Getting creative with data
Post on 06-Jan-2016
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Getting creative with data
My experienceAgencies• Ogilvy & Mather Direct• BMP• Aspen Direct• Craik Jones• HS&P
Clients• Land Rover• Honda• Saab• Peugeot• Diageo• Unilever• Sony• Virgin Trains• COI• Boots The Chemist• Silverlink Trains• The Australian Tourist
Commission• Save The Children
Data should be used creatively
What is data planning?
Using data in your business to drive your marketing and sales
Using data in your business to drive your marketing and sales
Once called database marketing or data driven marketing
Once called database marketing or data driven marketing
But now has to incorporate data from within the whole organisation and outside sourcesBut now has to incorporate data from within the whole organisation and outside sources
We should call it insight
InsightInsight ProductProduct
MediaMedia
MarketresearchMarket
research
Transactional data
Transactional data
Customer dataCustomer data
EconometricsEconometrics
Identify and target
segments
Identify and target
segments
DigitalDigital
Data planning
• Understanding– Analysis, segmentation, modelling,
quantitative research
• Communication– Audience identification, means of
engagement, messaging to drive response
• Evaluation– Sales, media, ROI– Results interpretation– Learning
A mixed up world
• Specific data planning disciplines• The newish world of digital• Rapidly developing consumer
technology platforms• The law• The combination of planning skills to
create true customer insight and understanding
Sometimes this needs more than just data planning
What is MPP?
• A team of independent marketing planners• Disciplines include:– Data– Digital– Brand
• Specific skills:– Research– Econometrics– Analysis and modelling– Mobile marketing– Media planning
Insight
Data
DigitalBrand
Informed decisions from independent thinking
Boots case study
Finding those with potential
Demystifying the model
So what is it all about
• Getting Boots to move to a more targeted approach to customer communications.
• What we set out to achieve.• Building the model and how it works.• Using the model in anger.• Results.
Boots problem
Under siege on many fronts
Lloyds & local chemists
Supermarkets
Department Stores
Dixons Marks & Spencer
To be focused and single minded
To define itself and master an area
Boots needed to stand for something again
New focused proposition for Boots
PERSONAL
Recognises Boots employees as a critical element delivering
this attention and service
Health and beauty sits equally comfortably
under this umbrella
Shopping at Boots is a more engaging
and intimate experience
Clarifies the benefit of visiting Boots over
supermarkets
Clarifies the benefit of visiting Boots over supermarkets
Where Advantage Card fits
19m Boots shoppers with no card
4.5m cardholders, never active
9.5m low & medium value, low
redeemers
1mhigh
10.5m active card holders
4.5m non activated card
holders
19m potential
card holders
15m card holders
• Information used on • Existing value to Boots
• Message• Universal, treat yourself
Previous approach
magazine
mini mag tactical
• Information not used on• Spend outside Boots• Propensity to change• 8 segments
• Treat yourself not applied in segmented manner
Cos IE
CBYF MBB
LC
HAT HC
What was working
Biggest Most generous Drives sales New holders Treats positioning ATV Frequency voucher Magazine Events Supplier funded DM Kiosks Redeemers Simplicity
Biggest Most generous Drives sales New holders Treats positioning ATV Frequency voucher Magazine Events Supplier funded DM Kiosks Redeemers Simplicity
What was working
gain
redeem
VIRTUOUSCIRCLE OF
SPEND
Areas to addressSales effectKiosksMature holdersHighest value ring-fencedMagazineFrequency
Sales effectKiosksMature holdersHighest value ring-fencedMagazineFrequency
Non redeemers30% not activeNon redeemers30% not active
Sales decline AppealSales decline Appeal
Generosity - 4 X moreTreats fit with brand visionGenerosity - 4 X moreTreats fit with brand vision
Getting started
What we set out to achieve
• Identify customer value and potential– To protect spend in Boots.– To steal share from competitors.
• Change their behaviour– Identify the key behaviour triggers that
influence spend.• Hard triggers - collect and redeem points, distance
from store and store type, make up of family etc.• Soft triggers - attitudes to health and fitness,
dieting etc.
• Use the wealth of data in Boots to support a range of business planning functions.
The vision
Score Ad Card customers and put into three groups for
communications
Protect & develop
Steal share
Suppressmanage
Cu
rre
nt
va
lue
by
ca
teg
ory
Propen
sity
to c
hange
Value to market by category
The vision
Based on 1,400 exit poll.Works at category level.
Need more detail to go down to concept level - TGI overlay
Attitudes: TGI- attitudes to health and fitness- attitudes to personal appearance/care- attitudes to environment- attitudes to shopping/brands- attitudes to eating
Taken from AdCard database down tocategory
Demographics: Database/External sourcesGeography
Boots shopping behaviour- what, when, value
The vision
Every customer is given a score
Value to Boots Value to market Propensity to change
Scores are calculated at concept group level
Maximum flexibility for targeting/offer to stimulate change at a micro level
Steal Protect
+ +
Profit by
product
The realityBuilding the model
How?
• The Boots Database contains over 14 million individuals, with details of every transaction for the last 2 years
• This amount of data cannot be modelled, analysed or even held easily anywhere
• In order to even start looking at overlaying a model a 5% sample had to be extracted and sent to a specialist analytical company
What?• A model was needed to identify who had the
potential to buy specific products.• Past transactional behaviour is by far the best
way to ascertain this• The analytics company took all data and
monitored trends on – purchasing patterns within concept groups– demographic profiles– number of purchases– average time between repeat purchases– average spend– etc
The Result - A Summary
• Two models were produced • This is based on likelihood to buy plus
potential to spend• Used together they ensure best
response/sales rates • This means increase in sales for Boots• Plus they ensure the best ROI is
generated for the supplier
Affinity ModelPrimary TertiarySecondary
Hot Prospects
CoolestProspects
Warm Prospects
Primary Primary AffinityAffinity
n Customers who have directly bought the promoted product in the past Customers who have directly bought the promoted product in the past 12 months, ranked by frequency and total spend12 months, ranked by frequency and total spend
n Customers who have NOT bought promoted product but have bought Customers who have NOT bought promoted product but have bought associated products in the past 12 monthsassociated products in the past 12 months
SecondarySecondaryAffinityAffinity
n Customers who have a similar profile to the peer group of the productCustomers who have a similar profile to the peer group of the product
TertiaryTertiaryAffinityAffinity
AgeAge
GenderGender
SegmentSegment
LookalikesLookalikes
e.g 25-40e.g 25-40
e.g femalee.g female
e.g Cosmopolitane.g Cosmopolitan
MosaicMosaic e.g stylish singlese.g stylish singles
Share of Wallet Model
Previous spend =£9.60 Previous spend =£9.60 (High Water Mark) (High Water Mark)
Current Spend Current Spend = £4.80= £4.80
Customer XCustomer X
SOWSOW= 50%= 50%
Little previous spend, soLittle previous spend, soPeer Group Average = £4.60Peer Group Average = £4.60
Current Spend Current Spend = £1.60= £1.60
Customer YCustomer Y
SOWSOW= 33%= 33%
--
--
2 example customers SOW for Dove Shampoo2 example customers SOW for Dove Shampoo
The Model used in Value Mailings
• Offers are tailored to the individual based on their past transactions
• Each person gets a score for every offer available, with the top 8 products defined as their most suitable being selected
• This allows communications to be centred around ‘offers we know you like and some you want to try’
Finding offers
• 20 million coupons were required for first mailing
• Plus additional funding (to top up Boots budgets)
• Targeted both Boots Category teams and Suppliers
• Then cajoled, persuaded and bullied• The result - we generated 56 different
offers for the first Value mailing
The Process of Value Mailings Step 1
• All Offers, approx 60+ per value mailing are matched to the entire Boots Database
• The prime target audience is then identified, ie those who have the highest affinity to the offers available
The Process of Value Mailings Step 2
• The selected universe is then given a score for every offer available, based on the likelihood of them purchasing
• This produces millions of stats, which then need to be optimized and ranked
• To produce the top 8 offers for EVERY PERSON
The Personalisation of Value Mailings
• The essence of Value is that each person gets offers applicable to them
• To coincide with this, the rest of the mailing was personalised to produce a mailing tailored to each individual
• The personalised information includes:– Number of points available– Number of redeemed points in the last 12
months– Favourite store to shop in– Total Value of coupons– Total points available on promotion– Redemption ideas based on number of points
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