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4 June 2014

Big Data Marketing

For this Big Data marketing report DADI+ will focus on showcasing statistics and insight, and how brands have experienced success through the use of Big Data in different sectors.!

A majority of the case studies in this report is in the retail space (ca: 40%). 15% each are found in transporting and the travel industry.!

And the remaining 20% is in the automotive, food and health care industry.

About

1. Insights2. Retail3. Travel4. Automotive5. Transporting6. Food7. Health care!

Content

Insights

• Of the organisations that used big data at least half the time in their marketing campaigns, 3 in 5 (60%) said that they had exceeded their goals.

• 7 of 10 firms in the 50% or more said that they were able to pinpoint the right audience in all or most of their media activities, double the number in the under 50% group.

• More than 9 in 10 companies (92%) who said that they had made sufficient use of big data met or exceeded their goals

Insights

Big Data statistics

More information:

http://www.forbes.com/sites/forbesinsights/2013/11/15/survey-demonstrates-the-benefits-of-big-data/

• 90% of the world’s data has been created in the last 2 years

• Big data is projected to grow into a $53.4 billion market by 2017, up from $10.2 billion last year

• By 2020, at least one-third of all data will exist in or pass through the cloud

Insights

Big Data statistics

More information:

http://www.baselinemag.com/analytics-big-data/slideshows/surprising-statistics-about-big-data.html

• China will account for more than one-fifth of the world's data by 2020

• 51% say the lack of available talent is one of the biggest impediments to making better decisions with big data

Insights

Big Data statistics

More information:

http://www.baselinemag.com/analytics-big-data/slideshows/surprising-statistics-about-big-data.html

Retail

• Amazon has generated 29% of sales through their recommendations engine which suggests popular products to specific customers

• Amazon are analysing customer data coming from 152 million+ accounts and steadily growing

• More than 10 million Amazon Prime subscribers and over 103 million monthly shoppers (source)

Retail and Big Data

Amazon

More information:

http://www.fastcodesign.com/1669551/how-companies-like-amazon-use-big-data-to-make-you-love-them

"It is really important that if you go into this big data world that you have limitless possibilities in your hand. You should not be restricted in the way you store things or the way you process it" - Amazon CTO Werner Vogels

• In the U.S., their non-media revenue grew 28% year on year

• They are investing a greater percentage of their revenue in technology and content (7.9% up from 6.5%)

• comScore found that product searches on Amazon have grown 73% over the last year while shopping searches on Google have been flat (2012)

Amazon - The future product king

More information:

http://bloomreach.com/2013/06/have-you-recognized-amazon-as-the-top-competitor/

Retail and Big Data

Amazon have for example been using Big Data to improve personalised offerings through their recommendation engine. !

And they have seen both a growth in sales and revenue. !

They have also seen a 73% growth in product searches through their services compared to Google going flat (2012).

Amazon - SummaryRetail and Big Data

Online fashion retailer Asos claimed a 37% revenue increase in the last quarter to 2013 thanks to data insights that helped structure its pricing competitively, the brand has said. !

- The Guardian

EDITD is a retail technology company, helping the apparel industry have the right products, at the right price, at the right time. !!

EDITD run the world’s biggest apparel data warehouse, and their product is used globally by brands including Gap, ASOS, Gilt Groupe and Target, among many others. - EDITD

EDITD

More information:

http://editd.com/press/

Retail and Big Data

“Big data analysis in real time means that fashion buyers can get cutting-edge information about what's hot - and not” !

- Samuel Gibbs on EDIDT - The Guardian

Big Data specialists Editd have since coming into the market in 2009 EDITD gained a lot of clients in the fashion world such as Asos, Gap and Target. !

And they have shown to be a successful addition for Asos with revenue up 37%. !

They have also secured a $4.4 million from private equity for expansion (source)

EDITD - SummaryRetail and Big Data

Customer benefits and perks trough their Fashion Rewards Program allows Nordstrom to gather the needed customer data.!!

• Customers must have a Nordstrom credit card or a Nordstrom Visa card in order to receive benefits and deals, which tracks the shoppers spend and rewards points.

Nordstrom

More information:

http://www.business2community.com/big-data/retailers-using-big-data-secret-behind-nordstroms-success

Retail and Big Data

• Nordstrom is doubling down on the web, announcing $1 billion investment in its e-commerce channel over the next five years

!

“Nordstrom has invested in partnering with JMP software to understand product and brand relationships for their customers” (source).

Nordstrom

More information:

http://www.business2community.com/big-data/retailers-using-big-data-secret-behind-nordstroms-success

Retail and Big Data

“(Ecommerce) is our fastest-growing channel and it is expanding our reach to existing and new customers. We see substantial opportunities for outsized growth to continue as we further improve the online customer experience” !

- company president Blake Nordstrom

From 2012 more benefits, lower thresholds and cash back to grow their customer base = more customer data!!

• Overall sales grew by 12.1% year-over-year with e-commerce achieving an 37% growth

Nordstrom

More information:

http://www.geekwire.com/2013/nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust/

Retail and Big Data

They are Nordstrom Labs, a team of techies, designers, entrepreneurs, statisticians, researchers, and artists, all trying to discover the future of retailIn order to facilitate future innovations in retail and data Nordstrom started their own innovation lab.

Nordstrom Innovation Lab

More information:

http://www.bigdata-startups.com/BigData-startup/nordstrom-drives-with-innovation-big-data-experiments/

Retail and Big Data

“Some strategies and ideas will work. Others won’t. If you don’t test new things,

you’ll never innovate. Don’t panic if something doesn’t work — celebrate it!”

!

- Jamie Nordstrom, President Nordstrom Direct, 2012 during the Shop.org

Summit

Nordstrom have recently made a $1 billion investment into their e-commerce channel in a 5 year plan. !

Their overall sales grew by 12.1% year-over-year with e-commerce achieving an 37% growth in 2012. !

And they are also focusing on innovations through a specially dedicated innovation lab and team.

Nordstrom - SummaryRetail and Big Data

Automercados integrated data across its 15 stores and corporate systems to enable the sharing of trusted information and gain greater insight into operations. !

• Quickly review daily inventory levels • Store sales • And cost of goods to see which products are selling, which are most profitable and which

promotions are most successful

Automercados Plaza’s

More information:

http://public.dhe.ibm.com/common/ssi/ecm/en/imm14097usen/IMM14097USEN.PDF

Retail and Big Data

“We had a big mess related to pricing, inventory, sales, distribution and merchandizing,” !

“We have nearly US $20 million in inventory and we tracked related information in different systems and compiled it manually. We needed an integrated view to understand exactly what we have.” !

- Jesus Romero, CIO, Automercados Plaza’s

Results by integrating information across the enterprise: !

• Nearly 30% increase in revenue • US$7 million increase in annual profitability !

Romero attributes these increases to better inventory management and the ability to more quickly adjust to changing market conditions.

Automercados Plaza’s

More information:

http://public.dhe.ibm.com/common/ssi/ecm/en/imm14097usen/IMM14097USEN.PDF

Retail and Big Data

Automercado have made big data investments across its 15 stores to better overhaul stock and productivity. !

They have seen Nearly 30% increase in revenue and US$7 million increase in annual profitability

Automercados Plaza - SummaryRetail and Big Data

American Apparel are using its surveillance cameras, to measure actual sales and shopping behaviours.!!

This led to saved costs by combining its traffic management and loss prevention systems into a single platform. !

• As a result American Apparel increased in-store sales by more than 30%. • While reducing theft by 16% according to Retail TouchPoints.

American Apparel

More information:

https://www.credit-suisse.com/ch/en/news-and-expertise/2013/06/en/big-data-reinventing-shopping

Retail and Big Data

“By combining our traffic management and loss prevention systems into a single platform, not only did we save 40% in capital costs, but we also made asset protection more efficient by applying analytics to our LP needs.” !

- American Apparel CIO, Stacey Shulman

The American fashion brand have showed how the use of data in their traffic management system combined with a improved check on in-store security footage was successful. !

Increased in-store sales with 30% and reducing theft with 16%.

American Apparel - SummaryRetail and Big Data

“The main goal for Macy’s CEO, Terry Lundgren is to offer more localised, personalised and smarter retail customer experience across all channels.” !

• Such as out-of-stock rates • Price promotions • Sell-through rates !

Combining those with product SKU data (location & time) to optimise their local assortments to the individual customer segments in those locations.

Macy’s

More information:

http://public.dhe.ibm.com/common/ssi/ecm/en/imm14097usen/IMM14097USEN.PDF

Retail and Big Data

Macy’s have used Big Data to improve their customer experience through localised, personalised and a smarter retail experience. !

This through improving their records of out-of-stock rates, price promotions and sell-through rates. !

And also an investment in a mobile app.

Macy’s - SummaryRetail and Big Data

Walmart applied modern data mining and analytics techniques to its repository of Big Data, accrued through online channels, and its e-commerce site.

The results:Walmart was able to extract an extra 10%-15% of revenue through increased sales via its ecommerce site. For Walmart this equates to around an extra $1 billion in revenue!

Walmart

More information:

http://www.customercentric.info/walmart-demonstrates-the-value-of-big-data/

Retail and Big Data

Walmart plans to implement its mobile strategy to improve its revenues. It is planning to offer a mobile application to help customers create shopping lists by suggesting to them what they should buy. !

Walmart is also planning to create a mobile app which will help customers when they’re already in the stores (scan QR codes for discounts and prices).

Mobile Walmart

More information:

http://cloudtimes.org/2013/06/07/wal-mart-big-data-mobile-marketing-strategy/

Retail and Big Data

According to a study conducted by the retail store. !

• Customers who make use of its mobile applications shop at Walmart’s stores at least twice a month

• They also spend 40% more monthly as compared to customers who are non-app users

Mobile Walmart

More information:

http://cloudtimes.org/2013/06/07/wal-mart-big-data-mobile-marketing-strategy/

Retail and Big Data

Walmart was able to extract an extra 10%-15% of revenue through increased sales via its ecommerce site. And for Walmart this equates to around an extra $1 billion in revenue. !

This through their investment in Big Data and Walmart is also expecting to invest much of this into their mobile efforts.

Walmart - SummaryRetail and Big Data

Kohl’s is testing real-time personalised offers in five of its stores. !Shoppers who walk into one of those stores can opt in for offers via their smartphones. !

So if a shopper lingers in the shoe department, for example, they’ll receive a coupon based on “the shoes they looked at online but never bought” !

- IBM chairman and CEO Ginni Rometty said

Kohl's

More information:

http://www.forbes.com/sites/barbarathau/why-the-smart-use-of-big-data-will-transform-the-retail-industry/

Retail and Big Data

And there’s a good chance Kohl’s will earn that sale. !

That’s because “customers are more likely to respond to an offer when it’s at the moment of purchase when they’re shopping.” !

What’s more, “almost 70% of you (customers) want information and a coupon when you shop” !

- IBM chairman and CEO Ginni Rometty!

Kohl's

More information:

http://www.forbes.com/sites/barbarathau/why-the-smart-use-of-big-data-will-transform-the-retail-industry/

Retail and Big Data

Kohl’s is exploring in-store experiences and real-time data to improve their customer experience. !

Coupons and real-time deals offered for building a stronger customer relationship.

Kohl’s - SummaryRetail and Big Data

Travel

Travel and Big Data

Airbnb’s road to $10B valuation

“Getting back to the concept of data being the voice of the customer … when [users] come to our site [there's] a lot of A/B testing here, looking for ways to make it more intuitive and satisfying to a person of any demographic, anywhere in the world.”!!

- Riley Newman

More information:

http://venturebeat.com/2014/05/18/how-airbnb-used-data-to-propel-its-growth-to-a-10b-valuation/

“Data is the voice of your customer. Data is effectively a record of an action someone in your community performed, which represents a decision they made about what to do (or not) with your product. !

Data scientists can translate those decisions to stories that others can understand” !

- Riley Newman, head of data science at Airbnb

2014 Airbnb discovered that users from certain Asian countries had a high bounce rate. Looking at data it was clear that at the “Neighborhood” link, people became lost in the photos, and never returned to booking.!!

So “Neighborhood” was removed and instead top traveling destinations was showcased. !

As a result, Airbnb saw more than a 10% lift in user conversion from their Asian visitors!

Airbnb’s road to $10B valuation

More information:

http://venturebeat.com/2014/05/18/how-airbnb-used-data-to-propel-its-growth-to-a-10b-valuation/

Travel and Big Data

For Airbnb the role of data helped them to decrease bounce-rates for bookings in certain Asian countries, and in general as continuous tool to improve the customer experience. !

This helped them to a 10% lift in user conversion in these Asian countries and taking the company to a $10B valuation.

Airbnb - SummaryTravel and Big Data

British Airways launched last year a loyalty program called “Know Me” which blended loyalty information with data on the online behaviour and buying habits of 20 million BA customers.

British Airways

More information:

http://www.britishairways.com/careers/commercial.shtml

Travel and Big Data

“The Know Me team is building a single customer view to draw together all the information sitting across BA’s different data warehouses and ensuring that the insights gained are intelligently exploited to anticipate and meet our customers’ needs.”!!

- BA

British Airways

More information:

http://www.britishairways.com/careers/commercial.shtml

Travel and Big Data

"We're seeing tangible, pragmatic business benefits using big data, whether it's to increase the look-to-book ratio, decrease the cost of operations, boost revenue yields or increase customer satisfaction" !

- Herve Couturier, executive VP at reservation services giant Amadeus

For British Airways Big Data has helped them to increase the look-to-book ratio, decrease the cost of operations, boost revenue yields or increase customer satisfaction. !

And also as a customer experience tool in their loyalty programme ‘Know Me’

British Airways - SummaryTravel and Big Data

Automotive

The role of data within the automotive industry is high in every aspects. From built to maintenance and everyday driving. !

“The advent of big data is affecting Ford Motor Co. in some significant ways, from how it analyzes its supply chain to the features it puts into its cars.”

Automotive and Big Data

Ford

More information:

http://gigaom.com/2013/04/26/how-data-is-changing-the-car-game-for-ford/

“The test cars in Ford’s research labs are collecting about 250 gigabytes of data per

hour from high-resolution cameras and an array of sensors, Cavaretta noted, and the

company is trying to find out what data is most useful and how it might be rolled into

production vehicles.”

- Derrick Harris Gigaom

!

(Mike Cavaretta, technical leader for predictive analytics and data mining with Ford

Research & Innovation)

For Ford the role of data have been instrumental in the production phase. !

Mike Cavaretta, technical leader for predictive analytics and data mining mentions how Ford’s research labs are collecting about 250 gigabytes of data per hour to improve productions and decrease faults.

Ford - SummaryAutomotive and Big Data

In Asia where Uber is currently investing data analytics is already a big part for Indian companies such as Meru Cabs and OlaCabs.“About a year-and-a-half- ago, the average trip made by a taxi driver at Meru was four per day. This has improved to 5.8 trips now.”

Taxi data

More information:

http://www.business-standard.com/article/technology/big-data-analytics-changes-the-rules-of-road-travel

Automotive and Big Data

Radio cab firms are also collecting data on traffic situation, road condition and speed, which they say help them offer better services to customers.”!!

- Siddhartha Pahwa Chief Executive Officer Meru Cabs

Taxi data

More information:

http://www.business-standard.com/article/technology/big-data-analytics-changes-the-rules-of-road-travel

Automotive and Big Data

“By using this data and based on everyday predictability of data, we try to enhance the number of trips that one cab makes per day” !

- Siddhartha Pahwa, Chief Executive Officer Meru Cabs

Meru was able to bring down its cancellation rate. Over a year ago, Meru had a cancellation rate of 5-6%; it is now at 0.3%. !

“Our loyalty has gone up from 63% to 80%. This also means our drivers have managed to increase their earnings by 30-40%” !

- Siddhartha Pahwa

Taxi data

More information:

http://www.business-standard.com/article/technology/big-data-analytics-changes-the-rules-of-road-travel

Automotive and Big Data

“Since we can predict the demand, we can allow the cab driver who is closer to the location take the business. !

This reduces his travel time and gives him better returns. In general, the maximum capacity utilisation among taxis is 40%.”

With us, drivers have increased their utilisation to 85% by understanding what

is the best time for them to make maximum business”

!

- Bhavish Aggarwal, co-founder and CEO OlaCabs

The role of data is increasing for companies operating in the taxi world. Indian companies such as OlaCabs and Meru have decreased cancellation rates and increased revenue. !

And for Google financed Uber data is an integral part of their services and efforts.

Taxi data - SummaryAutomotive and Big Data

Transporting

“German mail order company Otto Group is very much a data-driven company. !

With revenues of more than €11 billion from over 1,800 online catalogues around the world, including Freemans and Grattan in the UK, up to 100 million data records or11 gigabytes are fed into its systems daily.”

Transporting and Big Data

Otto Group

More information:

http://raconteur.net/technology/big-success-stories-of-big-data-analytics

“We now view big data analytics as a critical part of our operations and have integrated it into our overall corporate strategy,” !

“The impact on Otto’s revenue brought on by more accurate forecasts runs to a figure worth tens of millions.”

“Our sales forecasting has been up to 40% more accurate, depending on the type of catalogue.” !

- Michael Sinn, the group’s vice president of buying division support

German Otto Group’s vice president Michael Sinn talks about data’s role “as a critical part of our operations and have integrated it into our overall corporate strategy”. !

And how their “sales forecasting has been up to 40% more accurate, depending on the type of catalogue”.

Otto Group - SummaryTransporting and Big Data

Since 2008, UPS piloted the (Telematics) technology on 1,500 delivery trucks across the country, testing the equipment in various geographies and climates. !

In 2009 and 2010 an additional 20,000 vehicles was expanded into the program. !

The telematics devices capture data on more than 200 elements, including speed, RPM, oil pressure, seat belt use, number of times the truck is placed in reverse, and idling time.

UPS

More information:

http://www.automotive-fleet.com/channel/green-fleet-telematics-sensor-equipped-trucks-help-ups-control-costs

Transporting and Big Data

"Telematics isn't new to UPS. We've been using telematics for more than 20 years to improve the efficiency and safety of our tractor-trailer fleet,”

"What is new is the proprietary information and sophisticated algorithms we developed to analyze the rich stream of data captured by more than 200 sensors on our delivery trucks." !

- Donna Longino, a UPS spokesperson

German Otto Group’s vice president Michael Sinn talks about data’s role “as a critical part of our operations and have integrated it into our overall corporate strategy”. !

And how their “sales forecasting has been up to 40% more accurate, depending on the type of catalogue”.

UPS - SummaryTransporting and Big Data

Food

“Analytics enable the YO! Sushi operations team to meet every morning to discuss analysis of the previous day’s trading in its 68 restaurants around the world, comparing it with budget, the previous week and the same week a year ago. !

The team can then formulate action plans for each restaurant based on the information.” !

- Billy Waters Yo! Sushi! IT manager

Food and Big Data

Yo! Sushi!

More information:

http://raconteur.net/technology/big-success-stories-of-big-data-analytics

“As we expand rapidly, a lot of factors affect our business at any one time,” !

“[Analytics] enables us to see and react to any revenue increases, declines or unexpected patterns.” !

- Billy Waters, the company’s IT manager

For Yo! Sushi! data is playing a big part in their day-to-day efficiency in the form of discussing previous day’s trading in its 68 restaurants around the world during their morning meetings. !

This to go through changes in budget and future investments.

YO! Sushi! - SummaryFood and Big Data

In the late 90’s Tesco introduced their loyalty card (Tesco Clubcard), since then Big Data has been a big part of their daily work.Encompassing more than 20 analytical tools in its commercial functions—to support day-to-day decision making.

Tesco

More information:

http://www.deloitte.com/assets/Dcom-UK/Consumer%20Business/uk-cb-consumer-review-edition-5.pdf

Food and Big Data

Its insight-driven commercial strategy has contributed to sustained profitability: !

• Since 2000, Tesco has improved its profitability every year, more than tripling its profits between 2000 and 2012

Tesco

More information:

http://www.deloitte.com/assets/Dcom-UK/Consumer%20Business/uk-cb-consumer-review-edition-5.pdf

Food and Big Data

“We had done about 10 times better than two very good companies, !

That was done because of data and because of transforming the customer experience.”

“From that day forward I never had to look for growth. Tesco grew by 10% a year in an industry growing at 2% because the voice of the customer gave the direction.” !

- Sir Terry Leathy

For Tesco data has played a big part in their success as Sir Terry Leathy mentions; !

“Tesco grew by 10% a year in an industry growing at 2% because the voice of the customer gave the direction.” !

For improved control over stock rates, product popularity and increased efficiency in day-to-day work.

Tesco - SummaryFood and Big Data

Health care

Soon Chun Hyang University Hospital implemented an integrated medical records solution to deliver an excellent care experience to its patients - enabling the hospital to prepare patient scan data for physicians 95% faster.

Health care and Big Data

Soon Chun Hyang University Hospital

More information:

http://www-03.ibm.com/software/businesscasestudies/en/us/corp?synkey=D222710I63607I11

• Enables the hospital to prepare scan data for physicians 95% faster

• Supports availability levels of over 99% !

• Increased efficiency could lower annual operating costs by 40%

Soon Chun Hyang University Hospital

More information:

http://www-03.ibm.com/software/businesscasestudies/en/us/corp?synkey=D222710I63607I11

Health care and Big Data

“Today, patient imaging data can be shared with another hospital department for analysis in just 30 minutes – an improvement of over 95%.”

“Because the IBM solution is entirely electronic, we have also reduced the risks associated with losing physical copies of test results.” !

- Yoon SooKeun, Chief Information Officer, Soon Chun Hyang University Hospital

For Soon Chun Hyang University Hospital data has been integral in their efforts of lowering annual operating costs with 40%. !

Reduced the risk of losing physical copies of test results and improving the patient scan data to become 90% better.

Soon Chun Hyang University Hospital - SummaryHealth care and Big Data

• Enables one of its novel algorithms, the high-dimensional propensity scoring, to run 20-30 times faster than in its previous database environment

• Allows the department to conduct basic analytic processing at 2-3 times previous speeds

• Enables research studies on larger databases and exploration of previously inconceivable new research avenues

Brigham and Women’s Hospital

More information:

http://public.dhe.ibm.com/common/ssi/ecm/en/imm14097usen/IMM14097USEN.PDF

Health care and Big Data

The more efficient use of data through IBM Solutions helped Brigham and Women’s hospital to run a faster and more efficient service and database operation.

Brigham and Women’s Hospital - SummaryHealth care and Big Data

Thank You!