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It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
It's Digital, but is it Personal?
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It's Digital, but is it Personal?

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Presentation by Matt Nitzberg at the 2013 Shopper Marketing Summit

Presentation by Matt Nitzberg at the 2013 Shopper Marketing Summit

Published in: Technology, News & Politics
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  • LCM HH Response Rate – redeemed at least one coupon in store (denominator is total number of HHs emailed)
  • How relevant is the email communication you have received in the past 3 months from Kroger? % indicating “Relevant” or “Highly Relevant” Control received no personalized emails – only untargeted emails
  • Loyalty gets more from existing customers Advocacy builds on loyalty to get net new customers into the business
  • The platform has to weed out people who just want free stuff so every advocate is scored based on the frequency and quality of participation
  • Transcript

    • 1. It’s digital, but is it personal?© dunnhumbyUSA 2013 | confidential
    • 2. dunnhumby’s context  24 years  28 countries  1,000s of clients  400,000,000 customers  All media channels© dunnhumbyUSA 2013 | confidential
    • 3. Customer = CMO© dunnhumbyUSA 2013 | confidential
    • 4. Earn It© dunnhumbyUSA 2013 | confidential
    • 5. Three Prizes 1.Current sales 2.Potential sales 3.Advocacy© dunnhumbyUSA 2013 | confidential
    • 6. Relevance wins Household Response Rates 62.7% 64.2% 63.1% 59.6% 56.2% 58.4% 55.6% 52.6% 49.5% 52.6% 49.2% 49.0% 42.1% 35.7% 33.3% 28.7% 27.2% 22.7% 22.7% 18.0% 16.0% 21.5% 18.4% 20.0% 16.0% 17.0% 15.0% 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* Campaign events© dunnhumbyUSA 2013 | confidential
    • 7. Or … Source: The Times 19 Jan 05© dunnhumbyUSA 2013 | confidential
    • 8. Digital Danger© dunnhumbyUSA 2013 | confidential
    • 9. “Last year, the nations top 100 retailers by e-commerce revenue sent recipients an average of 177 emails apiece, up 87% from 2007.” [and up 24% vs. last year] Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”© dunnhumbyUSA 2013 | confidential
    • 10. “More than 500 emails apiece” Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”© dunnhumbyUSA 2013 | confidential
    • 11. Deleted, Detested, Delisted© dunnhumbyUSA 2013 | confidential
    • 12. Customer Reaction to Retailers’ Emails 1st half 1st half % National average 2007 2011 Chg. Email open rate 19.0% 12.5% -34% Click through rate 3.9% 2.8% -28%© dunnhumbyUSA 2013 | confidential Source: WSJ / Harte Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
    • 13. 49% of unsubscribers from permission emails: Content was repetitive or boring over time 1 22% of US Internet users stopped buying from a company: too many or irrelevant emails 2 1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions© dunnhumbyUSA 2013 | confidential
    • 14. 14It doesn’t have to be that way© dunnhumbyUSA 2013 | confidential
    • 15. 15If your digital marketing is relevant, morecontact can improve perceptions© dunnhumbyUSA 2013 | confidential
    • 16. Unaware, Unconcerned, Unable© dunnhumbyUSA 2013 | confidential
    • 17. What are “they” doing wrong, and why?© dunnhumbyUSA 2013 | confidential
    • 18. Big data Small thinking© dunnhumbyUSA 2013 | confidential
    • 19. Wrong data and insights© dunnhumbyUSA 2013 | confidential
    • 20. Personalization ≠ Algorithms© dunnhumbyUSA 2013 | confidential
    • 21. Inputs, not outcomes© dunnhumbyUSA 2013 | confidential
    • 22. Wrong Rewards© dunnhumbyUSA 2013 | confidential
    • 23. Exactly right for each shopper all the time© dunnhumbyUSA 2013 | confidential
    • 24. Here’s what we’ve learned about makingdigital personal 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© dunnhumbyUSA 2013 | confidential
    • 25. Making digital personal 1.Brand CRM program 2.Display advertising 3.Advocacy and user content 4.Integrated loyalty approach© dunnhumbyUSA 2013 | confidential
    • 26. 26Brand CRM programs: From good to great Lagging approaches to Leading approaches to targeting, activation, and targeting, activation, and evaluation evaluation • Demographics and • Purchase behavior, plus claimed behavior additional contextual data • Responsiveness to • Responsiveness to all standard offers media stimuli and personalized offers • Redemption behavior • Sales uplift© dunnhumbyUSA 2013 | confidential
    • 27. 27A better approach yields better results:Multi-brand CPG CRM multi-cell test Lagging approach Leading approach +8% sales uplift +112% sales uplift vs. control vs. control© dunnhumbyUSA 2013 | confidential
    • 28. We know display advertising can build sales© dunnhumbyUSA 2013 | confidential
    • 29. On line advertising is more consistent in driving off line sales than TV % of campaigns with a statistically significant off-line sales lift TV Internet (IRI) (comScore) 36% 80%© dunnhumbyUSA 2013 | confidential
    • 30. 30On-line display advertising: Purchase-basedtargeting 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%© dunnhumbyUSA 2013 | confidential
    • 31. Next generation advocacy© dunnhumbyUSA 2013 | confidential
    • 32. The new Word of Mouth approach linksshopping insights to targeting, evaluation Case Study: Supporting a new product launch Targeted BzzAgents • Based on categories, brands, and products of interest Strong Agent • Based on relevance of the sampled product engagement High volume reach • Reached over 1,000,000 people, at 228 network contacts per Agent Measurable sales • 18% increase in dollar sales vs. control impact • $14:1 sales-to-cost ratio© dunnhumbyUSA 2013 | confidential
    • 33. Targeted Word of Mouth also delivers newlearning and user generated content Unilever Insights from Shopper Marketing 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 Lowered soup salt content Changed deodorant fragrance Changed language from “baking bags” to “cooking bags”© dunnhumbyUSA 2013 | confidential
    • 34. Integrated loyalty approach© dunnhumbyUSA 2013 | confidential
    • 35. 35Insight: Even Raley’s best customers spendonly ~60% of their eligible dollar at Raley’s + = What we earn Spend with Our customers’ now from our competitors for total grocery spend existing items we sell customers© dunnhumbyUSA 2013 | confidential
    • 36. Raley’s knew that a loyalty approach, notjust a loyalty program, was required ● 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© dunnhumbyUSA 2013 | confidential
    • 37. 37Combines loyalty and advocacy to deliveron the promise of ‘Something Extra’ Increase LOYALTY of Raley’s Best Customers Cultivate ADVOCACY for Raley’s and their CPG partners, both online and offline© dunnhumbyUSA 2013 | confidential
    • 38. 38Participation rates for monthly Best CustomerCommunications are around 50% Distribution and Participation Metrics February email© dunnhumbyUSA 2013 | confidential
    • 39. Something Extras Try-it combines shopperdata 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© dunnhumbyUSA 2013 | confidential
    • 40. 40 40A primarily digital experience allowscontent to be easily shared, online andoffline© dunnhumbyUSA 2013 | confidential
    • 41. 41The platform is built to weed out peoplewho just want free stuff Try-it Screenshot – ‘My Score’ Page© dunnhumbyUSA 2013 | confidential
    • 42. 42A modest number of advocates amplifiesthe message, engaging a large community Screenshot from the Try-it ‘Pulse’ Measurement Portal© dunnhumbyUSA 2013 | confidential
    • 43. Making Digital Personal 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© dunnhumbyUSA 2013 | confidential
    • 44. Thank you matt.nitzberg@us.dunnhumby.com 513-632-1032© dunnhumbyUSA 2013 | confidential

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