Collaborating   to  Win  with  Customer  1st Promotions

Howard  Langer,  Global  Capability  MD  – Price  &  Promotions  

dunnhumby

3 ©  dunnhumby  2015    |    Confidential

The  benefits of  a  global  view

$500  BILLIONRETAIL  SPEND

800  MILLIONCUSTOMERS   GLOBALLY

2,000EXPERTS

©  dunnhumby   2015    |    Confidential4

PARTNER  VALUE  CREATIONPROPOSITION:  grow  like  for  like  sales  and  net  margin   via  better  decisions  throughout   the  business

dunnhumby’s  “Win  Win  Win” approachdunnhumby  Approach

©  dunnhumby   2015    |    Confidential5

INSIGHTS  TO  SUPPLIERSPROPOSITION:  partner  to  provide  the  unique  customer  data  asset  to  suppliers  through  customer  reporting  and  analysis  service

PARTNER  VALUE  CREATIONPROPOSITION:  grow  like  for  like  sales  and  net  margin   via  better  decisions  throughout   the  business

dunnhumby’s  “Win  Win  Win” approachdunnhumby  Approach

©  dunnhumby   2015    |    Confidential6

INSIGHTS  TO  SUPPLIERSPROPOSITION:  partner  to  provide  the  unique  customer  data  asset  to  suppliers  through  customer  reporting  and  analysis  service

MEDIA  TO  SUPPLIERSPROPOSITION:  partner  to  provide  targeted  communications  (statement  and  interest  mailings  etc.)  and  in  store  media  to  suppliers

PARTNER  VALUE  CREATIONPROPOSITION:  grow  like  for  like  sales  and  net  margin   via  better  decisions  throughout   the  business

dunnhumby’s  “Win  Win  Win” approachdunnhumby  Approach

©  dunnhumby   2015    |    Confidential7

“BIG  DATA”(e.g.  digital  media  exposure  data)

SHOPPER  DATA

NEW  INSIGHT  DATASET

Big  data  and  shopper  dataCustomer  Science

8 ©  dunnhumby  2015    |    Confidential

How  Important  are  Promotions  to  Consumers?

2%

8%

9%

9%

10%

26%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

EA S E

RELAT IO NSHIP

R EWA RDS

P ROMOT IONS

P R IC E

RA NGE  A ND  LAYO UT

A F F IN I TY

Drivers  of  Customer  Centricity:  Grocery  Retail  – France,  Oct  2015

9 ©  dunnhumby  2015    |    Confidential

Source:  The  Nielsen  Company  2015

OF  PROMOTIONS  GLOBALLYDON’T  BREAK  EVEN

Promotions  aren’t  working…

10 ©  dunnhumby  2015    |    Confidential

Source:  The  Nielsen  Company  2015

OF  PRICING  INITIATIVES  ARE  ONLY  ‘SOMEWHAT’  EFFECTIVE

OR  ‘NOT  EFFECTIVE  AT  ALL’  

Source:  RSR  Pricing  2015:  Learning  To  Live  In  A  Dynamic,  Promotional  World

OF  PROMOTIONS  GLOBALLYDON’T  BREAK  EVEN

Pricing  isn’t  either….

11 ©  dunnhumby  2015    |    Confidential

How  are  we  doing?

Dale  Hagemeyer,  POI…

“Progress  on  Promotional  Effectiveness  has  been  anaemic  over  the  last  decade”

12 ©  dunnhumby 2015    |    Confidential

Follow  the  vendor

Follow  the  competitor

13 ©  dunnhumby  2015    |    Confidential

Global  Promotions  Trends

ChinaUK

LatAm

US

France

%  Sales  on  Promotion

14 ©  dunnhumby  2015    |    Confidential

GPA  in  Brazil

15 ©  dunnhumby  2015    |    Confidential

But  here  we  are….