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It’s digital, but is it personal?
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dunnhumby’s context
24 years
28 countries
1,000s of clients
400,000,000 customers
All media channels
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Customer = CMO
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Earn It
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Three Prizes
1.Current sales
2.Potential sales
3.Advocacy
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Household Response Rates
20.0%
22.7% 22.7%21.5%
27.2%28.7%
33.3%35.7%
42.1%
49.0%
64.2%63.1%62.7%
59.6%58.4%
55.6%56.2%
52.6%52.6%49.5%
49.2%
18.4%17.0%16.0%15.0%
16.0%18.0%
0501 0502 0503 0504 0601 0602 0603 0604 0701 0702 0703 0704 0801 0802 0803 0804 0901 0902 0903 0904 1001 1002 1003 1004 1101 1102 1103*
Relevance wins
Campaign events
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Source: The Times 19 Jan 05
Or …
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Digital Danger
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“Last year, the nation's top 100 retailers by e-commerce
revenue sent recipients an average of 177 emails
apiece, up 87% from 2007.”
Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
[and up 24% vs. last year]
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“More than 500 emails apiece”
Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
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Deleted, Detested, Delisted
© dunnhumbyUSA 2013 | confidentialSource: WSJ / Harte Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”
Customer Reaction to Retailers’ Emails
National average1st half 2007
1st half 2011
% Chg.
Email open rate 19.0% 12.5% -34%
Click through rate 3.9% 2.8% -28%
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49% of unsubscribers from permission emails: Content was repetitive or boring over time1
22% of US Internet users stopped buying from a company:
too many or irrelevant emails2
1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions
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It doesn’t have to be that way
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If your digital marketing is relevant, more contact can improve perceptions
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Unaware, Unconcerned,
Unable
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What are “they” doing wrong,
and why?
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Big data
Small thinking
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Wrong data and insights
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Personalization ≠ Algorithms
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Inputs, not outcomes
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Wrong Rewards
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Exactly right for each shopper all
the time
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1. Culture: Shoppers’ lifetime value
2. Shopper first – not brand, not store
3. Leverage shopping, media, context insights
4. Content that delights and excites
5. Media that reaches and engages
6. Measure incremental sales and advocacy
Here’s what we’ve learned about making digital personal
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Making digital personal
1.Brand CRM program
2.Display advertising
3.Advocacy and user content
4.Integrated loyalty approach
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Brand CRM programs: From good to great
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Lagging approaches to targeting, activation, and
evaluation
Leading approaches to targeting, activation, and
evaluation
• Demographics and claimed behavior
• Purchase behavior, plus additional contextual data
• Responsiveness to standard offers
• Responsiveness to all media stimuli and personalized offers
• Redemption behavior • Sales uplift
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A better approach yields better results: Multi-brand CPG CRM multi-cell test
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Lagging approach Leading approach
+8% sales uplift vs. control
+112% sales uplift vs. control
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We know display advertising can
build sales
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On line advertising is more consistent in driving off line sales than TV
TV (IRI)
Internet(comScore)
36% 80%
% of campaigns with a statistically significant off-line sales lift
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On-line display advertising: Purchase-based targeting makes it more effective
● Yogurt brand– Campaign results including all targets +1.9% uplift
– Only purchase-based targets (38% of original) +5.0% uplift
– Improvement from better targeting +163%
● Toothpaste brand– Campaign results including all targets +2.4% uplift
– Only purchase-based targets (47% of original) +5.3% uplift
– Improvement from better targeting +123%
● Soft Drink brand– Campaign results including all targets +8.8% uplift
– Only purchase-based targets (47% of original) +11.3% uplift
– Improvement from better targeting +28%
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Next generation advocacy
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The new Word of Mouth approach links shopping insights to targeting, evaluation
Case Study: Supporting a new product launch
Targeted BzzAgents • Based on categories, brands, and products of interest
Strong Agent engagement
• Based on relevance of the sampled product
High volume reach • Reached over 1,000,000 people, at 228 network contacts per Agent
Measurable sales impact
• 18% increase in dollar sales vs. control• $14:1 sales-to-cost ratio
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Targeted Word of Mouth also delivers new learning and user generated content
Unilever Insights from Shopper Marketing
Lowered soup salt content Changed deodorant fragrance
Changed language from “baking bags” to “cooking bags”
Pulse Dashboard • Social media monitoring technology • Integrates social and purchase data
Tracks activation • Samples to BzzAgents; Agent and network reactions
Content rich • Unrestricted access to tweets, posts, photos, reviews, and recommendations shared by agents
Benefits • Learn how consumers actually use your products• Verbatims for use in future marketing• Learn what they like / don’t
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Integrated loyalty approach
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Insight: Even Raley’s best customers spend only ~60% of their eligible dollar at Raley’s
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What we earn now from our
existing customers
Spend with competitors for
items we sell
+ =
Our customers’ total grocery spend
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●Launched Something Extra, Fall ‘12
– A personalized Rewards voucher every 3 months that can be redeemed in store
– Personalized Offers based on purchase behavior
– Earn Extra Points every time they shop
– Inspired Ideas and Extra Surprises
Raley’s knew that a loyalty approach, not just a loyalty program, was required
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Combines loyalty and advocacy to deliver on the promise of ‘Something Extra’
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Increase LOYALTY of Raley’s Best Customers
Cultivate ADVOCACY for Raley’s and their CPG partners, both online and offline
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February email
Distribution and Participation Metrics
Participation rates for monthly Best Customer Communications are around 50%
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Something Extras Try-it combines shopper data with WoM to drive sales, engagement
Increase LOYALTY of Raley’s Best Customers
Cultivate ADVOCACY for Raley’s and CPG partners, both online
and offline
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A primarily digital experience allows content to be easily shared, online and offline
4040
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Try-it Screenshot – ‘My Score’ Page
The platform is built to weed out people who just want free stuff
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A modest number of advocates amplifies the message, engaging a large community
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Screenshot from the Try-it ‘Pulse’ Measurement Portal
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1. Culture: Shoppers’ lifetime value
2. Shopper first – not brand, not store
3. Leverage shopping, media, context insights
4. Content that delights and excites
5. Media that reaches and engages
6. Measure incremental sales and advocacy
Making Digital Personal