Dunnhumby

Dunnhumby

Dunnhumby

Customer data science company

Dunnhumby Limited (stylized in all lowercase) is a global customer data science company.

Quick Facts Formerly, Company type ...

Formation

The company was formed by husband and wife team Clive Humby and Edwina Dunn.[2] Humby was a University of Sheffield trained mathematician and the couple both worked at Caci. Wanting to start his own business, Humby resigned from Caci and left on the day that Dunn was dismissed. The couple[3] started Dunnhumby in 1989, in the kitchen of their Chiswick, west London home.[2][4] The company began working with clients, including Cable & Wireless and BMW.[5] In May 2018, Dunnhumby acquired marketing and promotions management company Aptaris.[6][7][8]

Tesco Clubcard

Dunnhumby originally gained prominence for helping establish Tesco Clubcard. In 1994, Tesco, which was second in the UK retail market to Sainsbury's, wanted to create a new loyalty card. The man responsible for Tesco's trials, Grant Harrison, attended a conference where Clive Humby was speaking.

Harrison agreed a trial with Tesco's then marketing director Terry Leahy and, after successful trials throughout 1994, the company was asked to present their findings. The first response from the board came from Tesco's then-Chairman Lord MacLaurin, who said, "What scares me about this is that you know more about my customers after three months than I know after 30 years."[9]

Current business

Tesco originally bought a 53% stake in 2001 for a reported £30m, increasing this to 84% in 2006,[4] before purchasing the rest of the shares.[10] The company employs more than 2,500 people in 30+ countries, selling information from a 40-terabyte database to companies including Procter & Gamble, Coca-Cola and US retailer Kroger.[11] Dunn and Humby resigned from the company in October 2010 and remained non-executive directors through early 2013.[4] Dunn and Humby invested in the theatre analytics business Purple Seven in 2013.[12]

KSS Retail, a provider of analytics software and services for retail price optimization and promotions planning, was acquired by Dunnhumby in 2010.[13] Founded in Manchester, UK, KSS Retail operated as a separate business unit until October 2015, when it was rebranded as Dunnhumby Price and Promotion Archived 27 January 2016 at the Wayback Machine. KSS Retail developed and commercialized optimization software called PriceStrat that helps retailers identify the right prices and promotions as part of a revenue management and merchandising strategy.[14] Through Dunnhumby Price and Promotion, the business also provides artificial intelligence software that helps retailers with promotions and market basket analytics.

BzzAgent, a Boston-based social marketing and advocacy start-up, was acquired by Dunnhumby in 2011.[15] Founded in 2001, BzzAgent runs word-of-mouth networks in North America, Brazil and the United Kingdom, enlisting unpaid volunteers to try products from companies including Procter & Gamble, Unilever and L’Oréal, then share opinions about those products with others, in-person and online.[16] PowerReviews acquired BzzAgent from Dunnhumby in July 2018.[17]

Berlin-based global advertising technology firm Sociomantic Archived 25 October 2014 at the Wayback Machine was acquired by Dunnhumby in 2014,[18] according to Dunnhumby's then CEO Simon Hay, to improve customers' online experiences by "mak[ing] online content personalised for people, based on what they actually like, want and need."[19] The company, founded in 2009, uses real-time bidding technology to purchase and display personalized digital advertising in milliseconds. Sociomantic operates in over 60 markets and 19 offices worldwide.[20]

Given the trading difficulty at Tesco, in autumn 2014, it was suggested that the company might be on offer for sale at £2 billion.[21] The BBC reported in January 2015 that Tesco was seeking a buyer for the company.[22] In April 2015, The Kroger Company announced it would buy much of Dunnhumby USA and create a new consumer insights subsidiary called 84.51°, effective immediately.[23] In February 2017, after 25 years, Hay stepped down as CEO.[24][25]

In March 2019, Dunnhumby announced its partnership with the food and pharma Canadian company METRO. The purpose of this partnership is for Dunnhumby to help METRO deliver more relevant customer experiences through the provision of customer data.[26]

In 2022, Dunnhumby's revenue was £362.6m with a reported profit of £32.1m.[27]

References

  1. [1]
    "Dunnhumby Limited overview - Find and update company information - GOV.UK". Companies House. 24 May 1989. Retrieved 6 August 2023.
  2. [2]
    Smale, Will (24 November 2014). "The couple who helped transform the way we shop". BBC News. Retrieved 24 November 2014.
  3. [3]
    "About us". www.dunnhumby.com. dunnhumby Limited. 2008. Archived from the original on 13 September 2008. Retrieved 12 October 2008.
  4. [4]
    Wood, Zoe; Lyons, Teena (29 October 2010). "Clubcard couple head for checkout at Tesco". The Guardian. Retrieved 29 October 2010.
  5. [5]
    Rigby, Elizabeth (11 November 2006). "Eyes in the till". Financial Times. FT Magazine. pp. 16–22. Archived from the original on 17 May 2013. Retrieved 2007-03-30.
  6. [6]
    "Data firm dunnhumby acquires Aptaris Software". Food Dive. Retrieved 14 June 2018.
  7. [7]
    "dunnhumby Acquires Apartis, Enhancing Promotion Management Platform - Retail TouchPoints". Retrieved 14 June 2018.
  8. [8]
    "dunnhumby Acquires Aptaris to Bolster Customer Data Science in Retail". martechseries.com. Retrieved 14 June 2018.
  9. [9]
    Mesure, Susie (10 October 2003). "Loyalty card costs Tesco £1bn of profits – but is worth every penny". The Independent.
  10. [10]
    "Tesco PLC - About us - Our businesses - dunnhumby - About the business". Archived from the original on 23 March 2014. Retrieved 2 April 2014.
  11. [11]
    https://abcnews.go.com/Business/wireStory?id=12109720 [dead link]
  12. [12]
    "Clubcard duo Edwina Dunn and Clive Humby put £1m into culture". Retrieved 24 August 2016.
  13. [13]
    "Account Suspended". Kssretail.com. Retrieved 13 October 2019.
  14. [14]
    Savov, Vlad (2 May 2014). "You priced this milkshake". The Verge. Retrieved 13 October 2019.
  15. [15]
    Lee, Edmund (23 May 2011). "Tesco Acquires Social-Marketing Firm BzzAgent for $60 Million". AdAge. Retrieved 13 October 2019.
  16. [16]
    Griner, David (23 May 2011). "BzzAgent Sold to Tesco Unit, dunnhumby – Adweek". Adweek.com. Retrieved 13 October 2019.
  17. [17]
    "PowerReviews Acquires BzzAgent". Retrieved 12 November 2018.
  18. [18]
    Liyakasa, Kelly (3 April 2014). "Confirmed: Tesco's Dunnhumby Buys Retargeter Sociomantic For Retail". AdExchanger. Retrieved 13 October 2019.
  19. [19]
    "Tesco PLC - Talking Shop - Creating personalised online experiences (Simon Hay, 3 April 2014)". Archived from the original on 14 October 2014. Retrieved 10 October 2014.
  20. [20]
    "Technology | Sociomantic Labs". Sociomantic.com. 1 July 2010. Archived from the original on 19 October 2014. Retrieved 13 October 2019.
  21. [21]
    Wood, Zoe (10 October 2014). "Passed their use-by date? The businesses Tesco could sell". The Guardian. Retrieved 8 January 2015.
  22. [22]
    Miller, Joe (8 January 2015). "Tesco to close 43 stores despite better Christmas sales". BBC News. Retrieved 8 January 2015.
  23. [23]
    "Kroger buys most of dunnhumbyUSA". Cincinnati.com. 27 April 2015. Retrieved 13 October 2019.
  24. [24]
    Quinn, Ian (14 February 2017). "Simon Hay to step down as CEO of Tesco data arm Dunnhumby". The Grocer. Retrieved 28 January 2024.
  25. [25]
    Pasławski, Krzysztof (29 December 2023). ""Kluczowy transfer w historii" polskiej firmy" ["A key transfer in the history" of the Polish company]. CRN (in Polish). Retrieved 28 January 2024.
  26. [26]
    "dunnhumby Renews Relationship with METRO through Long-term Partnership, Powered by Customer Data Science". www.businesswire.com. 1 March 2019. Retrieved 13 August 2019.
  27. [27]
    "dunnhumby Limited Annual Report and Financial Statements". Companies House. 9 November 2022. Retrieved 22 March 2023.
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