Uber focused on data

uber

Uber is a people logistics service that uses a matchmaking model to connect customers directly with drivers to reduce prices for customers by optimising load capacity for drivers. It is now available in 53 countries and more than 200 cities and is revolutionising logistics and service using data. .

The app automatically detects the user’s position using GPS – so ‘riders’ can book a taxi with a single press of a button. Users can get an estimate of their fare by entering their destination. This is calculated by algorithms which consider the distance, prices of similar journeys, and the current Uber price rate.

uber app

Uber uses an algorithmic approach to account for differences in supply and demand in different areas. when supply out-strips demand prices are low, when demand increases the algorithm drives up pricing to encourage more drivers out and optimise revenue. This is called ‘surge pricing’. When demand outstrips supply in a certain area, surge pricing is applied and the usual fare rate will be multiplied appropriately. Users will be notified of surge pricing on booking, and can cancel the trip if they do not want to pay the increased fare.

When a the taxi is booked, a temporary bridge is created between customer and driver data allowing them to make contact and see each other’s location. Once the journey is over and the transaction complete, the exchange of data ends.

Uber scaled rapidly through partnership, using the best experts in any one area ( eg Google Maps, or best checkout system, or best driver id check ) and focused their development on the unique pricing model that optimises pricing to reduce prices for customers, increase occupancy rate for drivers, and drive customer growth and frequency for UBER.

UBER is changing the model for transport in cities around the world, with loyal customers, drivers clamouring to become an UBER driver, and a system determined to continually drive down pricing and increase service levels.

UBER has already changed the way transport works in London, picking up an UBER for shorter and well as longer journeys. replacing the need for a car at all. The future looks good.

 

Blow Up Bedrooms….

lifestyleairbnb

Data Pulse #23

When a few programmers and bloggers bought some air-beds , built a website and offered an air-bed with a coffee on their floor during a particularly busy conference season in San Francisco, they didn’t think they’d be creating a dis intermediation business to rival Marriott or Intercontinental Hotels.

Airbnb is a lodging rental platform with headquarters in San Francisco, California.

airbnb has grown staggeringly quickly over the past half-dozen years. The mind-boggling numbers show its incredible popularity; 1.5million listings in 33,000 cities in 191 countries around the world have attracted 65million guests – and counting.

 

Last June the company was priced at $25.5billion (above hotel giant Marriott’s $20.90bn), and ranked the third most valuable start-up business in the world, behind transportation network company Uber ($51billion), and Xiaomi, the world’s fourth-largest smartphone maker ($46bn).

airbnb has used data to deliver against the brand purpose, tell the brand story and build the customer experience . “Experience the world like a local” 

 

airbnb describes itself as a ‘community marketplace where guests can book spaces from hosts, connecting people who have space to spare with those who are looking for a place to stay.’ A super brand that is community led.

The hosts are business partners, and airbnb is led by what the business partners say, continually getting their opinion and gauging reaction to business challenges and opportunities. It quickly builds a sense of openness, trust and meaningful interacton to form a strong community.

Every year, some 5,000 hosts from more than 100 countries are invited to the company’s airbnb Open (the 2015 edition was held in Paris) and encouraged to talk about the nature of their work. It is a great opportunity to both connect with the hosts and understand how airbnb can help serve them better. It is also a good way to feel part of that broader global community and the local area.

airbnb ran an innovative campaign to engage not only hosts but visitors in the airbnb community. The One Less Stranger campaign – where 100,000 hosts woke up on New Year’s Day, 2015, to an email from airbnb’s founder Brian Chesky saying he had paid $10 into their bank account – was an instance when “full editorial control” was taken away from Airbnb. Brian wrote that we would like the hosts to do something to help someone else, and to meet someone new with that money, It was a $1million marketing campaign where we gave full editorial control to the hosts. Some people just pocketed the money, but the idea here is that you can allow people who are your biggest advocates to be your spokespersons, and do your marketing for you, on social media and word of mouth.

It all builds up to the goal that your brand is driven by community rather than people in a marketing department.

 ‘It’s far better to have 100 people love you than 100,000 people sort of like you.’

airbnb also use data to make a ever growing core of people love them . The platform has disrupted the traditional hotels industry by eliminating the middle man and connecting travellers directly with people who have space to offer. airbnb collects detailed data relating to how customers are using the platform and attributes much of its success to an ability to analyse and understand how to improve the service.

airbnb employs extensive A/B testing to score multiple configurations or designs of its website and apps. Different users will also be exposed to different ranking and recommendation algorithms – the variation they experience is then linked to their next actions – viewing patterns, bookings and ultimately reviews of their stay.

airbnb uses natural language processing to decipher users’ true feelings about their stay, finding this to be more accurate than simple star rankings (which, they hypothesise, are overinflated due to the personal contact between guest and host).

Must admit i was a little nervous using airbnb for the first time ,. Found a little room in deepest Shoreditch, better than the local Premier Inn and cheaper… but now i’m a convert

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.

Data is Magic for Disney

disney Magic band

“advanced technology is indistinguishable from magic”

Data Pulse #7

My god-daughter Rose Bolcato has just visited Disneyland Paris for her Birthday weekend over Easter. she loves the magic that is Disney. Disney  is the place to take your kids ( both small and grown up ones like me). The Disney brand is all about “Magic” and it’s critical to tell that story consistently.

Disney has invested heavily in its new ‘MagicBand’ technology that delivers an enhanced, data-driven experience for guests at Disney World.

The MagicBand, containing an RFID chip and a radio, connects visitors to a network of sensors around the park. The band allows guests to open hotel doors without a key, enter theme parks, use FastPasses for rides, and make purchases without a card.

The only information stored in the band is an identifier – all other data is stored remotely in the cloud. The MagicBands, sensors and supporting systems generate a rich stream of live data: who is visiting which parks, which routes they use, which rides they are visit, when they visit, queue lengths, food purchased, meal times, shows attended, gifts bought, bathroom stops, time spent in hotel rooms and more. This information allows Disney’s analytics team to make data-driven decisions to optimise the park experience so that visitors have a longer, more enjoyable stay – and spend more while they are there.

 

There’s more than one way to skin a cat

tflcitymapper 3

data pulse #18

Transport for London (TfL) has a purpose to ensure easy transport around London. It attempted several times to create customer friendly apps to use all the data from Train, tube and bus journeys. It couldn’t integrate the data and make a user friendly front end, to deliver this benefit for customers on its own.

TfL was very clear on its own capabilities : Good at Civil Engineering and its Purpose: Keep London moving.  Instead they took a different approach to deliver their commercial imperative: TfL made their live transport data available real-time through an open API for developers. So far over 5000 users have registered, and over 300 apps created using Open Data, The most famous is Citymapper

Citymapper has created a customer app where you can look real-time at transport options to get you A to B , ‘here to Work’, ‘Here to Home’ etc. via walking, cycling, car, bus, train and Tube. The app tells you how long the journey will take, when and when it leaves from, cost, changes required, and provides a route map. It even tells you when to get off the bus, and a friend when you’ll be arriving

Transport for London benefits from this by having access to rich data on the way people are travelling around London – they can improve their transport services for the capital based on these learnings.

London was the first city but Citymapper is now in 23 cities including Manchester, Paris, Hamburg, Berlin, Milan, Barcelona, Madrid, Rome, New York Chicago, Mexico, SaoPaulo, Tokyo and Singapore. The same system is now used to provide journey times and options at Heathrow into London, real-time on screens in airport arrivals

TfL are also exporting their model to other cities in UK and internationally, starting with the new City mayors in Manchester?

citymapper 2Citymapper 1

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 .

Easyjet have 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

easyjet2 (2)

 

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.

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