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Improving Business Performance With Customer Insights
The webinar discusses the significance of leveraging customer insights to enhance business performance in retail, emphasizing the shift from product-centric to customer-centric strategies. It highlights the importance of data mining and predictive analytics in tailoring marketing efforts and understanding consumer behavior. Additionally, the presentation covers marketing solutions and the impact of personalization on customer loyalty and engagement.
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Improving Business Performance With Customer Insights
- 1. #RetailAnalytics Improving Business Performance With Customer Insights Presented by Sponsored by #RetailAnalytics
- 2. Welcome Webinar Attendees Type ques)on here #RetailAnalytics
- 3. Follow This WebinarOn Twitter #RetailAnalytics #RetailAnalytics
- 4. About Retail TouchPoints ü Launched in 2007 ü Over 23,000 subscribers ü To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP #RetailAnalytics
- 5. Panelists EricWilliams Anthony Volpe Former Executive VP Retail Analytics Evangelist and CIO SAS Catalina Marketing MODERATOR Debbie Hauss Editor-in-Chief Retail TouchPoints #RetailAnalytics
- 6. Improving Business Performance with Customer Insights atio n For the “ Me” Gener Company Confidential 2012 Enw advisors 6
- 7. Who is CatalinaMarketing • Founded in 1983 • Headquartered in St. Petersburg, Florida • $500+ million annual revenue • Privately held (Hellman & Friedman) • Invented consumer-based Marketing in early 1980’s ~ 27,000 US Grocery & Mass Merchants ~ 10,000 International (France, Italy, Germany, Belgium, Netherlands, UK, Japan) ~ 17,000 Pharmacy (US) Company Confidential 2012 Enw advisors
- 8. The World ofMarketing has changed and the Data required to operate has changed Mass Media continues Personalized, Behavior-Specific to Diminish in Targeting is Everywhere Relevance IN GS Y SAV WE EKL Online Wireless Social Networking Voice Mail Text POS Print Messaging Real Time POS Messaging Company Confidential 2012 Enw advisors
- 9. The “Me” Generationhas created challenges for traditional advertising media iPod iPhone My Television Facebook My Way Self Magazine Personal Trainer Personal Coffee Company Confidential 2012 Enw advisors
- 10. What Consumers Wantin Marketing Communication 1. Short and to the point 2. Choose to see when convenient for me 3. Personally communicated by trusted friends or experts 4. Information about price discounts or special deals 5. Customized to fit my specific needs and interests Source: Yankelovich Partners Marketing Receptivity Study And… maintain my personal information securely and use it appropriately Company Confidential 2012 Enw advisors
- 11. Customer Insights: Making Information Actionable Using Customer Insights to Move From Product Centric to Customer Centric Strategies Product is king … Customer is queen … This is who buys it This is what is important to her Company Confidential 2012 Enw advisors
- 12. Data and Technology • Three key examples of how data can change Marketing organizations – Data Mining and Predictive Analytics • The use of HPC and In-database technology – Offer Optimization • The use of Marketing Automation – The Brave New World of Media Optimization © 2012 Catalina Confidential Company Confidential 2012 Enw advisors
- 13. Predictive Modeling –Books / CDs / Movies Brand Buyer Likely to Buy Brand What is Predictive Modeling? A sophisticated method to identify and communicate to consumers who have never purchased your brand but are most likely to buy Predictive Modeling: 1) Greatly enhances trial efficiency 2) Excellent conversion rates after trial Likely brand buyers exhibit similar grocery 3) Increases “never buy” response rates purchase behavior as current brand buyers, only they have not yet purchased the brand Company Confidential 2012 Enw advisors 13
- 14. Making Consumer informationActionable Data Mining – Predictive Analytics Data mining allows marketers to focus their investments against most likely new customers “When consumers first try Coffee Mate or International Delight, they tend to remain loyal to that product. If we could only predict which households cream their coffee with milk we can attract them, but almost all households buy milk.” - Nestlé USA Company Confidential 2012 Enw advisors
- 15. Data mining allowedCatalina to predict and market to households lightening coffee with milk • Within Catalina’s household database – Use Behavior Activated Research (BAR) to conduct attitudinal study of a group of milk and coffee households – Identify those who lighten their coffee with milk • Identify similar households in Catalina’s database based on a predictive model • Apply impressions against identified groups • Measure changes in groups’ purchase behavior Company Confidential 2012 Enw advisors
- 16. Marketing Solutions forTop Industry Initiatives $7.83 $7.75 RECIPE $7.00 + RECIPE INCENTIVE CONTROL ONLY Precision Marketing Solution Average Dollar Sales Launching Find the people who care Advancing Tell them the day it’s in the store Precision Marketing Solution New Eat At Find the people who have the ingredients First an ad, then an incentive Items Home Give a cook-at-home-tonight recipe Result Recipe only or Recipe + Incentive Accelerated new item velocity Ongoing higher share Result $0.13 investment yielded $0.75 in sales Category Growth Brand Growth Purchase Cycle Compressed Volume Lift: Test vs Control Driving 50% Building 64.3% 65.2% Usage 72 35 61.8% & Category 54.8% Days Days Compliance Volume 16.7% 18.5% Precision Marketing Solution 8.4% 13.3% Educate with a series of helpful messages Reinforce benefits of regular regimen Bath Tissue Feminine Frozen Instant Care Waffles Coffee Result Company Confidential 2012 Consumers began to buy monthly, not bi- Enw advisors 16 monthly
- 17. Creating a UniqueCampaign for Each Segment $80 $70 $60 LOYALS AVG BASKET $50 SPLITS $40 $30 Occasionals $20 $10 $- - 1 2 3 4 5 6 7 Trips Per Month Splits Loyals Occasional $99/Mo $285/Mo $38/Mo 1.8 Trips 4.2 Trips 1.1 Trips 31% Sales 60% Sales 9% Sales Segment Create a Trip Recapture Stock Strategy More Trips Mission Up Categories Company Confidential 2012 Enw advisors 17
- 18. Tailor Your Communications Deliver customized incentives based on loyalty and category consumption Loyal Buyer of Retain & Own Brand Optimize Gain Occasional Buyer Share Buys Competitor Try Me Frequently Again! Never Buys Initial Own Brand Trial Company Confidential 2012 Enw advisors 18
- 19. Offer Optimization 1 2 3 4 5 6 7 Cereal $1 off $7 1 Carrots $1 off 2 lb Jam $1 off $3 Milk $0.50 off gal. OJ $1 off $7 Bakery $1 off $7 Cheese $2 off $7 Cereal $1 off $5 Carrots $2 off 3 lb Jam $2 off $4 Milk $1 off $7 OJ $1 off $5 FREE Muffin Cheese $1 off $7 Cereal $1 off $3 Jam $1 off $5 Milk $1 off $5 OJ $1.50 off gal. Cheese $1 off $5 FREE Salad Bag Jam $2 off $7 Milk $1 off $3 Cheese $1 off $3 Customer must qualify for 3 Offer Groups to get a distribution. If customer qualifies for more than 5, they should only get the 5 highest priority Company Confidential 2012 Enw advisors
- 20. The New Consumer Personalization (opt in, my communication style, recognize me, mass is noise) Company Confidential 2012 Enw advisors
- 21. Multi-Channel Shopper Platform DIGITAL TOUCHPOINTS Targeted Offers (Mobile, Kiosk, Screen, Apps, Email, NFC, (Relevant. Personalized. Timely.) etc.) Intelligent Shopper Solu)on PROCESS PERSONNEL TECHNOLOGY Company Confidential 2012 Enw advisors
- 22. Loyalty Marketing Continuum MarketImpact 5 Integrated Customer Marketing 4 One To One Marketing Programs Relevant Offers / Promotions based on Customer Purchase History 3 Customer Segmentation Based on Spending/Frequency, Product Preferences 2 Building Card Usage Regency/Frequency 80% + Sales on Card 1 Customer Sign-up Laying Foundation of Loyalty Database Commitment Company Confidential 2012 Enw advisors
- 23. Data gets youin the game Information provides the advantage Knowledge changes everything Thank You! Eric Williams Executive VP & CIO - Retired Catalina Marketing Corp. ENWill@aol.com Company Confidential 2012 Enw advisors 23
- 24. IMPROVING BUSINESS PERFORMANCEWITH CUSTOMER INSIGHTS A SOFT-LINES PERSPECTIVE Copyright © 2012, SAS Institute Inc. All rights reserved.
- 25. • Improved business performance requires insights Customer to be incorporated into critical decision processes Insights Are • The decisions to be impacted should drive the search for new insights Just That-- • Innovation is the key to continuous improvement Insights with Customer Insights C o p y r i g h t © 2 0 1 2 , S A S I n s©t u2012,ASAS t s r e s e r v e d . Copyright t i t e I n c . l l r i g h Institute Inc. All rights reserved.
- 26. Customer • Merchandising and Supply Chain have the Insights Can potential to be revolutionized Impact All • Progressive Omni-Channel initiatives will rely Aspects Of heavily on Customer Insights Retail • Marketing remains the most common application Copyright © 2012, SAS Institute Inc. All rights reserved.
- 27. CUSTOMER IMPROVING MERCHANDISING PERFORMANCE INSIGHTS Impact Localized Assortments Copyright © 2012, SAS Institute Inc. All rights reserved.
- 28. CUSTOMER IMPROVING OMNI-CHANNEL PERFORMANCE INSIGHTS Broaden Assortments by Properly Using E-Comm Copyright © 2012, SAS Institute Inc. All rights reserved.
- 29. CUSTOMER IMPROVING DESIGN PERFORMANCE INSIGHTS Capture Behavior and Sentiment in Design Copyright © 2012, SAS Institute Inc. All rights reserved.
- 30. High Performance • Behavioral data is truly Big Data Analytics • Failing fast is critical Supercharge • Innovations can incorporate a broader combination Customer of data elements than ever imagined Insights C o p y r i g h t © 2 0 1 2 , S A S I n s©t u2012,ASAS t s r e s e r v e d . Copyright t i t e I n c . l l r i g h Institute Inc. All rights reserved.
- 31. Q&A // SubmitYour Questions Type ques)on here #RetailAnalytics
- 32. Q&A EricWilliams Anthony Volpe Former Executive VP Retail Analytics Evangelist and CIO SAS Catalina Marketing #RetailAnalytics
- 33. Thank You ForAttending This Webinar You can download this presentation at: http://rtou.ch/ciwebinar #RetailAnalytics