Jason Nathan
Transcript of Jason Nathan
The Multi Channel
ConsumerJason Nathan
Customers Exposed
October 2014
© dunnhumby 2014 | Confidential22
A Brief History of dunnhumby
© dunnhumby 2014 | Confidential33
© dunnhumby 2014 | Confidential44
We understand over 700 million customers
© dunnhumby 2014 | Confidential55
The proportion of web shoppers who have made grocery purchases online this year
10%
7%
7%
27%
10%
8%
33%
31%
11%
13%
Source: Planet Retail.
© dunnhumby 2014 | Confidential66
Insight enables us to understand and engagecustomers
CUSTOMER DATA
• Increased customer
lifetime
value
LONG TERM
CUSTOMER LOYALTY
• Data sources
CUSTOMER INSIGHT
• Basket segmentation
• Customer segmentations
• Customer DNA
ENABLES
• Enabling better business
decisions
• Building relationships with
customers
CUSTOMER
ENGAGEMENT
TO DRIVE
TO GROW
© dunnhumby 2014 | Confidential77
Every single one of these core principles is changing…
CUSTOMER DATA
• Continuous
• Promotes Advocacy
• Measured beyond
transactions
LONG TERM
CUSTOMER LOYALTY
• Richer Data Sources
CUSTOMER INSIGHT
• Strategic decision support
• Automated tactical output
• Predictive / Scenario
based
ENABLES
• Real Time Optimisation
• Highly differentiated in
store
• Personalised digitally
CUSTOMER
ENGAGEMENT
TO DRIVE
TO GROW
© dunnhumby 2014 | Confidential88
The fundamentals of the Shopping Trip remain unchanged
out of
store
remind
me
sales &
events
easy
rewards
no stress
respond
make me
look good
inspire
creativity
options
recognize
help
surprises
information
help
same
time
new
ideals
flexibility
connection
inspiration
selectgood
choice
feel
welcome
feel
supported
surprise
savings
suggestions
unexpected
rewards
save time
fix
problems
appreciate
me
flexibility
reward
loyalty
exceptional
service
suggest
ideas
ask my
opinion
appeal
flexibility
best
prices
interesting
range
save time
inform
flexibility
celebrate
savings
redeem
rewards
services
products
rewards
occasion
online
needs
segment
interests
fun
surprise
connect
simplify
curate
educate
delight
surprise
deals
selection
suggestions
new
products inform me
reward
comment
easy
search
buy reflectshopdiscover
day of
week
time of
day
time of
year
when
offline
what
how
where
who
lifestage missionin-store
lifestyle
behavior
© dunnhumby 2014 | Confidential99
Customers still take the same steps…
who
out of
store
remind
me
easy
rewards
no stress
respond
make me
look good
inspire
creativity
options
recognize
in-store
select
feel
welcome
feel
supported
unexpected
rewards
save time
fix
problems
appreciate
me
flexibility
reward
loyalty
suggest
ideas
ask my
opinion
appeal
save time
inform
flexibility
celebrate
savings
redeem
rewards
what
services
products
rewards
when
day of
week
time of
day
time of
year
occasion
online
offline
how
lifestyle
lifestage mission
needs
segment
interests
behavior
where
fun
surprise
connect
simplify
curate
educate
delight
surprise
deals
selection
suggestions
new
products
reward
comment
easy
search
surprises
information
help
connection
inspiration
suggestions interesting
range
help
new
ideals
good
choice
best
prices
flexibility
same
time
sales &
events
flexibility
inform me
surprise
savings
shopdiscover reflectbuy exceptional
service
© dunnhumby 2014 | Confidential1010
…but each step represents a touchpoint, of which there are more than ever before
© dunnhumby 2014 | Confidential1111
Mary, mum of 3,
is doing her
weekly grocery
online shop.
v
11
6.
Forget anything?
A Personalized Seamless
Multichannel Experience
Add items?
Bananas
v
v
At checkout, she gets a prompt that she did not order
one of her usual items. She adds it to her basket, and
places an order for click and collect the next day.
That night, she sees a new recipe
on a cooking programme. The
Tesco app on her smartphone
allows her to find the recipe and
easily add the ingredients to her
existing order.
The next day, she swings by
her nearest click and collect
store. On impulse she heads
into the store to pick up dessert
to go with dinner.
Walking past a new selection of store-brand
desserts, her smartphone buzzes with an offer to
try one item free for sharing the display with her
social network. She takes a picture and posts to
Facebook.
After posting, the coupon
automatically appears on
her phone, as she heads
to checkout with her
dessert and click and
collect items.
who need
shop online
remind
meflexibility
suggest
-ions
flexibilityconnectnotice
visit searchin-store
connect
social
share
notice
new
product
s
delight
pay obtainredeem
rewards surprise
deals
online
engage-
ment
selection
© dunnhumby 2014 | Confidential1212
out of
store
sales &
events
easy
rewards
no stress
respond
inspire
creativity
options
recognize
help
information
help
same
time
connection
inspiration
good
choice
feel
welcome
feel
supported
surprise
savings
suggestions
unexpected
rewards
fix
problems
appreciate
me
flexibility
reward
loyalty
exceptional
service
suggest
ideas
ask my
opinion
appeal
flexibility
interesting
range
save time
flexibility
redeem
rewards
services
products
rewards
occasion
online
lifestyle
needs
segment
interests
fun
surprise
connect
curate
educate
surprise
deals
selection
suggestions
new
products inform me
reward
easy
search
day of
week
time of
day
time of
year
when
offline
what
how
where
in-store
who
lifestage mission
new
ideals
celebrate
savings
flexibility
comment
surprises
make me
look good
best
prices
delight
behavior
select
save time
remind
me
inform
buy reflectshop
simplify
discover
By understanding the data we can know what drives behaviour at each step:
© dunnhumby 2014 | Confidential1313
The data generated by these touchpoints is a huge opportunity
What I See
/ Hear
Who I Know
How I
Decide
My Needs /
Preference
sWhat I LIke
Who I Am
Where
I Am
How I Shop
What I Buy
Clickstream
Media
Substitutes & Rejects
Product Attributes
Weather
Payment
Location – Micro & Geo
New derived “dna”
Recipes
Ratings
Call Centre
© dunnhumby 2014 | Confidential1414
• Time
• Point of entry
• Login details
• Device ID
• IP address
• Cookies
Clickstream is an under-used asset in the industry
14
• Shopping list
• Customer pref.
Transaction information not
captured by T-log snapshot:
• Add/remove from basket
• Details inc. offers
• Sequence
• Payment
• Browsing
• Searching
• Dwell times,
• Sequence
• Clicks
• Mouse-overs
What you actually
saw / unseen options:
• Content
• Prices
• Ranges
• Sequencing
• Ordering
Stored details
& session
details
Shopping
Details
Site Content
Details
Searching &
Viewing
Details
© dunnhumby 2014 | Confidential1515
Micro Locationing is a perfect example of the privacy / value tensions being played out today
14 Sensors!
Light sensor
Accelerometer
Gyroscope
Magnetometer
Barometer
Proximity
Touch screen
GPS
WiFi
Bluetooth
Microphone
NFC: Near Field
Camera (front)
Camera (back)
© dunnhumby 2014 | Confidential1616
The insight is clearly very valuable
Given: Grapes (3) --> Salad Mix (4)
100% Confidence Baked Sweet Goods (5) is visited next
© dunnhumby 2014 | Confidential1717
You can understand transition probabilities
Produce – Weekly Features 2.7%
Weekly Features – Produce 2.0%
In Store Traffic Flow based on Total Store Area Visits
How likely are shoppers
to go from one store area
to another?
© dunnhumby 2014 | Confidential1818
Measure effectiveness of in-store promotions & media
© dunnhumby 2014 | Confidential1919
But is the Customer Value Exchange good enough?
© dunnhumby 2014 | Confidential2020
To close: some other examples of new data and propositions
who
out of
store
remind
me
easy
rewards
no stress
respond
make me
look good
inspire
creativity
options
recognize
in-store
select
feel
welcome
feel
supported
unexpected
rewards
save time
fix
problems
appreciate
me
flexibility
reward
loyalty
suggest
ideas
ask my
opinion
appeal
save time
inform
flexibility
celebrate
savings
redeem
rewards
what
services
products
rewards
when
day of
week
time of
day
time of
year
occasion
online
offline
how
lifestyle
lifestage mission
needs
segment
interests
behavior
where
fun
surprise
connect
simplify
curate
educate
delight
surprise
deals
selection
suggestions
new
products
reward
comment
easy
search
surprises
information
help
connection
inspiration
suggestions interesting
range
help
new
ideals
good
choice
best
prices
flexibility
same
time
sales &
events
flexibility
inform me
surprise
savings
shopdiscover reflectbuy exceptional
service
© dunnhumby.com 2013 | Confidential21
COCA-COLA
PERU
Photobooth project encourages
Peruvians to smile
© dunnhumby.com 2013 | Confidential22
FETCH Personal buying app sources
lowest-priced garments
© dunnhumby.com 2013 | Confidential23
ORIGINAL
UNVERPACKT
Packaging-free supermarket opens
in Germany
© dunnhumby.com 2013 | Confidential24
MARK ONE &
FUSEPROJECT
Smart cup automatically detects
contents
© dunnhumby.com 2013 | Confidential25
WALGREENS Pharmacy chain debuts talking
prescription devices
© dunnhumby.com 2013 | Confidential26
WALMART Retailer's price comparison service
automatically reimburses shoppers
© dunnhumby.com 2013 | Confidential27
LA POLAR Retailer lets customers pay with a
fingerprint
© dunnhumby.com 2013 | Confidential28
FRESHDIRECT Grocery etailer and crowdfunding
site collaborate on food contest
© dunnhumby.com 2013 | Confidential29
OPTIMEYES Outdoor ads feature facial
recognition technology
© dunnhumby.com 2013 | Confidential30
MACY'S Department store launches cash-
free payments service
© dunnhumby.com 2013 | Confidential31
AMAZON Remote control facilitates smart
grocery shopping
© dunnhumby.com 2013 | Confidential32
KOKEN MET
AANBIEDINGEN
Mobile app generates recipes
based on supermarket discounts
THANK YOU !