Putting Consumers first using Data Science

uncover valuable insights into what customers want, where

they want it, and how much they’re willing to pay for it

Thank Youabout

What we do – the ‘elevator pitch’

dunnhumby is the world’s leading customer science company.

We analyse data and apply insights from more than 400 million customers across the globe to create better customer experiences and build loyalty.

Our insights and strategic process help clients create competitive advantage and enjoy sustained growth.

WHYWe’re passionate about loyalty and partnering for future growth

HOWWe place customers at the center of every decision

and personalize their experience

WHATOur capabilities build loyalty and emotional connections with

customers that create a lasting competitive advantage

Our mission

© dunnhumby 2014 | Confidential6

“We have loyal customers”

Assort based on sales and margin

Growing gross margin by vendor/class

Marketing to mass or broad group

Episodic customer insights

Acquisition based promotions

PRODUCT-CENTRIC ORGANIZATIONS

The best retailers put the customer at the center of every decision

“We are loyal to our customers”

Right products for the right customers

Grow share of customer wallet, profitably

Personalized targeted marketing

Continuous test and learn

CUSTOMER-CENTRICORGANIZATIONS

© dunnhumby 2014 | Confidential7

Data allows you to see customers as individuals

VALUE

CONVENIENE

VALUEEXPERIENCE

VARIETY

CONVENIENCE

© dunnhumby 2014 | Confidential8

And personalize the experience across your business

MASSDIFFERENTIATED

(Segmented) PERSONALISED

PR

ICE

&

PR

OM

OT

ION

AS

SO

RT

ME

NT

CO

MM

S

SELECT THE BEST PROMOTIONS

TARGETED PRICE INVESTMENTS

MY PERSONAL PROMOTIONS

SELECT THE CORE RANGE

DIFFERENTIATED STORES

MY SHOPPING LIST

EVALUATE IMPACT ON LOYALTY

CUSTOM CONTENT MY PERSONAL COUPONS

© dunnhumby 2014 | Confidential9

We use data to maximize the relevance of 1:1 communication

1:1COMMUNICATION

FREQUENCY & CADENCETiming of touch points

CONTENTCustomized content

CHANNELReaching the customerwith relevant touch points

TARGETINGFinding the right customer

OFFERRelevant offers

© dunnhumby 2014 | Confidential1010

SEGMENTATIONTARGETING

15 % BUYINGBEHAVIORALSEGMENTATION

22% ENHANCEDHOUSEHOLD

TARGETING

31% CUSTOMERRESPONSE

48%1:1

RELEVANCY

55%

We know that make things more relevant to customers drives sales

% of households engaging in communication over time

© dunnhumby 2014 | Confidential11

I feel like this is just for me.

This is something I am interested in.

I feel they really know me.

“WOW

WOW applies to every 1:1 connection with the customer

including offers, content, messaging and more.

The theory of

And helps to win the hearts and minds of your customers

© dunnhumby 2014 | Confidential12

• Focus on customer loyalty• Relevant, timely, personalized

customer communication by channel• Measurable and sustainable ROI-

value for your money• Ability to handle complexity• Complete package at scale

(Strategy, technology, analytics, and execution)

• Custom Designed Solutions• Unsurpassed expertise in analytics

& insights• Broad scale experience

in retail• The option of pursuing a broader

customer insights• Unique capabilities including

advanced social media advocacy

We can help to shift the focus to the customer

WHAT DUNNHUMBYCAN PROVIDE WHAT MAKES US DIFFERENT

CASE STUDIES

Macy’s

Macy’s Custom Books leveraged data to deliver each customer with more relevant content

A single Custom Book campaign could produce over 500,000 unique versions of the book, reflecting the shopping behavior of

each customer

• Custom Books were personalized by featuring the most relevant combination of product categories for each household

• Content/category selection driven by customer shopping data

• Offers, promotions, and creative execution were the same between Custom and Traditional books

15

16

“effective reach” is a critical concept…you don’t need to talk to everyone about everything to drive category sales

36-M

ENS SPORTSW

EAR X C

OLL

79-T

RADITIO

NAL SPORTSW

EAR

Category Lift per HHCustom Book vs. Base Book

16-W

OMENS S

HOES

85-H

OUSEWARES

3-PETIT

E SPORTSW

EAR

7-HOSIE

RY

81-T

EXTILES

33-C

OLOR AND T

REATMENT

38-F

RAGRANCES

26-K

IDS

6-FA

SHION J

EWELRY

5-M

ENS COLLECTIO

NS

25-M

ENS FURNIS

HINGS

8-HANDBAGS

35-F

INE J

EWELRY

12-C

ASUAL SPORTSW

EAR

28-W

OMEN'S

SPORTSW

EAR

84-L

UGGAGE

13-D

RESS ACCESSORIE

S

31-M

ENS TAIL

ORED CLOTHIN

G

86-F

URNITURE

22-IN

NERWEAR

87-M

ATTRESSES

82-T

ABLETOP

10-J

UNIOR S

PORTSWEAR

68-D

EC HSW

RS/TABLE L

INENS/D

ECOR

19-S

ILVER

27-B

OYS 2-2

0

80-N

EO COLLECTIO

NS

20-C

OATS

Sales for most categories in the Macy’s Custom Book matched or beat the “Traditional Business as

Usual” Book in spite of the category only appearing in books

for 30% of households (on average)

Our experience shows the longer term benefits of relevant content

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Week After First Customized Mailer

Cu

mu

lati

ve C

ust

om

ers

Sal

es L

ift

Fro

m R

ecei

vin

g P

erso

nal

-iz

ed M

aile

r

1 2

3

4

6 10X lift from 6 personalized campaigns vs 1

5

• Relevancy is about continually engaging customers with the right content over time

Impact of relevant content on Lift (37 weeks)

17

Kroger

Kroger’s MyMagazine brings personalized custom publishing to the grocery space

• Targeted editorial content• Increased emotional connection• Customer shopping data drives content

targeting

• Balanced coupon offering• 8 ranked retention offers• 8 ranked acquisition offers

And delivers seamless experience online

Open rates significantly higher than industry average

Personalized version outperformed previous campaign 2:1

Customers reaction was overwhelmingly positive “Finally! Thank you for making the magazine and the coupons digital.”

“Neat. I like this being tailored to my shopping habits.”

How Does Exadata Enable This

?

Several examples of why dunnhumby has been successful using Exadata

• Exadata performed 8x better than the next-closest competitor for our workload!

• Speed in data manipulation facilitates more data science and therefore more relevancy

• Concurrency was key

• SQL – A simple, yet powerful way to manipulate the data for analytical readiness

• Sharing and packaging SQL is easy

• 70% of our analysis done right in the database using SQL

• Oracle R enables deeper modeling without moving the data

How Exadata makes this possible

dunnhumby Engineered Architecture

Some fun technical bits

?

In addition to ETL staging and processing, we perform all full and incremental backups to the ZFS Appliance

• Roughly 14Tb per hour

• Full backups are then offloaded to tape

• Using the ZFS Appliance saves Exadata resources

Backups using the ZFS Appliance

?

Where are we headed with the Big Data Appliance

• Near-line storage for historical data

• Low cost distributed processing for analytical modeling

• Platform for machine learning

• Just the beginning

Use Cases for the BDA

?

dunnhumby is excited about the future

• Utilizing the ZFS Appliance for TEMP tablespaces

• Approximate DISTINCT COUNT functionality – a dunnhumby addition

• In-Memory Columnar Database

• R&D on creating RAM disk for TEMP tablespaces

What about tomorrow?

Thank You