With more than 45% of all customers accessing product information via web sites, mobile devices and social channels before ever entering a store, the role of the merchant must continue to evolve.
More than ever before, merchants must strive to reach shoppers on a personal level and customize the shopping experience within all shopping channels. Today’s high performance retailing solutions provide critical answers that will guide retailers towards profitable encounters with each shopper.
4. About Retail TouchPoints
ü Launched in 2007
ü Over 23,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter:
WWW.RETAILTOUCHPOINTS.COM/SIGNUP
#RetailAnalytics
5. Panelists
Eric Williams Anthony Volpe
Former Executive VP Retail Analytics Evangelist
and CIO SAS
Catalina Marketing
MODERATOR
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
#RetailAnalytics
6. Improving Business Performance
with Customer Insights
atio n
For the “ Me” Gener
Company Confidential 2012
Enw advisors
6
7. Who is Catalina Marketing
• Founded in 1983
• Headquartered in St. Petersburg, Florida
• $500+ million annual revenue
• Privately held (Hellman & Friedman)
• Invented consumer-based Marketing in early 1980’s
~ 27,000 US Grocery & Mass Merchants
~ 10,000 International (France, Italy,
Germany, Belgium, Netherlands, UK, Japan)
~ 17,000 Pharmacy (US)
Company Confidential 2012
Enw advisors
8. The World of Marketing has changed and
the Data required to operate has changed
Mass Media continues Personalized, Behavior-Specific
to Diminish in Targeting is Everywhere
Relevance
IN GS
Y SAV
WE EKL
Online Wireless
Social Networking Voice Mail
Text
POS Print Messaging Real Time POS
Messaging Company Confidential 2012
Enw advisors
9. The “Me” Generation has created
challenges for traditional advertising media
iPod iPhone My Television Facebook My Way
Self Magazine Personal Trainer Personal Coffee
Company Confidential 2012
Enw advisors
10. What Consumers Want in Marketing
Communication
1. Short and to the point
2. Choose to see when convenient for me
3. Personally communicated by trusted friends or experts
4. Information about price discounts or special deals
5. Customized to fit my specific needs and interests
Source: Yankelovich Partners Marketing Receptivity Study
And… maintain my personal information securely
and use it appropriately
Company Confidential 2012
Enw advisors
11. Customer Insights:
Making Information Actionable
Using Customer Insights to Move From
Product Centric to Customer Centric Strategies
Product is king … Customer is queen …
This is who buys it This is what is important to her
Company Confidential 2012
Enw advisors
13. Predictive Modeling – Books / CDs / Movies
Brand Buyer Likely to Buy Brand
What is Predictive Modeling?
A sophisticated method to identify and
communicate to consumers who have never
purchased your brand but are most likely to buy
Predictive Modeling:
1) Greatly enhances trial efficiency
2) Excellent conversion rates after trial
Likely brand buyers exhibit similar grocery
3) Increases “never buy” response rates purchase behavior as current brand buyers,
only they have not yet purchased the brand
Company Confidential 2012
Enw advisors
13
14. Making Consumer information Actionable
Data Mining – Predictive Analytics
Data mining allows marketers
to focus their investments against
most likely new customers
“When consumers first try Coffee Mate or International Delight, they tend to
remain loyal to that product. If we could only predict which households
cream their coffee with milk we can attract them, but almost all households
buy milk.”
- Nestlé USA
Company Confidential 2012
Enw advisors
15. Data mining allowed Catalina to predict and
market to households lightening coffee with milk
• Within Catalina’s household database
– Use Behavior Activated Research (BAR) to conduct attitudinal
study of a group of milk and coffee households
– Identify those who lighten their coffee with milk
• Identify similar households in Catalina’s database based
on a predictive model
• Apply impressions against identified groups
• Measure changes in groups’ purchase behavior
Company Confidential 2012
Enw advisors
16. Marketing Solutions for Top Industry Initiatives
$7.83
$7.75
RECIPE
$7.00 +
RECIPE INCENTIVE
CONTROL ONLY
Precision Marketing Solution Average Dollar Sales
Launching Find the people who care Advancing
Tell them the day it’s in the store Precision Marketing Solution
New Eat At Find the people who have the ingredients
First an ad, then an incentive
Items Home Give a cook-at-home-tonight recipe
Result Recipe only or Recipe + Incentive
Accelerated new item velocity
Ongoing higher share Result
$0.13 investment yielded $0.75 in sales
Category Growth Brand Growth
Purchase
Cycle
Compressed Volume Lift: Test vs Control
Driving 50%
Building 64.3% 65.2%
Usage 72 35
61.8%
&
Category 54.8%
Days Days
Compliance Volume
16.7% 18.5%
Precision Marketing Solution 8.4%
13.3%
Educate with a series of helpful messages
Reinforce benefits of regular regimen Bath Tissue Feminine Frozen Instant
Care Waffles Coffee
Result
Company Confidential 2012
Consumers began to buy monthly, not bi- Enw advisors
16 monthly
17. Creating a Unique Campaign for
Each Segment
$80
$70
$60 LOYALS
AVG BASKET
$50
SPLITS
$40
$30 Occasionals
$20
$10
$-
- 1 2 3 4 5 6 7
Trips Per Month
Splits Loyals
Occasional $99/Mo $285/Mo
$38/Mo 1.8 Trips 4.2 Trips
1.1 Trips 31% Sales 60% Sales
9% Sales
Segment Create a Trip Recapture Stock
Strategy
More Trips Mission
Up Categories
Company Confidential 2012
Enw advisors
17
18. Tailor Your Communications
Deliver customized incentives based on loyalty and category consumption
Loyal Buyer of Retain &
Own Brand Optimize
Gain
Occasional Buyer Share
Buys Competitor Try Me
Frequently Again!
Never Buys Initial
Own Brand Trial
Company Confidential 2012
Enw advisors
18
19. Offer Optimization
1 2 3 4 5 6 7
Cereal $1 off $7 1
Carrots $1 off 2 lb Jam $1 off $3 Milk $0.50 off gal. OJ $1 off $7 Bakery $1 off $7 Cheese $2 off $7
Cereal $1 off $5 Carrots $2 off 3 lb Jam $2 off $4 Milk $1 off $7 OJ $1 off $5 FREE Muffin Cheese $1 off $7
Cereal $1 off $3 Jam $1 off $5 Milk $1 off $5 OJ $1.50 off gal. Cheese $1 off $5
FREE Salad Bag Jam $2 off $7 Milk $1 off $3 Cheese $1 off $3
Customer must qualify for 3
Offer Groups to get a
distribution.
If customer qualifies for more
than 5, they should only get the
5 highest priority
Company Confidential 2012
Enw advisors
20. The New Consumer
Personalization
(opt in, my communication style, recognize me, mass is noise)
Company Confidential 2012
Enw advisors
21. Multi-Channel Shopper Platform
DIGITAL
TOUCHPOINTS
Targeted
Offers
(Mobile,
Kiosk,
Screen,
Apps,
Email,
NFC,
(Relevant.
Personalized.
Timely.)
etc.)
Intelligent
Shopper
Solu)on
PROCESS
PERSONNEL
TECHNOLOGY
Company Confidential 2012
Enw advisors
22. Loyalty Marketing Continuum
Market Impact
5 Integrated Customer Marketing
4 One To One Marketing Programs
Relevant Offers / Promotions based on Customer
Purchase History
3 Customer Segmentation
Based on Spending/Frequency, Product Preferences
2 Building Card Usage
Regency/Frequency 80% + Sales on Card
1 Customer Sign-up
Laying Foundation of Loyalty Database
Commitment
Company Confidential 2012
Enw advisors
23. Data gets you in the game
Information provides the advantage
Knowledge changes everything
Thank You!
Eric Williams
Executive VP & CIO - Retired
Catalina Marketing Corp.
ENWill@aol.com
Company Confidential 2012
Enw advisors
23