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Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al Kymia – Alchimia – Alkhimiya – Alchemy Confidential – proprietary of Alkimea - 2015© Introduction to big data activation in Retail January 2016

Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

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Page 1: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al Kymia – Alchimia – Alkhimiya – Alchemy

Confidential – proprietary of Alkimea - 2015©

Introduction to big data activation in Retail

January 2016

Page 2: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

2

Retailers and brands collect more and more data through loyalty programs anddigitalization

However, many company leaders are discovering that they have more data thanthey can effectively handle as significant technological and organizationalchallenges stand on their way to activate “Big Data”. The complexity of theinterfaces in the retail ecosystem often makes the organizational challengepredominant.

Alkimea helps retailers and brands to turn “Big Data” into “pragmaticsolutions for the business”

… to Turn Insight Into Gold

Page 3: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

3

Zyed Jamoussi Cédric Chéreau

• Master Degree in Engineering• 3 yrs. PWC• 6 yrs. Group Strategy & CRM at Yves Rocher• 7 yrs. at emnos (American Express group)

- Head of Insight Southern Europe- Tools & Analytics Development- Launched Insight Sharing (retailer FMCG)

• Master Degree in Business Administration• 2 yrs. Marketing and Supply Chain at LVMH• 2 yrs. Organization Consulting at Ellipsa• 9 yrs. at emnos (American Express group)

- Consulting Director- Launched Carrefour Group relationship- Launched US Office

The founders

Founders’ proven experiences with

Page 4: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

4

Retailers and brands collect more and more data through loyalty programs anddigitalization. Traces left by shoppers in their interactions with the retailersprovide information that is richer than traditional personal and declarative data

Shoppers are more and more pragmatic and price conscious. Online and mobiletechnologies makes comparison between retailers easier. Retailers who areirrelevant to them see their performance declining

Retailers are now fighting to build loyalty with their shoppers by personalizingtheir commercial relationship giving birth to “Customer Centric” promotionalcampaigns

Individualized Customer Centricity

Page 5: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

5

Customer centric campaigns are about switching the usual focus from Brand to Customer when dealing with supplier coupons

… to customer centric promotionsFrom brand centric CRM…

Offers and €€€

Campaign Campaign

BRANDS

BRANDS

Campaign

Campaign CampaignCampaign

Page 6: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

6

The concept is about pooling offers based on shopper affinity and allocating them on a “One to One” basis to drive the right behavior

Customers

You like thisYou may like

this

Offer pool

DIGITAL TRACES AND TRANSACTIONS

TILL LOG

Page 7: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

7

How would it look like at Retailer X ?One to one targeted customer centric campaigns

Reward

coupon

Store or category

coupon

Activation

coupon

Innovation

coupon

You save : up to 120€ !!

15€ OFF 200€

Store wide

-25%

-25%

-15€

-5€

-42€

X6

X6

-5€

-15€

DIGITAL ECOSYSTEM

NEWSLETTERS

Retailer X

Retailer X

Page 8: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

8

Such campaigns require a process that allows to scale offer sourcing and reduce campaign management complexity

Target selection

Target based offer

definition

Optimized offer

allocation

Customer and brand

performance measurement

• Which offers shouldbe sourced to develop Customers loyalty and share of wallet ?

• Who is a relevant target ?

• For which objectives ?

• How to allocate the best offers to each Customer to drive Reward and Activation ?

• Which channel is most suitable ?

• How does the performance compare to control ?

• How is the performance for each brand ?

Feedback EXEC

UTI

ON

Page 9: Introduction to big data activation in Retail - OECD.org 2_Jamoussi.pdf · Alchimia –Alkhimiya –Alchimie –Alchemy –Alquimia –Alchimia –Al Kymia – Alchimia –Alkhimiya

Alchimia – Alkhimiya – Alchimie – Alchemy – Alquimia – Alchimia – Al KymiaConfidential – proprietary of Alkimea - 2015©

AlkimeaTurning Insight Into Gold

9

A smart allocation process is key for the relevance of the program and its financial balance

Recommendation engine

Off

er p

oo

lC

ust

om

er

+

Off

er p

oo

l

Target customers

2 way relationship optimization engine

BEST

BEST

BEST

BEST

Optimized offer

allocation

Most relevant reward and activation

offers for each individual

Right balance between customer

relevance and brand performance