CxPA Webinar

Harness the power of unstructured data

to enhance customer experience

Barb Buettin, Director, CRM-Enterprise Information Management, Chico’s

Wilson Raj, Global Customer Intelligence Director, SAS

#sasci

Contents

Context for Unstructured Data

Data Strategy for Customer Experience

About Chico’s FAS

It’s All About the Data

A Study of Customers

Q&A

Organizations’ Use of Data

3

POLL QUESTION # 1

Which of the following are you currently collecting as

“unstructured” / “Big” data and/or using with

analytics today ?

A. Structured data (tables, records)

B. Semi-structured data (XML and similar standards)

C. Complex data (hierarchical or legacy sources

D. Unstructured data (text, audio, video)

E. Social media data (tweets, blogs, social platforms)

4

Customer-Centricity: Value, but Barriers

• 7 percent felt their organizations do “very well” at bringing

together useful customer, product and project data from all sources

and sharing it among product development, marketing and customer

service staffs

• 98 percent say “immediacy” within their organizations is

either a “somewhat-critical” or “mission-critical” priority

• 87 percent consider it “very important” to share near real-

time integrated data — if they had it — between product

management, customer service and sales in their organizations.

• 66 percent say their organizations either can’t bring together

customer, product and project data from all sources and share it or

are trying to share but are facing challenges.

5

Coveo Survey: 100+ execs in Argyle Executive Forum 2011 - Customer Care Leadership

Unstructured Data: A Perspective

• All data is “born”

unstructured

• Adding structure can

cause loss of valuable

information along the

way

• Think in terms of

“haggling data”

• Value of “haggling

data in terms of

customer insight

6

Types of Data in Your Business

7

Structured • Relational &

Legacy dB

• Spreadsheets

• Flat files w/defined

record formats

Semi-Structured • XML

• EDI documents

UnStructured • Web

• Wikis

• Documents

• Email/Messages

• Log files

• RSS feeds

• Multimedia

• Analyst Reports

• Journals

• Corporate filings

• Press mentions

Static • Internal docs

• Marketing

content

• Sales reports

• Social media

• Chat

• Ratings/Reviews

• Breaking news

Dynamic/Real-time • Customer call logs

• Customer service

notes

• Meeting notes

• Transcripts

Corp

ora

te

Inte

rnet

POLL QUESTION # 2

Are you able to capture unstructured data and

integrate with your marketing processes?

A. All or most of the time

B. Some of the time

C. When we can

D. Not currently able to do it

8

Value of Unstructured Data (… or any Data)

9

Connected Data Strategy for CxP

10

Sources: Work·Play·Experience I Forrester Blog--Kerry Bodine, April 2, 2012 | SAS

Rational needs Information,

Transaction, Service

Emotional needs Belonging, Identity, Aspiration,

Performance, Knowledge

Unstructured

Structured

Semi-structured CxP

POLL QUESTION # 3

Which of the following is NOT a Chico’s FAS Brand?

A. Chico’s

B. White House | Black Market

C. White House

D. Soma Intimates

E. Boston Proper

11

12

Who is Chico’s FAS

13

How we use marketing automation

Highlights

Segment Catalog Mailings and Differentiate Promotion Efforts for Maximum Impact

Make Midpoint Corrections

Bring Lapsed Customers Back to Chico’s at Triple the Success Rate of Previous Campaigns

Cross-sell Across Brands

14

Why Implement a New Solution?

10 year old technology on top of an extremely rich set of

data

– Huge missed opportunity!

“Locked” data model

– Inability to provide agile marketing or grow with the business

Lack of data integration

– Marketing is fluid, dynamic, and reactive with sometimes

unexpected unstructured data from unexpected sources

– Analytics was impossible

15

POLL QUESTION # 4

What is the biggest challenge you’re facing in your

marketing and customer experience efforts?

A. Extracting actionable insights from your data

B. Driving relevant personalized customer interactions

C. Measuring customer experience performance

D. Other

16

What are we looking for? Closing the loop on Direct Marketing

17

Customer Insight

-How do we better

understand our

customers and their

behaviors?

Marketing

Performance

- How can we drive

personalized

communications to our

customers?

Customer Interaction

- How can we measure

marketing efforts and

immediately act on the

results?

Strategic Support - Marketing

Customers – Who is she?

18

Competitive

Landscape

Online Behavior

Trade Area Local Markets

Demographic

Overlay

Strategic Support – Marketing

Cross Brand View of our Customers

19

Chicos’ FAS Customer

Cross Brand Pollination

Chico’s, SOMA,

WHBM, and Boston

Proper as Independent

Brands

Give her

the extras!

20

Our Data Systems and Vendor Environment

– Internal Customer

Data

–Online and Store

Shopping Behavior

–Planning & Allocation

–Workforce Scheduling

The future is in relating all

of the pieces to each other

in ways that are actionable

Customer

Enhanced

LoyaltyPreferences

Campaign

Customer

Response

Campaign

management

EventsLoyalty

management

CustomerCustomer

Enhanced

LoyaltyPreferences

Campaign

Customer

Response

Campaign

management

EventsLoyalty

management

–External Customer

Data (Abacus)

Strategic Support – Marketing

Results

Data Integration

– Fluid, Dynamic, Reactive FAST

– Enable enhanced loyalty programs (CRM ODS + SAS)

Analytics

– Analytical modeling for more precise communications (allows better

targeting)

– Predictive! What is likely to be her next purchase?

– Internal Cross-brand Prospecting

Targeting!

– Customer Intelligence • What is relevant to me?

• Who DOESN’T need an offer to respond?

– Item Brand Distinction – store versus Item

Personalization

– Location Callouts on specific collateral

– Thank You’s! from associate of most recent purchase

21

22

0

1

2

3

4

5

6

7

8

0 200 400 600 800 1000 1200 1400 1600 1800 2000

The World Is Changing Rapidly B

illio

ns o

f P

eople

World Population

Year

23

The Apparel Industry and Communication Technologies

Are No Exceptions 6000-3000 BC

Weaving

Wheel

1900’s 2000’s 1800’s 1700’s 1600’s 1500’s 1400’s 1300’s 1000’s -1100’s 1200’s

Spinning

wheel

Printing

press

Paper

Arabic

numerals

Writing

Abacus

Adding

machine

Telegraph

Braille

Typewriter

QWERTY

keyboard

Telephone

Light bulb

Automobile

Radio

Television

Computer

Integrated

circuit

Calculator

Micro-

processor

Ethernet

Internet

Mobile

phone

WWW

Flying

shuttle

Spinning

Jenny

Water frame

Mechanical

loom

Cotton gin

Jacquard

loom

Power loom

Sewing

machine

Safety pin

Synthetic

dye

Blue jeans

Ready-

made

clothing

Ready-

made shoes

Department

store

Zipper

Sunglasses

Polyester

Nylon

stockings

Bikini

Spandex

Coat hanger

Shopping

bag

Mall

Stocking

frame

Buttons Nano-Tex

Salmon-

skin leather

Luminex

Speedo LZR

Spider-web

silk

Woodblock

printing

Home

broadband

Commercial

VoIP

WiFi

Mobile 3G

WiMAX

Web 2.0

YouTube

Facebook

Twitter

Blackberry

HDTV

Multi-core

processing

iPod/iTunes

iPhone

iPad

Is there still a place

for brick and mortar

stores in this

increasingly digital

environment?

Supply Chain Actions Start With Customers

Traditional view of the supply chain – Merchandise planning

– Store clustering and assortment planning

– Logistics and distribution capabilities

Chico’s FAS view of supply chain – Put the right merchandise in the right store at

the right time

– Be there when she is there

“CUSTOMERS FIRST”

25

We’re Working to Better Understand Our Customers

INCOME NET WORTH

Vast majority of customers are baby

boomers

Customers are a

mix of Gen X, Y,

and Boomers

60% of customers

also shop Chico’s;

40% are Soma only

78% of customers are above U.S. median income

78% of customers

are above U.S.

median income

80% of customers

are above U.S.

median income

76% of customers are above U.S.

median net worth

53% of customers

are above U.S.

median net worth

71% of customers

are above U.S.

median net worth

AGE RANGE

Top customers shop and spend

several times more than an

average customer

Retention and reactivation of these

customers is paramount

Customers are shopping across

multiple channels differently

Identifying new customer shopping

trends to target high-potential

future loyalists

We’re Working to Better Understand Our Customers

27

Customer Behavior Clustering

• Clustering of customers into groups based on their shopping behaviors

– Customer spend

– Categories of products

– Lifestyle indicators

• Match back what we know internally about these customers

– Total Chico’s spend

– Loyalty and retention

– Outfitting vs. non-outfitting

– Geography

– Income

– Net worth

– Age

Book Worms

Comfort Seekers

Southern Value Hunters

Senior Development

Value Families

Chico’s Loyalist

Town & Country

West Coasters

Urban Chic’s

Affluentials

Bro

nze

Silver

Go

ld

28

Chico’s Cluster Comparison

Affluentials

Tend to live in the Northeast

More direct and multi-channel

Above average customer income

Shops and spends more than the

average customer

Spend proportionately more at

Chico’s in these categories:

– Collections

– Shorts

– Sweaters

Book Worms

Tend to live in the South

More outlet only

Below average customer income

Shops and spends less than the

average customer

Spend proportionately more at

Chico’s in these categories:

– Travelers

– Jewelry

– Accessories

29

Business Implications

• Which new customers have the greatest potential to

become our best customers in the future?

• Along which lines should we be stratifying our product

customizations for the greatest in-store benefit?

• What forms of individualized clienteling do our customers

want to experience when shopping with us?

• How do our customers want their marketing

communications from us to be customized?

Other Opportunities

POLL QUESTION # 5

Would you characterize the relationship between your

business units and IT as a strong, collaborative

partnership?

A. Strongly Agree

B. Agree

C. Somewhat agree

D. Disagree

31

Business and Technology Partnership

Key to Our Success

• Physical proximity to each other

• Alignment on strategic discussions and decisions

• Prioritization of work is for the greater good

32

Marketing Technology

Support

Continue the Conversation

Resources for Slideshare Viewers:

33

Check out this conclusions paper summarizing the discussion:

Ten Ways to a Customer-Centric, Data-Driven Business Strategy

• Register here: http://go.sas.com/bvza68

Engage on our blogs: Thought Leadership: The Knowledge Exchange

http://www.sas.com/knowledge-exchange/customer-intelligence

Marketing Practitioners’ Views: Customer Analytics Blog

http://blogs.sas.com/content/customeranalytics/

Follow us on Twitter:

@SAS_CI

http://twitter.com/SAS_CI