Shopper Marketing Insights for Retailers

Intelligent
Customer
Engagement™
Suite
Right
Channel,
Right
Message.
Right
Now
Shopper
Marke+ng
Insights
for
Retailers
September
11,
2014
@CapillaryTech

Shopper
Marke+ng
Insights
for
Retailers
Rusty
Warner
Principal
Analyst
Forrester
Research
Richard
White
Advisor
to
Capillary
Technologies
Janet
Jaiswal
VP
of
Marke=ng
Capillary
Technologies
Private
and
Confiden=al
2
@CapillaryTech

• Introduc=ons
• The
Age
of
the
Customer
• Big
Data
• Case
Studies
• Key
Takeaways
• Q
&
A
Agenda
Private
and
Confiden=al
3
@CapillaryTech

The age of the customer
Obsession and context
© 2014 Forrester Research, Inc. Reproduction Prohibited 4

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
8

The customer life cycle is contextual…
ENGAGE
Customers connect with brands
for nonservice reasons across
ASK
DISCOVER
Customers are exposed to the
initial trigger that will lead them
to a new need or repeat
purchase of an existing need.
EXPLORE
USE BUY
Customers research
your brand and product
— and their other
options.
Customers go through the
purchase process and
complete the transaction.
multiple channels.
Customers reach out to
get service or help with a
purchase.
Customers take possession of
their purchase, which includes
initial and ongoing impressions
of it.

…And interactions depend on insights
ENGAGE
Insights ASK
Interactions
DISCOVER
EXPLORE
USE BUY

Poll
#1
:
In
your
opinion,
what
are
the
main
barriers
for
marketers
to
overcome
in
the
shiH
towards
customer-‐driven
marke+ng?
(You
can
select
more
than
one)
• Lack
of
capabili=es
to
manage
and
analyze
“Big
Data“
• Inability
to
execute
relevant,
=mely
&
channel-‐specific
communica=on
• Inability
to
measure
the
value
through
incremental
sales
• Lack
of
support
from
senior
management
• Overcoming
the
previous
organiza=onal
mindset
Private
and
Confiden=al
11
@CapillaryTech

Big data
Analytics in the age of the consumer

Big data uproots traditional analytics
and offers opportunities to:
› Serve the needs of contextual customer experiences
› Dig deeper for predictive insights
› Understand the role of real-time digital data
And enables a shift from:
› Analytics production to consumption and activation
› Static analysis to dynamic, real-time intelligence
› Experts to casual users
Source: April 22, 2013, “The Consumerization of Customer Analytics” Forrester report

A data evolution is underway
Less than 15% of data used for business intelligence (BI)
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

Time for marketing to reset on big data
Base: 701 North American data and analytics decision makers
Source: Business Technographics Global Data And Analytics Survey, 2014

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

Poll
#2:
What
are
the
primary
hurdles
to
successfully
leveraging
data
in
your
marke+ng
organiza+on?
(check
all
that
apply)
• Building
reports
that
surface
ac=onable
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
priori=ze
• Culture
doesn’t
embrace
data
Private
and
Confiden=al
23
@CapillaryTech

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

› Combines shopping data
with social media
› Creates more actionable
shopper segments
› Enriches the shopping
experience with insights
› 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”

> Increased its repeat visits
per month by 15+%
> Realized a 5% increase in
same store transaction
growth (SSTG)
> 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”
Private
and
Confiden=al
28
@CapillaryTech

“Merely
having
an
incredible
data
capturing
mechanism
does
not
mean
business
decisions
can
be
taken
effec=vely.
Capillary’s
ability
to
predict
future
performance
helps
us
take
important
and
reliable
business
decisions.”
–Sumesh
Bhat,
Business
Head
> 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
> Modified loyalty program to increase visit frequency
Private
and
Confiden=al
29
@CapillaryTech

Poll
Ques+on
#3:
What
do
you
believe
are
some
of
the
biggest
challenges
facing
marketers
today?
(select
all
that
apply)
• Too
much
Big
Data
–
don’t
know
how
to
handle
it
all
• The
complexity
of
omni-‐channel
marke=ng
• Measuring
and
delivering
marke=ng
ROI
• Delivering
=mely,
personalized
communica=ons
• Adjus=ng
company
mindset
&
budgets
to
1:1
communica=ons
Private
and
Confiden=al
30
@CapillaryTech

Capillary
Technologies
Intelligent
Customer
Engagement
Company
Overview

Challenges
Capillary
solves
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?
?
Private
and
Confiden=al
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 improve my
?
marketing campaign results?
How can I market to my omni-channel
customer most
effectively?
?
?
How can I identify my most loyal customers?
And manage my loyalty program?
@CapillaryTech
32

The
Capillary
Value
!
Built
for
retailers
only
Private
and
Confiden=al
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 improve my
?
marketing campaign results?
How can I market to my omni-channel
customer most
effectively?
?
?
How can I identify my most loyal customers?
And manage my loyalty program?
!
Integrated,
mul=-‐channel
loyalty
!
Integrates
with
most
leading
POS
!
Real-‐=me
customer
analy=cs
!
Complete
customer
engagement
plaaorm
!
Data
integra=on
across
channels
for
key
insights
@CapillaryTech
33

Our
solu+on
is
focused
on
the
Retail
industry
Private
and
Confiden=al
@CapillaryTech
34

Typical
customer
results
Private
and
Confiden=al
3%-‐5%
Same
Store
Growth
10%
Customer
Frequency
15%
Average
Bill
Value
3-‐5X
ROI
on
Margins
30%
Customer
Reten=on
Rate
@CapillaryTech
35

Major
Focus
• Customer
big
data
analy=cs
• Loyalty
program
management
• Campaign
management
• Store
clienteling
• Omni-‐channel
engagement
Global
Exper+se
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
Private
and
Confiden=al
36
Awards
&
Accolades
@CapillaryTech

Key
Takeaways
Marke=ng
to
shoppers
who
are
increasingly
sophis=cated
and
demanding
is
not
easy
Build
a
customer
engagement
intelligence
plaaorm
– Turn
Private
and
Confiden=al
big
data
into
business
insights
to
understand
all
of
your
customers
– The
insights
will
enable
relevant
and
personalized
interac=ons
@CapillaryTech
37
Idea=on:
Set
realis=c
expecta=ons
– Start
small
with
a
pilot
and
take
a
learnings-‐based
approach
– They
need
the
right
message
at
the
right
=me
through
the
relevant
channel
Implementa=on:
Deliver
success
&
then
expand
rapidly
– Measure
results
and
then
incorporate
into
all
marke=ng
programs
across
channels

Rusty
Warner
Principal
Analyst
Forrester
Research
hjp://www.forrester.com/Rusty%20Warner
Richard
White
Advisor
to
Capillary
Technologies
RWhite@CapillaryTech.com
Janet
Jaiswal
VP
of
Marke=ng
Capillary
Technologies
Janet@CapillaryTech.com
Complete
feedback
to
receive
the
Customer
Intelligence
White
Paper
Private
and
Confiden=al
@CapillaryTech

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