Local Market Intelligence:

Transcription

1 Local Market Intelligence: Store level insights for SMBs; distribution opportunities for partners 27 th February 2017

2 Delivering Insights for Impact Local Market Intelligence gives merchants a deep set of analytics to measure store-level performance. It answers three critical questions: 1 How is my business performing? 2 3 How loyal are my customers?* How can I get more customers?* Track business performance. Execute improvements. Measure results. 2 *In markets where MasterCard anonymization is not accepted by local privacy regulations, these questions can only be supported with issuer permission.

3 The Case for Local Market Intelligence: Part 1 Big Data: Is ubiquitous but the right data is critical Understand your customer through analysis of secure location-based data Loyalty: It is imperative to keep existing profitable customers 8 out of 10 customers say that they prefer to shop with retailer they already frequent MasterCard Omnishopper Report Profitability A fully engaged customer represents an average 23% premium in terms of share of wallet, profitability, revenue, and relationship growth compared with the average customer. In stark contrast, an actively disengaged customer represents a 13% discount in those same measures. Gallup

4 The Case for Local Market Intelligence: Part 2 SMBs Need Metrics MasterCard s research shows that small to mid-sized businesses have an interest in using data to reach target customers, understand more about their spending patterns and inform operational decisions. SMBs Need Data Management.According to MasterCard s 2014 Merchant Scope study of global SMBs, half of small and mid-sized merchants are not using the POS system as a source of customer data. LMI will provide a window into that data. SMBs Need To Translate Data to Insights 48 percent of SME retailers say translating data into actionable insights is their highest priority. Retailers will not be able to compete in the digital marketplace without advanced analytic capabilities. Retail organizations should look to invest in advanced analytics providers that specialize in retail solutions. 4 Gartner, July 15, 2015

5 MasterCard and Big Data Big Data at MasterCard has a rich history of being an orchestrated and ordered process with clear decision-based business outcomes and privacy by design Data available to businesses has expanded at astonishing speed and must be ordered and in tune a symphony rather than a cacophony Every day we create 2.5 quintillion (10 18 ) bytes of data - so much that 90 percent of the world's data today has been created in the last two years alone 5

6 MasterCard: Data Framework MasterCard has been developing a mastery of data for decades. Our experience can be your teacher. We know data. More importantly, we know technology and framework even better. Our intelligent approach to data makes it organized and actionable.. WHAT CAN 2.2B GLOBAL CARDS 43B & TRANSACTIONS/YEAR MEAN TO YOU? CLEANSED, AGGREGATED, ANONYMOUS, AUGMENTED 1.5 million automated rules Continuously tested TRANSFORMED INTO ACTIONABLE INSIGHTS Reports, indexes, benchmarks Behavioral variables Models, scores, forecasting Econometrics MULTI-SOURCED 38+ million merchants 22,000 issuers WAREHOUSED 14 petabytes 5+ year historic global view Rapid retrieval Above-and-beyond privacy protection and security 6

7 Major MasterCard Milestones 1966 A group of banks creates the Interbank Card Association (ICA) ICA acquires the Master Charge name and interlocking circles trademark. 1980s A MasterCard card is the first payment card issued in the People s Republic of China. MasterCard is the first in the industry to introduce a laser hologram on cards. The first MasterCard business card is launched MasterCard Advisors TM, a global professional services organization focused solely on the payments industry, is launched MasterCard integrates with Europay International and becomes a private share corporation MasterCard Europe and Europay France integrate operations MasterCard Labs is launched Financial institutions from Mexico, Japan, and Europe join ICA. 1990s MasterCard, in partnership with Europay International, launches Maestro, the world s first global online debit program Master Charge becomes MasterCard MasterCard launches the Priceless TM campaign MasterCard transitions to a new corporate governance and ownership structure, and begins trading on the NYSE under ticker symbol MA Keenly focused on driving innovation, MasterCard acquires Orbiscom, DataCash, the prepaid program management business of Travelex and Truaxis.

8 Who is MasterCard Advisors? Transaction Data/Analysis Information Tools Data-Driven Consulting Marketing Services Solutions Optimize Streamline Grow

9 Introducing Local Market Intelligence MasterCard Advisors new analytics dashboard to address SMB data challenges Tailored Analytics & «Ready-to-use» Products Portfolio Analytics Tools Standard And Customized Reports Advanced Propensity And Segmentation Models Local Market Intelligence Performance Metrics and Cardholders Insights

10 Local Market Intelligence Drives Store-level Decisions An advanced analytics approach that will: Measure results of key Operational and Marketing actions on location performance Measure impact of marketing changes or business improvements (i.e. staffing, business hours) on share of category, purchase frequency and other metrics Inform repeat business and new customer strategy Support optimization of targeted offerings, such as paid search, e-coupons, inserts and ad placements through actionable insights

11 Local Market Intelligence (LMI): Defining Customer Lifecycle Strategy for Distribution Partners LMI is a performance dashboard that delivers key metrics and competitive benchmarks. The product is created and hosted by MasterCard, and is designed as a co-branded premium set of insights. LMI enables partners to: Offer a unique product and experience to attract new merchants Attract Retain Create deeper relationships with frequently updated customer and competitive insights Consistently measure and improve business performance for long term engagement Increase Value

12 Product Version for SMB retailers BASE STANDARD ENHANCED / ENHANCED PLUS Base: Average Purchase Size Average Visits per Customer Average Spend per Customer Standard: Base Average Spend in Merchant s business category Average days between visits Percentage of Repeating Customers Enhanced: Base + Standard Percentage of New vs Existing Customers Transactions by time of day Spend by day of week Enhanced Plus (Available in US & CAN only): Base + Standard + Enhanced Demographics ( Age, Gender, Children, Income and Education) Customer Segments according to spend behavior Customer Postal Codes 12

13 Local Market Intelligence in Action: Compare Locations Interactively

14 LMI: Merchant Experience MasterCard Advisors PARTNER CHANNEL Two Authentication and Access Options: Local Market Intelligence Merchant onboarding 1. Partner Portal Link to LMI Or 2. Direct Merchant Link to LMI Accept MC Terms & Conditions MasterCard Registers Locations and Users Partners Provide Location + User Enrollment Data Compare Locations View Location Level Insights

15 MasterCard and Partner Ongoing Interaction PARTNER CHANNEL Merchant Maintenance Two Authentication and Access Options: 1. Partner Portal Link to LMI Or 2. Direct Merchant Link to LMI MasterCard Processes Updates Partners Provide Updated enrollment information Partner and MasterCard will update locations for authentication on a monthly basis Partner appends the location list and returns it to MasterCard MasterCard provides operational, training and technical support to the partner

16 Testimonials (Maxela) NEED VIDEO TO EMBED

17 LEARN MORE AT: Contact: Sandie Breese Strategic Partnership Information Services