empowering the customer-centric journey with …...david buckingham president, aimia iss us region...

David Buckingham

President, Aimia ISS US Region

EMPOWERING THE

CUSTOMER-CENTRIC JOURNEY

WITH MULTIPLE DATA

STREAMS

Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.

AGENDA

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• Aimia

• TACT

• “Big Data” FRIEND or FOE?

• Smart Data: Good Idea/Bad Idea

• The Future

• Summary & Questions

https://www.google.com/url?q=http://www.sodahead.com/fun/store-closest-to-my-home-is/question-2105753/&sa=U&ei=jk1RU6LoMIi20AHRiIHYAQ&ved=0CC4Q9QEwAA&sig2=wgX3CKZkMkpq7hSkPAkfGg&usg=AFQjCNHHNChtEe4q8Yowj1muHARHcycLNQ


YOUR KEY TAKEAWAYS…..

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• Data proliferation is here to stay and as an industry we must be

conscientious stewards.

• There are some really smart things we can do to make life better, easier,

smarter and create “win wins” for consumers, businesses & even the

world (if we truly want to).

• Top three rules in data integration, leverage and output:

“Relevant, relevant, relevant!”

• (shameless plug) Aimia is an innovative & responsible loyalty company

doing “b-leading” edge analytic and execution work that we are pleased

to share so you can reap the benefits as well!

https://www.google.com/url?q=http://www.sodahead.com/fun/store-closest-to-my-home-is/question-2105753/&sa=U&ei=jk1RU6LoMIi20AHRiIHYAQ&ved=0CC4Q9QEwAA&sig2=wgX3CKZkMkpq7hSkPAkfGg&usg=AFQjCNHHNChtEe4q8Yowj1muHARHcycLNQ


AIMIA BUILDS DATA-DRIVEN PROGRAMS TO HELP OUR CLIENTS GET CLOSER TO THEIR CUSTOMERS

PROPRIETARY

LOYALTY

LOYALTY

ANALYTICS COALITION

LOYALTY

GA exc LMG

LMG

GA inc. LMG

Legend:

CANADA

USA

MEXICO

CHILE

BRAZIL

UK

ITALY

SPAIN

INDIA

MIDDLE EAST

AUSTRALIA

SINGAPORE

NEW ZEALAND

INDONESIA

MALAYSIA

HONG KONG

JAPAN

SwitwerlandSWITZERLAND

GA exc LMG

LMG

GA inc. LMG

Legend:

CANADA

USA

MEXICO

CHILE

BRAZIL

UK

ITALY

SPAIN

INDIA

MIDDLE EAST

AUSTRALIA

SINGAPORE

NEW ZEALAND

INDONESIA

MALAYSIA

HONG KONG

JAPAN


GA exc LMG

LMG

GA inc. LMG

Legend:

CANADA

USA

MEXICO

CHILE

BRAZIL

UK

ITALY

SPAIN

INDIA

MIDDLE EAST

AUSTRALIA

SINGAPORE

NEW ZEALAND

INDONESIA

MALAYSIA

HONG KONG

JAPAN


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https://www2.aeroplan.com/home.do

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=HvBfkGx2k7O_pM&tbnid=4ail5RddnDDOIM:&ved=0CAUQjRw&url=http://www.american-gymnastics.net/wp-content/uploads/2011/02/&ei=MboxUqPeM42y9gTrsYCYDQ&bvm=bv.52109249,d.eWU&psig=AFQjCNE4hL8LrE2UkXnNGE7Fw6PJKkOBPQ&ust=1379077035036152

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Wi8mgM0l0nJi-M&tbnid=9zMcfiySDMLKHM:&ved=0CAUQjRw&url=http://www.logodesignlove.com/wegmans-logo-redesign&ei=77kxUrijH4-89QSCj4GgAQ&bvm=bv.52109249,d.eWU&psig=AFQjCNGGmTeweExNRMT-JKYLybcr80dydg&ust=1379076960372281


AIMIA’S CLIENTS ARE LEADERS AROUND THE WORLD

Platform People Process

5



https://www.google.com/url?q=http://myskineez.com/blog/&sa=U&ei=Tl9RU8HSLMnW0QGvu4H4AQ&ved=0CFAQ9QEwEQ&sig2=UGbj3WvR1HSY-4xHpSZAhA&usg=AFQjCNE8q2xL9Yq4OZHTzYER0okvPZ3Bbg


AIMIA MAKES BUSINESS PERSONAL & IMPACTFUL

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AIMIA MAKES BUSINESS PERSONAL & IMPACTFUL


AIMIA’S PROVEN TRACK RECORD - OVER 250 MILLION HOUSEHOLDS & OVER 250 CPG VENDORS WORLDWIDE

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EVERY DAY WE EACH LEAVE OUR FOOTPRINT…….

This is what Aimia can do with those footprints…….

Ongoing Transaction & Customer Data

Sources

POS

On Line

Delivery

Web

interface

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FINELY-TUNED MARKETING ENGINE FOCUSED ON UNDERSTANDING & SERVING EACH SHOPPER

Data Hygiene

Processes

Reporting

Tools Ongoing Transaction & Customer Data

Sources

3rd Party Sources

Daily Activity

Marketing Data Warehouse

Data Append Process

eMail, On Line, tablet

Mobile, Telemarketing

Personal Experience:

Tailored

Communications

Direct Mail

Reports (Daily / Weekly / Monthly)

Social Channels

Self Serve

Analytics

Platform

Campaign

Management

Self Serve

Dashboards

Product

Price & Promotion

In-Store Experience:

Placement

POS

On Line

Delivery

Web

interface

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“Google policy is to get right up to the

creepy line but not cross it.”

Eric Schmidt Google Executive Chairman

THE CREEPY LINE


AIMIA TACT DATA VALUES

TRANSPARENCY ADDED VALUE

CONTROL TRUST

CUSTOMERS

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BIG DATA: FRIEND OR FOE?

• Guardrails around Big Data:

–Treat all data as an important asset;

–Each data source has a purpose;

–Sum is greater in application than the parts individually;

–PII not identifiable;

–Permission-based where needed;

–RELEVANT and value add is very evident to the end user consumer

= Intelligent Data

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INTELLIGENT DATA


BUSINESS ISSUE

• To optimise marketing costs and ensure collectors only receive

relevant communications, Nectar uses propensity models to target

messages and offers.

• Previously, the propensity model for Sainsbury’s Bank used only

Nectar demographic data.

OUTCOME

• Predicted response was improved by including variables from the

various data sources

• The model will be employed to optimise future communications for

Sainsbury’s bank.

ANALYTIC APPROACH & DATA INPUTS

• Data describing which aisles customers purchased from was

combined with coalition behaviour, demographics and external

data sources. The aim being to provide a more comprehensive

view of the customer.

• This data was used to build a new propensity model.

.

PROPENSITY MODEL IMPROVED BY 20%: SAINSBURY’S

AISLE DATA IS COMBINED WITH NECTAR DATA

For the best 30% of customers, the new model showed an

improvement of 20 percentage points (in predicted response)

over the old model

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BUSINESS ISSUE

• eBay’s current personalisation algorithm serving images on the

homepage billboard was not effective for low-value customers, the

Buy-a-Little segment

• Aimia Advanced Analytics devised a recommendation engine to

provide highly personalised homepage content

EBAY HOMEPAGE TEST DELIVERED 1.4% UPLIFT BY USING TARGETED PERSONALISED CONTENT

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OUTCOME

• 100,000 unique recommendations were provided to 1 million Buy-

a-Little customers across 7,500 clusters

• Recommendation engine delivered significant uplifts; 1.4% in

Spend and 1.2% in items bought in recommended categories

• Project provided eBay with additional recommendation capabilities,

e.g. for personalising emails


• The solution leveraged purchase data from high-value customers,

the Buy-a-Lot segment

• To do this we twinned every Buy-a-Little customer with similar Buy-

a-Lot customers

• A Buy-a-Little customer’s recommendations are based on:

i. Their browsing activity

ii. Items Bought by the Buy-a-Lot customers in their cluster


BRITISH GAS MODELLING HAS DRIVEN A TAILORED CUSTOMER CONTACT STRATEGY

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USE NECTAR, SPONSOR,

SALES AND RESEARCH DATA

INDIVIDUALISED CUSTOMER-CENTRIC CONTACT STRATEGY

DEVELOPED A SCORECARD

TO MEASURE ENGAGEMENT WITH

THE BRITISH GAS AND NECTAR PARTNERSHIP used to measure likelihood for retention, up-sell and

cross-sell as well as potential long term value

LOYALTY SCORECARD

Developed a suite of acquisition models

that target Nectar customers with relevant product offerings PROPENSITY

MODELLING

NEXT UP DECISION MODEL determines the best product offering to give

to a customer based on his/her lifecycle

NEXT UP

MODELS

CONTINUALLY REFINE OFFERS based on results of

previous communications

CONTACT

HISTORY


BUSINESS ISSUE

• Engage with customers more effectively and completely across all

moments of truth including in-store/at shelf

OUTCOME


• Leveraged two customer segmentations – behavioral Customer

Segmentation and Trip Missions

• Trip missions uncover category affinities and associations and

drive store layout and shelf assortment

• Top customers’ brand preferences within each trip was used for

the promo 4-way

.

GENDER AISLE DRIVING 10% SALES GROWTH &

6% MARGIN GROWTH

Sales Margin Sales Margin Sales Margin

Shave 16% 12% 12% 6% 28% 26% 74%

Deodorant 11% 11% 4% 6% 22% 18% 24%

Hair Remover 10% 15% - - - - 3%

Personal Cleansing 8% 11% 3% 12% 11% 11% 17%

Trial -33% -42% - - - - -18%

Sales Uplift

Contribution

Total Male FemalePOG Items

Preferred Brands on 4-way

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• The background

Homebase wanted to identify which customers have the biggest headroom opportunities

Top customer SOW is 58% and higher than the base average of 47%

but headroom for growth remains

• The process

SOP analysis allow us to identify:

– The size of the DIY market and Homebase’s head room within it

– Homebase collectors that are high DIY spenders

DETERMINING HEADROOM IN DIY- HOMEBASE DEFINES ITS SHARE OF WALLET

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47%

58%

43%

53% 42% 57%

All Homebase Nectar customers Top customers Non-top customers

Homebase spend Shed spend (not in Homebase)

RESULTS Top customers represent 30%

of HB total spend and 19% of shed spend

Homebase customers that spend in competitors spend 46% more than Homebase only collectors

Homebase SOW is 57% during peak as collectors are buying more from Garden World


A WORD ABOUT THE FUTURE……

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More data = More

relevancy

Mobile “the remote

control of life”

Embrace social

media

One to one

advertising

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&docid=XpVZFXnj9KaLxM&tbnid=7stN52mM7BInsM:&ved=0CAUQjRw&url=http://www.wellplannedweb.com/2012/01/hyper-relevant-content-2012/&ei=aBSOU_aFMMbKOJ_vgegM&bvm=bv.68191837,d.bGE&psig=AFQjCNEnk06s3YTuBB-7K6ydIIs0H2SirA&ust=1401906580903978


AIMIA VISION

“I know my customers

inside out – not only

from transactional data,

but also through a

continued dialogue

about their interests and

goals”

“I respect and trust the

way my retailer uses my

data because what I

receive is always

relevant and they help

me use my data to

achieve my goals”

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http://www.google.com/url?sa=i&source=images&cd=&docid=y3Rxp2lO_rYsKM&tbnid=gfbaDdiPApyA6M&ved=0CAgQjRw&url=http://www.frugalcouponliving.com/2011/12/03/top-retail-and-restaurant-coupons-123/&ei=yh15U7qWOIqlyASgzoHQCQ&psig=AFQjCNHqGiqEvBaN5nOK91Y5Uyqx7C7erw&ust=1400532811001984


PROVIDING CUSTOMERS ACCESS TO RESOURCES & DATA TO HELP THEM ‘SHOP SMARTER’

Help me manage my

Budget

Help me be Healthier

Help me be more Green

Informed Customer

Known Shopping &

Agreed Participation

Customer provides family composition and

other data to provide a better view

21

http://www.google.com/url?sa=i&source=images&cd=&docid=y3Rxp2lO_rYsKM&tbnid=gfbaDdiPApyA6M&ved=0CAgQjRw&url=http://www.frugalcouponliving.com/2011/12/03/top-retail-and-restaurant-coupons-123/&ei=yh15U7qWOIqlyASgzoHQCQ&psig=AFQjCNHqGiqEvBaN5nOK91Y5Uyqx7C7erw&ust=1400532811001984


PROVIDE CUSTOMERS WITH THE ADVICE THEY WANT

Instead of these items: Try these items:

Show the customer’s top 3 healthier alternatives only.

Shop HEALTHIER Personal Goal: Reduce fat intake

Fat 21.3g Salt 1.3g Sugar 16.6g






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For more results click here


PROVIDE CUSTOMERS WITH THE ADVICE THEY WANT

Shop CHEAPER

Instead of these items Try these items

Showing your top 3 cost saving opportunities only. For more results click here

Saving

0.61

0.60

Your total basket saving opportunity = £4.25

0.41

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BENEFITS OF ENGAGING CONSUMERS IN A DIALOG TO INTEGRATE INTO INTELLIGENT SHOPPER MODELS

RETAILER

Greater understanding of customers & their intentions

Reinforces Retailer’s values

Higher engagement/ trust with customers

Demonstrates leadership

Positive PR

Differentiates online offering

Drives more visits to website or app

Increases loyalty to Retailer

CONSUMERS

Drive trust in retailer – “they understand and help me”

Greater insight on own shopping habits

Advice on how to achieve goals – healthier, greener, budget

shopping

Help achieving goals – eg. import advised shopping list

onto app

Customer gains control over their data

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THANK YOU

empowering the customer-centric journey with …...david buckingham president, aimia iss us region...

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