Water into Wine
Have you heard the story about the dude who rocks up to a party? It goes something like this. He arrives and everyone there was moaning. “We have nothing to drink.” So this guy, noticing there was a whole lot of water around, performs a minor miracle and turns the water into wine. Everyone knew there was water, but it took turning it into something useful for the party to get started.
Fast forward a couple of thousand years and there is a similar story today, just replace ‘water’ for ‘data’ and ‘wine’ for ‘insight.’
- Marketing to IT: “I am looking for insight”
- IT: “Sorry, we don’t have that. We have a load of data though that we capture, we can send it to you in excel. Will that do?”
- Marketing wonders what IT does all day. IT wonders why Marketing make out that their job is so hard.
4 days and many excel spreadsheets later…
- Marketing manager sends highly untargeted email to everyone in the database for an offer for 25% off product X between 08:00 and 10:00 that only 10% of their customers buy, with the aim to grow sales.
Two weeks later…
- Margins decrease on product X. No one knows who redeemed the offer but it looks like 4% of the customer base did. Everyone thinks it was a success based on the email click through rates.
Is this really how far we have come given all the aggregators, extractors and data visualisation tools? Knowing that there is potentially valuable data, but unable to turn it into actionable insight.
Let’s try and replay the above story but with a bit of magic applied to the approach.
- Marketing logs into a web dashboard that contains all manner of insight on customer segmentation profiles based on purchasing preferences and behaviour, with the aim of launching a campaign that will grow sales of product X. Allowing IT to be left to do the work they really need to do.
- After identifying three different segments: Group A, who regularly visit between 08:00 to 10:00; Group B, who buy associated companion products Y & Z; and group C, customers who buy product X but have not purchased in the last 30 days.
- The campaign is set to launch with 3 different messages tailored to each target group.
- Throughout the campaign insight is available about the performance of each target group and as a whole. Marketing can see that of Group A, 20% activated the offer and 10% redeemed resulting in higher average basket value between 08:00 and 10:00. Of Group B, 40% activated and 12% redeemed, leading to more customers purchasing between 08:00 and 10:00. Lastly Group C, 15% activated and 9% redeemed, which meant 81 returning customers who had gone cold.
- Then, the post campaign Holy Grail — attribution. Knowing with certainty that the offer actually changed customer behaviour and the ability to monitor the continued purchasing performance of product X versus its pre campaign sales.
For the big supermarkets with 2,000+ people crunching data all day long and the cost of millions of pounds, this is possible. For the vast majority of retailers and brands it is not possible.
Enter Yoyo. By combining customer profile and basket data we are able to deliver the ideal world. We think every retailer should have Tesco Club Card style insight. Instead of needing 2,000+ people and millions of pounds — you just need Yoyo.
We perform magic, not miracles, with data to enable retailers to take a far more personal approach to marketing and loyalty than has ever been possible before. Making you the most popular dude at the party.
Michael and the Yoyo team.
BTW — don’t forget to check out www.yoyowallet.com/playground for details about our Next Generation Commerce hack event.