Webinar On-Demand: The Power of Analytics to Drive Loyalty

THE POWER OF ANALYTICS
TO DRIVE LOYALTY

© Copyright 2000-2012 TIBCO Software Inc.

Your presenters today

David Rosen
Strategy, Analytics and Consumer Insights
TIBCO Loyalty Lab

Brett Hannath
Director, Marketing
TIBCO Loyalty Lab

2

TIBCO LOYALTY LAB
WHO WE ARE


TIBCO Loyalty Lab

LOYALTY TECHNOLOGY LOYALTY SERVICES
• Loyalty Lab On-Demand Loyalty • Program Strategy and Design
Platform • Analytics
• Predictive Analytics & Data • Creative
Visualization • Program Support
• Data Matching, Cleansing, • Data Integration
Standardization, Enrichment
• Customization
• Messaging and Integration
• Real-Time Contextual Marketing


TIBCO Loyalty Lab clients

Over 260 million consumer records managed


What do marketers need?

Offers

Social Loyalty
Context Programs

Great Relevant
Service Messaging
LOYALTY
Effective Real-time
Mobile Engagement

Single View
Customer
of the
Insights
Customer

6

What do marketers need?

Offers

Social Loyalty
Context Programs

Great Relevant
Service Messaging
LOYALTY
Effective Real-time
Mobile Engagement

Single View
Customer
of the
Insights
Customer

7

WE WERE CURIOUS

8

We surveyed over 100 marketers…


… to find how analytics are
used to drive loyalty


Who responded?
Your company's Size of your company
Your role in your
industry by number of
company
employees
C-level Financial Services / Banking 1 - 99 1,000 - 4,999
Manager
Retail 100 - 499 5,000 +
VP or Director
500 - 999 Don’t know
Other Travel / Hospitality
Other

2%
12% 15% 10%
18% 19%

19% 32% 20%
34% 54%

39%

9% 17%

11

Organizational culture
The principle driver of analytics for Do you agree or disagree with the
our company is: following statements when it comes to
the culture of your organization?
Top 2 Top 3
A third
party We actively use the results to
analytics inform our campaigns
The loyalty firm
team None of
7%
22% the above Test & learn is the foundation
16% of our culture

Our organization has internal
Our expertise in predictive
analytics
vendor
11% We have invested in
significant predictive analytics
/ business intelligence
The software and/or services
analytics
team We don’t have time to test –
44% we move too fast

0 20 40 60 80 100

12

Measuring the success of your loyalty program
Current vs. Ideal
Tools and Tactics Considered:
• Use tools to measure social buzz and sentiment
• As it relates to our loyalty program, analyze customer lift by basket
size and frequency
• Measure specific campaigns with A/B testing
• Measure specific campaigns with rigorous test and control
• Measure program ROI down to a specific number for overall program
performance
• Measure consumer satisfaction and attitudes

7-point scale
7-Strongly Agree, 1-Strongly Disagree

13

Current loyalty program measurement
How do you CURRENTLY measure the success of your program?
Top 2 Top 3

Measure consumer satisfaction and attitudes

Measure program ROI down to a specific number for overall
program performance

Measure specific campaigns with rigorous test and control

Measure specific campaigns with A/B testing

As it relates to our loyalty program, analyze customer lift by
basket size and frequency

Use tools to measure social buzz and sentiment

0 10 20 30 40 50 60 70 80 90 100

14

Desired loyalty program measurement
Ideally how would you LIKE TO measure the success of your loyalty program?
Top 2 Top 3

Measure consumer satisfaction and attitudes

Measure program ROI down to a specific number for overall
program performance

Measure specific campaigns with rigorous test and control

Measure specific campaigns with A/B testing

As it relates to our loyalty program, analyze customer lift by
basket size and frequency

Use tools to measure social buzz and sentiment

0 10 20 30 40 50 60 70 80 90 100

15

Current vs. desired measurement
7.00
How do you CURRENTLY measure the success of your

6.50

6.00

5.50 Measure consumer
program?

satisfaction and attitudes

5.00 Measure program ROI down to a specific number for overall program performance Measure specific campaigns using rigorous test and
Analyze customer lift by basket size and frequency control
Measure specific campaigns
using A/B testing
4.50
Use tools to measure social
buzz and sentiment
4.00

3.50
3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
Ideally how would you LIKE TO measure the success of your loyalty program?

16

Are dashboards and reports important/effective?
Effective vs. Important
Dashboards / Reports:
• Breakage rate
• Point accrual
• Point redemption/conversion
• Channels
• Products (SKU)
• Offer performance
• Segment migration

7-point scale
7-Extremely Effective/Important, 1-Extremeley Ineffective/Unimportant

17

Performance dashboards/reports effectiveness
How effective do you rate your Performance Dashboard / Reporting capabilities?
Top 2 Top 3

Segment migration

Offer performance

Products (SKU)

Channels

Point redemption / conversion

Point accrual

Breakage rate

0 10 20 30 40 50 60 70 80 90 100

18

Performance dashboards/reports importance
How important are the below Performance Dashboards / Reports?
Top 2 Top 3

Segment migration

Offer performance

Products (SKU)

Channels

Point redemption / conversion

Point accrual

Breakage rate

0 10 20 30 40 50 60 70 80 90 100

19

Importance vs. effectiveness in reporting
7.00
How effective do you rate your Performance Dashboard /

6.50

6.00
Reporting capabilities?

5.50

5.00

4.50

Point redemption / conversion Segment migration
Offer performance
Point accrual Products (SKU)
4.00 Breakage rate Channels

3.50
3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
How important are the below Performance Dashboards / Reports?

20

Are certain capabilities effective/important?
Effective vs. Important
Analytics Capabilities:
• Modeling and predictive analytics
• Liability measurement and management –auditing
• Matching members to offers/ Offer optimization

7-point scale
7-Extremely Effective/Important, 1-Extremeley Ineffective/Unimportant

21

Importance vs. effectiveness in analytics
7.00

6.50
How effective do you rate your capabilities?

6.00

5.50

5.00

4.50

Liability measurement and
4.00 management - auditing Modeling and predictive analytics
Matching members to offers / Offer optimization

3.50
3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00
Within your loyalty program analytics, how important are the below?

22

WHY SHOULD WE CARE?


Retail cross-sell modeling

Customer/offer scoring; finding associated retailer and customer behavior


Offers looking for people


What we do when when
we have something to sell, Earn double points
to do, to promote… on Greek-style
yogurt

… who is the best
candidate to convert
without sacrificing
profitability?

• Category promotions
• Cross-sells
Buy three and get a
• Product introductions coupon for a free
• Partner offers frozen treat


People looking for offers


What we do when we want to
change the behavior of specific
members …

… what is the best offer to most
efficiently motivate the next
action?

• Come back, we’ve missed you
• What to buy next
• New member lock-in

Welcome to yourRewards. Happy Birthday. Enjoy a
Earn double points on your frozen yogurt on us!
third entry


WHAT’S HIDING IN
YOUR DATA?


A BETTER APPROACH IS NEEDED

User Driven
Freedom to Explore
Power to Discover
Collaborative
Responsive to Events
Any and All Data!

…visualization-based data discovery tools have far-reaching
implications for how business information is consumed….end-user
organizations should adopt use as a way to improve the success of their
BI program. - Gartner, June 2011

ANALYTICS
& DATA
DISCOVERY

Visual, Intuitive,
& Interactive
REPORTING STATS
Dynamic, Fast,
& Easy to Use
Useful, but Limited Powerful, but Highly
to Static Complex
Information Ad-hoc Q&A,
Customizable Difficult to
Predetermined Customize
Questions Only
Empowers All For Advanced
IT-dependent User Populations Users Only

Spotfire Value Drivers
Universal Adaptability Visibility Into the Unknown
Leverage a single analytics and data discovery platform Discover insights hidden in Big Data and Real-Time
to empower anyone, anywhere to make insightful Events to immediately identify strategic business
decisions opportunities or threats .

Self-Service Discovery Fastest to Actionable Insight
Freely explore data to any level of detail, radically Instantly turn insight into action by enabling anyone to
accelerating decision making, while dramatically reducing rapidly discover hidden insights and quickly collaborate in
dependence on IT context

DEMO


Thank you!
• Event follow-up email – presentation, survey results, whitepapers
• More information @ www.loyaltylab.com
• Email questions to loyaltylab@tibco.com
• Nov 6 Webinar - Success with Social Loyalty
forms.loyaltylab.com/webinar_ssl


Webinar On-Demand: The Power of Analytics to Drive Loyalty

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