MASTERCARD ADVISORS INFORMATION SERVICES | MERCHANT Big Data Insights to Better Connect with your Customers May 2013 ANDY MANTIS GROUP HEAD | SVP, MERCHANT SOLUTIONS
MASTERCARD ADVISORS INFORMATION SERVICES | MERCHANT
Big Data Insights to Better Connect with your Customers May 2013 ANDY MANTIS GROUP HEAD | SVP, MERCHANT SOLUTIONS
2 ©2013 MasterCard - No reproduction or sharing without express written consent of MasterCard
Disclaimer
© 2013 MasterCard International Incorporated. All rights reserved. The information contained herein is the confidential information of MasterCard. This presentation may not be redistributed or reproduced, in whole or in part, without the prior written consent of MasterCard. This presentation contains information acquired from the MasterCard Data Warehouse which is comprised of transaction information provided by third parties (i.e. acquirers, and/or merchants) and hence may contain certain errors, omissions or inaccuracies from time to time. The presentation and the data herein is provided for illustrative purposes only; MasterCard shall have no responsibility for any inaccuracies, errors or omissions in any data, analyses or information provided herein which has been based upon data in the Data Warehouse or data otherwise provided by or on behalf of any third party.
Information Services for Merchants
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Agenda
•Evolution of the Customer Relationship •Need for Behavioral Understanding •A New Approach •Micro to Macro Insights •Behavioral Data in Action •Myths of Big Data •MasterCard Advisors Differentiation
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Big Data in Sports
Big Data for Athletes Big Data gives athletes extra edge at high-tech London Olympics – CareerMash
Big Data for Teams: New Baseball Tech Makes 'Moneyball' Look Like Little League – Business Insider Big Data for Fans: NBA Gives Basketball Nerds the Gift of Big Data- Mashable
…and now Big Data for Retailers
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Insight for Merchants
Knowledge of aggregated consumer segment spend both inside and outside of your locations delivers valuable insight for acquisition, loyalty and retention and strategic decisions.
MasterCard delivers this unprecedented 360-degree view to help you:
Understand your market
Benchmark your performance
Grow your customer base
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Evolution of the Customer Relationship
Interpersonal: 1 to 1
6
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Evolution of the Customer Relationship
Purchase Tracking
7
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Evolution of the Customer Relationship
Demographic Analysis
8
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Evolution of the Customer Relationship
Impersonal Relationships
9
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Evolution of the Customer Relationship
Impersonal Relationships
10
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Need for Behavioral Understanding
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Need for Behavioral Understanding
Unique behaviors?
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Need for Behavioral Understanding
Unique behaviors?
Brand affinity?
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Need for Behavioral Understanding
Unique behaviors?
Brand affinity? Time of day?
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Need for Behavioral Understanding
Unique behaviors?
Brand affinity? Time of day?
Distance of travel?
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Need for Behavioral Understanding
Unique behaviors?
Brand affinity? Time of day?
Distance of travel? Competitive spend?
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A New Approach
Macro Micro
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Macro Insights Drive Micro Trends
Sporting Goods sales has
outperformed the broader U.S.
economy 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13
Sporting Goods Y/Y Sales Growth U.S. Retail Y/Y Sales Growth excl. Auto and Gas
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Micro Insights Drive Macro Trends Ill
ustr
ativ
e
National 12%
State 8%
Local 15%
Macro trends can drive relative merchant performance Merchant Market Share
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National to Local Store Market Performance National
State
Location
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Competitors
32.5%
RANK #1 02903
02917
Merchant
22.7%
RANK #5
02920
02904
Develop Focused Marketing Efforts That Reach The Right Customers
• Identify areas where you
draw customers as well as
opportunities to attract new
customers.
• Market to these target
segments and measure results
over time.
02906
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Behavioral Data in Action
A retailer with an existing loyalty program wanted to identify opportunities for growth.
Primary Objectives: • Increasing customer spend • Gaining market share from competitors
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Behavioral Data in Action
MasterCard Account Spending In Industry
Total Industry
MACRO
Retailer Account Spending
MICRO
Methodology • Establish which customers have the largest
headroom opportunity • Evaluate the opportunity of Top Customers
and Acquisition Target Customers • Act on Acquisition Target Customers to drive
results
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Loyalty Segmentation
$$$$
$$
$
High Medium Low Not Bought
Total Customer Spend in Industry Total Customer Loyalty
to Merchant
Total Customer Spend in Industry
Total Customer Loyalty to Merchant
Methodology
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Loyalty Segmentation
$$$$
$$
$
High Medium Low Not Bought
Total Customer Spend in Industry
Total Customer Loyalty to Merchant
Non Top Customers
Top Customers
Identifying Segments
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Loyalty Segmentation
$$$$
$$
$
High Medium Low Not Bought
Total Customer Spend in Industry
Total Customer Loyalty to Merchant
Top Customers
Quantifying Opportunity
Acquisition Target Customers
Annual Spend At Merchant:
$91 Annual Spend at Competitive Set:
$722
Annual Spend At Merchant:
$527 Annual Spend at Competitive Set:
$381 Illus
trat
ive
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Behavioral Segmentation
Acquisition Target Customer:
Active Lifestyles
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Behavioral Segmentation
General Demographics
Age: 40+ Income: $75K+
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Behavioral Segmentation
Brand Affinities
Apparel Home Appliances
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Behavioral Segmentation
Related Category Spend
Tennis
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Behavioral Segmentation
Unrelated Category Spend
Entertainment
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Behavioral Segmentation
Channel Preferences
Propensity to buy online
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Behavioral Segmentation
360° Customer View
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Behavioral Segmentation
Top Customer: Everyday Spenders
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Behavioral Segmentation
General Demographics
Age: 40+ Income: 75K+
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Behavioral Segmentation
Brand Affinities
Hockey Equipment
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Behavioral Segmentation
Related Category Spend
Electronics
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Behavioral Segmentation
Unrelated Category Spend
Fuel
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Behavioral Segmentation
Channel Preferences
Growing propensity to buy online
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Behavioral Segmentation
360° Customer View
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Acquisition & Engagement
58% (Your Spend) 58%
(Your Spend) 42% (Competitor)
Growth Opportunity
We believe that this provides a new benchmarking metric to allow for a more detailed view of growth, relative to market
Targeted Campaign
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Acquisition & Engagement
58% (Your Spend) 58%
(Your Spend) 42% (Competitor)
KNOW ACT MEASURE
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Myths of Big Data
Myth 1: Raw data is enough.
Myth 2: All sources are created equal.
Myth 3: Big data breeds Big Brother.
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Why MasterCard is Uniquely Qualified
• 1.9 billion global cards.
• 160 million transactions/hour.
• Knowledge of aggregated, holistic consumer spend delivers key insights for acquisition, loyalty and retention.
• MasterCard delivers this unprecedented 360-degree view, from macro economic to micro segmented, spanning a full range of industries.
Driving business advantage through insight and foresight and engagement
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