simon rowles march 2012 smarter data conference
TRANSCRIPT
1
Customer Data : The New Oil
Simon Rowles | Aimia
New Zealand Marketing Association
Smarter Data Conference - March 2012
2
Customer data : The new oilCustomer Data is the New Oil
Customer data
is cheap
and
ubiquitous
Customer
data is a
renewable
resource
If you don’t
use your
customer
data,
somebody
else will
If you don’t
craft the right
offer,
somebody
else will
2
A new asset
“Personal data is
the new oil of the
Internet and the new
currency of the
digital world.”
Meglena Kuneva | European Consumer
Commissioner | March 2009
Market share
from
16% to
30.5%
Stores from
568 to
2,482
Entry into
13
foreign
markets
£1 out of
every £7
in the
UK
high street
12%
18%
25%
28%
11%
30%
1990 1994 2000 2005 2009 2011
Sophisticated loyalty in the UK has helped grocers maintain their position against
low-cost entrants. Tesco attributes its success to customer data analytics.
Tesco UK market share, percent
Tesco’s now the world’s 3rd largest retailer
16 million Clubcard
members
9 millionvariants of
quarterly mailer
25%Response
rates
Loyalty program
started 1995
1 CERN forecasts based on 2.8GHz Intel Xeon Processor
48
33
23
15
10
75 4
3
-31%p.a.
2009080706050403022001
0.2
-39%p.a.
200908
0.3
07
0.6
06
1.0
2005
1.4
2008 revised forecast2005 forecast
SOURCE: IDC Storage Tracker; Winter Corporation; McKinsey research; “Technology and Cost Trends” (Cern); DMA StatFactBook
(2009)
Tech becoming cheaper, analytics and digital content growing
Cost to store data continues to fall
31% per year…Worldwide disk storage cost, $/GB
… and data processing costs have
decreased even fasterCERN processor cost forecast, $/SI2000 unit1
Use your data or somebody else will
Use your customer data or somebody else will
99
Coke Zone UK
28%
Huggies
Hovis
Pepsi
Ribena
Kelloggs
Nescafe
Cadbury
Carling
Walkers
Air Miles
Coke
Coke Zone : Leading levels of online engagement
Pageviews
Dw
ell
Tim
e
Coke
Pepsi
Website Performance
Dwell Time vs Page Views vs Return Visits
Website Performance
Cumulative Visitors
Kellogg's
Barclaycard Freedom
Sales at Shell up 7% in first year
8 million
Cardmembers
20,000
retailers
200 retailers
within 5 miles
of each
Cardmember
75,000
Cardmembers
within 5 miles of
each retailer.
eStore
45%
21%
20%
30%
29%
12%
Appliance Store
Apparel Store
Hardware Store
Toy Store
Supermarket
Department Store
Billings growth
50%
0%
14%
12%
19%
7%
Growth in visits
Performance of cards marketing at till – Asian case
Card based offers – transaction based marketing
New Zealand’s card metrics are the best in this region
0.3
0.9
11
19
59
63
95
151
India
Indonesia
Malaysia
Japan
Hong Kong
Singapore
Australia
New Zealand
2%
1%
10%
26%
21%
22%
44%
50%
Card usageCard transactions per annum
per head of population
Online banking usage% of population banking
online
# 1
Data sources : Datamonitor,
Euromonitor, eMarketer, comScore
Kiwi’s high usage of cards
(credit, debit, Eftpos) higher
than Australia and UK.
Kiwi’s also use Internet
banking most.
Targeted offers inside online banking
McDonald’s – customer switch from competitors
USA aggregate results by retail category
10.70%
12.30%
8.50%
10.70%
29.70%
30.80%
17.20%
26.10%
Food, Drug, Mass
Merchandiser,
Grocer, Dollar
Stores
Entertainment, Pet
Specialty,
Electronics,
Sporting Goods
Family, Discount
and Department
Stores
Casual Dining &
Quick Service
Restaurants
Retail
Specialty Retail
Apparel
Restaurant
Sales growth – incremental spend in 1st month
compared to a control group
Current customers New customers
But. The relevance hierarchy is confused today
Right person
Right offer
Right place
Right time
Right way
$125
$44
$63
$1,000
Foursquare
Groupon
($75bn/600m)
$7.7bn/175m)
($500m/8m)
($20bn/20m)
From offer anarchy to a real relationship
Offer
AnarchyAffinity
Pay to
play
Real
relationship
High data control
Low data control
Emotional
engagement
Rational
engagement
There is only one shortage
19
“I keep saying
that the sexy jobs
in the next 10
years will be
analysts and
statisticians, and
I’m not kidding.”
Hal Varian : Chief
Economist at Google
Finally…
20
> If you don’t use your data – somebody else will
> Remaining on the sidelines is no longer an
option
> Recognise interactions as much as transactions
> There’s an arms race to “connect the dots” in
customer data
THANK YOU
Simon Rowles