dunn humby present at the chief data officer forum europe

© dunnhumby 2014 | Confidential1

Driving value from data across the organizationMatt Keylock@mattkeylock


400 million customers

$300 billion retail spend

A global customer science company


3

Driving value in the “long loop” era

Data leadership in the connected world

Organization-scale approach

Considerations for the CDO

Today’s themes


Value from data in the “long loop” era


Sustainable value from customer data

Customer Data

enables

ImprovedCustomer

Understanding

Better BusinessDecisions

Loyalty /Brand Value

driving to grow…


Behavioural data enabled breakthrough

BehavioursAttitudes Drivers of behaviour Transactions Profit

● Customer behavioural data was the key to unlocking breakthrough value – Views of business not possible with financial data and metrics– Granularity and actionability that research and panel data can’t provide

● Powered growth of retailers like Tesco and Kroger


Knowing your best customers

% of Customers and Sales

42.4%

29.8%

26.9%

14.2%

23.5%21.4%

15.2%

8.3%

2.3%2.0% 2.0%

12.0%

0%

10%

20%

30%

40%

50%

SuperPremium

Premium Valuable Opportunity Potential Uncommitted

% of Customers

% of Sales

4% of customers = 41% of sales

1 Super Premium = 351 Uncommitted Customers


And understanding their needs O

VER

-IND

EXIN

GU

ND

ER-IN

DEX

ING

Price S

ensit

ive

Prom

otion

Sen

sitive

Adven

turou

sPre

pac

ked

Conve

nienc

eFr

esh

Kids Fuel

Calorie

Cou

nter

Coupo

n Red

eemer

Fines

t / Lu

xury

Fore

ignFa

ir Tra

deLo

ng L

ifeEar

ly Ado

pter

Big Box

Own Bra

nd/L

abel


To drive strategy and better measures

Sales

Time

Right customer strategy Right positioning, products,

packaging, pricing, promotion Targeted, relevant communications Improved operations and service

Business performance enabled by customer metrics

Business performance with just financial metrics

Normal sales line shows total customer sales

Early adopter

LoyalPrice sensitiveHealthy

Families

EthnicConvenience


enabling smarter actions

Cookies 200g

£200k/week

Products

Customer Loyalty to the product

Substitutability

Sales

Cookies with nuts 300g

£150k/week

Cookies in a Tube

£40k/week

Buy 40% of the time

High

Buy 35% of the time

High

Buy 90% of the time

Low

http://images.google.com/imgres?imgurl=houseofcladdagh.com/tasty_delights/mcvitieshobnobs.gif&imgrefurl=http://houseofcladdagh.com/tasty_delights/tasty_delights.htm&h=117&w=235&prev=/images?q=chocolate+hob+nobs&svnum=10&hl=en&lr=&ie=UTF-8

http://images.google.com/imgres?imgurl=www.uktoyou.com/images/food/f020.jpg&imgrefurl=http://www.uktoyou.com/shop/food.html&h=175&w=92&prev=/images?q=chocolate+hob+nobs&svnum=10&hl=en&lr=&ie=UTF-8

http://images.google.com/imgres?imgurl=www.irn-talkingshop.co.uk/img_ub/packshots/hobnob_orig.jpg&imgrefurl=http://www.irn-talkingshop.co.uk/united_bisc/ub_cons_3.html&h=50&w=122&prev=/images?q=hob+nobs&start=20&svnum=10&hl=en&lr=&ie=UTF-8&sa=N


Powering personalised communications

HH response = % customers redeeming at least one coupon

9.5MM customers, 9.5MM variations

70% overall response

12-19% individual coupon response

$4:1 ROI for brands

$BNs in incremental sales


Aligned decisions across the organisation

PROGRAM DESIGN

DIGITAL INTEGRATION

STORE OPERATIONS

CHANNEL STAFF ENGAGEMENT

GOVERNANCE

TECHNOLOGY

BRAND

COMMUNICATIONSDATA COLLECTION

MEASUREMENT

© dunnhumby 2014 | Confidential13 © dunnhumby 2013 | Confidential13

Retailer

Brand

Amplified across retail ecosystem

3000 more people working to help us

win with our customers


Data in the digital world


That was then

This is now


The shopping trip is becoming iterative & non-linear

© dunnhumby 2014 | Confidential

+ all the new internal sources of data AND bridging to new external data

TimeCreating or deriving new data

Data silos Connecting data around the customer

Valu

eCDOs must lead this next phase

VolumeVelocity

Variety


The customer view is essential


What I See / Hear

Who I Know / Influences

How I Decide

My Needs / Preferences

What I LIke

Who I Am

Where I Am

How I Shop

What I Buy

A retailer view


What I See / Hear

Who I Know / Influences

How I Decide

My Needs / Preferences

What I LIke

Who I Am

Where I Am

How I Shop

What I Buy

A social media view


Attribute data (e.g. device type, permissions)

Media data

Payment data

Mobile data

Product attributes

How I Shop

Where I Am

What I Buy What I See/Hear

Who I Know/Influences

How I Decide

Who I Am

What I Like

My Needs/Preferences

Prioritize carefullyOnly add more when your have succeeded or “failed fast”

Prioritize carefullyOnly add more when your have succeeded or “failed fast”

Accessing new data to add Value

© dunnhumby 2014 | Confidential

New ways of working out what’s important to customers

BUY plus…

SOCIAL INFLUENCENetwork

MEDIAINFLUENCEExposure

BROWSEViews, clicks, search

LOCATIONIn store, out of store

ADVOCACYLikes, posts

BehavioursAttitudes Drivers of behaviour Transactions Profit

Extending from transactional behaviours

© dunnhumby 2014 | Confidential25 © dunnhumby 2013 | Confidential25

BZZAGENT BRAND ADVOCATES:

2x More friends on Facebook

3x More engaged on Twitter

4x More likely to recommend products as a means of relaxing

2x More likely to drive sales

Shopper Social

ADVOCACY

LOYALTY

Bridging functional loyalty with advocacy


27

Granular location data


0%

5%

10%

15%

20%

25%

30%

Brand Increasers Brand Maintainers Brand Decreasers

Transforming media


TV

online

Social

MobilePrint / News/Local

websites

mobile

Direct mail magazines Store media

Social media

circularwebsites

mobile

Direct mail magazines Store media

Social media

circular

Old Retail boundaries

E-wallet / Loyalty

Redefining the organisation boundaries


Enabling the step to fully personalisedMASS DIFFERENTIATED PERSONALISED

PRIC

E &

PR

OM

OA

SSO

RTM

ENT

CO

MM

S

PERSONAL

Right price all the time

Favourite products only

Direct human connection

Select the best promotions

Targeted price investments My personal promotions

Select the core range Differentiated stores My shopping list

Evaluate impact on loyalty

Custom content My personal coupons


The rise of the CDO


1. Lead the exploration of new data


Crude Oil Bitumen, Asphalt

Oils

Diesel

Kerosene

Petrol

2. Develop the refinery too


3. Don’t be blinded by data science


““With loads of data you will find relationships that aren’t real … there are a lot of important limitations to the statistics that you learned in school. Big data isn’t about bits, it’s about talent.”

DOUGLAS MERRILLFORMER CIO/VP OF ENGINEERING AT GOOGLE FORBES MAY 2012

It’s not about how many phDs you have…


4. Build strong bridges to new data


5. Have the right tools for the job


38

Driving and directing the use of data

Aligning across the entire organization

No longer about “supporting” the organisation

Lead externally … extend the boundaries of the organization through data

CDOs must be leaders

Be a champion for your customers. Your data is the “voice of the customer”


Questions? Thank You!

?

dunn humby present at the chief data officer forum europe

Data & Analytics