The future of data for retail

Jason Nathan

Global Head of Data

22

The size and complexity of big data continues to amaze

MULTIPLYINGSOURCES

EXPONENTIALVOLUME

INCREASEDCOMPLEXITY & VELOCITY

Credit Cards Company Systems

Internet Browsing / Clickstream

Social Networks Mobile &

Smart Devices

Applications

Global Production of Data Zettabytes pa

Mobile & Online Browsing Data Exabytes pa

+40%

+37%

“internet of things”

Complexity

Videos Reviews GeolocationImages Daily Real Time

Velocity

3333

I am going to concentrate on three facets:

Privacy and the future of the Data Marketplace

Organisational Data Capability and what it enables

Building high value Data Assets

4444

Organisational Data Capability and what it enables

55

Abi

lity

to c

aptu

re s

uper

ior v

alue

Capability level

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

LEVEL 5

Advanced Data Capturing and utilising data beyond Core management (i.e. Customer, digital and competitor data.

Joined Data Data joined using Customer, Product, Store keys to allow for deeper analysis of behaviours and performance.

Enriched Data Data joined and enriched (segmentations, scoring) continuously;enrichment used for reporting, analytics and activation.

Data Partnerships Enriched data used to drive a self-sustaining commercial relationship ecosystem.

Both enables the consumption of new data (i.e. social) and monetisation of existing organisational data.

Essential DataCore Sales, Product and Stores data captured and used for reporting.

The history of data in retail is reflected in the organisational capability of retailers

66

A robust data strategy is the foundation for unlocking the value of customer datadunnhumby uses six dimensions to evaluate a retailer’s fitness for the future of data

7777

Building high value Data Assets

8888

The connected customer generates more data than ever before

9

lifestyle

what

who

where

life stage missionservices

out of store

needs

online

day of week

how

offline

Partnerships enable us to better understand and engage throughout the shopping eco-system

remind

delight

selection

save time

curate

inform

flexibility

reward loyalty

ask

comment

notice

consider

need

pick

paycheckout

obtain

use

share

options

surprise rewards

new products

recognize

save money

reject

segment

search

pick

visit

time of day

in-store

interests

time of year

when

behavior

plan

rewards

Multichannel Shop Ecosystem v2.0 occasion

connect

surprise

community

discover shop buy reflect

appreciate

help

products

10

Long Loop

Short LoopAbility to

Activate

Different data latencies matter for their ability to make decisions for customers

1111

example: using clickstream data to understand how customers shop a category online

11

Insights: Over and under performance online Breakdown of purchasing across key site

areas Breakdown of browsing across key site areas Benchmarking versus total Groceries

purchasing behaviour

Actions: Create a priority list of category opportunities Create case for taxonomy change Support development of annual media

planning

1212

example: optimising search results, based on customers’ real search terms

12

Insights: Excel based tool Product performance within the top category

search terms Top search terms by product Importance of search to your products

Actions: Optimise product descriptions (Brandbank) Use common misspellings to identify search

thesaurus entries Prioritise acquisition of sponsored search terms

(where available) and inform SEO Inform brand messaging based on customer

language

1313

Privacy and the future of the Data Marketplace

14

Transparency through simple and clear T’s and C’s

Level and type of activity – relevant offers and content , right frequency, appropriate channel

Security needs to be the top hygiene factor – rigorously embedded across the organisation

Security, transparency and activity are key to customer trust

Transparency through clear messaging of usage of their data and the value it delivers

Pricing is a particularly sensitive topic for customers so transparency is critical to earning trust

15

A growing number of start-ups have identified the opportunity

Connect, Learn & Earn:“Unlock the power of your data, the world’s first personal data marketplace”. Connect social networks, banking, fitness, google+ and earn based on flat rate.“Rewarding you for your personal data. Discover what your data says about you and earn every time it is used”. Connect social, mobile, todo and browsers - insights generated and rewards provided.Handshake, facilitates direct conversation between companies and customers to gain insights and negotiate rewards.

Connect for Convenience: convenient management of loyalty programmes (120+), including points & rewards, and ability to use to scan – logs in on customer’s behalf“Life management platform” – connect social, comms, memberships, browser to make more convenient and co-ordinated. Get insights e.g. “life timeline”, and in future option to sell data.

Input for Security & Control: Not-for-profit “digital passport” to manually capture information, focused on convenience, security and control.

+more in beta testing/pilot phase

© dunnhumby 2015 | Confidential16

For more examples of how data can help provide a better customer experience, download one of our latest retail reports: How personalisation is changing Retail Pricing

The Social Economy

To learn how you can optimise your data asset, please contact: info@dunnhumby.com

Thank You