data & marketing analytics theatre: putting customers at the heart of your analytics strategy

Sponsored by: Organised by:

Putting Customers at the Heart of Your Analytics Strategy

Rusty Warner - Alterian (now SDL)

SDL Proprietary and Confidential

Rusty WarnerVice President, Product Marketing

February 28, 2012

SDL Proprietary and Confidential

Agenda Where Is Marketing Headed? How Do We Get There? Who Is Doing it Right? What if You Get it Wrong? How Do You Measure Success?

Where Is Marketing Headed?

Today’s customers are…• Inundated with information• Actively engaged in multiple channels• More informed and less brand-loyal• Able to choose from the entire world

Successful marketers must…• Understand customers with analytics• Orchestrate cross-channel communications• Engage customers with relevant offers• Treat customers as unique individuals

Successful marketers must become Customer Engagement Managers

Customer Relationship ManagementEngagement

Marketing

How Do We Get There?

• What We All Want To Do:– Derive Maximum Value from Customer Engagement

– Deliver High-Velocity Campaigns using Data Driven Insight

– Make Marketing Resources More Productive and Effective

– Increase Response Rates and Drive Revenue Objectives

• How Do We Do It?– Build an Enterprise View of Customer Information

• Merge Deep History with Current Behaviour• Single, Consistent View versus Single Database

– Utilise Customer Intelligence Analytics• Data Exploration for Personalisation• Predictive Modelling for Scoring and Propensity

– Leverage Best Practices and Apply Governance

– Synchronise Efforts with Business Operations

Who Is Doing It Right?

• Organisations who...– Value Engagement versus Processes or Management

– Understand the Relationship between On-Line and Off-Line

– Treat Customers Consistently across Channels

– Measure the Business Impact of Marketing Activities

• Best Practices

Britannia: Customer Retention and Development

Objectives “Put the Customer First” Execute based on Customer Insight Manage Increasing Channel Complexity Achieve Significant ROI Improvements

Results Reduced Direct Marketing Costs by 30% Doubled Annual Number of Successful

Cross-Sell Customers Increased Average Product Holdings per

Customer by 15% 9

Britannia: Customer Retention and Development

“Both marketing productivity and efficiency have increased. We look forward to creating further innovative customer insight programmes… and continuing tomaximise ROI.” - Head of Customer Knowledge & Planning10

Eurostar: Customer Profiles and Preferences

Results Consolidated Database with Customer

Information from Multiple Countries Open-Rates Increased by 100% Click-Through’s Increased by 50% Average Revenue Increased by 400%

Objectives Eliminate Disparate Data Silos

Increase Customer Intelligence Improve Relationship-Building Support Operational Execution

Eurostar: Customer Profiles and Preferences

“With the implementation of the database, Eurostar have been able to create targeted communications based on traveller behaviour and profiles. The results have been far beyond expectations.” - Customer Database Manager12

Cisco: One-to-One Relationships

Results Consolidated Database

40M+ Customer Contacts 100M+ D&B Companies

Deep History for Up-Sell and Cross-Sell Predictive Modelling for Propensity and Value13

Objectives Sell to Companies BUT Market to Individuals Identify the Right Contacts for Campaigns Develop a Single Global View for Local Use Re-Activate Dormant Contacts

Cisco: One-to-One Relationships

“Tremendous potential for gaining new insights has been unleashed…Today we can perform analysis tasks around 30 times quicker than before.”

- Global Database Marketing Manager 14

Best Western: Email and Web Integration

Objectives Improve Customer Engagement for Loyalty Program Increase Relevancy of Newsletters and Campaigns Treat Individuals as Unique Users for Email & Web Deliver Dynamic Content based on Customer Behaviour

Results Greatly Enhanced the Standard Tiered

Approach for Customer Loyalty 40% Increase in Click-Through Rates 540% Rise in Loyalty Point Redemption 30% Overall Return on Investment15

Best Western: Email and Web Integration

“We can build quick, flexible campaigns, all with 1000s of content variants. As the tools integrate seamlessly, we also save time as we don’t have to move data manually between the database and email tool anymore.”

- Digital Product Consultant16

Objectives – Starbucks Analyze Purchase Decisions Understand Consumer Behavior Determine Impact of Bottled Drinks Enhance Customer Experience via Collaboration

Objectives – Mountain Dew Support Launch of New Voltage Flavor Increase Awareness and Drive Trials Convince Web Influencers to Advertize Reduce Research & Analysis Efforts

(from 100 hours over 2 weeks to 15 hours)

PepsiCo: Social Media Integration

“The solution gave us the flexibility to find the type of granular insights which help underpin our services, in a fraction of the time it wouldnormally take.”

- CEO, Global Agency Partner18

What Happens If You Get It Wrong?

Examples from Personal Experiences…

(Names Hidden to Protect the Guilty!!!)

1.When You Can’t See the Forest for the Trees– Marketing Not Aligned with Customer Demands

– Processes & Metrics Matter More than Customers

2.When You Rob Peter to Pay Paul– Marketing Not Aligned across Business Units

– Customers Defect while You Figure Out Who They Are

3.When You’re Your Own Worst Enemy– Marketing Not Aligned with Operations

– Customers Engaged, but You Can’t Service their Needs

How Do You Measure Success?

• Define Agreed, Quantifiable Metrics– Reduction in Spend per Channel

– Campaign Uplift for Open, Click-Through, etc.

– Revenue Results Directly Impacted

• Apply Business Performance Benchmarks– Business Problem Solved

– New Business Opportunity Realised

– Tangible Advantage over Competitors

• Don’t Forget Internal Goals and Objectives– Users Satisfied and Asking for Additional Functionality

– Project Delivered on Time and on Budget

– Created an Agent of Change within the Organisation

Be Disruptive!

rwarner@sdl.comrusty.warner@alterian.com

Twitter: @RustyWarnerLinkedIn: Rusty Warner

images and logos are the property of their respective owners.

This presentation and its content are SDL confidential unless otherwise specified, and may not be copied, used or

distributed except as authorised by SDL.

New Paradigms in Digital Insight - How leading brands are gathering insights in an increasingly

connected and informed world

Rachel Adams - Toluna Simon Shaw - Brass

Data is king: Maximising the value locked up in your data

Henry Smith - Emailvision

Powering Smarter Marketing

Data is King

February 2012

www.emailvision.co.uk

Henry SmithPre Sales Director, Strategic Global Accounts

A new King?

Content is King – Bill Gates 01/03/1996

Our mission

www.emailvision.com

Emailvision powers smart

email, mobile and social campaigns

that deliver results

Custom Applications

Customer Intelligenc

ileSocial

Integration

Custom Apps

Global Provider, Local Support

Offices:ArgentinaAustriaBelgiumBrazilCanadaChinaFranceGermanyHong KongIsraelItalyJapanMexicoNetherlandsPortugalScandinaviaSpainSwitzerlandUnited KingdomUSA

….Our Culture

Why Data is King

The Power of Knowing

Relationship

Mutual Benefit

Personal Knowledge

What do we Know?

● Data

● Customers

● Campaigns and communications

● Products and Transactions

● Media and Content Interactions

Customer Intelligence from Data

“Customer intelligence (CI) is the process of gathering and analysing information

regarding customers; their details and their activities, in order to build deeper and more

effective customer relationships and improve strategic decision making.”

‒ Wikipedia

Turning Data into Actionable Insight

I must buy some new lip-gloss

I must buy new high end Nike’s

Data Analysis Customer Insight and differentiation

Consumers are struggling with Inbox overload

● 49% of consumers have unsubscribed from email lists that they had originally opted in to because they found the emails to be irrelevant

‒ Source: Relevancy Group "Realizing the Value of Email Marketing" (2010)

Modern ISP’s - Only the Relevant Survive

Yahoo blocks over 120 billion spam messages every month

Gmail Priority Inbox automatically identifies ‘important emails’ and separates them from everything else

Hotmail Sweep allows users to select one email to automatically move or delete similar ones. Grey mail feature trashes emails depending on interaction

Don’t you know who I am?!

● Two-thirds of respondents who receive email from consumer packaged goods companies want to receive personalised content based on their website activity, past purchases, etc.

‒ Source: Epsilon, October 2008

Emailvision

www.emailvision.com

“The number one challenge to email marketing effectiveness

is targeting customers with highly relevant content”

MarketingSherpa’s 2011 Email Marketing Report

Our Survey

‒ Source: Emailvision Customer Survey Nov 2011

Our Survey

‒ Source: Emailvision Customer Survey Nov 2011

“Data is not useful until it becomes information, and that's because data is hard for human beings to digest”

Seth Godin

The Power of Visualisation

The Marketing / IT Divide

Perceptions of each others departments

● Marketing's perceptions of IT were:● IT is the department of "no"● IT doesn't speak marketing's language● IT doesn't understand the need for speed● IT isn't concerned with the customer

● IT's perceptions of marketing boiled down to two:● Marketing is spin● Marketers don't care about integration

‒ Source: Forrester Research from www.chiefmartec.com

Business Challenge

Marketing IT

How to Develop Insight

● Leadership for cultural change● Data, Tools, Process, People….

● Decisions made from customer data analysis

Value of using insight for Targeting Relevance

Value of Insight

“With access to deeper customer insights, we have quadrupled our conversion rate.”

Laura Henderson

Online Marketing Manager at Republic

Send Relevant Content to Segments

8 lifestyles5 languages2 genders

1 campaign

The French guy who likes sports

The English woman who likes fashion The English guy who likes the beach

The German guy who likes travel The German woman who likes comfort

The Customer Journey

Acquisition Active

RFM Segment 1

RFM Segment 2

RFM Segment 3

RFM Segment 4

RFM Segment 5

Nursery Lapse

Lapse Segment 1

Lapse Segment 2

Lapse Segment 3

Lapse Segment 4

Lapse Segment 5

Advocate

Dormant

Example Lifecycle Insight Elements

Type Insight Element

Days since Join Date

Entry Product

Age Band

Email Domain

Click Frequency

Has Shared to Social Network

Post Click Tracking Total Conversion Value

Average Basket Spend

Days since Last Purchase Date

Most Purchased Brand

Preferred Purchase Time

Total Spend in Last 12 Months

Days since unsubscribe

Exit ProductRetention Fields

Acquisition

Demographics

Message Response Behaviour

Purchase Behaviour

Lifecycle Campaign Types

ON AQUISITION

• Welcome• Capture data /

preferences

NURSERY

• Convert to purchase

• Capture data / preferences

ENGAGE

• Transactional thank you

• Cross / up sell• Re-order• Recommend a

friend / social referral

• Birthday

RETAIN

• New products / services available

• Back in stock• Rate and

review • Lapse risk

offers

REACTIVATE

• Win back

Subscribed but not purchased

Purchased

Registration - Office

● Collection of just email address, title and name for registration

● Gender inferred from title

● Customer chooses what other info they want to give

Welcome - Office

● Objectives:● Welcome customers to

Office● Highlight Preference

Centre● Increase Customer

Profile Data

● Customer incentive for adding preferences is a free prize draw for £100 worth of office shoes● Open rates of 39% and

CTR of 19%

Preference Centre - Office

● Customer profile information

● Customer interests by category i.e. Women's and brand

● Update of email and mobile subscriptions

● Enables segmented emails such as new store opening based on customer postcode

Convert to Purchase – Spa Finder Deal

One US state

Pushed 119,798 Opened 26,987

Open rate 22.53% Click through 14,634

Click through rate 12.22%

Pushed 355,945 Opened 37,174

Open rate 10.4 % Click through 11,110

Click through rate 3.1%

All US states

Cross / Upsell - Beaute Privee

● Types of links clicked● Product category / brand preferences● Recency/Frequency: opens, clicks, purchases…● Product groups: the most visited, the least bought● Repeat buyers profiles● Socio-demographic profiles

Products

SalesE-commerce

eCommerce Database

Beaute Privee - Cross / Upsell

Back In Stock - feelunique.com

● Customer sent emails when out of stock items they wanted are back in stock

● 2.5 times the Conversion compared to weekly emails!

Re-order - feelunique.com

● Product lifetime data added to 15000 products

● Customer has choice to receive or not

● Reminders intelligently bundled together to minimise marketing fatigue

● 5x conversion compared to weekly emails!!!

Win Back – feelunique.com

● Sent to customers who have not ordered for 3 months

● Free delivery offer

● VIP club

Birthday Emails - FCUK and Dior

Product Review - Filofax

Recommend a Friend - Hearst Magazines

● 16% sent free copies to friends

● 55% Facebook likes increase

● 18% in unique visitors to Red.nl

● 2017 additional newsletter subscribers

Summary

● Collect and analyse your data, it is a very valuable asset

● Empower marketers with the challenge and work with IT

● Create actionable customer insight

● Use this insight to drive timely and meaningful relevance in customer lifecycle engagements

● Measure the impact

THANK YOUEMAILVISION – STAND E16

Pioneering Technology

Passionate

Entrepreneurial

Client Focused

London 2012: How to successfully engage with your consumers online in

the build up to the Olympics

James Murray - Experian Hitwise

Address Quality Management - The dos and don’t's of domestics and international address and data quality

management

Laura Forvague - Capscan Ltd

Addressing Data Quality

The dos and don'ts of domestic and international address and data quality

management

Laura Fovargue – Regional Sales Manager

Capscan Ltd

Address & Data Quality Solutions

Capscan Limited Grand Union House, 20 Kentish Town Road, London NW1 9BB United Kingdom Registered in England No. 01183941 VAT No. GB 123 3577 29

Agenda

• Importance of Data• Name and Address Data Errors• Impact of errors on customers?• Damage to your organisation• How can these issues be prevented?• Case Studies – Forever 21• Top Ten Tips• Summary

Importance of Data

• The quality of customer and address data determines the success of your organisation

• It has a huge impact on business

•Profitability

•Growth

•Competiveness

“Poor quality customer data cost U.S. businesses $611 billion a year”

The Data Warehousing Institute

Importance of DataResearch shows:

Source: Data Quality Survey, Graham Rhind & Capscan Ltd

Name & Address Data Errors

Mis-spelt details Badly formatted address details

Structural Name and Address Errors Missing elements

Duplicates Vanity Addressing

p turner

Fishponds Road ,Hitchin

SG5 1NS

Mr Paul Turner

Ivy Cottage

Fishponds Road

HITCHIN

SG5 1NR

12 Via Massa

Florence

Via Massa 12

50142 FIRENZE FI

Impact of Errors on Customers

It’s Personal!

• Customer does not feel valued• Poor perception created• Personal reaction• Loss of confidence• People always remember the errors – hygiene

factor

Impact of Errors on Customers

Service and Delivery do not live up to client expectations

• Delay in payment• Miss-deliveries• Time spent waiting for replacement goods• Inefficient/inappropriate customer

service/complaints response• Poor customer experience

The scale of the delivery problem?

• Royal Mail states that 14,560,000 letters are lost or substantially delayed every year

• Postwatch said loss figures were "much higher" in reality

8 million letters a day - no postcode or an inaccurate one

• Royal Mail destroys on average 25 million undeliverable letters, packets and parcels each year

• In the last 6 years, they destroyed 152 million items of post that could not be delivered or returned to sender - the majority were business mail!

Postwatch & Royal Mail

Damage To Your Organisation

• Poor perception created• Loss of confidence - Damage to Brand• Additional costs associated with miss-deliveries

and customer complaint handling • Less repeat business• Reduced customer loyalty

How can these issues be prevented?

• Review and Audit Data Processes and Issues• Who is responsible for customer data?• Board and senior management buy-in essential• Set Objectives for Improvements• Select suitable strategies for each business data

area• Agree targets• Measure and review progress

Review Data & Data Costs in the Business

Contact/Call Centres Customer Services Store/Branch Users

Website Info Requests Web Shop

Data from Acquisitions Prospecting Lists

Field Representatives SMS/Text Campaigns

Customer/Sales Analysis Customer Profiling Business Decisions Compliance/Blacklists

Location Intelligence Route Planning GIS

Product Deliveries Parts Shipping

On-site Engineers

Direct Marketing Promotional Mailings Invoicing General Correspondence

INCOMING OUTGOINGINTERNAL

Front-end Touch Points

Contact/Call Centres Customer Services Store/Branch Users

Website Info Requests Web Shop

Field Representatives SMS/Text Campaigns

INCOMING Options for capturing more accurate data in multi-channel management

1) Ensure data entry screens are well designed, clear, and simple

Consider - Mandatory Fields- What countries need to be considered- Local salutation options- Individual fields for individual elements- Basic Data Validation

2) Implement Address Verification Functionality

Options Include - In-house software for data capture- Hosted address verification

servicesConsider - Datasets required now & in the

future

3) Implement Name and Salutation formatting technology

Existing Data Maintenance

Data from Acquisitions Prospecting Lists

Customer/Sales Analysis Customer Profiling Business Decisions Compliance/Blacklists

Location Intelligence Route Planning GIS

INTERNAL Options for reviewing existing customer information

1) Data Audit – Current Accuracy Levels

2) Manual Data Correction – Very low data volumes

3) Batch Name & Address Cleansing Tools-

Verify, cleanse, & format historic data - Apply postal authority data updates - Enhance data

4) Batch De-Duplication Tools

Case Study – Forever 21

•The Background - Forever 21is a specialty clothing and accessories retailer for women, men and children with a reputation making the hottest fashion trends available to customers at great value. The company is headquartered in Los Angeles and operates over 480 stores worldwide.

•In retail today it is just as important to have strong presence online. According to Mintel £4.3 billion worth of clothes were bought over the Internet in 2010, a growth of 152% in the last five years, with over a third of consumers having bought in the past year.

• With the explosion in demand for consuming fashion online; a new ecommerce site would be instrumental in establishing the Forever 21 brand in the UK.

•The Problem - The success of Forever 21’s new website hinged not only on offering the latest fashions at the right price, but also in making the online experience enjoyable and easy to buy from, for the savvy, stylish consumer.

•A crucial part of the online purchasing process is making the final transaction at the checkout as simple and straightforward as possible, reducing the time it takes to complete the transaction.

•Forever 21 had a tight schedule and needed a software solution that could be fully integrated into their ecommerce site, to ensure every customer address is rapidly validated at the point of entry.

•Having considered a number of different options, Forever 21 selected Capscan’s web-based address management software – Matchcode Webnet.

• The Benefits – Capscan’s solutions could provide validation for both UK and European addresses.

• When a customer visits Forever 21’s website and has finished filling their shopping basket, they navigate to the checkout and sign-in if they are an existing customer, or register their details as a new customer.

• When prompted on the online form, they simply enter a postcode or partial address and Matchcode Webnet instantly provides the customer with a drop down list of addresses associated with that postcode.

• Upon selection of the address, the relevant fields in the order form are populated with the customers full and correct postal address, which has been validated against the Royal Mail’s PAF file of 28.2 million UK addresses.

• The addressing solution ensures Forever 21’s customer database is populated with only accurate and clean address information which ensures the products are delivered on time and to the right address, and enables them to correspond and market to their customers.

How It Works

In the address fields of the contact form, simply enter a postcode (or partial address)

How it works

How It Works

Matchcode will complete the address fields and return a full and valid address

How It Works

It can also provide you with information like the telephone number, SIC code, and D-U-N-S number…

How It Works

And other useful information like health and local authority details and geocodes etc…

Additional Data Include:

- Business data by D&B® - Names Data Verification- Geographical Information - Ward Codes/ name - Constituency information - Local Education Authority - MP Names - European Electoral Region- Primary Care Trust - Primary Care Group - District Health Authority

Top Ten Tips For Data Quality• Regard data quality as a vital aspect of your e-Commerce,

CRM, and DM programme• Establish clear aims and objectives for quality management

programme with management buy-in• Consider the data elements of your database and how things

are recorded• Parse, standardise, validate and augment data• Conduct data audits and measure the quality of your data

with regular cleansing• Collect good data in preference to correcting bad data• Keep track of cost and ensure your data is compliant• Adopt cutting edge tools and technologies• Measure and review your programme of changes• Use Capscan’s DQM Solutions

In Summary

• Inaccurate name and address data can have a significant impact on customer retention, customer experience, and repeat orders

• An organisation need to have a DQM strategy, but should be considered in relation to its corporate strategy

• Review & Audit of existing processes and data is vital

• Name and address management technology can help ensure accuracy of data at point of capture or in a batch environment

In Summary

• Key benefits to resolving data issues– More timely deliveries– Reduced costs associated with returns– More automatic credit card approvals– Improved Single Customer View– Improved Customer Experience– Improved customer satisfaction with fulfilment

and support– Drive loyalty, customer retention, and repeat

business– Maintain and increase revenue and profits

Thank you for listening!

Any questions?

Capscan can help you with your UK and International customer data issues

Please visit us at stand G46 for further information and a copy of this presentation.

Managing Forward: Analytics to understand the multi-channel and multi-device consumer

Don Morrison - ForeSee

data & marketing analytics theatre: putting customers at the heart of your analytics strategy

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