Briefing Paper
Briefing Paper By Paul Kennedy, Head of Consulting at Callcredit
Today’s consumer behaviour
demands a new d...
// Briefing Paper// 01 // www.callcredit.co.uk
Paul Kennedy is Head of Consulting within the
Marketing Division of Callcre...
© 2013 Callcredit Information Group Ltd. All rights reserved
// www.callcredit.co.uk // Briefing Paper // 02
Contents
Toda...
By Paul Kennedy, Head of Consulting
at Callcredit
The consumer society of 2013 enables
commercial opportunities that were
...
// www.callcredit.co.uk // Briefing Paper // 04
There is a lot of hype around at the
moment about ‘big data’, but data wit...
// Briefing Paper// 05 // www.callcredit.co.uk
“44% of consumers always
research purchases online
before actually buying
i...
// www.callcredit.co.uk // Briefing Paper // 06
© 2013 Callcredit Information Group Ltd. All rights reserved
The constantl...
// White Paper// 07 // www.callcredit.co.uk
2013 will be the year when more companies
actually work out what more complex
...
// www.callcredit.co.uk // Briefing Paper // 08
Consider seven categories of data to
support your contact strategy
By coll...
1. Demographic
•	Includes gender, age, ethnicity,
income, home ownership, location
and census data
•	Create profiles by co...
// Briefing Paper // www.callcredit.co.uk
“High performing marketing
programmes are based on
an understanding of the
role ...
// www.callcredit.co.uk // Briefing Paper // 10
DEMOGRAP
LOCATIONS
WEBSITE
VISITS
EMAIL
SOCIAL
DIGITAL
ENGAGEMENT
SALES
TR...
// www.callcredit.co.uk // Briefing Paper // 11
Key to Diagram
Modelled data
solid line links example data types
dotted li...
I
http://www-01.ibm.com/software/data/bigdata/
II
http://econsultancy.com/uk/reports/quarterly-digital-intelligence-briefi...
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Todays consumer behaviour demands a new data model

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The consumer society of 2013 enables commercial opportunities that were previously not possible but it also brings massive challenges. How should all of these digitally recorded actions, movements and behaviours be interpreted and used to help us engage with consumers and promote our offerings? What customer journeys are being enacted offline, online and on premise?

Marketing data should reflect the buyer decision process and therefore what people are doing, feeling and thinking. What needs are being satisfied? What preferences, interests and influences come into play? How relevant is context and place?

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Todays consumer behaviour demands a new data model

  1. 1. Briefing Paper Briefing Paper By Paul Kennedy, Head of Consulting at Callcredit Today’s consumer behaviour demands a new data model
  2. 2. // Briefing Paper// 01 // www.callcredit.co.uk Paul Kennedy is Head of Consulting within the Marketing Division of Callcredit, focusing on the use of data and digital media to impact client marketing programmes. During his 17 years in the industry, Paul has undertaken a wide range of insight based projects across consumer sectors specialising in the custom development of solutions to address business issues. He acts as a bridge between data and digital domains and leads Callcredit’s thinking across emerging techniques, technologies and engagement channels. Ideas Vision SuccessDevelopment Pragmatic
  3. 3. © 2013 Callcredit Information Group Ltd. All rights reserved // www.callcredit.co.uk // Briefing Paper // 02 Contents Today’s consumer behaviour demands a new data model 3 The constantly connected customer 6 Consider seven categories of data to support your contact strategy 8 Callcredits network of consumer intelligence 9 1. Demographic 2. Channel preferences 3. Transactions 4. Credit, risk and Fraud 5. Current consumer needs 6. Digital engagement 7. Attitude / Personality
  4. 4. By Paul Kennedy, Head of Consulting at Callcredit The consumer society of 2013 enables commercial opportunities that were previously not possible but it also brings massive challenges. How should all of these digitally recorded actions, movements and behaviours be interpreted and used to help us engage with consumers and promote our offerings? What customer journeys are being enacted offline, online and on premise? Big Data? Every day, vast amounts of data are generated as we search for and buy the things we need from our chosen brands. Whilst it’s fantastic to have access to all of the ‘digital exhaust’ coming off the back of those activities, many marketers are now drowning. In fact, 2.5 quintillion bytes of data1 are generated every day. Every minute of every day, Google gets over 2 million queries, Facebook users share 684 million pieces of content, brands receive 34k likes, about 50k apps are downloaded on iTunes and email users send over 200m messages. Now multiply those numbers by 1,440 to see what’s generated in a day. Imagine how much will have been collected in a year’s time! Big data is not just about size but more the awkward nature of it Today’s consumer behaviour demands a new data model // Briefing Paper// 03 // www.callcredit.co.uk 1 source: http://www-01.ibm.com/software/ data/bigdata/
  5. 5. // www.callcredit.co.uk // Briefing Paper // 04 There is a lot of hype around at the moment about ‘big data’, but data without commercial context and proper application is an easy trap to fall into. Maybe big data is a misnomer? Not all large datasets are ‘big’. Big data is not just about size but more the awkward nature of it. If it will fit into a traditional relational database, it’s probably not big data. If the structure of the data doesn’t change much, then it’s probably not big data. If it can be analysed using traditional analytical tools and analysts we’re familiar with in marketing, it’s probably not big data. Ever since 1965, we’ve had Moore’s law – and accordingly, data inflation continues. A ‘Zettabyte’ sounds like a good upper limit at 10 to the power of 70 bytes but we now have the Yottabyte – 10 to the power of 80, currently too big to imagine. Actually, the thought that there’s more data than we can process (which has probably always been true) is dressed up as the latest trend with associated technology must-haves. Actually, it’s not size that matters, but rather having the ‘right’ data to address the business objectives we are working to. Over the next few years we will therefore see the rise of componentized small data – creating and integrating small data ‘packages’ rather than building big data monoliths. © 2013 Callcredit Information Group Ltd. All rights reserved “There is a lot of hype around at the moment about ‘big data’, but data without commercial context and proper application is an easy trap to fall into.”
  6. 6. // Briefing Paper// 05 // www.callcredit.co.uk “44% of consumers always research purchases online before actually buying in-store, while a further 52% sometimes check online before buying in-store.”
  7. 7. // www.callcredit.co.uk // Briefing Paper // 06 © 2013 Callcredit Information Group Ltd. All rights reserved The constantly connected customer From the consumer point of view, the lines between offline, online and on premise experience are blurring – especially when we look at retail. A recent survey found that 44% of consumers always research purchases online before actually buying in-store, while a further 52% sometimes check online before buying in-store. Econsultancy reports2 that 85% of marketers say using online data to optimise offline is important and vis-á- vis; joining online and offline data is now listed as a top three priority. But, the greatest challenge for marketing is that a customer’s experience is now an aggregate of online and offline events, mobile and desktop, store and device, marketing and service. This is a very real issue. One recent study has found that 92% of retailers are struggling with offline/online integration. Have you noticed more shops are now offering in store wifi such as Asda, Superdrug and even some bank branches? Customers can log on and browse the internet whilst they are on premise. Why are companies doing this? For the customer it allows them to check Facebook and email without eating into their data allowances. For the retailer, it offers improved conversion, better data collection, personalization opportunities and a richer multi-channel experience. If customers are going to do the showrooming thing, having wifi in the shop will not stop them but it actually gives the retailer an opportunity to be in the loop… customers become visible as they browse. Retailers can track them more closely and promptly engage the customer with its proposition. But it will only work for retailers if it’s promoted well, is easy for customers to log on and there is a clear data collection strategy. Recent research by On Device Research showed that 74% of respondents would be happy for a retailer to send a text or email with promotions while they’re using in-store wi-fi. Recent research3 shows that about 80% of mobile consumers are influenced by the availability of in-store WiFi when deciding where to shop. 2 http://econsultancy.com/uk/reports/ quarterly-digital-intelligence-briefing-digital- trends-for-2013 3 http://stakeholders.ofcom.org.uk/binaries/ research/cmr/cmr12/UK_4.pdf
  8. 8. // White Paper// 07 // www.callcredit.co.uk 2013 will be the year when more companies actually work out what more complex customer journeys mean for their particular business and aspirations for becoming truly ‘omnichannel’. But there is still plenty of room for improvement as anyone who’s been the subject of an aggressive retargeting campaign knows. At the heart of this is a well thought out contact strategy supported by a data model which is right for your business. // Briefing Paper// 07 // www.callcredit.co.uk CUSTOMER CLAIMED - INTENTIONS, PRODUCT USE, VISITS, LIKES EXTERNAL INTERNAL Known Modelled Source: Callcredit analysis Known and modelled data types across internal and external domains and customer claimed data Credit, risk and fraud Insurance Renewal dates Home move triggers Switcher triggers Social likes Check ins Store wifi logon Date of birth Logged in web visits Email clicks/opens Purchases Contact history Predicted value Life time value Modelled behaviour Lifestyle Demographic House characteristics Attitudes and personality Post code Local attributes
  9. 9. // www.callcredit.co.uk // Briefing Paper // 08 Consider seven categories of data to support your contact strategy By collecting and building the right customer data a joined up customer lifecycle programme can be designed and implemented to engage with customers as they discover, explore, buy and revisit – whatever the touchpoint. Hit and run marketing is definitely out. Recent Google research showed that consumers make an average of 10.4 touches4 from initial stimulus to final conversion. The ‘push’ message that used to lie at the heart of marketing is outdated; now consumers also want to pull brands into their world and by pre scoring customers with ‘lie in wait’ offers driving the content strategy, they will be more receptive. This needs a combination of traditional and emerging data types such as browsing, intent, trigger and switcher data. It should take into account clickstream variables such as web visits, email clicks and real time geo location movements as well as more traditional attributes such as transactional, demographic and risk. Marketing data should reflect the buyer decision process and therefore what people are doing, feeling and thinking. What needs are being satisfied? What preferences, interests and influences come into play? How relevant is context and place? The next page shows seven data categories to consider within your data model. While each one may be stored in isolation, they relate to each other. High performing marketing programmes are based on an understanding of the role of each data type and how they work together. This may be one of the first things to tick on your ‘channel integration’ checklist 4 http://www.google.com/think/research- studies/zero-moment-of-truth.html © 2013 Callcredit Information Group Ltd. All rights reserved
  10. 10. 1. Demographic • Includes gender, age, ethnicity, income, home ownership, location and census data • Create profiles by combining these variables with other data • Use externally available classifications such as Callcredit’s CAMEO suite 2. Channel preferences • Channels include mail, phone, mobile, email and web – owned sites and ad networks • Customer claimed, and solicited from the brand as well as externally appended • Helps drive initial path to purchase as well as building retention 3. Transactions • Data sourced from billing / ecommerce systems • Detailed product purchase data can be used to drive relevant offers • Can now source data from third party sites to identify customers shopping around • Linking store transactions with known individuals can be a problem 4. Credit, risk and Fraud • Useful for both lending and non-lending products • Often combined with demographics and transactional data • Some variables can be used at public level where company does not contribute to a credit reference platform such as SHARE • Fraud screening data can help identify transactions for alternative processing / checking • Some services require the identity of the purchasing customer to be verified using external reference data 5. Current consumer needs • Identification of consumers in the market / shopping around • The ability to identify, distribute and action within hours or days is vital • From insurance renewal dates to moving home and switching energy provider • Check out Lifestyles Online - Callcredit’s lead generation agency 6. Digital engagement • Traditional web visitor segmentations often group people into current customers, lapsed customers, prospects etc depending on the level of engagement • Need to also use raw email / website data to capture movements at a customer level • Map onto defined customer journeys / paths to purchase • Can now source geo location data from in store Wi-Fi, telcos and social platforms 7. Attitude / Personality • You are what you like – social likes and connection are predictive of attitudes and interests and can indicate intent to purchase • Can be collected via social API, Facebook Connect, etc • Additional insight can be gained from visual quizzes – motivations and aspirations // Briefing Paper// 09 // www.callcredit.co.uk Callcredit’s network of consumer intelligence © 2013 Callcredit Information Group Ltd. All rights reserved
  11. 11. // Briefing Paper // www.callcredit.co.uk “High performing marketing programmes are based on an understanding of the role of each data type and how they work together.”
  12. 12. // www.callcredit.co.uk // Briefing Paper // 10 DEMOGRAP LOCATIONS WEBSITE VISITS EMAIL SOCIAL DIGITAL ENGAGEMENT SALES TRANSACTIONS CONS Age Pages visit Tone of voice 3G Social WiFi Categories Monetary RFV Share of wallet Topics of conversation Influence Items clicked on Incomplete journeys Goals achieved Opens Clicks Referrals Affluence Household type Customer entered data Brands and categories Journeys completed
  13. 13. // www.callcredit.co.uk // Briefing Paper // 11 Key to Diagram Modelled data solid line links example data types dotted line indicates likely links between data types Known data size of circle proportionate to typical amount of data in scope PHIC CHANNELS CURRENT NEEDS ATTITUDES PERSONALITY CREDIT, RISK, FRAUD UK SUMERS Postal Mobile Device Insurance Credit rating Long term goals Personality traits Brand affinities Tastes and preferences Interests Affordability Over indebtedness Risk Fraud Financial preferences Technology usage Motivations Lifestyle Property characteristics Energy Telecoms Switching Lending Purchase intent Home move Email
  14. 14. I http://www-01.ibm.com/software/data/bigdata/ II http://econsultancy.com/uk/reports/quarterly-digital-intelligence-briefing-digital-trends- for-2013 III http://www.google.com/think/research-studies/zero-moment-of-truth.html Callcredit Information Group Enabling Smarter Decisions To find out more about Callcredit’s Marketing Solutions email info@callcreditgroup.com call 0845 60 60 609 or visit www.callcredit.co.uk © 2013 Callcredit Information Group Ltd. All rights reserved About Callcredit Information Group Callcredit Information Group has a leading edge approach to using consumer information in credit referencing, marketing services, interactive solutions and consultative analytics. This enables our clients to cost-effectively identify, engage and convert more new customers and optimise existing customer revenues. Callcredit Marketing Solutions can help develop an integrated channel strategy with the following services: • Appending emails, mobile numbers and landlines to terrestrial data • Reverse matching of email addresses • Profiling of online enquirers and customers • Finding e-lookalikes • Helping to build engagement with invisible offline customers • Joining online intents and behaviours with offline data and activities • Presenting unified content, including offers and messages to customers based on all channel interactions

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