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CxPA Webinar
Harness the power of unstructured data
to enhance customer experience
Barb Buettin, Director, CRM-Enterprise Information Management, Chico’s
Wilson Raj, Global Customer Intelligence Director, SAS
#sasci
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Contents
Context for Unstructured Data
Data Strategy for Customer Experience
About Chico’s FAS
It’s All About the Data
A Study of Customers
Q&A
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Organizations’ Use of Data
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POLL QUESTION # 1
Which of the following are you currently collecting as
“unstructured” / “Big” data and/or using with
analytics today ?
A. Structured data (tables, records)
B. Semi-structured data (XML and similar standards)
C. Complex data (hierarchical or legacy sources
D. Unstructured data (text, audio, video)
E. Social media data (tweets, blogs, social platforms)
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Customer-Centricity: Value, but Barriers
• 7 percent felt their organizations do “very well” at bringing
together useful customer, product and project data from all sources
and sharing it among product development, marketing and customer
service staffs
• 98 percent say “immediacy” within their organizations is
either a “somewhat-critical” or “mission-critical” priority
• 87 percent consider it “very important” to share near real-
time integrated data — if they had it — between product
management, customer service and sales in their organizations.
• 66 percent say their organizations either can’t bring together
customer, product and project data from all sources and share it or
are trying to share but are facing challenges.
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Coveo Survey: 100+ execs in Argyle Executive Forum 2011 - Customer Care Leadership
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Unstructured Data: A Perspective
• All data is “born”
unstructured
• Adding structure can
cause loss of valuable
information along the
way
• Think in terms of
“haggling data”
• Value of “haggling
data in terms of
customer insight
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Types of Data in Your Business
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Structured • Relational &
Legacy dB
• Spreadsheets
• Flat files w/defined
record formats
Semi-Structured • XML
• EDI documents
UnStructured • Web
• Wikis
• Documents
• Email/Messages
• Log files
• RSS feeds
• Multimedia
• Analyst Reports
• Journals
• Corporate filings
• Press mentions
Static • Internal docs
• Marketing
content
• Sales reports
• Social media
• Chat
• Ratings/Reviews
• Breaking news
Dynamic/Real-time • Customer call logs
• Customer service
notes
• Meeting notes
• Transcripts
Corp
ora
te
Inte
rnet
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POLL QUESTION # 2
Are you able to capture unstructured data and
integrate with your marketing processes?
A. All or most of the time
B. Some of the time
C. When we can
D. Not currently able to do it
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Value of Unstructured Data (… or any Data)
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Connected Data Strategy for CxP
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Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2012 | SAS
Rational needs Information,
Transaction, Service
Emotional needs Belonging, Identity, Aspiration,
Performance, Knowledge
Unstructured
Structured
Semi-structured CxP
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POLL QUESTION # 3
Which of the following is NOT a Chico’s FAS Brand?
A. Chico’s
B. White House | Black Market
C. White House
D. Soma Intimates
E. Boston Proper
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Who is Chico’s FAS
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How we use marketing automation
Highlights
Segment Catalog Mailings and Differentiate Promotion Efforts for Maximum Impact
Make Midpoint Corrections
Bring Lapsed Customers Back to Chico’s at Triple the Success Rate of Previous Campaigns
Cross-sell Across Brands
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Why Implement a New Solution?
10 year old technology on top of an extremely rich set of
data
– Huge missed opportunity!
“Locked” data model
– Inability to provide agile marketing or grow with the business
Lack of data integration
– Marketing is fluid, dynamic, and reactive with sometimes
unexpected unstructured data from unexpected sources
– Analytics was impossible
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POLL QUESTION # 4
What is the biggest challenge you’re facing in your
marketing and customer experience efforts?
A. Extracting actionable insights from your data
B. Driving relevant personalized customer interactions
C. Measuring customer experience performance
D. Other
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What are we looking for? Closing the loop on Direct Marketing
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Customer Insight
-How do we better
understand our
customers and their
behaviors?
Marketing
Performance
- How can we drive
personalized
communications to our
customers?
Customer Interaction
- How can we measure
marketing efforts and
immediately act on the
results?
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Strategic Support - Marketing
Customers – Who is she?
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Competitive
Landscape
Online Behavior
Trade Area Local Markets
Demographic
Overlay
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Strategic Support – Marketing
Cross Brand View of our Customers
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Chicos’ FAS Customer
Cross Brand Pollination
Chico’s, SOMA,
WHBM, and Boston
Proper as Independent
Brands
Give her
the extras!
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Our Data Systems and Vendor Environment
– Internal Customer
Data
–Online and Store
Shopping Behavior
–Planning & Allocation
–Workforce Scheduling
The future is in relating all
of the pieces to each other
in ways that are actionable
Customer
Enhanced
LoyaltyPreferences
Campaign
Customer
Response
Campaign
management
EventsLoyalty
management
CustomerCustomer
Enhanced
LoyaltyPreferences
Campaign
Customer
Response
Campaign
management
EventsLoyalty
management
–External Customer
Data (Abacus)
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Strategic Support – Marketing
Results
Data Integration
– Fluid, Dynamic, Reactive FAST
– Enable enhanced loyalty programs (CRM ODS + SAS)
Analytics
– Analytical modeling for more precise communications (allows better
targeting)
– Predictive! What is likely to be her next purchase?
– Internal Cross-brand Prospecting
Targeting!
– Customer Intelligence • What is relevant to me?
• Who DOESN’T need an offer to respond?
– Item Brand Distinction – store versus Item
Personalization
– Location Callouts on specific collateral
– Thank You’s! from associate of most recent purchase
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0
1
2
3
4
5
6
7
8
0 200 400 600 800 1000 1200 1400 1600 1800 2000
The World Is Changing Rapidly B
illio
ns o
f P
eople
World Population
Year
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The Apparel Industry and Communication Technologies
Are No Exceptions 6000-3000 BC
Weaving
Wheel
1900’s 2000’s 1800’s 1700’s 1600’s 1500’s 1400’s 1300’s 1000’s -1100’s 1200’s
Spinning
wheel
Printing
press
Paper
Arabic
numerals
Writing
Abacus
Adding
machine
Telegraph
Braille
Typewriter
QWERTY
keyboard
Telephone
Light bulb
Automobile
Radio
Television
Computer
Integrated
circuit
Calculator
Micro-
processor
Ethernet
Internet
Mobile
phone
WWW
Flying
shuttle
Spinning
Jenny
Water frame
Mechanical
loom
Cotton gin
Jacquard
loom
Power loom
Sewing
machine
Safety pin
Synthetic
dye
Blue jeans
Ready-
made
clothing
Ready-
made shoes
Department
store
Zipper
Sunglasses
Polyester
Nylon
stockings
Bikini
Spandex
Coat hanger
Shopping
bag
Mall
Stocking
frame
Buttons Nano-Tex
Salmon-
skin leather
Luminex
Speedo LZR
Spider-web
silk
Woodblock
printing
Home
broadband
Commercial
VoIP
WiFi
Mobile 3G
WiMAX
Web 2.0
YouTube
Blackberry
HDTV
Multi-core
processing
iPod/iTunes
iPhone
iPad
Is there still a place
for brick and mortar
stores in this
increasingly digital
environment?
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Supply Chain Actions Start With Customers
Traditional view of the supply chain – Merchandise planning
– Store clustering and assortment planning
– Logistics and distribution capabilities
Chico’s FAS view of supply chain – Put the right merchandise in the right store at
the right time
– Be there when she is there
“CUSTOMERS FIRST”
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We’re Working to Better Understand Our Customers
INCOME NET WORTH
Vast majority of customers are baby
boomers
Customers are a
mix of Gen X, Y,
and Boomers
60% of customers
also shop Chico’s;
40% are Soma only
78% of customers are above U.S. median income
78% of customers
are above U.S.
median income
80% of customers
are above U.S.
median income
76% of customers are above U.S.
median net worth
53% of customers
are above U.S.
median net worth
71% of customers
are above U.S.
median net worth
AGE RANGE
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Top customers shop and spend
several times more than an
average customer
Retention and reactivation of these
customers is paramount
Customers are shopping across
multiple channels differently
Identifying new customer shopping
trends to target high-potential
future loyalists
We’re Working to Better Understand Our Customers
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Customer Behavior Clustering
• Clustering of customers into groups based on their shopping behaviors
– Customer spend
– Categories of products
– Lifestyle indicators
• Match back what we know internally about these customers
– Total Chico’s spend
– Loyalty and retention
– Outfitting vs. non-outfitting
– Geography
– Income
– Net worth
– Age
Book Worms
Comfort Seekers
Southern Value Hunters
Senior Development
Value Families
Chico’s Loyalist
Town & Country
West Coasters
Urban Chic’s
Affluentials
Bro
nze
Silver
Go
ld
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Chico’s Cluster Comparison
Affluentials
Tend to live in the Northeast
More direct and multi-channel
Above average customer income
Shops and spends more than the
average customer
Spend proportionately more at
Chico’s in these categories:
– Collections
– Shorts
– Sweaters
Book Worms
Tend to live in the South
More outlet only
Below average customer income
Shops and spends less than the
average customer
Spend proportionately more at
Chico’s in these categories:
– Travelers
– Jewelry
– Accessories
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Business Implications
• Which new customers have the greatest potential to
become our best customers in the future?
• Along which lines should we be stratifying our product
customizations for the greatest in-store benefit?
• What forms of individualized clienteling do our customers
want to experience when shopping with us?
• How do our customers want their marketing
communications from us to be customized?
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Other Opportunities
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POLL QUESTION # 5
Would you characterize the relationship between your
business units and IT as a strong, collaborative
partnership?
A. Strongly Agree
B. Agree
C. Somewhat agree
D. Disagree
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Business and Technology Partnership
Key to Our Success
• Physical proximity to each other
• Alignment on strategic discussions and decisions
• Prioritization of work is for the greater good
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Marketing Technology
Support
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Continue the Conversation
Resources for Slideshare Viewers:
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Check out this conclusions paper summarizing the discussion:
Ten Ways to a Customer-Centric, Data-Driven Business Strategy
• Register here: http://go.sas.com/bvza68
Engage on our blogs: Thought Leadership: The Knowledge Exchange
http://www.sas.com/knowledge-exchange/customer-intelligence
Marketing Practitioners’ Views: Customer Analytics Blog
http://blogs.sas.com/content/customeranalytics/
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