Multichannel Personalization At Scale: Building Incremental Value With #dunnhumby

dunnhumby’s context  24 years  28 countries  1,000s of clients  400,000,000 customers  All media channels

Relevance wins Campaign Events

Media ad spending increases every year, so what if… Total Media Ad Spending Worldwide (billions) note: includes digital (online, mobile), directories, magazines, newspapers, outdoor, radio and TV source: eMarketer, Dec 2012 you could connect your media audience to actual purchase behavior? you could vary your message based on that purchase behavior? you could optimize your media mix via traditional, digital and social media? you could measure the results… did you have an impact on their behavior ? you could use this information to shape your advertising strategy and implementation?

Paid Media Owned Media Earned Media SHOPPER DM SMS Display SEM TV Website / Mobile Apps POS Social Platforms WOM The answer begins with the shopper

Shopper data provides clarity GRPs campaign buzz open rates click-throughs online impressions FROM: traditional measurement… size of audience TO: optimal measurement… size of impact sales visits trial & repeat HH engagement

Target, activate and measure results of media plan TARGETACTIVATEMEASURE Personalized campaign educates participants and creates action Media metrics captured for target audience Target HHs based on media and shopper behavior

Right Message Right Vehicle Right Time with the using the at the Ensure that each element of the program is relevant to customers Right Consumer Content Occasion Offer Direct Marketing / Digital CRM TV / Mass Daypart/Week Path to Purchase Seasonality Loyal vs. Non-Loyal Target based on purchase behavior Right Results Test vs. Control Measure incrementality with the

1.Culture: Shoppers’ lifetime value 2.Shopper first – not brand, not store 3.Leverage shopping, media, context insights 4.Content that delights and excites 5.Media that reaches and engages 6.Measure incremental sales and advocacy Making Digital Personal

Digital Campaigns Share With a Friend Solo 10 Themed Event Loyal Customer Mailing

Digital Results Our “Best Customer Communications” perform well above industry averages for engagement due in large part to: –Targeting offers based on HH purchase behaviors –Ranking multiple offers within a campaign based on HH relevancy –Consistent branding & messaging that is focused on customer-first 11

Digital Coupon Relevancy

Innovation Success Story

Each media solution delivers value across a range of objectives

What’s the value of an integrated, cross-channel campaign? Drove more buyers to brand Drove purchases of more units

Drive awareness & trial of a new innovation product 15% lift in HH product penetration 5x sustained repeat purchases 10% incremental sales lift 52% coupon redemptions

The Plan Drive awareness & trial using a cross channel strategy Objective HHs who were decreasing segment buyers with alternate category purchases remained flat Targeting Direct mail, word of mouth & display advertising to shoppers Channels 12 week program Timing Test effectiveness of multiple offers Creative

Similar Online, Direct Mail and WOM message content Direct MailOnline Ads Download coupon Free trial offer Drove to retailer landing page Try new product Multiple offers tested Included printed coupon Word of Mouth Sample new product Pass along coupons Included printed education

Each of the campaigns began very soon after the product launch

Integrated program drove additive uplift in HH penetration Combining Direct Mail with Online and Word of Mouth increased HH penetration by 2 percentage points compared to control markets. +15% +17%

Campaign saw high coupon redemptions Direct Mail Online 50% of responders 15% Exposed HHs Word of Mouth 15% Pass Along HHs

Uplift also be seen in the incremental $ spend per exposed household +2.2% +2.4%

Note: New Buyers defined as not purchasing product within 13 weeks prior to first exposure Drove strong trial and sustained 5X repeat purchase

Conclusions Leverage capabilities to ensure that each element of the program is relevant to customers Ensure media solutions deliver value in varying ways and consider the role of each solution relative to objectives and strategy Develop Integrated Shopper Marketing programs reach the right customers at the right times Measure everything to evaluate current programs Optimize by capturing and applying best practices

Thank You Dawn Shirley - dunnhumbyUSA