Chill Out About FSMA - It's Complex, but it's Not Rocket Science
It's Digital, but is it Personal?
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Transcript of It's Digital, but is it Personal?
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© dunnhumbyUSA 2013 | confidential
It’s digital, but is it personal?
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© dunnhumbyUSA 2013 | confidential
dunnhumby’s context
24 years
28 countries
1,000s of clients
400,000,000 customers
All media channels
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© dunnhumbyUSA 2013 | confidential
Customer = CMO
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© dunnhumbyUSA 2013 | confidential
Earn It
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© dunnhumbyUSA 2013 | confidential
Three Prizes
1.Current sales
2.Potential sales
3.Advocacy
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© dunnhumbyUSA 2013 | confidential
Household Response Rates
20.0%
22.7% 22.7%21.5%
27.2%28.7%
33.3%35.7%
42.1%
49.0%
64.2%63.1%62.7%
59.6%58.4%
55.6%56.2%
52.6%52.6%49.5%
49.2%
18.4%17.0%16.0%15.0%
16.0%18.0%
0501 0502 0503 0504 0601 0602 0603 0604 0701 0702 0703 0704 0801 0802 0803 0804 0901 0902 0903 0904 1001 1002 1003 1004 1101 1102 1103*
Relevance wins
Campaign events
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© dunnhumbyUSA 2013 | confidential
Source: The Times 19 Jan 05
Or …
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© dunnhumbyUSA 2013 | confidential
Digital Danger
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© dunnhumbyUSA 2013 | confidential
“Last year, the nation's top 100 retailers by e-commerce
revenue sent recipients an average of 177 emails
apiece, up 87% from 2007.”
Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
[and up 24% vs. last year]
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© dunnhumbyUSA 2013 | confidential
“More than 500 emails apiece”
Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
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© dunnhumbyUSA 2013 | confidential
Deleted, Detested, Delisted
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© dunnhumbyUSA 2013 | confidentialSource: WSJ / Harte Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
Customer Reaction to Retailers’ Emails
National average1st half 2007
1st half 2011
% Chg.
Email open rate 19.0% 12.5% -34%
Click through rate 3.9% 2.8% -28%
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© dunnhumbyUSA 2013 | confidential
49% of unsubscribers from permission emails: Content was repetitive or boring over time1
22% of US Internet users stopped buying from a company:
too many or irrelevant emails2
1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions
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© dunnhumbyUSA 2013 | confidential
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It doesn’t have to be that way
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© dunnhumbyUSA 2013 | confidential
If your digital marketing is relevant, more contact can improve perceptions
15
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© dunnhumbyUSA 2013 | confidential
Unaware, Unconcerned,
Unable
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© dunnhumbyUSA 2013 | confidential
What are “they” doing wrong,
and why?
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© dunnhumbyUSA 2013 | confidential
Big data
Small thinking
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© dunnhumbyUSA 2013 | confidential
Wrong data and insights
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© dunnhumbyUSA 2013 | confidential
Personalization ≠ Algorithms
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© dunnhumbyUSA 2013 | confidential
Inputs, not outcomes
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© dunnhumbyUSA 2013 | confidential
Wrong Rewards
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© dunnhumbyUSA 2013 | confidential
Exactly right for each shopper all
the time
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© dunnhumbyUSA 2013 | confidential
1. Culture: Shoppers’ lifetime value
2. Shopper first – not brand, not store
3. Leverage shopping, media, context insights
4. Content that delights and excites
5. Media that reaches and engages
6. Measure incremental sales and advocacy
Here’s what we’ve learned about making digital personal
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© dunnhumbyUSA 2013 | confidential
Making digital personal
1.Brand CRM program
2.Display advertising
3.Advocacy and user content
4.Integrated loyalty approach
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© dunnhumbyUSA 2013 | confidential
Brand CRM programs: From good to great
26
Lagging approaches to targeting, activation, and
evaluation
Leading approaches to targeting, activation, and
evaluation
• Demographics and claimed behavior
• Purchase behavior, plus additional contextual data
• Responsiveness to standard offers
• Responsiveness to all media stimuli and personalized offers
• Redemption behavior • Sales uplift
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© dunnhumbyUSA 2013 | confidential
A better approach yields better results: Multi-brand CPG CRM multi-cell test
27
Lagging approach Leading approach
+8% sales uplift vs. control
+112% sales uplift vs. control
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© dunnhumbyUSA 2013 | confidential
We know display advertising can
build sales
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© dunnhumbyUSA 2013 | confidential
On line advertising is more consistent in driving off line sales than TV
TV (IRI)
Internet(comScore)
36% 80%
% of campaigns with a statistically significant off-line sales lift
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© dunnhumbyUSA 2013 | confidential
On-line display advertising: Purchase-based targeting makes it more effective
● Yogurt brand– Campaign results including all targets +1.9% uplift
– Only purchase-based targets (38% of original) +5.0% uplift
– Improvement from better targeting +163%
● Toothpaste brand– Campaign results including all targets +2.4% uplift
– Only purchase-based targets (47% of original) +5.3% uplift
– Improvement from better targeting +123%
● Soft Drink brand– Campaign results including all targets +8.8% uplift
– Only purchase-based targets (47% of original) +11.3% uplift
– Improvement from better targeting +28%
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© dunnhumbyUSA 2013 | confidential
Next generation advocacy
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© dunnhumbyUSA 2013 | confidential
The new Word of Mouth approach links shopping insights to targeting, evaluation
Case Study: Supporting a new product launch
Targeted BzzAgents • Based on categories, brands, and products of interest
Strong Agent engagement
• Based on relevance of the sampled product
High volume reach • Reached over 1,000,000 people, at 228 network contacts per Agent
Measurable sales impact
• 18% increase in dollar sales vs. control• $14:1 sales-to-cost ratio
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© dunnhumbyUSA 2013 | confidential
Targeted Word of Mouth also delivers new learning and user generated content
Unilever Insights from Shopper Marketing
Lowered soup salt content Changed deodorant fragrance
Changed language from “baking bags” to “cooking bags”
Pulse Dashboard • Social media monitoring technology • Integrates social and purchase data
Tracks activation • Samples to BzzAgents; Agent and network reactions
Content rich • Unrestricted access to tweets, posts, photos, reviews, and recommendations shared by agents
Benefits • Learn how consumers actually use your products• Verbatims for use in future marketing• Learn what they like / don’t
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© dunnhumbyUSA 2013 | confidential
Integrated loyalty approach
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© dunnhumbyUSA 2013 | confidential
Insight: Even Raley’s best customers spend only ~60% of their eligible dollar at Raley’s
35
What we earn now from our
existing customers
Spend with competitors for
items we sell
+ =
Our customers’ total grocery spend
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© dunnhumbyUSA 2013 | confidential
●Launched Something Extra, Fall ‘12
– A personalized Rewards voucher every 3 months that can be redeemed in store
– Personalized Offers based on purchase behavior
– Earn Extra Points every time they shop
– Inspired Ideas and Extra Surprises
Raley’s knew that a loyalty approach, not just a loyalty program, was required
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© dunnhumbyUSA 2013 | confidential
Combines loyalty and advocacy to deliver on the promise of ‘Something Extra’
37
Increase LOYALTY of Raley’s Best Customers
Cultivate ADVOCACY for Raley’s and their CPG partners, both online and offline
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38
February email
Distribution and Participation Metrics
Participation rates for monthly Best Customer Communications are around 50%
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© dunnhumbyUSA 2013 | confidential
Something Extras Try-it combines shopper data with WoM to drive sales, engagement
Increase LOYALTY of Raley’s Best Customers
Cultivate ADVOCACY for Raley’s and CPG partners, both online
and offline
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© dunnhumbyUSA 2013 | confidential
A primarily digital experience allows content to be easily shared, online and offline
4040
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© dunnhumbyUSA 2013 | confidential
Try-it Screenshot – ‘My Score’ Page
The platform is built to weed out people who just want free stuff
41
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A modest number of advocates amplifies the message, engaging a large community
42
Screenshot from the Try-it ‘Pulse’ Measurement Portal
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© dunnhumbyUSA 2013 | confidential
1. Culture: Shoppers’ lifetime value
2. Shopper first – not brand, not store
3. Leverage shopping, media, context insights
4. Content that delights and excites
5. Media that reaches and engages
6. Measure incremental sales and advocacy
Making Digital Personal