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Retail & Data Driven Personalization
SARAH SchmanskyNielsen
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. | This artwork was created using Nielsen data.
SARAH SCHMANSKY, NIELSEN
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T DA ’S C NS E NE IS GETTING PERSONAL
Big data Artificial intelligence
Machine learning
Mobile connectivity Virtual & augmented reality
Cashless payments
New channels New missions New products
Sources: Nielsen U.S. Retail Consulting and Analytics analysis, 2017; Advanced Web Ranking Organic Clickthrough Rate Study, March 2018, global Google searches with commercial intent using data from 5,689,897 keywords and 50,719 websites.
I DISCOVER DIFFERENTLY
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MY BRAIN LIKES PERSONALIZED ADS PERSONALLY & CONTEXTUALLY RELEVANT VS. NON-PERSONALIZED
+40% STRONGER COGNITIVE
PROCESSING
Source: Nielsen Consumer Neuroscience case study; cognitive processing measured by pupil dilation All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
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Integrate 1st party and predictive modeling tactics across channels
Measure how each audience tactic, media, placement drives ROI and sales
Leverage an always-on learning algorithm to optimize automatically based on offline sales
RIGHT OFFER + RIGHT PERSON = 13x ROI
RESULTS 1 2 3
2.3 million INCREMENTAL PRODUCTS SOLD
13X+ ROI AND EFFECTIVENESS
Sources: Nielsen Marketing Cloud and Multitouch Attribution
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GROWTH OF SOCIALLY-CHARGED ADVERTISING
Source: Flash Report, Governance and Accountability Institute, 2017, CSR Report, Cone Communications, 2017
$2.0B
$120M
17x 20%
82%
4x
1,567% growth of the cause-related marketing industry between
1990-2016
4x growth in S&P Index companies that disclose Environmental, Social & Governance (ESG) information
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MY DEVICE CAN SHOP FOR ME VOICE-ENAB ED SH E S’ CHASES S
Source: 2017 U.S. Nielsen Voice Activated Device Survey (n=2,120). Amazon Echo includes Dot usage. Read as: Among Google Home owners who use their device to purchase goods and services, 48% said they buy household goods. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
48%
38% 36%
28%
42%
34% 29%
25%
HOUSEHOLDGOODS
FOOD FROMRESTAURANT
PERSONAL CARE SERVICES
GOOGLE HOME AMAZON ECHO
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ANTICIPATE MY NEEDS WITH DATA
Source: Rich Relevance All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
USER PROFILE
GENDER: Female
AGE: 25 years
BEHAVIOR: Purchases bananas weekly, purchases milk bi-weekly, purchases jam monthly
PRICE POINT: Cost Conscious
LAST PURCHASE: 5/2/18
• Identify how often the shopper buys a specific product.
• Remind to restock when the shopper could be running low.
• Recommend additional products and services using algorithms.
REPLENISHMENT
MY SHOPPING EXPERIENCE IS EVOLVING
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I WANT SHOPPING TO BE FUN Price & convenience are table stakes; sophisticated Digital Advocates value novelty & experience
U.S. SHOPPERS’ T EAS NS SH IN N INE
Source: Nielsen U.S. Digital Shopping Fundamentals, 2017
n= 385 774 436 945 548 229 1151
35%
45%
55%
65%
75%
85%
TECHNOLOGYAVERSE
DIGITALRELUCTANTS
NON-PLANNER TECH SAVVYVALUE SEEKERS
GRAB AND GO RESEARCHERS DIGITALADVOCATES
PRICE / VALUE CONVENIENCE VARIETY/NOVELTY EXPERIENCE
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I WANT TO INTERACT WITH YOUR BRAND
Sources: sephoravirtualartist.com and ulta.com/app. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
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I WANT A PERSONAL STORE
Source: PR Newswire, Lowe's Vision In-Store Navigation screen shot. All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
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I WANT SEAMLESS A CHECKOUT
Source: Yonhap - A visitor visits the newly opened 7-Eleven Signature store at the Lotte World Tower; GIF by Tech in Asia All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
Source: Nielsen Retail Measurement, Nielsen Shopper Trends (62 Markets excluding the U.S.), Nielsen global e-commerce forecast 2016-2022
I BUY DIFFERENTLY
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6.3% UK
1.4% Germany
1.6% Italy
1% Spain
1.8% Switzerland
2.5% Sweden
1% Belgium
2% Denmark
2% Turkey
5.6% USA
2% Canada
<1% Argentina
1% Brazil
2% Mexico
18% China
5.6% Taiwan
3.1% Australia
1% Russia
2% Malaysia
2.9% New Zealand
<1% India
3% Singapore
1% Indonesia
3.4% Japan
I’ E B ACIN E-COMMERCE 6-7% of global FMCG sales
<1% Colombia
<1% Portugal
1% Norway
0.7% UAE
<1% South Africa
6.1% France 20%
South Korea
Sources: 2017 estimates based on Nielsen Retail Measurement Services, Nielsen Consumer Panel Services, Nielsen E-Commerce Measurement, Leading Industry Sources
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NEARBY PICKUP PERSONALIZES MY OMNICHANNEL EXPERIENCE
• 4,000 points of collection • 5% market share • 8% value sales growth • 22% contribution to
FMCG growth in 2017
Sources: Nielsen France Trade Dimensions
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E-COMMERCE GROWTH BY DEPARTMENT
I’ EAD T B PACKAGED GOODS ONLINE
Sources: Nielsen U.S. Total Store Report, 52 weeks ending Sept 29, 2018
E-COMMERCE IN-STORE
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YET IN-STORE, I WANT FRESH, PREPARED AND CUSTOMIZABLE
U.S. IN-STORE $ SALES GROWTH VS. YEAR AGO:
Value-Added Vegetables: +7%
Prepared Deli: +3%
Value-Added Seafood: +3%
Prepared Bakery: +9%
Prepared Dairy: +10%
Fresh Meat Kabobs: +26%
Prepared Produce: +56% Source: Nielsen U.S. retail measurement Total Food View, 52 weeks ended April 21, 2018; image via Whole Foods & nypost.com All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
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YET IN-STORE, I WANT FRESH, PREPARED AND CUSTOMIZABLE
U.S. IN-STORE $ SALES GROWTH VS. YEAR AGO:
Value-Added Vegetables: +7%
Prepared Deli: +3%
Value-Added Seafood: +3%
Prepared Bakery: +9%
Prepared Dairy: +10%
Fresh Meat Kabobs: +26%
Prepared Produce: +56% Source: Nielsen U.S. retail measurement Total Food View, 52 weeks ended April 21, 2018; image via Whole Foods & nypost.com All trademarks, product imagery, service marks, trade names, and logos are the property of their respective owners.
This artwork was created using Nielsen data.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
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PERSONALIZE THE SHOPPER JOURNEY
Take advantage of new technologies to deliver the right message and offer,
through the right medium, to the right person
Focus on mobile to change the way you personalize the brand/store experience.
Embrace frictionless payments to improve the shopping journey
Embrace consumers’ disloyalty & prioritize value-added,
customizable services and products across your
omnichannel presence
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LOYALTY REQUIRES AN OUTSIDE-IN VIEW Demographics
Retailer engagement (app, email, web)
Spend at your stores
Trips to your stores
Discount sensitivity at your stores
Demographics
Brand engagement (app, email, web)
Brand performance across stores
Category trends across stores
RETAILER VIEW Demographics
Retailer engagement (app, email, web)
Spend at your stores
Trips to your stores
Discount sensitivity at your stores
Demographics
Brand engagement (app, email, web)
Brand performance across stores
Category trends across stores
MANUFACTURER VIEW Demographics
Retailer engagement (app, email, web)
Spend at your stores
Trips to your stores
Discount sensitivity at your stores
Demographics
Brand engagement (app, email, web)
Brand performance across stores
Category trends across stores
CONSUMER-CENTRIC VIEW
Channel preferences
Spending across the rest of the market
Trip purposes
Lifestyle & Personality
Media behavior
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Real-time optimization of personalized programs FUTURE OF CUSTOMER INTELLIGENCE
MEASUREMENT
ENRICHMENT
ACQUISITION
OFFER OPTIMIZATION & COLLABORATION
Department Missions Share of Wallet
ROI Sales Lift
Personalize Analyze Collaborate
Targeting Audience
• Less personal service
• ~100,000 products/store
• A 10-minute drive
• Self-service personalization
• Millions of products
•
• Personal service & expertise
• Limited assortment
• Around the corner
• Highly personal experience • Infinite assortment • Everywhere you are
This artwork was created using Nielsen data.
Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
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