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Insight for Merchants • Knowledge of aggregated consumer segment spend both inside and outside of your locations delivers valuable insight for acquisition, loyalty and retention and strategic decisions. • MasterCard delivers this unprecedented 360-degree view to help you: Understand your market Benchmark your performance Grow your customer base
Evolution of the Customer Relationship Interpersonal: 1 to 1
Evolution of the Customer Relationship Purchase Tracking
Evolution of the Customer Relationship Demographic Analysis
Evolution of the Customer Relationship Impersonal Relationships
Evolution of the Customer Relationship Impersonal Relationships
Need for Behavioral Understanding Unique behaviors?
Need for Behavioral Understanding Unique behaviors? Brand affinity?
Need for Behavioral Understanding Unique behaviors? Time of day? Brand affinity?
Need for Behavioral Understanding Unique behaviors? Time of day? Brand affinity? Distance of travel?
Need for Behavioral Understanding Unique behaviors? Time of day? Brand affinity? Distance of travel? Competitive spend?
A New Approach Macro Micro
Micro Insights Drive Macro Trends Illustrative
Micro Insights Drive Macro Trends USA Canada U.K. Source Country Spend Category/ Country Travel YoY Spend YoY Restaurants Illustrative USA 5.1% 5.2% 7.23% Canada -17.8% 12.3% Caribbean U.K. 14.8% 0.4%
Micro Insights Drive Macro Trends • Compare your business growth based on spend and travel against your peer group. Benchmarking Illustrative Merchant Country Competition Country YoY Change in Accounts in Feeder Market 4/2010-3/2011 4/2011-3/2012
Behavioral Data in Action • A retailer with an existing loyalty program wanted to identify opportunities for growth. • Primary Objectives: • Increasing customer spend • Gaining market share from competitors
Behavioral Data in Action • Methodology • Establish which customers have the largest headroom opportunity • Evaluate the opportunity of Top Customers and Acquisition Target Customers • Act on Acquisition Target Customers to drive results MACRO Total Industry MICRO MasterCard Account Spending In Industry Retailer Account Spending
Loyalty Segmentation • Methodology $$$$ Total Customer Spend in Industry • Total Customer Spend • in Industry $$ • Total Customer Loyalty • to Merchant $ High Medium Low Not Bought Total Customer Loyalty to Merchant
Loyalty Segmentation • Identifying Segments Top Customers $$$$ Total Customer Spend in Industry $$ Non Top Customers $ High Medium Low Not Bought Total Customer Loyalty to Merchant
Loyalty Segmentation • Quantifying Opportunity Annual Spend At Merchant: $91 Annual Spend at Competitive Set: $722 Acquisition Target Customers Top Customers $$$$ Total Customer Spend in Industry Illustrative $$ Annual Spend At Merchant: $527 Annual Spend at Competitive Set: $381 $ High Medium Low Not Bought Total Customer Loyalty to Merchant
Behavioral Segmentation Acquisition Target Customer: AffluentNester
Behavioral Segmentation Age: 50+ Income: $100K+ • General Demographics
Behavioral Segmentation Electronics Home Appliances • Brand Affinities
Behavioral Segmentation Tennis • Related Category Spend
Behavioral Segmentation Entertainment • Unrelated Category Spend
Behavioral Segmentation Growing propensity to buy online • Channel Preferences
Behavioral Segmentation • 360° Customer View
Behavioral Segmentation Top Customer: Do-it Yourselfer
Behavioral Segmentation Age: 30-40 Income: $50-75K • General Demographics
Behavioral Segmentation Hockey Equipment • Brand Affinities
Behavioral Segmentation Electronics • Related Category Spend
Behavioral Segmentation Fuel • Unrelated Category Spend
Behavioral Segmentation Growing propensity to buy online • Channel Preferences
Behavioral Segmentation • 360° Customer View
Acquisition & Engagement We believe that this provides a new benchmarking metric to allow for a more detailed view of growth, relative to market 58% (Your Spend) 42% (Competitor) 58% (Your Spend) Growth Opportunity Targeted Campaign
Acquisition & Engagement • KNOW • ACT • MEASURE 58% (Your Spend) 42% (Competitor) 58% (Your Spend)
Myths of Big Data • Myth 1: Raw data is enough. • Myth 2: All sources are created equal. • Myth 3: Big data breeds Big Brother.
Why MasterCard is Uniquely Qualified • 1.9 billion global cards. • 160 million transactions/hour. • Knowledge of aggregated, holistic consumer spend delivers key insights for acquisition, loyalty and retention. • MasterCard delivers this unprecedented 360-degree view, from macro economic to micro segmented, spanning a full range of industries. Driving business advantage through insight and foresight and engagement