IAPA Talk By Tesco Analyst

[Steve Bennett]

It's Wednesday morning at 7 am and I've come along to a talk courtesy of the Institute of Analytic Professionals of Australia and Pitney Bowes. This mornings speakers are Simon Baines, Head of Customer Insight from Tesco Bank, a part of the UK supermarket group famous for it's use of analytics in it's customer loyalty schemes (Clubcard). Simon talked about how they now have 16 million active participants. Their buying activities drive many things but it was particularly interesting to hear that clubcard members received personalized vouchers in their statements. Not quite unique for each customer but very targeted - down to segments containing only 3 people. The Bank has 6.5 million customers and the clubcard data is central to the (mainly insurance) operation. Clubcard and Bank membership drives greater use of the Tesco supermarket. No surprise there. I wonder what the underlying profitability of the Bank is - perhaps it is a loss leader whose value is in driving a larger basket in the supermarket? The second speaker was Ichay Bulaong, the Head of Customer Relationship Management from ABS-CBN, the biggest Filipino media group. She talked about how they are using predictive analytics. Her team is 2 years old and they aim to lower churn, increase ARPU and customer profitability. Again pretty standard - crucially this doesn't make it any less valuable to do. One example was their prediction of the propensity to purchase the 'next channel' in their Sky Cable business. They saw a 164% uplift as a direct result of their analysis. Fantastic. What the 2 speakers had in common was their identification of bundling as a critical method of increasing both the 'stickyness' and total value of their customers. There wasn't as much detail given as I have come to expect from IAPA speakers - in Simon's case he is still very new at Tesco - but this may have also been a result of the event being based in the middle of the ADMA exhibition Hall.



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