More Related Content Similar to Technology Trends Customer Insight June 2011 (20) More from CIM East of England (20) Technology Trends Customer Insight June 20111. Customer Marketing
How dunnhumby are helping customers,
retailers and manufacturers win
Presentation to the Chartered Institute of Marketing, 9th
June 2011
Giles Pavey, Head of Innovation, dunnhumby
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2. 2
Winning with
customers
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3. Only two sources of
competitive
advantage:
- the ability to learn
more about our
customers
faster than the
competition and
- the ability to turn
that learning into
action
faster than the
Jack Welch
Jack Welch Former CEO General Electric competition
© dunnhumby 2009 2009 | confidential
© dunnhumby | confidential
11. 11
62 MM 75 MM 238 MM 300 MM adults 310 MM 350 MM Customers 500 MM accounts
© dunnhumby 2009 | confidential
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62 MM 75 MM 238 MM 300 MM adults 310 MM 350 MM Customers 500 MM accounts
Facebook announcement; Nielsen Netrating of Google Audience estimated for adults only
© dunnhumby 2009 | confidential
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62 MM 75 MM 238 MM 300 MM adults 310 MM 350 MM Customers 500 MM accounts
© dunnhumby 2009 | confidential
14. How do you drink from the fire hydrant?
© dunnhumby 2009 2009 | confidential
© dunnhumby | confidential
15. Things
should be
made as
simple as
possible,
but not
simpler
Jack Welch
Albert Einstein
© dunnhumby 2009 2009 | confidential
© dunnhumby | confidential
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How do we do it?
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17. dunnhumby’s blueprint for business success through
customer centricity
Acquisition
DM
Changes in
behaviour
Transaction
Customer
Customer
Action
history Product
Insight
segmentation development
Data
Demo-
Propensity
graphics Pricing
models
Strategy
Research
Customer
results
link
link
KPI's ATL
Advertising
Call centre
Prospecting
data
models Retention
DM programmes
Customer
responses
journey Retail
strategy
Capture changes in customer behaviour via
data and begin the journey again
© dunnhumby 2009 2009 | confidential
© dunnhumby | confidential
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dunnhumby’s “win win win” approach
Retailer Value Creation
Grow Like for Like sales and Net Margin via better decisions throughout the business
Insights to Suppliers Media to suppliers
Commercialise the unique customer data Sell targeted communications and in
asset with suppliers store media to suppliers
More Relevant Customer Experience
Improved channel, promotions, products, prices and communications
© dunnhumby 2009 | confidential
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Clubcard has enabled Tesco to know their customers
Long Term
Customer Customer Customer
to to Customer
Data Insight Management
enables... drive... grow... Loyalty
Customer segmentation Communication strategy Increased
– Lifestage – Retention Customer
– Growth Lifetime Value
– Value & Loyalty
– Win-back / prospecting – Sales growth
– Lifestyles
Business strategy
– Price
– Promotions
– Ranging
– Availability
© dunnhumby 2009 | confidential
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this is a friend we know…
– she is a busy young lady
– she looks after her health and
loves fresh produce
– she drives to the supermarket
on a Saturday morning
– she has a cat
– she doesn’t pay attention to
the price of products Miss Jones
– she does look out for
promotions
we know 350m people around the Globe as well as we know Miss Jones
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lifestyles are built from “DNA profiles”
Miss Jones’s DNA Profile: a “time-poor, food-rich” customer – 25,000 products are used to
create a customer’s DNA
– we have a DNA profile for every
single customer
Over-indexing
Under-indexing
Dimensions
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Really relevant to customers
● What are the key attributes of the products you choose?
● What are your favourite purchase channels?
● When do you buy?
● Promotional Behaviour
● Clubcard Offers
● Clubs
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Range decisions based on sales AND shopper
metrics
Optimised merchandising in
cleaning products
The right product in the right
store for the right customers…
• Retain lines popular with loyal
customers even if not top sellers –
retain their whole basket
• Range rationalisation based on
product substitutions – remove
unnecessary lines, retain unique
Increased facings of lower price
lines products at stores dominated by price
• Product mix tailored to the profile sensitive shoppers.
of customers that shop the store
Sales increase +16%
Units increase +48%
© dunnhumby 2009 | confidential
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Winning house brand new product development
540 new lines, designed to win
against limited range discount
formats
dunnhumby helps by using customer
data to analyse
• The most important products for price
sensitive / less affluent customers, by
category
• Into which stores to focus distribution
of these products
Results
Between 3% (beauty) and 11%
(Household) penetration of weekly users
Typical customer buys 2.1 “discounter”
items per week
© dunnhumby 2009 | confidential
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The Clubcard Statement is at the heart of
Tesco’s contact strategy
● c. 15 million customers mailed every quarter
● Delivers in excess of £160m ‘Reward’ to customers
● 7 million variations of product coupon offers
● Significant impact on revenue 6 x per year
● A valuable tool for suppliers – helps off set costs
● dunnhumby provide targeting and coupon sourcing
Voucher redemption: 95%+; product offers : 20%+
We run similar customer communications in most of our markets with our retail partners
© dunnhumby 2009 | confidential
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Every till transaction is an opportunity
Deliver relevant offers based on
customer’s purchase behaviours over
time and today
dunnhumby source offers both solus
and as part of integrated campaigns
with other media
Typical redemption: 17.5%
© dunnhumby 2009 | confidential
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In store & on the road
Pump
Trolley Talkers Talkers Lorry
6 sheets
In Store TV
Floor Stickers
Sampling
Coupons @ Till In store & car park
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At home
Loyalty
Themed Mailings Magazine
Web &
Internet
Coupons @ Till
Clubs
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Putting the
customer first in
the digital world
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we can populate “my favourites”
from your store shopping
increasing “click through” and
reducing “abandoned” visits
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credit card tells us more about
how you live your life
gives added benefits
strong synergy between
credit card and shopping
drive behaviours in and
out of store
© dunnhumby 2010 | confidential
32. What you buy and when you buy tells us a lot
about you
Film buff
Blockbuster lover These purchases indicate radically
Hi-tech different customers, even though they
Early adopter are buying the same product
First to buy
Blu-ray £14.99
Film buff Blockbuster buyer Discount shopper
Blockbuster lover Prepared to wait Mainstream
First to buy Gift purchase movies
Low-tech
£11.99 £10.99 £4.99
Launch Month 3 Month 12
© dunnhumby 2010 | confidential
33. We can replicate this across all categories
F&F Couture sequin
jacket £90 Canon EOS 7D 15-85 IS
Fashionista £1,899
High price
Couture High performance
Small size Camera buff
High price Early adopter
F&F Faux leather
biker jacket £20 Nikon D5000 SLR £499
New release Brand buyer
Low price Promo purchase
Youth culture 5-star review
Upgrade camera
F&F Boyfriend Jacket Sony Cyber-shot W270
£18 £159
Latest craze/trendy Entry level
Low price Easy to use
Promo purchase Low spec
Large size Long warranty
© dunnhumby 2010 | confidential
34. Combining this data can help us be predictive of
future behaviour in non-food
What products you click on High
What you browse & search
Previous purchases of the same product
Browse & search history
Previous purchases in same category
Stated preferences Predictive Power
Previous purchases in adjacent category
Lifestage and Price Sensitivity
Other purchases in non-food
Grocery purchases
Nothing
Low
Predicting what you’ll buy, not when you’ll buy
© dunnhumby 2010 | confidential
35. Understanding how different customers search
can tell us where we are winning
Digital Canon EOS
Camera Digital SLR
7D
First-time Upgrade Camera
buyer customer buff
Digital Photography
www.which.co.uk Review.com
Amazon.com Sony.com PURCHASE
Tesco.com Canon.com Amazon.com
Jessops.com JohnLewis.com
PURCHASE PURCHASE
Tesco store JohnLewis.com
© dunnhumby 2010 | confidential
36. We can help customers find what they want
This customer has searched ‘kettles’ on Direct
We use what we know…
● Price Sensitive shopper
● Promotions purchaser
● Previously bought Tesco brand small electricals
● Previously bought a silver toaster
… to deliver RELEVANT RESULTS…
#1 #2 #3 #4 #5
© dunnhumby 2010 | confidential
37. Ensuring we have the right dialogue with each
customer will be key
Right offer… …right customer… …right channel
Product Promotions &
Coupons
Website
Category Offers
Banner Ads
Email
Who gets what Who and when
driven by insight
Messages & Editorial
Catalogue
Mobile
Supplier Media &
Advertorial
Clubcard
© dunnhumby 2010 | confidential
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Coming soon to the UK
Online Communities
Helping me live my life
Smart Trolley
E-Cash / Payment vehicles
Offers direct
to phone
© dunnhumby 2009 | confidential
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Thank you
giles.pavey@dunnhumby.com
GilesPavey on Twitter
© dunnhumby 2010