Data-driven Pop

Sprite Cherry LeBron

The Coca Cola Company is the world’s largest beverage company selling more than 500 brands of soft drink to customers in over 200 countries. It generates mountains of data – from production and distribution to sales and customer feedback, and the company relies of a solid data-driven strategy to inform business decisions at a strategic level.

In fact, Coca Cola was one of the first globally-recognized brands outside of the IT market to speak about Big Data, when in 2012 their chief big data officer, Esat Sezer, said “Social media, mobile applications, cloud computing and e-commerce are combining to give companies like Coca-Cola an unprecedented tool-set to change the way they approach IT. Behind all this, big data gives you the intelligence to cap it all off.”

Product development

Coca Cola is known to have ploughed extensive research and development resources into artificial intelligence (AI) to ensure it is squeezing every drop of insight it can from the data it collects.

 Fruits of this research were unveiled earlier this year when it was announced that the decision to launch Cherry Sprite as a new flavor was based on monitoring data collected from the latest generation of self-service soft drinks fountains, which allow customers to mix their own drinks. As the machines allow customers to add their own choice from a range of flavor “shots” to their drinks while they are mixed, this meant they were able to pick the most popular combinations and launch it as a ready-made, canned drink.

Healthy options

As sales of sugary, fizzy drink products have declined in recent years Coca Cola has also hooked into data to help produce and market some of its healthier options, such as orange juice, which the company sells under a number of brands around the world (including Minute Maid and Simply Orange).

The company combines weather data, satellite images, information on crop yields, pricing factors and acidity and sweetness ratings, to ensure that orange crops are grown in an optimum way, and maintain a consistent taste.

The algorithm then finds the best combination of variables in order to match products to local consumer tastes in the 200-plus countries around the world where its products are sold.

Social data mining

With 105 million Facebook fans and 35 million Twitter followers, social media is another hugely important source of data for the company.

Coca Cola closely tracks how its products are represented across social media, mining this gives insight into who is consuming their drinks, where their customers are, and what situations prompt them to talk about their brand. The company has used AI-driven image recognition technology to spot when photographs of its products, or those of competitors, are uploaded to the internet, and uses algorithms to determine the best way to serve them advertisements. Ads targeted in this way have a four times greater chance of being clicked on than other methods of targeted advertising, the company has said.

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Everyone Everywhere True North

customers 14.jpg

I learnt early in my career that Service organisations have millions of brand touch points delivered everyday by colleagues who interact with customers. Once you have defined the Customer Offer and Brand Story, aligning all the Brand touch points to give a consistent Brand Story is critical for success. This is the  essence of the “True North” turn around plan at Co-op Food. There are lots of ways to do this:

Tesco has implemented Yammer – an ‘enterprise social network’, allowing them to realise a vision of having ‘over half a million valued colleagues effortlessly connected and aligned:  Everyone, Everywhere’. To make this work, Tesco had to also change policies and processes: Tesco added in-store wifi and changed their policies to allow store staff to take their personal mobiles onto the shop floor.

Coop has changed the policy that allows colleagues to use their own mobile phones in the convenience shops , and they have uses several different tools ( WhatsApp, Slack ) to enable colleagues to communicate more clearly with each other. Posting pictures, chating and solving their own problems.

This has helped to create a sense of community between colleagues that extends across stores. Colleagues use the network to celebrate success, share learnings, ask questions and find answers. For example, bakers might share images of their morning display – and the service has even been used to share excess stock with nearby stores that are running low

Yammer has encouraged greater cooperation and a healthy sense of competition. Directors are also able to monitor conversations and can react quickly if required.

Grab a Breakfast at Greggs

greggs

It’s not something that you would usually associate with Greggs The Pasty Champion but they have now entered the Digital world and starting to create an omni-channel customer journey that has the potential to change the high street and take on Starbucks at their own game.

This week Greggs updated it’s new ‘Greggs Rewards’ mobile payment app designed to reward its customers for their loyalty whilst making shopping across its 1,700 shops more convenient, quicker and easier.

The rewards app is the first entirely digital loyalty scheme launched by a UK food-on-the go retailer that eliminates the need for customers to carry a separate loyalty card or their wallet when they shop.

By registering for a Greggs Rewards account via the app or online at http://www.greggs.co.uk, customers can top up their accounts with any amount from £5-£50 using their debit/credit card or with the added safety and simplicity of PayPal, allowing them to pay securely in-store with their smartphone.

Greggs Rewards will not only allow customers to pay swiftly for their purchases, but also reward them with exclusive treats and rewards built in to the app.

These offers include a free Greggs’ breakfast when opening an account with at least £20, hot drink incentives (e.g. buy 7 coffees get your next free), a birthday treat and a monthly prize draw for the chance to win an i-Pad when shopping using Greggs Rewards. Furthermore, PayPal is also giving the first 10,000 Greggs’ customers a free £5 bonus credit to spend when they sign up and register for auto-top up with PayPal.

Greggs Rewards has been developed using the Eagle Eye digital transaction network which enables retailers, in real time to connect with potential and existing customers, to deliver relevant offers, rewards and services that can be redeemed securely through any point of sale. The digital solution removes the need for paper vouchers or plastics cards, making for a seamless shopping experience that eliminates fraud.

Greggs have built a great machine with IT and payment partners the challenge exists whether they have also built the internal capability to learn how to follow the customer and add value in a segmented and targeted way.

 

 

 

 

Three steps to Driving Customer Analytical Success

innovation

There are three simple steps to ensure Customer Analytics drive commercial success in an organisation

  1. Strive for excellence in customer analytics matters (vs merely good average).
  2. Establish a culture that values fact-based decision making and analytics
  3. Secure senior management involvement in customer analytics.
  1. Strive for excellence in customer analytics matters (as opposed to a merely good average). More than 85 percent of companies that report extensive use of customer analytics (in terms of IT, analytics, and its execution) claim their company achieves a significant value contribution from customer analytics. This compares with around 20 percent for low users of the function, and some 30 percent of moderate users—suggesting that companies start to reap substantial benefit from customer analytics only when they achieve excellence, i.e., when their function can be considered state of the art. Just moving from a low to a medium level of maturity will merely generate limited success

This has particularly important implications for managers and their decisions on what needs to be invested in their organisation’s customer analytics to be competitive in the future. They need to determine the performance gap between their current customer analytics and state-of-the-art customer analytics in their industry, and to ensure that their additional spending on customer analytics stands a fair chance of bridging this gap. Otherwise the additional spending will—despite the best of intentions—turn out to have been a sunk investment right from the outset (because it will not pay off eventually).

2. Establish a culture that values fact-based decision making and analytics. Vital is a culture that is not focused purely on IT and analytics topics, but approaches customer analytics holistically. Although investments in IT and skilled employees are important, these investments alone will not deliver value. Leadership that expects fact-based decisions and an organization that can quickly translate those decisions into action are qualities more likely to lead to success than companies focused exclusively on IT.

First, we find that the execution and organizational aspects of customer analytics (such as a culture of fact-based decision making, analytics valued by the front line, management attitude and expectations) correlate most with the value contribution of customer analytics (Exhibit 4). This suggests that IT and analytics expertise are obviously necessary to create value from customer analytics, but it is the culture and organizational setup that moves the needle.

Secondly, interesting findings emerge when we focus on the sub-dimensions within analytics, IT, and execution that are most relevant to ensure that customer analytics creates value. It becomes apparent (see Exhibit 4) that having pragmatic and actionable foundations with the right cultural mind-set in place within the organization is more important than the perfect solution.

Within execution and organization, for instance, fact-based decision making and management expectations are more important than the speed at which these insights are put into action. Within analytics, the focus is on delivering the right actionable insights, and less on the fast development of new models. Looking at IT, a similar pattern emerges: a pragmatic 360° data mart that builds the foundation for customer analytics is more important than the complete (automated) linkage of all IT systems.

A key success factor is therefore to examine customer analytics holistically, including IT, analytics, and execution/organizational setup, and to pragmatically improve on all dimensions.

3 Secure senior management involvement in customer analytics. High-performing companies are led by data-savvy C-level executives who understand the importance of and involve themselves in customer analytics. We find that of those companies where senior management is not involved extensively, only 28 percent report a significant value contribution of customer analytics. This contrasts with 69 percent of companies with senior management involvement in customer analytics that say that customer analytics drives value (Exhibit 5).

Specifically, looking at the level of management that should be involved, it becomes clear that what drives the value contribution is top management/board involvement. If the company has established a role within the top management team (TMT), such as via a chief commercial officer, more than half of the respondents (53 percent) stated that customer analytics contributes significantly to value creation. If only senior management is involved but not the TMT, this drops to just 29 percent, close to the value of no senior management involvement at all (20 percent).

 

 

 

Dunkin Donuts Data Perks

dunkin donuts coffee and donut

Dunkin Donuts are just beginning to establish themselves in UK but in USA are the largest coffee retailer, and have applied data driven analytics and technology effectively to improve the customer journey.

A coffee and a Donut is one of the most popular calls, and is the mainstay of this convenience foodservice retailer.

Dunkin Donuts recognised the key to convenience retailing lay in the palm of their customers hands and build a customer journey revolving around the smart phone. They created an app based journey where customers could pre-order, collect and pay for their Dunkin Donut. It started with a minimum credible product, simple sign-up and sign-in and has developed into one of the most recognised programmes in USA.

. They understood the customer journey not in part but fully and recognised they were a convenience foodservice retailer and making a coffee and a donut easy for customers would drive more customers to make more visits.

Dunkin Donuts wanted to reward loyal guests in a fast and convenient manner, and provide an overall superior customer experience. Very similar to the goals that Whole Foods had in mind when launching its own loyalty program.

Understanding the Commercial Goals: Dunkin Donuts used advanced analytics to understand the commercial imperatives, and what would best drive them. They recognised that there was a bigger upside from increasing visits and number of visits that slightly increasing the average basket. ( There are only so many coffees and donuts you can eat in one sitting , but it’s important to be the coffee house of choice when there is a choice of 2-3 on the street.

Design a Customer experience that delivers the commercial imperative: They were clearly focusing on driving additional visits from additional customers because they designed a DD Perks programme that rewarded frequency vs average basket.

The Points based reward Rewarded Frequency: Assuming people ordered a coffee and a donut they earned points which became a free coffee every 10-20 visits.  High value to the consumer and relatively low cost to Dunkin Donut.

They also made it easy and intuitive to sign up, and in addition to the basic points structure, Dunkin’ also included features to drive more sign-ups. Sign up on an app downloaded onto their phone,

Make it easy to get to the first reward Customers get a free reward when they join and on their birthday,. That emotional feeling of drinking a free coffee prompts more usage of Dunkin Donut

Make it more rewarding: once the first reward has been claimed targeted offers for incentives and bonus points based on consumer behaviour enable fast rewards accumulation

Make it Easy to Use / Pay Customers must pay with a registered DD payment card at participating locations, or more importantly customers can connect their DD cards to their phone, which enables mobile payments and gets more customers (hopefully) to download the Dunkin’ mobile app.

One last benefit of the program is that customers can share rewards with friends, which is high on many customers’ lists as a desirable loyalty program feature.

Technology developments to make it Easier :  with the onset of Apple Pay, Dunkin Donuts enable mobile ordering through its app. Customers on their way to Dunkin’ Donuts can get their order in quicker, and Dunkin’ can speed up its line. In addition, Dunkin’ also announced interest in Apple Pay as a way to make payments easier for consumers

 

Three key outtakes for success:

  1. Be Clear on the commercial imperative: frequency or average spend
  2. Make it simple, rewarding to use
  3. Integrate across the whole customer experience to make it easy for the customer

Dunkin-Donuts shop

Easyjet flys easy

easyjet4Data Pulse # 434

Removing Friction in the customer journey to make it easier is critical for future success, and is important as a way of telling your Brand story , particularly if you are called EasyJet. Digital transformation can accelerate this change if applied with a clear focus on the commercial goals combined with deep understanding of the customer journey .

Carolyn McColl at Easyjet has made great strides at using digital technology to transform the organisation making it easier for their customers to travel, simpler for their colleagues and cheaper for the organisation. They started with a clear understanding of the commercial goal: More customers flying more often on Easyjet, and developed a series of customer propositions that made it easier to fly driven around the key hardware that most travellers provide themselves: The Smartphone.

Easyjet app developed with key functionality

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1) Book Flight

2) My Flights Booked

3) My Flights Tracked

4) Mobile Check-in and Mobile Boarding Passes.

5) Option to book HireCare & Hotel.

All personalised through MyEasyjet traveller registration , that uses customer data held, (including passport, address credit card details ) geolocation of all data, previous flights searched and taken to make it easier for booking.

I am just heading off skiing flying Easyjet:

  1. The email alerts prior to travelled felt timely & relevant: adding personal information, and checking.
  2. The mobile boarding pass removes friction in finding a printer to print a boarding pass and then not losing the boarding pass as you travel through the airport .
  3. The Flight Status monitor is an easy way of seeing ahead of leaving for the airport if flights are delayed or reassurance.

Easier Self Serve Baggage Drop.

Easyjet now have self serve baggage drop in Manchester as well as Gatwick , which makes it easier and quicker to drop off baggage rather than queuing

What Friction Points Next?

TO AND FROM THE AIRPORT

I would appreciate Easyjet helping me get to the airport and then to my onwards destination. It would be easy to partner / connect with Google or Citymapper to provide live travel options on drive times, Trains/ buses to catch, or even a link to Uber to get a ride to and from the airport.

WALK THROUGH AIRPORT STRESS FREE.

I would really appreciate being walked through the airport with digital alerts that help me understand which gate to go to , the time to gate, and alerts on how busy it is at anyone time.  This technology is available and has been piloted in London City Airport by Dan Byles and the team at PlanetIT. So watch out for a digital concierge helping you through the airport and ensuring you have enough time and and not be rushed.

Eat, Drink and Shop at your pace.

I’ll even be able to order ahead and have my Starbucks coffee and porridge waiting for me as I arrive through security !

I am a demanding customer but I am really just like everyone else just more vocal.

Tech City Coffee

starbucks shop

Understanding customers better has always been critical. Identifying the heart of the commercial challenge and developing customer led solutions to solve them is critical.

Meeting customers needs and simplifying the customer experience using data and digital is a key skill of the new Chief Marketing Officer and delivering the most relevant, inspirational messaging and experiences through advanced segmentation and targeting is a skill every CMO must ensure is delivered.

Starbucks do that

Starbucks carries only 200SKUs but has managed to meet the needs of customers with relevant offers and communications whoever or wherever you are. 

How?

Starbucks Influencing Wheel

Starbucks created a segmentation for customers by day of week, time of day and purchasing details, creating the Starbuck’s Influencing Wheel: which helps frame the problem in terms of what they know about a customer.  Transaction data allows Starbucks to know what behaviours can be observed at purchase time. External f

  1. ENTERPRISE Influences / Transaction data allow Starbucks to know what behaviours can be observed at purchase time ( Food, Beverage, in-store experience etc.)
  2. EXTERNAL Influences ( Weather, Competitors, Events, Community) may impact the way customers behave so Starbucks collected data to simulate local conditions that may affect purchase behaviour.
  3. CUSTOMER Characteristics ( occupation, demographic, need state, day part, media channel preferences etc.)  Not all behaviours can be observed in a transaction so Starbucks deploy .a social listening strategy in order to capture some aspects of a customers lifestyle and how products& services may fit into that lifestyle

starbucks influencing wheel

Customer needs for coffee on way into work, is different to lunchtime or afternoon during the week, and again different to weekend morning coffee. This data is combined with open data to give highly tailored and timely communications with live triggers- offers in the right place at the right time. Arriving at Manchester Piccadilly rail station for early (5-55am)  train to London I get an alert on my phone to pick up a Starbucks coffee for the train. and it really does taste sweet that early in the morning…..

Starbucks also improved the customer experience by being one of the first retailers using a digital app that allows payment through Apple pay or creating a Starbucks wallet that is automatically topped up.

Starbucks are leading the way in delivering the power of value based customer delivery, leveraging data driven analytics and digital technology to drive L4L growth.