A Luckie presentation

August 10, 2011

Big data is a big deal

CONFIDENTIAL - PROPERTY OF LUCKIE & COMPANY. © 2011 LUCKIE & COMPANY. Reproduction, distribution, presentation, display, license, and derivative works by written permission only from Luckie & Company.

Great storytelling begins with the data

By gaining a deep and thorough understanding of your company’s relationships with its customers, we develop insights that will change how you manage customer engagement, sales and retention.

We develop strategies using your data that enable measurable marketing ROI by deploying macro campaigns and micro initiatives based on multivariate Business Intelligence. Our methodology is:• Identify the strategic objectives of an organization balanced against marketing

opportunity• Integrate all data sources to determine how technology-driven marketing can

motivate consumers to specific transactional behaviors• Differentiate consumers in various segments, groups or other subsets to

maximize relevance while maintaining the highest return on marketing investment (ROMI)

• Execute customized, individually relevant multi-channel marketing programs• Measure the results against key performance indicators and rapidly react This approach allows for constant improvement of multiple initiatives while focusing on current consumers, acquiring prospects, and ensuring effective channel use to drive marketing optimization.

Data defines and prioritizes the consumer spectrum

1 to ManyMass: TV, Print, Display

Shop at Stein Mart

1 to FewNiche: SEO/SEM, Print, Email, SM

Women’s, Men, Housewares

1 to 1Loyalty Club:

Private Sale, New Brands, BOGO

AWARENESS

New Member

Elite

New Loyalist

Departmentalist Holiday

Shopper

Tenured

Good Customer

Register to win <Register for newsletter <

Register for coupons < Customer transaction<

Moving from Awareness to Behavior

BEHAVIOR

Data defines value potential across three or more dimensions

Value potential drives the strategy, targeting, creative, execution, and optimization

Banners

Mobile Banners Intelligent POPMobile Opt-In

Facebook

Facebook App Facebook AdsiPad/iPhone App iPad Ads

Twitter

Location Based Marketing

Paid / Organic Search

Digital Video

Blogger Outreach/PR

Couponing based on Check-in

Community

Print Out-of-Home (OOH) Video eMail

:30 :15Direct Public Relations

Radio

Customer Service

SweepstakesSponsorships

Great strategy drives the right stories to the right audiences at the right times and in the right places

WOMEvent

Website Mobile Site

Foursquare

Flickr

LinkedIn

Tumblr

And that drives customers to action

Customer Velocity

0

10

20

30

40

50

60

70

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12

Purchase (#)

Days

bet

wee

n Vi

sits

Our current and former clients all agree

Lets take a closer look

Customer Segmentation Example

behavioral segments

Defines value to the brand

• Based transactional (behavioral) metrics– Sales (monetary)– Coupons– Engagement (digital)– Visits (frequency & recency)– Loyalty

• Marketing impact– Investment– Cadence– Lifetime value management

leveraging the y-axis

13

Tim

e 1

Inte

rcep

t

Tim

e X

Accelerating

Accelerating

Accelerating Projected

DeceleratingDecelerating

Decelerating Projected

Investment Investment

Accelerating Accelerating Projected DeceleratingDecelerating Projected Investment

Customer Velocity

Investment

Segment % Base % Sales Annual

Revenue Spend /

Vis i t Vis i ts Stores Dept

% Red Line

% Hol iday

Best Customer 20% 55% $ 500.00 $ 50.00 10.0 2.5 12.0 18% 25%

Core Customer 25% 15% $ 300.00 $ 40.00 7.5 2.0 5.0 16% 25%

Category Shopper

5% 2% $ 70.00 $ 35.00 2.0 1.2 1.4 7% 20%

Outfitter 8% 10% $ 300.00 $ 175.00 1.7 1.2 6.9 12% 14%

Hol iday Shopper 10% 4% $ 110.00 $ 55.00 2.0 1.0 2.8 5% 100%

Occas ional is t 20% 6% $ 60.00 $ 40.00 1.5 1.0 2.2 5% 0%

Red Line Shopper

12% 8% $ 90.00 $ 30.00 3.0 1.2 4.5 62% 22%

Example | Behavioral Segment

Attitudinal profiles

• Defines the ‘who’ (targets)– Based on demographic, psychographic

and motivational datasets• Marketing impact

– Creative presentation– Media targets

Planet PÜRists

• Primarily well to do singles, young couples

• Messaging and creative– Natural, organic,

artsy– Environmental,

cause-oriented

• Imagery – Earthy tones– Clean, balanced

Planet PÜRists

Planet PÜRists Index Grand TotalDemographic Snapshot

Percent Asian 8.4% 161 5.2%Percent Black 8.1% 104 7.8%Percent White 76.0% 95 79.7%Percent Hispanic 11.3% 109 10.3%

Financial SnapshotPer Capita Income $38,714 120 $32,210Median Household Income $65,055 107 $60,731Average Household Income $85,137 106 $80,046Average Household Value $195,475 95 $204,807Socioeconomic Average 75 118 64

Household SnapshotAverage Household Size 2.3 91 2.5Median Age of Household 37.6 98 38.4Percentage Married 52% 89 58%Percent Household 14 - 24 13% 92 14%

7%

Pct of Sales

10%

Pct of Customers

High internet activity Responds to text coupons Uses mobile email Does not read the paper Very active in social media Index high to use internet for

job search, dating and banking

Index high for Spanish radio

Planet PÜRists

Attitudinal Segment

media strategy | Mobile, AL

Attitudinal Segment

media strategy | Jacksonville, FL

creative effect

Attitudinal Segment

Response Rates Fashion Piece Moderate Piece Value Piece

Fashion Customer +11%

Moderate Customer +8%

Value Customer +16%

Response Rates Fashion Piece Moderate Piece Value Piece

Fashion Customer +11% -83% -73%

Moderate Customer -15% +8% -5%

Value Customer -44% -45% +16%

Individual Attributes

• Defines individual demand drivers– Product or brands– Preferred channel(s)– Preferred stores

• Marketing impact– Messaging– Offers– Communication

frequency

Individual Attributes

0 5 10 15 20 25 30 35 40 45 500.0

0.2

0.4

0.6

0.8

1.0

Survival & Revenue v. TenureEntire Base

Proportion of Total Revenue Probability of Survival

Tenure (Months)

Prob

abili

ty/P

ropo

rtion

Individual Attributes

0 5 10 15 20 25 30 35 40 45 500.0

0.2

0.4

0.6

0.8

1.0

Survival & Revenue v. TenureOrders > 1

Probability of Survival Proportion of Total Revenue

Tenure (Months)

Prob

abili

ty /

Pro

porti

on

Individual Attributes• leveraging the z-axis

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

$-

$100

$200

$300

$400

$187

$276

$330

$385

$155

$214

$254

$291

Test Control

Sp

en

d p

er

Cu

sto

mer

Implementation of a longitudinal multi-touch contact strategy drives not only tactic ROI, but also significant impact on annual spend vs. control and increases LTV

360° view

360° view

Need updating with all logos

What story can we tell with your data?

Thank you

Luckie & Co.

John Heenan, CMO600 Luckie DriveBirmingham, AL 35223

P 205.879.2121F 205.877.9855

www.luckie.com

CONFIDENTIAL - PROPERTY OF LUCKIE & COMPANY. © 2011 LUCKIE & COMPANY. Reproduction, distribution, presentation, display, license, and derivative works by written permission only from Luckie & Company.