Basic social media mining focuses on themes (think Wordclouds), buzz (the volume of conversation) and sentiment (the positive/neutral/negative ratio). When you want to go beyond that and harness the power of social media content you need a framework relevant to a specific demographic group of people, e.g. like Millennials, and producing a segmentation based on shopping behavior, lifestyles, fashion preferences and retailer brand perceptions.

1. © 2013 IBM Corporation
Social Media Segmentation
Use Case Sales and Delivery
• Utilize publicly available social media and other external data sources to
determine the digital social behavior of the U.S. Millennial population ages 18-30
yrs.
• Leverage behavioral insights of digital social expressed preferences to build
Millennial Social Segments relevant to the Retailer in order to better engage
Millennials
• Provide a methodology and set of technologies to operationalize the listening and
context gathering insights for the Retailer into a repeatable process
Project
Objectives
IBM Sales & Distribution
Solution Sales
Business Solution Professional
Tel. +49 151 1252 1320
Oliver.Seidel@de.ibm.com
Oliver Seidel
Foto

2. © 2013 IBM Corporation
Today’s consumers have little interest in retailers who don’t meet their
expectations
Anticipate and service my shopping needs
Use what you know about me to deliver a seamless and interconnected engagement
regardless of where I am shopping
Make it convenient and easy to interact with you
Consistently capture my history and profile and deliver information and services to me through
my preferred channel
Be there when I need you, in real time
Empower me with real-time updates, proactive communications and choices before, during and
after I shop
Remember all of our interactions
Understand me and my preferences through our past interactions
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Retail Industry Challenge
Retailers must engage in “social business” and use social data in order to
acquire advocates and eventually, evangelists for the brand
Leverage social content to create meaningful, productive, two-way
dialogue…It’s a conversation!
Use insights generated from those conversations to facilitate change
across the retail enterprise
Keep the relationship alive. Listening often and intently will create
lifelong customers
Let consumers know they’ve been heard and give them content to share

3. © 2013 IBM Corporation
Solution Description – What is SMA (Social Media Analytics)?
Reporting and Dashboard capabilities, Cognos v 10, single log-in for SMA project, with under-the-hood
configured big-data feeds from social media through BoardReader.
Includes SaaS option to complement continued momentum of on-premise deployments
Through SMA, algorithms, conducting sentiment analysis, which provide output as to which segments
have negative or positive comments or responses to a particular topic, product, or query.
Segmentation from sentiment analysis can be conducted in a meaningful way.
Another feature is that of evolving topics. Through a topic detection algorithm – after certain words and
topics have been selected, other related topics will continue to be identified keeping the model fresh and
relevant for as many days as selected.
Importantly, because the dashboards are easily navigable, SMA is appropriate for many users within an
organization from the BI user to the more technically advanced.
SMA supports over 35 languages through BoardReader (Effysis), including Chinese Modern and
Traditional.
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SMA is a powerful tool that combines web-scraping of millions of social
media feeds, sentiment analysis, segmentation,and search for evolving
topics, in an intelligent reporting and dashboard interface. It supports
over 35 languages.
IBM Solution Capabilities & Use Case

4. © 2013 IBM Corporation
Capture Analyze/Predict/Target Execute & Empower
Advanced Customer Analytics
StatisticsText
Mining
Data
Mining
Data Collection delivers an
accurate view of customer
transactions attitudes,
opinions, and preferences
Advanced Analytics capabilities enable retail
brands to more effectively target customers
for interactions; increasing response rates,
improving results, enhancing the customer
experience
Targeted and customized
interactions are delivered through
appropriate channels at the brand’s
discretion or on-demand
Optimization
Robust
Data
Collection
Highly
Customized Customer
Interactions
Solution Diagram – IBM’s Approach
Capture customer data, Analyze the data to uncover insights and Execute on
those insights to deliver quantifiable business results and improve the
customer experience
3
IBM Solution Capabilities & Use Case

5. © 2013 IBM Corporation
Millennial facets are modeled into Millennial themes adding context, depth
and breadth to the analysis
4
Millennial themes (Feature Vectors) are
derived in three ways to ensure the depth and
breadth of the analysis:
ACT – Which characteristic did the author
discuss the most?
N_ACT – How many different characteristics
does the author mention within the facet?
SUM – how many total conversations were
captured about each facet?
Feature Vector
Retailers_ACT Retailer 1
N_Retailers 4
SUM_Retailers 75
25 core
Millennial
facets
163 key feature vectors
(themes) modeled
Selected 12 Clustering
vectors (themes) • Education Attained
• Value Shopper_ACT
• Value Shopper
• Young Millennial
• Older Millennial
• Max Topic Engaged
• Fashion Style
• Retailers_ACT
• N_Retailers
• Leisure Activities
• Hobbies Engaged
• Shopping Lifestyle
MillennialTheme
Creation
2.03M
Authors
Retailers
Author # Retailer 1 Retailer 2 Retailer 3 Retailer 4 Retailer 5
18903 40 12 8 15 0
IBM Solution Capabilities & Use Case

6. © 2013 IBM Corporation
Millennial themes give way to the 12 building blocks used to assemble the
Millennial Social Segments
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The 7 Millennial Social Segments are:
• Highly homogeneous – creates
segments with similar narratives
• Highly differentiated – ensures
distance between segments
• Highly actionable – facilitates highly-
specific targeting
The 12 clustering variables were chosen
through analysis of:
• Number of conversations
• Distribution within each millennial theme
• Low correlation between millennial themes
• Most importantly business understanding and
implications
Education Attained
Young Millennial
Older Millennial
Max Topic Engaged
Fashion Style
Leisure Activities
Hobbies Engaged
Shopping Lifestyle
Retailers_ACT
N_Retailers
Value Shopper_ACT
Value Shopper
Millennial themes and source are used as profiling
variables to enhance each Millennial Social Segment
Gender Gender
Cluster # Male Female
Macy's Enthusiast 15.91% 36.74%
Lady Candid 8.55% 60.86%
Savvy Shopper 14.22% 41.57%
Coupon Lover 12.15% 47.66%
The Everywhere Butterfly 12.54% 43.59%
Fashion on a Dime 14.07% 43.27%
High Fashion Connoisseur 11.74% 36.99%
Brand
IBM Solution Capabilities & Use Case

7. © 2013 IBM Corporation
Millennial Social Segments
6
Brand
Enthusiast
Retailers and fashion style
dominates their conversations
Retailer 1 is discussed the
most
Share most via Twitter
49% of the population
Value conscious; lives on
a budget
Finds and shares great deals
Finds great value at Retailers
4 & 5
18% of the population
Savvy Shopper
Cluster 1
Cluster 3
Vocal multi-style Girly Girl
Always out and about doing
what she likes
Finds what she likes at
Retailer 2 and Retailer 1
8% of the population
Cluster 5
Everywhere
Butterfly
Share! Share! Share!
Blogs about everything
fashion
Sophisticated and preppy
styles
1% of the population
Lady Candid
Cluster 2
Constantly looking for the
best deals
Vocal about everyday needs
and style
Hobbies reflect what she
values most
0.3% of the population
Coupon Lover
Cluster 4
bloggers
Engages in sporty and active
lifestyle
Young professional value
shopper
Fashion style matches sporty
lifestyle
13% of the population
Fashion on a
Dime
Cluster 6
High Fashion
Connoisseur
High fashion and
sophisticated styles
Prefers high-end retailers
Jetsetter to the core
11% of the population
Cluster 7
IBM Solution Capabilities & Use Case