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5 Ways to Boost Holiday Marketing Revenue with Big Data Rusty Warner, SVP Marketing September 17, 2013

5 ways to boost holiday marketing revenue

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Page 1: 5 ways to boost holiday marketing revenue

5 Ways to Boost Holiday Marketing Revenue with Big Data

Rusty Warner, SVP Marketing

September 17, 2013

Page 2: 5 ways to boost holiday marketing revenue

Introductions

Rusty Warner

Senior Vice President of Marketing

SDL Campaign Management & Analytics

@rustywarner

Page 3: 5 ways to boost holiday marketing revenue

Remember when marketing during the holiday season was a little less complicated?

Page 4: 5 ways to boost holiday marketing revenue

Technology has changed all of that!

Page 5: 5 ways to boost holiday marketing revenue

Holiday Shopping Preferences

In-Store

On-Line

US

UK

51%

49%

40%

54%

Source: SDL Report: Preferences on Holiday Shopping Experiences, December, 2012

Page 6: 5 ways to boost holiday marketing revenue

Holiday Shopping Preferences

Source: SDL Report: Preferences on Holiday Shopping Experiences, December, 2012

Why Shop In-Store?

Why Shop On-Line?

US Respondents UK Respondents

Evaluate Products 75.1% 44.5%

No Shipping Costs 52.3% 39.2%

In-Store Discounts 48.6% 39.0%

US Respondents UK Respondents

Avoid Crowds 59.7% 28.6%

Home Convenience 52.5% 30.9%

On-Line Discounts 38.2% 36.8%

Page 7: 5 ways to boost holiday marketing revenue

Q Which resources do you use to research gift purchases?

Check all that apply.

1. On-Line Search (e.g., Google, Yahoo)

2. In-Store

3. Retailer Website

4. Facebook

5. Pinterest

Interactive Moment

Page 8: 5 ways to boost holiday marketing revenue

Holiday Shopping Preferences

Source: SDL Report: Preferences on Holiday Shopping Experiences, December, 2012

Most Influential Sources

Least Influential Sources

US Respondents UK Respondents

On-Line Search 49.0% 42.8%

In-Store 43.2% 61.8%

Retailer Website 39.1% 60.5%

US Respondents UK Respondents

Facebook 3.9% 8.2%

Pinterest 2.3% 2.3%

Twitter 0.75 2.6%

Page 9: 5 ways to boost holiday marketing revenue

How can marketers keep pace with individual customer preferences?

• Understand customers with analytics

• Engage customers with relevant offers

• Orchestrate cross-channel communications

Page 10: 5 ways to boost holiday marketing revenue

5 Deliver Consistent

Brand Messaging

Across All Channels

4 Acquire and Retain

More Customers

3 Create More Effective

Marketing Strategies

2 Drive Up-Sells

and Cross-Sells

Optimizing engagement begins with customer insights…

1 Boost Multi-Channel

Conversions

Page 11: 5 ways to boost holiday marketing revenue

• Retail TouchPoints Cross-Channel Analytics Award 2012

• Smart Card Asia Multi-Channel Retailer of the Year 2013

• Australian Retail Awards Multi-Channel Retailer 2013

Specialty Fashion Group 1 Boost Multi-Channel

Conversions

Page 12: 5 ways to boost holiday marketing revenue

• eDM open rate uplift of 12%

• eDM click-through rate increase of 44%

• From 32.4% to 45.7% in email member contribution to sales

• Average campaign ROI of more than 1,800%

• 2,200% ROI on most recent 200 eDM campaigns

Specialty Fashion Group

“Data is a critical component of our business, but too much or erroneous

data can be detrimental to our customer relationships. Working with SDL,

we are able to better understand our customer information and, as a

result, deliver promotions and information through the right channel at the

right time.”

Alison Henriksen, CFO of SFG

1 Boost Multi-Channel

Conversions

Page 13: 5 ways to boost holiday marketing revenue

Q How much more life-time value is generated by a customer

active in multiple channels versus one channel?

1. 50%

2. 100%

3. 200%

4. 300%

5. 400%

Interactive Moment

Page 14: 5 ways to boost holiday marketing revenue

Specialty Fashion Group

Page 15: 5 ways to boost holiday marketing revenue

Dave & Busters 2 Drive Up-Sells

and Cross-Sells

• 60 retail venues

• Interactive entertainment

• Food and beverage service

Page 16: 5 ways to boost holiday marketing revenue

2 Drive Up-Sells

and Cross-Sells

• $52 million in additional sales compared to only $2 million for

non-targeted emails over a one-year period

• 13 times greater sales for registered members: $38.50 per

customer versus $2.85

• Double email sales contribution since program inception

Dave & Busters

Solution Implemented by

Page 17: 5 ways to boost holiday marketing revenue

3 Create More Effective

Marketing Strategies

• Consolidation of transaction data and

customer data by delivery zone

• Propensity models to identify best

options in different delivery areas,

and best days for special offers

• Deeper customer understanding for

higher revenues from up-sell items

such as garlic bread, chicken wings,

desserts and beverages

International Pizza Franchiser

“You better cut the pizza in four pieces

because I'm not hungry enough to eat six.”

- Yogi Berra

Page 18: 5 ways to boost holiday marketing revenue

• 12% uplift compared to usual store promotions

• Total increase in eCommerce sales of 46.3% in 2012

• Mobile sales increase of 187%

International Pizza Franchiser 3 Create More Effective

Marketing Strategies

Page 19: 5 ways to boost holiday marketing revenue

4 Acquire and Retain

More Customers

• Individually tailored emails to existing and prospective

customers

• Personalization for simple as well as complex multi-channel

communications

• Overall goal: improve the shopping experience

European Electronics Retailer

Page 20: 5 ways to boost holiday marketing revenue

Q What contributes most to a positive shopping experience?

Choose your top 3.

1. Product Quality for Price

2. Holiday Sales / Discounts

3. Good Product Selection

4. Sales Associates Available

5. Free Shipping / Easy Returns

Interactive Moment

Page 21: 5 ways to boost holiday marketing revenue

Holiday Shopping Preferences

Source: SDL Report: Preferences on Holiday Shopping Experiences, December, 2012

Product Quality for Price

Holiday Sales / Discounts

Good Product Selection

Sales Associates Available

Free Shipping

Easy Returns

Page 22: 5 ways to boost holiday marketing revenue

5

• On-line and telephone orders for delivery

• Early adopter for SoLoMo strategy

• Consistent messaging across 6 brands

Gift & Floral Retailer Deliver Consistent

Brand Messaging

Across All Channels

Page 23: 5 ways to boost holiday marketing revenue

Conclusions

• Leverage Big Data to boost

retail revenues during the

holidays and throughout

the year

Page 24: 5 ways to boost holiday marketing revenue

5 Ways to Boost Holiday Marketing Revenue with Big Data Rusty Warner, SVP Marketing

September 17, 2013

Thank You!