5. “…when it comes to purchasing decisions,
the most influential recommendations
come from people we actually know…”
Josh Cantone, Who are the real online influencers?
Reach
Resonance
Relevance
24. “Building out Big
Data capabilities
too often becomes
the end goal itself”.
What you need to make Big Data work: The pencil: Matt
Ariker, Forbes CMO Network Article
25. “…most significant obstacle to big data efforts…
is the gap between the need and the ability to
articulate measurable business value”
Analytics: The real-world use of big data in financial services
Customer Engagement
Who are your customers?
Where are they?
What do they want from us?
What’s the best way to contact them?
When’s the best time to talk to them?
Customer Retention
What influences our customers’ loyalty?
What can we do to promote loyalty?
How do we keep them coming back?
Optimise Marketing
Which channels offer us the best value?
Where do we get the best return?
Where should we focus our spend?
How did that last campaign do?
Test
Measure
Analyse
Crowdtap, from http://mashable.com/2012/06/13/influence-marketing-infographic/
REACH
RESONANCE
RELEVANCE
Crowdtap, from http://mashable.com/2012/06/13/influence-marketing-infographic/
Influence the people that are influencing your audience
How ‘social intelligence’ can guide decisions; McKinsey Nov 2012
Implemented customer segmentation by value: lifetime value model
offered added value to top segment
good offers (value) to bottom segments
= loyalty at both ends
360deg customer view aids customer service and informs marketing to ea segment
Mined data to discover areas where could add extra value for extra market share
3rd largest retailer in the world
Began using data to inform business decisions 1990
First store-brand customer loyalty card “Clubcard”
Supply Chain: stock, depot, delivery, supplier purchase optimisation; out-of-stock on special offers reduced by 30%
Inventory: stock levels shown on Google maps; instore camera tech eg “broccoli cam”
Cooling: Central mgt of temps; data aligned with Google maps; remote diagnostics so techs arrive with right parts
Demand: Use of weather forecasts and regional sales patterns; hot day in Scotland = different sales and stock req from hot day in South of England
Big data is also a powerful, effective force in the multi-channel strategy that Tesco sees as central to understanding the future of consumer retail behavior. This strategy addresses the consumer’s desire to use physical stores, mobile devices, and desktop computers in combinations. For example, a consumer could use an internet kiosk in the store to order an item for collection in the store the next day. A mobile device could be used to order groceries to be delivered at home. These combinations of retail channels require the company to understand not only the purchasing patterns of individual consumers, but also their channel preferences and logistics requirements.
American retailer
Used big data analytics to devise a “pregnancy prediction” score based on buying patterns
Sent relevant coupons to expectant mothers throughout pregnancy
Cornered “baby-on-board” market using “heightened focus on items and categories that appeal to specific guest segments such as mom and baby.” (Greg Steinhafel, President: Target)
[A] man walked into a Target outside Minneapolis and demanded to see the manager. He was clutching coupons that had been sent to his daughter, and he was angry, according to an employee who participated in the conversation.
“My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?”
The manager didn’t have any idea what the man was talking about. He looked at the mailer. Sure enough, it was addressed to the man’s daughter and contained advertisements for maternity clothing, nursery furniture and pictures of smiling infants. The manager apologized and then called a few days later to apologize again.
On the phone, though, the father was somewhat abashed. “I had a talk with my daughter,” he said. “It turns out there’s been some activities in my house I haven’t been completely aware of. She’s due in August. I owe you an apology.”
Read more: http://www.businessinsider.com/the-incredible-story-of-how-target-exposed-a-teen-girls-pregnancy-2012-2#ixzz2tDCFvr9O
American “superstore” chain selling office products, technology and furniture
Largest retailer in the sector
Named one of “World’s Most Ethical Companies” in 2013
Occasional customer of OfficeMax
One purchase of paper since daughter’s death in car crash
Company bought 3rd party data to use for targeted marketing
Quality
Validation
Reporting
Business Rules
Governance
Moore’s law also applies to data
Relational databases reaching capacity and scaling limits
Exponentially larger rate of production
Formats outside scope of traditional relational dbs
Internet of things
This is not an IT problem:
You know what you need; IT doesn’t.
You can’t always wait for IT to understand.
You need to be able to get the data yourself!
Analytics: The real-world use of big data in financial services, Report by IBM Institute for Business Value and Saïd Business School at the University of Oxford, May 2013
Can be like looking for a needle in a haystack
Throwing more hay on the stack won’t help you find the needle
McKinsey Chief Marketing & Sales Officer Forum (2013-07-09). Big Data, Analytics, and the Future of Marketing & Sales (Kindle Locations 121-123). McKinsey & Company. Kindle Edition.