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Achieving Personalization at Scale
- 1. © dunnhumby 2013 | confidential
Achieving Personalization at Scale:
It’s Time to Expect More from CRM
- 2. © dunnhumbyUSA 2013 | confidential
● Where are we as an industry?
● Why is Relationship Marketing so important?
● What are the fundamentals for effective and customer-first
Relationship Marketing?
2
Achieving Personalization at Scale
It’s Time to Expect More from CRM
When done well, customer-first Relationship Marketing creates a
dialogue with your best customers, delivers revenue, and informs
your total marketing mix
- 4. © dunnhumbyUSA 2013 | confidential
4
$481.6 $503.0 $517.0
$542.5
$566.4
$592.5
$616.7
2011 2012 2013 2014 2015 2016 2017
Source: eMarketer, June 2013
Total Media Ad Spending Worldwide (Billions), 2011-2017
Includes: digital (online & mobile), directories, magazines, newspapers, outdoor, radio and TV
Yet, media is not a zero sum game
- 7. © dunnhumbyUSA 2013 | confidential
7
Source: Adobe, North American Technographics Online Benchmark Survey (Part 1), Q2 2012
9%
10%
12%
15%
18%
27%
32%
43%
46%
55%
70%
Text messages from companies or brands
Ads on websites
Info on mobile applications from companies…
Posts by companies or brands on social media
Emails from companies or brands
Sponsored search engine results
Info on websites of companies or brands
Natural search engine results
Consumer-written online review
Professionally written online reviews
Brand or product reco's from friends and family
“To what extent
do you trust each
of the following
types of
advertising/
promotion?”
Just because we trust friends
…doesn’t mean we want you
in our Facebook feed
- 8. © dunnhumbyUSA 2013 | confidential
8
…doesn’t mean we want you
texting us
Source: Adobe, North American Technographics Online Benchmark Survey (Part 1), Q2 2012
9%
10%
12%
15%
18%
27%
32%
43%
46%
55%
70%
Text messages from companies or brands
Ads on websites
Info on mobile applications from companies…
Posts by companies or brands on social media
Emails from companies or brands
Sponsored search engine results
Info on websites of companies or brands
Natural search engine results
Consumer-written online review
Professionally written online reviews
Brand or product reco's from friends and family
Just
because
we like
our
phones
“To what extent
do you trust each
of the following
types of
advertising/
promotion?”
- 11. © dunnhumbyUSA 2013 | confidential
5 Fundamentals for effective relationship marketing
11
1. Respect the power of the opt-in
2. Personalization is a necessity
3. Love the ones you’re with
4. The real value of data lies in how you use it
5. When done correctly, it works
- 13. © dunnhumbyUSA 2013 | confidential
13
Who’s personal inbox
doesn’t look like this?
We are all bombarded by…
1. Grocers
2. National retailers
3. Specialty retailers
4. Local retailers
5. Travel sites
6. Service providers
7. Financial services
8. Entertainment
9. Magazines
10. News articles
11. Google alerts
12. Bill collectors
13. Social media sites
14. Personal emails
15. etc…
16. etc…
If you are not relevant you might be ignored,
or permanently removed
- 14. © dunnhumbyUSA 2013 | confidential
Personalization is a necessity
14
HOW I SHOP
WHERE I AM
WHAT I BUY WHAT I
SEE/HEAR
WHO I KNOW/
INFLUENCES (MY
SOCIAL NETWORK)
HOW I DECIDE
WHO I AM
WHAT I LIKE
MY NEEDS/
PREFERENCES
MEDIASHOPPING
MOTIVATIONS
2
- 15. © dunnhumbyUSA 2013 | confidential
Customers should be at the center of all decisions
15
Content
Channel
Cadence
Currency
- 16. © dunnhumbyUSA 2013 | confidential
You need to invest in your best consumers
16
80
101
107 108
114
102
Under
$35K
$35-49K $50-74K $75-99K $100-149K $150K
CRM members are
19% more
likely
to be Very Price
Sensitive
and yet tend to be more affluent
Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US
and 70% more likely
to buy your
brand with a
coupon
Personalized promotions are a key way to deliver relevance and value
- 18. © dunnhumbyUSA 2013 | confidential
18
CRM members are
36%
less likely
to leave your brand
year on year
Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US
- 19. © dunnhumbyUSA 2013 | confidential
19
visit 5%
Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US
than even the rest of your retained shopper base
Those who stay…
more often
and spend
14% more
- 20. © dunnhumbyUSA 2013 | confidential
CRM should be used to increase loyalty,
not drive brand penetration
20
318%
1%
15%
17%
49%
60%
Source: 2013, aggregated results from 10 studies conducted on CPG programs in the US
average
average
average
Increase in CRM consumer purchase behavior metrics vs. typical
brand buyer across multiple programs
half of CRM programs
penetration
visits
spend
- 21. © dunnhumbyUSA 2013 | confidential
The real value of data lies in how you use it
21
Quality of your data fuels
the personalization engine
CRM serves little value
if it’s kept in a box
4
- 22. © dunnhumbyUSA 2013 | confidential
Use the data you have
Purchase behavior can
be leveraged to create
meaningful consumer
segments to drive
personalized content
By merging your CRM
data with actual
purchase data,
segmentations can be
applied to all CRM
members
Personalization does not have to begin with 1:1
- 23. © dunnhumbyUSA 2013 | confidential
Segmented approaches provide early wins
23
CRM DATA PURCHASE DATA OPPORTUNITIES
Coupon engagement Brand and category
purchase dynamics
CUSTOMIZE OFFERS TO REDUCE
SUBSIDY AND DRIVE GROWTH
Web visits and
behavior over time
Longitudinal category
share and competitive
switching
TRIGGER DEFENSIVE COMMUNICATIONS
AT THE RIGHT TIME TO PREVENT
SWITCHING
Recipe engagement Total food and beverage
behavior
TAILOR BRAND AND TONE TO
INCREASE CONVERSION
Web and social
media behavior
New product early
adoption
TEST AND PROMOTE NEW ITEMS WITH
THE RIGHT CONSUMERS
Age and family life-
stage
Category migration
behavior
GUIDE CONSUMERS THROUGH YOUR
PORTFOLIO AT THE RIGHT TIME
+
+
- 24. © dunnhumbyUSA 2013 | confidential
24
CRM should influence marketing decisions across
the path to purchase
• Robust view of consumer path
to purchase as insights tool
• Develop new products to solve
for unmet needs in identified
CRM consumer segments
• Test innovation against
engaged consumer base
• Reapply identified CRM
consumer segments in
purchase-based targeting
• Measure all media with the
same lens and KPIs
• Connect social behavior to
CRM for consistent messaging
• Reduce waste from mass
promotions and re-invest in
more targeted offers
• Optimize on-pack messaging
with top performing content
• Cross promote brands that
perform well together
MARKETING MEDIA RETAIL
- 25. © dunnhumbyUSA 2013 | confidential
25
When done correctly, it works
Relevance & Value
Engagement
Data
Sales
Loyalty
5
- 26. © dunnhumbyUSA 2013 | confidential
26
CONSUMER RESPONSE TO
RELEVANT TARGETING
BRAND BUYING
BEHAVIORAL
SEGMENTATIONLIFESTYLE
SEGMENTATION
RELEVANCY
MODELINGRESPONSE
MODELING
ENHANCED
HOUSEHOLD
TARGETING
OVER TIME
Success breeds success
2-5%
UPLIFT
and transforms CRM into a
profit center
Source: 2013, aggregated results from multiple CPG and retail sectors, domestic and international
- 27. © dunnhumbyUSA 2013 | confidential
27
Do you currently engage directly with your best consumers?
What behavior are you collecting on them?
What are you doing with the data you have?
Do you have the organizational support to put the consumer first?
Are you ready to take your
marketing to the next level?