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Quantitative Marketing & CRM Enablement

Todd TalkingtonTableau Software

Brian DirkingAlteryx Inc.

Nikki SmithSally Beauty

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© 2016 Alteryx, Inc. | Confidential

Alteryx - The Leading Platform for Self-Service Data Analytics

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© 2016 Alteryx, Inc. | Confidential

Download a FREE Trial: www.alteryx.com/alteryxfortableau

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their Data

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SALLY BEAUTY OVERVIEW

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Sally Beauty Overview

3,673 Stores World Wide

Hair Color, Hair Care, and Appliance Are Top Categories

Professional Stylist and Retail Consumers Are Our Customers

12 MM Active Loyalty Members

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About Nikki Smith

Marketing Database and Analytics Manager

Has been with Sally Beauty for 4 years

Over 6 years experience in the marketing industry. Majority of experience is in channel (email, direct mail, and digital) marketing and customer insights

Fun Fact: I am half “crazy plant lady” and half foodie. Most of my free time is spent deciding what I want to eat next.

Contact: LinkedIn - https://www.linkedin.com/in/nikki-smith-aa840150

Email – NikkiSmith@sallybeauty.com

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Marketing Analytics Overview

CRM

Loyalty

E-Commerce

Brand

Merchandising

Who We Support

Marketing Analytics Team

Analytics Partners

DW Reporting

Segmentation

Strategic Briefing

Business Case Dev

PM Engagements

Lead Test & Learn

Key Areas of Ownership

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CRM Solution Stack

Personalization & Triggers

Customer Targeting Strategy

Marketing Data Sciences & Analytics

Marketing Platforms & Partners

Customer CRM

Data Hygiene & Quality Management

Data Mart

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Data Environment

Point of Sale

Ecommerce

Customer Svc

Customer DW

Sales DW

Sales DW

Email Print Display

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ANALYTICS PAST AND PRESENT

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Reporting - Past

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Reporting – Past and Present

Reporting done in Access and Excel

Transactional data and customer data was not in central location

Sales/Transactional data pulled from application that did not support adhoc reports and was no longer supported by IT

Relied on IT to pull flat files for customer level analysis.

Turn around for IT files took days to weeks

Campaign data not stored for to look at performance trends or historical view

Month end reporting took 2 – 3 weeks to pull all data and analyze

Reporting done in Alteryx and Tableau. Both tools directly connected to data mart.

All data in centralized data mart

Self-sufficient analyst; no longer need to rely on IT to pull flat files

Campaign data is feedback to data mart. Allowed team to build dashboard to see campaign performance and see historical trends

Month end reporting takes 5 – 7 business days

60% of reports built in Alteryx work flow. Allowed for consistent and error- free automatic reporting.

Automated standard reports and have more time for analyzing CRM initiatives

Past Present

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Analytics Solution Overview

Alteryx - reusable monthly reporting workflows, demographic data, Alteryx Server Apps, predictive tools, and for complex adhoc data analysis

60% of monthly reports built in Alteryx for reusable work flow Customer migration reports Channel reports Loyalty member metrics

Reporting time frame cut in half and can answer complicated adhoc data questions in hours not days Can output finished reports. Do not have to build report in one tool and polish in another tool.

Tableau – dashboard, data visualization, and simple adhoc questions Dashboard gives leadership team ability to track results and customer groups easily Visualization showed us trends that weren't seen on a flat spreadsheet Allowed for non-data people to answer their data questions

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Monthly Automated Reports Examples

Monthly Promotion Email Channel Report

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Email Report Output

Traditional Excel Output Only Showed Basic Trends; Email Open Rates, CTO, and Conversion Rates. Not Able to Determine Trends

Regarding Content and Timing of Message

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Visualizing Data Allowed Us to Determine Emails Sent Towards Beginning of Week Have 1-2% Higher Open Rates.

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Tracking Entire Email Base Showed Trends Among Different Loyalty Segments

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One Question That Kept Being Asked Was: How Is The Customers Purchasing Behavior Changing Month To Month?

Customer Spend and Transaction Migration Workflow

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Once Data Was Visualized We Were Able to See How Customers 12 Month Spend and 12 Month # Transactions Was Impacting

Overall Sales

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Having Visualized Loyalty Discount Abuse Reporting Has Allowed For Store Territory and District Managers Reduce

Coupon Abuse at Individual Store

Alteryx Work Flow

Tableau Dashboard

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DATA PORTAL

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Reporting – Market Basket Applications

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Reporting – Coupon Reporting App

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Building Apps on Alteryx Server Has Empowered Other Departments to Make Decisions Based on Data

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Having Tableau Dashboards Allowed For Leadership Team to See Results for Sales, Marketing Campaigns Performance, and

Customer Behaviors On Their Own Time

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CRM AND CUSTOMER SEGMENTATION

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CRM Support

Geocoding and CASS App and Interface Tools Demographic Appends

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Marketing Data Sciences – Customer Segmentation

• Demographic analysis tools were used to append ethnicity, occupation, hobbies and interests, and household information

• Appended data and 24 months of transactional data was used to identify different and distinct clusters of customers

• Personas were developed around the clusters to identify the key characteristics/differences of each cluster.

• Now that clusters and persona are in place various cross/up sell , retention, and life cycle modeling is being done at the cluster level

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Marketing Data Sciences – Predictive Model Building

Adhoc analysis lead to discovery of a 1X time shopper problem 26% of all new loyalty members didn’t have second transaction

Product transactional data, customer contactability, and demographic data were input variables in to a regression model to determine which inputs predicted a high likelihood of becoming a 1X shopper.

Estimated 1.5% growth on monthly revenue from converting these 1x customers in to multiple time buyers.

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We Learned That Customer Who Purchased High Ticket Items( Appliances and Hair Extensions) Made Up Close To 50% Of

All 1x Customers

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Reporting Alteryx Server

Create more self-service reporting apps to allow other departments to be empowered with data, such as brand performance, category performance, and additional customer insights

In-Database Create in-database process to write data directly to data mart to be able to operationalize faster

Tableau Optimize Tableau Server to have more summary tables to cut querying time Get more Sally Beauty departments to utilize the dashboard

Data Mart Enhancements Simplify data to a 1:1 customer relationship to allow for easier customer level reporting Create write-able tables to write segmentation data directly to data mart

CRM Have over 50% of communication to customers be 1:1 messaging

Future Outlook

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Next Steps

Get the Alteryx and Tableau Marketing Analytics Starter Kit: www.alteryx.com/MktgKit