“How the Supermarket Industry Uses Data to Build Digital Loyalty”Stefano Lena

VP Sales & Marketing – Contactlab

stefano.lena@contactlab.com

Digital pioneers in Italy since 1998

We provide the leading and easy to use Engagement Marketing platform for

lifestyle and retail brands

First Italian ESP in 2001 with a proprietary SaaS platform to send email, sms and fax

In 2010 start our Data-Driven journey

Thanks to our proprietary technology and our integrated marketing services, we

enable brands to drive sales and increase customer lifetime value by transforming

customer data in personal engagement

Trusted by world-class brands and more than 1000 clients worldwide

18.05.2017 Webtrekk SUMMIT 17&18 May 2017 2

Contactlab in brief

The data-driven and customer-centric engagement platform

* Luxury Goods reports, 2014-2016 Contactlab and Exane BNP Paribas - The analysis was created by examining a panel of selected qualified industry players as a

sample, starting from which valid simulations were made for the entire luxury market.

Transactional Data

Dynamic Data

360° Extended Customer Profile

Personal Data

Transactional: Sales

transactions, Customer care

interactions

Behavioral and

Psychographic: any

digital and physical

interaction, survey, etc..

Socio-Demographic data

Our technology enable personalized digital conversations

influencing up 20% instore and up to 50% of e-commerce sales*

The Client fidelity program is 100% digital (no physical cards)

Customer get rewarded not only for shopping

Digital interactions get rewarded too!

Webtrekk enable tracking and analytics on all the web interactions

Contactlab ingest all the digital interactions, integrating them with all single receipts, as well as any other customer interaction

All the consolidated information enable unified customer views and personalize digital communication that drive people to buy again

A supermarket chain - Business Case

How it work

Technology (APIs, Datacloud, Predictive Intelligence)

Expertise (Strategy, Operations, Research, Domain, Industry vertical)

INGEST ENRICH ACTIVATE

REST API

RFMC

Purchase

preferences

Basket mix

+

-

ANALYSE

Effectiveness

Index

RFMC tracking

Dashboard

performance

Click Analysis

Based on Customer behaviours:

Openings or click on a link in a digital communication

Purchase of a particular product

Navigation on the site

Interaction with App

Based on the characteristics and membership of certain clusters:

Engagement index

Customer Quality Relationship index

RFMC

Influences Sales correlation

Follow up messages are built with specific contents determined on the customer behaviors

How it work: building a journey

Ingest: creating digital identities

Integrated Marketing strategies are only possible if building 360° consumer views, managing all customer behaviors in a single profile

Crucial to collect and manage all data and interactions with the brand through the various touchpoints in one single place

Customer CareInteractions

Criticalities

Survey responses

TransactionsValue

Product purchased

Frequency

Discounts

Stores

AnalyticsTraffic source

Page Visits

Wish lists

Abandoned Cards

Social LoginSocial data

Interests

Likes

Preference CentreContact Frequency

Preferred Channel

Preferred Store

Preferred Category

DemographicsContact points

Socio-demographic data

Feedback

CampaignOpen / Click

Un/Subscription

Opening time

Progressive

ProfilingTraffic source

Page visits

Navigation Patterns

Customer Identity

Ingest Enrich Activate Analyze

Enrich: Creating clusters

RFMC PURCHASE PREFERENCES BASKET MIX ANALYSIS

•RecencyDetection of the 5 most purchased

categories / least purchased ones

CLUSTER HIGH(es: High Spending /

Frequent / constant with

recent purchases)

CLUSTER 2

CLUSTER N(es: Low Spending / Less

frequent / Erratic)

…

Identify products’ categories

correlated to typical receipts

TOP 5 CATEGORIES

BOTTOM 5 CATEGORIES

TOP 5 CATEGORIES

BOTTOM 5 CATEGORIES

TOP 5 CATEGORIES

BOTTOM 5 CATEGORIES

…

MIX 1

(es: fruit – cheese -

fish)

MIX 2

MIX N

…

•Frequency •Monetary •Constance

Ingest Enrich Activate Analyze

After purchase survey measuring

the Quality of the Relationship, online

and offline

Generating specific CQR clusters

Build segments through their consumer

journey based on:

Registration recency

Contact recency

Activity index (open/clicks) and recency

Enrich: Creating clusters

Ingest Enrich Activate Analyze

CLICK ANALYSIS ENGAGEMENT INDEX CQR

Click ranking algorithm to dynamically

Push correlated offers

Convey ideal contents

0 10 20 30 40

WEB

FOOD

CONTESTS

Activate: build personalized dynamic messages

Ingest Enrich Activate Analyze

Enabling one-to-one message building, including with up-to-date dynamic content

Contents(From different sources and in different formats)

Users(With their behavioral characteristics, interactions)

Matching

Rules

Possible attributes

Open, click

Engagement level

Preferences

Purchasing

Web Browsing

App interactions

Call center interaction

Through dynamic boxes populated with content from different sources, made available in different formats (XML, JSON, API, WS, Feed RSS …)

web/e-commerce scraping

Suppliers web pages

Social (i.e. Instagram)

CMS / DAM / PIM

Analyse: Evaluate effectiveness, adjust and iterate

EFFECTIVNESS INDEX CLUSTER MIGRATION PERFORMANCE ANALYSIS

Assign an effective index to each user /

campaign pair linked to:

Opening of the campaign itself

Deviation from the previous

RFMC cluster

Sales Influence of products

pushed in the campaign

To track users moving between

segmentation clusters and see how

the engagement strategy is working Customer base: how it

change

Behavioural: customer

engagement

Campaign: contact plan

effectiveness

Transactions: campaign sales

influence

Ingest Enrich Activate Analyze

The «Kaizen» approach

0 N

Fine tuning phase

Enrichment

• Web Click analysis

Ingestion of

• Web tracking

• App interactions

First level

Automation

Enrichment

• Engagement

index

• CQR index

• …

Additional

AutomationAdditional

Automation

Excellence is not a destination

It is a continuous journey that never ends (Brian Tracy)