Embracing Analytics To Boost Profits And Loyalty
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Transcript of Embracing Analytics To Boost Profits And Loyalty
Embracing Analy.cs To Boost Profits And Loyalty
Presented by Session sponsored by
#CCSeries13
About CCS 2013
ü 9 Webinars, 4 Days
ü Sessions covering Mobile,
Social, Store Ops,
X-Channel, and more
ü Featuring industry
analysts and consultants
ü Free for Retail executives
www.retailtouchpoints.com/connected-consumer-2013
#CCSeries13
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#CCSeries13 @ConnectConsumer @RTouchPoints
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About Retail TouchPoints
ü Launched in 2007
ü More than 25,000 subscribers
ü Provide executives with relevant,
insightful content
ü Free Resources such as White Papers,
E-book, Webinars, Research and
Podcasts
www.RetailTouchPoints.com
#CCSeries13
BrightTALK
#CCSeries13
Today’s Panelists
Pam Goodfellow Consumer Insights Director Prosper Insights & Analytics
Debbie Hauss Editor-in-Chief Retail TouchPoints
MODERATOR
Marc Schroeder VP, Industry Marketing Teradata
© 2013, Prosper®
Consumers’ New Normal 5 Ways to Identify Modern Shoppers
May 21, 2013
© 2013, Prosper® Disclaimer: Prosper Business Development and its affiliated companies (“Prosper”) make no warranties, either expressed or implied, concerning: data gathered or obtained from any source; the present or future methodology employed in producing the statistics; or the data and estimates represent only the opinion of Prosper and reliance thereon and use thereof shall be at the user’s own risk.
1 Confidence in the Economy is Unsteady
2 Pragmatic Purchasing Plans Continue
3 Spending at the Expense of Saving
4 Modern Shoppers Value…Well, Value
5 Looking for a Showroomer? Look in the Mirror
5 Ways to Identify Modern Shoppers
© 2013, Prosper®
Confidence in the Economy is Unsteady 1
25%
27%
29%
31%
33%
35%
37%
39%
41%
Very Confident / Confident in Chances for Strong Economy [adults 18+]
economic sentiment is volatile those very confident/confident in chances for a strong
economy climbed to 40.1% in April 2013
no consecutive months of increase since Q3 2012
evidence of fiscal cliff, payroll tax hikes, sequester taking toll on consumer psyche
Source: Monthly Consumer Survey
…yet the stock market is bullish: one out of three Americans judges the health of the U.S.
economy by the performance of the stock market
© 2013, Prosper®
U.S. Unemployment Rate / Labor Force Participation Rate
Source: U.S. Department of Labor: Bureau of Labor Statistics
Confidence in the Economy is Unsteady 1
employment
fewer counted as “unemployed” as an increasing number of consumers become discouraged / drop out of the labor force – driving this percentage down
official U.S. unemployment rate is in decline, yet the labor force participation rate is shrinking as well
0.0
2.0
4.0
6.0
8.0
10.0
12.0
61.5 62.0 62.5 63.0 63.5 64.0 64.5 65.0 65.5 66.0 66.5
Civilian Labor Force Participation Rate Civilian Unemployment Rate
Labo
r For
ce P
artic
ipat
ion
Rate
(%)
Civil
ian U
nem
ploy
men
t Rat
e (%
)
© 2013, Prosper®
2 Pragmatic Purchasing Plans Continue
In the last six months, have you made any of the following changes? [adults 18+]
30%
35%
40%
45%
50%
55%
60%
65%
Apr-0
7 Ju
l Oc
t Ja
n Ap
r-08
Jul
Oct
Jan
Apr-0
9 Ju
l Oc
t Ja
n Ap
r-10
Jul
Oct
Jan
Apr-1
1 Ju
l Oc
t Ja
n Ap
r-12
Jul
Oct
Jan
Apr-1
3
I have become more practical and realistic in my purchases
I focus more on what I NEED rather than what I WANT
3 month moving average
Source: Monthly Consumer Survey
consumer spending while practical spending and focus on needs peaked
during the recession, consumers still haven’t reverted to their old habits
as of April 2013, more than half (53.4%) still focus more on what they need rather than what I want
when at the store, while nearly as many (48.1%) cite pragmatic purchase plans
© 2013, Prosper®
3 Spending at the Expense of Saving
Real Personal Consumption Expenditures
Source: U.S. Department of Commerce: Bureau of Economic Analysis
Personal Saving Rate
8600
8800
9000
9200
9400
9600
9800
10000
Apr-0
7 Se
p-07
Fe
b-08
Ju
l-08
Dec-
08
May-
09
Oct-0
9 Ma
r-10
Aug-
10
Jan-
11
Jun-
11
Nov-
11
Apr-1
2 Se
p-12
Fe
b-13
Billio
ns o
f Cha
ined
2005
Dol
lars
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Apr-0
7 Se
p-07
Fe
b-08
Ju
l-08
Dec-
08
May-
09
Oct-0
9 Ma
r-10
Aug-
10
Jan-
11
Jun-
11
Nov-
11
Apr-1
2 Se
p-12
Fe
b-13
Perc
ent
spending / saving
how precarious is this balance for the stability/growth of our economy?
real personal consumption is increasing while 2013 personal saving rate levels have dropped to lows not seen since before the Great Recession
© 2013, Prosper®
3
90 Day Retail Outlook Score [adults 18+]
Source: Monthly Consumer Survey, Bureau of Labor Statistics, U.S. Census Bureau
future spending looking into Q2 2013, the Retail Outlook Score indicates
that the average direction of seasonally adjusted retail sales (excluding automobile dealers and gas stations)
will generally trend upward
Spending at the Expense of Saving
spending will likely be driven among upper income, luxury shoppers who generally spend on a higher level,
have a more solid financial footing, and aren’t as likely to be affected by fluctuating fuel expenses, rising food
prices, etc.
© 2013, Prosper®
Modern Shoppers Value…Well, Value
10%
14%
18%
22%
26%
30%
34%
38%
Jul-0
6 De
c-06
Ma
y-07
Oc
t-07
Mar-0
8 Au
g-08
Ja
n-09
Ju
n-09
No
v-09
Ap
r-10
Sep-
10
Feb-
11
Jul-1
1 De
c-11
Ma
y-12
Oc
t-12
Mar-1
3
Department Store Discount Store Specialty Apparel Store Linear (Department Store) Linear (Discount Store)
3 month moving average
Store Format Shopped Most Often for Women’s Apparel [adults 18+]
highlight: women’s apparel for women’s apparel, department stores have been
trending upward with shoppers, while discounters have relatively flatlined
while price is still an critical motivating factor, department store shoppers more value-driven, placing high
importance on quality, selection, brands available… as well as special sales and coupons
department store growth has largely been fueled by increasing loyalty toward Kohl’s and Macy’s – while
Walmart has been flagging
Source: Monthly Consumer Survey
4
© 2013, Prosper®
Looking for a Showroomer? Look in the Mirror
Regularly / Occasionally Use Smartphone to Comparison Shop [among those who own a smartphone]
20%
30%
40%
50%
60%
70%
80%
90%
Adults 18+ Millennials Gen X Boomers Silent showrooming showrooming isn’t just a trend, it’s a full-fledged smart
shopping strategy
while Millennials and Gen X-ers are the most likely to comparison shop via their smartphones, this activity has
jumped 50% in the past two years among members of the Silent generation
Millennials = born 1983 – 1995 Gen X = born 1965 – 1982 Boomers = born 1946 – 1964 Silent = born pre-1946 Source: Monthly Consumer Survey
5
© 2013, Prosper®
Looking for a Showroomer? Look in the Mirror
Regularly / Occasionally Use Amazon’s Price Check App While Shopping [among those who own a smartphone]
the Amazon influence as of April 2013, nearly half of Millennials regularly /
occasionally use Amazon’s Price Check app while shopping
while Boomers and Silents are the least likely to be using the Price Check app, usage may rise as an increasing
number of consumers opt for smartphones over feature phones – and adopt this smart shopping strategy
Millennials = born 1983 – 1995 Gen X = born 1965 – 1982 Boomers = born 1946 – 1964 Silent = born pre-1946 Source: Monthly Consumer Survey
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Adults 18+ Millennials Gen X Boomers Silent
5
as consumers become increasing connected, the lines between in-store, online, and mobile retailing begin to
blur
retailers focused on a seamless, omnichannel strategy will be best positioned to speak to and perhaps capture
today’s flitting consumers
© 2013, Prosper®
1 The economy remains a big question mark for consumers – with uncertainty likely leading to hesitant spending, worry about employment, and financial well-being.
2 While practical spending and focus on needs peaked during the recession, consumers are still trying to maintain guarded spending.
3 Personal consumption expenditures are increasing, perhaps at the expense of savings. Luxury shoppers are likely driving the increase in spending.
4 Department store shopping is on the rise, appealing to consumers’ value-driven needs.
5 As consumers become increasingly connected, retailers focused on a seamless, omnichannel strategy will be best positioned to speak to and perhaps capture today’s flitting consumers.
Key Takeaways
CUSTOMER CENTRICITY THROUGH DATA DRIVEN MARKETING Marc Schroeder, Teradata Applications, VP Industry Marketing
19 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility and Social Marketing • Accounts for up to 9% of Retail Sales • By 2014 Almost Every Mobile Phone will be a Smart Phone • Influences about 50% of Store Sales
Retail Trends
19
20 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility and Social Marketing • Accounts for up to 9% of Retail Sales • By 2014 Almost Every Mobile Phone will be a Smart Phone • Influences about 50% of Store Sales
Consumers Control Their Experience • Flexibility, Transparency, Relevancy and Convenience
Retail Trends
20
Direct Mail
In-Store
Mobile
SMS Offers Web
Social
21 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility and Social Marketing • Accounts for up to 9% of Retail Sales • By 2014 Almost Every Mobile Phone will be a Smart Phone • Influences about 50% of Store Sales
Consumers Control Their Experience • Flexibility, Transparency, Relevancy and Convenience
Retail Trends
21
Impacts of Showrooming • According to recent research 1/3 of customers purchase
from a competitor after researching prices online at the store
22 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility and Social Marketing • Accounts for up to 9% of Retail Sales • By 2014 almost every mobile phone will be a smart phone • Influences about 50% of Store Sales
Consumers Control Their Experience • Flexibility, Transparency, Relevancy and Convenience
Retail Trends
22
Impacts of Showrooming • According to recent research 1/3 of customers purchase
from a competitor after researching prices online at the store
Showrooming Impacts all Retail Segments
23 5/20/13 Teradata Confidential
Strategies that Retailers a putting in place to counter the act of showrooming
Is Showrooming a Threat to Retailers
• Price Matching • Not Sustainable
• Specially Featured White Labeled Products
• Product Centric vs. Customer Centric
• Products only unique for a small amount of time
24 5/20/13 Teradata Confidential
So if not price matching then what…
Retailers need to develop a multi-prong approach that focuses on customer centricity
• Use price matching sparingly
25 5/20/13 Teradata Confidential
So if not price matching then what…
Retailers need to develop a multi-prong approach that focuses on customer centricity
• Empower their Associates with Data and Offers to be Used for each Unique Customer
• Use price matching sparingly
26 5/20/13 Teradata Confidential
So if Not Price Matching Then What…
Retailers Need to Develop a Multi-prong Approach that Focuses on Customer Centricity
• Empower their Associates with Data and Offers to be Used for each Unique Customer
• Extended Warranties
• Use Price Matching Sparingly
27 5/20/13 Teradata Confidential
So if not price matching then what…
Retailers need to develop a multi-prong approach that focuses on customer centricity
• Empower their Associates with Data and Offers to be Used for each Unique Customer
• Extended Warranties • Loyalty/Reward Points
• Use price matching sparingly
28 5/20/13 Teradata Confidential
So if not price matching then what…
Retailers need to develop a multi-prong approach that focuses on customer centricity
• Empower their Associates with Data and Offers to be Used for each Unique Customer
• Extended Warranties • Loyalty/Reward Points • Enhanced Convenience/
Service
• Use price matching sparingly
29 5/20/13 Teradata Confidential
More Efficient & Effective Marketing
• Creates Relationships • Drives loyalty & satisfaction • Saves on agency costs • Lets the marketer focus on creative,
messaging, offers • Increases average purchase price • Store/product/brand recommendations
Better Customer Experience
• Channel preference/convenience • Ability to easily find Product/brand
information • Relevant & timely promotional
incentives • Highly personalized communications
delivered more frequently
Product Info Incentives Category/ Brand Interest
Customer Centricity Engagement Channels
30 5/20/13 Teradata Confidential
Marketers Face Big Challenges: • Leveraging Data Across the Organization
• 37.5% of retail marketers agree that silos within Marketing prevent them from having a holistic view of a campaign across channels
• Integrating the Digital and Physical Worlds • Only 25% of retailers create a single view of all customer
actions (purchases, call center interactions, web history, etc.)
• Optimizing the Customer Experience • Only 22.5% of retailers routinely use Data Driven
Marketing strategies to customize marketing messages and offers to improve customer experience
• Analyzing marketing Initiative Effectiveness Across Channels
• 58% of retailers claim the top obstacle preventing retail marketing organizations from applying data to make more informed decisions is their existing technology is inadequate, outdated
Retail Marketers are Faced with Challenges in Delivering a Customer Centric Experience
31 5/20/13 Teradata Confidential
Customers Customer Interaction Management
Marketing Analytics
Marketing Operations
Marketing Operations
Customer Engagement
Real-time Interactions
Key Questions from Retail Marketers
What customers
match certain social
behavior?
What message should I send
next?
Where is the customer
engaging with me?
What has the customer purchased?
How do I attribute value
to the channels?
What have I learned about my customers?
How should I respond to the
customer?
Where should I spend my marketing
dollars?
32 5/20/13 Teradata Confidential
Data Driven Marketing Drives Customer Centricity
• Analyze Customer Interactions • Discover Customer Behaviors • Visualize Social Relationships
• Deliver Relevant, Targeted Messages • Track Customer Response • Ensure Governance and Compliance
• Connect Data Across the Enterprise • Understand Customer Behavior • Deliver Self-Service Analytics in Minutes
• Optimize Spend Across Channels • Enable the Next Best Action • Streamline Campaign Execution
33 5/20/13 Teradata Confidential
Key Marketing Business Challenges
• Need to drive consistent messages across multiple channels
• Want to adjust marketing spend based on performance
• Need to gain insight to understand the right message to
communicate
Engage the Customer with Relevant Messages
• Desire to evaluate past behaviors to understand how to best engage
the customer
• Need to empower marketers to engage customers with relevant data
• Want to make social connections and understand the relationships
Gain Meaningful Customer Insights
Develop a Full Perspective of the Customer
• Desire to leverage all enterprise data to drive decisions
• Need to make decisions based on data; not gut feel
• Want to have a complete view of the customer, regardless of
channel used
Integrate & Understand
Analyze & Discover
Act & Optimize
34 5/20/13 Teradata Confidential
Integrate & Understand Customer Success
• To grow, DSW knew it needed to increase it rewards program members, who tend to purchase more
• Needed information from all channels to build right incentive to drive behavior
• Data infrastructure was unable to connect customer experience from both in store and online
• Teradata Integrated Data Warehouse allows capture of customer input from all channels
• Robust system can quickly scale to support the 18 million DSW Rewards program members
• Front-line employees are now using data to differentiate DSW from the competition
DSW has:
• Increased loyalty program customers
• Increased average market basket size
• Delivered more targeted marketing, driving customers to appropriate channel
• Climbed to the number 2 spot in market share
DSW is a leading US shoe retailer, with goal of being America’s favorite place for shoes. Connecting with customers is how DSW propelled itself into the number 2 position in market share.
Challenge Solution Results
35 5/20/13 Teradata Confidential
Analyze & Discover Customer Success
• Preserve a loyal base while building the eBook business
• Create a multi-channel
behavioral view to drive segmentation & targeting strategies as well as marketing spend
• Incorporate data from digital devices like the Nook, website, contact center, in-store kiosks & in-store point of sales.
• Behavioral Analysis of Paths to Purchase: Teradata Aster MapReduce Platform joins customer data and analyzes multi-channel paths to purchase
• Organic & Planned
Touch Marketing Attribution: Goes beyond single-touch insight to provide guidance to marketers
“The multi-channel, multi-touch marketing optimization insights that the Teradata Aster platform provides have been critical to transforming our company.” - Mark Parrish VP of Retention and Loyalty. • Reduce churn: analytics
from 5-6 hours previously to now 20 minutes
• Increase conversions from recommendations
Barnes and Noble was a leading retailer of physical books, video, music and more. Over the past few years, Barnes and Noble has shifted from a physical seller of books to a digital technology company with eReaders with the Teradata Aster MapReduce Platform
Challenge Solution Results
36 5/20/13 Teradata Confidential
Act & Optimize Customer Success
• Needed a solution to assist in the kick-off of their Customer Centric Marketing program
• Wanted to re-launch the Buzz Club Rewards customer loyalty program in all of Big Lots’ stores
• Required an integrated marketing solution to carry these out
Challenge Solution Results
Due to instrumental new and revised marketing initiatives, Big Lots was in need of a technology refresh to help them succeed in bringing these programs and plans to fruition while ensuring their effectiveness.
• Using Teradata Campaign Management Big Lots segmented customers better to allow for better messages and offers
• Using Email Marketing, Big Lots created more personalized e-dialogues for more effective communications
• Using Campaign Management, Big Lots collected, maintained, evaluated and analyzed buying patterns of customers
• Reduced costs by phasing out preprint distribution
• Realized revenue lift from existing customers
• Increased average market basket size
• Performed RFM analysis to determine how recently a customer has purchased, how often they purchase and how much the customer spends
• Retained members of the Buzz Club Rewards program
37 5/20/13 Teradata Confidential
Technology-Enabled Customer Centricity
Workflow & Rules
Plan & Spend
Assets & Offers
Source Data
Product/ SKU
Inventory
Sales/ POS/
Franchise
Supplier
Promotional/ Loyalty Data
Strategic Insight and Marketing Processes
Seamless Customer Engagement / Experience
Call Center
ATM/ Kiosk
Mobile
Channels Customers
Sales
Customers
Partners
Social Media
Web
Digital Marketing
Acquisition/ Loyalty
Campaign
Customer 360 Data
Warehouse
Mining Modeling
Reporting Trending
Profiling Segmenting
Big Data
Customer-centric Data Management
Assets Multi-Channel Real Time Marketing Management
Marketing Operations
Marketing Analytics
38 5/20/13 Teradata Confidential
Real-Time Decisions Experiment & Iterate
• Social Graph • Multivariate testing
• Segmentation
Behaviors • Path to Purchase
• Attribution • Sentiment Analysis
Results • Spend • Wins • ROI
All Your Analysis
Digital Execution • E-mail
• SMS/RSS • Blogs
• Social Marketing • Personalization • Landing Pages
• Multi-channel Campaigns
Marketing Management • Planning
• Dashboards • Workflow
All Your Interactions Cloud • Web • Mobile • Social • eCommerce • Search • Mobile • Ad Placements • Tags • Visitor Clickstream
Applications • POS • Care • OSS/BSS
Digital Data Management • Weblog Analysis & ETL • Web Intelligence Data Model • Workload
All Your Data
38
Tools to Optimize Performance
39 5/20/13 Teradata Confidential
• Integrate and Understand your Customers > Pull data across your organization (offline, online, inventory/
warehouse, social, call center) into a single platform to create a comprehensive view of your customer and your operations
• Analyze and Discover > Enable big data analytics to understand what is driving customer
behavior like path to purchase, or causes for abandoning the online basket as well as what and who influences your customer purchasing behavior
• Act and Optimize > Leverage the insights and analytics, empower customer touch
points including your in-store personnel with the information and ability to deliver relevant and specific offers to each consumer
In Summary the Key to Customer Centricity
40 5/20/13 Teradata Confidential
THANK YOU
#CCSeries13
Q&A
#CCSeries13
Q&A // Panelists
Pam Goodfellow Consumer Insights Director Prosper Insights & Analytics
Debbie Hauss Editor-in-Chief Retail TouchPoints
MODERATOR
Marc Schroeder VP, Industry Marketing Teradata
#CCSeries13
Leveraging The Power Of Data Today, 2 PM ET / 11 AM PT
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www.retailtouchpoints.com/connected-consumer-2013
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