It's Digital, but is it Personal?

© dunnhumbyUSA 2013 | confidential

It’s digital, but is it personal?


dunnhumby’s context

24 years

28 countries

1,000s of clients

400,000,000 customers

All media channels


Customer = CMO


Earn It


Three Prizes

1.Current sales

2.Potential sales

3.Advocacy


Household Response Rates

20.0%

22.7% 22.7%21.5%

27.2%28.7%

33.3%35.7%

42.1%

49.0%

64.2%63.1%62.7%

59.6%58.4%

55.6%56.2%

52.6%52.6%49.5%

49.2%

18.4%17.0%16.0%15.0%

16.0%18.0%

0501 0502 0503 0504 0601 0602 0603 0604 0701 0702 0703 0704 0801 0802 0803 0804 0901 0902 0903 0904 1001 1002 1003 1004 1101 1102 1103*

Relevance wins

Campaign events


Source: The Times 19 Jan 05

Or …


Digital Danger


“Last year, the nation's top 100 retailers by e-commerce

revenue sent recipients an average of 177 emails

apiece, up 87% from 2007.”

Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”

[and up 24% vs. last year]


“More than 500 emails apiece”

Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”


Deleted, Detested, Delisted

© dunnhumbyUSA 2013 | confidentialSource: WSJ / Harte Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”

Customer Reaction to Retailers’ Emails

National average1st half 2007

1st half 2011

% Chg.

Email open rate 19.0% 12.5% -34%

Click through rate 3.9% 2.8% -28%


49% of unsubscribers from permission emails: Content was repetitive or boring over time1

22% of US Internet users stopped buying from a company:

too many or irrelevant emails2

1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions


14

It doesn’t have to be that way


If your digital marketing is relevant, more contact can improve perceptions

15


Unaware, Unconcerned,

Unable


What are “they” doing wrong,

and why?


Big data

Small thinking


Wrong data and insights


Personalization ≠ Algorithms


Inputs, not outcomes


Wrong Rewards


Exactly right for each shopper all

the time


1. Culture: Shoppers’ lifetime value

2. Shopper 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

Here’s what we’ve learned about making digital personal


Making digital personal

1.Brand CRM program

2.Display advertising

3.Advocacy and user content

4.Integrated loyalty approach


Brand CRM programs: From good to great

26

Lagging approaches to targeting, activation, and

evaluation

Leading approaches to targeting, activation, and

evaluation

• Demographics and claimed behavior

• Purchase behavior, plus additional contextual data

• Responsiveness to standard offers

• Responsiveness to all media stimuli and personalized offers

• Redemption behavior • Sales uplift


A better approach yields better results: Multi-brand CPG CRM multi-cell test

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Lagging approach Leading approach

+8% sales uplift vs. control

+112% sales uplift vs. control


We know display advertising can

build sales


On line advertising is more consistent in driving off line sales than TV

TV (IRI)

Internet(comScore)

36% 80%

% of campaigns with a statistically significant off-line sales lift


On-line display advertising: Purchase-based targeting makes it more effective

● Yogurt brand– Campaign results including all targets +1.9% uplift

– Only purchase-based targets (38% of original) +5.0% uplift

– Improvement from better targeting +163%

● Toothpaste brand– Campaign results including all targets +2.4% uplift



● Soft Drink brand– Campaign results including all targets +8.8% uplift



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Next generation advocacy


The new Word of Mouth approach links shopping insights to targeting, evaluation

Case Study: Supporting a new product launch

Targeted BzzAgents • Based on categories, brands, and products of interest

Strong Agent engagement

• Based on relevance of the sampled product

High volume reach • Reached over 1,000,000 people, at 228 network contacts per Agent

Measurable sales impact

• 18% increase in dollar sales vs. control• $14:1 sales-to-cost ratio


Targeted Word of Mouth also delivers new learning and user generated content

Unilever Insights from Shopper Marketing

Lowered soup salt content Changed deodorant fragrance

Changed language from “baking bags” to “cooking bags”

Pulse Dashboard • Social media monitoring technology • Integrates social and purchase data

Tracks activation • Samples to BzzAgents; Agent and network reactions

Content rich • Unrestricted access to tweets, posts, photos, reviews, and recommendations shared by agents

Benefits • Learn how consumers actually use your products• Verbatims for use in future marketing• Learn what they like / don’t


Integrated loyalty approach


Insight: Even Raley’s best customers spend only ~60% of their eligible dollar at Raley’s

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What we earn now from our

existing customers

Spend with competitors for

items we sell

+ =

Our customers’ total grocery spend


●Launched Something Extra, Fall ‘12

– A personalized Rewards voucher every 3 months that can be redeemed in store

– Personalized Offers based on purchase behavior

– Earn Extra Points every time they shop

– Inspired Ideas and Extra Surprises

Raley’s knew that a loyalty approach, not just a loyalty program, was required


Combines loyalty and advocacy to deliver on the promise of ‘Something Extra’

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Increase LOYALTY of Raley’s Best Customers

Cultivate ADVOCACY for Raley’s and their CPG partners, both online and offline


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February email

Distribution and Participation Metrics

Participation rates for monthly Best Customer Communications are around 50%


Something Extras Try-it combines shopper data with WoM to drive sales, engagement

Increase LOYALTY of Raley’s Best Customers

Cultivate ADVOCACY for Raley’s and CPG partners, both online

and offline


A primarily digital experience allows content to be easily shared, online and offline

4040


Try-it Screenshot – ‘My Score’ Page

The platform is built to weed out people who just want free stuff

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A modest number of advocates amplifies the message, engaging a large community

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Screenshot from the Try-it ‘Pulse’ Measurement Portal


1. Culture: Shoppers’ lifetime value

2. Shopper 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

Making Digital Personal


Thank you

[email protected]

It's Digital, but is it Personal?

Technology

Transcript of It's Digital, but is it Personal?