Getting creative with data

My experienceAgencies• Ogilvy & Mather Direct• BMP• Aspen Direct• Craik Jones• HS&P

Clients• Land Rover• Honda• Saab• Peugeot• Diageo• Unilever• Sony• Virgin Trains• COI• Boots The Chemist• Silverlink Trains• The Australian Tourist

Commission• Save The Children

Data should be used creatively

What is data planning?

Using data in your business to drive your marketing and sales

Using data in your business to drive your marketing and sales

Once called database marketing or data driven marketing

Once called database marketing or data driven marketing

But now has to incorporate data from within the whole organisation and outside sourcesBut now has to incorporate data from within the whole organisation and outside sources

We should call it insight

InsightInsight ProductProduct

MediaMedia

MarketresearchMarket

research

Transactional data

Transactional data

Customer dataCustomer data

EconometricsEconometrics

Identify and target

segments

Identify and target

segments

DigitalDigital

Data planning

• Understanding– Analysis, segmentation, modelling,

quantitative research

• Communication– Audience identification, means of

engagement, messaging to drive response

• Evaluation– Sales, media, ROI– Results interpretation– Learning

A mixed up world

• Specific data planning disciplines• The newish world of digital• Rapidly developing consumer

technology platforms• The law• The combination of planning skills to

create true customer insight and understanding

Sometimes this needs more than just data planning

What is MPP?

• A team of independent marketing planners• Disciplines include:– Data– Digital– Brand

• Specific skills:– Research– Econometrics– Analysis and modelling– Mobile marketing– Media planning

Insight

Data

DigitalBrand

Informed decisions from independent thinking

Boots case study

Finding those with potential

Demystifying the model

So what is it all about

• Getting Boots to move to a more targeted approach to customer communications.

• What we set out to achieve.• Building the model and how it works.• Using the model in anger.• Results.

Boots problem

Under siege on many fronts

Lloyds & local chemists

Supermarkets

Department Stores

Dixons Marks & Spencer

To be focused and single minded

To define itself and master an area

Boots needed to stand for something again

New focused proposition for Boots

PERSONAL

Recognises Boots employees as a critical element delivering

this attention and service

Health and beauty sits equally comfortably

under this umbrella

Shopping at Boots is a more engaging

and intimate experience

Clarifies the benefit of visiting Boots over

supermarkets

Clarifies the benefit of visiting Boots over supermarkets

Where Advantage Card fits

19m Boots shoppers with no card

4.5m cardholders, never active

9.5m low & medium value, low

redeemers

1mhigh

10.5m active card holders

4.5m non activated card

holders

19m potential

card holders

15m card holders

• Information used on • Existing value to Boots

• Message• Universal, treat yourself

Previous approach

magazine

mini mag tactical

• Information not used on• Spend outside Boots• Propensity to change• 8 segments

• Treat yourself not applied in segmented manner

Cos IE

CBYF MBB

LC

HAT HC

What was working

Biggest Most generous Drives sales New holders Treats positioning ATV Frequency voucher Magazine Events Supplier funded DM Kiosks Redeemers Simplicity

Biggest Most generous Drives sales New holders Treats positioning ATV Frequency voucher Magazine Events Supplier funded DM Kiosks Redeemers Simplicity

What was working

gain

redeem

VIRTUOUSCIRCLE OF

SPEND

Areas to addressSales effectKiosksMature holdersHighest value ring-fencedMagazineFrequency

Sales effectKiosksMature holdersHighest value ring-fencedMagazineFrequency

Non redeemers30% not activeNon redeemers30% not active

Sales decline AppealSales decline Appeal

Generosity - 4 X moreTreats fit with brand visionGenerosity - 4 X moreTreats fit with brand vision

Getting started

What we set out to achieve

• Identify customer value and potential– To protect spend in Boots.– To steal share from competitors.

• Change their behaviour– Identify the key behaviour triggers that

influence spend.• Hard triggers - collect and redeem points, distance

from store and store type, make up of family etc.• Soft triggers - attitudes to health and fitness,

dieting etc.

• Use the wealth of data in Boots to support a range of business planning functions.

The vision

Score Ad Card customers and put into three groups for

communications

Protect & develop

Steal share

Suppressmanage

Cu

rre

nt

va

lue

by

ca

teg

ory

Propen

sity

to c

hange

Value to market by category

The vision

Based on 1,400 exit poll.Works at category level.

Need more detail to go down to concept level - TGI overlay

Attitudes: TGI- attitudes to health and fitness- attitudes to personal appearance/care- attitudes to environment- attitudes to shopping/brands- attitudes to eating

Taken from AdCard database down tocategory

Demographics: Database/External sourcesGeography

Boots shopping behaviour- what, when, value

The vision

Every customer is given a score

Value to Boots Value to market Propensity to change

Scores are calculated at concept group level

Maximum flexibility for targeting/offer to stimulate change at a micro level

Steal Protect

+ +

Profit by

product

The realityBuilding the model

How?

• The Boots Database contains over 14 million individuals, with details of every transaction for the last 2 years

• This amount of data cannot be modelled, analysed or even held easily anywhere

• In order to even start looking at overlaying a model a 5% sample had to be extracted and sent to a specialist analytical company

What?• A model was needed to identify who had the

potential to buy specific products.• Past transactional behaviour is by far the best

way to ascertain this• The analytics company took all data and

monitored trends on – purchasing patterns within concept groups– demographic profiles– number of purchases– average time between repeat purchases– average spend– etc

The Result - A Summary

• Two models were produced • This is based on likelihood to buy plus

potential to spend• Used together they ensure best

response/sales rates • This means increase in sales for Boots• Plus they ensure the best ROI is

generated for the supplier

Affinity ModelPrimary TertiarySecondary

Hot Prospects

CoolestProspects

Warm Prospects

Primary Primary AffinityAffinity

n Customers who have directly bought the promoted product in the past Customers who have directly bought the promoted product in the past 12 months, ranked by frequency and total spend12 months, ranked by frequency and total spend

n Customers who have NOT bought promoted product but have bought Customers who have NOT bought promoted product but have bought associated products in the past 12 monthsassociated products in the past 12 months

SecondarySecondaryAffinityAffinity

n Customers who have a similar profile to the peer group of the productCustomers who have a similar profile to the peer group of the product

TertiaryTertiaryAffinityAffinity

AgeAge

GenderGender

SegmentSegment

LookalikesLookalikes

e.g 25-40e.g 25-40

e.g femalee.g female

e.g Cosmopolitane.g Cosmopolitan

MosaicMosaic e.g stylish singlese.g stylish singles

Share of Wallet Model

Previous spend =£9.60 Previous spend =£9.60 (High Water Mark) (High Water Mark)

Current Spend Current Spend = £4.80= £4.80

Customer XCustomer X

SOWSOW= 50%= 50%

Little previous spend, soLittle previous spend, soPeer Group Average = £4.60Peer Group Average = £4.60

Current Spend Current Spend = £1.60= £1.60

Customer YCustomer Y

SOWSOW= 33%= 33%

--

--

2 example customers SOW for Dove Shampoo2 example customers SOW for Dove Shampoo

The Model used in Value Mailings

• Offers are tailored to the individual based on their past transactions

• Each person gets a score for every offer available, with the top 8 products defined as their most suitable being selected

• This allows communications to be centred around ‘offers we know you like and some you want to try’

Finding offers

• 20 million coupons were required for first mailing

• Plus additional funding (to top up Boots budgets)

• Targeted both Boots Category teams and Suppliers

• Then cajoled, persuaded and bullied• The result - we generated 56 different

offers for the first Value mailing

The Process of Value Mailings Step 1

• All Offers, approx 60+ per value mailing are matched to the entire Boots Database

• The prime target audience is then identified, ie those who have the highest affinity to the offers available

The Process of Value Mailings Step 2

• The selected universe is then given a score for every offer available, based on the likelihood of them purchasing

• This produces millions of stats, which then need to be optimized and ranked

• To produce the top 8 offers for EVERY PERSON

The Personalisation of Value Mailings

• The essence of Value is that each person gets offers applicable to them

• To coincide with this, the rest of the mailing was personalised to produce a mailing tailored to each individual

• The personalised information includes:– Number of points available– Number of redeemed points in the last 12

months– Favourite store to shop in– Total Value of coupons– Total points available on promotion– Redemption ideas based on number of points