SummitUp The Digital Challenge January 7, 2014
The Digital Challenge With all the tools, technology, and tactics, how do you keep the customer at the center? 2
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dunnhumby’s Context
24 Years … 28 Countries … 1,000s of Clients 400,000,000 Customers … All Media Channels 3
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The Customer
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Customer = CMO
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You Have to Earn It
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Rewards Worth Earning Current Sales Potential Sales Customer Advocacy 7
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Relevance Wins
Campaign Events 8
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Or ‌
Source: The Times 19 Jan 05
Unaware, Unconcerned, Unable
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Digital Danger
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“Last year, the nation's top 100 retailers by e-commerce revenue sent recipients an average of 177 emails apiece, up 87% from 2007.” [and up 24% vs. last year]
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WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood” © dunnhumby 2013 | Source: Confidential
“More than 500 Emails apiece” 13
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Deleted, Detested, Delisted 14
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Customer Reaction to Retailers’ Emails
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National average
2011
2012
% Chg.
Email open rate
17.1%
21.3%
+25%
Click through rate
3.1%
3.8
+23%
Source: / Harte © dunnhumby 2013 | WSJ Confidential
Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
49% of unsubscribers from permission emails: Content was repetitive or boring over time
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22% of US Internet users stopped buying from a company:
too many or irrelevant emails 1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions 16
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2
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It doesn’t have to be that way Purchase behavior driven via targeted email contacts 60% 50% 40% Response Rate
30% Email
20% 10% 0% 1st
2nd
3rd
4th
5th
Number of Emails Received
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6th
If your digital marketing is relevant, more contact can improve perceptions
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What are “they” doing wrong… and why? 19
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Big Data, Small Thinking
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Wrong Data and Insights
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Inputs, Not Outcomes
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Wrong Channel
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Wrong Rewards
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Exactly right for each customer all the time 25
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Ensure that each element of the program is relevant to customers
Right Consumer
• Loyal vs. Non-Loyal • Target based on purchase behavior
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with the
Right Message
• Content • Occasion • Offer
© dunnhumby 2013 | Confidential
using the
Right Vehicle
• Direct Marketing • Email / Digital • CRM • TV / Mass
at the
Right Time
with the
• Daypart/Week • Path to Purchase • Seasonality
Right Results
• Test vs. Control • Measure incrementality
Digital Coupon Relevancy
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Better Approach Yields Better Results Multi-Brand CPG CRM Multi-Cell Test
112%
Sales Uplift vs. Control
Factor
Lagging
Leading
Target
Demos
Purchase
Activation
One-off
Ongoing
Measure
Redemption
Sales
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8% Lagging
Leading
14X Greater Sales Lift
On-line Advertising: Purchase-Based Targeting Makes it More Effective +163%
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+121%
+28%
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W 18-49
W 18-49
M 18-34
A 25-54
W 18-49
W 18-34
W 25-54
W18-44
TV advertising – ROI among each Brand’s unique purchase-based target exceeds demographic
Customer-centric Digital Marketing 1. Culture: Earn customers’ lifetime value 2. Customer first – not brand, not store 3. Leverage shopping, media, context insights 4. Content that delights and excites 5. Media that reaches and engages 6. Measure incremental sales and advocacy 31
© dunnhumby 2013 | Confidential
Thank you allen.mason@us.dunnhumby.com @allenrmason
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Digital Campaigns Loyal Customer Mailing
Themed Event
Solo
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