Jason Nathan

The Multi Channel

ConsumerJason Nathan

Customers Exposed

October 2014

© dunnhumby 2014 | Confidential22

A Brief History of dunnhumby

© dunnhumby 2014 | Confidential33

© dunnhumby 2014 | Confidential44

We understand over 700 million customers

© dunnhumby 2014 | Confidential55

The proportion of web shoppers who have made grocery purchases online this year

10%

7%

7%

27%

10%

8%

33%

31%

11%

13%

Source: Planet Retail.

© dunnhumby 2014 | Confidential66

Insight enables us to understand and engagecustomers

CUSTOMER DATA

• Increased customer

lifetime

value

LONG TERM

CUSTOMER LOYALTY

• Data sources

CUSTOMER INSIGHT

• Basket segmentation

• Customer segmentations

• Customer DNA

ENABLES

• Enabling better business

decisions

• Building relationships with

customers

CUSTOMER

ENGAGEMENT

TO DRIVE

TO GROW

© dunnhumby 2014 | Confidential77

Every single one of these core principles is changing…

CUSTOMER DATA

• Continuous

• Promotes Advocacy

• Measured beyond

transactions

LONG TERM

CUSTOMER LOYALTY

• Richer Data Sources

CUSTOMER INSIGHT

• Strategic decision support

• Automated tactical output

• Predictive / Scenario

based

ENABLES

• Real Time Optimisation

• Highly differentiated in

store

• Personalised digitally

CUSTOMER

ENGAGEMENT

TO DRIVE

TO GROW

© dunnhumby 2014 | Confidential88

The fundamentals of the Shopping Trip remain unchanged

out of

store

remind

me

sales &

events

easy

rewards

no stress

respond

make me

look good

inspire

creativity

options

recognize

help

surprises

information

help

same

time

new

ideals

flexibility

connection

inspiration

selectgood

choice

feel

welcome

feel

supported

surprise

savings

suggestions

unexpected

rewards

save time

fix

problems

appreciate

me

flexibility

reward

loyalty

exceptional

service

suggest

ideas

ask my

opinion

appeal

flexibility

best

prices

interesting

range

save time

inform

flexibility

celebrate

savings

redeem

rewards

services

products

rewards

occasion

online

needs

segment

interests

fun

surprise

connect

simplify

curate

educate

delight

surprise

deals

selection

suggestions

new

products inform me

reward

comment

easy

search

buy reflectshopdiscover

day of

week

time of

day

time of

year

when

offline

what

how

where

who

lifestage missionin-store

lifestyle

behavior

© dunnhumby 2014 | Confidential99

Customers still take the same steps…

who

out of

store

remind

me

easy

rewards

no stress

respond

make me

look good

inspire

creativity

options

recognize

in-store

select

feel

welcome

feel

supported

unexpected

rewards

save time

fix

problems

appreciate

me

flexibility

reward

loyalty

suggest

ideas

ask my

opinion

appeal

save time

inform

flexibility

celebrate

savings

redeem

rewards

what

services

products

rewards

when

day of

week

time of

day

time of

year

occasion

online

offline

how

lifestyle

lifestage mission

needs

segment

interests

behavior

where

fun

surprise

connect

simplify

curate

educate

delight

surprise

deals

selection

suggestions

new

products

reward

comment

easy

search

surprises

information

help

connection

inspiration

suggestions interesting

range

help

new

ideals

good

choice

best

prices

flexibility

same

time

sales &

events

flexibility

inform me

surprise

savings

shopdiscover reflectbuy exceptional

service

© dunnhumby 2014 | Confidential1010

…but each step represents a touchpoint, of which there are more than ever before

© dunnhumby 2014 | Confidential1111

Mary, mum of 3,

is doing her

weekly grocery

online shop.

v

11

6.

Forget anything?

A Personalized Seamless

Multichannel Experience

Add items?

Bananas

v

v

At checkout, she gets a prompt that she did not order

one of her usual items. She adds it to her basket, and

places an order for click and collect the next day.

That night, she sees a new recipe

on a cooking programme. The

Tesco app on her smartphone

allows her to find the recipe and

easily add the ingredients to her

existing order.

The next day, she swings by

her nearest click and collect

store. On impulse she heads

into the store to pick up dessert

to go with dinner.

Walking past a new selection of store-brand

desserts, her smartphone buzzes with an offer to

try one item free for sharing the display with her

social network. She takes a picture and posts to

Facebook.

After posting, the coupon

automatically appears on

her phone, as she heads

to checkout with her

dessert and click and

collect items.

who need

shop online

remind

meflexibility

suggest

-ions

flexibilityconnectnotice

visit searchin-store

connect

social

share

notice

new

product

s

delight

pay obtainredeem

rewards surprise

deals

online

engage-

ment

selection

© dunnhumby 2014 | Confidential1212

out of

store

sales &

events

easy

rewards

no stress

respond

inspire

creativity

options

recognize

help

information

help

same

time

connection

inspiration

good

choice

feel

welcome

feel

supported

surprise

savings

suggestions

unexpected

rewards

fix

problems

appreciate

me

flexibility

reward

loyalty

exceptional

service

suggest

ideas

ask my

opinion

appeal

flexibility

interesting

range

save time

flexibility

redeem

rewards

services

products

rewards

occasion

online

lifestyle

needs

segment

interests

fun

surprise

connect

curate

educate

surprise

deals

selection

suggestions

new

products inform me

reward

easy

search

day of

week

time of

day

time of

year

when

offline

what

how

where

in-store

who

lifestage mission

new

ideals

celebrate

savings

flexibility

comment

surprises

make me

look good

best

prices

delight

behavior

select

save time

remind

me

inform

buy reflectshop

simplify

discover

By understanding the data we can know what drives behaviour at each step:

© dunnhumby 2014 | Confidential1313

The data generated by these touchpoints is a huge opportunity

What I See

/ Hear

Who I Know

How I

Decide

My Needs /

Preference

sWhat I LIke

Who I Am

Where

I Am

How I Shop

What I Buy

Clickstream

Media

Substitutes & Rejects

Product Attributes

Weather

Payment

Location – Micro & Geo

New derived “dna”

Recipes

Ratings

Call Centre

© dunnhumby 2014 | Confidential1414

• Time

• Point of entry

• Login details

• Device ID

• IP address

• Cookies

Clickstream is an under-used asset in the industry

14

• Shopping list

• Customer pref.

Transaction information not

captured by T-log snapshot:

• Add/remove from basket

• Details inc. offers

• Sequence

• Payment

• Browsing

• Searching

• Dwell times,

• Sequence

• Clicks

• Mouse-overs

What you actually

saw / unseen options:

• Content

• Prices

• Ranges

• Sequencing

• Ordering

Stored details

& session

details

Shopping

Details

Site Content

Details

Searching &

Viewing

Details

© dunnhumby 2014 | Confidential1515

Micro Locationing is a perfect example of the privacy / value tensions being played out today

14 Sensors!

Light sensor

Accelerometer

Gyroscope

Magnetometer

Barometer

Proximity

Touch screen

GPS

WiFi

Bluetooth

Microphone

NFC: Near Field

Camera (front)

Camera (back)

© dunnhumby 2014 | Confidential1616

The insight is clearly very valuable

Given: Grapes (3) --> Salad Mix (4)

100% Confidence Baked Sweet Goods (5) is visited next

© dunnhumby 2014 | Confidential1717

You can understand transition probabilities

Produce – Weekly Features 2.7%

Weekly Features – Produce 2.0%

In Store Traffic Flow based on Total Store Area Visits

How likely are shoppers

to go from one store area

to another?

© dunnhumby 2014 | Confidential1818

Measure effectiveness of in-store promotions & media

© dunnhumby 2014 | Confidential1919

But is the Customer Value Exchange good enough?

© dunnhumby 2014 | Confidential2020

To close: some other examples of new data and propositions

who

out of

store

remind

me

easy

rewards

no stress

respond

make me

look good

inspire

creativity

options

recognize

in-store

select

feel

welcome

feel

supported

unexpected

rewards

save time

fix

problems

appreciate

me

flexibility

reward

loyalty

suggest

ideas

ask my

opinion

appeal

save time

inform

flexibility

celebrate

savings

redeem

rewards

what

services

products

rewards

when

day of

week

time of

day

time of

year

occasion

online

offline

how

lifestyle

lifestage mission

needs

segment

interests

behavior

where

fun

surprise

connect

simplify

curate

educate

delight

surprise

deals

selection

suggestions

new

products

reward

comment

easy

search

surprises

information

help

connection

inspiration

suggestions interesting

range

help

new

ideals

good

choice

best

prices

flexibility

same

time

sales &

events

flexibility

inform me

surprise

savings

shopdiscover reflectbuy exceptional

service

© dunnhumby.com 2013 | Confidential21

COCA-COLA

PERU

Photobooth project encourages

Peruvians to smile

© dunnhumby.com 2013 | Confidential22

FETCH Personal buying app sources

lowest-priced garments

© dunnhumby.com 2013 | Confidential23

ORIGINAL

UNVERPACKT

Packaging-free supermarket opens

in Germany

© dunnhumby.com 2013 | Confidential24

MARK ONE &

FUSEPROJECT

Smart cup automatically detects

contents

© dunnhumby.com 2013 | Confidential25

WALGREENS Pharmacy chain debuts talking

prescription devices

© dunnhumby.com 2013 | Confidential26

WALMART Retailer's price comparison service

automatically reimburses shoppers

© dunnhumby.com 2013 | Confidential27

LA POLAR Retailer lets customers pay with a

fingerprint

© dunnhumby.com 2013 | Confidential28

FRESHDIRECT Grocery etailer and crowdfunding

site collaborate on food contest

© dunnhumby.com 2013 | Confidential29

OPTIMEYES Outdoor ads feature facial

recognition technology

© dunnhumby.com 2013 | Confidential30

MACY'S Department store launches cash-

free payments service

© dunnhumby.com 2013 | Confidential31

AMAZON Remote control facilitates smart

grocery shopping

© dunnhumby.com 2013 | Confidential32

KOKEN MET

AANBIEDINGEN

Mobile app generates recipes

based on supermarket discounts

THANK YOU !