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.

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

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

how to make a c-store more Convenient

 

 7-11

Data Pulse #711

7-11 seized an opportunity to use the existing technology that most of its shoppers already had in their hands as they entered the store, and it did it from a standing start using AGILE methodology like a baby learning to CRAWL, WALK, RUN

 7-11 can now push real-time, rules-driven offers to customers through the 7-11 app.

The decision was made to launch a mobile app in efforts to deliver what the customer wants, when they want it, where they want it. Offers take account of rich data about the customer, both live and historic:

Real-time transactional: current basket, comms received, channel, geofencing

Real-time contextual: location, location temperature, time of day.

Historic modelling: transaction data, profile data, modelling scores.

Insights gained from feedback to offers over time is incorporated into business rules in a process of continuous refinement.

So, for example, on a cold morning, 7-Eleven might push hot drinks offers. At midday, some customers might receive offers for packaged lunches while others receive promotions on fresh foods. In the evening, lifestyle insights might be used to determine that some customers might be tempted by pizza and a DVD rental.

7-11 2

To build this capability, 7-Eleven is implementing a Crawl, Walk, Run process:  essentially an AGILE approach to building a customer and data-led convenience store customer experience

  1. Crawl: build the customer database, launch mobile app, introduce offers.
  2. Walk: integrate self-reported data into profiles, feed segmentation and modeling into communication strategies, increase volume of membership, transactions and offers.
  3. Run: launch programmatic loyalty (moving from offers to earned rewards), incorporate unstructured social/web data, advanced analytics, customer engagement.

7-11 3

The app also features an Idea Hub, where engaged customers can offer suggestions for ways 7-Eleven might improve stores, the app, or any other part of its offer.

 

Segmentation is easy

 

netfix house of cards

 data pulse #37

Delivering the most relevant, inspirational messaging and experiences through advanced segmentation and targeting is a key advanced use of data. Segmentation itself is relatively straight forward, we all do it all the time. The skill for CMO lies in bridging the technical teams and the business imperatives to develop segmentation that delivers on commercial objectives

Netflix is an organisation that uses data in three of the advanced states. Netflix micro-tagging of vast content archives allowed creation of nearly 77,000 film segments, rich data, views, searches , times, pauses and more is used to build behavioural profiles and predictive algorithms give uniquely targeted recommendations.

The segmentation techniques are not dissimilar to the segmentations that Tesco, Sainsbury’s and Coop Food built for segmenting members. Both cluster users based on attributing product features to films / products and then clustering film watched/ products bought using analytics.

The difference is the Volume, Velocity and Veracity of data used.

Coop Food apply 7 segments to members annually,

Netflix create 77,000 segments on daily basis, continually refining which segment members are in so better able to predict your best next film.

More complex isn’t always better, as organisations need to WALK before they can RUN, and align people and processes before they build more complexity. Coop is now using customer segmentations and tools and processes for building ranges and promotional plans, and continually building and refining.

Customer focus, data-driven to deliver commercial imperatives.

Building more sophisticated segmentations will develop but add value if they are aligned to deliver commercial objectives, so creating strategic and operational capabilities

 

 

Creating C.I. from B.I. for Customers

 

British Gas

Data-Pulse #69

Using data- driven analytics and technology to create new services that improve the Customer Experience by creating CI (customer version of BI) has emerged recently:

British Gas and Southern California Electric:

The development of SMART meters has revolutionised the available data from Energy. British Gas connect multiple sources of data to display personal energy use in simple terms: not just kW usage per day/ hour but cost per day/hour, with comparisons to average houses in the area, all presented in easy to use tables and graphs.

British Gas Hive 2

It provides clear practical information that delivers “Informed Energy”. It tells me last week it cost £3 a day to heat my home, and if i turned the thermostat down by 2 degrees i would save £1 a day……. giving me control

California Electric have used variable and peak demand pricing in California to manage energy use in area where there are energy restrictions.

The creation of Hive by British Gas allows remote control of customers’ home central heating, again with an excellent customer experience, allows customers to run their home more efficiently. I can turn the heating on as I come home from work, or manage remotely my teenage daughter who has turned up the temperature before going out herself.

British Gas Hive

Hive will continue to develop as IoT connects more devices to create a House management system.  your Fridge will be connected via IoT to electricity supply and it will automatically switch itself off in periods of low use ( night time ) when no energy is needed to maintain temperature.

Hive have just launched new products in the Hive product family:

  1. Hive Active Plug to connect home electrical appliances via your phone. eg iron or hair straighteners or schedule lamps to turn on and off when on holiday
  2. Hive window or Door Sensor: you can find out if a door is opened or closed when you are away from the house , they’ll tell you by sending an alert to your phone.
  3. Hive Motions Sensor: extra peace of mind with small and sophisticated sensors sending alerts to your phone if movement spotted in your house. 

british gas hive 1

 

The new CMO agenda

 

data pulse#11

Designing Human & Digital Customer Experience is the CMO’s Top Priority

Making the customer the centre of the universe is a battle cry across virtually every industry. And CMOs — working in concert with CIOs and business-unit heads — are leading that charge. This battle is not business-as-usual, for the following reasons:

  • Traditional loyalty structures are eroding, causing companies to have to work harder to retain customers or risk driving up churn.
  • Customers expect high levels of personalization, forcing companies to design experiences as close to the individual level as possible.
  • Agile digital companies are seeking to disintermediate the relationship between both traditional digital and brick-and-mortar companies and their customers.
  • Companies must now differentiate on the experiences they deliver to customers.

Each of these forces creates challenges; more importantly, the additive impact of these forces mandates deep-rooted changes in a company’s strategy and operations. To state the obvious, customers neither understand nor care about how hard it is to deliver consistent, quality and personalized experiences. That is the privilege of having market power.

Taking stock, the CMO’s agenda now looks more and more like the CEO’s or COO’s agenda.

The agenda

The CMO’s agenda can be separated by a line of visibility: some pieces customers can see, and some they cannot.

Key initiatives such as strategic positioning, brand and loyalty programs are traditional CMO agenda items.

The new and most important item is designing consistent, high-quality, and personalised experiences across both human and digital touchpoints.

The need to differentiate on the basis of experience is really what drives the deep-rooted operational changes below the visibility line. In most cases, delivering differentiated experiences is not business-as-usual; it will require more severe structural and operational changes such that a company looks and operates differently than it does today. The CMO agenda now consists of:

  1. Making organisational changes to better align capabilities and ensure a seamless delivery of experiences across human and digital touch points.
  2. Transitioning process design from being efficiency-focused to customer-focused.
  3. Making hard changes in people and culture, including leadership, new roles, competencies and a customer-focused culture that fuels the business.
  4. Putting in place an analytics capability to enable data-driven, personalised journeys.
  5. Initiating or accelerating the business technology agenda to improve technologies that deliver customer value and drive growth.

Combined, these efforts tell us that companies, and CMOs specifically, need to think hard about making a fundamental shift in their operating model. To add to the complexity, changes to the operations across the company need to be sufficiently cohesive to ensure they don’t damage or create uneven customer experiences.

For better or worse, this is what is in front of many CMOs today — to lead the charge to understand the consumer mind set in the digital age and truely become a customer-obsessed organization. This isn’t veneer or some clever tagline. It is the hard work to differentiate and win in the Age of the Digital Customer

 

10 thoughts on exponential age

hands

The world is changing rapidly and that change is accelerating.

In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide.  Within just a few years, their business model disappeared and they went bankrupt. What happened to Kodak will happen in a lot of industries in the next 10 years – and most people don’t see it coming.

Did you think in 1998 that 3 years later you would never take pictures on paper film again? Yet digital cameras were invented in 1975. The first ones only had 10,000 pixels, but followed Moore’s law. So as with all exponential technologies, it was a disappointment for a long time, before it became way superior and got mainstream in only a few short years.

It will now happen with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs.

Welcome to the 4th Industrial Revolution. Welcome to the Exponential Age.

Here’s 10  thoughts :

  1. Software will disrupt most traditional industries in the next 5-10 years.Uber is just a software tool, they don’t own any cars, and are now the biggest taxi company in the world. Airbnb is now the biggest hotel company in the world, although they don’t own any properties.
  2. Artificial Intelligence: Computers become exponentially better in understanding the world. In the US, young lawyers already don’t get jobs. Because of IBM Watson, you can get legal advice (so far for more or less basic stuff) within seconds, with 90% accuracy compared with 70% accuracy when done by humans. So if you study law, stop immediately. There will be 90% fewer lawyers in the future, only specialists will remain. Watson already helps nurses diagnosing cancer, 4 time more accurate than human nurses. Facebook now has a pattern recognition software that can recognize faces better than humans. By 2030, computers will become more intelligent than humans.
  3. Autonomous Cars: In 2018 the first self-driving cars will appear for the public. Around 2020, the complete industry will start to be disrupted. You don’t want to own a car anymore. You will call a car with your phone, it will show up at your location and drive you to your destination. You will not need to park it, you only pay for the driven distance and can be productive while driving. Our kids will never get a driver’s license and will never own a car. It will change the cities, because we will need 90-95% fewer cars for that. We can transform former parking space into parks. 1.2 million people die each year in car accidents worldwide. We now have one accident every 100,000 km, with autonomous driving that will drop to one accident in 10 million km. That will save a million lives each year.Most car companies may become bankrupt. Traditional car companies try the evolutionary approach and just build a better car, while tech companies (Tesla, Apple, Google) will do the revolutionary approach and build a computer on wheels. I spoke to a lot of engineers from Volkswagen and Audi; they are completely terrified of Tesla.
  4. Insurance Companies will have massive trouble because without accidents, the insurance will become 100x cheaper. Their car insurance business model will disappear.
  5. Health:  There will be companies that will build a medical device (called the “Tricorder” from Star Trek) that works with your phone, which takes your retina scan, your blood sample and you breathe into it. It then analyses 54 biomarkers that will identify nearly any disease. It will be cheap, so in a few years everyone on this planet will have access to world class medicine, nearly for free.
  6. 3D printing: The price of the cheapest 3D printer came down from $18,000 to $400 within 10 years. In the same time, it became 100 times faster. All major shoe companies started 3D printing shoes. Spare airplane parts are already 3D printed in remote airports. The space station now has a printer that eliminates the need for the large number of spare parts they used to have in the past.At the end of this year, new smart phones will have 3D scanning possibilities. You can then 3D scan your feet and print your perfect shoe at home. In China, they already 3D printed a complete 6-storey office building. By 2027, 10% of everything that’s being produced will be 3D printed.
  7. Work: 70-80% of jobs will disappear in the next 20 years. There will be a lot of new jobs, but it is not clear if there will be enough new jobs in such a small time.
  8. Agriculture: There will be a $100 agricultural robot in the future. Farmers in 3rd world countries can then become managers of their field instead of working all days on their fields. Agroponics will need much less water. The first Petri dish produced veal is now available and will be cheaper than cow-produced veal in 2018. Right now, 30% of all agricultural surfaces is used for cows. Imagine if we don’t need that space anymore. There are several startups that will bring insect protein to the market shortly. It contains more protein than meat. It will be labeled as “alternative protein source” (because most people still reject the idea of eating insects)
  9. Longevity: Right now, the average life span increases by 3 months per year. Four years ago, the life span used to be 79 years, now it’s 80 years. The increase itself is increasing and by 2036, there will be more than one year increase per year. So we all might live for a long long time, probably way more than 100.
  10. Education: The cheapest smart phones are already at $10 in Africa and Asia. Until 2020, 70% of all humans will own a smart phone. That means, everyone has the same access to world class education.

#data centric CEO of the future

talktalk-ceo-dido-harding

Recent data breaches show  , once again, the issue of cyber-security, and the apparent ease with which it can be committed. Looking after their customers’ data as if it were their own must be the first priority of that business, thus the rise of a new, data-centric CEO, and a new data-centric Chief Customer Officer.

The truth is that no one really wants to think about or discuss cybercrime; not only do consumers not seem to understand the breadth and depth of what is actually happening on the dark web, they don’t really want to sacrifice any of the free services they receive in exchange for their personal data – so they stick their heads in the sand and hope for the best.

Any business wouldn’t exist on the high street if it didn’t lock its shops up at night, or have a team of “loss prevention experts” that ensured people didn’t just walk in, pick up and walk out with stock or money. Cyber security is just like any other security or loss prevention, just digital and in “cyberspace”

Additionally, consumers will have to take much more responsibility for their personal data. Currently in love with the “frictionlessness” of many an app or service online, they eagerly exchange more personal data than is probably necessary; such is the pull and promise of convenience.

Organisations need to think about customers data being their own data not the organisations and they need to take treat it as if it belonged to each and everyone of their customers. If they don’t look after it in the way that their customers expect, they will lose trust and ultimately lose their customers and their business.

Customers will choose the brands that they trust:  It is very possible that one day it will be ‘choosers’ who demand of the brand that it signs up to their terms and conditions, not the other way around.

Starbucks data driven mobile approach

starbucks

Starbucks have adopted a data driven mobile first approach to making the customer journey simpler and easier in its coffee shops world-wide. 

Innovating and transforming the Customer experience by leveraging data-driven analytics and technology is critical for success in a 21st Century convenient foodservice retailer. 21% of Starbucks transactions are now completed via mobile … in store at the till using Apple Pay via app or using Starbucks Mobile Order and Pay . What’s more is Starbucks processes more than 6million Mobile Order and Pay transactions a month globally.

Mobile Order & Pay is available on iOS and Android . It’s a relatively new feature of the popular Starbucks mobile app that allows customers to place and pay for an order in advance of their visits and pick it up at a participating Starbucks location. Following successful launches in select US cities , mobile ordering is emerging as the fastest and easiest way for Starbucks customers to order ahead , then pay and pick up their purchases, providing on-the-go customers a simple and quick alternative to get their favourite coffee. Massive in USA and beginning to be trialled in UK,There’s a trial store on Tottenham Court Road.

The Mobile Order and Pay feature allows customers to choose a store from a (Google) map view , browse , select and customise drinks, view the estimated time the order will be ready and pre-pay the order. All within the Starbucks app, and integrated into the existing Starbucks app, and my-Starbucks Rewards loyalty programme. A simple easy way to sign up and earn Stars

Starbucks are leading the way as Tech leaders in convenience foodservice, using data and technology in a way that McDonald’s , Burger King and Dunkin’ Donuts will need to respond to rapidly if they want to respond to customer needs.

 

 

Cyber Security: be paranoid not afraid

cyber security 2

What you need to know about Cyber security. 

I recently attended a workshop with several Chief Data Officers and led by Dr Phil Jones MD and Head of Cyber Security for Airbus Defence and Space, and it focused minds on the challenges around CYBER SECURITY. 

Lots has been written about Cyber Security. The new Cyber World of Big Data and connected or networked devices is GOOD. The digitally connected world is an opportunity for the 21st Century, with data stored, processed , discovered and used to make the world better and easier. The CHALLENGE around Security is the Risk and Danger if not properly looked after. 

Cyber Security should be on the mind of all CEOs but in essence is part of any retailers loss prevention team. We wouldn’t leave a shop without a front window, or leave the doors open or unlocked during the night when no one is there. So we should just orientate ourselves to thinking about Cyber Security in the same way we look at Loss Prevention. 

There are 3 categories of Cyber Attacks and Cyber Security

  1. Hacktivists
  2. Cyber Criminals
  3. Nation State Asymetric Warfare.

Cyber Attack costs money : the costs of cyber attack are in the P&L: operational, financial and intangible assets on the balance sheet: brand image / trust. 

Organisations need to have strategies against all three types of attack: . 

  1. Most Hackers attack organisations where there is a large amount of Kudos to be gained from exposing them ( eg Ashley Madison  ) and/ or its relatively easy compared to other sites.The best defence against Hacking attack is to have an organisation that hackers love and trust  ( relatively ) and wouldn’t want to expose, and make it difficult enough to stop them trying ( because there are easier places to hack for the same kudos) 
  2. Cyber Criminals: Go where it’s easiest to attack. don’t leave the front door open, or make it easy to get it. There are some simple things organsisations can do to BE CYBERSTREETWISE. GCHQ and the government have laid out advice on cyberessentials and cyber essentials plus that will significantly reduce threat.
  3. Nation State Attack: if the Chinese Or Russian or any other Government wants to attack your organisation there is probably not that much individual organisations can do in this DAVID vs Goliath battle. But don’t make it too easy for them. If your organisation is of Strategic importance to UK Government then get GCHQ to advise. (Tip: if you’re not sure or don’t know , you probably aren’t )

Cyber Security may appear to be highly technical but the same principles can be applied it as you do to Physical Security

Taking data into communities

nike plus

Similar to Strava, Nike+ Running is a fitness tracking app which measures and records running and cycling activity.

nike 1

While the playback of exercise data to users is considerably less detailed than Strava, Nike+ has committed more energy to connecting real world communities with Nike+ Run Clubs and Training Clubs. Run Clubs are for all kinds of runners, with different types of run – Long Run, Speed Run, Track Night and more – designed to help runners achieve their personal goals. Separate to the Running app, Nike+ Training provides over 100 workout routines catering to different needs: Get Lean, Get Toned, Get Strong etc. at beginner, advanced and intermediate levels. Users can share their workouts, see how their friends are doing with their own training programmes and give and receive messages of encouragement.

nike 2

The Nike Training Club puts on free exercise classes in city locations (typically parks and shops) and also feature in some paid-membership gyms. These classes bring together people of all types, regardless of ability.

Nike also stage real world events so that the digital community can become a physical community.

Mike and I both Run Hyde Park and run around the same time.

Nike+ invite us to a NIKE event in Hyde Park,

New Data Laws in Europe

EU Directive cartoon-proposals

#DataPulse 77

It has been over four years in the making but the EU Parliament and Council have finally approved the General Data Protection Regulation (GDPR) after the EU Council of Ministers approved the final text last week.

The compromise agreement reached just before Christmas has remained intact, having been agreed by both the EU Council of Ministers and Parliament. Today’s decision means that the GDPR text will not be amended further and is now in its final state.

A two-year implementation process will begin once the Official Journal of the EU publishes the regulation – the final step to complete before the regulation becomes EU law, though whether that is published before the 23rd June EU Reforendum in UK we’ll wait and see.

The real work for European organisations will now begin. The task of picking over the legislation and interpreting what its real impact will be is now underway.

The ICO who has been heavily involved in consultation and done a great job in the last 3 years will publish its guidance

10 Things that you need to know before ICO guidance comes:

  1. It’s a regulation not a directive so passes straight to law in all 26 EU countries
  2. Data processors will be responsible for data protection
  3. The regulation has global ramifications ( 23rd June vote will not impact UK)
  4. Users will be able to make compensation claims
  5. There are tighter rules on transferring data on EU citizens outside the EU
  6. Harmonised user request rights
  7. New Rights to be forgotten
  8. It’s data controllers responsibility to inform users of their rights
  9. Tougher sanctions- E100m or 5% of global turnover
  10. Encryption and tokenisation can come to your rescue

The Principles of the new Directive are good for customers and good for all of us 450m EU citizens: My data is my data and organisations need to treat it thus

  • Transparency of use to individuals,
  • Data use for specified EXPLICIT and LEGITIMATE purposes only
  • Proportionality

Overall this is good for customers, good for responsible organisations and with 2 years before the directive becomes law there is time to prepare ourselves and use this as an opportunity to build consumers TRUST in an organisation.

 

Look out for future Blogs on explaining the detail and how to prepare using ICO guidance

12 Steps to Data Heaven

EU Directive cartoon-proposals

The new General Data Protection Regulation will become law in June 2016 and organisations have only 2 years to implement changes to be legal and compliant.

Here are 12 steps to take now : endorsed by Christopher Graham  and the Information Commissioner’s Office  ICO.

1. Build Awareness

You need to ensure that CEO and Board members and key stakeholders are aware that the law is changing to the GDPR , and appreciate the impact it’s likely to have. Many organisations I have been talking to aren’t aware at a Board Level of what is coming

2. Document Information you Hold

You should document what personal data you hold, where it came from and who you share it with, probably need to organise an information audit

3. Communicating privacy information

Review all current privacy notices and put a plan in place to put changes in place now so that data collected for the next 2 years is valid once regulation implemented

4. Individuals Rights

You should check your procedures to ensure that they cover all the rights individuals have , including how you would delete personal data or provide data electronically and in a commonly used format

5. Subject Access requests

Will not be able to charge so they will increase in volume: Plan how you will handle requests within the new timetables ( a month) and provide any additional information. Thought leading organisations may automate SARs to allow any customer to see all the date help on them

6. Legal Basis for processing Personal Data

Look at the various types of data processing that your organisation carries out, be clear on the legal basis for carrying it out and document it

7. Consent

Review how you are seeking, obtaining and recording consent, and agree how you need to implement any changes

8. Children

You should be looking at putting in systems and processes to verify individuals ages and to gather parental or guardian consent for data processing activity

9. Data Breaches

Any Breach no matter how small or sensitive needs to be reported. Review procedures in place to detect, report and investigate a personal data breach.

10. Data Protection by Design and Data Protection Impact assessment.

Familiarise yourself and organisation with the guidance from iCO on privacy

11. Data Protection Officers

Designate / Recruit a Data Protection Officer to be responsible for data protection compliance and assess where role will set

12. International

If your organisation is international be clear where your home supervisory body is that you come under.

Data Driven Donald Storms Ahead?

trump

data pulse #29

Donald Trump has been quietly building a data juggernaut like Barack Obama: defying sceptics he’s been putting tools in place to get out the vote and results from the states so far suggest he is pulling ahead as front-runner because he’s getting the vote out for his supporters.

In 2015 his campaign assembled an experienced data team to build sophisticated models to transform fervour into votes. The team is led by two low-profile former data strategists, Matt Braynard and Witold Chrabaszcz, and they are using the Republican Data Centre plus supercharging it.

The RNC Data Center 2016 is a powerful query and data management tool, providing an interface for over 20 years of voter contact data. This allows Republicans / Trump to read and write data to and from the platform, continuously serving up the latest information to Trump. If Trump wanted to find 10 people on a residential block that haven’t voted in the past 20 years, have strong views on conservative topics and don’t like the Affordable Care Act, they could do so in seconds.

The system is described as the ‘centrepiece of the RNC’s new data-driven political ground game.’ Voter scoring is employed to track each individual in for contact (by mail, door, phone) and whether they voted (by absentee or on Election Day). Advanced voter profiling even matches social data to voter data automatically

The data push is focused on integrating information Trump has collected, through his campaign website and at voter rallies, on nontraditional or unregistered supporters. It also includes commercial data obtained from the RNC and other sources, in an effort to mobilize voters in key early states.

A data driven Trump seems to be storming the Primaries (he won over 50% of vote in Connecticut, Delaware, Maryland, Pennsylvania, and Rhode Island  with record turnout ) and into the White House in November.

Check out other Blogs : Data Driven Rednecks, Obama in Subscription Business

Data driven Red-Necks

donaldtrump 2

data pulse #28

The Republican Party after the second Obama 2012 election loss, fully reviewed and applied learnings ( and threw millions of dollars at it) They  have developed a sophisticated tool that any Republican candidate even Donald Trump and Sarah Palin can use, focused on the one strategic commercial imperative: winning elections

Republican Party created a permanent resourced Data Centre, with capability developed to support Republican Party candidates in county, state, senate and presidential elections. The RNC Data Centre 2016 is a powerful query and data management tool, providing an interface for over 20 years of voter contact data. This allows Republicans to read and write data to and from the platform, continuously serving up the latest information to GOP candidates across the country. If a candidate wanted to find 10 people on a residential block that haven’t voted in the past 20 years, have strong views on conservative topics and don’t like the Affordable Care Act, they could do so in seconds.

The system is described as the ‘centrepiece of the RNC’s new data-driven political ground game.’ Voter scoring is employed to track each individual in for contact (by mail, door, phone) and whether they voted (by absentee or on Election Day). Advanced voter profiling even matches social data to voter data automatically –

“We don’t just have the information they’re tweeting about, we can match them with their voting and purchasing habits in order to target them through email and social networks” said Jesse Kamzol, RNC Chief Data Officer.

Using powerful predictive analytics, the RNC claim that the Data Centre can tell a candidate, voter by voter, whether each individual is going to vote for them or not, and give reasons for each. At the macro level, this means they can identify how many votes up/down they are, which demographics to target, and then suggest suitable communications strategies to reach them.

This represents a long term strategic play for the Republicans: A permanent strategic and operational capability focused on a clear vision and goal and the right systems / processes /  people continually learning and reapplying lessons learnt. This was first piloted in 2014 successful senate elections where they won majority in both houses and is now being deployed for 2016 senate and presidential elections.

This demonstrates building long term capability in data can have big impacts… we’ll have to wait and see if the investment pays off in November 2016

 

Creating a data-driven delivery Service

dpd4

data pulse #14

Data and technology can be used to make people’s lives easier, and continually tell the brand story to customers and colleagues. It can also be used to insert the brand story into customer’s own stories

Hate waiting in for a parcel ?

DPD delivery tracking now allows customers to track the van that will be delivering their package. The ability to view detailed delivery information – expected delivery time, queue number, the name of the driver and their precise location at any time – means customers have all of the information they need, visibility of the journey, and the most up to date expected arrival times.

dpd5

This allows us to more easily plan our day and make sure they are at home at the right time – DPD’s delivery service is augmented with an information service so it moves from just being like another courier to being informed delivery, using data to build a brand story that is consistently delivered. DPD looked at the customer journey and customer’s story and used data and technology to create a role for the brand.

Data and digital has been used to create an added value service building strategic and operational capability that is driving L4L growth. it started with a customer problem that could be solved by creating a new data-driven added value service, that was better for customers ( less waiting in), simpler for colleagues ( more deliveries right first time) and cheaper for dpd, ( less miles per parcel =£££)

data used to create story in many brands

Many other brands have made this same link of data and technology to give customers control  in this way, be it Uber, Manchester Taxis. Retailers are also using it to improve internal effectiveness for customers:  Asda supermarkets track their delivery lorries  and let store colleagues know where and when they are arriving. this allows breaks to be scheduled and teams ready to receive, unload and refill the shelves just in time.

Another story of how data-driven customer thinking adds value.

 

Try this one as well:

Predictive analytics running shops

 

Apple & FBI

apple fbi.jpg

Tim Cook’s Battle with US Government is a masterful Marketing campaign that reinforces apple position in the David vs Goliath debate. A crusade, that reinforces rather that repositions apple as “a staunch advocate for our customers’ privacy and personal safety,”

This new David vs Goliath confrontation is merely the latest skirmish in an ancient war that once saw Cook’s predecessor, Steve Jobs, attack IBM, Microsoft and even Apple when he was outside the organisation. “Being hard doesn’t scare us,” Cook told the audience at Apple’s annual meeting. He’s not bluffing. Bloody-mindedness is part of Apple’s DNA.

Apple’s refusal to comply with a court order asking it to unlock an encrypted iPhone owned by terrorist Rizwan Farook also provides a major example of a rare positioning tactic – taking an enemy. Most marketers attempt to convince consumers what they stand for by communicating that message directly. Smarter brands look for an organisation that stands opposed to what they represent and then deliberately pick a very public fight with them to bolster their position in the market. Ryanair fought the big airlines to emphasise its competitive, cheaper credentials. Ben & Jerry’s took on Häagen-Dazs in the 1980’s to communicate its independent spirit and authentic origins. Now Apple combats the US Government to emphasise its liberal, independent streak.

Consumer privacy is already a core competence of apple.  The Electronic Frontier Foundation, which publishes an annual report on the big tech brands has consistently rated Apple as a “six star” operator, meaning the company adheres to all of the policies of transparency and privacy that the EFF considers best practice. That’s a significant competitive advantage over rivals like Google & Microsoft (3stars)  and Twitter & Facebook (four stars). The fact that all of these brands have recently announced their support for the stance that Apple has taken merely strengthens Apple’s position and its perception as the market leader.

This is a smart attempt by Apple to bolster its brand and further maintain its competitive position in the market. The fact that FBI and US government have backed down reinforces that factor even more.

Data driven vision for Social Security in Bolanzo

 

data pulse #32

SMART sensors keep Italian seniors living at home

There have been significant step changes in Healthcare in the last few years through their use of predictive and algorithmic data , data segmentation and technology to solve organisational problems

Limited budgets and resources posed a challenge for the city of Bolanzo, with elderly citizens representing almost a quarter of the population and nearly 50% of social budget. With ongoing medical advances, greater numbers of the elderly are living longer and staying in their homes, often alone. The city wanted to ensure their safety and provide the required services, but needed a cost-effective way to know when people needed help.

bolzano 2

The city has implemented an advanced mesh-network of sensors that monitor the home environment – temperature, CO2, water leaks etc – of elderly citizens living alone. Remote interaction with medical professionals via touchscreen and mobile devices provides healthcare advice, saving trips to the doctor.

The technology will also alert ‘angels’ – friends or relatives of the user – if there is a problem, so they can provide assistance until the appropriate services arrive.

This enables social service and health staff to concentrate on people who really need a physical presence with them, while maintaining excellent quality of life for those in the monitoring programme.

If you’d like to checkout a short film that talks it through, here’s the link through to youtube

3 Single Men and a Wedding

wedpics founders

data pulse #71

First problem: They were guys. Second problem: They were all single. None of them had ever been married, and they were based in Raleigh, North Carolina, which was not a place that anyone had ever built a large consumer app company. Lastly they were entering a crowded market.

How did WedPics defy conventional wisdom?

Identify a small niche market and build a highly targeted product to fit that market’s need. After conquering that niche market, expand out to other niches until you get some real momentum.

Wedpics decided to target brides as their customer niche. Brides can’t get enough pictures and videos, not just from their wedding photographer but also from everyone else with a cell phone.

If this mantra sounds familiar, it should. Think Airbnb, Strava

When you look at WedPic’s success, there are two overriding lessons that stand out:

1.The product is simple. The UI is intuitive, and regardless of whether you are 12 or 62, if you have a phone you can snap pictures and videos and instantly share them with the rest of the wedding party. In fact, the founders claim that there are no features.

2.They understand their buyer (the bride). Out of the gates, they offered instant support regardless of the time of day. The boys each took turns on call and averaged 20 minutes to turn around any question or concern. I mean, we are talking brides here preparing for the biggest day of their life. It didn’t matter that Koren, Heymann, or Miller received calls in the middle of the night. Yes, I said calls. Not email. Not chat (though that would have been cheaper and easier). The brand said, The company is here for you; we know we only get one shot to do this right.

What I love about the success of WedPics is how Koren, Heymann, and Miller  focused on finding customers. My favourite image is that of a six-foot-four tattooed guy (Miller) standing behind the company table at a wedding conference. Today, WedPics stands at 29 people and has raised more than $7.5 million from investors across the country.

Oh, all three founders are still single

Data driven Aussies

ARFU fans.jpg

Players always say that when it counts the most, fans and supporters can represent the force of an extra player in the team. the “Unfair Advantage”

Competing against three other football codes in one of the most crowded sporting markets in the world, the Australian Rugby Union (ARU) has used data to harness that Unfair Advantage.

Data has become a crucial battleground at Rugby’s top level with every aspect of a match and a player’s performance analysed over and over to find that competitive edge. The Australian Rugby Union also use data to create a community at grass roots playing and grass roots supporters. They learnt from the 2012 Olympics in London and went back home and built a bottom up connected supporter community.  

As Bill Pulver, ARU CEO, states:   “The fundamentals of running a sport are pretty similar to running a business, the difference being you have this thick layer of passion over the top. “

Unlocking Fan Force with Rugby Link

Rugby Link is the platform through which the ARU engages every member of its community – “from the age of 5 right through to the age of 75”.

According to Bill, the Australian Rugby Union have a digital platform for omnichannel one-on-one communication on  that is relevant to a fan or player’s historical engagement with the game; as well as enabling a customised future with the game as well.  

A good example that Jade McAuslan, CRM Manager, describes is how the platform allows the ARU to understand when fans and players renew their seasonal membership, and as a result, time and personalise their outreach accordingly. The way that the data and metrics inform that personalised connection is critical to keeping people more engaged than with any of the other codes.

In the modern, professional era of Rugby Union, teamwork and communication are fundamental to success on the field. But also increasingly it is the cohesion and strength  of the entire organisation behind that team, all the way down to the 5 year old touch rugby player, that provides that edge to keep the national teams winning again and again. With Rugby Link,  the ARU has secured an Unfair Advantage in that international contest.

It can help them get to the final… but didn’t stop them against the mighty All Blacks

cutting the corners using data

UPS 1.png

data pulse #22

UPS generates rich data through devices, vehicles, tracking materials and sensors throughout its operations. Using advanced data analytics it aims to ‘turn that complex universe of data into business intelligence’.

Route optimisation delivers immense value for UPS – a reduction of one mile per driver per day results in up to $50 million each year. Telematics sensors in UPS vehicles monitor speed, direction, braking, RPM, oil pressure, shifting, idle time, seatbelt use, and hundreds of other data points, including geographic and map data. The analytics team now runs advanced algorithms to crunch all of this information, factoring in delivery routes, customer information, business rules and employee work rules. These algorithms can determine the vehicle’s performance and condition, and can even recommend driving adjustments.

Through these analytics, UPS reduced total miles driven per year by 85 million. Idle engine time was also reduced by 10 million minutes. The information UPS receives allows fully informed decisions about vehicle replacement, and helps determine best driving practice so that drivers get the best possible training.

“We don’t look at initiatives as ‘analytics projects,’ we look at them as business projects. Our goal is to make business processes methods, procedures and analytics all one and the same.” – UPS Senior Director of Process Management.

 

how to connect customers lives?

#data pulse 17

Times have changed significantly since we built the first unified view of customers in Tesco in 2005 working with Clive Humby and the team at dunnhumby. We were cutting edge at the time and had to build all the systems and processes from scratch. Technology has improved with the likes of IBM Infosphere providing MDM systems , and new agile , start-up mentality ways of working changing delivery timetables.

Gone are the days of 12-24 month development programmes, with waterfall methodology and timescales that mean the business imperatives have moved on before they can be addressed.

Hello to technology and ways of thinking about data problems for the 21st Century where leaders can focus on the business problems and organisational process changes required to solve the problems for customers.

met life 2

The MetLife Wall is a good example in financial services of creating a unified view. It joins all linked customer information in a single place, with one screen that gives all of the information needed to serve customers quickly and effectively. The Wall provides a simple 360 view of each customer across MetLife’s businesses. The interface shows interactions across all touch points (e.g. call centre, in-person interactions with agents, claims, policy updates), connecting more than 70 legacy systems. The application allows customer service agents to reach the information they need with far fewer clicks, and makes it much easier to effectively cross-sell.

The first prototype of the system took just 2 weeks to build. The entire development process, from conception to final product, took just 3 months.

The lessons to learn from Met Life are

  1. a clear focus on what problem you want to solve with the Unified View of Customers.
  2. an agile, start-up mentality where you build minimum credible product and then continually improve.
  3. unified view of customers is a start point to solve business problems not an end point,