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![The experts weigh in
The key is segmenting to closely target the demographics making up your future shopper base. By
looking at segments on a micro level, you can get to know shoppers on a store-by-store basis and figure
out which features you want to prioritize in which locations. Get to know who is in your store aisles and
what they want today to shape how you personalize their experiences in the future.
PricewaterhouseCoopers LLP “Front of the Line” report.
Retailers now recognize that price and/or product are not enough to differentiate their brand, they need to
focus on the customer experience to win.”
RSR, Retail Marketing 2013: Organizational Drift report.
[Retailers] are viewing their shoppers’ behaviors broadly: They look at things like spending and
purchasing habits, basket composition, purchase timing and frequency, wallet share, marketing
effectiveness, and branding impact. Envision your future shoppers by understanding the most minute
changes in areas like these, and use that knowledge to model and anticipate future behaviors.
PricewaterhouseCoopers LLP 2014 report.](https://image.slidesharecdn.com/manthan-deck8-14ms-140814102432-phpapp02/75/A-Roadmap-To-Retail-Personalization-How-To-Align-Marketing-Strategy-And-Execution-12-2048.jpg)
Uploaded byG3 Communications
A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution
The document discusses the importance of retail personalization, highlighting that a significant majority of consumers and retailers believe it influences purchasing decisions. It emphasizes the necessity for retailers to effectively use consumer data across channels to enhance personalized experiences, while only a small percentage of retailers feel they are achieving this effectively. The roadmap includes strategies for customer segmentation, predictive analytics, and personalized offers to increase customer engagement and drive sales.
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A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution
- 1. A Roadmap To Retail Personaliza3on #RetailRoadMap SPONSORED BY How To Align Marke=ng Strategy and Execu=on
- 2. #RetailRoadMap Type ques3on here Welcome Webinar AEendees
- 3. #RetailRoadMap Follow This Webinar On TwiEer #RetailRoadMap
- 4. #RetailRoadMap About Retail TouchPoints ü Launched in 2007 ü Over 28,000 subscribers ü To provide execu=ves with relevant, insighPul content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SUBSCRIBE
- 5. #RetailRoadMap Panelists DebbieHauss Editor-in-Chief Retail TouchPoints MODERATOR Hillary Ashton VP of Customer Analytics Manthan Systems
- 6. Why Personalize? 86% ofconsumers — and 96% of retailers — said personalization has at least some impact on the purchasing decision (Infosys)
- 7. The Line Between PersonalAnd Creepy 93% of shoppers are willing to share personal information to receive customized offers. BUT they’re not willing to share everything: 78% are ok with sharing their email address; 64% zip code; 38% birth date and 38% postal address.
- 8. Using Personalization To BeatAmazon Innovation through personalization is key to gaining an edge in today’s competitive marketplace. Bottom line: at least 31% of consumers want more personalization in their shopping experiences.
- 9. Challenge: Personalize Across Channels 40%of consumers buy more from retailers that personalize across all channels (the e-tailing group)
- 10. A Roadmap to RetailPersonalization Hillary Ashton VP Customer Analytics, Manthan 10
- 11. Today’s retail pressures Giveme what I want, when I want it, how I want it. And it better be at a good price. I’ll engage with you in a race to the bottom. I know I can win. Profits, profits, profits! Do more with less. CUSTOMER COMPETITION ORGANIZATION
- 12. The experts weighin The key is segmenting to closely target the demographics making up your future shopper base. By looking at segments on a micro level, you can get to know shoppers on a store-by-store basis and figure out which features you want to prioritize in which locations. Get to know who is in your store aisles and what they want today to shape how you personalize their experiences in the future. PricewaterhouseCoopers LLP “Front of the Line” report. Retailers now recognize that price and/or product are not enough to differentiate their brand, they need to focus on the customer experience to win.” RSR, Retail Marketing 2013: Organizational Drift report. [Retailers] are viewing their shoppers’ behaviors broadly: They look at things like spending and purchasing habits, basket composition, purchase timing and frequency, wallet share, marketing effectiveness, and branding impact. Envision your future shoppers by understanding the most minute changes in areas like these, and use that knowledge to model and anticipate future behaviors. PricewaterhouseCoopers LLP 2014 report.
- 13. 13 Your consumers areready and waiting Nearly half of consumers are happy to provide retailers with their personal information as long as it results in a truly personalized offering; and more than 60% would increase their purchases if they were offered a personalized subscription program. Accenture. November 2013 Survey of 15,000 consumers across 20 countries. As many as 59% of shoppers who have experienced personalization believed it had a noticeable influence on their buying behaviors. Retail Touchpoints. Consistency, Personalization Valued Most Among Consumers.
- 14. What is retailpersonalization? 14 KNOW YOUR CUSTOMER UNDERSTAND THE CONTEXT DELIVER SOMETHING OF VALUE TEST + REPEAT REMINDER: BRAND CONSISTENCY IS ALSO A CRITICAL COMPONENT
- 15. For better orworse: a personalization matrix 15 Warm Fuzzies So Creepy The Headlines • 6 things online retailers can learn from Amazon • How Target figured out a teen girl was pregnant before her father did • Shutterfly congratulates thousands of women for babies they didn’t have • Office Max blames data broker for ‘car accident’ letter Spot OnMissed the Mark
- 16. Why is itso challenging? 16 While consumers have expressed growing interest in receiving personalized offers, only 8% of retailers rate themselves as being effective at personalization. Gartner. “Predicts 2014: Digitalization in Retail” report. Over 63% of marketers express a need for better data and better marketing platforms to achieve effective personalization. Neustar. 2014 survey. DATA must be accurate, timely and relevant. must incorporate multiple sources (e.g., channel). SYSTEMS must support the complete personalization lifecycle. must consider CRM, loyalty, analytics, campaign management, real time offers. EXECUTION must be flawless and aligned with brand.
- 17. Before you getstarted … 17 Create your strategic roadmap. What is the business problem? What is the revenue impact if I solve this problem? What is a reasonable time-to- value?
- 18. Roadmap for CustomerAnalytics 360 Degree View of Customer • Single customer-centric view of customer including purchase data, demographic data, preference, contact information and loyalty card data. Predictive Customer Analytics • Define and understand customer segments • Predict what customers will do next including churn risk. • Understand customer recency, frequency and monetary behavior and other key attributes of individual customers. Integrated Omnichannel Communication • Select targeted offers for customers based on customer attributes and predictive analytics. • Manage customer communications across channels in an integrated and automated manner. Personalized Customer Offers • Recommendation engine that evaluates market basket and cohort purchase behavior that identifies other products that are appropriate for an individual customer. CLOSED LOOP FEEDBACK PROCESS
- 19. 19© Copyrights 2014| Manthan Systems Analytics and personalization in action Jose • Buys beer & prepackaged meals • Shops lower priced items pays full price • At risk for churn • “Entertainer” segment Sarah • Shops perimeter • Low frequency, shops 2 times per month • “Convenience” segment Holly • Buys wide range of categories • Lower than average market basket size • “Secondary Shopper” segment
- 20. 20© Copyrights 2014| Manthan Systems Analytics and personalization in action Churn prevention campaign • 20% churn rate • 1m customers total • Average annual spend of 3k per year per customer • Decrease churn by 5% • $30m in saved revenue Jose • Buys beer & prepackaged meals • Shops lower priced items pays full price • At risk for churn • “Entertainer” segment Sarah • Shops perimeter • Low frequency, shops 2 times per month • “Convenience” segment Holly • Buys wide range of categories • Lower than average market basket size • “Secondary Shopper” segment
- 21. 21© Copyrights 2014| Manthan Systems Analytics and personalization in action Churn prevention campaign • 20% churn rate • 1m customers total • Average annual spend of 3k per year per customer • Decrease churn by 5% • $30m in saved revenue • 15% of customers are low frequency • 1m customers total • Average spend is $35 per trip • Improve frequency 5% • $2.5m increased revenue annual Jose • Buys beer & prepackaged meals • Shops lower priced items pays full price • At risk for churn • “Entertainer” segment Sarah • Shops perimeter • Low frequency, shops 2 times per month • “Convenience” segment Holly • Buys wide range of categories • Lower than average market basket size • “Secondary Shopper” segment Campaign to increase frequency
- 22. 22© Copyrights 2014| Manthan Systems Analytics and personalization in action Churn prevention campaign • 20% churn rate • 1m customers total • Average annual spend of 3k per year per customer • Decrease churn by 5% • $30m in saved revenue • 15% of customers are low frequency • 1m customers total • Average spend is $35 per trip • Improve frequency 5% • $2.5m increased revenue annual Campaign to increase monetary • 10% of customers have lower market basket size • 1m customers total • Average spend is $20 • Improve spend by 20% • $7m increased annual revenue Jose • Buys beer & prepackaged meals • Shops lower priced items pays full price • At risk for churn • “Entertainer” segment Sarah • Shops perimeter • Low frequency, shops 2 times per month • “Convenience” segment Holly • Buys wide range of categories • Lower than average market basket size • “Secondary Shopper” segment Campaign to increase frequency
- 23. Churn reduction: 20% Saleslift: 8% Case Study: Retailer adopts Manthan solution: • Single view of the customer • Behavioral segmentation • Customer behavior understanding • Customer churn prediction • Affinity-based promotions execution • Best-in-class marketing reporting Succeeding with personalization YOUR Store
- 24. Global leader inretail analytics Vision Be the Chief Analytics Officer for the top companies in the retail & CPG industry Method We bring fundamental change in the way analytics are bought, used, applied, and benefitted from CUSTOMER ANALYTICSMERCHANDISE ANALYTICS Store Ops Finance eCommerce Analytics Know your Customer… Establish a Dialogue Optimize buying, selling, pricing, assortments, placement DATA & PROCESS COLLABORATION PLATFORM & ANALYTICS Analytics Platform for Data Insights, Monetization and Collaboration TargetOne Loyalty247 Customer360 Vendor Insights Vendor LinkFuel Analyzer Chief Analytics Officer for 120 businesses
- 25.
- 26. #RetailRoadMap Q & A // Panelists Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR Hillary Ashton VP of Customer Analytics Manthan Systems
- 27. #RetailRoadMap Thanks For Joining Us! h8p://rtou.ch/retail-‐personaliza3on View this presenta=on on-‐demand at: