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How Predictive Analytics and Real-Time Marketing are Changing the Face of Loyalty Don Smith SVP, Consumer Insights
Professor’s Institute, January 2014
For the Marketer - Loyalty Programs Add Value Beyond Revenue Loyalty programs provide identity and customer-centric data and insights that align businesses and company decisions based on “one truth” – single view is an essential pre-requisite.
Mobile
Customer-centric experiences: Enable a customized and improved customer experience across all channels in realtime conversations.
In-Store
Social
Direct Mail
Web
SMS Offers
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Influencing the Customer Journey‌
Single View of The Customer: Then and Now
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Presentation Focus: Online Engagement and Social Media
Web Analytics/Site Browsing Social Media Engagement
These 2 channels are now prevalent, but marketers have been slow to capture and leverage true customer‐level data.
Outline for Presentation Part I: Web Analytic Data
Case Studies
Getting Started: Implementation Capture Mechanics EDA, Data Audition/Reduction Aggregation and ETL Leveraging the Data Segmentation Engagement‐Conversion Modeling Enhancement
Retail Fashion Apparel
Part III: Additional Touch Points
Part II: Social Site Data
Getting Started: Implementation Social Login/API Mechanics EDA, Data Audition/Reduction Aggregation and ETL Leveraging the Data Profiling and Segmentation Engagement‐Conversion Modeling Enhancement
Part IV: Real‐Time Case Study
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Part I: Customer-Centric Web Analytics
Phased Approach to Click-Stream Integration
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Getting Started: Capture Mechanics 1
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2
4 Hosted Click-Stream Data
CRM
CRM
Customers opt-in to customized web experience (via ‘Remember Me’ tracking selection).
Customers visit ecommerce site. Web analytics tool records browsing details.
Web analytics tool stores all clickstream data – linking it to customers’ CRM IDs.
Click stream fields transferred; ETL process aggregates data at customer-level and stores in CRM DB.
EDA, Data Audition/Reduction: Examples from Retail Apparel • Extensive exploratory data analysis of > 165 straight fields from Omniture menu > > 300 different combinations of derived measures > 1-year time-series activity for >1.5 million guests
• List winnowed down to a manageable size > ‘Dirty Dozen’ raw data fields to > derive ~20 key predictor variables which > are updated daily and housed in larger CRM database
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Leveraging the Data: Engagement-Conversion Analysis • Engagement-Conversion Analysis: Process by which online brand engagement is matched to overall customer spending (across purchase channels) to derive focused tactics for value migration.
Leveraging the Data: Predictive Model Enhancement (continued) • Average Performance Lift by Model Type
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Leveraging the Data: Value of Engagement-Conversion Marketing Focus • Digital Brand Engagement Lifts Customer Value for Retail Fashion Clients
Leveraging the Data:
Using Site History to Drive In-Store Traffic Track guests’ site browsing histories to identify key conversion opportunities
Leverage engagement segments to identify optimal delivery channels
Serve personalized instore conversion offers with strong CTA In-Store Try-On Offer for Jeans
3x lift over control
4.5x lift over control
+
or
Suit Offer with Free Accessory with In-Store Purchase
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Part II: Using Social Networking Data
Getting Started: Capture Mechanics – Enabled by CRM & Loyalty 1
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4 SNS
X CRM
Brand integrates ecomm site with SN Service – app creation, social login and linkage icons.
Logged-in CRM guest establishes SNS association with brand via linkages – customer grants permissions on SNS and returns to brand site.
Brand calls to SNS via API to pull a customer’s available data fields – member identified via SNS token.
Customer SNS data stored in CRM and refreshed following recurring ETL schedule.
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Getting Started:
Capture Mechanics – Enabled by Social Tools • New Tools Enable Aggregate Listening as well as Customer-Centric API Integration > Audition process is still necessary to incorporate key fields > Tokenized tracking across SNS sites increases complexity
Brierley LoyaltyWare, powered by MutualMind
EDA, Data Audition/Reduction
• SNS Data Audition > Follow our 6-Step Audition Process > Begin with a Single SNS Service/Site - Twitter is easy to access - Facebook has a rich field of offerings
> Add Additional Sites Iteratively - Maintain handle maps or token translations
> Test ‘Free’ Data Before Paying for Measures
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Leveraging the Data: Segmentation • Begin with Existing Segmentations > Append Segment Profiles with SNS Data
• Develop New SNS Engagement Segmentations > LOE and ROI Are Inversely Related
Leveraging the Data: Predictive Model Enhancement (continued) • Average Performance Lift by Model Type
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Part III: Additional Touch Points
Customer Journey Channel Incorporation Call Center
Mobile App
Key Fields:
Key Fields:
Frequency, Wait Time Duration, Resolution
Action Flags:
Actions:
locator; buy; search; -in
Recognition Flags – VIP and complainer; RT CSR Messages – context + history (RTIM)
Actions:
Feed Next Best Action and propensity models Personalized Offers geo-fenced + context
Survey/Profile
Key Fields:
Demos, NPS, SOW, Brand Affinity, Product Interest
Actions:
SVOC Profile Enhancement Tracker Panel Recruitment Sourcing: CRM and Loyalty
Kiosk
Key Fields: Demos, CS/NS Planning, SOW, Potential Value
Actions:
Inform 360 SVOC and Next Best Action models Sourcing: CRM sign-up and loyalty enrollment
Counter/POS/CSR Key Fields:
Up-sell flags; DM Capture; Loyalty Enrollment
Actions:
Real-Time Messaging CRM Capture and Opt-In Personalized Tactics
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Case Study: Symbiosis of Loyalty & CRM
Incorporating Touch Points for Member Engagement and Coattails for Non-Members Program Engagement Component
Member/loyalty Impact
Reward for Online Product Reviews
Encourage In-Store Check-in at POS
Non-Member/Loyalty Coattail Effect
300% increase in number of reviews posted by members
Incremental transaction for 1 in 4 participants – Enrollment driver (highest rated program component)
Incent Social Media Linkages and Viral Marketing
Doubled the number of Twitter followers in 1 year – Tripled the number of retweeted promotions
Promote SMS Opt-In
Tripled the SMS-marketable audience (1 yr)
Increased ecomm sales conversion – 12% lift in key-margin merchandise categories. Enhanced purchase path patterns applicable to larger CRM audience – Linked to increased mobile app adoption Viral sourcing contributed to better than 250K new CRM customers – Steady YOY rise in SOC
SMS optimization allowed increase in direct mail/email investment for non-members
Part IV: Real-Time Case Study
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Questions
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