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CxPA Webinar
Harness the power of unstructured data
   to enhance customer experience
Barb Buettin, Director, CRM-Enterprise Information Management, Chico’s
        Wilson Raj, Global Customer Intelligence Director, SAS

                               #sasci
Contents
Context for Unstructured Data

Data Strategy for Customer Experience

About Chico’s FAS

It’s All About the Data

A Study of Customers

Q&A
Organizations’ Use of Data




3
POLL QUESTION # 1
     Which of the following are you currently collecting as
         “unstructured” / “Big” data and/or using with
                        analytics today ?

    A.   Structured data (tables, records)
    B.   Semi-structured data (XML and similar standards)
    C.   Complex data (hierarchical or legacy sources
    D.   Unstructured data (text, audio, video)
    E.   Social media data (tweets, blogs, social platforms)




4
Customer-Centricity: Value, but Barriers

        • 7 percent felt their organizations do “very well” at bringing
              together useful customer, product and project data from all sources
              and sharing it among product development, marketing and customer
              service staffs

        • 98 percent say “immediacy” within their organizations is
              either a “somewhat-critical” or “mission-critical” priority

        • 87 percent consider it “very important” to share near real-
              time integrated data — if they had it — between product
              management, customer service and sales in their organizations.

        • 66 percent say their organizations either can’t bring together
              customer, product and project data from all sources and share it or
              are trying to share but are facing challenges.

Coveo Survey: 100+ execs in Argyle Executive Forum 2011 - Customer Care Leadership


 5
Unstructured Data: A Perspective
                            •   All data is “born”
                                unstructured
                            •   Adding structure can
                                cause loss of valuable
                                information along the
                                way
                            •   Think in terms of
                                “haggling data”
                            •   Value of “haggling
                                data in terms of
                                customer insight



6
Types of Data in Your Business
     Structured                             Semi-Structured             UnStructured
     •   Relational &                       •   XML                     •       Web
         Legacy dB                          •   EDI documents           •       Wikis
     •   Spreadsheets                                                   •       Documents
     •   Flat files w/defined                                           •       Email/Messages
         record formats                                                 •       Log files
                                                                        •       RSS feeds
                                                                        •       Multimedia


                                                Static                      Dynamic/Real-time
                                Corporate

                                                •   Internal docs           •    Customer call logs
                                                •   Marketing               •    Customer service
                                                    content                      notes
                                                •   Sales reports           •    Meeting notes
                                                                            •    Transcripts



                                                •                           •
                                Internet




                                                    Analyst Reports               Social media
                                                •   Journals                •     Chat
                                                •   Corporate filings       •     Ratings/Reviews
                                                •   Press mentions          •     Breaking news




7
POLL QUESTION # 2
         Are you able to capture unstructured data and
            integrate with your marketing processes?

    A. All or most of the time

    B. Some of the time

    C. When we can

    D. Not currently able to do it



8
Value of Unstructured Data (… or any Data)




9
Connected Data Strategy for CxP


                                  Structured                                  Rational needs
                                                                              Information,
                                                                              Transaction, Service




           Semi-structured
                                                                                                                   CxP




                                                                                Emotional needs
                             Unstructured                                       Belonging, Identity, Aspiration,
                                                                                Performance, Knowledge




Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2012 | SAS



 10
POLL QUESTION # 3
      Which of the following is NOT a Chico’s FAS Brand?

     A. Chico’s

     B. White House | Black Market

     C. White House

     D. Soma Intimates

     E. Boston Proper


11
Who is Chico’s FAS




12
13
How we use marketing automation
     Highlights

        Segment Catalog Mailings and Differentiate Promotion Efforts for
        Maximum Impact



        Make Midpoint Corrections



        Bring Lapsed Customers Back to Chico’s at Triple the Success
        Rate of Previous Campaigns



        Cross-sell Across Brands



14
Why Implement a New Solution?
     10 year old technology on top of an extremely rich set of
       data
        – Huge missed opportunity!
     “Locked” data model
        – Inability to provide agile marketing or grow with the business
     Lack of data integration
        – Marketing is fluid, dynamic, and reactive with sometimes
          unexpected unstructured data from unexpected sources
        – Analytics was impossible




15
POLL QUESTION # 4
        What is the biggest challenge you’re facing in your
           marketing and customer experience efforts?

     A. Extracting actionable insights from your data

     B. Driving relevant personalized customer interactions

     C. Measuring customer experience performance

     D. Other



16
What are we looking for?
     Closing the loop on Direct Marketing

                                    Customer Insight
                                    -How do we better
                                     understand our
                                   customers and their
                                       behaviors?




                Marketing
               Performance                               Customer Interaction
            - How can we drive                           - How can we measure
               personalized                               marketing efforts and
           communications to our                         immediately act on the
                customers?                                      results?




17
Strategic Support - Marketing
     Customers – Who is she?

                                      Competitive
                                      Landscape




        Demographic                                               Online
                                                                 Behavior
          Overlay




                      Local Markets                 Trade Area




18
Strategic Support – Marketing
     Cross Brand View of our Customers

                                     Chicos’ FAS
                                      Customer


                                     Cross Brand
                                      Pollination
       Give her
       the extras!




                                        Chico’s,
                                        SOMA,
                                      WHBM, and
                                        Boston
                                       Proper as
                                     Independent
                                        Brands




19
Our Data Systems and Vendor Environment
                                                                            Campaign
                                                                            Customer
                                                                            Response



                                     – Internal Customer       Enhanced
                                                                Loyalty


                                                                             Customer
                                                                                         Preferences




                                       Data                      Loyalty
                                                               management
                                                                                           Events


                                                                             Campaign
                                                                            management




                                     – External Customer
                                       Data (Abacus)


                                     – Planning & Allocation
     The future is in relating all
     of the pieces to each other     – Workforce Scheduling
     in ways that are actionable
                                     – Online and Store
                                       Shopping Behavior


20
Strategic Support – Marketing
     Results
     Data Integration
         – Fluid, Dynamic, Reactive       FAST
         – Enable enhanced loyalty programs (CRM ODS + SAS)
     Analytics
         – Analytical modeling for more precise communications (allows better
           targeting)
         – Predictive! What is likely to be her next purchase?
         – Internal Cross-brand Prospecting
     Targeting!
         – Customer Intelligence
             • What is relevant to me?
             • Who DOESN’T need an offer to respond?
         – Item Brand Distinction – store versus Item
     Personalization
         – Location Callouts on specific collateral
         – Thank You’s! from associate of most recent purchase

21
The World Is Changing Rapidly

                                               World Population
                          8

                          7

                          6
     Billions of People




                          5

                          4

                          3

                          2

                          1

                          0
                              0   200   400   600   800   1000   1200   1400   1600   1800   2000

                                                          Year

22
The Apparel Industry and Communication Technologies
        Are No Exceptions
6000-3000 BC   1000’s -1100’s   1200’s    1300’s     1400’s      1500’s    1600’s      1700’s        1800’s       1900’s        2000’s


 Weaving        Woodblock       Buttons   Spinning              Stocking               Flying       Jacquard      Zipper       Nano-Tex
                 printing                  wheel                 frame                 shuttle        loom
     Wheel                                                                                                      Sunglasses     Salmon-
                                                                                      Spinning     Power loom                 skin leather
                                                                                                                 Polyester
     Writing       Paper                                                               Jenny
                                                                                                    Sewing                     Luminex
                                                                                                                   Nylon
     Abacus       Arabic                             Printing                        Water frame    machine
                                                                                                                 stockings    Speedo LZR
                 numerals                             press                          Mechanical    Safety pin
                                                                                                                  Bikini      Spider-web
                                                                                       loom
                                                                                                    Synthetic                     silk
                                                                                                                 Spandex
                                                                                     Cotton gin       dye
                                                                                                                Coat hanger     Home
                                                                                                   Blue jeans
                                                                                                                              broadband
                                                                                                                 Shopping
                                                                                                     Ready-
                                                                                                                   bag        Commercial
                                                                                                     made

       Is there still a place                                              Adding
                                                                           machine
                                                                                                    clothing
                                                                                                     Ready-
                                                                                                                   Mall
                                                                                                                Automobile
                                                                                                                                VoIP
                                                                                                                                 WiFi
                                                                                                   made shoes                 Mobile 3G

       for brick and mortar                                                                        Department
                                                                                                     store
                                                                                                                   Radio
                                                                                                                 Television
                                                                                                                                WiMAX
                                                                                                                                Web 2.0
                                                                                                                 Computer

       stores in this
                                                                                                   Telegraph
                                                                                                                               YouTube
                                                                                                     Braille     Integrated
                                                                                                                   circuit     Facebook
                                                                                                   Typewriter

       increasingly digital                                                                                      Calculator     Twitter
                                                                                                    QWERTY
                                                                                                                   Micro-     Blackberry
                                                                                                    keyboard
                                                                                                                 processor
                                                                                                                                 HDTV
                                                                                                   Telephone
       environment?                                                                                Light bulb
                                                                                                                  Ethernet
                                                                                                                  Internet
                                                                                                                              Multi-core
                                                                                                                              processing
                                                                                                                  Mobile      iPod/iTunes
                                                                                                                  phone
                                                                                                                                iPhone
                                                                                                                   WWW
                                                                                                                                 iPad


23
Supply Chain Actions Start With Customers

              Traditional view of the supply chain
                – Merchandise planning
                – Store clustering and assortment planning
                – Logistics and distribution capabilities


              Chico’s FAS view of supply chain
                – Put the right merchandise in the right store at
                  the right time
                – Be there when she is there




                “CUSTOMERS FIRST”
We’re Working to Better Understand Our Customers
                            AGE RANGE            INCOME           NET WORTH



                          Vast majority of 78% of customers    76% of customers
                        customers are baby are above U.S.       are above U.S.
                             boomers        median income      median net worth




                         Customers are a    78% of customers   53% of customers
                         mix of Gen X, Y,    are above U.S.     are above U.S.
                          and Boomers        median income     median net worth




                         60% of customers 80% of customers     71% of customers
                         also shop Chico’s; are above U.S.      are above U.S.
                        40% are Soma only median income        median net worth



25
We’re Working to Better Understand Our Customers
                    Top customers shop and spend
                      several times more than an
                      average customer

                    Retention and reactivation of these
                      customers is paramount

                    Customers are shopping across
                      multiple channels differently

                    Identifying new customer shopping
                       trends to target high-potential
                       future loyalists
Customer Behavior Clustering
                                   • Clustering of customers into
                                     groups based on their shopping
                                     behaviors
          Book Worms                  – Customer spend
                                      – Categories of products
 Bronze




          Comfort Seekers
                                      – Lifestyle indicators
          Southern Value Hunters

          Senior Development       • Match back what we know
                                     internally about these customers
          Value Families              –   Total Chico’s spend
                                      –
 Silver




                                          Loyalty and retention
          Chico’s Loyalist
                                      –   Outfitting vs. non-outfitting
          Town & Country              –   Geography
                                      –   Income
          West Coasters               –   Net worth
 Gold




          Urban Chic’s                –   Age
          Affluentials


27
Chico’s Cluster Comparison
     Affluentials                     Book Worms

     Tend to live in the Northeast    Tend to live in the South
     More direct and multi-channel    More outlet only
     Above average customer income    Below average customer income

     Shops and spends more than the   Shops and spends less than the
     average customer                 average customer

     Spend proportionately more at    Spend proportionately more at
     Chico’s in these categories:     Chico’s in these categories:
         – Collections                    – Travelers
         – Shorts                         – Jewelry
         – Sweaters                       – Accessories


28
Business Implications
     • Which new customers have the greatest potential to
       become our best customers in the future?

     • Along which lines should we be stratifying our product
       customizations for the greatest in-store benefit?

     • What forms of individualized clienteling do our customers
       want to experience when shopping with us?

     • How do our customers want their marketing
       communications from us to be customized?



29
Other Opportunities
POLL QUESTION # 5
     Would you characterize the relationship between your
        business units and IT as a strong, collaborative
                         partnership?

     A. Strongly Agree

     B. Agree

     C. Somewhat agree

     D. Disagree


31
Business and Technology Partnership
     Key to Our Success
     • Physical proximity to each other
     • Alignment on strategic discussions and decisions
     • Prioritization of work is for the greater good




                                       Technology
           Marketing
                                        Support



32
Continue the Conversation
     Resources for Slideshare Viewers:
     Check out this conclusions paper summarizing the discussion:
         Ten Ways to a Customer-Centric, Data-Driven Business Strategy
             • Register here: http://go.sas.com/bvza68

     Engage on our blogs:
         Thought Leadership: The Knowledge Exchange
          http://www.sas.com/knowledge-exchange/customer-intelligence

         Marketing Practitioners’ Views: Customer Analytics Blog
          http://blogs.sas.com/content/customeranalytics/



     Follow us on Twitter:
            @SAS_CI
           http://twitter.com/SAS_CI




33

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Harness the Power of Unstructured Data to Enhance Customer Experience

  • 1. CxPA Webinar Harness the power of unstructured data to enhance customer experience Barb Buettin, Director, CRM-Enterprise Information Management, Chico’s Wilson Raj, Global Customer Intelligence Director, SAS #sasci
  • 2. Contents Context for Unstructured Data Data Strategy for Customer Experience About Chico’s FAS It’s All About the Data A Study of Customers Q&A
  • 4. POLL QUESTION # 1 Which of the following are you currently collecting as “unstructured” / “Big” data and/or using with analytics today ? A. Structured data (tables, records) B. Semi-structured data (XML and similar standards) C. Complex data (hierarchical or legacy sources D. Unstructured data (text, audio, video) E. Social media data (tweets, blogs, social platforms) 4
  • 5. Customer-Centricity: Value, but Barriers • 7 percent felt their organizations do “very well” at bringing together useful customer, product and project data from all sources and sharing it among product development, marketing and customer service staffs • 98 percent say “immediacy” within their organizations is either a “somewhat-critical” or “mission-critical” priority • 87 percent consider it “very important” to share near real- time integrated data — if they had it — between product management, customer service and sales in their organizations. • 66 percent say their organizations either can’t bring together customer, product and project data from all sources and share it or are trying to share but are facing challenges. Coveo Survey: 100+ execs in Argyle Executive Forum 2011 - Customer Care Leadership 5
  • 6. Unstructured Data: A Perspective • All data is “born” unstructured • Adding structure can cause loss of valuable information along the way • Think in terms of “haggling data” • Value of “haggling data in terms of customer insight 6
  • 7. Types of Data in Your Business Structured Semi-Structured UnStructured • Relational & • XML • Web Legacy dB • EDI documents • Wikis • Spreadsheets • Documents • Flat files w/defined • Email/Messages record formats • Log files • RSS feeds • Multimedia Static Dynamic/Real-time Corporate • Internal docs • Customer call logs • Marketing • Customer service content notes • Sales reports • Meeting notes • Transcripts • • Internet Analyst Reports Social media • Journals • Chat • Corporate filings • Ratings/Reviews • Press mentions • Breaking news 7
  • 8. POLL QUESTION # 2 Are you able to capture unstructured data and integrate with your marketing processes? A. All or most of the time B. Some of the time C. When we can D. Not currently able to do it 8
  • 9. Value of Unstructured Data (… or any Data) 9
  • 10. Connected Data Strategy for CxP Structured Rational needs Information, Transaction, Service Semi-structured CxP Emotional needs Unstructured Belonging, Identity, Aspiration, Performance, Knowledge Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2012 | SAS 10
  • 11. POLL QUESTION # 3 Which of the following is NOT a Chico’s FAS Brand? A. Chico’s B. White House | Black Market C. White House D. Soma Intimates E. Boston Proper 11
  • 13. 13
  • 14. How we use marketing automation Highlights Segment Catalog Mailings and Differentiate Promotion Efforts for Maximum Impact Make Midpoint Corrections Bring Lapsed Customers Back to Chico’s at Triple the Success Rate of Previous Campaigns Cross-sell Across Brands 14
  • 15. Why Implement a New Solution? 10 year old technology on top of an extremely rich set of data – Huge missed opportunity! “Locked” data model – Inability to provide agile marketing or grow with the business Lack of data integration – Marketing is fluid, dynamic, and reactive with sometimes unexpected unstructured data from unexpected sources – Analytics was impossible 15
  • 16. POLL QUESTION # 4 What is the biggest challenge you’re facing in your marketing and customer experience efforts? A. Extracting actionable insights from your data B. Driving relevant personalized customer interactions C. Measuring customer experience performance D. Other 16
  • 17. What are we looking for? Closing the loop on Direct Marketing Customer Insight -How do we better understand our customers and their behaviors? Marketing Performance Customer Interaction - How can we drive - How can we measure personalized marketing efforts and communications to our immediately act on the customers? results? 17
  • 18. Strategic Support - Marketing Customers – Who is she? Competitive Landscape Demographic Online Behavior Overlay Local Markets Trade Area 18
  • 19. Strategic Support – Marketing Cross Brand View of our Customers Chicos’ FAS Customer Cross Brand Pollination Give her the extras! Chico’s, SOMA, WHBM, and Boston Proper as Independent Brands 19
  • 20. Our Data Systems and Vendor Environment Campaign Customer Response – Internal Customer Enhanced Loyalty Customer Preferences Data Loyalty management Events Campaign management – External Customer Data (Abacus) – Planning & Allocation The future is in relating all of the pieces to each other – Workforce Scheduling in ways that are actionable – Online and Store Shopping Behavior 20
  • 21. Strategic Support – Marketing Results Data Integration – Fluid, Dynamic, Reactive FAST – Enable enhanced loyalty programs (CRM ODS + SAS) Analytics – Analytical modeling for more precise communications (allows better targeting) – Predictive! What is likely to be her next purchase? – Internal Cross-brand Prospecting Targeting! – Customer Intelligence • What is relevant to me? • Who DOESN’T need an offer to respond? – Item Brand Distinction – store versus Item Personalization – Location Callouts on specific collateral – Thank You’s! from associate of most recent purchase 21
  • 22. The World Is Changing Rapidly World Population 8 7 6 Billions of People 5 4 3 2 1 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Year 22
  • 23. The Apparel Industry and Communication Technologies Are No Exceptions 6000-3000 BC 1000’s -1100’s 1200’s 1300’s 1400’s 1500’s 1600’s 1700’s 1800’s 1900’s 2000’s Weaving Woodblock Buttons Spinning Stocking Flying Jacquard Zipper Nano-Tex printing wheel frame shuttle loom Wheel Sunglasses Salmon- Spinning Power loom skin leather Polyester Writing Paper Jenny Sewing Luminex Nylon Abacus Arabic Printing Water frame machine stockings Speedo LZR numerals press Mechanical Safety pin Bikini Spider-web loom Synthetic silk Spandex Cotton gin dye Coat hanger Home Blue jeans broadband Shopping Ready- bag Commercial made Is there still a place Adding machine clothing Ready- Mall Automobile VoIP WiFi made shoes Mobile 3G for brick and mortar Department store Radio Television WiMAX Web 2.0 Computer stores in this Telegraph YouTube Braille Integrated circuit Facebook Typewriter increasingly digital Calculator Twitter QWERTY Micro- Blackberry keyboard processor HDTV Telephone environment? Light bulb Ethernet Internet Multi-core processing Mobile iPod/iTunes phone iPhone WWW iPad 23
  • 24. Supply Chain Actions Start With Customers Traditional view of the supply chain – Merchandise planning – Store clustering and assortment planning – Logistics and distribution capabilities Chico’s FAS view of supply chain – Put the right merchandise in the right store at the right time – Be there when she is there “CUSTOMERS FIRST”
  • 25. We’re Working to Better Understand Our Customers AGE RANGE INCOME NET WORTH Vast majority of 78% of customers 76% of customers customers are baby are above U.S. are above U.S. boomers median income median net worth Customers are a 78% of customers 53% of customers mix of Gen X, Y, are above U.S. are above U.S. and Boomers median income median net worth 60% of customers 80% of customers 71% of customers also shop Chico’s; are above U.S. are above U.S. 40% are Soma only median income median net worth 25
  • 26. We’re Working to Better Understand Our Customers Top customers shop and spend several times more than an average customer Retention and reactivation of these customers is paramount Customers are shopping across multiple channels differently Identifying new customer shopping trends to target high-potential future loyalists
  • 27. Customer Behavior Clustering • Clustering of customers into groups based on their shopping behaviors Book Worms – Customer spend – Categories of products Bronze Comfort Seekers – Lifestyle indicators Southern Value Hunters Senior Development • Match back what we know internally about these customers Value Families – Total Chico’s spend – Silver Loyalty and retention Chico’s Loyalist – Outfitting vs. non-outfitting Town & Country – Geography – Income West Coasters – Net worth Gold Urban Chic’s – Age Affluentials 27
  • 28. Chico’s Cluster Comparison Affluentials Book Worms Tend to live in the Northeast Tend to live in the South More direct and multi-channel More outlet only Above average customer income Below average customer income Shops and spends more than the Shops and spends less than the average customer average customer Spend proportionately more at Spend proportionately more at Chico’s in these categories: Chico’s in these categories: – Collections – Travelers – Shorts – Jewelry – Sweaters – Accessories 28
  • 29. Business Implications • Which new customers have the greatest potential to become our best customers in the future? • Along which lines should we be stratifying our product customizations for the greatest in-store benefit? • What forms of individualized clienteling do our customers want to experience when shopping with us? • How do our customers want their marketing communications from us to be customized? 29
  • 31. POLL QUESTION # 5 Would you characterize the relationship between your business units and IT as a strong, collaborative partnership? A. Strongly Agree B. Agree C. Somewhat agree D. Disagree 31
  • 32. Business and Technology Partnership Key to Our Success • Physical proximity to each other • Alignment on strategic discussions and decisions • Prioritization of work is for the greater good Technology Marketing Support 32
  • 33. Continue the Conversation Resources for Slideshare Viewers: Check out this conclusions paper summarizing the discussion: Ten Ways to a Customer-Centric, Data-Driven Business Strategy • Register here: http://go.sas.com/bvza68 Engage on our blogs: Thought Leadership: The Knowledge Exchange http://www.sas.com/knowledge-exchange/customer-intelligence Marketing Practitioners’ Views: Customer Analytics Blog http://blogs.sas.com/content/customeranalytics/ Follow us on Twitter: @SAS_CI http://twitter.com/SAS_CI 33