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NOT TO BE DISTRIBUTED WITHOUT THE
PERMISSION OF IBIS AND CLIVE HUMBY
Data is the new oilClive Humby
Founder, dunnhumby
Chief Data Scientist, Starcount
Wo
rld
Eco
no
mic
Fo
rum
20
11
‘Data is only interesting if you can tell stories that move people and businesses to change the way they engage and
respond.’
‘If you don’t understand motivations and behaviours you (and your brand) can't be relevant.’
‘Most Customer Insight teams today are just glorified management information teams… if you look at the data long
and hard you can always find a good news.’
A brief timeline of customer insights1955 19851965 1975 20151995 2005
Social classABC1C2DE
You are the job you do
Geodemo-graphics
ACORNMOSAIC
You are whereYou live
LifestyleslistsNDL
GuaranteeCards
You are what you say
Customer dataTESCOAmexVisa
Amazon
You are what you buy
Big dataSocial mediaDigital media
Mobile behavioursBrowsing behaviour
You are what you are
passionate about
‘Claimed & demographic data’ ‘Actual & behavioural data’
Cost per terabyte of storage Not Possible $105m $1,125,000 $500 $30
Inspired by one of the first “big data” projects
Lessons from retailer ‘loyalty’
cardsWe hear a lot about customer loyalty
… but what is the real truth?
THE LOYALTY MYTH
1995
You are what you buy
• Build a set of metrics to measure change and satisfaction against each customer measure every week…
• … by store
• … by category
• … by region
Who wins… the retailer data modelBenefits for the retailer, manufacturers and customers
MANUFACTURERS• improved Marketing ROI• better NPD• effective promotions• increased brand loyalty
RETAILERS• higher footfall• increased share of wallet• better retail offer• new service development
• promotions• better shopping trip• new meal solutions
• products I want• better prices• relevant offers
CUSTOMERS
Big data… shopping, mobile, entertainment, payment cards
14
Is your data rich enough?Frequent, descriptive transactions
Easy to build and tell stories
Is it measuring your customers or your process?
Do you need contextual richness?
Is your data a real differentiator?
Can you get to a better answer via other sources?
If your data is too big… use samples
if it’s too small… use models
It’s not about the efficacy of your model
It’s about its relevance to the customer
and your organisation’s ability to act upon it
Understanding customers today…
What else is available?
‘Big Data’ is producing new data sources to power decisions…
… government open data on demographics, transport and infrastructure… mobile phone data from major players on customer travel patterns… purchasing profiles from payment card players… inexpensive data storage and apps … social media data on peoples true passions
How relevant is this?
Technology cost is no longer a barrier…
… plenty of visual, easy to use tools at low cost… Google Maps and related open source data takes away barriers… Apps and M-commerce opens up new data sources
Example : Wejo : Fleet Driver Measurement
Harnessing data from
‘The Internet of Things’
The data myth: it’s all about big data
Useful data is not big, it’s tiny
Big data will mean…
customers take control of their data
new commercial models
alternative solutions to the same problem
different models of customer value
greater relevance and trust
Key question…Is it cool or is it creepy???
Data is the new oil… and shares many of its challenges
In its crude state it is difficult to use and benefit from
It needs refining and external catalysts to make it useful
When processed it is potentially explosive and dangerous
Just like plastics and polymers…
… some of the best and most profitable uses are what is made from it by others
