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A Roadmap To Retail Personaliza3on

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How To Align Marke=ng Strategy and Execu=on

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About Retail TouchPoints

ü  Launched in 2007

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Panelists

Debbie Hauss Editor-in-Chief

Retail TouchPoints

MODERATOR

Hillary Ashton VP of Customer Analytics

Manthan Systems

Why Personalize?

86% of consumers — and 96% of retailers — said personalization has at least some impact on the

purchasing decision (Infosys)

The Line Between Personal And Creepy

93% of shoppers are willing to share personal information to receive customized offers. BUT they’re not willing to share everything: 78% are ok with sharing their email address;

64% zip code; 38% birth date and 38% postal address.

Using Personalization To Beat Amazon

Innovation through personalization is key to gaining an edge in today’s competitive marketplace.

Bottom line: at least 31% of consumers want more personalization in their shopping experiences.

Challenge: Personalize Across Channels

40% of consumers buy more from retailers that personalize across all channels (the e-tailing group)

A Roadmap to Retail Personalization

Hillary Ashton

VP Customer Analytics, Manthan

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Today’s retail pressures

Give me what I want, when I want it, how I want it.

And it better be at a good price.

I’ll engage with you in a race to the bottom. I know I can win.

Profits, profits, profits! Do more with less.

CUSTOMER

COMPETITION

ORGANIZATION

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.

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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.

What is retail personalization?

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KNOW YOUR CUSTOMER

UNDERSTAND THE CONTEXT

DELIVER SOMETHING OF VALUE

TEST + REPEAT

REMINDER: BRAND CONSISTENCY IS ALSO A CRITICAL COMPONENT

For better or worse: a personalization matrix

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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 didn’t have

•  Office Max blames data broker for ‘car accident’ letter

Spot On Missed the Mark

Why is it so challenging?

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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.

Before you get started …

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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?

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 © Copyrights 2014 | Manthan Systems

Analytics and personalization in action Jo

se

• Buys beer & prepackaged meals • Shops lower priced items pays full price • At risk for churn • “Entertainer” segment

Sar

ah

• Shops perimeter • Low frequency, shops 2

times per month •  “Convenience” segment H

olly

• Buys wide range of categories

• Lower than average market basket size

•  “Secondary Shopper” segment


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


Sar

ah



olly











•  15% of customers are low frequency

•  1m customers total •  Average spend is

$35 per trip •  Improve frequency

5% •  $2.5m increased

revenue annual

Jose


Sar

ah



olly




Campaign to increase frequency








•  15% of customers are low frequency


$35 per trip •  Improve frequency

5% •  $2.5m increased

revenue annual

Campaign to increase monetary

•  10% of customers have lower market basket size


$20 •  Improve spend by

20% •  $7m increased

annual revenue

Jose


Sar

ah



olly




Campaign to increase frequency

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

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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

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Know your Customer… Establish a Dialogue

Optimize buying, selling, pricing, assortments, placement

DATA & PROCESS

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Analytics Platform for Data Insights, Monetization and Collaboration

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Chief Analytics Officer for 120 businesses

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www.manthansystems.com/ca [email protected]

Questions?

#RetailRoadMap

Q & A // Panelists

Debbie Hauss Editor-in-Chief

Retail TouchPoints

MODERATOR

Hillary Ashton VP of Customer Analytics

Manthan Systems

#RetailRoadMap

Thanks For Joining Us!

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