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Location Infused Insights for Effective Customer Relationships

"You are what you like" is a key pattern that provides powerful insights with the help of customer analytics. Using these insights to establish and grow profitable customer relationships can be exponentially higher when using the power of physical location data along with digital and transactional sources. Enticing customers to share their location is only the start for such a marketing initiative. Powerful analytics on data from outside and inside the store activity along with other digital and transactional information, can allow for much richer and actionable marketing campaigns which can be delivered interactively or through traditional marketing efforts. Learn how leading retailers across the globe are quickly discovering the power of location data and are refining their marketing strategy based on such insights in order to drive business growth.

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Location Infused Insights for Effective Customer Relationships

  1. 1. Location infused insights for profitable relationships Norbert Herman – Retail Industry Solutions Group
  2. 2. 2 You continue to see so many stats about what consumers say; so what now? 53% 30% 48% 19% 36% 12% 0% 10% 20% 30% 40% 50% 60% Visit social site multiple times a day Post about items purchased 2014 - Global 2014 - AUS 2013 - AUS
  3. 3. 3 Mobile influenced shopping is enhanced with timely delivery of messages through the shopping journey Make data analytics empowered decisions with real- time updates Amplify your message with metrics driven customer engagement Increase your reach with just-in-time mobile influenced commerce
  4. 4. 4 A couple of 2014 stats that are highly relevant… Source: http://techcrunch.com/2015/01/06/app-usage-grew-76-in-2014-with-shopping-apps-leading-the-way/
  5. 5. 5 Customers location sharing is on the rise One Example: Simon Group Malls • 200MM Mall network monthly shopper visits with $20B+/month in • 3,000+ unique retailers with over 25,000 storefronts Retail Malls Airport Malls “The Sixth Continent” • In 2013 travel retailers sold around $60 billion of goods, according to Generation Research, a Swedish firm • Sales at airports alone will grow by 73% from 2013 to 2019 19% 36% 2011 2013 2013 — Willingness to share Social handle = 32% Mobile # = 38% Willing to share current location (GPS) IBV Study 2014
  6. 6. 6 The fundamental challenge “what customers really want” is simple to state, but difficult to prove
  7. 7. 7 Location insights can bring you one step closer to finding not just the perfect customer, but customer(S)
  8. 8. 8 People cannot always explain what they want deep down, but their location actions provide a strong signal LifestyleDemographicPersonality • 32 year old • Single female with kids • Lives in Irving, CA • Long NYC stays (3 months/year) Lilly • Global Traveler ~200K / year • Travels business class 75% • Most global trips are to London • Prefers Delta • Uses car service in NYC not Taxi • Prefers Hilton in Time Square • Uses Amex for all purchases • Needs • Values • Personality • Social Behavior
  9. 9. 9 Location data combined with other sources increases the customer intent signal through the shopping journey • Location Movement Detection •In the mall •At different malls across US •In the store •In specific zones in the mall Enters the Denver Mall (2:32 pm Sat) • Analytics Driven Offer Selection •Next Best Action and / or Offer analytics based on insights inferred from location data combined with other sources • Location Prediction •Predictive analytics for most profitable location patterns •Location pattern detection for optimal timing of engagement Enters the Mall of GA (12:32 pm 1 week later) Dwells at Starbucks Enters the Denver Mall (5:12 pm 2 weeks later) Message based on presence event Recognized nationwide pattern Analytics based hangout pattern Predictive traffic pattern for optimal engagement
  10. 10. 10 Where does one get the data for mall customers? Current Network Coming Soon Current Network Coming Soon Provided by an IBM Partnership with
  11. 11. 11 The location data driven use cases can make an impact to all aspects of the retail store In-Store path enhancements Merchandizing (shelf- fit) enhancements Local Marketing Campaign Enhancements Email remarketing with BOPIS Online (.Com) promotion Point of Sale Based promotions Opt-In Onboarding Point of Sale Based Promotions Beauty Spot promotions Customer Input and Participation Associate Guidance in- store Opt-In Anonymous White Glove Opt-In Onboarding Personalized events and promotions Mobile based price checker promotions Word of Mouth Marketing Rewards In-Zone promotions Store Focused Associate Driven Digital Promotions Associate Guidance in- store Location Insights Use Case Catalog – Traffic to store, Demand Signaling, Marketing Spend, Competition (share of customer attention) Profitable Customer driven shelf fit
  12. 12. 12 Hangout detection allows for optimal engagement timing  What is a hangout – Given uncertain location samples from a moving object, did the object dwell at a space-time box for at least t time units? – Useful for classify moving objects (e.g., daily grinder, couch potato, globe trotter), detecting anomalies (e.g., shifts in hangout patterns) co-location analysis (e.g., where does entity e hangout? who did entity e hangout with?) for surveillance applications  Solution – Using geo-spatial toolkit in Streams / SPSS. – Handles uncertainty in location data – Fexible to work across multiple domains (e.g., ships, cars, asteroids, person on foot)  Customers – Telco Malaysia, TelcoPhilippines, Telco Thailand, TelcoTurkey, Telco USA Spent at least 15 mins in 76m box in some one hour time window
  13. 13. 13 Pattern detection and anomaly insights based on location data reveals key omni-channel opportunities Leverage Point 5: Advocate Compensation Use platforms like Pinterest to complement marketing efforts through the help of the extreme loyalist Leverage Point 6: Application To Person Use of the mobile platform to send intelligent, timely & location focused messages to mobile users
  14. 14. 14 Location insights will identify new profitable clusters Rank Action Cluster % of Customers % of Spend 1 Extreme Loyalists—Profitable 9% 30% 2 Extreme Loyalists—Unprofitable 8% 18% 3 Family Shopper—Profitable 6% 14% 4 Family Shopper—Unprofitable 8% 8% 5 New Customers 7% 7% 6 Credit Inclined 6% 6% 7 Home Multi-channel 10% 3% 8 Infrequent Modern Seeker 7% 2% 9 Lapsing Occasional Shopper 17% 7% 10 Lapsed Big Basket 4% 2% 11 Lapsed One-and-done 13% 2% 12 Clearance Shopper 5% 1%
  15. 15. 15 Lily’s language (social) and interests (location data) with System-U analytics can enhance the message accuracy
  16. 16. 16 A use case driven approach is needed for any data use, omni-channel options and/or creative store experiences Business Metrics Determine the set of measurable benefits that presence zones can impact Customer Target Determine the characteristics of the prototypical customer targeted by the use Business Objective What opportunity or problem is going to be addressed by this use case Campaigns Identify existing or propose promotions needed to expose and engage customers in the journey System Capabilities Determine the range of functions, and analytics (current or proposed) to support the journey Available Data & Capability Identify what data and capability is available / being considered for this use case Customer Journey Draw the customer journey that will be addressed by this use case with timing details Business Case Correlation Map out the business case logic that will be proven by the use case using the defined metrics 3 4 1 2 5 6 7 8 Use Cases with ROI in a business objective context

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  • cnader

    Aug. 11, 2015
  • itayulianti

    Dec. 20, 2019

"You are what you like" is a key pattern that provides powerful insights with the help of customer analytics. Using these insights to establish and grow profitable customer relationships can be exponentially higher when using the power of physical location data along with digital and transactional sources. Enticing customers to share their location is only the start for such a marketing initiative. Powerful analytics on data from outside and inside the store activity along with other digital and transactional information, can allow for much richer and actionable marketing campaigns which can be delivered interactively or through traditional marketing efforts. Learn how leading retailers across the globe are quickly discovering the power of location data and are refining their marketing strategy based on such insights in order to drive business growth.

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