Nrf16 Actionable Insights on Real Time Consumer Behavior

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NRF BIG SHOW 2016R E TA I L . D I G I TA L . I N F I N I T E O P P O R T U N I T Y.

J A N U A R Y 1 7 – 2 0 , 2 0 1 6 | N E W Y O R K C I T Y

©2015 SAP SE or an SAP affiliate company. All rights reserved. 2

Evolution of consumer insight over decades

Press

1780s

Radio

1920s

TV

1950s

Focus groups, surveys, interviews

PC/Web

1990sCookies, tags, Web analytics

Mobile

Today

Call records, location

Ava

ila

ble

us

er

ba

se

fo

r in

sig

ht

Timeliness of Insight

Small

Large

Significant Lag Real Time


Ad spend not aligned with channels where consumers spend timeBrands need to consider shift in consumer behavior toward mobile

Time spent on mobile increases as TV decreases

2010

TV: 40.9%

Mobile (non-voice): 3.7%

2014

TV: 36.5%

Mobile (non-voice): 23.3%

0 10 20 30 40 50

Mobile

Radio

Web

Print

TV

Time Spent (%) Ad Spend (%)

U.S. Ad Spending vs. Consumer Time Spent by Media

Source:


Market to an audience of oneThe many-one-many process

Segment of one data

Consumer-level data

Aggregated data

Aggregated data

Consumer-level data

Segment of one data

EX

PLIC

IT

IMP

LIC

IT

NORMALIZATION

RELEVANCE

ENGAGEMENT

LISTENING

• Sell-out (POS) data

• Social media and advertising data

• Mobile operators data

• Explicit data from known consumers

• Implicit data from known and unknown

consumers

• Application of look-alike models to build

larger audiences from smaller

audience segments to create reach

“Gain actionable insights on many, but market to an audience of one”


“There’s an app for that” has yet to be the only answer for brandsMobile is more than smartphones and apps

Only 19% get more than 1,000

downloads

Only 1% of branded apps

get more than a million downloads

A staggering 80%

get fewer than 1,000 downloads

Source: http://digital-stats.blogspot.co.uk/2011/07/80-of-branded-mobile-apps-have-been.html


It is about “clicks and bricks” How are consumers behaving in-store, online, and beyond?

Regularly Occasionally Almost Never

Price checking Reading info and reviews Calling/texting a friend

or family member

Source: http://www.shopify.com/blog/14513673-consumers-are-showrooming-and-webrooming-your-business-heres-what-that-means-and-what-you-can-do-about-it

What are consumers doing online while in a store?


Can mobile Big Data provide new insights?Out-of-home

City Center Shopping District Store Proximity

Where are people?

Who are they (demographics)?

What are they doing (over time)?


City or Town District Neighborhood

Can mobile Big Data provide new insights?In-home

Where do they live (zip code)?

What is their income level?

What are their interests?


321

SAP Consumer Insight 365

SAP Consumer Insight 365 unlocks and enhances mobile dataDelivers ready-to-consume insights

SAP

HANA

Analytics

Data Enrichment & Predictive

Enhancement

Anonymized real-time

mobile subscriber data

available by different

countries/region from

mobile network operators

Data enriched with other

sources and enhanced with

predictive algorithms, offered

as a cloud-based service

Detailed reports available for

pre-defined use cases, ready for

consumption based on industry

workflows

SAP

IQHadoop

SAP Mobile Services

cloud

Maps POIDemo-

graphics


These insights enable …

Competitive intelligenceAdvertising and marketing

effectiveness

Audience research loyalty Social media

Digital channel insights

Programmatic buying

Omnichannel marketing

The

Mobile Big Data

Potential

Media channel

planning and buying

Consumer digital journey

Consumer behavior, preferences,

and segmentation


The challenge: Finding the balanceBetween business and consumer points of view

Business

Perspective

Consumer

Perspective

Willing to new approaches, insights

based on personal data, but trust is

crucial in that their data will not be

used to harm themEffectiveness of promotions,

advertisements still unclear

Need scale and specificity in executing

campaigns, promotions

Freshness and completeness of

consumer data is criticalAppreciate when advertisements are

timely, relevant, and non-intrusive


Significant value potential for retailers from these insights

Impact advertising and marketing

strategy/execution

Contribution to advertisement attribution

Improved location planning

Real-time competitor (store/location) benchmarking


Data Center: APJ

Data Center: USA

Ensuring the privacy of the individual consumer is the foundation of SAP Consumer Insight 365

MNO

Mediation

Zone

MNO

Mediation

Zone

MNO Data Center

Analytics & Data

Layer

Presentation Layer

SAP Consumer Insight 365 SAP Consumer Insight 365

Dashboard

Data Privacy Principles

No data that can directly identify individuals

Data that can directly identify an individual never leaves the mobile network operator

Individuals cannot be identified through the portal

No public or end-user access to raw data

Restricted raw data access for SAP staff and periodic security reviews


Predicting the futureAudience discovery will precede targeting and verification

2. Customer Action

• Maximize revenue by delivering an easy,

engaging cross-channel shopping

experience based on customer and

consumer data

3. Marketing Measurement

Verify effectiveness of campaigns through footfall rates in and around places of interest (i.e., how effective were billboards, whether mobile ads were opened and what was the response, how did people respond to a circular ad)

1. Consumer Insight

Understand the audience of many, so you can segment to the audience of one

The New

Marketing

Cycle

©2015 SAP SE or an SAP affiliate company. All rights reserved. 15Internal

Thank you

Contact information:

Vaibhav Vohra, [email protected]

Rohit Tripathi, [email protected]

Retail

Nrf16 Actionable Insights on Real Time Consumer Behavior