the data-driven marketing revolution

The Data-driven Marketing Revolution

April 22, 2016

Agenda

• The country store• Today – Too much information, not enough

time• Data changes everything• Creating customer connections• Who does this right?

Corner Grocer vs. Today

Corner Store Grocery Store 2016

Owner at the door Owner is big corporation

800 SKU’s 30,000 SKU’s

Orders and holds items for customers Broad inventory, hope you find what you need

Recognizes customers The faceless consumer

Consumer benefit – recognition and personal attention

Lower prices and broad array of merchandise

Word of mouth marketing Mass media

Too Much Information

Customer Touchpoints

Data Changes Everything• Moore’s Law applies to processing power and to storage as

well– The number of transistors in a dense integrated circuit has

doubled approximately every 2 years• Expanded use of advanced analytics• Increase in – Ecommerce (and e-business in general)– Mobile (smart phones and tablets)– Social media– Chat

• “Big Data”

Implications

• Inexpensive storage means companies can afford to house data from all these touchpoints

• Faster processing means that companies can churn through the data in a reasonable time

• Advanced analytics permits marketers to make sense of that vast quantity of data

Creating Customer Connections

• Customer data can be used to reinforce brand value and positioning

• The Ultimate Positioning – “You Know Me”• How do you deliver on “You Know Me”– The Right Product to the Right Customer in the Right

Channel with the Right Offer at the Right Time”• Stop selling what you want to sell; sell what the

customer needs when the customer needs it.

Right Product

• Use history and patterns– History• When does their product wear out?• What “goes” with their past purchases• Does their purchase need maintenance

– Patterns• What behaviors are exhibited by customers with similar

spending patterns

Right Customer

• Use history and patterns– How much has that customer spent in the past

and for how long– Based on similar customer behavior, how likely is

that customer to maintain or increase spending• Purchase patterns• Other identifiable behaviors• Psychographics/demographics

Right Channel

• Customers purchase in the channel they prefer, not the channel the company wants them to

• But…multichannel customers are the most valuable

• Pattern matching can identify customers wit propensity to become multichannel

Right Offers

• Key is to drive incremental transactions with the least discount or expense possible

• Testing offers using an A/B methodology can provide that insight

• Don’t train high value customers to wait for purchases

Right Time

• Timing is a critical component• Testing can inform when a particular customer

segment would be ready to make their next purchase– Time between purchases driven by many factors • Expense• Change in need state• Offers (etc.)

Who Does This Right• Domino’s Pizza– Can order pizza on Twitter, Facebook, smart watches and

car entertainment systems (Ford’s Sync), as well as web site and phone

– Track data from text, Twitter, Pebble, Android, as well as purchases from online and phone

– Supplement data with demographic and psychographic as well as competitor purchases, then household the data

– Consumers receive different offers – coupons and product offers, based on segments