It's Digital, but is it Personal?

It’s digital, but
is it personal?

© dunnhumbyUSA 2013 | confidential

dunnhumby’s context

 24 years
 28 countries
 1,000s of clients
 400,000,000 customers
 All media channels

Customer = CMO


Earn It


Three Prizes
1.Current sales
2.Potential sales
3.Advocacy

Relevance wins
Household Response Rates 62.7%
64.2%
63.1%
59.6%
56.2% 58.4%
55.6%
52.6%
49.5% 52.6%
49.2% 49.0%

42.1%

35.7%
33.3%

28.7%
27.2%

22.7% 22.7%
18.0% 16.0% 21.5%
18.4% 20.0%
16.0% 17.0%
15.0%

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*
Campaign events

Or …

Source: The Times 19 Jan 05

Digital Danger


“Last year, the nation's top
100 retailers by e-commerce
revenue sent recipients an
average of 177 emails
apiece, up 87% from 2007.”

[and up 24% vs. last year]

Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”

“More than 500
emails apiece”

Source: WSJ / Responsys Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”

Deleted, Detested,
Delisted


Customer Reaction to Retailers’
Emails
1st half 1st half %
National average
2007 2011 Chg.
Email open rate 19.0% 12.5% -34%
Click through rate 3.9% 2.8% -28%

Source: WSJ / Harte Hanks Inc., WSJ March 12, 2012; “Stores Smarten Up Amid Spam Flood”

49% of unsubscribers from
permission emails: Content was
repetitive or boring over time 1

22% of US Internet users
stopped buying from a company:
too many or irrelevant emails 2

1 - ExactTarget "The Social Break-Up" 2 - CMO Council / InfoPrint Solutions

14

It doesn’t have to be that way


15

If your digital marketing is relevant, more
contact can improve perceptions


Unaware,
Unconcerned,
Unable


What are “they”
doing wrong,
and why?


Big data
Small thinking


Wrong data
and insights


Personalization
≠ Algorithms


Inputs, not
outcomes


Wrong Rewards


Exactly right for
each shopper all
the time


Here’s what we’ve learned about making
digital personal

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
1.Brand CRM program
2.Display advertising
3.Advocacy and user content
4.Integrated loyalty approach


26

Brand CRM programs: From good to great

Lagging approaches to Leading approaches to
targeting, activation, and targeting, activation, and
evaluation evaluation
• Demographics and • Purchase behavior, plus
claimed behavior additional contextual data

• Responsiveness to • Responsiveness to all
standard offers media stimuli and
personalized offers

• Redemption behavior • Sales uplift


27

A better approach yields better results:
Multi-brand CPG CRM multi-cell test

Lagging approach Leading approach

+8% sales uplift +112% sales uplift
vs. control vs. control


We know display
advertising can
build sales


On line advertising is more consistent in
driving off line sales than TV
% of campaigns with a statistically
significant off-line sales lift

TV Internet
(IRI) (comScore)

36% 80%


30

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

● Soft Drink brand


Next generation
advocacy


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 • Based on relevance of the sampled product
engagement

High volume reach • Reached over 1,000,000 people, at 228 network
contacts per Agent

Measurable sales • 18% increase in dollar sales vs. control
impact • $14:1 sales-to-cost ratio


Targeted Word of Mouth also delivers new
learning and user generated content
Unilever Insights from Shopper Marketing
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

Lowered soup salt content Changed deodorant fragrance

Changed language from “baking bags” to “cooking bags”


Integrated loyalty
approach


35

Insight: Even Raley’s best customers spend
only ~60% of their eligible dollar at Raley’s

+ =

What we earn Spend with Our customers’
now from our competitors for total grocery spend
existing items we sell
customers


Raley’s knew that a loyalty approach, not
just a loyalty program, was required

● 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


37

Combines loyalty and advocacy to deliver
on the promise of ‘Something Extra’

Increase LOYALTY of
Raley’s Best
Customers

Cultivate ADVOCACY
for Raley’s and their
CPG partners, both
online and offline


38

Participation rates for monthly Best Customer
Communications are around 50%
Distribution and Participation Metrics

February
email


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


40
40

A primarily digital experience allows
content to be easily shared, online and
offline


41

The platform is built to weed out people
who just want free stuff
Try-it Screenshot – ‘My Score’ Page


42

A modest number of advocates amplifies
the message, engaging a large community
Screenshot from the Try-it ‘Pulse’ Measurement Portal


Making Digital Personal

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


Thank you
matt.nitzberg@us.dunnhumby.com
513-632-1032


It's Digital, but is it Personal?

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