Gavin WilsonChief Revenue

Officer

CRM to ProgrammaticGrowing Customer Lifetime Value with Personalised Marketing that Scales

Owen HewitsonHead of Consumer

Insights

Was euch wirklich erwartet

Full-ServiceProgrammatic

Display70+Markets

21 Offices

Multi-DeviceMulti-Channel

Full-FunnelDisplay

Advertising100% proprietary tech

Our Shared Mission

To make advertising more relevant and personal.

Our Shared Vision User-individual marketing at scale.

The Future Will Be Personalised

Gavin WilsonChief Revenue

Officer

CRMGrowing Customer Lifetime Value

Owen HewitsonHead of Consumer

Insights

Programmatic

toPersonalised Marketing that Scales

with

Mobile Mobile Mobile

MobileMobile Mobile Mobile

The Development of Buzzwords

2004 2006 2008 2010 2012 2014 2016

RTB Big Data

Phablets

Second Screen

SoLoMo Personalisation

Programmatic

Beacons

2011 2012 2013 2014 2015

Buzzwords of the Last Years

Push Notificatio

nsNative

2004 2006 2008 2010 2012 2014 2016

CRM?

Buzzword???

“A management philosophy according to which a company’s goals can be best achieved through identification and satisfaction of the customers' stated and unstated needs and wants.”Business Dictionary, http://bit.ly/1DU3ODf

Definition of CRM

It all starts with the customer.

Dear Valued Customer,

I don’t know your name or what you care about but I’d like to sell you something.

12

Understood and spoken to as individuals

Surrounded by relevant and

helpful content

Engaged through

their preferred channel, device

& platform

With smart timing and respectful frequency

Customers have changed — profoundly and forever.

Customer Lifetime Value

RECENCY

FREQUENCY

MONETISATION

When did the customer last make a Purchase?+ Recent purchasers more likely to buy

How often is the customer making purchases?+ Frequent purchasers more likely to buy

What is the customer’s return rate?What is the margin for this customer?+ Highest margin spenders more likely to spend again

How to Build CRM Groups?

RECENCY

FREQUENCY

MONETISATION

WEB ANALYTICS

DATA WAREHOUSE

CLV Data Sources

Data Warehouse Web Analytics Sociomantic

Monetisation

RECENCY

FREQUENCY

MONETISATION

CLV

Building CRM Groups

CRM Groups

ACTIVECLV: £1000eCPA: £8

DORMANTCLV: £475eCPA: £20

LOSTCLV: £160eCPA: £40

Single-User Approach Across Devices

PRICING

MESSAGING

The Market Perceptions of CRM

Rudimentary LevelDemographics

Website Behaviour

Real CRMCustomer Lifetime Value

ProgrammaticE-Mail Business Intelligence

The Market Perception of CRM

CRM Meets Online Marketing

No segmentation

New vs. existing customers

New customers vs. CRM groups

By channel

Segments of one

Run of network

Additional data

URL optimisation

CRM data

CRM Meets Display

The Programmatic Customer Journey

CRM

CRM

CRM

CRM

CRM

Display

CRM

E-Mail DisplayCRM

BI

CRM Goes Display

E-Mail Programmatic Display

CRM

BI

Programmatic Mobile/in-App

Programmatic Video/IP TV

Programmatic Wearables

Programmatic Out of Home

Programmatic in Store

CRM Goes Programmatic

Joint expertise in driving CLV online and offline

The UK’s largest grocery retailer with 51% online market

share.

World leader in customer insight and

building offline loyalty.

Experts in using programmatic display

for online CRM segmentation.

Clubcard scheme operated by dunnhumby

since 1994, 17million active households.

Acquisition by dunnhumby in April 2014.

Why would a supermarket want to retarget?

Historically, margins on grocery items slim to justify performance

display.

Groceries are seen as necessity purchases. Repeat orders and

upsells will generate themselves.

Measurability online is complex, due to

volume of in-store transactions.

Incrementality is hard to demonstrate for

transactions as regular and frequent as

grocery.

CRM segmentation is the key to success

Target customers are grouped according to custom-defined

CRM segments based on recency, frequency and

monetary factors.

Product personalisation and

recommendations are dynamic, and combined with

messaging relevant for that group.

Sociomantic and dunnhumby identify

Tesco’s target audience and

Sociomantic find cookied users online.

Matching Aims with Campaigns

Recency Model

Frequency Model

Monetisation Model

Seg. 1

Seg. 2 Seg. 3 Seg. 1

Seg. 2 Seg. 3 Seg. 3Seg. 2Seg. 1Purchased

at least once in last

12 weeks

Purchased at least once

in last 6 months

Purchased at least once

in last year

Purchased 1x in last12 weeks

Purchased 2-5x in last12 weeks

Purchased 5+x in last12 weeks

Spent <£50in last

12 weeks

Spent £50-500 in last

12 weeks

Spent £500+ in last

12 weeks

“Find and convert customers who haven’t shopped at Tesco online or in-store in the past

2+ years”

“Build loyalty through a nursery programme to

encourage regular shops”

“Offer relevant complementary products by

encouraging amends or upsells

post-purchase but pre-delivery”

‘Amend your order before 11:45 the night before’

Increase AOV.

Second shop code to encourage repeat shops.

Customer service/awareness

message informative, helpful rather than

sales-y.

Upsell Loyalty Frequency

Nursery Campaigns for Customer Lifetime Value

Sharing Cookie Pools to Reach New Audiences

Browsed kids’ toys on Tesco Direct

Show kids’ clothes from F&F

Browsed bikinis on F&FShow sunscreen from

Tesco Groceries

Browsed lunchbox items on Tesco Groceries

Show Back-to-School from Tesco Direct

Find the Right Audience forSeasonal and Promotional Campaigns

Q&A

Programmatic?

CRM?Segmentation?

CLV?

Thank You!

Gavin WilsonChief Revenue OfficerSociomantic Labsgavin.wilson@sociomantic.com

bit.ly/sociomantic-newsletter

Owen HewitsonHead of Consumer Insights Sociomantic Labsowen.hewitson@sociomantic.com