REACHING RELEVANT AUDIENCES MORE EFFECTIVELY THROUGH BEHAVIORAL TARGETING AND PERSONALIZATION
MILLENNIUM ALLIANCE
JUNE 2015
Greg Revelle Best Buy
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 2
AGENDA
1. INTRODUCTION + PERSONAL JOURNEY
2. SHIFTING MINDSET FROM MORE DATA TO THE RIGHT DATA
3. WHAT WE’VE LEARNED
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I MOVED FROM FORT LAUDERDALE TO MINNEAPOLIS TO BECOME CMO OF BEST BUY… IN NOVEMBER…
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FLORIDA GREG • Married renter with kids and HH net worth of $25K - $50K • Likely to purchase consumer electronics, likes to read and travel and subscribes to
magazines and enjoys sports, specifically fishing
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 5
MINNESOTA GREG • Married home owner with HH net worth of $750k+; unknown if children in the household • Likely to purchase consumer electronics, specifically home audio, early adopter (home
connections) DSLRs, and appliances; no known hobbies
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TWO CENTRAL INGREDIENTS TO PERSONALIZATION
UNKNOWN WELL KNOWN
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UNDERSTANDING
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WE PURCHASED A NEW HOUSE AND NEEDED TO OUTFIT OUR NEW HOME…
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IN EARLY APRIL I WASN’T QUITE IN THE MARKET…
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SAMSUNG GALAXY 6 PRE-ORDER…
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LOOKING AT SOME NEW DEALS…
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RECEIVED BEHAVIORAL TRIGGERS AFTER BROWSING ON BBY.COM
Day
1
Day
3
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RETARGETING ADS I SAW ONLINE AFTER LEAVING BBY.COM
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ON APRIL 13TH I BOUGHT A REMOTE, RECEIVER, AND HIGH DEFINITION TELEVISION
Logitech Universal Remote High Definition TV Home Theater Receiver
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 14
WE SEND A CROSS SELL TO DRIVE ACCESSORIES IMMEDIATELY POST PURCHASE
Day
2
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WE OFFER HELP TO GET YOU UP AND RUNNING
Day
3
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THEN WE SEND CONTENT TO PROVIDE INSIGHT INTO HOW TO BUILD OUT THE EXPERIENCE
Day
14
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AND NOW WE ARE TRYING TO SOLICIT ANOTHER SIGNAL
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TO BRING PERSONALIZATION TO LIFE REQUIRES A CONSISTENT SEGMENTATION FRAMEWORK
PERSONA Long Term Interests
PURCHASE OCCASION Temporal Need State
PRODUCT PROPENSITY Near Term Likely to Purchase
• Best Buy utilizes three levels of segmentation
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 19
CUSTOMER DATA SEGMENTATION
CUSTOMER
• First / Last Name • Physical Address • Email • Phone
ATHENA
KNOWN CUSTOMERS
ONLINE IN-STORE
LOYALTY PROGRAM
SERVICES
MOBILE 3RD PARTY
PERSONA Brand Target (Default)
Early Adopter (Latest Tech)
Deal Seeker (Price Sensitive)
Health and Fitness Guru
Parent with Young Kids
Entertainment Guru (Music and Movies)
Cooking Aficionado
Automotive Guru
Audiophile
Gamer
Digital Photography Enthusiast
Sports Watching Enthusiast
Fashion Aficionado
Travel Guru
PURCHASE OCCASION
Purchasing (Default - all else)
Upgrading
Buying a Gift
Moving
Having a Child
Newly Married
Newly Single
A Recent College Grad
A Recent Empty Nester
Newly Retired
A New Driver
Remodeling and Needs Renewing their Cell Phone Contract
Awaiting a New Product Release
Replacing Printer Ink
Celebrating a Birthday
PRODUCT PROPENSITY
Cross Category Deal (Default) TV + Home Theater Computers Tablets Cell Phones Camera Camcorder Audio Car Electronics + GPS Video Game Consoles Video Games Movies Music Health and Fitness Small Appliances Major Appliances Smart TVs Printers Gaming Consoles iPad DSLR Headphones GPS Car Electronics Car Audio Xbox One Games PS4 Games All other Games Refrigerator Washer/Dryer
SEGMENTATION FRAMEWORK
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SOPHISTICATED INFRASTRUCTURE INVESTMENT POWERS BEST BUY’S PERSONALIZATION
CUSTOMER DATA
In addition to increasing content production we are investing in taxonomy and content management to ensure we have the right message at the right time.
Multiple data environments for analytics and modeling and a big data platform to enable real-time decisions and customer triggers.
CONTENT
Connect disparate systems to a centralized customer service and migrate legacy data. • POS • Loyalty • Service contracts • BestBuy.com • Digital software • Customer Care • Best Buy Mobile
ANALYTICS
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SHIFTING MINDSET FROM MORE DATA TO THE RIGHT DATA IN PAID MEDIA
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CUSTOMER DATA SEGMENTATION
PURCHASE FUNNEL 3RD PARTY DATA 1ST PARTY DATA
People interested in computers
People considering buying a computer
Little to no 3rd party data is used for these objectives
Awareness/ Prospecting
Consideration
Intent
Purchase
Use/ Retention/
Love
Little to no 3rd party data is used for these objectives
People who need to replace their computer
People considering buying a computer
People considering a specific computer
People who purchase a computer and need accessories or services
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 23
WHEN WE ARE ABLE TO ACCURATELY IDENTIFY A PERSON, PERFORMANCE IMPROVES
100
155 190
356
537
People interested in CE but did not visit BBY.com
Ret
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Inve
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• Good: Data we control is more accurate than what we can buy from others • Bad: Scaling our 1st party data is expensive and takes time
People who have the same characteristics of BBY.com visitors
People who added an item to their cart but did not check out
People who are loyalty program members
People who viewed product details on BBY.com
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 24
BROADER IS BETTER FOR PROSPECTING, ESPECIALLY WHEN USING 3RD PARTY DATA
People who buy products on sale
• Good: Hundreds of ways to target people via 3rd party data – can create large scale • Bad: We are at the mercy of data providers to understand who we are targeting
100 106
143
217
People who shop for electronics online
People who are “super users” of any electronics
People who expressed an interest to buy a specific electronics product
Ret
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Inve
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Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 25
OUR PRIORITY IS ALWAYS TO USE OUR DATA FOR PERSONALIZATION • Good: Our own data is the least expensive to deploy and has the best return • Bad: We didn’t get here overnight and there’s only so much scale we can drive with
our own data
0
5
10
15
20
25
30
Ret
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Inve
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High
Low
People interested in CE but did not visit BBY.com Size: 104MM
People who have the same characteristics of BBY.com visitors Size 45MM
People who visited BBY.com Size: 33MM
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 26
WHAT WE’VE LEARNED
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WHAT WE'VE LEARNED
With many partners and technologies working together, process is critical.
Personalization isn’t just Marketing, recognize the interdependencies.
Structured segmentation beats total flexibility
Document process and build for scale, audit frequently to avoid surprises.
Integration and communication between Marketing Technology, .Com, CRM, IT, Retail and Media teams is required.
Streamline segment development to ensure efficiency and consistent customer experiences.
Confidential – Best Buy use only. Do not copy, publish, or distribute. The material in this document is proprietary to Best Buy. 28
WHAT WE'VE LEARNED
Creative production multiplies with personalization, traditional review processes don’t scale.
The transition to personalization includes technical elements, but the most significant change is cultural.
Clearly define responsibilities and let results be the ultimate decision maker.
Utilize change management to smooth the process from centralized “push” messaging to crowd-sourced and automated communications.