icew 2013 amanda cromhout - big data: the key to making customer-centric changes

Interna'onal Customer Experience World

12th – 13th March, Maslow Hotel , Sandton

Amanda Cromhout

Proprietary and Confiden?al. All rights reserved.

Big Data: The key to making customer-‐centric

changes

Lord MacLaurin, former Tescos chairman, famously told

Dunnhumby

“What scares me about this is that you know more about my customers a6er 3 months than I know a6er 30

years!”

Proprietary and Confidential. All rights reserved.


“This isn’t just about increasing response rates…its about rallying the en7re organisa7on to be customer centric.”


“Leverage data to grow wallet share and purchase frequency, shiJ behaviour to higher-‐margin products”

“Daily deals can create loyal customers within the correct framework of

rewards.”

“A great loyalty strategy is also a

great company strategy. A best-in-class loyalty program requires deep customer insights and

technology” �

“Leveraging key data insights strengthens multi-dimensional customer relationships”


Customer Centricity

The ul?mate prize from loyalty


Iceberg effect


The Iceberg Effect


Iceberg effect

Loyalty Programmes: Pick n Pay smart shopper BA Execu?ve Club Edcon Thank U Woolworths W Rewards


The Iceberg Effect


Iceberg effect


Real Customer Value &

Long Term Customer Loyalty

The Iceberg Effect

Loyalty Programmes: Pick n Pay smart shopper BA Execu?ve Club Edcon Thank U Woolworths W Rewards


Iceberg effect


covert

The Iceberg Effect

overt


“Loyalty programs are no longer solely focused on points. Loyalty is a des7na7on created

through data-‐centric marke7ng communicaBons that lead to sustainable and measureable change in customer behaviour.”

Colloquy: USA Today 25 March 2011



Tradi?onal Loyalty Model

Loyalty Programme

Customer Loyalty & increased sales

Reason to swipe my loyalty card

more Drives Incentivises

+ 4-6 %


Customer Data

Customer Insights

Be\er Direct & Loyalty Marke?ng

Produces…. Drives…. Delivers….

Loyalty Programme

Results in….


+ 6 %

Tradi?onal CRM Model


“How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did’


Target’s press statement: “Like many companies, we use research tools that help us understand customer shopping trends & preferences so that we can give our guests offers and promo?ons that relevant to them…Customers are always welcome to opt out of our marke?ng programmes” Fox News Feb 24, 2012


Customer Data

Customer Insights



Loyalty Programme

Results in….

Product Strategy

Pricing Strategy

Distribu?on Strategy


Customer Service

Full Customer Strategy Model


Customer Data

Customer Insights



Loyalty Programme

Results in….

Product Strategy




Do you want sales data on baby carrots or

customer data on who buys baby carrots?


Customer Data

Customer Insights



Loyalty Programme

Results in….

Pricing Strategy




Customer Data

Customer Insights



Loyalty Programme

Results in….

Distribu?on Strategy




Customer Data

Customer Insights



Loyalty Programme

Results in….


Customer Service


Data Insights Value Segmenta?on



Global Retail: 20% of revenues come from 3% of customers



Gaming: 58% of revenues come from 4% of customers


Love your most

profitable customers


Inoculate your customers against the inevitable

seduc?on of a compe?tor


Retail: even your best customers are s?ll spending at least 30% elsewhere

“We saw we don’t need more customers – we need the customers we have to spend more Bme with us….therein lies the whole

idea of loyalty”

No of

Customers

YOY change

% of

customers

% of

revenue

Average Customer Value

Average No of trips

% Cross

Shopping

AMBASSADORS

205K 6% 35% $2,526 56 88%

FRIENDS

417k 15% 25% $897 30 60%

SUPPORTERS

487k 21% 16% $514 17 42%

POTENTIALS

319k 11% 8% $362 9 26%

INDIFFERENT

410k 18% 5% $159 4 8%

ONE-‐OFF

578k 24% 2% $50 2 1%

CUSTOMER

VAL

UE

This is for illustra?on only – not real data

Indicates where to allocate your marke?ng budget based on value poten?al to the business

Easiest ?pping point for further incremental sales

Tradi'onal Recency, Frequency & Value

Ranking Order RFV NPS Segment

1 + + Advocates

2 -‐ + Ambassadors

3 + -‐ Func?onal Repeaters

4 -‐ -‐ Detractors

Neutralise nega?ve Word Of Mouth U?lise posi?ve word of mouth through social media strategy

Overlaying Net Promoter Score Enables budget alloca?on based on both Value and Affinity

People who engage with brands via social media demonstrate a deeper

emo?onal commitment to those brands, and they spend between 20% and 40% more than other customers on the products and services offered by the brands, according to a report by Bain & Company



Source: Social Media Consumer Survey, (January 2011) supplied by Marke?ngProfs.com

Taking Customer Experience to the next level

….using customer insights

“… by using Clubcard, we can look at what customers buy from us, what things they like, and then make an effort to target adverts that are

more relevant to them….. it means we can know our customers be\er

than anyone.” Sco\ Deutrom, MD, Clubcard TV

“We’ll use Clubcard data to tell us what might be relevant for our customers and

therefore help us deliver a more personalised service…be\er s?ll we can target adverts based on what customers

bought yesterday, we can show that we are listening to out customers in ‘real’ ?me”

Sco\ Deutrom, MD, Clubcard TV

What differen?ates gilt.com from the rest is the

experience

40

“Most online shopping mirrors brick & mortar stores.

They are not taking advantage of what’s uniquely

possible online, the heightened sense of entertainment and compeBBon.

A big part of the Gilt brand promise is discovery:

You come every day & it’s new every day.”

41

How GILT uses VoC

…..everyday ….in everything they do

42

1.  Personaliza?on 2.  Merchandising 3.  Segmenta?on 4.  Policies 5.  Loyalty 6.  Social Engagement 7.  Customer Service 8.  Launch of New Businesses

43

Thank you

email [email protected]

cell 082 797 7441

website www.truth.co.za

@tweetstruth

44

icew 2013 amanda cromhout - big data: the key to making customer-centric changes

Business

loyalty programme results

deep customer insights

great loyalty strategy

class loyalty program

data insights value

icebergeect proprietary

great company strategy

icebergeect loyaltyprogrammes