The Retail Data Dilemma - eMarketer · The Retail Data Dilemma: Creating CMO/CIO Synergies To Achieve These Results, Tie The Value Of Data Insights To Execution Speed 14 High Value

© 2019 eMarketer Inc.

Webinar: The Retail Data Dilemma

Creating CMO/CIO Synergies

Tech Talk Webinar

Paul Verna

VP, Multimedia

eMarketer

Presented by

PRESENTER MODERATOR

William Bonnell

Retail Customer Engineering Lead

Google Cloud

Mahmoud Arram

Co-Founder & CTO

Bluecore

PRESENTER

© 2019 Bluecore | Confidential and Proprietary

The Retail Data DilemmaCreating CMO/CIO Synergies

The Retail Data Dilemma: Creating CMO/CIO Synergies

Today’s Speakers

3

William BonnellRetail Customer Engineering Lead

Google Cloud

Mahmoud ArramCo-Founder and CTO

Bluecore

The Retail Data Dilemma: Creating CMO/CIO Synergies 4

The retail industry

continues to advance

digitally.

By 2020, half of retail customer service requests

will be conducted through conversational AI apps*

Source: *Gartner, Use Cases Harness Emerging Technologies to Deliver Delightfully DisruptiveCustomer Experiences, **Forrester Analytics: Online Fashion Retail Forecast, 2017 to 2022, November 28, 2018, ***Accenture

By 2023, digital touchpoints will impact 58% of

retail sales in the US**

By 2025, the digital wave expected to add

cumulative $2.95T in value to the retail industry***

https://www.gartner.com/document/3863563?ref=ddrec&refval=3877092

https://www.accenture.com/_acnmedia/PDF-52/Accenture-Strategy-DD-Painting-Digital-Future-POV-v2.pdf#zoom=50


Source: Forbes Magazine “How Much Data Do We Create Every Day? The Mind-Blowing Stats Everyone Should Read” May 2018

of the world’s data

was created in the last

24 months, yet less

than 1% is analyzed

90%

This is resulting in an explosion of data.

https://www.forbes.com/sites/bernardmarr/2018/05/21/how-much-data-do-we-create-every-day-the-mind-blowing-stats-everyone-should-read/#45b1cf9760ba


While this data is collected, it’s often not actionable

in a holistic fashion.

Source: KMC ADD Sources

separate tools

are used by the

average retailer

for marketing

activities

30

Inventory

management

DistributionBilling &

purchases

Content

marketing

Point of

sale

Social MediaEmail

management

CRM systemsAd

campaigns

Customer

service

Web & app

analytics

Loyalty

programs


The partnership between IT & Marketing is more important than ever before.


Google is working with retailers to address these

challenges.


As well as partners, like Bluecore.


Framework Data Model Execution

10

The solution begins with 3 critical steps...

Create a common framework you can use

to discuss data

Build a data model based on the framework

Execute towards marketing goals


Getting marketing and IT to speak the same language…

11


In the World of

the CMO…

12


Key Marketing Results Are Created Based On Company Objectives

13

Company Objective:

Increase revenue by $1MM

Marketing Result #1:Increase email revenue by

$200K

Marketing Result #2:Decrease unsubscribes by 10%

Marketing Result #3:Reduce customer churn by 5%

…


To Achieve These Results, Tie The Value Of Data Insights To Execution Speed

14

High Value

Mid Value

Low Value

DAYS

SECONDS

Which customers

are about to churn?

Which customers

are deviating from

their buying cycles?

Which products

should I put on sale?

Which customers

are at risk?

Who are my high

value customers?

Which products are

hidden gems?

What

recommendations

should I show in

email?

What is the next

most likely product

this customer would

buy?

Which products

should I move via

digital channels?


Then boil it down to a set of execution capabilities to relay to IT

15

DAYS

SECONDS

Predictive Segmentation of Customers

Segmentation / Triggers Based on Behavior or Catalog Changes

Just in Time Product Recommendations


In the World of the CIO…

16


Retail Data is Complex…

17

Merchandising Products Customer & Catalog Behavior

Opt in/out lists Customer Attributes ID Maps

Store Locations etc. Offline Purchases APIs

OCCASIONAL PERIODIC REALTIMEP

RO

PR

IETA

RY

LIST

SC

OM

MER

CE

STR

UC

TUR

ESPEED


Overlaying the Technology Stack

18

Merch Tools Commerce Platform + Recs Analytics

ESP + CRM ESP DMP et al

Internal / IT POS SystemsAPI Management

OCCASIONAL PERIODIC REALTIME

PR

OP

RIE

TAR

YLI

STS

CO

MM

ERC

E

SPEEDST

RU

CTU

RE


Marketing Stack Specialization

19

Merch Tools Commerce Platform + Recs? Analytics

ESP + CRM ESP CDP / DMP?

Internal / IT POS SystemsAPI Management


RO

PR

IETA

RY

LIST

SC

OM

MER

CE

STR

UC

TUR

E



The Four Key Components

Catalog Behavior

Active List Customer Attributes


RO

PR

IETA

RY

LIST

SC

OM

MER

CE

SPEEDST

RU

CTU

RE


The Commerce Platform Data Model

Orders Customers

Products


The Site Analytics Data Model

Pages

Events

Visitors


The Site Analytics Data Model

Contacts Lists

Profile Dat

Profile Data Profile Dat

Supplemental

Data


There is no common data model.

25


The Commerce Platform Data Model

Commerce Platform

Data Warehouse

ESP

RecoEngine

Feedback Loop

Systems People

MARKETING OPS

DATA ANALYSTS

IT & OFFICE OF CIO

ESP VENDOR

SYSTEMS INTEGRATORS

MANAGEMENT CONSULTANTS


No wonder insights -> execution is hard!

27

63%


A different approach

28


The Unified Retail Data Model






Segment, Then Personalize; Using The Same Model!

❶Products that are newly merchandised

❷Customers with a high affinity to that

category but haven’t purchased

❸Who have a high CLV in the past 3 days

Find:


Interrogating The Model For Recommendations

For this Customer:

Give me the absolutenext best purchase

products

Sorted by margin.


Bringing data and execution together

34


To Enable Personalization At Scale…


Key Takeaways

36


The Bottom Line

Insights have different costs vs execution value and timeline.

Prioritize to meet your goals.

Model your domain first, then transform your data into it.

This creates a shared abstraction for marketing and IT.

To meet/exceed goals, retailers need data and execution in

the same system

© 2019 eMarketer Inc.

Tech Talk WebinarQ&A Session

Paul Verna

VP, Multimedia

eMarketer

Presented by

PRESENTER MODERATOR

William Bonnell

Retail Customer Engineering Lead

Google Cloud

Mahmoud Arram

Co-Founder & CTO

Bluecore

PRESENTER

Webinar: The Retail Data Dilemma—Creating CMO/CIO Synergies

You’ll receive an email to view the slides and full recording from today’s presentation.

You can register for upcoming Tech Talk and Meet the Analyst Webinars at emarketer.com/webinars

May 30 | Location Intelligence: How Marketers Can Adapt to The Evolving Privacy and Data Landscape

Be sure to also check out eMarketer’s “Behind the Numbers” podcast for daily, freewheeling conversations

about the ways digital is transforming media, marketing, business and even life. Visit

emarketer.com/articles/topics/emarketer-podcast

Documents

The Retail Data Dilemma - eMarketer · The Retail Data Dilemma: Creating CMO/CIO Synergies To Achieve These Results, Tie The Value Of Data Insights To Execution Speed 14 High Value