1 24 X 7 Retailing Is it Working? Peter.Charness@Manthansystems .com
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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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The Balance is Shifting - 200 Years of Retail
Merch Mktg
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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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Dramatic Change
The World We’re Leaving Behind
• Chain Level Assortments• Chain Level Pricing• A Few “Versions” of
Flyers• Mass Email• The Product Was the Sell
The New Reality
• Consumer Driven Product• Remix by Customer
– Stores– Web Experience– Pricing
• Time/Proximity/Attribute Based Offers
• Selling Customers “a few” at a time
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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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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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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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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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3 T’s Framework Measuring Success
Thinking
Talking
Transacting
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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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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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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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MeasurementThinking = 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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WSJ Today
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MeaurementTalking - VFS• Social Widgets
– Volume– Frequency– Sentiment
• Tweets, Reviews, Likes, Blogs, Searches
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MeasurementTransacting – Recording the Sale – New Dimensions
• Who Why
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3 T’s Framework – Why did it Work?
Thinking• Page Views• Search• Clicks
Talking• Volume• Frequency• Sentiment
Transacting• Who?• Why?
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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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New Methods for Information Delivery
• Packaged Solutions!• Aggregation• Exception Based Reporting• Alerts• Real Time Data
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Is it Working? Promotions/Campaigns
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Promotional Analytics
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Customer Analytics
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Questions?
• www.manthansystems.com