1

24 X 7 RetailingIs it Working?

Peter.Charness@Manthansystems.com

2

Analytics for 24 X 7 Retail “The Opportunity”

• One Hour Offer Expires• The “100” Offer• Proximity & Behaviorally

Profiled Mobile Coupon

• The $55 TV• NASTYTWEET• (Was the product there to meet demand?)

• Did it Work?

3

The Balance is Shifting - 200 Years of Retail

Merch Mktg

4

The Old Way

• Merchants Rule• Retailers Sell what the Buyer Buys

– Marketing helps move the products that the customer didn’t understand……..

• Marketing Anniversaries old promotions– “Coordinates” Production

• No One is responsible for Stock Outs…….

5

Dramatic Change

The World We’re Leaving Behind

• Chain Level Assortments• Chain Level Pricing• A Few “Versions” of

Flyers• Mass Email• The Product Was the Sell

The New Reality

• Consumer Driven Product• Remix by Customer

– Stores– Web Experience– Pricing

• Time/Proximity/Attribute Based Offers

• Selling Customers “a few” at a time

6

Traditional Measures and Controls Fall Aside?

• From the CFO……

– Before:• Marketing can NEVER accurately project expenses• Open to Buy is NOT a GUIDELINE!

– Now:• You want more headcount for tweeting for the Merchants?• You want OTB just to support marketing initiatives?

M M

7

Performance Metrics

• Sales• GMROI• Operational Productivity

• Sentiment?– Returns, Repeat Purchases……

– One Unhappy Customer might tell 10 People– A Happy customer may tell one friend. – Complaints Department

• What you didn’t know probably couldn’t hurt you…..

8

Today “Sentiment” – Speed and Volume

• One-quarter of U.S. consumers are far more likely to spread the word about a bad experience or product than a good one, according to Colloquy's latest research into word-of-mouth sharing practices.

• “no name blogger” 61,000 readers/week• Tweets• Facebook• ……….

9

24 X 7 Retail

• Increasingly we sell what we influence and promote• One to One Marketing• More Marketing Budgets and Experimentation• The M&M’s – Unprecedented Coordination Required• Is it Working?

10

3 T’s Framework Measuring Success

Thinking

Talking

Transacting

11

Stage 1 - Thinking

Thinking reflects a consumer who is at a stage of interest about your company, or a product (that your company may sell). The consumer is assembling knowledge, rationalizing need, and while at the very front end of a purchase decision potentially on the path to purchase.

12

Stage 2 - Talking

Talking reflects interaction between consumers who have something to say about your company or product. While Talking has always occurred it has largely been invisible and impossible to measure..

13

Transacting

Transacting the ultimate measure of success being a margin rich transaction and a happy purchaser willing to be a repeat buyer. (Attribution of causality for the purchase is difficult)

14

MeasurementThinking = Brand• A brand is the essence or promise that a product,

service or company will deliver or be experienced by a buyer

• Brand Awareness Can Be Measured– Focus Groups, Impressions, – Page Views, Clicks, Search, Stickiness,

• Conversions, CPC

15

WSJ Today

16

MeaurementTalking - VFS• Social Widgets

– Volume– Frequency– Sentiment

• Tweets, Reviews, Likes, Blogs, Searches

17

MeasurementTransacting – Recording the Sale – New Dimensions

• Who Why

18

3 T’s Framework – Why did it Work?

Thinking• Page Views• Search• Clicks

Talking• Volume• Frequency• Sentiment

Transacting• Who?• Why?

19

Techniques for turning all this new data into profit

• Customer Segmentation Analysis – Who’s Buying?– Assortment– Sizes– Unequal Offer

• Promotion & Campaign Analytics – Why are they Buying?– Plan vs. Actual– Reasons for Success/Failure

• Margins, Sell Through, Stock Outs……..

• “Brand Analytics” VFS – What do they think about us?

20

New Methods for Information Delivery

• Packaged Solutions!• Aggregation• Exception Based Reporting• Alerts• Real Time Data

21

Is it Working? Promotions/Campaigns

22

Promotional Analytics

23

Customer Analytics

24

Questions?

• www.manthansystems.com