personalization is key to gaining an edge in todays competitive marketplace. Bottom line: at least 31% of consumers want more personalization in their shopping experiences. 9. Challenge: Personalize Across Channels 40% of consumers buy more from retailers that personalize across all channels (the e-tailing group) 10. A Roadmap to Retail Personalization Hillary Ashton VP Customer Analytics, Manthan 10 11. Todays retail pressures Give me what I want, when I want it, how I want it. And it better be at a good price. Ill engage with you in a race to the bottom. I know I can win. Profits, profits, profits! Do more with less. CUSTOMER COMPETITION ORGANIZATION 12. The experts weigh in The key is segmenting to closely target the demographics making up your future shopper base. By looking at segments on a micro level, you can get to know shoppers on a store-by-store basis and figure out which features you want to prioritize in which locations. Get to know who is in your store aisles and what they want today to shape how you personalize their experiences in the future. PricewaterhouseCoopers LLP Front of the Line report. Retailers now recognize that price and/or product are not enough to differentiate their brand, they need to focus on the customer experience to win. RSR, Retail Marketing 2013: Organizational Drift report. [Retailers] are viewing their shoppers behaviors broadly: They look at things like spending and purchasing habits, basket composition, purchase timing and frequency, wallet share, marketing effectiveness, and branding impact. Envision your future shoppers by understanding the most minute changes in areas like these, and use that knowledge to model and anticipate future behaviors. PricewaterhouseCoopers LLP 2014 report. 13. 13 Your consumers are ready and waiting Nearly half of consumers are happy to provide retailers with their personal information as long as it results in a truly personalized offering; and more than 60% would increase their purchases if they were offered a personalized subscription program. Accenture. November 2013 Survey of 15,000 consumers across 20 countries. As many as 59% of shoppers who have experienced personalization believed it had a noticeable influence on their buying behaviors. Retail Touchpoints. Consistency, Personalization Valued Most Among Consumers. 14. What is retail personalization? 14 KNOW YOUR CUSTOMER UNDERSTAND THE CONTEXT DELIVER SOMETHING OF VALUE TEST + REPEAT REMINDER: BRAND CONSISTENCY IS ALSO A CRITICAL COMPONENT 15. For better or worse: a personalization matrix 15 Warm Fuzzies So Creepy The Headlines 6 things online retailers can learn from Amazon How Target figured out a teen girl was pregnant before her father did Shutterfly congratulates thousands of women for babies they didnt have Office Max blames data broker for car accident letter Spot OnMissed the Mark 16. Why is it so challenging? 16 While consumers have expressed growing interest in receiving personalized offers, only 8% of retailers rate themselves as being effective at personalization. Gartner. Predicts 2014: Digitalization in Retail report. Over 63% of marketers express a need for better data and better marketing platforms to achieve effective personalization. Neustar. 2014 survey. DATA must be accurate, timely and relevant. must incorporate multiple sources (e.g., channel). SYSTEMS must support the complete personalization lifecycle. must consider CRM, loyalty, analytics, campaign management, real time offers. EXECUTION must be flawless and aligned with brand. 17. Before you get started 17 Create your strategic roadmap. What is the business problem? What is the revenue impact if I solve this problem? What is a reasonable time-to- value? 18. Roadmap for Customer Analytics 360 Degree View of Customer Single customer-centric view of customer including purchase data, demographic data, preference, contact information and loyalty card data. Predictive Customer Analytics Define and understand customer segments Predict what customers will do next including churn risk. Understand customer recency, frequency and monetary behavior and other key attributes of individual customers. Integrated Omnichannel Communication Select targeted offers for customers based on customer attributes and predictive analytics. Manage customer communications across channels in an integrated and automated manner. Personalized Customer Offers Recommendation engine that evaluates market basket and cohort purchase behavior that identifies other products that are appropriate for an individual customer. CLOSED LOOP FEEDBACK PROCESS 19. 19 Copyrights 2014 | Manthan Systems Analytics and personalization in action Jose Buys beer & prepackaged meals Shops lower priced items pays full price At risk for churn Entertainer segment Sarah Shops perimeter Low frequency, shops 2 times per month Convenience segment Holly Buys wide range of categories Lower than average market basket size Secondary Shopper segment 20. 20 Copyrights 2014 | Manthan Systems Analytics and personalization in action Churn prevention campaign 20% churn rate 1m customers total Average annual spend of 3k per year per customer Decrease churn by 5% $30m in saved revenue Jose Buys beer & prepackaged meals Shops lower priced items pays full price At risk for churn Entertainer segment Sarah Shops perimeter Low frequency, shops 2 times per month Convenience segment Holly Buys wide range of categories Lower than average market basket size Secondary Shopper segment 21. 21 Copyrights 2014 | Manthan Systems Analytics and personalization in action Churn prevention campaign 20% churn rate 1m customers total Average annual spend of 3k per year per customer Decrease churn by 5% $30m in saved revenue 15% of customers are low frequency 1m customers total Average spend is $35 per trip Improve frequency 5% $2.5m increased revenue annual Jose Buys beer & prepackaged meals Shops lower priced items pays full price At risk for churn Entertainer segment Sarah Shops perimeter Low frequency, shops 2 times per month Convenience segment Holly Buys wide range of categories Lower than average market basket size Secondary Shopper segment Campaign to increase frequency 22. 22 Copyrights 2014 | Manthan Systems Analytics and personalization in action Churn prevention campaign 20% churn rate 1m customers total Average annual spend of 3k per year per customer Decrease churn by 5% $30m in saved revenue 15% of customers are low frequency 1m customers total Average spend is $35 per trip Improve frequency 5% $2.5m increased revenue annual Campaign to increase monetary 10% of customers have lower market basket size 1m customers total Average spend is $20 Improve spend by 20% $7m increased annual revenue Jose Buys beer & prepackaged meals Shops lower priced items pays full price At risk for churn Entertainer segment Sarah Shops perimeter Low frequency, shops 2 times per month Convenience segment Holly Buys wide range of categories Lower than average market basket size Secondary Shopper segment Campaign to increase frequency 23. Churn reduction: 20% Sales lift: 8% Case Study: Retailer adopts Manthan solution: Single view of the customer Behavioral segmentation Customer behavior understanding Customer churn prediction Affinity-based promotions execution Best-in-class marketing reporting Succeeding with personalization YOUR Store 24. Global leader in retail analytics Vision Be the Chief Analytics Officer for the top companies in the retail & CPG industry Method We bring fundamental change in the way analytics are bought, used, applied, and benefitted from CUSTOMER ANALYTICSMERCHANDISE ANALYTICS Store Ops Finance eCommerce Analytics Know your Customer Establish a Dialogue Optimize buying, selling, pricing, assortments, placement DATA & PROCESS COLLABORATION PLATFORM & ANALYTICS Analytics Platform for Data Insights, Monetization and Collaboration TargetOne Loyalty247 Customer360 Vendor Insights Vendor LinkFuel Analyzer Chief Analytics Officer for 120 businesses 25. 25 www.manthansystems.com/ca hillary.a@manthansystems.com Questions? 26. #RetailRoadMap Q&A//Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Hillary Ashton VP of Customer Analytics Manthan Systems 27. #RetailRoadMap ThanksForJoiningUs! h8p://rtou.ch/retail-personaliza3on Viewthispresenta=onon-demandat: