© dunnhumby 2013 | confidential
Achieving Personalization at Scale:
It’s Time to Expect More from CRM
© dunnhumbyUSA 2013 | confidential
● Where are we as an industry?
● Why is Relationship Marketing so important?
● What are...
© dunnhumbyUSA 2013 | confidential
3
© dunnhumbyUSA 2013 | confidential
4
$481.6 $503.0 $517.0
$542.5
$566.4
$592.5
$616.7
2011 2012 2013 2014 2015 2016 2017
S...
© dunnhumbyUSA 2013 | confidential
5
Clutter is not limited to media
© dunnhumbyUSA 2013 | confidential
6
…and pull
Effective strategies require both push…
© dunnhumbyUSA 2013 | confidential
7
Source: Adobe, North American Technographics Online Benchmark Survey (Part 1), Q2 201...
© dunnhumbyUSA 2013 | confidential
8
…doesn’t mean we want you
texting us
Source: Adobe, North American Technographics Onl...
© dunnhumbyUSA 2013 | confidential
9
It’s time to try a new path…
© dunnhumbyUSA 2013 | confidential
Enter the reign of relationship marketing
10
© dunnhumbyUSA 2013 | confidential
5 Fundamentals for effective relationship marketing
11
1. Respect the power of the opt-...
© dunnhumbyUSA 2013 | confidential
Respect the power of the opt-in
12
1
© dunnhumbyUSA 2013 | confidential
13
Who’s personal inbox
doesn’t look like this?
We are all bombarded by…
1. Grocers
2. ...
© dunnhumbyUSA 2013 | confidential
Personalization is a necessity
14
HOW I SHOP
WHERE I AM
WHAT I BUY WHAT I
SEE/HEAR
WHO ...
© dunnhumbyUSA 2013 | confidential
Customers should be at the center of all decisions
15
Content
Channel
Cadence
Currency
© dunnhumbyUSA 2013 | confidential
You need to invest in your best consumers
16
80
101
107 108
114
102
Under
$35K
$35-49K ...
© dunnhumbyUSA 2013 | confidential
Love the ones you’re with
17
=
3
© dunnhumbyUSA 2013 | confidential
18
CRM members are
36%
less likely
to leave your brand
year on year
Source: 2013, aggre...
© dunnhumbyUSA 2013 | confidential
19
visit 5%
Source: 2013, aggregated results from 10 studies conducted on CPG programs ...
© dunnhumbyUSA 2013 | confidential
CRM should be used to increase loyalty,
not drive brand penetration
20
318%
1%
15%
17%
...
© dunnhumbyUSA 2013 | confidential
The real value of data lies in how you use it
21
Quality of your data fuels
the persona...
© dunnhumbyUSA 2013 | confidential
Use the data you have
Purchase behavior can
be leveraged to create
meaningful consumer
...
© dunnhumbyUSA 2013 | confidential
Segmented approaches provide early wins
23
CRM DATA PURCHASE DATA OPPORTUNITIES
Coupon ...
© dunnhumbyUSA 2013 | confidential
24
CRM should influence marketing decisions across
the path to purchase
• Robust view o...
© dunnhumbyUSA 2013 | confidential
25
When done correctly, it works
Relevance & Value
Engagement
Data
Sales
Loyalty
5
© dunnhumbyUSA 2013 | confidential
26
CONSUMER RESPONSE TO
RELEVANT TARGETING
BRAND BUYING
BEHAVIORAL
SEGMENTATIONLIFESTYL...
© dunnhumbyUSA 2013 | confidential
27
Do you currently engage directly with your best consumers?
What behavior are you col...
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Achieving Personalization at Scale

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Presentation by dunnhumby's Barbara Connors at the 2013 Shopper Insights in Action conference.

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Achieving Personalization at Scale

  1. 1. © dunnhumby 2013 | confidential Achieving Personalization at Scale: It’s Time to Expect More from CRM
  2. 2. © dunnhumbyUSA 2013 | confidential ● Where are we as an industry? ● Why is Relationship Marketing so important? ● What are the fundamentals for effective and customer-first Relationship Marketing? 2 Achieving Personalization at Scale It’s Time to Expect More from CRM When done well, customer-first Relationship Marketing creates a dialogue with your best customers, delivers revenue, and informs your total marketing mix
  3. 3. © dunnhumbyUSA 2013 | confidential 3
  4. 4. © dunnhumbyUSA 2013 | confidential 4 $481.6 $503.0 $517.0 $542.5 $566.4 $592.5 $616.7 2011 2012 2013 2014 2015 2016 2017 Source: eMarketer, June 2013 Total Media Ad Spending Worldwide (Billions), 2011-2017 Includes: digital (online & mobile), directories, magazines, newspapers, outdoor, radio and TV Yet, media is not a zero sum game
  5. 5. © dunnhumbyUSA 2013 | confidential 5 Clutter is not limited to media
  6. 6. © dunnhumbyUSA 2013 | confidential 6 …and pull Effective strategies require both push…
  7. 7. © dunnhumbyUSA 2013 | confidential 7 Source: Adobe, North American Technographics Online Benchmark Survey (Part 1), Q2 2012 9% 10% 12% 15% 18% 27% 32% 43% 46% 55% 70% Text messages from companies or brands Ads on websites Info on mobile applications from companies… Posts by companies or brands on social media Emails from companies or brands Sponsored search engine results Info on websites of companies or brands Natural search engine results Consumer-written online review Professionally written online reviews Brand or product reco's from friends and family “To what extent do you trust each of the following types of advertising/ promotion?” Just because we trust friends …doesn’t mean we want you in our Facebook feed
  8. 8. © dunnhumbyUSA 2013 | confidential 8 …doesn’t mean we want you texting us Source: Adobe, North American Technographics Online Benchmark Survey (Part 1), Q2 2012 9% 10% 12% 15% 18% 27% 32% 43% 46% 55% 70% Text messages from companies or brands Ads on websites Info on mobile applications from companies… Posts by companies or brands on social media Emails from companies or brands Sponsored search engine results Info on websites of companies or brands Natural search engine results Consumer-written online review Professionally written online reviews Brand or product reco's from friends and family Just because we like our phones “To what extent do you trust each of the following types of advertising/ promotion?”
  9. 9. © dunnhumbyUSA 2013 | confidential 9 It’s time to try a new path…
  10. 10. © dunnhumbyUSA 2013 | confidential Enter the reign of relationship marketing 10
  11. 11. © dunnhumbyUSA 2013 | confidential 5 Fundamentals for effective relationship marketing 11 1. Respect the power of the opt-in 2. Personalization is a necessity 3. Love the ones you’re with 4. The real value of data lies in how you use it 5. When done correctly, it works
  12. 12. © dunnhumbyUSA 2013 | confidential Respect the power of the opt-in 12 1
  13. 13. © dunnhumbyUSA 2013 | confidential 13 Who’s personal inbox doesn’t look like this? We are all bombarded by… 1. Grocers 2. National retailers 3. Specialty retailers 4. Local retailers 5. Travel sites 6. Service providers 7. Financial services 8. Entertainment 9. Magazines 10. News articles 11. Google alerts 12. Bill collectors 13. Social media sites 14. Personal emails 15. etc… 16. etc… If you are not relevant you might be ignored, or permanently removed
  14. 14. © dunnhumbyUSA 2013 | confidential Personalization is a necessity 14 HOW I SHOP WHERE I AM WHAT I BUY WHAT I SEE/HEAR WHO I KNOW/ INFLUENCES (MY SOCIAL NETWORK) HOW I DECIDE WHO I AM WHAT I LIKE MY NEEDS/ PREFERENCES MEDIASHOPPING MOTIVATIONS 2
  15. 15. © dunnhumbyUSA 2013 | confidential Customers should be at the center of all decisions 15 Content Channel Cadence Currency
  16. 16. © dunnhumbyUSA 2013 | confidential You need to invest in your best consumers 16 80 101 107 108 114 102 Under $35K $35-49K $50-74K $75-99K $100-149K $150K CRM members are 19% more likely to be Very Price Sensitive and yet tend to be more affluent Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US and 70% more likely to buy your brand with a coupon Personalized promotions are a key way to deliver relevance and value
  17. 17. © dunnhumbyUSA 2013 | confidential Love the ones you’re with 17 = 3
  18. 18. © dunnhumbyUSA 2013 | confidential 18 CRM members are 36% less likely to leave your brand year on year Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US
  19. 19. © dunnhumbyUSA 2013 | confidential 19 visit 5% Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US than even the rest of your retained shopper base Those who stay… more often and spend 14% more
  20. 20. © dunnhumbyUSA 2013 | confidential CRM should be used to increase loyalty, not drive brand penetration 20 318% 1% 15% 17% 49% 60% Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US average average average Increase in CRM consumer purchase behavior metrics vs. typical brand buyer across multiple programs half of CRM programs penetration visits spend
  21. 21. © dunnhumbyUSA 2013 | confidential The real value of data lies in how you use it 21 Quality of your data fuels the personalization engine CRM serves little value if it’s kept in a box 4
  22. 22. © dunnhumbyUSA 2013 | confidential Use the data you have Purchase behavior can be leveraged to create meaningful consumer segments to drive personalized content By merging your CRM data with actual purchase data, segmentations can be applied to all CRM members Personalization does not have to begin with 1:1
  23. 23. © dunnhumbyUSA 2013 | confidential Segmented approaches provide early wins 23 CRM DATA PURCHASE DATA OPPORTUNITIES Coupon engagement Brand and category purchase dynamics CUSTOMIZE OFFERS TO REDUCE SUBSIDY AND DRIVE GROWTH Web visits and behavior over time Longitudinal category share and competitive switching TRIGGER DEFENSIVE COMMUNICATIONS AT THE RIGHT TIME TO PREVENT SWITCHING Recipe engagement Total food and beverage behavior TAILOR BRAND AND TONE TO INCREASE CONVERSION Web and social media behavior New product early adoption TEST AND PROMOTE NEW ITEMS WITH THE RIGHT CONSUMERS Age and family life- stage Category migration behavior GUIDE CONSUMERS THROUGH YOUR PORTFOLIO AT THE RIGHT TIME + +
  24. 24. © dunnhumbyUSA 2013 | confidential 24 CRM should influence marketing decisions across the path to purchase • Robust view of consumer path to purchase as insights tool • Develop new products to solve for unmet needs in identified CRM consumer segments • Test innovation against engaged consumer base • Reapply identified CRM consumer segments in purchase-based targeting • Measure all media with the same lens and KPIs • Connect social behavior to CRM for consistent messaging • Reduce waste from mass promotions and re-invest in more targeted offers • Optimize on-pack messaging with top performing content • Cross promote brands that perform well together MARKETING MEDIA RETAIL
  25. 25. © dunnhumbyUSA 2013 | confidential 25 When done correctly, it works Relevance & Value Engagement Data Sales Loyalty 5
  26. 26. © dunnhumbyUSA 2013 | confidential 26 CONSUMER RESPONSE TO RELEVANT TARGETING BRAND BUYING BEHAVIORAL SEGMENTATIONLIFESTYLE SEGMENTATION RELEVANCY MODELINGRESPONSE MODELING ENHANCED HOUSEHOLD TARGETING OVER TIME Success breeds success 2-5% UPLIFT and transforms CRM into a profit center Source: 2013, aggregated results from multiple CPG and retail sectors, domestic and international
  27. 27. © dunnhumbyUSA 2013 | confidential 27 Do you currently engage directly with your best consumers? What behavior are you collecting on them? What are you doing with the data you have? Do you have the organizational support to put the consumer first? Are you ready to take your marketing to the next level?

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