Regardless of the type of organisation, you need to mine your data to provide a truly customer-centric offering. Your data should be at the heart of your product strategy. Amanda encourages organisations to explore under the tip of the iceberg, diving deep into the data you hold on them to maximise your sales and profits.
2. Interna'onal
Customer
Experience
World
12th
–
13th
March,
Maslow
Hotel
,
Sandton
Amanda
Cromhout
Proprietary
and
Confiden?al.
All
rights
reserved.
Big
Data:
The
key
to
making
customer-‐centric
changes
4. Lord
MacLaurin,
former
Tescos
chairman,
famously
told
Dunnhumby
“What
scares
me
about
this
is
that
you
know
more
about
my
customers
a6er
3
months
than
I
know
a6er
30
years!”
Proprietary and Confidential.
All rights reserved.
5. Proprietary
and
Confiden?al.
All
rights
reserved.
“This
isn’t
just
about
increasing
response
rates…its
about
rallying
the
en7re
organisa7on
to
be
customer
centric.”
6. Proprietary
and
Confiden?al.
All
rights
reserved.
“Leverage
data
to
grow
wallet
share
and
purchase
frequency,
shiJ
behaviour
to
higher-‐margin
products”
“Daily deals can create loyal
customers within the
correct framework of
rewards.”
“A great loyalty
strategy is also a
great company strategy.
A best-in-class loyalty
program requires deep
customer insights and
technology”
“Leveraging key data
insights strengthens multi-
dimensional customer
relationships”
Proprietary
and
Confiden?al.
All
rights
reserved.
7. Customer
Centricity
The
ul?mate
prize
from
loyalty
Proprietary
and
Confiden?al.
All
rights
reserved.
8. Iceberg
effect
Proprietary and Confidential.
All rights reserved.
The
Iceberg
Effect
Proprietary
and
Confiden?al.
All
rights
reserved.
9. Iceberg
effect
Loyalty
Programmes:
Pick
n
Pay
smart
shopper
BA
Execu?ve
Club
Edcon
Thank
U
Woolworths
W
Rewards
Proprietary and Confidential.
All rights reserved.
The
Iceberg
Effect
Proprietary
and
Confiden?al.
All
rights
reserved.
10. Iceberg
effect
Proprietary and Confidential.
All rights reserved.
Real
Customer
Value
&
Long
Term
Customer
Loyalty
The
Iceberg
Effect
Loyalty
Programmes:
Pick
n
Pay
smart
shopper
BA
Execu?ve
Club
Edcon
Thank
U
Woolworths
W
Rewards
Proprietary
and
Confiden?al.
All
rights
reserved.
11. Iceberg
effect
Proprietary and Confidential.
All rights reserved.
covert
The
Iceberg
Effect
overt
Proprietary
and
Confiden?al.
All
rights
reserved.
12. “Loyalty
programs
are
no
longer
solely
focused
on
points.
Loyalty
is
a
des7na7on
created
through
data-‐centric
marke7ng
communicaBons
that
lead
to
sustainable
and
measureable
change
in
customer
behaviour.”
Colloquy:
USA
Today
25
March
2011
Proprietary
and
Confiden?al.
All
rights
reserved.
13. Proprietary
and
Confiden?al.
All
rights
reserved.
Tradi?onal
Loyalty
Model
Loyalty
Programme
Customer
Loyalty
&
increased
sales
Reason
to
swipe
my
loyalty
card
more
Drives Incentivises
+ 4-6 %
14. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Customer
Loyalty
&
increased
sales
+ 6 %
Tradi?onal
CRM
Model
15. Proprietary
and
Confiden?al.
All
rights
reserved.
“How
Target
Figured
Out
A
Teen
Girl
Was
Pregnant
Before
Her
Father
Did’
16. Proprietary
and
Confiden?al.
All
rights
reserved.
Target’s
press
statement:
“Like
many
companies,
we
use
research
tools
that
help
us
understand
customer
shopping
trends
&
preferences
so
that
we
can
give
our
guests
offers
and
promo?ons
that
relevant
to
them…
Customers
are
always
welcome
to
opt
out
of
our
marke?ng
programmes”
Fox
News
Feb
24,
2012
17. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Product
Strategy
Pricing
Strategy
Distribu?on
Strategy
Customer
Loyalty
&
increased
sales
Customer
Service
Full
Customer
Strategy
Model
18. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Product
Strategy
Customer
Loyalty
&
increased
sales
Full
Customer
Strategy
Model
19. Proprietary
and
Confiden?al.
All
rights
reserved.
Do
you
want
sales
data
on
baby
carrots
or
customer
data
on
who
buys
baby
carrots?
20. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Pricing
Strategy
Customer
Loyalty
&
increased
sales
Full
Customer
Strategy
Model
21. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Distribu?on
Strategy
Customer
Loyalty
&
increased
sales
Full
Customer
Strategy
Model
22. Proprietary
and
Confiden?al.
All
rights
reserved.
Customer
Data
Customer
Insights
Beer
Direct
&
Loyalty
Marke?ng
Produces…. Drives…. Delivers….
Loyalty
Programme
Results in….
Customer
Loyalty
&
increased
sales
Customer
Service
Full
Customer
Strategy
Model
25. Data
Insights
Value
Segmenta?on
Proprietary
and
Confiden?al.
All
rights
reserved.
26. Proprietary
and
Confiden?al.
All
rights
reserved.
Global
Retail:
20%
of
revenues
come
from
3%
of
customers
Proprietary
and
Confiden?al.
All
rights
reserved.
29. Proprietary
and
Confiden?al.
All
rights
reserved.
Inoculate
your
customers
against
the
inevitable
seduc?on
of
a
compe?tor
30. Proprietary
and
Confiden?al.
All
rights
reserved.
Retail:
even
your
best
customers
are
s?ll
spending
at
least
30%
elsewhere
“We
saw
we
don’t
need
more
customers
–
we
need
the
customers
we
have
to
spend
more
Bme
with
us….therein
lies
the
whole
idea
of
loyalty”
31. No
of
Customers
YOY
change
%
of
customers
%
of
revenue
Average
Customer
Value
Average
No
of
trips
%
Cross
Shopping
AMBASSADORS
205K
6%
35%
$2,526
56
88%
FRIENDS
417k
15%
25%
$897
30
60%
SUPPORTERS
487k
21%
16%
$514
17
42%
POTENTIALS
319k
11%
8%
$362
9
26%
INDIFFERENT
410k
18%
5%
$159
4
8%
ONE-‐OFF
578k
24%
2%
$50
2
1%
CUSTOMER
VALUE
This
is
for
illustra?on
only
–
not
real
data
Indicates
where
to
allocate
your
marke?ng
budget
based
on
value
poten?al
to
the
business
Easiest
?pping
point
for
further
incremental
sales
Tradi'onal
Recency,
Frequency
&
Value
32. Ranking
Order
RFV
NPS
Segment
1
+
+
Advocates
2
-‐
+
Ambassadors
3
+
-‐
Func?onal
Repeaters
4
-‐
-‐
Detractors
Neutralise
nega?ve
Word
Of
Mouth
U?lise
posi?ve
word
of
mouth
through
social
media
strategy
Overlaying
Net
Promoter
Score
Enables
budget
alloca?on
based
on
both
Value
and
Affinity
33. People
who
engage
with
brands
via
social
media
demonstrate
a
deeper
emo?onal
commitment
to
those
brands,
and
they
spend
between
20%
and
40%
more
than
other
customers
on
the
products
and
services
offered
by
the
brands,
according
to
a
report
by
Bain
&
Company
Proprietary
and
Confiden?al.
All
rights
reserved.
34. Proprietary
and
Confiden?al.
All
rights
reserved.
Source:
Social
Media
Consumer
Survey,
(January
2011)
supplied
by
Marke?ngProfs.com
37. “…
by
using
Clubcard,
we
can
look
at
what
customers
buy
from
us,
what
things
they
like,
and
then
make
an
effort
to
target
adverts
that
are
more
relevant
to
them…..
it
means
we
can
know
our
customers
beer
than
anyone.”
Sco
Deutrom,
MD,
Clubcard
TV
38. “We’ll
use
Clubcard
data
to
tell
us
what
might
be
relevant
for
our
customers
and
therefore
help
us
deliver
a
more
personalised
service…beer
s?ll
we
can
target
adverts
based
on
what
customers
bought
yesterday,
we
can
show
that
we
are
listening
to
out
customers
in
‘real’
?me”
Sco
Deutrom,
MD,
Clubcard
TV
41. “Most
online
shopping
mirrors
brick
&
mortar
stores.
They
are
not
taking
advantage
of
what’s
uniquely
possible
online,
the
heightened
sense
of
entertainment
and
compeBBon.
A
big
part
of
the
Gilt
brand
promise
is
discovery:
You
come
every
day
&
it’s
new
every
day.”
41
42. How
GILT
uses
VoC
…..everyday
….in
everything
they
do
42
43. 1. Personaliza?on
2. Merchandising
3. Segmenta?on
4. Policies
5. Loyalty
6. Social
Engagement
7. Customer
Service
8. Launch
of
New
Businesses
43