2013 Teradata Marketing Summit Presentation: Create to Consumer Visibility
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Channels such as social media and mobile present new ways for manufacturers to interact with their consumers and shoppers yet doing so most effectively requires a focus on rich insights fueling interactions along the circuitous path to purchase. The digital breadcrumbs left by consumers and shoppers are of a variety and velocity that begs for big data platforms capable of making sense of multi-structured data at a pace matching the busy lifestyle of Connected Consumers. Ultimate value is unleashed when such a foundation integrates data from all sources – marketing, sales and operations – providing “create to consumer” visibility at less cost while ensuring accuracy and just in time decision support to stakeholders across the enterprise.
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2013 Teradata Marketing Summit Presentation: Create to Consumer Visibility
- 1. Gib Bassett Global Program Director for Consumer Goods gib.bassett@teradata.com Twitter: @gibbassett Tim Shaw Senior Industry Consultant, Consumer Goods tim.shaw@teradata.com Twitter: @shawfive CREATE TO CONSUMER VISIBILITY IN THE ERA OF CONNECTED CONSUMERS
- 2. 2 4/16/2013 Teradata Confidential First, recalling last year…
- 3. 3 4/16/2013 Teradata Confidential Why knowing the “path to purchase” is more important than ever That the “path” is about digital and so much more A methodical and quick to value approach to achieving “create to consumer” visibility What to expect from this presentation
- 4. 4 4/16/2013 Teradata Confidential
- 5. 5 4/16/2013 Teradata Confidential The Supermarket
- 6. 6 4/16/2013 Teradata Confidential “Connected Shopping” now the Norm
- 7. 7 4/16/2013 Teradata Confidential Zero Moment of Truth
- 8. 8 4/16/2013 Teradata Confidential
- 9. 9 4/16/2013 Teradata Confidential • Consumers repeatedly buy the same 150 items to satisfy 85 percent of their needs • 70 percent of households prepare meals at home and choose repeatedly from just 9 recipes • 2 percent of shoppers account for 80 percent of volume for a new product in its first year • Retail private label market share growing at national brand expense • Trade promotion expense out of control • E-Commerce direct sales good, but not the answer • Gov’t regulation promises need for unprecedented traceability Cracking the Code is Critical!
- 10. 10 4/16/2013 Teradata Confidential • CPGs are staffed with consumer and customer insight teams and increasingly making them a priority • More CPGs recognize the power of direct digital communication channels to collect, analyze and leverage consumer data The Good News / Bad News • Customer (retail) partner insight teams limited to aggregate sales data, no consumer data • No data management strategy to capture, integrate and leverage detailed consumer, sales, and production data • Consumer marketing data not captured, sometimes not even yet “owned” The Good The Bad
- 11. 11 4/16/2013 Teradata Confidential Evolution To Enterprise View Consumer Data Consumer Data + Sales Analysis + Customer Analysis + Profitability Analysis + Inventory Analysis Customer Data Financial Data Supplier Data Sales Data Sales Data Sales Data Sales Data Customer Data Customer Data Financial Data Consumer Data Consumer Data Consumer Data Consumer Data BusinessValue The Superior Business Value of Centralized, Integrated Detail Data
- 12. 12 4/16/2013 Teradata Confidential Value Consumer Data + Sales Analysis + Customer Analysis + Profitability Analysis + Inventory Analysis $Millions Potential Value Customer Data Financial Data Supplier Data Sales Data Sales Data Sales Data Sales Data Customer Data Customer Data Financial Data Business Value …the Business Value Compounds Exponentially Consumer Data Consumer Data Consumer Data Consumer Data Investment While the integrated data investment increases incrementally… Consumer Data BusinessValue The Superior Business Value of Centralized, Integrated Detail Data
- 13. 13 4/16/2013 Teradata Confidential Create to Consumer Visibility: What it looks like + What it buys you Unified Data Architecture Consumer Data • Opt in Marketing • Campaigns • Demographics • Preferences • Social Media • Web/e-Commerce • Mobile • Contact Center • Panels • Third Party Customer/Trade Partner Data • All Retailer POS Transaction Details • Trade Promotion Spend • Shopper Marketing Spend • Brand Paper and Digital Coupons • All Loyalty Card Data • Syndicated Data • Pricing Data Operations & Distribution Data • Detailed ERP Data • Demand and Forecast Data • Inventory Data • Shipping Data • Supplier Cost Data R&D • Ideation • Test market • Design • Packaging Marketing • Marketing mix • Hyper local • A/B testing • Relevance • ROI Sales/Trade Partners • Value based trade promotion • Pricing for maximum margin and volume • On shelf availability • Shopper marketing Brand • Consumer and shopper sentiment • Sales performance Production & Supply Chain • Demand driven supply • Tooling and materials • Distribution logistics Applications and Analytics
- 14. 14 4/16/2013 Teradata Confidential So, Where Do We Start? Consumer Engagement • Channel explosion • Expectation of relevancy • Variety of conversations Actionable Insight • Complexity of data • Move from data to insight • Make insight actionable Accountability • Align spend to channel • Justify spend • Maximize spend across channels
- 15. 15 4/16/2013 Teradata Confidential Stages of Marketing Sophistication Broadcast your message and they will come STAGE 1 MASS MARKETING Broadcast your message to a specific segment STAGE 2 SEGMENT MARKETING Exploratory Analysis and Mass Communications Actionable Analysis and Monologue Communications Predictive analysis and segment- focused communications STAGE 3 TARGET MARKETING Personalized communication based on individual behavior patterns STAGE 4 CONSUMER-DRIVEN COMMUNICATION Iterative and progressive communications across all channels STAGE 5 INTERACTIVE CONVERSATIONS Multi-channel, Event-driven, consumer Managed Relationships Event-Driven, Interaction Management and Individual DialoguesModeling and Customized Communication One Relationship, Single View of Consumers LIFE STAGECHANNELBRAND
- 16. 16 4/16/2013 Teradata Confidential Integrated Consumer Marketing: Teradata’s Solution Framework Approach Marketing Analytics Mining Modeling Reporting Trending Profiling Segmenting Marketing Operations Workflow & Rules Plan Spend Brand Assets Campaign Design Multi-Channel Campaign Automation Leads Campaign Automation Source Data Product/ SKU Inventory Sales/ POS/ Franchise Supplier Promotional/ Loyalty Data Strategic Insight and Marketing Processes Seamless Customer Engagement Call Center Events Email Mobile Channels Customers Sales Consumer Partner Pre-engineered Consumer- centric Data Management Assets Data Warehouse Consumer Feedback Loop Social Media Web
- 17. 17 4/16/2013 Teradata Confidential Critical Role of Master Data Management • Multiple sources require harmonization and standardization to be useful for analytics and reporting – critical to value! • Extensive outbound marketing across brands & regions • Customer data silos + local/product-specific focus have prevented maximum value of global customer data • Marketing platform must support analytics across all brands and regions Country- and Region-specific Product/Brand Consumer Data Silos (Original) Consumer Data Warehouse T M D M Comprehensive Consumer Data View Silos support isolated analyses with inconsistent conclusions and duplicated tools & effort Customer data sources feed central DW -> Better analysis & marketing campaigns. Customer records managed/cleansed using Teradata MDM with third party DQ. Campaign Mgmt (ARM) users BI users External Marketing Agencies Other users
- 18. 18 4/16/2013 Teradata Confidential The Holy Grail – Consumer Insights
- 19. 19 4/16/2013 Teradata Confidential Integrate, Engage, Analyze Through integration, analytics, and acting on the data you achieve: • Personalization > Segments Preference Behavior > Real-time & ad-hoc driven > Targeted & relevant > Across touch-points > Based on Analytics > Dialog focused > Enable innovative marketing • Life-stage marketing > Lifestyle based content > Be present in important moments Across Any Channel
- 20. 20 4/16/2013 Teradata Confidential Plan & Initiate Your Marketing Campaigns AMS – Aprimo Marketing Studio allows marketing users to create and manage marketing initiatives through an easy to use workflow. Activities are created and budgets are applied. Activities have projects with tasks. Specific tasks link to ARM for campaigns.
- 21. 21 4/16/2013 Teradata Confidential Target Customers By Segment and Planned Interaction Channel ARM – Aprimo Relationship Manager offers marketing users the ability to target, create/manage campaigns and customer contact. Create a contact plan with multiple steps, offers and channels. Customer paths through the plan is dependent on how they respond to offers. Responses become consumer actions that provide the Closed Loop Feedback. Great for test and learn.
- 22. 22 4/16/2013 Teradata Confidential Execute “Dialog Strategies” - Not Just Mailings • Joe researches Shaving & Skin Care… − Multiple channels, including online − Automatically initiate follow-up − Ensure Consistent Action and Closure − Message reinforcement and reminders
- 23. 23 4/16/2013 Teradata Confidential Coordinating all the touch points…which message gets sent? When? Buy 2 for 1 Pre-mail teaser Retention incentive Club sign-up Welcome pack 1st newsletter AutomateDialogPromoteReinforceTest Free Sample Product Review Trial Offer “Come back” Offer 20% Off Next Purch
- 24. 24 4/16/2013 Teradata Confidential Example: Consumer Dialogue Step 1: Email about a new product Step 2: Consumers who didn’t open first message receive new message with different subject Step 3: Consumers who opened 1st or 2nd message receive an offer to download a coupon to try the new product Step 4: Consumers who clicked to download the coupon are thanked and asked to leave a review Step 5: Consumers who didn’t download the coupon receive a message with testimonials and higher coupon offer Step 6: Consumers who left a review are invited to join our Loyalty Club Program and Facebook Group for special offers
- 25. 25 4/16/2013 Teradata Confidential The Holy Grail – Consumer Insights
- 26. 26 4/16/2013 Teradata Confidential Achieving Consumer Insight Unified Data Architecture Consumer Data • Opt in Marketing • Campaigns • Demographics • Preferences • Social Media • Web/e-Commerce • Mobile • Contact Center • Panels • Third Party Customer/Trade Partner Data • All Retailer POS Transaction Details • Trade Promotion Spend • Shopper Marketing Spend • Brand Paper and Digital Coupons • All Loyalty Card Data • Syndicated Data • Pricing Data Operations & Distribution Data • Detailed ERP Data • Demand and Forecast Data • Inventory Data • Shipping Data • Supplier Cost Data R&D • Ideation • Test market • Design • Packaging Marketing • Marketing mix • Hyper local • A/B testing • Relevance • ROI Sales/Trade Partners • Value based trade promotion • Pricing for maximum margin and volume • On shelf availability • Shopper marketing Brand • Consumer and shopper sentiment • Sales performance Production & Supply Chain • Demand driven supply • Tooling and materials • Distribution logistics Applications and Analytics
- 27. 27 4/16/2013 Teradata Confidential “Create to Consumer” Use Cases
- 28. 28 4/16/2013 Teradata Confidential > Relate known consumers to buying centers to focus in-store marketing and measure influence on sales for hard ROI. > Match trade promotions and shopper marketing actions with social media activity and production to optimize distribution, inventory and on shelf availability. Improving Marketing Performance
- 29. 29 4/16/2013 Teradata Confidential > Bring added value to retailers with consumer profiles related to store buying centers to inform local/in-store promotion and store layout. > Perform localized, measurable and adaptable product launches using geo- fenced opt in consumer profiles and distribution data to avoid out of stock situations in the critical trial phase. Improving Sales Performance
- 30. 30 4/16/2013 Teradata Confidential > Test product and packaging ideas with brand champions that can then be called upon to endorse new products at launch. > Build demand plans based on detailed sales data then adjust production and distribution based on actual market performance as well as predicted demand from social channels. Improving Operational Performance
- 31. 31 4/16/2013 Teradata Confidential At Scale! For millions of consumers Dozens of brands Thousands of channels Expansive Supply Networks
- 32. 32 4/16/2013 Teradata Confidential Closing Thoughts • Consumer relationships must become a core competency – they are not outsourced • Business process and technology implications • Cross channel visibility within and across brands fundamental to maximum data leverage • Agencies remain vital, but their actions fuel CPG-owned consumer understanding and relationship creation • Integrated data eco-system as fundamental foundation for consumer engagement • Is your company ready to engage your consumers 1:1?
- 33. 33 4/16/2013 Teradata Confidential Consumer Insight as a Service Teradata Consumer Warehouse > Data capture and/or loading – Depending on sources > Data hygiene/ cleansing/householding > Data modeling/management > Data warehouse maintenance and management – Availability/performance elasticity assumed Comprehensive Reporting > System operations and performance > Campaign metrics and ROI Professional Services > Managed services > Implementation > Maintenance > Customization Teradata Marketing Automation > Campaign management software and execution (optional) > Automated workflow, DAM, financial management > Email creation and delivery/services > System configuration/tuning User Training > Training and education Analytics and Activation > Advanced Analytics – Teradata Data Mining Lab – Aster Data analytics > Partners – SAP, Celebrus, Accenture, etc. > Campaign execution
- 34. 34 4/16/2013 Teradata Confidential Connected Consumer White Papers The Connected Consumer Consumer First Three Steps to Optimizing Multi-Brand Wallet Share Scan to download the PDF
- 35. 35 4/16/2013 Teradata Confidential Solution Materials Scan to download the PDF Aprimo Relationship Manager Aprimo Master Data Manager
- 36. 36 4/16/2013 Teradata Confidential Q&A
Editor's Notes
- Abstract: Channels such as social media and mobile present new ways for manufacturers to interact with their consumers and shoppers yet doing so most effectively requires a focus on rich insights fueling interactions along the circuitous path to purchase. The digital breadcrumbs left by consumers and shoppers are of a variety and velocity that begs for big data platforms capable of making sense of multi-structured data at a pace matching the busy lifestyle of Connected Consumers. Ultimate value is unleashed when such a foundation integrates data from all sources – marketing, sales and operations – providing “create to consumer” visibility at less cost while ensuring accuracy and just in time decision support to stakeholders across the enterprise.
- First, recalling our presentation from last year’s Summit…we kicked off by showing a Google-produced infographic illustrating the “connectedness” of today’s consumers. Then, as now, the trend is only increasing as more and more consumers own smartphones and tablets, and use these to communicate on the go with their friends, social networks, brands and retailers. We talked about how because of this trend, many CPG companies were moving to embrace direct digital marketing as part of their mix, in some cases at the expense of traditional media. We talked about how Teradata offers solutions for helping CPG marketers understand and engage their consumers and shoppers to fuel insights and drive sales.
- This year we take the conversation beyond the realm of digital and consumer marketing, to a viewpoint inclusive of all the data available within and outside the Consumer Products company. The shopper’s path to purchase can best be understood and influenced when analytics inform not just marketing but sales and operational functions – and this takes literal “create to consumer” visibility. It is then that breakthrough value and competitive advantage are achieved.
- The 80/20 rule – a great rule of thumb that applies as much to the Consumer Products industry as any (in fact, maybe more when you consider that a very small percentage of shoppers – around 3 percent – drive 80 percent of volume in the first year of a new product). For our presentation today, we’re using it to show the drastic change in the influence that the retail store environment has on product purchase behavior.
- Old way of shopping, where 80 percent of purchase decisions could be influenced inside the store. Notice how no one in this photo is checking their mobile phone – because it’s the 1960s. Things have changed.
- Today’s shoppers by contrast have decided with some 80 percent confidence in the shopping list before they enter the store, and even when in the store mobile, social media and web communication channels connect the shopper to information, their households/friends/families and even the store (via purchase as shown) in ways never in the past possible. It challenges both manufacturers and retailers to “crack the code” of today’s transient shopping list – making path to purchase visibility a must. For retailers, “showrooming” has become the challenge, for manufacturers (especially food) it’s about “getting on the list.”
- Shopper behavior has given rise to an idea called “the zero moment of truth,” coined by Google and the topic of a book by the same name. ZMOT describes consumer behavioral change relative to the CPG industry’s long-held focus on a “first moment of truth.” It illustrates how the purchase journey is no longer a predictable, linear process but rather one facilitated and influenced by the web, mobile and social channels.The term “First Moment of Truth" (commonly called FMOT) was coined by Procter & Gamble in 2005 to define the first interaction between a shopper and a product on a store's shelf.This moment was considered one of the most important marketing opportunities for a brand, as P&G asserted -- and others believed -- that shoppers make up their mind about a product in the first few seconds after they encounter that product for the first time.While this first moment of truth is still important, the rise of full internet adoption and increased search engine use often lead to many brand interactions taking place between a consumer and a brand before that consumer ever sees a product on a shelf. This phenomena is what Google calls ZMOT.
- This infographic brings it home, showing the stages of the buying process and the influences affecting movement throughout the process. The process may be linear but the path is definitely not. Understanding the path for each of your consumers and using this insight to inform a personal relationship with each is becoming table stakes for CPGs competing for both scarce wallet share and also mind share – there’s simply so much stimuli in the consumer’s environment that only the smartest marketers – armed with the best data and analytics – will break through.
- Understanding how consumers make shopping decisions is more important than ever. It’s a fundamental insight needed to compete and win, otherwise price becomes the focal point of everything – the price the manufacturer charges to the retailer and the price paid by the consumer. Consumer products companies must figure out ways to add value other than price. Otherwise they risk succumbing to the realities facing today’s CP companies.
- With respect to “cracking the code,” it’s a good news/bad news situation for most companies.Good that virtually all CPGs have staffs of consumer and customer insights professionals and their companies acknowledge the value and power of the consumer today.Bad that few of those teams have access to detailed transaction details across all of their customer trading partners, let alone access to the rich mine of consumer data generated and often managed by third parties such as agencies and marketing services companies.
- The end state could look something like this, with every critical business function informed with one version of the truth. In Teradata parlance, we call the backbone our Unified Data Architecture, or UDA. The UDA serves to collect and integrate all data sources, and provide analytics to the entire organization.
- Starting with “the consumer” and marketing, we talk about focusing on three key areas – consumer engagement, actionable insight and accountability. Every company is at a different stage of development within each of these three pillars. All have the opportunity to leverage data and analytics to understand the path to purchase and use these insights to inform all of the marketing levers available to drive desirous shopper behavior.
- As we progress through the various stages of marketing sophistication, it’s important to use digital marketing effectively.Click 1:some brands may be more suited to mass marketing, while others will want / need to have the 1:1 relationship with the consumer. Click 2:likewise, there is consumer data that varies which will dictate how we communicate with consumers.The channel of communication may vary by brand, as well. Some consumers have only a shared street address, some will prefer email, while others want MMS.The channel will vary by consumer & by brand & potentially even by communication. In any case, the timing of relevant, coordinated communications is paramount, regardless of channel.Click 3: Digital channels are available today to capitalize on – in the short term – given the stage of marketing sophistication. Mobile marketing & ecommerce can help drive more interactive conversations, and to reach the consumer before they make their decision to buy. Plus, as new channels come online – as technology evolves –they can be leveraged without changing the underlying CRM system.Click 4: box disappears; not contentClick 5: Finally, consumers are changing as well. You want to keep the relationship with all consumers through all their life-stages -whether you’re a grandmother, a new mom, a family of 4, a 12-yr old girl, or the young adult going off on their own for the first time – CPG multi-brands have products/solutionsthat fit a life stage. Click 6: You are able to have one relationship with the consumer – but vary communication by brand, by communication channel, and consumer life-stage. From the novice marketer to the sophisticated analyst; for the masses through to the interactive conversations – Teradata enables this vision globally for all brands & all consumers.We are the leader in consumer marketing solutions, delivering 1:1 relationships for industry leaders worldwide (naming a few: Travelocity, Metro Group, British Airways, Bank of America, Verizon).
- The framework to power direct consumer relationships looks like this.Teradata’s best in class data management capabilities via the UDA enable the CPG IT organization to capture all data within and outside the business, then make it available to power analytics, serve the marketing operations function and drive direct consumer and shopper engagement.This complete “marketing system” leverages also Teradata applications for both Campaign Management and Marketing Resource Management to engage consumers thru their preferred channels. In the process data is generated, both voluntarily by consumers but also system-generated data on consumer actions, and all is fed back into the system to continually tune the entire process.
- Idea here is to emphasize the MDM challenge involved with obtaining and integrating data sources in many formats from many different agencies, based on many different brands and campaigns globally.This explains how we are solving for the MDM problem with one of the largest global CPGs that is engaging its consumers in the very way we have been talking about today.
- Idea here is to show the depth and variety of consumer data sources we are talking about. Also highlight how these data points are not always constant and are generated/used at different points in the shopping process within and outside the store. It’s dynamic data, continuously changing.
- Idea here is to show a simple diagram of the marketing process that “puts the integrated consumer data to use,” but also continuously builds upon and improves that data through a closed loop process aimed at creating brand affinity with analytics around lifestage.
- Idea here is to begin a simple illustration of the “how” around the Campaign Management capabilities of Teradata Applications as they relate to leveraging and contributing to integrated consumer insights.
- They enter the campaign at different timesThey progress through the dialog at their own pace via different routes, based on their particular needs and preferencesThey progress based on when THEY respond to each step, not in waves determined by pre-programming
- This example shows how the engagement process collects response and campaign effectiveness data on an individual basis, that can be paired with the profile of the targeted consumer. That profile is further enhanced by data collected and/or updated voluntarily by the consumer when information is requested as part of offer redemption, promotion participation or survey response. The totality of data can be used in segmentation, response modeling, predicted best next offer, and personalized messages or offers.
- Idea here is to show the depth and variety of consumer data sources we are talking about. Also highlight how these data points are not always constant and are generated/used at different points in the shopping process within and outside the store. It’s dynamic data, continuously changing.
- Idea here is to show the slice of the complete Create to Consumer view addressed by Consumer Insights as a Service, that is completely leverageable into the broader value proposition (Applications and Analytics) because the Consumer Engagement (Teradata applications) is part of the Teradata database (and its LDM, which is extensible into all the other subject areas and can be integrated with Aster for Discovery and if necessary Hadoop). We make it easy to begin this journey.
- For Marketing, a complete “create to consumer” view could…
- For the Sales organization, a complete “create to consumer” view could…
- For your Factory and Distribution Operations functions, a complete “create to consumer” view could…
- And do it all at scale, across all your consumers, for all your brands and retail partners, and across your supplier network.
- This is a summarization of the “how” as it relates to beginning the journey to Create to Consumer visibility by way of a Teradata solution (Consumer Insight as a Service). Teradata recognizes that most manufacturers are accustomed to outsourcing brand and digital marketing to specialized agencies. This solution reigns in the data created as part of their activities, marries it with spend and planning data in addition to other sources available such as POS transactions, then provides the integrated foundation to anyone inside or outside the company (like agencies) to engage consumers in a consistent experience. The overall effect is a more competitive company that achieves more value from its agency relationships while providing rich consumer insights to anyone in the company (not just marketing).