Collaborating to Win with Customer 1st Promotions
Howard Langer, Global Capability MD – Price & Promotions
dunnhumby
3 © dunnhumby 2015 | Confidential
The benefits of a global view
$500 BILLIONRETAIL SPEND
800 MILLIONCUSTOMERS GLOBALLY
2,000EXPERTS
© dunnhumby 2015 | Confidential4
PARTNER VALUE CREATIONPROPOSITION: grow like for like sales and net margin via better decisions throughout the business
dunnhumby’s “Win Win Win” approachdunnhumby Approach
© dunnhumby 2015 | Confidential5
INSIGHTS TO SUPPLIERSPROPOSITION: partner to provide the unique customer data asset to suppliers through customer reporting and analysis service
PARTNER VALUE CREATIONPROPOSITION: grow like for like sales and net margin via better decisions throughout the business
dunnhumby’s “Win Win Win” approachdunnhumby Approach
© dunnhumby 2015 | Confidential6
INSIGHTS TO SUPPLIERSPROPOSITION: partner to provide the unique customer data asset to suppliers through customer reporting and analysis service
MEDIA TO SUPPLIERSPROPOSITION: partner to provide targeted communications (statement and interest mailings etc.) and in store media to suppliers
PARTNER VALUE CREATIONPROPOSITION: grow like for like sales and net margin via better decisions throughout the business
dunnhumby’s “Win Win Win” approachdunnhumby Approach
© dunnhumby 2015 | Confidential7
“BIG DATA”(e.g. digital media exposure data)
SHOPPER DATA
NEW INSIGHT DATASET
Big data and shopper dataCustomer Science
8 © dunnhumby 2015 | Confidential
How Important are Promotions to Consumers?
2%
8%
9%
9%
10%
26%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
EA S E
RELAT IO NSHIP
R EWA RDS
P ROMOT IONS
P R IC E
RA NGE A ND LAYO UT
A F F IN I TY
Drivers of Customer Centricity: Grocery Retail – France, Oct 2015
9 © dunnhumby 2015 | Confidential
Source: The Nielsen Company 2015
OF PROMOTIONS GLOBALLYDON’T BREAK EVEN
Promotions aren’t working…
10 © dunnhumby 2015 | Confidential
Source: The Nielsen Company 2015
OF PRICING INITIATIVES ARE ONLY ‘SOMEWHAT’ EFFECTIVE
OR ‘NOT EFFECTIVE AT ALL’
Source: RSR Pricing 2015: Learning To Live In A Dynamic, Promotional World
OF PROMOTIONS GLOBALLYDON’T BREAK EVEN
Pricing isn’t either….
11 © dunnhumby 2015 | Confidential
How are we doing?
Dale Hagemeyer, POI…
“Progress on Promotional Effectiveness has been anaemic over the last decade”
12 © dunnhumby 2015 | Confidential
Follow the vendor
Follow the competitor
13 © dunnhumby 2015 | Confidential
Global Promotions Trends
ChinaUK
LatAm
US
France
% Sales on Promotion
14 © dunnhumby 2015 | Confidential
GPA in Brazil
15 © dunnhumby 2015 | Confidential
But here we are….