2. #CCSeries13
About
 CCS
 2013
Â
ĂźďźâŻ9 Webinars, 4 Days
ĂźďźâŻSessions covering Mobile,
Social, Store Ops,
X-Channel, and more
ĂźďźâŻFeaturing industry
analysts and consultants
ĂźďźâŻFree for Retail executives
www.retailtouchpoints.com/connected-consumer-2013
4. #CCSeries13
About
 Retail
 TouchPoints
Â
ĂźďźâŻLaunched in 2007
ĂźďźâŻMore than 25,000 subscribers
ĂźďźâŻProvide executives with relevant,
insightful content
ĂźďźâŻFree Resources such as White Papers,
E-book, Webinars, Research and
Podcasts
www.RetailTouchPoints.com
6. #CCSeries13
Todayâs
 Panelists
Â
Pam Goodfellow
Consumer Insights Director
Prosper Insights & Analytics
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Marc Schroeder
VP, Industry Marketing
Teradata
8. Š 2013, ProsperŽ
Disclaimer: Prosper Business Development and its affiliated companies (âProsperâ) make no warranties, either expressed or implied, concerning: data gathered or obtained from any source; the present
or future methodology employed in producing the statistics; or the data and estimates represent only the opinion of Prosper and reliance thereon and use thereof shall be at the userâs own risk.
1 Confidence in the Economy is Unsteady
2 Pragmatic Purchasing Plans Continue
3 Spending at the Expense of Saving
4 Modern Shoppers ValueâŚWell, Value
5 Looking for a Showroomer? Look in the Mirror
5 Ways to Identify Modern Shoppers
9. Š 2013, ProsperŽ
Confidence in the Economy is Unsteady1
25%
27%
29%
31%
33%
35%
37%
39%
41%
Very Confident / Confident in Chances for Strong Economy [adults 18+]
economic sentiment is volatile
those very confident/confident in chances for a strong
economy climbed to 40.1% in April 2013
no consecutive months of increase since Q3 2012
evidence of fiscal cliff, payroll tax hikes, sequester taking toll
on consumer psyche
Source: Monthly Consumer Survey
âŚyet the stock market is bullish:
one out of three Americans judges the health of the U.S.
economy by the performance of the stock market
10. Š 2013, ProsperŽ
U.S. Unemployment Rate / Labor Force Participation Rate
Source: U.S. Department of Labor: Bureau of Labor Statistics
Confidence in the Economy is Unsteady1
employment
fewer counted as âunemployedâ as an increasing number of consumers become discouraged / drop out of the
labor force â driving this percentage down
official U.S. unemployment rate is in decline, yet the labor force participation rate is shrinking as well
0.0
2.0
4.0
6.0
8.0
10.0
12.0
61.5
62.0
62.5
63.0
63.5
64.0
64.5
65.0
65.5
66.0
66.5
Civilian Labor Force Participation Rate Civilian Unemployment Rate
LaborForceParticipationRate(%)
CivilianUnemploymentRate(%)
11. Š 2013, ProsperŽ
2 Pragmatic Purchasing Plans Continue
In the last six months, have you made any of the following changes? [adults 18+]
30%
35%
40%
45%
50%
55%
60%
65%
Apr-07
Jul
Oct
Jan
Apr-08
Jul
Oct
Jan
Apr-09
Jul
Oct
Jan
Apr-10
Jul
Oct
Jan
Apr-11
Jul
Oct
Jan
Apr-12
Jul
Oct
Jan
Apr-13
I have become more practical and realistic in my purchases
I focus more on what I NEED rather than what I WANT
3 month moving average
Source: Monthly Consumer Survey
consumer spending
while practical spending and focus on needs peaked
during the recession, consumers still havenât
reverted to their old habits
as of April 2013, more than half (53.4%) still focus
more on what they need rather than what I want
when at the store, while nearly as many (48.1%) cite
pragmatic purchase plans
12. Š 2013, ProsperŽ
3 Spending at the Expense of Saving
Real Personal Consumption Expenditures
Source: U.S. Department of Commerce: Bureau of Economic Analysis
Personal Saving Rate
8600
8800
9000
9200
9400
9600
9800
10000
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
BillionsofChained2005Dollars
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Jun-11
Nov-11
Apr-12
Sep-12
Feb-13
Percent
spending / saving
how precarious is this balance for the stability/growth of our economy?
real personal consumption is increasing while 2013 personal saving rate levels have dropped to lows not seen
since before the Great Recession
13. Š 2013, ProsperŽ
3
90 Day Retail Outlook Score [adults 18+]
Source: Monthly Consumer Survey, Bureau of Labor Statistics, U.S. Census Bureau
future spending
looking into Q2 2013, the Retail Outlook Score indicates
that the average direction of seasonally adjusted retail
sales (excluding automobile dealers and gas stations)
will generally trend upward
Spending at the Expense of Saving
spending will likely be driven among upper income,
luxury shoppers who generally spend on a higher level,
have a more solid financial footing, and arenât as likely to
be affected by fluctuating fuel expenses, rising food
prices, etc.
14. Š 2013, ProsperŽ
Modern Shoppers ValueâŚWell, Value
10%
14%
18%
22%
26%
30%
34%
38%
Jul-06
Dec-06
May-07
Oct-07
Mar-08
Aug-08
Jan-09
Jun-09
Nov-09
Apr-10
Sep-10
Feb-11
Jul-11
Dec-11
May-12
Oct-12
Mar-13
Department Store Discount Store
Specialty Apparel Store Linear (Department Store)
Linear (Discount Store)
3 month moving average
Store Format Shopped Most Often for Womenâs Apparel [adults 18+]
highlight: womenâs apparel
for womenâs apparel, department stores have been
trending upward with shoppers, while discounters have
relatively flatlined
while price is still an critical motivating factor, department
store shoppers more value-driven, placing high
importance on quality, selection, brands availableâŚ
as well as special sales and coupons
department store growth has largely been fueled by
increasing loyalty toward Kohlâs and Macyâs â while
Walmart has been flagging
Source: Monthly Consumer Survey
4
15. Š 2013, ProsperŽ
Looking for a Showroomer? Look in the Mirror
Regularly / Occasionally Use Smartphone to Comparison Shop
[among those who own a smartphone]
20%
30%
40%
50%
60%
70%
80%
90%
Adults 18+ Millennials Gen X Boomers Silent
showrooming
showrooming isnât just a trend, itâs a full-fledged smart
shopping strategy
while Millennials and Gen X-ers are the most likely to
comparison shop via their smartphones, this activity has
jumped 50% in the past two years among members of
the Silent generation
Millennials = born 1983 â 1995 Gen X = born 1965 â 1982
Boomers = born 1946 â 1964 Silent = born pre-1946 Source: Monthly Consumer Survey
5
16. Š 2013, ProsperŽ
Looking for a Showroomer? Look in the Mirror
Regularly / Occasionally Use Amazonâs Price Check App While Shopping
[among those who own a smartphone]
the Amazon influence
as of April 2013, nearly half of Millennials regularly /
occasionally use Amazonâs Price Check app while
shopping
while Boomers and Silents are the least likely to be using
the Price Check app, usage may rise as an increasing
number of consumers opt for smartphones over feature
phones â and adopt this smart shopping strategy
Millennials = born 1983 â 1995 Gen X = born 1965 â 1982
Boomers = born 1946 â 1964 Silent = born pre-1946 Source: Monthly Consumer Survey
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Adults 18+ Millennials Gen X Boomers Silent
5
as consumers become increasing connected, the lines
between in-store, online, and mobile retailing begin to
blur
retailers focused on a seamless, omnichannel strategy
will be best positioned to speak to and perhaps capture
todayâs flitting consumers
17. Š 2013, ProsperŽ
1 The economy remains a big question mark for consumers â with uncertainty likely
leading to hesitant spending, worry about employment, and financial well-being.
2 While practical spending and focus on needs peaked during the recession, consumers
are still trying to maintain guarded spending.
3 Personal consumption expenditures are increasing, perhaps at the expense of savings.
Luxury shoppers are likely driving the increase in spending.
4 Department store shopping is on the rise, appealing to consumersâ value-driven needs.
5
As consumers become increasingly connected, retailers focused on a seamless,
omnichannel strategy will be best positioned to speak to and perhaps capture todayâs
flitting consumers.
Key Takeaways
19. 19 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing
Mobility and Social Marketing
â˘âŻ Accounts for up to 9% of Retail Sales
â˘âŻ By 2014 Almost Every Mobile Phone will be a Smart Phone
â˘âŻ Influences about 50% of Store Sales
Retail Trends
19
20. 20 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility
and Social Marketing
â˘âŻ Accounts for up to 9% of Retail Sales
â˘âŻ By 2014 Almost Every Mobile Phone will be a Smart Phone
â˘âŻ Influences about 50% of Store Sales
Consumers Control Their Experience
â˘âŻ Flexibility, Transparency, Relevancy and Convenience
Retail Trends
20
email
Direct Mail
In-Store
Mobile
SMS Offers
Web
Social
21. 21 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility
and Social Marketing
â˘âŻ Accounts for up to 9% of Retail Sales
â˘âŻ By 2014 Almost Every Mobile Phone will be a Smart Phone
â˘âŻ Influences about 50% of Store Sales
Consumers Control Their Experience
â˘âŻ Flexibility, Transparency, Relevancy and Convenience
Retail Trends
21
Impacts of Showrooming
â˘âŻ According to recent research 1/3 of customers purchase
from a competitor after researching prices online at the
store
22. 22 5/20/13 Teradata Confidential
Increased Strategies Around Customer Facing Mobility
and Social Marketing
â˘âŻ Accounts for up to 9% of Retail Sales
â˘âŻ By 2014 almost every mobile phone will be a smart phone
â˘âŻ Influences about 50% of Store Sales
Consumers Control Their Experience
â˘âŻ Flexibility, Transparency, Relevancy and Convenience
Retail Trends
22
Impacts of Showrooming
â˘âŻ According to recent research 1/3 of customers purchase
from a competitor after researching prices online at the
store
Showrooming Impacts all Retail Segments
23. 23 5/20/13 Teradata Confidential
Strategies that Retailers a putting in place to counter the act
of showrooming
Is Showrooming a Threat to Retailers
â˘âŻ Price Matching
â˘âŻ Not Sustainable
â˘âŻ Specially Featured White
Labeled Products
â˘âŻ Product Centric vs.
Customer Centric
â˘âŻ Products only unique for
a small amount of time
24. 24 5/20/13 Teradata Confidential
So if not price matching then whatâŚ
Retailers need to develop a multi-
prong approach that focuses on
customer centricity
â˘âŻ Use price matching sparingly
25. 25 5/20/13 Teradata Confidential
So if not price matching then whatâŚ
Retailers need to develop a multi-
prong approach that focuses on
customer centricity
â˘âŻ Empower their Associates
with Data and Offers to be
Used for each Unique
Customer
â˘âŻ Use price matching sparingly
26. 26 5/20/13 Teradata Confidential
So if Not Price Matching Then WhatâŚ
Retailers Need to Develop a Multi-
prong Approach that Focuses on
Customer Centricity
â˘âŻ Empower their Associates with
Data and Offers to be Used for
each Unique Customer
â˘âŻ Extended Warranties
â˘âŻ Use Price Matching Sparingly
27. 27 5/20/13 Teradata Confidential
So if not price matching then whatâŚ
Retailers need to develop a multi-
prong approach that focuses on
customer centricity
â˘âŻ Empower their Associates with
Data and Offers to be Used for
each Unique Customer
â˘âŻ Extended Warranties
â˘âŻ Loyalty/Reward Points
â˘âŻ Use price matching sparingly
28. 28 5/20/13 Teradata Confidential
So if not price matching then whatâŚ
Retailers need to develop a multi-
prong approach that focuses on
customer centricity
â˘âŻ Empower their Associates with
Data and Offers to be Used for
each Unique Customer
â˘âŻ Extended Warranties
â˘âŻ Loyalty/Reward Points
â˘âŻ Enhanced Convenience/
Service
â˘âŻ Use price matching sparingly
29. 29 5/20/13 Teradata Confidential
More Efficient & Effective Marketing
â˘âŻ Creates Relationships
â˘âŻ Drives loyalty & satisfaction
â˘âŻ Saves on agency costs
â˘âŻ Lets the marketer focus on creative,
messaging, offers
â˘âŻ Increases average purchase price
â˘âŻ Store/product/brand recommendations
Better Customer Experience
â˘âŻ Channel preference/convenience
â˘âŻ Ability to easily find Product/brand
information
â˘âŻ Relevant & timely promotional
incentives
â˘âŻ Highly personalized communications
delivered more frequently
Product Info Incentives
Category/
Brand Interest
Customer Centricity
Engagement
Channels
30. 30 5/20/13 Teradata Confidential
Marketers Face Big Challenges:
â˘âŻ Leveraging Data Across the Organization
â˘âŻ 37.5% of retail marketers agree that silos within Marketing
prevent them from having a holistic view of a campaign
across channels
â˘âŻ Integrating the Digital and Physical Worlds
â˘âŻ Only 25% of retailers create a single view of all customer
actions (purchases, call center interactions, web history,
etc.)
â˘âŻ Optimizing the Customer Experience
â˘âŻ Only 22.5% of retailers routinely use Data Driven
Marketing strategies to customize marketing messages and
offers to improve customer experience
â˘âŻ Analyzing marketing Initiative Effectiveness Across
Channels
â˘âŻ 58% of retailers claim the top obstacle preventing retail
marketing organizations from applying data to make more
informed decisions is their existing technology is
inadequate, outdated
Retail Marketers are Faced with Challenges in Delivering
a Customer Centric Experience
31. 31 5/20/13 Teradata Confidential
Customers
Customer
Interaction
Management
Marketing
Analytics
Marketing
Operations
Marketing
Operations
Customer
Engagement
Real-time
Interactions
Key Questions from Retail Marketers
What
customers
match
certain social
behavior?
What message
should I send
next?
Where is the
customer
engaging with
me?
What has the
customer
purchased?
How do I
attribute value
to the
channels?
What have
I learned
about my
customers?
How should I
respond to the
customer?
Where should I
spend my
marketing
dollars?
32. 32 5/20/13 Teradata Confidential
Data Driven Marketing Drives Customer Centricity
â˘âŻ Analyze Customer Interactions
â˘âŻ Discover Customer Behaviors
â˘âŻ Visualize Social Relationships
â˘âŻ Deliver Relevant, Targeted Messages
â˘âŻ Track Customer Response
â˘âŻ Ensure Governance and Compliance
â˘âŻ Connect Data Across the Enterprise
â˘âŻ Understand Customer Behavior
â˘âŻ Deliver Self-Service Analytics in Minutes
â˘âŻ Optimize Spend Across Channels
â˘âŻ Enable the Next Best Action
â˘âŻ Streamline Campaign Execution
33. 33 5/20/13 Teradata Confidential
Key Marketing Business Challenges
â˘âŻ Need to drive consistent messages across multiple channels
â˘âŻ Want to adjust marketing spend based on performance
â˘âŻ Need to gain insight to understand the right message to
communicate
Engage the Customer
with Relevant
Messages
â˘âŻ Desire to evaluate past behaviors to understand how to best engage
the customer
â˘âŻ Need to empower marketers to engage customers with relevant data
â˘âŻ Want to make social connections and understand the relationships
Gain Meaningful
Customer Insights
Develop a Full
Perspective of the
Customer
â˘âŻ Desire to leverage all enterprise data to drive decisions
â˘âŻ Need to make decisions based on data; not gut feel
â˘âŻ Want to have a complete view of the customer, regardless of
channel used
Integrate & Understand
Analyze & Discover
Act & Optimize
34. 34 5/20/13 Teradata Confidential
Integrate & Understand Customer Success
â˘âŻ To grow, DSW knew it
needed to increase it
rewards program
members, who tend to
purchase more
â˘âŻ Needed information
from all channels to
build right incentive to
drive behavior
â˘âŻ Data infrastructure
was unable to connect
customer experience
from both in store and
online
â˘âŻ Teradata Integrated
Data Warehouse
allows capture of
customer input from
all channels
â˘âŻ Robust system can
quickly scale to
support the 18 million
DSW Rewards
program members
â˘âŻ Front-line employees
are now using data to
differentiate DSW
from the competition
DSW has:
â˘âŻ Increased loyalty
program customers
â˘âŻ Increased average
market basket size
â˘âŻ Delivered more
targeted marketing,
driving customers to
appropriate channel
â˘âŻ Climbed to the
number 2 spot in
market share
DSW is a leading US shoe retailer, with goal of being Americaâs
favorite place for shoes. Connecting with customers is how DSW
propelled itself into the number 2 position in market share.
Challenge Solution Results
35. 35 5/20/13 Teradata Confidential
Analyze & Discover Customer Success
â˘âŻ Preserve a loyal base
while building the eBook
business
â˘âŻ Create a multi-channel
behavioral view to drive
segmentation & targeting
strategies as well as
marketing spend
â˘âŻ Incorporate data from
digital devices like the
Nook, website, contact
center, in-store kiosks &
in-store point of sales.
â˘âŻ Behavioral Analysis of
Paths to Purchase:
Teradata Aster
MapReduce Platform joins
customer data and
analyzes multi-channel
paths to purchase
â˘âŻ Organic & Planned
Touch Marketing
Attribution: Goes
beyond single-touch
insight to provide
guidance to marketers
âThe multi-channel, multi-
touch marketing
optimization insights that
the Teradata Aster platform
provides have been critical
to transforming our
company.â
-⯠Mark Parrish VP of
Retention and Loyalty.
â˘âŻ Reduce churn: analytics
from 5-6 hours previously
to now 20 minutes
â˘âŻ Increase conversions from
recommendations
Barnes and Noble was a leading retailer of physical books, video,
music and more. Over the past few years, Barnes and Noble has
shifted from a physical seller of books to a digital technology
company with eReaders with the Teradata Aster MapReduce
Platform
Challenge Solution Results
36. 36 5/20/13 Teradata Confidential
Act & Optimize Customer Success
â˘âŻNeeded a solution to
assist in the kick-off of
their Customer Centric
Marketing program
â˘âŻWanted to re-launch the
Buzz Club Rewards
customer loyalty
program in all of Big
Lotsâ stores
â˘âŻRequired an integrated
marketing solution to
carry these out
Challenge Solution Results
Due to instrumental new and revised marketing initiatives,
Big Lots was in need of a technology refresh to help them
succeed in bringing these programs and plans to fruition
while ensuring their effectiveness.
â˘âŻUsing Teradata
Campaign Management
Big Lots segmented
customers better to
allow for better
messages and offers
â˘âŻUsing Email Marketing,
Big Lots created more
personalized e-
dialogues for more
effective
communications
â˘âŻUsing Campaign
Management, Big Lots
collected, maintained,
evaluated and analyzed
buying patterns of
customers
â˘âŻReduced costs by
phasing out preprint
distribution
â˘âŻRealized revenue lift
from existing customers
â˘âŻIncreased average
market basket size
â˘âŻPerformed RFM analysis
to determine how
recently a customer has
purchased, how often
they purchase and how
much the customer
spends
â˘âŻRetained members of
the Buzz Club Rewards
program
37. 37 5/20/13 Teradata Confidential
Technology-Enabled Customer Centricity
Workflow
& Rules
Plan &
Spend
Assets &
Offers
Source Data
Product/
SKU
Inventory
Sales/
POS/
Franchise
Supplier
Promotional/
Loyalty Data
Strategic Insight and
Marketing Processes
Seamless Customer
Engagement / Experience
Call
Center
ATM/
Kiosk
Email
Mobile
Channels Customers
Sales
Customers
Partners
Social
Media
Web
Digital
Marketing
Acquisition/
Loyalty
CampaignCustomer
360 Data
Warehouse
Mining
Modeling
Reporting
Trending
Profiling
Segmenting
Big
Data
Customer-centric
Data Management
Assets
Multi-Channel Real Time
Marketing Management
Marketing Operations
Marketing Analytics
38. 38 5/20/13 Teradata Confidential
Real-Time Decisions
Experiment & Iterate
â˘âŻ Social Graph
â˘âŻ Multivariate testing
â˘âŻ Segmentation
Behaviors
â˘âŻ Path to Purchase
â˘âŻ Attribution
â˘âŻ Sentiment Analysis
Results
â˘âŻ Spend
â˘âŻ Wins
â˘âŻ ROI
All Your Analysis
Digital Execution
â˘âŻ E-mail
â˘âŻ SMS/RSS
â˘âŻ Blogs
â˘âŻ Social Marketing
â˘âŻ Personalization
â˘âŻ Landing Pages
â˘âŻ Multi-channel Campaigns
Marketing Management
â˘âŻ Planning
â˘âŻ Dashboards
â˘âŻ Workflow
All Your InteractionsCloud
â˘âŻ Web
â˘âŻ Mobile
â˘âŻ Social
â˘âŻ eCommerce
â˘âŻ Search
â˘âŻ Mobile
â˘âŻ Ad Placements
â˘âŻ Tags
â˘âŻ Visitor Clickstream
Applications
â˘âŻ POS
â˘âŻ Care
â˘âŻ OSS/BSS
Digital Data Management
â˘âŻ Weblog Analysis & ETL
â˘âŻ Web Intelligence Data Model
â˘âŻ Workload
All Your Data
38
Tools to Optimize Performance
39. 39 5/20/13 Teradata Confidential
â˘âŻ Integrate and Understand your Customers
>⯠Pull data across your organization (offline, online, inventory/
warehouse, social, call center) into a single platform to create a
comprehensive view of your customer and your operations
â˘âŻ Analyze and Discover
>⯠Enable big data analytics to understand what is driving customer
behavior like path to purchase, or causes for abandoning the
online basket as well as what and who influences your customer
purchasing behavior
â˘âŻ Act and Optimize
>⯠Leverage the insights and analytics, empower customer touch
points including your in-store personnel with the information and
ability to deliver relevant and specific offers to each consumer
In Summary the Key to Customer Centricity
42. #CCSeries13
Q&A
Â
 //
Â
 Panelists
Â
Pam Goodfellow
Consumer Insights Director
Prosper Insights & Analytics
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
MODERATOR
Marc Schroeder
VP, Industry Marketing
Teradata
43. #CCSeries13
Leveraging
 The
Â
Power
 Of
 Data
Â
Today, 2 PM ET / 11 AM PT
Thank
 You
Â
 For
 Joining
 Us
Â
www.retailtouchpoints.com/connected-consumer-2013
The next Connected Consumer Series sessionâŚ