David Buckingham
President, Aimia ISS US Region
EMPOWERING THE
CUSTOMER-CENTRIC JOURNEY
WITH MULTIPLE DATA
STREAMS
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
AGENDA
2
• Aimia
• TACT
• “Big Data” FRIEND or FOE?
• Smart Data: Good Idea/Bad Idea
• The Future
• Summary & Questions
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
YOUR KEY TAKEAWAYS…..
3
• 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!
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
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
SwitwerlandSWITZERLAND
4
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
AIMIA’S CLIENTS ARE LEADERS AROUND THE WORLD
Platform People Process
5
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
AIMIA MAKES BUSINESS PERSONAL & IMPACTFUL
6
AIMIA MAKES BUSINESS PERSONAL & IMPACTFUL
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
AIMIA’S PROVEN TRACK RECORD - OVER 250 MILLION HOUSEHOLDS & OVER 250 CPG VENDORS WORLDWIDE
7
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
8
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
9
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
“Google policy is to get right up to the
creepy line but not cross it.”
Eric Schmidt Google Executive Chairman
THE CREEPY LINE
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
AIMIA TACT DATA VALUES
TRANSPARENCY ADDED VALUE
CONTROL TRUST
CUSTOMERS
11
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
12
INTELLIGENT DATA
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
14
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
15
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
ANALYTIC APPROACH & DATA INPUTS
• 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
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
BRITISH GAS MODELLING HAS DRIVEN A TAILORED CUSTOMER CONTACT STRATEGY
16
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
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
BUSINESS ISSUE
• Engage with customers more effectively and completely across all
moments of truth including in-store/at shelf
OUTCOME
ANALYTIC APPROACH & DATA INPUTS
• 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
17
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
• 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
18
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
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
A WORD ABOUT THE FUTURE……
19
More data = More
relevancy
Mobile “the remote
control of life”
Embrace social
media
One to one
advertising
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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”
20
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
Fat 8.9g Salt 0.8g Sugar 18.3g
Fat 1.4g Salt 0.3g Sugar 2.6g
Fat 4.4g Salt 0.5g Sugar 2.8g
Fat 12.7g Salt 0.7g Sugar 0.3g
Fat 7.2g Salt 0.8g Sugar 0.6g
22
For more results click here
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
23
Proprietary & Confidential. © 2014 Aimia. All Rights Reserved.
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
24
THANK YOU