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

Reward your Team for Learning

harley-havidson-dog

Leadership Tip of Week

adapted from HBR

Many jobs require people to continually develop new skills.

As a manager, you should be less worried with what people know and more concerned about whether they’re able to learn. But it’s not enough to hire curious, adaptable people; you also have to reward them for learning.

When your employees have increased their knowledge and their value to the company, provide them with new and challenging opportunities.

Promote people only when they’ve acquired sufficient expertise in other jobs in the organization, not just their own. Or you could give awards for individuals who organize events or activities to promote learnability in the company (running internal conferences, bringing external speakers, or circulating information that nurtures people’s curiosity).

Reward simpler habits, too, like writing a blog, sharing articles on social media, or recommending books and movies.

Adapted from “It’s the Company’s Job to Help Employees Learn,” by Tomas Chamorro-Premuzic and Mara Swan

Create Rules to Collaborate as Team

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Management Tip of the Week

adapted from Harvard Business Review

It’s easy to assume that everyone knows how to work on a team, but most people have individual styles and preferences.

What if one person thinks a 9:00 start time means 9:03 and someone else thinks it means 8:55?

To avoid these common frustrations, create rules of conduct for your team’s collaboration. Rules help clarify how you will collectively make decisions, keep everyone informed, and run meetings.

To start, find or create a boilerplate framework with basic rules for respect, trust, meetings, decision making, and more.

Discuss the rules with your team and agree on which ones you’ll follow.

Review the rules periodically to keep them relevant and quash undesirable behaviors that have emerged.

In addition, conduct a cultural audit of your team by asking about the unwritten rules a new team member would need to know. Then create one combined set of rules that everyone will follow.

Adapted from “Help Your Team Agree on How They’ll Collaborate,” by Mary Shapiro

5 Steps to Digital Mastery

customers 7

Digital mastery in an ever increasingly digital world is one of the key priorities of an organisation. The road to travel on the journey to making your organisation more customer focused in a digital world is challenging and one that requires alignment and commitment from the CEO, the Board and Shareholders down.

There are 5 priorities for a chief customer officer  / chief digital officer

1) Build a clear vision of a radically different future state and align it with Shareholders Board, CEO and Exec.  ensure that they are involved in co-creating the vision and understand the elements of how it works. If you need to train them on Twitter, facebook, what’s app or programming, do it so they understand a digital world.

2) Engage Colleagues in a 18m-36m Goal and develop a clear action plan. Ensure that you have a detailed and well managed transformation programme with agreed outcomes. Engaging colleagues in building this will be critical. It’s amazing how digitally literate teens and twenty somethings in a retail organisation are!

3) Breakdown fear of data and digital across the organisation. Board-> Senior managers-> middle managers -> Colleagues. Communicate widely and use storytelling to engage at all levels. Be very pragmatic and engage people in learning by doing rather than telling ( run Twittter workshops, small projects designed to deliver quick wins, training by doing.) Focus on small wins early and let people tell these stories across the organisation themselves as their wins. Align objectives and remuneration to deliver the goal from Exec down to all colleagues.

4) Foster stronger bonds between technical and business people. This is a two way process to ensure the technical teams understand the commercial imperatives, and customer solutions you would like to build, and the business teams learn to trust the expertise of technical IT teams. It will also allow you to improve data quality through showing the business impact.develop a data strategy aligned to business goals , build tools as required to deliver commercial goals.

5) Steer the course through strong Governance. Digital Transformation should be governed through the EXEC as well as relevant touchpoints to ensure continual alignment.

These 5 priorities along won’t drive the transformation but applying them is a start that many organisations who are now Digital Masters followed.

 

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

Have Clear Goals for Your Weekly Meeting

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Just because you have a recurring meeting on your calendar doesn’t mean you have to hold it.

Only convene the group if everyone (especially you, as the meeting leader) is clear on what the objectives are. Agreed-upon goals will keep the agenda focused and ensure you make the most of the time. Here are a few sample objectives to consider:

  •  Share updates and review progress to date, including major milestones or upcoming activities. Ask and answer: “What did I do? What will I do?”
  • Identify questions and concerns related to progress. Ask and answer: “What are the potential roadblocks?”
  • Prioritize and resolve issues and address additional questions.
  • Agree on next steps (for example, what to do if a situation escalates, and what each individual’s role is).

Adapted from HBR Guide to Making Every Meeting Matter

Rework bad ideas instead of dismissing them

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Leadership Tip of Week

adapted from HBR

Successful entrepreneurs rarely dismiss bad ideas outright: They rework them in the hope that there’s a gem yet to be discovered.

After all, the best opportunities aren’t always self-evident. Instead of killing ideas and initiatives when they seem problematic, challenge yourself or your team to push further, reframe the problem and solution, or explore adjacencies.

By bringing new thinking to seemingly bad ideas, you may end up with a breakthrough. Listen to all stakeholders regularly, and don’t stop, even once you’ve decided on a course of action. Pay special attention to new information and edge cases as you go — they often hold clues to move you toward better versions of your idea.

Adapted from “Embracing Bad Ideas to Get to Good Ideas,” by John Geraci

TfL adds cycling routes to Open API

cycling London highways

Latest addition to portal provides potential for app development to support cyclists

Transport for London (TfL) has opened up a new open data source for mapping information on cycling in the city.

The organisation, which has been one of the leaders in making its data freely available for re-use, said that app developers will be able to use the information on its Cycle Superhighways and Quietway through its open data portal. Data on new routes will be added as they open.

This should enable developers to map out the existing networks within apps and on websites, and can be combined with previously released data, such as the location of cycle parking and availability of bikes from docking stations for London’s hire bikes, to help cyclists plan their routes.

TfL have continued to develop against their mission to keep London moving and innovating by providing data in Open Format for experts to develop into Customer Experience CX friendly Apps. Londoners already use apps to navigate around London every day, and by ensuring this cycling data is available to developers, they make a big difference to the way journeys are planned.n Cyclists can then plan the best route for them rather than simply following the way they would go by car or bus and find quieter more friendly routes

There are now more than 600 apps powered by TfL data including Citymapper. It has been very active in adding feeds to its open data portal, with initiatives last year including the provision of data on the London Trams network, historical crowding at Underground stations and road closures for the London Marathon. It also extended its APIs to include data on the Night Tube service.

A truly innovative way of using data to deliver against TfL mission, it’s commercial imperatives through delivering improved CX via data.

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.

 

The Best Leaders Question Everything

great leaders business

Leadership Tip the week #1

adapted from HBR.

It can be difficult for leaders (especially senior ones new to their roles) to pause before acting. But when was the last time you stopped to ask, “Why are we doing it that way?”

Leaders must constantly explore new ideas and seek out new thinking from those around them. You need to regularly ask uncomfortable questions and think about whether to change or abandon an existing strategy.

The best leaders step back and look at the big picture every so often. They surround themselves with diverse teams and capitalize on opportunities to hear and experiment with new ideas. They give themselves time to surface divergent opinions that ultimately lead to smarter business decisions.

Adapted from “When was the last time you asked, “Why are we doing It This Way?” ”

http://www.hbr.org/2016/04/when-was-the-last-time-you-asked-why-are-we-doing-it-this-way

Use Keywords in Your Email Subject Lines

Digital-Consumer 2

Leadership Tip of the Week 

adapted from HBR

When you send an email, the first thing your recipient sees is the subject line, so make sure it’s as clear as possible:

What is your email’s purpose?

What do you want your recipient to do?

Take a page from military personnel.

Their subject lines use keywords in all caps to note the email’s purpose.

For example:

  • INFO – For informational purposes only
  • REQUEST – Seeks permission or approval by the recipient
  • ACTION – The recipient must take some action

These demarcations might seem obvious or needlessly exclamatory, but they make your emails stand out in the recipient’s inbox. So if you need to send your direct reports a status update, try using the subject line: INFO – Status Update. If you need your manager to approve your vacation request, you could write REQUEST – Vacation. Using these key words also forces you to think about what you really want from someone before you contribute to their email clutter.

Adapted from “How to Write Email with Military Precision,” by Kabir Sehgal

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

Make time for Strategic Thinking Every Day

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Leadership Tip of Week

adapted from HBR

 

If you believe that only senior executives need to think strategically, think again.

No matter what level you’re at, strategic thinking is a critical skill — one that can always be improved. To hone your capacity to see the big picture, start by making sure you have a solid understanding of the industry context and business drivers.

  • Make it a routine to explore the internal trends in your day-to-day work.
  • Pay attention to the issues that get raised repeatedly, and synthesize the common obstacles your colleagues face.
  • Be proactive about connecting with peers in your organization and in your industry to understand their observations of the marketplace, and share this information across your network.
  • Take the time to understand the unique information and perspective that your job function contributes to the company.

Thinking at this higher level will position you to be more strategic in your role.

Adapted from “4 Ways to Improve Your Strategic Thinking Skills,” by Nina Bowman

Make Feedback Feel Normal

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Leadership Tip of week

adapted from HBR

Let’s face it, giving and receiving feedback can be uncomfortable.

To make it easier, you don’t necessarily have to get better at saying the exact right thing; you just need practice.

If you see someone doing something they can improve, offer your observations right away. Don’t wait until your next meeting to provide your input; give it in the moment. You want as little time as possible between identifying and discussing the problem.

After you address the problem, offer a “patch up” to help them know that you respect them. The biggest predictor of whether someone will become defensive after presented with feedback is the motive behind it. If they know that you’re trying to help them and hold them accountable, they are less likely to push back.

Adapted from “How to Make Feedback Feel Normal,” by Joseph Grenny  

 

Show Empathy for your Team

people

Leadership Tip of the week

adapted from HBR

There’s no doubt that people want to feel appreciated and listened to at work. As a leader, it’s your job to create an empathetic environment where everyone feels valued. Here are a few simple things you can do to show empathy for your team:

  • Observe, listen, and ask questions. Stop assuming that you know what people are thinking and feeling — you probably don’t. There’s always more to learn if you’re quiet and curious.
  • Stop multitasking. If you’re writing an email to one person while talking with another, neither one is getting the best of you. Put your phone down and give your full attention to the person in front of you.
  • Don’t give in to distractions. There’s always a deadline looming, a crisis to deal with, or an annoyance to put to rest. It’s important to slow down and take a step back from all of this stress. Practice mindfulness, and encourage your employees to do the same. Let them know it’s OK to take some time for themselves.

Adapted from “If You Can’t Empathize with Your Employees, You’d Better Learn To,” by Annie McKee

The Art of Storytelling by Brands

neandethal-stories

Anthropologists tell us story is the universal language that has quite literally ensured the survival of the human race. Our Neanderthal ancestors told stories to pass on information that would keep the tribe safe—tales of misadventure and survival about what to fear or to embrace. We tell stories to inform and connect, to inspire and create change.

Brands have long known that story is a powerful tool, but in business circles, we’re often more concerned with the mechanics of storytelling than the reasons we need a story to tell. Where would we be today if our ancestors had started with the mechanics without understanding why their stories mattered? Even the most primitive humans understood that their stories had a purpose.

Over the past fifty years, the outward motivation of brand storytelling (in the form of advertising) was to get attention in the moment and to acquire more customers. In many ways the ‘tell to sell’ strategy sold the power of storytelling short. Today the businesses that use story to the best advantage understand the primary reason to invest in brand storytelling is to build trust with the customers we are committed to serving and keeping, and we can’t begin to tell effective stories without understanding the trust gap we’re trying to fill.

Trust is the most undervalued and precious resource of our time. This makes storytelling one of the most important investments we can make.

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 an Open Culture

 Digital-Consumer 2

Management Tip of the week

adapted from Harvard Business Review

Create a Culture Where People Are Open to Feedback

 

The benefits of an open culture — where frank, candid discussions about problems are possible — are immense, but building an open culture is difficult. However, once you establish the practice of open feedback across the company, you’ll likely find that it builds momentum quickly. Leaders can set their organization on the path to having an open culture by modeling three behaviors:

  • Showing appreciation. Overcome the negative connotation of “feedback” by recognizing your employees’ good work too. Research suggests you should share positive feedback three times as often as negative feedback.
  • Opening up. We all tend to respond to feedback by protecting ourselves, but building an open culture requires leaders to really listen to what people say to them. Demonstrate how to receive feedback without taking it personally.
  • Getting the whole company involved. Silos create an “us vs. them” mindset. Get other departments involved in decision making early and often.

Adapted from “Create a Culture Where Difficult Conversations Aren’t So Hard,” by Jim Whitehurst

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

 

 

Use Celebrations to Mark Important Moments at Work

customers 11Leadership Tip of the Week from HBR

People have long used ceremonies — bar mitzvahs, baptisms, weddings, inaugurations, quinceañeras — to mark changes and turning points.

Companies have ceremonies too, but they often focus on celebrating the positive: birthdays, work anniversaries, promotions, and project victories.

These types of recognition are important and shouldn’t stop, but companies should consider using celebrations to help people through hard times. This can be a powerful way to mark difficulties, acknowledge dark passages, honor those who have made sacrifices or experienced hardship, and help people move on.

You may not pop a bottle of champagne after a difficult reorg, but you might gather as a group and read your mission statement aloud or hold a mock funeral for the past (as Steve Jobs did at the 2002 Worldwide Developers Conference, to mark the end of the Mac’s OS 9).

Communal experiences like these can help strengthen your group’s bonds, values, and vision.

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

 

Listening as Leadership Tool

Listening as tool

Leadership Tip of the week,

adapted from HBR

What do you think?  best question asked to set up listening

Listening Is an Overlooked Leadership Tool

Listening can be a challenging skill to master and  three levels of listening have been identified:

  1. Internal listening- your own mind talk is focused on your own thoughts, worries, and priorities, even as you pretend you’re focusing on the other person
  2. Focused Listening-is being able to focus on the other person, but you’re still not connecting fully to them. The phone may be down and you may be nodding in agreement, but you may not be picking up on the small nuances the person is sharing
  3. 360degree listening This is where the magic happens. You’re not only listening to what the person is saying, but how they’re saying it — and, even better, what they’re not saying, like when they get energized about certain topics or when they pause and talk around

The impact on Leadership of moving quickly through your mindtalk to 360 degree listening can’t be underestimated.

Three Tips to Listen Better for Ninja 360 listening skills

  1. Look People in the Eye
  2. Create space in your day
  3. Ask more Questions

Full Article by Melissa Daimler @Twitter

http://www.hbr.org/2016/05/listening-is-an-overlooked-leadership-tool

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