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.

It’s vital that the 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.

a) 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 . This suggests that it is the culture and organizational setup that moves the needle even though IT and analytics expertise are obviously necessary to create value from customer analytics.

b) 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. Companies where senior management is not involved extensively, only 28 percent report a significant value contribution of customer analytics, versus 69 percent of companies with senior management involvement in customer analytics that say that customer analytics drives value

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).

 

In summary: three factors to drive Analytical Success:

  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.

 

 

 

 

 

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

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.

 

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

 

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.

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.

 

 

Defining your Brand Tone of Voice

digital

The language of a brand is really decided by two things: where you are looking to position your brand in the marketplace; and the personality that you choose to adopt.

  • Brand leaders speak with authority and surety. Their language focuses on stability, history and confidence.
  • Brand challengers speak with defiance. They seek to challenge the way things are so their language focuses on change, hope and (sometimes) revolution.
  • Cult brands focus on exclusivity – so their language is peppered with tribal terms.
  • Artisan brands focus on craft and attention to detail so their language tends to be quieter, more insular and focused on the work.
  • Budget brands often use language based on frugality (how much you save) or generosity (what you get).
  • Quality brands seek to be steady and trustworthy.

 

In all cases, the language you use as a brand is directly aligned with your value proposition because, of course, language is a very powerful way of capturing and expressing how you see yourselves as a brand and how you want others to think and talk about you.

Personality picks up on these points of view and defines them more specifically. This helps brands in busy and highly competitive markets to distinguish their brand where there may be several brands competing in or for a market position. Here are three of the most important ways to evoke personality through language:

 

  1. Formality – the type of language that a brand uses is a strong indicator of the type of relationship it is looking to form with customers, and of how the brand sees the exchange between them and their consumer.
  2. Dialect – every brand should seek to own language of its own; a way of talking about what it does and what it stands for that complements the visual identity and adds color and texture in terms of how the brand speaks. Don’t just speak the industry language.
  3. Rhythm – every brand needs a speech pattern. It needs to speak at a certain speed, in particular ways, so that consumers consciously or sub-consciously ‘hear’ the brand’s voice in every interaction.

Once you know where you want to position your brand and you have established a personality that speaks to the strategy and distinguishes the brand from competitors, a really sensible next port of call is the frontline.

Speaking with colleagues is a highly effective way of gauging what customers are looking for in exchanges with the brand, what they like about how they interact now, and where they would like to see clear changes in the tone of communications.  Start inside out . These insights should then be applied to content and structuring of information as well as to tone.

Too often brands fail to make all these changes. They develop a new tone of voice to sit alongside their visual identity but they only apply it to a slither of the interactions they have with consumers.

When a brand fails to carry its new voice through to all its touchpoints, it quickly muddies expectations and experiences. Customers expecting the brand to behave in a particular way find themselves being spoken with in a different, often conflicting, way elsewhere within the same brand.

Here’s my rule. A brand may speak in multiple languages – but it should look as much as possible to speak in one distinctive tone of voice everywhere.

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,

Speaking at BRC Insight Conference

change reality

In a time of transformational change, an improving economy, and dynamic technical advances retailers are facing a number of significant challenges as well as opportunities. Leveraging customer insight to build a competitive advantage is now a necessity but often the question remains of how to turn data into actionable insight

I have just spent a day BRC Insight 2016 conference organised by British Retail Consortium and attended by key insight professionals as a speaker and panellist.

I opened Keynote Presentation about how using data is not technically difficult the challenge is around building data literacy. People, Process and culture not the technical implementation.  Finding a sweet spot that combines delivery of commercial agenda, by building relevant customer propositions through technical use of data is the utopia that can be achieved. Four uses of data emerge and I then illustrated the story through case studies of organisations who have made the change in People and Culture and become data driven organisations: Disney, Sainsbury’s, Walmart, Starbucks, 7-11 and Strava amongst others. Check-out case studies on http://www.andrewmann.me

sweet spot

Martin Newman CEO PRACTICOLOGY made a Chairman’s address to set the scene for the day. With over 30 years’ experience in Omni channel retailing, and a friendship with Tim Berners-Lee, Martin laid out how Digital and Data skills should not be in silos in organisations, and DIGITAL/Data should be distributed as a core skill around the organisation which needs to structure around the customer. Bring back good old fashioned personalisation like the Walton’s, where they knew you well. Burberry have started to do in-store personalisation for customers through store colleagues, and assign dedicated staff members to every on-line order.   The customer is now 100% in control of when and from where they buy and retailers need to recognise that in their behaviour.

waltons shopkeep Ike Godsey

Tom Feldmann CEO Brand Alley talked how customers have become fickler and retailers have to be more relevant to them and collect data from every touch point. Brand Alley is a pure play on-line membership retailer with 2m upmarket members. They sell end of season lines for luxury brands and recruits new users for those brands (check them out on www.brandalley.com)

brandalley

Over Coffee the discussion with Richard Baker (chairman of Whitbread and DFS) who I worked with at Sainsbury’s  reinforced how retailers need to use data to improve increased humanisation taking personalisation of the experience back to a human interaction either on digital or face to face. Very relevant for Costa and Premier Inn amongst others.

richard baker

 

Yossi Erdman from ao.com talked through how they have kept very closely focused on the commercial imperatives in UK’s largest digital white goods retailer, and developed a customer proposition that is more than just price, making white goods products sound interesting, and bringing the service they provide to life.  Good examples of listening to the customer and engaging colleagues in a positive way. Focus on real people , the customers of ao.com and let them tell their own stories. Simple yet very effective.

ao.com 2

John Bovil IT and Ecommerce Director from Monsoon Accessorize talked through the challenges they face joining the dots for members and transitioning from a multichannel retailer to a connected enterprise.  IoT will create so much data that organisations will start to creak and break in the new connected world and they are moving towards the utopia of data & analytics available any-time, anywhere for colleagues through the eyes of the customer.

A common theme emerged across all the presenters and delegates around the challenge in making Process and People changes to change the Culture in an organisation to be more customer focused. Increased listening at pace, together with an increased level of personalisation will drive more customer centric colleagues and organisations.

Data driven Foxes win


I have a confession: I am a Leicester City Fan. It started when I was 11 and went to Filbert Street watching Gary Lineker play. we were 2-0 up and I was hooked. We lost the game 6-2 and so began my love-hate relationship with The Foxes.

When the Premier League season began in August Leicester City were favourites for only one thing – relegation. They had only just survived the drop during the previous season and their manager had recently been sacked after a team scandal. To make matters worse, Leicester had appointed Claudio Ranieri as his replacement. The Italian was available after being fired as manager of the Greek national team following a humiliating loss to the Faroe Islands. Little wonder then, that at 5000-1, Leicester winning the Premier League was seen as more unlikely than the Second Coming of Christ by most British bookmakers. You could get better odds on Jeremy Corbyn winning Big Brother or Alex Ferguson winning Strictly. 

If only I had Believed and Kept the Faith and placed the bet,

At the end of the season Leicester City have won the Premier League, with 2 games to go. 

It is a remarkable story and one that marketers should pay special attention to based on 3 simple rules Ranieri applied:

  1. Clear data-driven Diagnosis,
  2. Distinctive Strategic Plan,
  3. Strong Tactical Plan executed with Excellence.

Clear data-driven Diagnosis. In Ranieri’s initial days at Leicester he had arrived with some clear notions about how the team should play. He talked to the players and looked at all the data-driven analytics of the way they played, and realised they didn’t want to and couldn’t play the Italian system. I have great admiration for those who build new tactical systems, but I always thought the most important thing a good coach must do is to build the team around the characteristics of his players.

The secret to future marketing success is data-driven diagnosis. It’s crucial not to arrive with established strategic approaches and prior tactics already in place. Listen. Drill into the data to understand the picture. Understand the new brand, the organisation behind it and the consumers that buy it. You only ever get one chance to perform a proper diagnosis so take your time here. Look for good secondary data, study the brand history and do as much in-market ethnographic work as you can. Ranieri and Leicester City were using the latest data driven techniques to understand the strengths of each individual player and build a clear data driven diagnosis.

Distinctive strategic plan Ranieri quickly realised from his diagnosis that his new team was not exactly skilled in the art of possession football. Leicester’s starting eleven cost a total of £22m to assemble; that’s about half a Rooney. Ranieri realised he would not win anything if he tried to play the game like everyone else. Instead, he gave up on possession football and focused on his team’s overriding advantages – speed and an inherent work ethic. Typically, when a team wins in the Premier League they have on average 60% to 65% of the possession in matches. Leicester are winning each week, often by several goals, with as little as 35% possession. Rather than control games, they use their speed and tenacity to break quickly with lethal counter attacks.

The real lesson here is to listen hard to colleagues and customers, drilling into the data, genuinely studying the situation and your strengths and weaknesses to identify a clear and often distinctive way to win in the market. Who will we target? How will we win? How can we play the game differently from the rest? These are the great strategic questions that set the direction for brand success.

lcfc ranieri strategy

Strong Tactical Plan executed with excellence: Leicester play long ball football to allow fast breaks. They harry and hassle their opponents until they can win the ball and attack immediately. Their star players, Jamie Vardy and Riyad Mahrez, are encouraged to push forward and await the counter attacks that inevitably result from Leicester’s pressing approach.

The tactical execution and the tools you use can only be applied after a clear strategic approach has been decided upon, and must be executed with excellence.  Too many marketers are ready with tactical approaches but when you push them on the rationale for their execution it becomes apparent that the big strategic questions have simply not been asked.

Leicester have won the Premier League. the greatest turn around story. 

Claudio Ranieri should also be Marketing Leader of the Season 2015-16

Global Bike to Work Day 10 May

Strava is launching the first  Global Bike to Work Day Challenge on Tuesday May 10th,  #CommutesCount.  I’ll be cycling to work using Strava will you?

STRAVA: the fitness app gives users access to cycling and running performance data.This is using customers own data combined with Google maps and geo-location to create tools and reports for themselves, a sort of Business Intelligence (BI) for customers or CI.

Access is free initially but users can upgrade to Strava Premium for a small monthly fee with added features. Strava focuses clearly on creating a great customer experience with a really simple sign up, and starting to get going, easy to use maps, and showing routes. Users compete against their own personal best with friends or people they don’t know but run or ride the same routes as them.

Strava is a data company that collects members data and effectively aggregates anonomised data to improve the community and make a profit:

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Strava Metro analyzes the millions of human-powered commutes uploaded to Strava every week, then partners with urban planners to improve city infrastructure for cyclists and pedestrians using anonymized data.

strava cast of riders

Here’s how it all works:

 

DATA-DRIVEN BICYCLE AND PEDESTRIAN PLANNING

More than five million rides and runs are uploaded to Strava each week, and in cities, the majority of these activities are commutes. These activities have created trillions of data points on where people actually ride, run and walk in cities.

In 2014, Strava launched a data service called Strava Metro. Since then, Metro has worked with over 70 organizations around the world to understand how more than a half-million bicyclists and pedestrians choose to navigate through cities. Each of these organizations is using the anonymized data to understand the general flow of people across their streets over time.

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With data like this, cities can better understand how people choose to interact with the network of roads, bike paths and intersections. The result is improved decision-making, smarter planning, safer streets and more people biking, running and walking.

Better data is a catalyst for change.

strava bike to work day

 

Check out earlier Blog on Strava:

https://andrewmann.me/2016/04/23/creating-communities-using-data-linked-by-fitness/

 

Hitchhikers Guide to Disintermediation

Bla Bla1

# Data Pulse 42

When I was a student at Durham University  we’d walk up to the A.1 , stick out our thumbs and Hitch a ride south. Sometimes we waited for a long time, and sometimes we had a very odd ride, but we had time and little money.

I’ve just driven my daughter back to Bristol University and things have changed dramatically in the last 30 years.

Bla Bla Car is a digitally enabled ride-sharing network, connecting travellers who are making similar journeys so that they can save on travel costs and meet like-minded from trusted community of more than 20 million verified members. it’s a great example of understanding customers stories and then developing a brand story using data and digital that works for customers , fitting for them .

Drivers who want to offer a seat in their car submit the details of their journey online and set a price per passenger. Someone looking for a lift can then search the offered journeys and book a place. After meeting at an agreed point and completing the journey, the users then rate each other. The feedback system promotes trust within the community so that people can feel safe and secure when sharing a journey

Bla Bla 3

Bla Bla 2

A fast growing example of a community sharing organisation that brings together users with excess capacity for their capital investment (someones car) with a user who has a need for that excess capacity, at in improved value for money . 

Quick in, quick out. I like

Vikden groceries

#data pulse # 41

Easy in and easy out are key elements of convenience retailing, and Robert Ilijason a 39 year old IT expert has used digital and data to create the first unstaffed convenience retailer in a remote part of Sweden.

It was a chaotic, late-night scramble to buy baby food with a screaming toddler in the back seat that gave Robert Ilijason the idea to open Sweden’s first unstaffed convenience store.

Home alone with his hungry son, Ilijason had dropped the last baby food jar on the floor, and had to drive 20 minutes from the small town of Viken in southern Sweden to find a supermarket that was open.

Now the 39-year-old IT specialist runs a 24-hour shop with no cashier.

 Customers simply use their mobiles to unlock the door with a swipe of the finger and scan their purchases. All they need to do is to register for the service and download an app. They get charged for their purchases in a monthly invoice.

The shop has basics like milk, bread, sugar, canned food, nappies and other products that you expect to find in a small convenience store. It doesn’t have tobacco or medical drugs because of the risk of theft. Alcohol cannot be sold in convenience stores in Sweden.

“My ambition is to spread this idea to other villages and small towns,” said Ilijason. “It is incredible that no one has thought of his before.”

He hopes the savings of having no staff will help bring back small stores to the countryside, so you can have more distribution with longer opening hours in remote areas.

Ilijason receives deliveries at the shop and stacks products on the shelves. Then he lets the customers do the rest.

He has installed six surveillance cameras to discourage shoplifting in the 480-square-foot store. Also, he is alerted by a text message if the front door stays open for longer than eight seconds or if someone tries to break it open.

“I live nearby and can always run down here with a crowbar,” Ilijason said laughing, but added that hasn’t been necessary since the store opened in January.

A bigger challenge has been getting some of the elderly residents in Viken, a town of 4,200 people, to get the hang of the technology involved.

Tuve Nilsson, 75, said there were many more shops in the town when he moved here with his family in 1976. He welcomed Ilijason’s new store, saying it could be convenient for elderly people living alone.

“But if they can manage this (technology), I don’t know,” Nilsson said. “Sometimes I don’t understand it.”

Ilijason is considering other ways to unlock the door that wouldn’t require using an app. He’s ruled out face-recognition or fingerprint scanners, but is thinking of installing a credit card reader like some banks use. He’s also considering having one person man the store for a few hours a day to help customers who aren’t comfortable with modern technology.

Other customers loved the speed of the no-service store. Raymond Arvidsson, a friend of Ilijason’s, did his shopping in less than a minute.

“No queues,” he said, smiling. “Quick in, quick out. I like.”

Vicken sweden

 

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

 

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

data driven Volvos

 volvo 3

The problem at V.W. caused by the scandal of emissions testing shows just how far car manufacturers have changed from being mechanical and electrical engineering companies to being software companies. A modern car is now a moving computer emitting data like a Boeing 747.  V.W. leadership are all great mechanical and electrical engineers but they just didn’t quite understand software and data, and hadn’t made the transition in organisational culture , systems processes. Hence the problem that crept in through the corporate governance.

Car companies will need to retell their brand stories to customers and become part of customers’ own stories.

One company that has started to tell its “brand story of safety” consistently to customers using data and technology is Volvo.

‘Volvo on Call’ allows Volvo owners to control their car through their phone. The app allows the driver to perform a range of checks and commands without having to be near the car, such as: check the cars maintenance levels, create and track a personal driving journal which can be transferred into an excel format as data, identify the car’s location, lock/unlock the car, call an operator for roadside assistance using your GPS location.

volvo 2

Volvo are also using data to improve road safety for drivers, introducing a new system that warns drivers of potentially hazardous road conditions ahead. This is achieved through pulling data from wheel sensors to detect the presence of black ice. When this happens, the car transmits a GPS location to the Volvo Cloud platform, which sends the data to other vehicles nearby that are equipped with the system. These cars then see an icon on their dashboard warning them of the risk. Similarly, sensors are attached to Volvo cars’ hazard lights to detect when they are activated. At that time an alert is sent to nearby cars, warning them of a hazard ahead.

volvo 1

Icy road data gathered during the pilot was shared with road authorities so they can improve road safety through gritting or public announcements. Using data and technology as an integral part of the brand story and customer journey / customer experience is a critical skill organisations will need to build. The implications for Insurance companies will be significant, as the risk factors will significantly change from who I am, where I live , and what i buy to more how and where I drive….. one to watch.

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

Predictive analytics running shops

sainsburys milk.png

Energy usage accounts for 60% of the operational carbon costs in running shops. In with its 2020 vision for sustainability, Sainsbury’s set in motion a series of CSR strategies. A revamped refrigeration strategy prioritised carbon reductions, although not necessarily reduced costs.

sainsburys

Fridges and freezers were all fitted with devices to monitor performance (primarily energy usage and temperature). This information, pushed every 15 seconds, provided an alarm strategy so that any unit that strays from its optimal temperature can be identified immediately. This systematic approach ensures that all food types are kept at the right temperature for as long as possible, so that customers always receive the freshest goods.

Sainsbury’s then transitioned from active management to predictive management. With the data being produced by refrigeration units, it was possible to identify which types of cabinet performed best, which refrigerants are most efficient, and to predict which units would need to be serviced and/or have parts replaced. In this way, Sainsbury’s could stay ahead of the curve and react before technical failures caused serious losses.

Data and digital technology is being used to deliver solutions to business problems making it Better for customers ( more environmentally friendly and always available fridge and freezers) Simpler for colleagues in store ( central predictive control means fridges are never down and have to be emptied and repaired) and Cheaper for the organisation ( less energy, better refrigeration contracts less stock wasted)

a reputation that preceeds you

bubbledogs queue.jpg

It’s 6pm, still thirty minutes to go before Bubbledogs opens its doors for dinner. The line snakes down the street and around the corner. A few people have bookings for tables of six or more, but not many, most are walk-ins who know that if you’re not dining with a bigger group and have no reservation (house rules), then you need to get there early. Bubbledogs reputation precedes it.

There is clearly no time for the management to worry about what the dozen other restaurants within walking distance are doing and no urgency to allocate resources to traditional marketing campaigns.

Like the Bubbledogs team every one of us has a choice. We can spend the majority of our time either managing our reputation or keeping pace with our competitors or we can deliberately create the reputation that precedes us.

What’s the story you want customers to tell about your brand?

[Take time to write it down].

How will you make that happen?

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.