The Dark Art of Shopper Data

ICSC European Outlet Conference The Dark Art of Shopper Data 24 March, 2015 Business Design Centre, London

The Dark Art of Shopper Data ICSC European Outlet Conference #ICSCEurope @ICSCEurope 2

Who Am I? Ben Chesser CEO Coniq 15 Years in Retail Marke2ng Coniq runs Shopper Engagement schemes for 19+ Outlets and Shopping Centres Including Value Retail, Land Securi2es and Hammerson From design, to implementa2on, to ongoing tenant engagement Covering 650+ Retail Brands ICSC European Outlet Conference #ICSCEurope @ICSCEurope

Why Are We Here Today? If you build it, they will come not anymore ICSC European Outlet Conference #ICSCEurope @ICSCEurope 4

To Cover 1) How can we collect shopper data? 2) How to make the data work for us? 3) Ben s top 2ps to harness the dark art ICSC European Outlet Conference #ICSCEurope @ICSCEurope 5

Did You Know ICSC European Outlet Conference #ICSCEurope @ICSCEurope 6

The Concentra2on of Spend % of Total Sales Top 10% of shoppers account for over 40% of spend Based on 720k transac2ons from 16 centres across Europe Shopper Value Segment ICSC European Outlet Conference #ICSCEurope @ICSCEurope 7

How to Collect Shopper Spend Data 1) Run loyalty schemes and send targeted rewards, incentives and privileges to shoppers. 2) Track effectiveness and spend generated and build detailed customer profiles 3) Target and optimise your marketing to build loyal shoppers and drive up sales ICSC European Outlet Conference #ICSCEurope @ICSCEurope 8

Where does the data come from? 8.2M 6.8M 726M Shoppers Total Transactions Tracked Total Spend Tracked Overall Centre Penetration 76% 148M Total Promotion Driven Spend Promotions Run 8,000 Retailer Locations 1,350 Till Points Linked Up 2,400 ICSC European Outlet Conference #ICSCEurope @ICSCEurope

Covering the Full Spectrum of Brands ICSC European Outlet Conference #ICSCEurope @ICSCEurope

1) How can we collect shopper data? 2) How to make the data work for us? 3) Ben s top 2ps to harness the dark art ICSC European Outlet Conference #ICSCEurope @ICSCEurope 11

How to Collect Shopper Data? It s mine all mine! Remember it s not your data, so ask nicely ICSC European Outlet Conference #ICSCEurope @ICSCEurope 12

The Triangle of Love What s the give- get Keep it simple- shoppers are lazy Make it personalised and relevant Make them feel special They NEED to be involved Why do they care about your scheme? Give them easy reliable technology Demonstrate sales uplia Make their lives easier- not harder Give them tools they will want to use Your shoppers and tenants hold the key to building shopper data, you need to keep them both motivated to help you ICSC European Outlet Conference #ICSCEurope @ICSCEurope 13

Shoppers Build a compelling give- get proposi2on for shoppers Make it easy for them to join Make it easy for them to use Don t alienate people embrace them ALL Use the Foot in the door approach Less really is more ICSC European Outlet Conference #ICSCEurope @ICSCEurope 14

How NOT to Collect Shopper Data? Lidl vs Morrisons full page Ad in the Sun etc zzzzzzzz ICSC European Outlet Conference #ICSCEurope @ICSCEurope 15

Tenants Sell your dream to them Tell them things they don t already know- share data Involve them, listen to them, engage them Incen2vise them and Keep the conversa2on going ICSC European Outlet Conference #ICSCEurope @ICSCEurope 16

Centre Management Design the scheme that is appropriate for your tenants and shoppers Is it discount or privilege? Tac2cal or strategic? Give it a good start- building cri2cal mass early is key Measure and mo2vate on breadth, depth, quality and consistency of data Celebrate success and learn from failure (quickly) Be agile and open minded ICSC European Outlet Conference #ICSCEurope @ICSCEurope 17

1) How can we collect shopper data? 2) How to make the data work for us? 3) Ben s top 2ps to harness the dark art ICSC European Outlet Conference #ICSCEurope @ICSCEurope 18

How to make the data work for you? Stakeholder Reporting Shopper experience Drive Sales Tenant Portfolio Build your brand Shopper Engagement Program ICSC European Outlet Conference #ICSCEurope @ICSCEurope 19

How to make the data work for you? Start Simple - Don t Over Engineer DO Go for low - hanging fruit Think about future needs Be agile and be ready to make some mistakes Get insight out to the business quickly DON T Build a Frankenstein's Monster Waste effort collec2ng data that you will not use Start simple but with a clear vision and make sure you and your suppliers can adapt along the way ICSC European Outlet Conference #ICSCEurope @ICSCEurope 20

Changing Shopper Behaviour # Transactions/ visit ATV Points or Stamp cards Theme related promotions Dwell time promos Free parking on threshold Threshold promotions Promos on high ticket items Total Turnover # Shoppers Frequency drivers (events, limited edition, off-peak) Anchor promotions Triggers F&B Sales Grow % who eat (grow dwell) Time specific Triggered ICSC European Outlet Conference #ICSCEurope @ICSCEurope 21

For Planning Loyalty Card Facebook AdWords Email Flyers App 9,600 users 4,032 cost 86 visitors 100 cost 2,549 visitors 1,712 cost 1,438 visitors 600 cost 2,059 visitors 2,000 cost 4,000 visitors 3,132 Cost (alributed) 0.42 Cost per visitor 28.57 Sales/ 1 of Spend 1.16 Cost per visitor 7.74 Sales/ 1 of Spend 0.67 Cost per visitor 9.87 Sales/ 1 of Spend 0.42 Cost per visitor 12.92 Sales/ 1 of Spend 0.97 Cost per visitor 6.18 Sales/ 1 of Spend 0.78 Cost per visitor 15.33 Sales/ 1 of Spend ICSC European Outlet Conference #ICSCEurope @ICSCEurope 22

For Leasing 160 140 120 100 80 60 40 20 0 40% 35% 30% 25% 20% 15% 10% 5% 0% Tenants Brand Conversion Rates Brand ATVs ICSC European Outlet Conference #ICSCEurope @ICSCEurope 23

Make The Technology Do The Hard Work The secret is in making your loyalty and shopper engagement system automa2cally use behavioural data, to improve the shopper experience Personalised app Targeted emails Automa2c communica2ons LocaQon triggered emails or push no2fica2ons Time they are in the centre Context relevant to the shopper Automated repor2ng Use Marketing Automation to do the heavy lifting ICSC European Outlet Conference #ICSCEurope @ICSCEurope 24

What s the point if nobody reads it? DO Tailor the data to the audience Spend 2me to make it look good Focus on Less is More- 1 page is enough Share it with your tenants at all levels (in 2me for them to react) Turn data into ACTIONS as quickly as possible DON T Swamp people with data it s beler that they come back hungry for more Wait for the perfect report- it doesn t exist Be afraid to get it wrong ICSC European Outlet Conference #ICSCEurope @ICSCEurope 25

1) How can we collect shopper data? 2) How to make the data work for us? 3) Ben s top 2ps to harness the dark art ICSC European Outlet Conference #ICSCEurope @ICSCEurope 26

Tip 1: Put the Shopper in the centre Segmentation App Cards Email PPC Social ICSC European Outlet Conference #ICSCEurope @ICSCEurope 27

Tip 2: People are Lazy- make it easy for your shoppers ICSC European Outlet Conference #ICSCEurope @ICSCEurope 28

Tip 3: You Need A Cri2cal Mass Early ICSC European Outlet Conference #ICSCEurope @ICSCEurope 29

Tip 4: Tenants are your weakest link and your best friend ICSC European Outlet Conference #ICSCEurope @ICSCEurope 30

Tip 5: There is no silver bullet. ICSC European Outlet Conference #ICSCEurope @ICSCEurope 31

Q&A #mallloyalty ask us a question Ben Chesser Direct line: +44 (0) 207 078 8359 ben.chesser@coniq.com www.coniq.com Follow us: @ConiqMarketing Like us: facebook.com/coniqmarketing ICSC European Outlet Conference #ICSCEurope @ICSCEurope 32