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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	
  
ICEW 2013  Amanda Cromhout - Big Data: the key to making customer-centric changes
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.
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.”	
  
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.	
  
Customer	
  Centricity	
  
The	
  ul?mate	
  prize	
  from	
  loyalty	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Iceberg	
  effect	
  
Proprietary and Confidential.
All rights reserved.
The	
  Iceberg	
  	
  
Effect	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
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.	
  
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.	
  
Iceberg	
  effect	
  
Proprietary and Confidential.
All rights reserved.
covert	
  
The	
  Iceberg	
  	
  
Effect	
  
overt	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
“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.	
  
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 %
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	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
“How	
  Target	
  Figured	
  Out	
  A	
  Teen	
  Girl	
  Was	
  
Pregnant	
  Before	
  Her	
  Father	
  Did’	
  
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	
  
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	
  
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	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Do	
  you	
  want	
  sales	
  data	
  
on	
  baby	
  carrots	
  or	
  
customer	
  data	
  on	
  who	
  
buys	
  baby	
  carrots?	
  
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	
  
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	
  
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	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Data	
   Insights	
  
Value	
  
Segmenta?on	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Global	
  Retail:	
  	
  20%	
  of	
  revenues	
  come	
  from	
  3%	
  of	
  customers	
  
	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Gaming:	
  	
  58%	
  of	
  revenues	
  come	
  from	
  4%	
  of	
  customers	
  
	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Love	
  your	
  most	
  
profitable	
  customers	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Inoculate	
  your	
  customers	
  
against	
  the	
  inevitable	
  
seduc?on	
  
of	
  a	
  compe?tor	
  
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”	
  	
  	
  
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	
  
	
  
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	
  	
  
	
  
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.	
  
Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
Source:	
  Social	
  Media	
  Consumer	
  Survey,	
  (January	
  2011)	
  supplied	
  by	
  Marke?ngProfs.com	
  
Taking	
  Customer	
  Experience	
  to	
  the	
  
next	
  level	
  
	
  
….using	
  customer	
  insights	
  
ICEW 2013  Amanda Cromhout - Big Data: the key to making customer-centric changes
“…	
  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	
  
“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	
  
39	
  Proprietary	
  and	
  Confiden?al.	
  	
  	
  
All	
  rights	
  reserved.	
  
What	
  differen?ates	
  gilt.com	
  	
  
from	
  the	
  rest	
  is	
  the	
  	
  
experience	
  
	
  
	
  
40	
  
“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	
  
How	
  GILT	
  uses	
  VoC	
  
	
  
…..everyday	
  
….in	
  everything	
  they	
  do	
  
42	
  
1.  Personaliza?on	
  
2.  Merchandising	
  
3.  Segmenta?on	
  
4.  Policies	
  
5.  Loyalty	
  
6.  Social	
  Engagement	
  
7.  Customer	
  Service	
  
8.  Launch	
  of	
  New	
  Businesses	
  
43	
  
Thank you
email amanda@truth.co.za
cell 082 797 7441
website www.truth.co.za
@tweetstruth
	
  
44	
  

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ICEW 2013 Amanda Cromhout - Big Data: the key to making customer-centric changes

  • 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  
  • 23. Proprietary  and  Confiden?al.       All  rights  reserved.  
  • 24. Proprietary  and  Confiden?al.       All  rights  reserved.  
  • 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.  
  • 27. Proprietary  and  Confiden?al.       All  rights  reserved.   Gaming:    58%  of  revenues  come  from  4%  of  customers    
  • 28. Proprietary  and  Confiden?al.       All  rights  reserved.   Love  your  most   profitable  customers  
  • 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  
  • 35. Taking  Customer  Experience  to  the   next  level     ….using  customer  insights  
  • 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  
  • 39. 39  Proprietary  and  Confiden?al.       All  rights  reserved.  
  • 40. What  differen?ates  gilt.com     from  the  rest  is  the     experience       40  
  • 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  
  • 44. Thank you email amanda@truth.co.za cell 082 797 7441 website www.truth.co.za @tweetstruth   44