The traditional models of retailing are changing with the emergence of new channels, new methods of merchandising and marketing and new ways to emasure performance - Peter Charness, Manthan Systems

1. 24 X 7 Retailing
Is it Working?
Peter.Charness@Manthansystems.com
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2. Analytics for 24 X 7 Retail “The Opportunity”
• One Hour Offer Expires
• The “100” Offer
• Proximity & Behaviorally
Profiled Mobile Coupon
• The $55 TV
• NASTYTWEET
• (Was the product there to meet demand?)
• Did it Work?
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3. The Balance is Shifting - 200 Years of Retail
Merch Mktg
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4. The Old Way
• Merchants Rule
• Retailers Sell what the Buyer Buys
– Marketing helps move the products that the customer didn’t
understand……..
• Marketing Anniversaries old promotions
– “Coordinates” Production
• No One is responsible for Stock Outs…….
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5. Dramatic Change
The World We’re Leaving Behind The New Reality
• Chain Level Assortments • Consumer Driven Product
• Chain Level Pricing • Remix by Customer
• A Few “Versions” of – Stores
Flyers – Web Experience
– Pricing
• Mass Email
• The Product Was the Sell • Time/Proximity/Attribute
Based Offers
• Selling Customers “a few”
at a time
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6. Traditional Measures and Controls Fall Aside?
• From the CFO……
– Before:
• Marketing can NEVER accurately project expenses
• Open to Buy is NOT a GUIDELINE!
– Now:
• You want more headcount for tweeting for the Merchants?
• You want OTB just to support marketing initiatives?
M M
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7. Performance Metrics
• Sales
• GMROI
• Operational Productivity
• Sentiment?
– Returns, Repeat Purchases……
– One Unhappy Customer might tell 10 People
– A Happy customer may tell one friend.
– Complaints Department
• What you didn’t know probably couldn’t hurt you…..
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8. Today “Sentiment” – Speed and Volume
• One-quarter of U.S. consumers are far more likely to spread
the word about a bad experience or product than a good one,
according to Colloquy's latest research into word-of-mouth
sharing practices.
• “no name blogger” 61,000 readers/week
• Tweets
• Facebook
• ……….
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9. 24 X 7 Retail
• Increasingly we sell what we influence and promote
• One to One Marketing
• More Marketing Budgets and Experimentation
• The M&M’s – Unprecedented Coordination Required
• Is it Working?
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10. 3 T’s Framework Measuring Success
Transacting Thinking
Talking
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11. Stage 1 - Thinking
Thinking reflects a consumer who is
at a stage of interest about your
company, or a product (that your
company may sell). The consumer is
assembling knowledge, rationalizing
need, and while at the very front end
of a purchase decision potentially on
the path to purchase.
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12. Stage 2 - Talking
Talking reflects interaction between
consumers who have something to
say about your company or product.
While Talking has always occurred it
has largely been invisible and
impossible to measure..
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13. Transacting
Transacting the ultimate measure of
success being a margin rich
transaction and a happy purchaser
willing to be a repeat buyer. (Attribution
of causality for the purchase is difficult)
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14. Measurement
Thinking = Brand
• A brand is the essence or promise that a product,
service or company will deliver or be experienced by
a buyer
• Brand Awareness Can Be Measured
– Focus Groups, Impressions,
– Page Views, Clicks, Search, Stickiness,
• Conversions, CPC
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15. WSJ Today
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16. Meaurement
Talking - VFS
• Social Widgets
– Volume
– Frequency
– Sentiment
• Tweets, Reviews, Likes, Blogs, Searches
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17. Measurement
Transacting – Recording the Sale – New Dimensions
• Who Why
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18. 3 T’s Framework – Why did it Work?
Transacting Thinking
• Who? • Page Views
• Why? • Search
• Clicks
Talking
• Volume
• Frequency
• Sentiment
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19. Techniques for turning all this new data into profit
• Customer Segmentation Analysis – Who’s Buying?
– Assortment
– Sizes
– Unequal Offer
• Promotion & Campaign Analytics – Why are they Buying?
– Plan vs. Actual
– Reasons for Success/Failure
• Margins, Sell Through, Stock Outs……..
• “Brand Analytics” VFS – What do they think about us?
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20. New Methods for Information Delivery
• Packaged Solutions!
• Aggregation
• Exception Based Reporting
• Alerts
• Real Time Data
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21. Is it Working? Promotions/Campaigns
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22. Promotional Analytics
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23. Customer Analytics
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24. Questions?
• www.manthansystems.com
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