Decision-Making in Retail Marketing:

The End of Gut Feel?

RETAIL THOUGHT LEADERSHIP PAPER

Decision-Making in Retail Marketing:

The End of Gut Feel?

Overview
This paper is a result of a strategic collaboration between Deakin Universitys Graduate School of Business and Pitney Bowes Software (PBS). In the rst of a series of co-authored thought leadership papers, key strategic and tactical marketing issues will be addressed with solutions and recommendations proposed.

About the Authors

Steve Ogden-Barnes
Deakin Universitys Graduate School of Business offers a wide range of postgraduate qualications for retail industry professionals including retail, commerce, marketing, management and leadership. Steve Ogden-Barnes is a Retail Industry Fellow at Deakin Graduate School of Business. Steve Ogden-Barnes Retail Industry Fellow Deakin University, Graduate School of Business Melbourne, Victoria, 3125, Australia Tel +61 3 9244 5021 Email s.ogdenbarnes@deakin.edu.au Website www.deakin.edu.au/buslaw/gsb

Chris Lowther
Pitney Bowes Software helps organisations and government agencies to acquire, serve and grow customer/citizen relationships. PBS products and services create business value for customers by making it easier for them to engage with and provide services to their customers more effectively and efciently. Chris Lowther is General Manager, Enterprise Solutions, Asia Pacic at Pitney Bowes Software. Chris Lowther General Manager, Enterprise Solutions, Asia Pacic Pitney Bowes Software Level 7, 1 Elizabeth Plaza North Sydney, NSW, 2060, Australia Tel +61 2 9437 6255 Email chris.lowther@pb.com Website www.pitneybowes.com.au/software

Table of Contents
About the Authors.......................................................................................................................................... 2 Executive Summary....................................................................................................................................... 4 Introduction.................................................................................................................................................... 5 Changing Retail Landscapes......................................................................................................................... 5 The Omni/Multi-Channel Imperative............................................................................................................ 5 Limitations in Current Practices................................................................................................................... 5 Demography - The Changing Face of the Nation.......................................................................................... 5 The Marketing Challenge: The End of Gut Feel?.......................................................................................... 6 Research Findings: How Marketing Decisions Are Made ............................................................................ 6 Decision Processes ....................................................................................................................................... 7 Marketing Futures: The Central Data Sources............................................................................................. 8 Knowledge is Power...................................................................................................................................... 8 Interpreting Data: Turning Questions into Answers .................................................................................... 8 Data for Marketing Decision-Making............................................................................................................ 9 Case Study 1: Book R-etailer - Understanding the Customer Journey..................................................... 13 Case Study 2: Financial Services - Cost-Effective Direct Marketing ......................................................... 14 Conclusion .................................................................................................................................................. 15 Future Papers ............................................................................................................................................. 15 References................................................................................................................................................... 16 Appendix 1.................................................................................................................................................... 17

Decision-Making in Retail Marketing:

The End of Gut Feel?

Executive Summary
The dynamic retail environment is facing the most challenging times in its history. The retail sector is susceptible to international competition, online retail, legislative changes and a slowdown consumer spending, as well as having to compete with other industries for customer expenditure. A major challenge is managing the blend of physical and digital channels, as a large portion of online sales originate from bricks-and-mortar outlets. Despite retail rms acknowledging the importance of integrating new technologies into marketing practice, it remains limited. Customer segmentation techniques, for example, are under-utilised leading to inefcient one-size-ts-all marketing campaigns that risk undermining brand value. The changing demographics of Australia present both opportunities and challenges for retailers. The key is to respond to these evolving conditions with appropriate marketing solutions. Understanding the dynamic customer base can best be achieved through relevant data interpretation, facilitated by intelligence tools. The current practice of placing instinct before information could limit tangible strategies for marketing. Other common pitfalls include managers choosing convenient but unsuitable models, being unaware of the techniques they can use and focusing on short-term nancial measures over the longer term impact of multi-channel marketing strategies. This paper identies the extensive sources and types of market data and tools that can help retailers make more informed decisions. The volume and diversity of available data sources may seem daunting to managers, however solutions are available to guide them in using the data effectively and efciently. Data interpretation techniques, such as location intelligence and predictive modelling, reduce campaign costs and increase campaign effectiveness by targeting customers with personalised and relevant marketing treatment. The paper highlights the business benets achievable using analytically driven marketing techniques, how to overcome barriers to adopting them, and encourages change in current thinking. This paper is the rst in a series of retail thought leadership papers produced by Deakin University and Pitney Bowes Software. Future papers will focus on areas such as location intelligence and campaign optimisation.

Introduction
In this era of rapid change, marketing decision-making has never been more worthy of scrutiny. This paper aims to develop understanding of how managers make decisions, with particular reference to current challenges faced by retailers. By drawing on recent academic research conducted at Deakin University and the industry experience of Pitney Bowes Software, we endeavour to offer actionable insights for retailers to solve marketing problems.

Limitations in Current Practices

Despite businesses embracing a wide range of channels for marketing, cohesive strategies have not always been implemented. The practice of customer segmentation, for example, remains under-utilised when planning an omnichannel marketing strategy. Customers can be lost in the early engagement stages (on-boarding) due to inconsistent communication across different channels of marketing. Use of known customer channel preference information is limited when it comes to increasing retention and reducing potential opt-outs. Mass targeting and unstructured follow-up processes when handling customer enquiries demonstrate a lack of strategic thinking in the eld. Perhaps the foremost challenge for retailers is deciding how to respond to tech-savvy consumers, who are wellequipped with new technologies to optimise their shopping experiences. Shoppers are now choosing to seek and search on the move, exercising ever greater control over the advertisements they are exposed to. Concurrently, the search process raises global product and price awareness of shoppers. This new breed of channel agnostic, cordless (mobile) consumers are also threatening to turn traditional bricks-and-mortar retailers into costly showrooms. The real-time blend of being in and amongst the bricks-andmortar outlets whilst simultaneously using mobile devices will complement the shoppers experience. Customers can now view products in store, make realtime deal comparisons and ultimately buy from a national or international competitor that offers the best price. The Australia Bureau of Statistics (ABS) reports that there are now over 11 million mobile internet handset subscribers in Australia, with wireless broadband connections accounting for 47% of all internet connections [2], proving that the mobile guerrilla shopper is here to stay.

Changing Retail Landscapes

The retail environment is changing at an exponential pace, with the industry facing the greatest trading challenges in living memory. The recent Australian Government Productivity Commission report illustrates the complex agenda Australian retailers have to contend with in terms of international competition, online retail, planning, zoning and workplace legislation. In addition, a prolonged slowdown in consumer spending and a diminishing condence level has contributed to the toughest trading conditions in over 20 years. Retail also commands less of the discretionary spend than it did in the past: 30% today compared to 35% in the 1980s [1]. It now competes with services, health, education and the travel industry for the elusive shopper dollar. These increasingly signicant sectors have also raised their game in areas of customer targeting, acquisition and retention, often outperforming retailers in brand development and marketing sophistication.

The Omni/Multi-Channel Imperative

With online retail in Australia currently accounting for 6-8% of total retail sales, online sales have matured and continue to grow year-on-year. The key challenge for retailers is managing a cohesive mix of physical and digital marketing channels. The synergy between these channels calls for recognition, as one nding reveals that 80% of online retail sales come from a geographic area where their bricks-andmortar retail store already exists. Simultaneous support of revenue goals for both the physical store and the website is therefore a priority in managing the omni/multi-channel customer experience. As the online vs. in-store shopping experience boundaries continue to blur, retailers need to use every opportunity possible to reinforce positive brand experiences at every point of customer interaction.

Demography - The Changing Face of the Nation

Australian consumers are changing in a multitude of ways. The population of Australia is aging, living longer, choosing different lifestyles and becoming more multi-cultural. Our 22+ million population is growing at around 1.4% per annum [3]. Migration patterns show that new arrivals to these shores accounted for 46% of population growth last year, indicating that the cultural mix within our towns, cities and communities is rapidly evolving. However, population growth is slowing in our cities and it is the outer suburbs that are showing the fastest growth [4]. New communities are springing up in green eld sites which, for many, are a popular and necessary alternative to the higher priced inner suburbs. This creates entirely new multi-cultural communities of consumers waiting to be served. Our

Decision-Making in Retail Marketing:

The End of Gut Feel?

median age has risen from 31 to 36 in the last 20 years, and the proportion of population aged 65+ has increased to account for 13.6% of our population. Australia has one of the highest life expectancies in the world, with the proportion of population aged 85+ doubling over the same period [5]. The 2011 Census reveals a lot more about the Australian population. This presents new opportunities for retail businesses to identify new consumer segments, enabling more accurate and effective targeting with relevant products, services, channels and locations.

The Marketing Challenge: The End of Gut Feel?

In order to meet growth targets in a consumer landscape which is changing culturally, socially and technologically, retailers need to make informed and effective decisions in relation to their future. In the current retail climate, it is the marketers who face the biggest challenge in understanding the how, where, when, why of our new consumers. Simultaneously, they have to develop focused strategies for customer attraction, engagement and retention across the diverse channels available.

Information and data have always been essential for management decision-making. Decision-makers now have a greater volume and complexity of data at their ngertips than ever before. However, those responsible for marketing decision-making often put instinct before information, gut feel before logic and preference before performance. With current pressures upon retailers to optimise all aspects of their business through knowledge-based action, there is no better time for marketers to make the paradigm shift from heart to head decision-making. In other words, marketers should follow the lead of their supply chain, production and IT colleagues. This is not to say that marketing decisions should not continue to be intrinsically creative, entrepreneurial and ambitious. However, the holistic management and interpretation of data should become a discipline in decision-making, not an exception. For those with decision-making responsibilities involving branding, marketing, location planning, segmentation, campaign management, promotional strategy, and customer retention, the interpretation and use of data is the name of the game. As with any evolutionary process, it is essential to recognise the limitations of current practice and highlight tangible strategies for improvement. Recent research into retail marketing decision-making conducted by the Graduate School of Business at Deakin University provides the foundation for this discussion.

The role of the CMO (Chief Marketing Ofcer) has evolved dramatically over the last 10 years. The average CMO is on the job for just 23.6 months. The CEO and board of directors are demanding a new level of accountability from senior marketing leaders which requires tangible justication for marketing decisions. Marketers can no longer afford to make decisions or measure results based on gut feel. For CMOs, this leads to one undeniable truism; job security is directly correlated with data-driven marketing [6].

Research Findings: How Marketing Decisions Are Made

Marketing continues to evolve and develop as new paradigms, functions, relationships and technologies interact to change the dynamics of the discipline. Advertising, for example, has in the last century moved from being a largely print-based communication tool into a more complex multi-channel, multi-media discipline. This will likely continue to evolve with advances in both internet functionality and the new generation of mobile commerce, or m-commerce opportunities. However, in dening marketing strategy, marketers may often rely on familiar techniques and technologies to approach unfamiliar territory. As one strategic marketing commentator notes:

Managers are likely to choose ideas, models and techniques which they understand, nd easy to use, and which resonate in their business context. Whether this chosen technology is also the best or most appropriate is, of course, an entirely different Matter [7].

The Deakin University PhD-level research set out to establish within a sample of retail organisations how strategic marketing decisions were made, to uncover the decision processes and inuences that determine marketing strategy. The research revealed strong criticism of the methods that decision makers employ and the ineffective use of information and resources during the decision-making process. One leading commentator, for instance, criticised the lack of rigour in practical marketing decision-making, stating: Some marketers probably only know about half of what they should about the concepts they use [8].

Decision Processes
Research into the marketing decision process reveals key common stages, illustrated in Figure 1, which ultimately denes strategic outcomes. However, this process is always organisation-specic and is inuenced by a number of factors: business culture, organisational structure, competitive environment, stakeholder involvement, traditional decision-making methods, use and interpretation of data sources. These inuences indicate that, without an objective knowledge

base against which decisions are made and options are modelled, subjective compromises can often be made. This in turn impacts the optimisation of marketing strategy and affects return on marketing investment (ROMI). In addition, unless comprehensive evaluation criteria relating to marketing impact is utilised, short-term single focus nancial measures tend to be employed over what should be long-term multi-channel impact measures. These longterm measures include pipeline analysis, lead quality and conversion, target market recall, geographic penetration, CLV (Customer Lifetime Value), engagement and retention. Therefore, knowing which data applies to most effectively dene and evaluate marketing strategy is central to informed decision-making. This is especially critical in areas of: Business expansion: physical locations Market expansion: targeting new customers Portfolio preview: dening product and service mix Building customer loyalty: retaining and engaging customers Shopper demography and behaviour: understanding what makes your customers tick Prot optimisation: conversion, cross-sell, up-sell Omni-channel integration: developing a seamless experience

Figure 1: Marketing Decision-Making Process

Decision-Making in Retail Marketing:

The End of Gut Feel?

Marketing and advertising: what message and which channel Sales promotion: creating value-adding promotions which have impact and appeal. Making effective decisions in these diverse areas is increasingly becoming a science, rather than an art; and as with any scientic discipline high quality, relevant data is essential. The challenge for marketers is to know what data exists, and how to access and interpret it.

One marketing brand manager seemed to capture the decision-making mind-set concisely.

Marketing Futures: The Central Data Sources

As highlighted, knowing what data to use and where to source it from, is the cornerstone of data-driven marketing. Retailers need to be aware of the full range of macro and micro data sources to help guide more effective and objective decision-making. Appendix 1 entitled Key Retail Related Marketing Data Sources provides example data sources for the retail trade.

Knowledge is Power
Skilful interpretation of this complex information and knowing how objective data is utilised remain at the centre of the marketing decision-making debate. This will only become more critical with the advent of new media technologies being identied as a chaotic force in decisionmaking [11]. This adds greater complexity to an already challenging arena. Internal and external factors such as market orientation, organisational structure and culture, stakeholder networks, politics, decision-maker expertise and the dynamics of the competitive environment were all acknowledged as inuencing marketing decision-making. However, organisations surveyed reveal a tendency in rms to approach annual strategic marketing in a procedural way, rather than a progressive way. Judgement, prior experience and historical reference are often taking precedent over the intelligent use of comprehensive marketplace data via tools of interpretation. This highlights the potential limitations of current decisionmaking approaches including: an over reliance on intuition, historical anchoring, and the status quo bias (a lack of evaluation), the budget +10% approach and group think outcomes resulting from consensus-based decision making. Where marketing evaluation was discussed, assessment of short-term marketing effectiveness - based largely on sales data - was more strongly emphasised over long term multifactor marketing impact assessment.

Ive just built our marketing plan for next year. What was the easiest way to do that? It was to copy and paste last years marketing plan and then tweak it. Do I personally agree with that? Not necessarily. If it was my own business I may not do it that way. However weve got history of sales spikes at certain times, and we have to kind of mitigate that through using, I guess, the tried and tested approach [12].
The research therefore reveals that despite the need for retailers to be evolutionary in their marketing approach to the emergent retail landscape, traditional thinking may still compromise the quality of decisions. This is perhaps nowhere more evident than in the lack of using data and data interpretation technologies to determine strategy.

Interpreting Data: Turning Questions into Answers

As identied in Appendix1, marketers have access to more data sources than ever before. Yet for many this poses challenges rather than enabling guided decision-making like: Is data usable in its raw format? How can we turn it into information that can be used to facilitate decision-making? Can we have too much information? Is there still room for intuition/gut feel? Should we be listening to the big data pundits who claim that predictive customer analytics is now the answer to everything?

 Are we setting ourselves up for paralysis by analysis? Can we or should we make decisions based on our past experiences? Should all decisions rest with individuals or can effective decisions be made in teams? These tough questions can mean that the use of data to support decision-making sometimes falls into the too difcult category. Yet appropriate data that is intelligently used in decision-making can inform judgements and identify critical points at which new strategies are required. We will now turn our focus to some methods and solutions available to support data-driven decision-making and facilitate optimal marketing performance.

Data for Marketing Decision-Making

How can diverse and complex data be utilised to support more effective decision-making to: Pinpoint opportunities and make more informed decisions Create personalised communications and consistent customer experiences Integrate accurate customer information into business processes Evaluate trends and rapidly respond to changing customer needs Pitney Bowes Software (PBS) works on resolving these challenges by equipping retailers with data, tools and advice for optimising the customer lifecycle. Figure 2 shows how an integrated and strategic approach in using marketing data can enable lifetime customer relationships by increasing value to the relationship between organisations and customers every step of the way.

Figure 2: Enabling Lifetime Customer Relationships

Decision-Making in Retail Marketing:

The End of Gut Feel?

Retailers constantly need to nd (new) ways to enhance the customer lifecycle for successful on-going relationships. This is evident in the following key lifecycle stages: Customer Acquisition. This process is enhanced by enriching customer personal data with, for example, location data. PBS attempts to capture the context of the customer at the moment of interaction to maximise the receptivity of the customer to marketing messages. In addition, knowing the demography of specic regions (catchments) can increase the success rate of acquiring new customers by embarking on more accurate marketing campaigns or in, best identifying new branch locations. Customer On-boarding. Companies should leverage the critical honeymoon (membership) period, for example in the rst 90 days, from when customers come onboard, to build trust and increase prot. As mentioned, customers can be lost here due to inconsistent messages received across multiple communication channels, mass targeting and lack of follow-up. Management of communication and tools for co-ordinating crosschannel communication is therefore crucial in retaining these customers.

Customer Service and Growth. Serve and grow customers with analytic insights, where the customers behaviour can be understood and predicted through modelling software with relevant data input. Customer Retention. Retain customers with timely interactions and cross-channel communications support for better customer fullment. Figure 3 describes a typical customer journey and the analytical insights that can be derived to strengthen a companys relationship with its customers.

Strengthen the Customer Relationship Through Analytical Insights

Figure 3: A Typical Retail Customer Journey 10

Figure 4 summarises a data and communications working platform. Different sources of data are managed utilising analytical intelligence tools. Solutions incorporate data quality, location intelligence, predictive analytics and communication management into critical customer relationship management workows and business operating systems. Figure 5 shows a customer data modelling system, Pitney Bowes Software Portrait Uplift, where customers are divided into groups of four main behavioural characteristics. It shows, for example, that there is a higher likelihood of accepting a campaign offer by focusing on the Persuadables group; and conversely the Sleeping Dogs group will be negatively impacted by a campaign and therefore should be dropped.

Figure 6 shows how customer data can be captured and summarised on scorecards by an analytical system, such as Pitney Bowes Software Portrait Explorer, to develop these models. Appendix 1 identies example data sources utilised in the customer lifecycle process. The following two case studies illustrate the use of data and systems through the customer journey and the benets brought to the organisations and their customers.

Figure 4: Data and Communications Platform

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Decision-Making in Retail Marketing:

The End of Gut Feel?

Figure 5: Data and Communications Platform

Figure 6: Customer Scorecard

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Case Study 1
Book R-etailer - Understanding the Customer Journey
Customer Prole - Wendi
Wendi is busy homemaker who views her home as a sanctuary and makes it the centre of all activities. As a result, she frequently researches online for recipe books as she loves cooking. She makes purchases both online and in-store. Figure 7 illustrates the customers preferences and buying habits being captured by tools of intelligence and how the ow of prompts caters to her needs.

Following Wendis Journey

Wendi has been a rewards member with the retailer for several years and receives an email notication of the new look program - she immediately clicks on the link to convert and completes her prole.

Figure 7: Flow of Prompt by Intelligent Tools

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Decision-Making in Retail Marketing:

The End of Gut Feel?

Case Study 2
Financial Services - Cost-Effective Direct Marketing
Background
One of the largest commercial bank in the USA is using direct mail to entire postal routes to acquire new demand deposit account (DDA) customers, but low response rates and lift versus control made even their best targeting models unprotable.

Benets
Turned around campaign from loss to prot due to targeting of locations that will have higher success rates 91% increase in incremental revenue Generate additional $300K per campaign Figure 8 shows how return on marketing investment (ROMI) can be maximised by incoproating location-based attributes into predictive customer analytics.

Business Challenge
To nd more cost-effective ways to acquire new DDA customers using direct mail.

Solution
The Portrait Uplift predictive analytics solution from Pitney Bowes Software delivered more effective targeting models using existing data, and achieved campaign protability by enhancing the data with new location-based attributes such as local product penetration rates and nearest branch drive time.

Figure 8: Maximising ROI through Location Enhanced Uplift Analytics. 14

Conclusion
Our research identied that the lack of data-driven decision-making in the retail sector is a key reason for the slow take-up of an omni-channel marketing approach. The challenge is in the will within retail organisations to engage in an omni/multi-channel future. Another major barrier is the skills gap in applying the technological integration to marketing strategies. Some may resist the move, believing that logistical difculties will surface as more channels lead to confusion and greater customer dissatisfaction. However, there are workable solutions. Adequate training/mentoring can be provided to staff so they can transform comfortably to data-based marketing decisionmaking company. A central marketing campaign system can be created to ensure a consistent and integrated communication approach with customers. Technology can help retailers optimise these customer interactions by utilising data to personalise communications. As result this will maintain and enhance an on-going customer relationship. Omni-channel retailing is here to stay. Marketers, which have historically focused on the intuitive roll-out of their 4Ps strategy, need to evolve in line with the marketing channel evolution. The intelligent use of data will determine the future of retail marketing. Having the competency and solutions to access, interpret and synthesise diverse data sources will be central to optimising marketing strategy. This is particularly important as markets, consumers and channels continue to evolve at an exponential rate.

Future Papers
This is the rst in a series of research-based thought leadership papers. Future papers will focus on more specic areas in the new retail era, including location analysis, sales promotion campaign management and omni-channel strategy development. The next two related papers will cover:

New Location Perspectives: In the Zone

The Census and the changing population inuences on physical location and cyberspace. Why is it important to get location right? What are the costs of getting it wrong? How are location decisions currently made? How can technology help with better physical location planning? What is cyber location analysis and how can it be leveraged?

Campaign Optimisation: Playing to Win

Research on how businesses currently make sales promotion campaign decisions Where the opportunities lie for effective decisionmaking.

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Decision-Making in Retail Marketing:

The End of Gut Feel?

References
1. A ustralian Government Productivity Commission, Economic Structure and Performance of the Australian Retail Industry. 2011. 2. ABS. Almost half of all internet connections are mobile wireless. 2012 [cited 2012 25/04]; Available from: http://www.abs.gov.au/AUSSTATS/abs@.nsf/mediareleasesbyReleaseDate/F2D32B785378BC9CCA25758D 002B6804?OpenDocument 3. ABS. 3101.0 - Australian Demographic Statistics, Sep 2011. 2011 [cited 2012 24/04]; Available from: http://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0 4. ABS. 3218.0 - Regional Population Growth, Australia, 2010-11. 2012 [cited 2012 25/04]; Available from: http://www.abs.gov.au/ausstats/abs@.nsf/latestProducts/3218.0Media%20Release12010-11 5. ABS. 3201.0 - Population by Age and Sex, Australian States and Territories, Jun 2010. 2010 [cited 2012 24/04]; Available from: 3201.0 - Population by Age and Sex, Australian States and Territories, Jun 2010. 6. Aberdeen Group. Data Driven Marketing 2009 [cited 24/04 2012]; Available from: http://www.aberdeen.com/aberdeen-library/6224/RA-data-driven-marketing.aspx 7. Franklin, P., Problems and Prospects for Practice and Theory in Strategic Marketing Management. Marketing Review, 2001. 1(3): p. 341. 8. Corkindale, D., Are marketers only half right? Marketing Review, 2009. 9(1): p. 19-29. 9. Roy Morgan Research.Roy Morgan Research Single Source. 2012 [cited 2012, 01/06]; Available from: http://www.roymorgan.com/products/single-source/single-source_home.cfm 10. The Nielsen Company. Shelf Space Health. Nielsen Hong Kong - Products & Services - Analytic Consulting - Shelf Space Health. [cited 2012, 01/06]; Available from: http://hk.nielsen.com/products/ac_shelfspace_health.shtml 11. Samli, A.C., Developing counterchaos marketing strategies: the key to survival and success in modern chaotic markets. Marketing Review, 2010. 10(2): p. 185-202. 12. Ogden-Barnes, S., Promotional competitions: management decision-making in the Australian consumer marketplace, in Graduate School of Business. 2012, Deakin University: Melbourne

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Appendix 1
Example Retail Related Marketing Data Sources
DATA TYPE
National Economic Performance

SOURCES
Key Economic Indicators

PROVIDER
Australia Bureau of Statistics (ABS)

APPLICATIONS
Provides information on national accounts, retail consumption, production, prices, labour, housing, etc. Provides national demographics, e.g. age, sex, ethnicity, income levels, etc., at granular geography levels Provides aggregate details of personal tax returns by postcodes, including income gains/ losses Tallies the number of people who earned dividend or interest income and the total amount of income earned Gives authoritative and current information on the state of household nances

National Population and Demographic Data

CENSUS Data (Every 5 years)

ABS

Taxation Statistics

Income Taxation Information

Australian Taxation Ofce

Retail Pricing

Consumer Pricing Index Retail Trade Statistics

ABS

Provides information on changes to the consumer and retail pricing across key products/services Understand consumer spend potential based on household expenditure in over 200sub-categories down to Census Collection District (CCD) level (around 220 households)

Consumer Spend Potential Australia

Cash ow analysis of the National Accounts GDP gures gathered by ABS Income tax data from the Australian Taxation Ofce Demographic/CENSUS data Household Expenditure Survey by ABS Social Media Tracking

Pitney Bowes Software (PBS)

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Decision-Making in Retail Marketing:

The End of Gut Feel?

DATA TYPE
Demographic Estimates and Projections (E&P)

SOURCES
Population Projections based on ABS data

PROVIDER
PBS

APPLICATIONS
Population and households estimates generated annually, with projections for the next 5 and 10 years at Census Collection District (CCD) level Geographical data which can be used in developing retail trade areas Demographic analytics on geographic attributes Identify location opportunities or trade area hot spots for marketing activities Calculate distances and drive times based on detailed maps and boundaries

Geographical/Location Data

Digitalised Maps

PBS

Geography/Location Analysis AnySite Software Geo-demographic data/ maps with over 12,500 variables MapInfo (Metadata) Access to worldwide geographic data

PBS

Marketing Evaluation

Portrait Software Company Data

PBS Internal Third-party providers, e.g. CAMEO

Tracks success rates, measure campaign effectiveness and ROI Dene customer/prospect segments with similar attributes Develop target marketing and geography based applications

Consumer/Market Segmentation

Geo-Demographic Segmentation data

Media Consumption And Usage

Internet Trafc, e.g. search rankings, site visits, search engine results page (SERP), click-data, ofine, online, 1st party, 2nd party, 3rd party data Pay TV Membership

Third-party providers, e.g. Nielsen, Hitwise

Uncover information relating to web/digital data Understand website prompt sequence from initial search through to purchase Optimise website trafc

Social Media Tracking

Facebook Twitter LinkedIn Blog YouTube

Social media providers, e.g. Google analytics Third-party providers

A platform for relationship marketing and building where realtime feedback can be monitored and addressed more efciently Track public sentiment towards a brand

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DATA TYPE
Mailing Lists

SOURCES
Consumer Databases Commercial Databases

PROVIDER
Third-party providers, e.g. Veda Advantage, List Factory, Acxiom, D&B

APPLICATIONS
Used for direct marketing campaigns

Market Share/Sales Information

Point-of-Sale (POS) Data Purchases/ Transactions

Third-party providers, e.g. Understand product and Nielsen, Aztec, Polk, IMS category level market share and competitive position Internal Understand customer preferences, e.g. Third-party providers, e.g. preferred communication PBS, Roy Morgan and purchase channels PBS Internal Public information Third-party providers Prole and segment customers to better target campaigns Understand the impacts of competitor activity on the sales performance

Volunteered Personal Information (VPI)

POS Surveys Online Customer Feedback Portrait Software Company Data

Customer Proles

Competitor Performance

Published Materials, News and Statistics Economic, Demographic and Government Data

Industry-Based Research

Third-party providers, e.g. Provides industry IBIS World analysis, including nancial ratios and industry ratios Industry performance by product and market

Identity and Movement Data

Identity-related transactions, e.g. change of address, passport interviews

Australia Post

Captures identity-related data and tracks address changes

Psychographic Data

Australian Lifestyle Survey Focus groups and eld survey work on geodemographic statistics [9]

Third-party providers, e.g. Australia Post, Roy Morgan, Mintel

In-depth analysis of consumer behaviour

Store Product Shelf Space Data

Return on Inventory Investment (ROII) Rate of Sale Stock Keeping Unit (SKU) Rankings [10]

Internal Third-party providers, e.g. Nielsen, Aztec

Explores protable ways to manage shelf space/ display through comparing stock/shelf share gures with competitors

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For more information please contact:

DEAKIN UNIVERSITY +61.3.9244.5021 s.ogdenbarnes@deakin.edu.au www.deakin.edu.au/buslaw/gsb ASIA PACIFIC/AUSTRALIA +61.2.9437.6255 pbsoftware.australia@pb.com www.pitneybowes.com.au/software

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