A Roadmap To Retail Personalization: How To Align Marketing Strategy And Execution sponsored by Manthan Systems #RetailRoadMap

1. A
Roadmap
To
Retail
Personaliza3on
#RetailRoadMap
SPONSORED
BY
How
To
Align
Marke=ng
Strategy
and
Execu=on

2. #RetailRoadMap
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ques3on
here
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3. #RetailRoadMap
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4. #RetailRoadMap
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5. #RetailRoadMap
Panelists
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Hillary Ashton
VP of Customer Analytics
Manthan Systems

6. Why Personalize?
86% of consumers — and 96% of retailers — said
personalization has at least some impact on the
purchasing decision (Infosys)

7. The Line Between
Personal And Creepy
93% of shoppers are willing to share personal information to
receive customized offers. BUT they’re not willing to share
everything: 78% are ok with sharing their email address;
64% zip code; 38% birth date and 38% postal address.

8. Using Personalization To
Beat Amazon
Innovation through personalization is key to gaining an
edge in today’s competitive marketplace.
Bottom line: at least 31% of consumers want more
personalization in their shopping experiences.

9. Challenge:
Personalize Across Channels
40% of consumers buy more from retailers that
personalize across all channels (the e-tailing group)

10. A Roadmap to
Retail Personalization
Hillary Ashton
VP Customer Analytics, Manthan
10

11. Today’s retail pressures
Give me what I want, when I
want it, how I want it.
And it better be at a good
price.
I’ll engage with you in a
race to the bottom.
I know I can win.
Profits, profits, profits!
Do more with less.
CUSTOMER
COMPETITION
ORGANIZATION

12. The experts weigh in
The key is segmenting to closely target the demographics making up your future shopper base. By
looking at segments on a micro level, you can get to know shoppers on a store-by-store basis and figure
out which features you want to prioritize in which locations. Get to know who is in your store aisles and
what they want today to shape how you personalize their experiences in the future.
PricewaterhouseCoopers LLP “Front of the Line” report.
Retailers now recognize that price and/or product are not enough to differentiate their brand, they need to
focus on the customer experience to win.”
RSR, Retail Marketing 2013: Organizational Drift report.
[Retailers] are viewing their shoppers’ behaviors broadly: They look at things like spending and
purchasing habits, basket composition, purchase timing and frequency, wallet share, marketing
effectiveness, and branding impact. Envision your future shoppers by understanding the most minute
changes in areas like these, and use that knowledge to model and anticipate future behaviors.
PricewaterhouseCoopers LLP 2014 report.

13. 13
Your consumers are ready and waiting
Nearly half of consumers are happy to provide retailers
with their personal information as long as it results in a
truly personalized offering; and more than 60% would
increase their purchases if they were offered a
personalized subscription program.
Accenture. November 2013 Survey of 15,000
consumers across 20 countries.
As many as 59% of shoppers who have experienced
personalization believed it had a noticeable influence
on their buying behaviors.
Retail Touchpoints. Consistency,
Personalization Valued Most Among
Consumers.

14. What is retail personalization?
14
KNOW YOUR
CUSTOMER
UNDERSTAND
THE CONTEXT
DELIVER
SOMETHING
OF VALUE
TEST + REPEAT
REMINDER: BRAND CONSISTENCY IS ALSO A CRITICAL COMPONENT

15. For better or worse: a personalization matrix
15
Warm Fuzzies
So Creepy
The Headlines
• 6 things online retailers can learn
from Amazon
• How Target figured out a teen girl
was pregnant before her father did
• Shutterfly congratulates thousands
of women for babies they didn’t
have
• Office Max blames data broker for
‘car accident’ letter
Spot OnMissed the Mark

16. Why is it so challenging?
16
While consumers have expressed
growing interest in receiving
personalized offers, only 8% of retailers
rate themselves as being effective at
personalization.
Gartner. “Predicts 2014:
Digitalization in Retail” report.
Over 63% of marketers express a need
for better data and better marketing
platforms to achieve effective
personalization.
Neustar. 2014 survey.
DATA
must be accurate, timely and
relevant.
must incorporate multiple
sources (e.g., channel).
SYSTEMS
must support the complete
personalization lifecycle.
must consider CRM, loyalty,
analytics, campaign
management, real time offers.
EXECUTION
must be flawless and aligned
with brand.

17. Before you get started …
17
Create your strategic roadmap.
What is the
business problem?
What is the
revenue impact if I
solve this
problem?
What is a
reasonable time-to-
value?

18. Roadmap for Customer Analytics
360 Degree View of
Customer
• Single customer-centric
view of customer
including purchase
data, demographic data,
preference, contact
information and loyalty
card data.
Predictive Customer
Analytics
• Define and understand
customer segments
• Predict what customers
will do next including
churn risk.
• Understand customer
recency, frequency and
monetary behavior and
other key attributes of
individual customers.
Integrated Omnichannel
Communication
• Select targeted offers
for customers based on
customer attributes and
predictive analytics.
• Manage customer
communications across
channels in an
integrated and
automated manner.
Personalized Customer
Offers
• Recommendation
engine that evaluates
market basket and
cohort purchase
behavior that identifies
other products that are
appropriate for an
individual customer.
CLOSED LOOP FEEDBACK PROCESS

19. 19© Copyrights 2014 | Manthan Systems
Analytics and personalization in action
Jose
• Buys beer &
prepackaged meals
• Shops lower priced items
pays full price
• At risk for churn
• “Entertainer” segment
Sarah
• Shops perimeter
• Low frequency, shops 2
times per month
• “Convenience” segment
Holly
• Buys wide range of
categories
• Lower than average
market basket size
• “Secondary Shopper”
segment

20. 20© Copyrights 2014 | Manthan Systems
Analytics and personalization in action
Churn prevention
campaign
• 20% churn rate
• 1m customers total
• Average annual
spend of 3k per year
per customer
• Decrease churn by
5%
• $30m in saved
revenue
Jose
• Buys beer &
prepackaged meals
• Shops lower priced items
pays full price
• At risk for churn
• “Entertainer” segment
Sarah
• Shops perimeter
• Low frequency, shops 2
times per month
• “Convenience” segment
Holly
• Buys wide range of
categories
• Lower than average
market basket size
• “Secondary Shopper”
segment

21. 21© Copyrights 2014 | Manthan Systems
Analytics and personalization in action
Churn prevention
campaign
• 20% churn rate
• 1m customers total
• Average annual
spend of 3k per year
per customer
• Decrease churn by
5%
• $30m in saved
revenue
• 15% of customers
are low frequency
• 1m customers total
• Average spend is
$35 per trip
• Improve frequency
5%
• $2.5m increased
revenue annual
Jose
• Buys beer &
prepackaged meals
• Shops lower priced items
pays full price
• At risk for churn
• “Entertainer” segment
Sarah
• Shops perimeter
• Low frequency, shops 2
times per month
• “Convenience” segment
Holly
• Buys wide range of
categories
• Lower than average
market basket size
• “Secondary Shopper”
segment
Campaign to increase
frequency

22. 22© Copyrights 2014 | Manthan Systems
Analytics and personalization in action
Churn prevention
campaign
• 20% churn rate
• 1m customers total
• Average annual
spend of 3k per year
per customer
• Decrease churn by
5%
• $30m in saved
revenue
• 15% of customers
are low frequency
• 1m customers total
• Average spend is
$35 per trip
• Improve frequency
5%
• $2.5m increased
revenue annual
Campaign to increase
monetary
• 10% of customers
have lower market
basket size
• 1m customers total
• Average spend is
$20
• Improve spend by
20%
• $7m increased
annual revenue
Jose
• Buys beer &
prepackaged meals
• Shops lower priced items
pays full price
• At risk for churn
• “Entertainer” segment
Sarah
• Shops perimeter
• Low frequency, shops 2
times per month
• “Convenience” segment
Holly
• Buys wide range of
categories
• Lower than average
market basket size
• “Secondary Shopper”
segment
Campaign to increase
frequency

23. Churn reduction: 20%
Sales lift: 8%
Case Study:
Retailer adopts Manthan solution:
• Single view of the customer
• Behavioral segmentation
• Customer behavior
understanding
• Customer churn prediction
• Affinity-based promotions
execution
• Best-in-class marketing reporting
Succeeding with personalization
YOUR Store

24. Global leader in retail analytics
Vision
Be the Chief Analytics Officer for the top
companies in the retail & CPG industry
Method
We bring fundamental change in the
way analytics are bought, used, applied,
and benefitted from
CUSTOMER ANALYTICSMERCHANDISE ANALYTICS
Store Ops Finance
eCommerce
Analytics
Know your Customer…
Establish a Dialogue
Optimize buying, selling, pricing,
assortments, placement
DATA & PROCESS
COLLABORATION PLATFORM &
ANALYTICS
Analytics Platform for Data Insights,
Monetization and Collaboration
TargetOne Loyalty247
Customer360 Vendor Insights
Vendor LinkFuel Analyzer
Chief Analytics Officer for 120 businesses

25. 25
www.manthansystems.com/ca
hillary.a@manthansystems.com
Questions?

26. #RetailRoadMap
Q
&
A
//
Panelists
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Hillary Ashton
VP of Customer Analytics
Manthan Systems

27. #RetailRoadMap
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