Reaching For Retail Nirvana

Reaching For Retail Nirvana

#RetailNirvana WEBINAR SPONSORED BY

Be7er Leverage Data To Help Iden?fy And Engage Your Valuable Shoppers

#RetailNirvana

Welcome Webinar A7endees

#RetailNirvana

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#RetailNirvana Retail TouchPoints: @RTouchPoints

Equifax: @Equifax

#RetailNirvana

About Retail TouchPoints

ü  Launched in 2007

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ü  To provide executives with relevant,

insightful content across a variety of

digital medium

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#RetailNirvana

Panelists

Jason Norfolk VP, Product Management

IXI Services

Lena Bourgeois VP, Consumer Market Group

IXI Services

MODERATOR

Alicia Fiorletta Senior Editor

Retail TouchPoints

Confidential and Proprietary

Consumers Want Personalized Experiences While They Shop

50% of consumers want retailers to use their

information to create a better overall experience

The e-tailing group


It’s Also Important After A Purchase

49% want retailers to consider in-store

purchases while marketing to them

afterwards

The e-tailing group


Shoppers Are Willing To Share Data

•  Gender (65%) •  Age (53%) •  Contact information (52%)

Accenture Personalization Survey


88% want control over how their data

can be used

Accenture Personalization Survey

But Only To A Certain Extent


The Goal: Always Provide Value

I’m comfortable having my shopping interests and behaviors used by retailers… •  To expedite my shopping experience on site

(60%) •  So they can deliver relevant offers (60%) •  In return for a more personalized experience

(58%)

The e-tailing group


REACHING FOR RETAIL NIRVANA

Better Leverage Data To Help Identify and Engage Your Valuable Shoppers


Retailers employ best practices to aim for an ideal state:

A single view of customers which can enable: §  Better customer engagement §  Increased customer spend §  Enhanced brand loyalty §  Higher conversion rates

Interact with customers more seamlessly

Better leverage insights enterprise-wide

Measure and track effectiveness

Reaching for a Retail “Nirvana”

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Interact with them through §  Multi-channels §  Devices §  Locations

Understand them §  Their personal needs and tastes §  Their purchase history §  When they are ready to make a new purchase §  What might be good new product options for them

Respect their privacy and personal data

Make it easier to do business with you

Customers’ Idea of Their “Nirvana”

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How can retailers move towards a better state?

Better leverage your in-house data

Help tie it together and add actionable third-party data

Inform customer touch points §  Marketing §  Online / digital / social media §  Stores §  Call center §  Merchandising §  Branding §  Real estate

Strive for “Personalized Marketing”

Reaching For Nirvana…

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Departments have adopted various solutions to help understand their customers & prospects Each department has its own needs and objectives:

§  Branding – Promoting consistent image §  Promotions – Delivering effective campaigns §  Online – Optimizing site experience §  Merchandising – Maintaining

best merchandise mix §  Call center – Enabling positive

customer interactions §  Real estate – Finding profitable

location Systems can be “siloed”

What Are Retailers Doing Now?

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Loyalty programs §  Detailed information – on generally a small segment of your customers

Transactional data §  High volume of purchases §  Track customer purchase patterns §  Limited customer demographic detail §  Don’t know much, if anything, about prospects

House cards §  Creditworthiness – but perhaps not a complete picture §  Small segment of your overall customers

Third-party data §  Attitudinal – but typically not WHO or WHERE they are §  Geo-demographic – commodity data

You may have fragmented views of your customers…

Siloed Systems Have Only Part of the Picture

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Differing objectives by department §  Multiple solutions §  “Silos” of data §  Many different data types §  Databases may not be linked §  Difficult to leverage by multiple stakeholders

Not sure how to leverage the data §  May not assist with corporate strategy §  Doesn’t help improve customer experience

Incomplete view of customers and prospects

Fragmented Views Can Create Potential Problems

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Enhanced corporate strategy §  Leveraging most or all departmental data

–  Branding / Marketing / Online / Social –  Operations –  Merchandising –  Real estate –  Call center

§  Layering in actionable third-party data

Single view of customer §  Prioritize best customers & prospects §  Understand their motivators and drivers §  Improve customer experience §  Optimize marketing promotional and departmental budgets

Measure & track

What Best Practices Are Possible?

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A framework that can help augment, leverage and connect data across departments

Helps to generate a 360 degree view of the customer

Can support cross-departmental insights for marketing and business decisions Incorporates latest data types §  Not just ZIP+4 but now

Household-level

Syndicated Segmentation Framework

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Household Economics - A critical addition to the mix Not All Segmentation Data is Created Equal

Syndicated segmentation typically contains:

§  Age, demographics, lifestage, geography,

§  Links to attitudinal & behavioral survey information

§  …but they only tell a portion of the story

Household economics data adds value with estimated:

•  Income from more sources

•  Discretionary spending capacity

•  Credit capacity

•  Ability to pay

The interdependencies in household economics are a major factor in consumer behavior.

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Household Economics

Income Spending

Credit

Attitudes & Behaviors

Marital Status

Presence of Kids

Geography

Age


Segmentation Framework Options

Geo-Demographic or Household Aggregated geo-demographic data

Geo-Demographic + $$$ Geo-demographic information paired with financial information

Economic-based Clusters Economic-based segmentation built using: - Direct-measured estimates of income and spending - Credit data to help complete the economic profile - Robust household demographics - Relevant behavioral and lifestyle data

Top Tier

Mid-Tier

Basic

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Analyze customer base to help identify high-potential customers and prospects Group customers with segmentation based on the core drivers of the business Design and implement relevant marketing plans (creative, channel, promotions, etc.)

Flexibility is Key

Who do I look for?

How do I communicate?

Creative, channel, message

Traditional Marketing

Online Targeting

Evaluate results and refine using segmentation; Use Onboarding and Closed Loop Attribution to improve overall Digital Targeting

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National Retailer Attracts Desirable Customers Used basic segmentation for direct marketing programs for years §  Unsure if they were they reaching the desired customer

Tested overlay of household economic data on best customers to better understand their “economic wherewithal” A / B test of direct mail campaigns - Household economic data vs. none Campaign using household economic segmentation system provided a lift in total actual purchases Retailer plans to continue using household economic data for additional positive results

Best Practice #1

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Results may vary based on actual data and situation.


Jewelry Chain Enables Digital Marketing Had success with offline programs §  Used segmentation with household economics for years §  Analyzed most profitable customers to develop profiles §  Applied profiles to prospects near store locations §  Implemented direct mail campaigns

Wanted to expand into digital targeting §  Applied offline profiles to online prospects

§  Developed programs with a consistent, omni-channel message with the aim to –  Reach the right customers –  At the right time –  With the right message

Best Practice #2

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Merchandising Lift with Segmentation Retailer stocked all stores with the same merchandise §  Sales results varied by store

Applied segmentation to differentiate store traffic §  Generated customer profiles per location using household economics

Executed new merchandising strategy by applying profiles

Sales increased in previously lackluster stores

Best Practice #3

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Why is Segmentation So Important?

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Customer Knowledge

Economic Capacity: Income, Spending,

Ability to Pay, Credit lines, balances

Lifestyles: Shopping, Travel,

Leisure, Auto, Dining, Technology

Media: Mix & Genre; TV,

Print, Online, Radio, Outdoor

Channels: Brick & Mortar, Online, Mobile,

Mail

Psychographics: Beliefs, Attitudes, Values, Interests,

Opinions, Perceptions,

Personality traits

In-house: Customer

Transaction Data

Market Sizing: Urban / rural,

Density

Bringing A 360 Degree View of the Customer

Geo-demographic: ZIP+4, Age,

Marital status, Children

Home ownership: Mortgage balance,

Market value, Own / rent

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Effective Omni-channel Marketing §  Enhance CRM data with syndicated segmentation data §  Help generate a better estimate of each customer/prospect household §  Size the market for potential growth opportunities §  More effective onboarding §  Help deliver the right message to the

right consumer in all the right places –  Addressable TV –  Online ad targeting –  Email –  Mobile

§  Find more lookalike customers §  Robust reporting

–  Verification of digital audiences –  Closed Loop Attribution

Leveraging Knowledge Across Channels

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Business Application Marketing, Customer Analysts

Digital Marketing

Product Mgmt Sales Real

Estate Agency

Group Customers – Understand a fuller picture of household behaviors for more accurate predictive measure of how they will interact with you

P P P P

Market Analysis – Size markets for key target segments and help identify growth opportunities P P P P Product Alignment & Strategy – Determine a more effective merchandise mix and better match offers with appropriate customers

P P P P Cross-Sell / Up-Sell – Identify better cross-sell / up-sell opportunities based on the economic capacity of your customers

P P P P P New Customer Acquisition – Help identify households in desired target clusters and communicate more effectively with them

P P P P P P

Messaging and Positioning – Version creative and copy for better relevance to targets P P P P Channels and Media – Help match marketing / media channels to preferences of target segments P P P P CRM & Loyalty Optimization – Communicate with customers in a relevant tone, through relevant channels, with relevant offers

P P

Benefits For Multiple Departments

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Increase Your Understanding of Your Customers §  Insights: Help drive profitable relationships with better understanding

of customer information §  Better customers: Manage customer interactions to help increase their lifetime

value

Enhance Your Operational Efficiency §  Evolve operational models from focusing only

on supply chain efficiency §  Focus on uncovering new consumer demand §  Protect your highest lifetime value customers

§  Facilitate finding similar customers

Segmentation’s Value Proposition

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#RetailNirvana

Q & A // Panelists

Jason Norfolk VP, Product Management

IXI Services

Lena Bourgeois VP, Consumer Market Group

IXI Services

MODERATOR

Alicia Fiorletta Senior Editor

Retail TouchPoints

Thank You For Joining Us!

View this presenta?on on-‐demand at: h:p://rtou.ch/retailnirvana

Rethinking Retail. Reimagining The Customer Experience.

retailinnova?onconference.com

June 16-‐17 // NYC

FEATURING:


Thank You For Joining Us

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  Thank you for joining us for this Retail TouchPoints Webinar!

  This webinar has been recorded and will be available on-demand. You will receive a notice when the recording is available.   Or contact IXI Services with questions:

Lena Bourgeois [email protected] (Thought leadership and best practices) Jason Norfolk [email protected] (Applications and voice of customer)

Barrett Watson [email protected] (IXI products and services)

IXI Services, a division of Equifax Inc. - www.ixiservices.com

Reaching For Retail Nirvana

Retail

Transcript of Reaching For Retail Nirvana