shopper marketing insights for retailers webinar

Intelligent Customer Engagement™ Suite

Shopper Marketing

Insights for RetailersSeptember 11, 2014

Right Channel, Right Message. Right Now

Private and Confidential 11/4/2014 2

Rusty Warner

Principal Analyst

Forrester Research

Shopper Marketing Insights for Retailers

Richard White

Advisor to Capillary Technologies

Janet Jaiswal

VP of Marketing

Capillary Technologies


• Introductions

• The Age of the Customer

• Big Data Analytics

• Retail Case Studies

• Key Takeaways

• Q & A

Agenda

© 2014 Forrester Research, Inc. Reproduction Prohibited 4

The age of the customer

Obsession and context


We have entered the age of the customer

› Age of the customer — a 20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers

Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report


Customer obsession:

A customer-obsessed enterprise focuses its

strategy, its energy, and its budget on

processes that enhance knowledge of and

engagement with customers and prioritizes

these over maintaining traditional competitive

barriers.

Marketing has a new remit: context.

How context changes marketing

BEFORE CONTEXT: AFTER CONTEXT:

• Campaigns

• Targeting

• Customer segmentation

• Media schedules

• Messages

• Transactions

• GRPs and CPMs

• Interactions

• Engaging

• Customer recognition

• Customer moments

• Utility

• Value exchanges

• Minutes of engagement

Source: April 14, 2014, “The Power Of Customer Context” Forrester report


The customer life cycle is contextual…

ENGAGE

ASK

USE BUY

EXPLORE

DISCOVER

Customers are exposed to the initial trigger that will lead them

to a new need or repeat purchase of an existing need.

Customers are exposed to the initial trigger that will lead them

to a new need or repeat purchase of an existing need.

Customers research your brand and product

— and their other options.

Customers research your brand and product

— and their other options.

Customers go through the purchase process and

complete the transaction.

Customers go through the purchase process and

complete the transaction.

Customers take possession of their purchase, which includes initial and ongoing impressions

of it.

Customers take possession of their purchase, which includes initial and ongoing impressions

of it.

Customers reach out to get service or help with a

purchase.

Customers reach out to get service or help with a

purchase.

Customers connect with brands for nonservice reasons across

multiple channels.

Customers connect with brands for nonservice reasons across

multiple channels.


…And interactions depend on insights

ENGAGE

ASK

USE BUY

EXPLORE

DISCOVER

Insights Interactions


• Lack of capabilities to manage and analyze Big Data

• Executing relevant, timely, channel-specific delivery

• Measuring the value through incremental sales

• Lack of support from senior management

• Overcoming the previous organizational mindset

Poll #1 : In your opinion, what are the main barriers

for marketers to overcome in the shift towards

customer-driven marketing?


Big data

Analytics in the age of the consumer


› Serve the needs of contextual customer experiences

› Dig deeper for predictive insights

› Understand the role of real-time digital data

Big data uproots traditional analytics and offers opportunities to:

Source: April 22, 2013, “The Consumerization of Customer Analytics” Forrester report


Less than 15% of data used for business intelligence (BI)

A data evolution is underway

Source: May 28, 2014, “Big Data’s Big Meaning For Marketing” Forrester report


Big Data:

Emerging business practices and

technologies that close the gap between the

amount of data available and your ability to

use it for business insight


Big data in the modern world


Big data in the eyes of marketers


Base: 701 North American data and analytics decision makers

Source: Business Technographics Global Data And Analytics Survey, 2014

Time for marketing to reset on big data

8%

14%

35%34%

9%

7%

12%

21%

30% 30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Technology Management Business

“Which view of big data is most aligned to yours?”

Hype Technology BI New Confusing


The big question…

“How can big data help me delight my

customers?”


A matter of perspectives…

Source: June 19, 2014, “How Analytics Drives Customer Life-Cycle Management” Forrester report


Drive value across the life cycle



Analytics across the life cycle



• Building reports that surface actionable insights

• Don’t have the team members with the right skills to

leverage the data

• Limited budget to install necessary technology

• Limited team capacity to prioritize

• Culture doesn’t embrace data

Poll #2: What are the primary hurdles to successfully

leveraging data in your marketing organization

(check all that apply)


Retail case studies

From insights to customer experience


› Tracks both shopper and item-level data

› Secures shoppers beyond loyalty program

› Provides insights to small suppliers

› Enables shopper-focused assortments

› Defines individual, adaptable store planograms


› Established a big data sandbox to unearth shopper insights

› Designed a social media program to leverage shopper content

› Developed even more personalized shopping experiences

› Recognized as a destination retailer

› Focused on customer experience


› Providing seamless access to ANN INC. brands

› Complementing wear-to-work and special occasion styles with affordable, effortless styles via Loft

› Focusing on various shopper roles and redefining business strategy – “EVOLVING WITH HER”

› Combines shopping data with social media

› Creates more actionable shopper segments

› Enriches the shopping experience with insights

> 38% increases in campaign response rates with only a 14% increase in communications

> Won Loyalty & Engagement Awards for "Best CRM Strategy" and "Best Use of Relationship Marketing (B2C)“

> Won CMO Asia Award for "Best Use of Marketing Communications”


> Increased its repeat visits

per month by 15+%

> Realized a 5% increase in same store transaction growth (SSTG)

> Obtained customer insight through real-time dashboards and reports

> Created campaigns that increased incremental sales per individual (achieved 4x campaign target)

> Realized 130% ROI on margin within 3 months


“Merely having an incredible data

capturing mechanism does not

mean business decisions can be

taken effectively. Capillary’s ability

to predict future performance helps

us take important and reliable

business decisions.” –Sumesh Bhat,

Business Head


• Too much Big Data – don’t know how to handle it all

• The complexity of omni-channel marketing

• Measuring and delivering marketing ROI

• Delivering timely, personalized communications

• Adjusting company mindset & budgets to 1:1

communications

Poll Question #3: What do you believe are some of the

biggest challenges facing marketers today

(select all that apply):


Intelligent Customer Engagement

Company Overview

Private and Confidential 11/4/2014

Challenges Capillary solves

How can I

improve my

Marketing ROI?

?

How can I retain

more customers??How can I increase my cross-

sell / up sell revenue through

personalization?

?

How can Store Associates

better engage customers

in the store??

What can I do to

increase revenue??

How can I bring

more people

into my store?

?How can I get my

customers to increase

their Average Basket Size?

How can I market to my omni-

channel customer most effectively?

? How can I identify my most loyal customers?

And manage my loyalty program?

?

How can I improve my

marketing campaign results??

?

32


What can I do to

increase revenue??

How can I retain

more customers??How can I increase my cross-

sell / up sell revenue through

personalization?

? How can I

improve my

Marketing ROI?

?

How can I bring

more people

into my store?

?

How can Store Associates

better engage customers

in the store??

How can I get my

customers to increase

their spend?

How can I market to my omni-

channel customer most effectively?

? How can I identify my most loyal customers?

And manage my loyalty program?

?

How can I improve my

marketing campaign results??

?

The Capillary Value� Built for retailers only

� Integrated, multi-channel loyalty

� Integrates with most leading POS

� Real-time customer analytics

� Complete customer engagement platform

� Data integration across channels for key insights

33


Typical customer results

3%-5%Same Store

Growth

10%Customer

Frequency

15%Average

Bill Value

3-5XROI on

Margins

30%Customer

Retention

Rate

34


Our solution is focused on the Retail industry

35

Major Focus

• Customer big data analytics

• Loyalty program

management

• Campaign management

• Store clienteling

• Omni-channel engagement

Global Expertise

150+ customers

10,000 stores

100 million consumers

Privately held company with 350

employees across 7 offices in US,

UK, UAE, SA, AUS, APAC and India

Customers

About Capillary Technologies


Awards &

Accolades

36


Key Takeaways

Build a customer engagement intelligence platform– Turn big data into business insights to understand all of your

customers

Ideation: Set realistic expectations– Start small with a pilot and take a learnings-based approach

Implementation: Deliver success & then expand

rapidly– Measure results and then incorporate into all marketing programs

37

Rusty WarnerPrincipal Analyst

Forrester Research

http://www.forrester.com/Rusty%20Warner

Richard WhiteAdvisor to Capillary Technologies

[email protected]

Janet JaiswalVP of Marketing


[email protected]

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