Reaching For Retail Nirvana
#RetailNirvana WEBINAR SPONSORED BY
Be7er Leverage Data To Help Iden?fy And Engage Your Valuable Shoppers
#RetailNirvana
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#RetailNirvana Retail TouchPoints: @RTouchPoints
Equifax: @Equifax
#RetailNirvana
About Retail TouchPoints
ü Launched in 2007
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insightful content across a variety of
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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
Confidential and Proprietary
It’s Also Important After A Purchase
49% want retailers to consider in-store
purchases while marketing to them
afterwards
The e-tailing group
Confidential and Proprietary
Shoppers Are Willing To Share Data
• Gender (65%) • Age (53%) • Contact information (52%)
Accenture Personalization Survey
Confidential and Proprietary
88% want control over how their data
can be used
Accenture Personalization Survey
But Only To A Certain Extent
Confidential and Proprietary
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
Confidential and Proprietary
REACHING FOR RETAIL NIRVANA
Better Leverage Data To Help Identify and Engage Your Valuable Shoppers
Confidential and Proprietary
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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Confidential and Proprietary
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”
13
Confidential and Proprietary
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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Confidential and Proprietary
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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Confidential and Proprietary
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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Confidential and Proprietary
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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Confidential and Proprietary
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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Confidential and Proprietary
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
19
Confidential and Proprietary
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
Confidential and Proprietary
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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Confidential and Proprietary
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
22
Confidential and Proprietary
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.
Confidential and Proprietary
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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Results may vary based on actual data and situation.
Confidential and Proprietary
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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Results may vary based on actual data and situation.
Confidential and Proprietary
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,
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
27
Confidential and Proprietary
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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Confidential and Proprietary
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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Confidential and Proprietary
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
Rethinking Retail. Reimagining The Customer Experience.
retailinnova?onconference.com
June 16-‐17 // NYC
FEATURING:
Confidential and Proprietary
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
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