© Vlerick Business School

CUSTOMER ENGAGEMENT IN HET DIGITALE TIJDPERK

PROF. GINO VAN OSSEL GINO.VANOSSEL@VLERICK.COM

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 3

4

5

“EVER PURCHASED ONLINE” (CORRECTED FOR OFFLINE POPULATION)

6 e-commerce in Belgium, Comeos, June 2013

share of heart

7

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 8

9

1. target

10

2. engage

11

3. convert

12

4. bond

CUSTOMER JOURNEY

13 source: McKinsey

14

B2B

B2C

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 15

TARGETING IN THE DIGITAL ERA

cross- channel

multi- channel

mono- channel

• traditional CRM • who ? • what message ? • when ? • what medium ?

18

% SEARCH?

19

touch point share of

transactions hard goods

share of transactions soft goods

paid search 32% 19%

natural search 25% 14%

e-mail 19% 41%

social media < 1% <2%

other 23% 24%

Source: Forrester / GSI Commerce – Holiday attribution research ‘11 (Q1 – 2012)

• traditional CRM • who ? • what message ? • when ? • what medium ?

• the new reality • customer in control • “pull” > “push” • traceability ?

TARGETING IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

TARGETING IN THE DIGITAL ERA

multi- channel

mono- channel

cross- channel

omni- channel

Jamie Nordstrom head of Nordstrom Direct

“If we focus on the customer, the outcome will be right”

customer centric commerce

TARGETING IN THE DIGITAL ERA

25

26

B2C

27

36%

55%

57%

65%

70%

70%

73%

Online beoordelingen van consumenten

raadplegen: winkels

Aanbod verkennen alvorens naar de

winkel te gaan

Online beoordelingen van consumenten

raadplegen: producten

Online opzoeken wat er te koop is in

winkels alvorens ik ga winkelen

Online prijzen van producten of diensten

vergelijken

Online prijzen van winkels vergelijken

Online extra info opzoeken over iets dat

ik in een reclamefolder gezien heb

% eerder + helemaal akkoord

bron: “Retail in Belgium,” InSites/Vlerick, 2012 (n = +170 per uitspraak) 28 |

29

plus d’info sur www.carrefour.eu/tv

30

31

• traditional CRM • who ? • what message ? • when ? • what medium ?

TARGETING IN THE DIGITAL ERA

33

34

B2B

35

“B2B buyers have B2C expectations on e-commerce platforms”

Andy Hoar (Forrester Consulting)

36

37

38

39

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 40

ENGAGEMENT IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

42

B2C

43 |

44 |

45 |

46

“We are seeing about 34% of (pick-up) visits translating into additional sales in shop and that number is growing

exponentially at the moment.

It’s typically or increasingly for purchases that the customer didn’t think they would make. So it is quite

out with whatever they were going to collect.”

47

path to purchase

in-store experience

49

B2B

50

“B2B customers are looking for self-service solutions”

Andy Hoar (Forrester Consulting)

ENGAGEMENT IN THE DIGITAL ERA

51 |

pre-digital

sales rep:

knows little about a lot

ignorant customer:

knows nothing

digital

sales rep:

knows little about a lot

informed customer:

knows a lot about little

52

“50% of B2B companies buy from B2C websites”

Andy Hoar (Forrester Consulting)

53

54

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 55

CONVERSION IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

57

B2C

58

59

60

B2B

CONVERSION IN THE DIGITAL ERA

61 |

pre-digital

sales rep:

knows little about a lot

ingnorant customer:

knows nothing

digital

sales rep:

knows little about a lot

informed customer:

knows a lot about little

result

conversion: increasing

interactions:

less & shorter

satisfaction: decreasing (customer & staff !!)

from selling towards helping to buy

62

from selling to helping to buy…

63

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. bonding in the digital era

6. conclusion

64

BONDING IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

66

B2C

BONDING IN THE DIGITAL ERA ?????

67

TARGETING IN THE DIGITAL ERA

68

TARGETING IN THE DIGITAL ERA

69

70

4. bond ?

CUSTOMER JOURNEY

71 source: McKinsey

72

93% of visitors are store customers

73

74

75

LOCATION BASED

medium ?

permission based

text message (SMS)

most intrusive

messaging inside an app

requires installing…

… and opening the app

online advertising

search advertising

bannering

76

77

78

B2B

79

80

81

82

AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. bonding in the digital era

6. conclusion

83

84

customer centric commerce

86

one size doesn’t fit all

OMNI-CHANNEL

omni- channel

cross- channel

multi- channel

mono- channel

OMNI-CHANNEL

multi- channel

mono- channel

cross- channel

omni- channel

share of heart

89

CONCLUSION

90

Prof. Gino Van Ossel

Retail management

E-commerce & omni-channel

Shopper & trade marketing

Channel management

gino.vanossel@vlerick.com

@ginovanossel

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