Originally appeared on Total Retail
Retail media networks (RMNs) continue to demonstrate how they can be a powerful monetization driver for retailers, creating a win-win-win for everyone involved. Retailers can monetize their valuable first-party data as well as their online and in-store inventory, while customers benefit from timely, relevant content that enhances their shopping experience. At the same time, advertisers can reach highly targeted audiences at critical moments near the point of purchase
Achieving this type of success requires overcoming challenges around fragmented and incomplete first-party data, which can limit a retailer’s ability to organize and use their data effectively. Additionally, many RMNs lack the analytical capacity to generate customer insights, build addressable audiences, and accurately measure success. To realize the full potential of their platforms, RMNs need partners that provide complementary data, strong identity solutions, and the expertise to transform insights into actionable strategies. This allows RMNs to drive winning outcomes for themselves, marketers, and their customers.
Here are the five steps an RMN should consider when selecting the right partner.
1. Build an identity foundation
First, the right partner needs to be able to organize and clean customer data. Given the millions of customer records and data points that a retailer has, RMNs need to make sure their data is highly usable. Whether it is a known customer record or an unknown customer with incomplete data, partners should fill in missing information and connect fragmented customer records to a single profile. For example, RMNs need to know that a purchase made in-store is by the same customer who bought online. The best partners will then organize those profiles into households since targeting (and purchasing) is often done at the household level. Without a strong identity foundation future steps of segmentation, insights, audience creation, and activation will not be successful.
Experian identity
Experian’s identity solutions provide RMNs with a comprehensive and accurate view of their customers across both offline and digital environments. We clean an RMN’s first-party data and organize their customer records into households since targeting is often done at the household level and purchases are made at the household level.
Using Experian’s Offline and Digital Graphs we work with the RMN to fill in the missing information they have on their customers (e.g. name, address, phone number or digital IDs like hashed emails, mobile ad IDs, CTV IDs, Universal IDs like UID2 or ID5 IDs). This ensures that the retailers’ entire customer base can be reached – and measured – across devices and channels.
2. Segment your customers
An RMN’s ability to segment its customer base and derive insights depends on the availability and usability of their data assets – not to mention some serious analytical chops. Some RMNs will split their customers into different product segments based on what’s relevant to an advertiser. For example, a home improvement retailer may segment customers by who is buying DIY supplies versus improvement services. Other RMNs may develop custom segments from their customer data and third-party data sources, so that advertisers can personalize their marketing based on life stage, age, income level, geography, and other factors. Either approach is effective but requires working with a partner who has high quality data and deep analytical expertise to develop those segments.
Segment with Experian
Experian Marketing Data helps an RMN learn about their customer beyond their first-party data. With access to 5,000 marketing attributes, RMNs can fill in the holes in their understanding of a customer. We provide them with demographic, geographic, finance, home purchase, interests and behaviors, lifestyle, auto data and more. RMNs can use this enriched data set to create addressable audience segments.
3. Generate actionable insights about these segments
Once the RMN determines how they will segment their customers, they can utilize demographic, attitudinal, interest, and behavioral data from a trusted partner to develop a customer profile that compares its customers against a relevant sample of consumers. Here, the RMN will gain insight that will help them answer questions about its customers. Examples include:
- What age and income groups are more likely to purchase my product?
- What is the current life stage of my customers – do they have children, are they married, are they empty-nesters?
- Is price or quality more important to customers in their decision-making process?
- What sort of activities do my customers enjoy?
- How frequently do my customers shop for similar merchandise?
- What media channels do my customers use to get their information?
Expanded insights with Experian
With Experian’s advanced customer profiling, RMNs can go beyond basic customer segmentation. We build detailed customer profiles by utilizing accurate, attribute-rich consumer data, so RMNs can gain a more comprehensive understanding of their customer’s preferences, life stages, and purchasing behaviors. Having this insight enables the RMN to:
- Design a targeted email campaign promoting home essentials to recently married new homeowners.
- Develop a social media post announcing the opening of a new hardware store to users within a specific location interested in do-it-yourself products.
- Create brochures and flyers at a local community event tailored towards parents with small children that promote equipment for youth sports leagues.
4. Create high quality lookalike audiences
The RMN now knows what distinguishes their customers from other consumers and can create audiences that enable advertisers to run personalized marketing campaigns at scale. RMNs can do this in several different ways:
- Work with a data provider who can create custom audiences for the RMN (e.g., Ages 40-49 and Leisure Travelers and past purchase of travel item)
These custom audiences are created by joining multiple first- and third-party data attributes found to be significant in the customer profile or using machine learning techniques to develop a custom audience unique to the advertiser.
Custom audiences with Experian
With an enriched understanding of their customers, RMNs can create addressable custom audience segments, including lookalike audiences, for advertisers.
5. Expand addressability of audiences and activate on multiple destinations
Once audiences are created, RMNs will want to increase a marketer’s reach across on-site and off-site channels. With the right identity graph partner, an RMN can add digital identifiers to customer records that enable activation across media channels, including programmatic display, connected television (CTV), or social. RMNs should work with identity providers that are not reliant on third-party cookies. They should select partners that offer more stable digital IDs in their graph like mobile ad IDs (MAIDs), hashed emails (HEMs), CTV IDs, and universal IDs like Unified I.D. 2.0 (UID2).
Experian powers data-driven advertising through connectivity
Using Experian’s Digital Graph, RMNs expand the addressability of their audiences by assigning digital identifiers to customer records. Marketers will be able to reach an RMNs customers onsite as well as offsite since Experian provides several addressable IDs.
Audiences can be activated across an RMNs owned and operated platform as well as extended programmatically to TV and the open web through Experian’s integrations across the ecosystem.
Maximize your RMN’s revenue potential with Experian
Organizing customer data, segmenting customers, generating insights, creating addressable audiences, and activating campaigns are all critical steps for an RMN to realize that revenue potential. RMNs should select a partner that provides the data, identity, and analytical resources to create the winning formula for marketers, customers, and retailers.
Experian’s data and identity solutions are designed to help RMNs maximize their revenue potential.
Reach out to our team to discover how we can support your path to RMN success.
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In the digital age, print coupons are dinosaurs, right? Not one bit. In fact, according to Experian Simmons, users of printed coupons — those obtained from newspapers, magazines, mail, etc.—outnumber users of digital coupons by a margin of almost 3-to-1. As of February 14, 2011 (the latest date for which data was available at the time of this post), 68% of all U.S. adults said their household uses print coupons, a number that has remained relatively unchanged during the past five years. 68% of all U.S. adults said their household uses print coupons, a number that has remained relatively unchanged during the past five years. By comparison, Experian Simmons also reports that 22% of all U.S. adults say their household uses digital coupons obtained from email or the Internet. That figure may be lower than the usage reported for any measured type of print coupon, including those handed out in or near stores, but adoption of digital coupons is growing: in 2005, just 12% of American adults used digital coupons. Smartphones adoption will continue to propel digital coupon use to historic highs in the months and years to come. According to an analysis featured in the 2010 U.S. Household Consumer Trend and Benchmark Report, 34% of U.S. iPhone owners use digital coupons compared with just 21% of non-iPhone owners. Interestingly, use of print coupons among iPhone owners doesn’t suffer a bit. In fact, as of February 14, 2011, 68% of iPhone owners reported that their household used print coupons versus 64% of non-iPhone owners, making it obvious that merchants should give their customers an option of using both print and digital coupons. For further consumer insights, download the 2010 U.S. Household Consumer Trend and Benchmark Report, which includes trends on economic outlook by household income, charitable contributions and planned automobile purchases.
Spiders, Rams, Seminoles, Golden Eagles, and Bulldogs. This is one way to describe the diverse collection of Cinderella teams that have advanced to the Sweet 16 in this year's NCAA men's basketball tournament. Four of these teams, the University of Richmond, Virginia Commonwealth University (VCU), Florida State, and Marquette, take their double-digit seeds to the next round in hopes of reaching the Elite 8. Butler, last year's Cinderella story, is seeking a visit to the Final Four for the second straight year. Interestingly, Richmond, VA is the home market for two of the Sweet 16 teams. These are the University of Richmond and VCU. Even more interesting is the fact that these two teams are on a collision course. With wins in the next round they would meet in the Elite 8 for a prized spot in the Final Four. With their surprise victories in the tournament so far, what these teams have in common is being labeled “bracket busters.” A more extensive market analysis uncovers other similarities, plus some notable differences. Here are highlights from profiles of the home market areas for this year's Cinderella teams using data from Experian's Mosaic consumer lifestyle segmentation system and Experian Simmons market research. The following statistics are based on the home markets of the five Cinderella teams. All four Cinderella teams hail from markets with above average interest in college basketball. Milwaukee, home of 11th seeded Marquette, has the highest concentration of adults who are interested in college basketball (28.1%). This is 11 percent relatively higher than percentage for the total U.S. Milwaukee also has the highest percentage of adults who said they watched last year's men's NCAA Division I tournament (17.3%). This is a relative six percent higher than the total U.S. The 10th seeded Florida State Seminoles hail from Tallahassee, which has the second highest percentage of adults with an interest in college basketball (26.9%). Richmond, where both 11th seeded VCU and 12th seeded Richmond are based, is just behind Tallahassee when it comes to the percentage of adults who are interested in college basketball (26.7%). Indianapolis has the lowest percent of residents who are interested in college basketball (26.3%), but that's still a relative four percent higher than the U.S. as a whole. Although interest should be very high this year, Richmond and Indianapolis (15.8% each) have the lowest percentage of adults who watched last year's tournament. Cinderella Team Market Snapshots Richmond, VA Home market of: Richmond Spiders, VCU Rams Sweet 16 opponents: Kansas, Florida State The top two segments in Richmond representing 30% of the market's households are: Metro Minority Communities (18.1%) comprised of married couples and single-parent minorities earning above average incomes from a mix of service industry and white-collar jobs in transportation, health care, education, and public administration. Urban Commuter Families (11.5%) comprised of upscale, college educated Baby Boomer families and couples living in single detached homes in city neighborhoods on the metropolitan fringe. Other interesting facts: Most over-represented segment is Metro Minority Communities (3.8 times the national average) Percent of adults with interest in college basketball is 26.7% Percent of adults who watched last year's men's college basketball tournament is 15.8% Tallahassee, FL Home market of: Florida State Seminoles Sweet 16 opponent: VCU Rams Similar to Richmond, the top two segments in Tallahassee are Metro Minority Communities (14.8%) and Urban Commuter Families (6.9%). The two segments that account for the next highest share of households are: Struggling City Centers (6.7%) comprised of young, single and single-parent minority renters living in low-income city neighborhoods. Rural Southern Living (6.5%) comprised of lower-income blue-collar couples and families living in sparsely settled mobile home communities. Other interesting facts: Most over-represented market segment is College Town Communities (6.2 times the national average) Percent of adults with interest in college basketball is 26.9% Percent of adults who watched last year's men's college basketball tournament is 16.8% Milwaukee, WI Home market of: Marquette Golden Eagles Sweet 16 opponent: North Carolina Tarheels The top segment in Milwaukee representing 11.2% of households is Urban Commuter Families (as described above). The two segments that account for the next highest share of households are: Small-town Success (10.5%) comprised of white collar, college educated, middle-aged working couples living in newly developed subdivisions outside the nation's beltways. Steadfast Conservative (9.3%) comprised of high-school educated mature singles and couples living in middle-class urban blue-collar neighborhoods. Other interesting facts: Most over-represented market segment is Successful Suburbia (3.6 times the national average) Percent of adults with interest in college basketball is 28.1% Percent of adults who watched last year's men's college basketball tournament is 17.3% Indianapolis, IN Home market of: Butler Bulldogs Sweet 16 opponent: Wisconsin Badgers There are four equal size segments that account for just over 30% of Indianapolis households. These include Steadfast Conservative (8.9%), Urban Commuter Families (7.8%), and Small-town Success (7.1%). All three of these segments are also among the top five in Richmond, Tallahassee, and Milwaukee. What makes Indianapolis unique from the other three markets is a higher percentage of New Suburbia Families (7.2%). These are young, affluent working couples with pre-school children concentrated in fast-growing, metro fringe communities. Other interesting facts: Most over-represented market segment is Successful Suburbia (2.8 times the national average) Percent of adults with interest in college basketball is 26.3% Percent of adults who watched last year's men's college basketball tournament is 15.8%
Tournament play begins this week in the 2011 NCAA Men's Division I Basketball Tournament, which means office productivity is likely to take a hit as fans jump online to watch live streams of games being played during working hours. With online viewing options expanded to mobile and other digital platforms this year, fans have more avenues than ever to get their March Madness fix. In fact, according to a recent estimate by Challenger, Gray & Christmas, total online tournament viewership during work hours is likely to reach 8.4 million hours during this year's tournament. In this latest installment of Experian Marketing Services' continuing March Madness consumer coverage, we'll profile the work life of online game streamers. Is there one down the hall or in the next cube? The answer is almost certainly “yes,” but the “who” may surprise you. According to Experian Simmons, just over 5% of all U.S. adults and nearly a quarter of adult NCAA men's tournament viewers (24%) qualify as likely online game streamers. For the purpose of this analysis, likely online game streamers is defined as those U.S. adults who watched the last NCAA men's basketball tournament who also sought out sports information online or watched online video in the last 30 days. These likely online game streamers must have also visited either cbssports.com or espn.com in the last 30 days. Fully 79% of likely online game streamers are employed either full-or or part-time, with 59% working 40 or more hours a week. Department managers and IT staff-have reason to be concerned about a loss in productivity during March Madness: fully 79% of likely online game streamers are employed either full-or or part-time, with 59% working 40 or more hours a week. Don't be so quick to suspect that colleague who always shows up late and goes home early as a game streamer. A safer bet would be the guy who's always at his desk when you get in and still there when you head out. In fact, one-in-ten adults who work more than 40 hours a week (11%) are likely online game streamers, meaning they're more than twice as likely as the average adult to be checking out the game online. Remote employees who work at home often get a bad rap with office “suits” sometimes assuming their pajama-clad colleagues fall prey to distractions. Actually though, Americans who work from home are no more or less likely to be likely online streamers than those who don't work from home. Likewise, the self-employed are no more or less likely to be online game streamers than laborers who work for “the man.” Interestingly, Experian Simmons found a direct correlation between company size and a worker's chance of being a likely online game streamer. Specifically: Those who work in companies with fewer than 100 employees are 17% less likely than the average American worker to be likely online game streamers. Those who work in companies with between 100 and 499 employees are just two percent less likely than average to be likely streamers while those employed by companies with between 500 and 999 employees are eight percent more likely to be online game streamers. Employees of companies with 1,000 or more employees are the most likely culprits with the group on average being 17% more likely to be likely online game streamers. As such, it's no surprise that Fortune 500 companies are the most at risk of having offices full of online streamers during March Madness. Employees of Fortune 500 companies are fully 66% more likely to be online game streamers than those who Americans employed by a non-Fortune 500 company. Finally, the best insight into whether your office mates are streaming basketball games online instead of working is by looking at their paycheck (not that we encourage that of course). Specifically, as income rises, so does one's chance of being an online game streamer: Employed Americans who personally earn less than $25,000 annually are the least likely to be online game streamers, scoring 50% below average on this metric. Those who earn between $25,000 and $49,999 are only 15% less likely to be game streamers. If you know or suspect that your colleague earns upwards of $50,000 a year, it's a good idea to keep an eye on them for the rest of the month; workers with incomes between $50,000 and $74,999 are 33% more likely than average to be likely game streamers and those who earn between $75,000 and $99,999 are 75% more likely to be likely game streamers. Your colleagues earning $100,000 or more annually are the most likely to be streaming online, with those personally taking home between $100,000 and $149,000 being a whopping 164% more likely than the average employee to be streaming games online. And those earning $150,000 or more annually being fully 176% more likely to be online game streamers. Moreover, one-in-five adults who earn $150,000 a year or more fall into our likely online game streamers segment compared with just 5% of all U.S. adults. The first match-up to be played during the traditional workday tips off at 12:15 EDT on Thursday March 17th when West Virginia takes on the winner of the second round-one play-in game. Armed with this information, you should be able to catch-or join-your office's online game streamers in the act.