dunnhumby & BzzAgent presentation at the 2012 ARF Audience Measurement 7.0 Conference

2. From Customer
Loyalty to Social
Advocacy
Photo Photo
*1-pt black border *1-pt black border
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Malcolm Faulds Matthew Keylock
SVP Marketing SVP, New Business
BzzAgent, a dunnhumby company Development & Partnerships
dunnhumbyUSA

3. Joint Research Initiative
Analysis on the
SHOPPER
intersection of social
ADVOCACY
and shopper behaviors LOYALTY
to improve advocacy
SOCIAL

4. Joint Research Initiative
 Advocacy matters
 Target advocates through shopper and social behavioral data
 Grows loyal customers and a substantial sales lift
 Greater impact than targeting with demographic or social
influence targeting alone

5. Background
Marketers Collect Rich Data on Customer Behaviors
 Extensive data is collected on all
purchase activities
 Enables customized
communications and more
relevant offers
 Must know how to use data to
improve performance

6. Problem
Customer Insights are Underused in Social Media
 For many marketers, online customers are anonymous
 Loyal customers aren’t prioritized
 Organic social media activity isn’t connected to in-store purchases
 Social marketing isn’t typically evaluated by sales impact

7. Problem
“Likes” are Not a Business Success Metric
 Facebook “Likes” and engagement
are not financial metrics
 Marketers need to focus on
advocacy
 Target by combining
– Demographics
– Social influence
– Purchase behavior

8. Opportunity
Advocacy is Important in Marketing
 More trust recommendations and Advocates visit more, buy more items,
and spend more overall
online reviews than editorial coverage
and brand messages (Nielsen)
 Leading retailer estimates advocacy is
a $5.3 Billion opportunity
 Advocates are:
– self-directed consumers
– have large social circles
– influence purchases of many others
Index to All Customers for
National Retail Chain

9. Method
Define Your Best Customers Correctly
 Most companies do it wrong
Incorrect Correct
 Emphasizing profitability is a
Customer Shopping frequency
narrow-minded view profitability
Spending per year
 Get this right. Use the wrong
lens and you won’t be able to Buying across
leverage this insight categories

10. Method
Identify Your Best Customers in Social Media
 Loyalty card data from
national retailers with
SHOPPER
BEHAVIORS
advocate community BUYING SHOPPER
PATTERNS CLUSTERS IDEAL BRAND
ADVOCATES
DEMOGRAPHICS/
PSYCHOGRAPHICS SOCIAL
BEHAVIORS
AGE
HOBBIES
GENDER
LOCATION

11. Analysis
Prior Brand Behavior Drives Increased Advocacy
Level of Advocacy Activities
Consumers with
Advocate Behavior Index
heavy/medium
advocacy activity
Indexed to the
overall buyer profile
Types of Shoppers

12. Analysis
Best Targeted Advocates Make More Repeat
Purchases Repeat Purchases by Targeting Segment
 Purchase behavior groups
make twice as many post
campaign repeat sales as
demographic targeted groups

13. Conclusion
Strong Sales Lift at the Market Level
 Measured sales lift across the Average Campaign
geographic market averaged 8%
Sales Lift
 Determined by 2-cell Match
Market Tests conducted by
dunnhumby 8%

14. Conclusion
Sales Sustain Months Later
10%
 6 months after the campaign, 50% of the
sales lift sustained (avg lift 4%) 8%
 People kept buying after push from
Sales List
6% 50% of Lift
company ends - unlike any other media Maintained
4%
 Social got them in the door, and they
stuck with the brand 2%
0%
Campaign 6 Mos Later

15. Summary
Power of the Informed Introduction
 A group of the right people can drive a sustained lift in sales
A few customers
identified by their Test Market Control Market
purchase data can
influence an entire 8% Sales Lift
market 4% After 6 Mos.

16. Summary
3 Key Drivers of Higher ROI in Advocacy Marketing
1. Target participants based on Purchase
behavioral data Behavior
2. Products with higher baseline
sales
3. Products with higher product Higher
Baseline
Priced
price points Product
Sales

17. What’s Next
 Expand dataset and establish category benchmarks
 Correlate additional shopper attributes with advocacy
 Study integration with in-store promotions and other media
 Understand broader influence of social on shopper behaviors

18. Thank You
 Please leave your card for more information on this study
 Feel free to contact us with any additional questions
Malcolm Faulds Matthew Keylock
mfaulds@bzzagent.com matthew.keylock@us.dunnhumby.com
@mfaulds @mattkeylock