Omni-Channel Marketing: Meet customers increased expectations

Omni-Channel MarketingMeet Your Customers Increased ExpectationsJanuary 11, 2015

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Contents

� The Evolving Marketing Profession

� Bringing Omni-Channel to Life with Case Studies

� IBM ExperienceOne Solutions

� Appendix

‒ Retail Use Case Examples

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The evolving marketing profession

Creating a system of engagement that maximizes value creation at every touch.

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Understanding each customer as an individual.

Timeless 2012

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The evolving marketing profession

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Understanding each customer as an individual.

Timeless 2012

Co-create authentic brand experiences with customers, employees, and partners.

Innovate andscale personally relevant and rewardingexperiences.

Know each customer in context.

2014

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Retailers need to re-imagine everything

about the way they engage with consumers to create brand value

54% of consumers

would consider ending their relationship with a retailer if they are not given personalized content and offers

57% of consumers

will not recommend to peers a business with a poorly designed mobile site

Less than 50%of retailers collect social network dataand only 8% thought it an important factor in generating insights

Source: http://www.digiday.com/brands/13-alarming-stats-about-retail-in-digital/

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Awareness of new shopping concepts and

consumer comfort in using them, provide more ways for retailers to connect

These new retail concepts provide the retailer with a vast

source of customer data to allow for more personalized

service

25%

25%

28%

30%

31%

33%

37%

39%

40%

42%

43%

43%

"Chat with a stylist" offer while online

Sign up for an appointment with an in-store stylist/expert

Download a "how to buy" e-brochure or app

Receive in-store mobile alerts

Check into a kiosk to get offers

Create a "virtual closet" online

Create a "virtual me" online

Rate products as favorites

See reviews from other purchasers

Visit a "virtual store" while online

Rate promotions from the retailer

Expert advice

Percent of shoppers interested in retail concepts

Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers

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Shoppers want retailers to provide

personalized promotions and recommend relevant offers

Use my prior purchasing to offer me promotions

55% 43%Use my prior purchasing to recommend new products

Invite me to events

43%Involve me in new product ideas

36%

Interest in retailer offers

From Transactions to Relationships: Connecting With a Transitioning Shopper Global View

Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers

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..And digital, social, and mobile technologies

have revolutionized the way consumers expect

to interact

43% of consumers indicated they posted about a retailer they had shopped

36% of consumers willing to share current location (vs 19% in 2011)

77% of B2B buyers check with peers before buying

55% of retail customers expect personalized promotions & offers

59% of consumers influenced by friends social posting of a purchase (vs 41% by retailers own recommendations)

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Studies show consumers are open to sharing

most personal information when there is

perceived benefitConsumer Control of Data

What is your willingness to provide information in exchange for something relevant to you (non-monetary)?

25% 27%41% 41% 44% 46%

63%

30% 30%

28% 29% 28% 28%

21%45% 43%

33% 30% 28% 26%15%

0%

20%

40%

60%

80%

100%

Media Usage

(e.g. Media

channels)

Demographic

(e.g. age,

ethnicity)

Identification

(name,

address)

Lifestyle (# of

cars, home

ownership)

Location

Based

Medical Financial

Completely Disagree Neutral Completely willing

Source: IBV Retail 2012 Winning Over the Empowered Consumer Study n= 28527 (global) P04: What is your willingness to provide information for each of the following items if [pipe

primary retailer] provided something relevant to you in exchange?

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Contents




� Appendix


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Leaders are shifting to a model of

customer engagement

Understand Engage

Optimize

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With four specific practices, the 20% of

marketers who lead this transformation outperform their peers

Leading marketers own the customer experience—and their

companies financially outperform competitors

3.4x higher

Three-year gross profit growth

1.8x higher

Three-year net income growth

Three-year stock price growth

2.4x higher

Deliver an omni-channel experience

Consistently measure results

Break down silos

Maximize the moment2

3

4

1

Three-year gross profit growth

Three-year net income growth

Three-year stock price growth

Source. “The State of Marketing 2013: IBM’s Global Survey of Marketers,” IBM Center for Applied Insights, May 2013.

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Outperformers understand the need for an

omni-channel approach

92%continue the push to knowing their customers

20%of leaders integrate inbound and outbound communications

Top

Source. “The State of Marketing 2013: IBM’s Global Survey of Marketers,” IBM Center for Applied Insights, May 2013.

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Engage customer in the context of their

journey

Make customer data actionable in context

Personalize interactions at scale in

the right channel, not all channels

Deliver exceptional customer experiences

across the brand

Orders

Transactions

Payment history

Usage history

Attributes

Characteristics

Self-declared info

Geographic

demographics

Opinions

Preferences

Needs & Desires

Email

Chat

Call center notes

Web clickstreams

In-person

MobileMobile

DirectDirect

OnlineOnline

Call

Center

Call

Center

Point of

Sale

Point of

Sale

KioskKiosk

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Case Study: Best Buy deploys more effective campaigns with larger basket sizes & increased reward zone membership

Challenge

� Best Buy wanted to have the ability to launch more marketing campaigns faster

and more efficiently. In addition, they wanted to shift from mass marketing to a more targeted, personalized marketing approach using customer timing, trends and triggers

� They also wanted to increase loyalty by shifting customers from acquisition to their member rewards program

Solution

� Best Buy was able to double reward zone membership in 3 months� By leveraging customer insight data and utilizing IBM’s ExperienceOne solutions they were able to significantly increase the number of campaigns while

simultaneously increasing their contextual marketing with more targeted, personalized offers � Best Buy was able to increase the number and effectiveness of their campaigns

and also decreased operating costs through the use of marketing automation tools

“With greater insight into

customer behavior, the

company has a clear view

into what customers want so

that it can deliver every marketing message

effectively.”

—Vice president of CRM

Solution Components� IBM Campaign

� IBM InfoSphere Information Server

� IBM Pure Data for Analytics

17% Increase in operating profit Process ImprovementsKey benefits 10% Increase in trips to the store

20% Increase in shopping basket size

20% Increase in margin

82% Reduction in cycle time for campaigns

3X Improvement in efficiency

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Case Study: Orvis revamps their marketing campaigns with significant results to more closely align with their customers

Challenge

� With data residing in fragmented systems, Orvis had no truly unified view of the

customer. There was no way to see that certain customers, for example, may prefer to receive information through email but make purchases in a retail store.�Campaign planning and execution were slow, largely manual processes and Orvis

had outsourced its email marketing, further limiting flexibility and control over campaign execution.

Solution

� The solution uses a flowchart-based user interface to manage the entirety of a campaign’s logic, including audience segmentation, exclusions, and assignment of offers and channels. It also enables campaigns of any size, including micro-

campaigns targeting specific individuals based on exhibited customer preferences identified.� Now every marketing manager is empowered to manage data, create campaigns,

pull customer lists and track the results in real time. The efficiency gains are enormous

Orvis is a multichannel retailer,

the oldest mail-order company

in the United States and has

more than 40 retail stores in

the United States and the

United Kingdom and 500

dealers worldwide


� IBM eMessage

40%Reduction in email costs versus

prior outsourced solution

Record profits after solution implementation

Key benefits

2 Years

Reduction in campaign and reporting costs88%

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Case Study: A retail giant in South America uses personalized marketing tools to create a new level of customer intimacy

40%Reduction in email costs versus

prior outsourced solution

Record profits after solution implementation

Key benefits

2 Years

Reduction in campaign and reporting costs88%

Challenge

� As it expanded and grew, a retail giant in South America needed a more effective

way to identify and target customers with relevant and timely offers, and to coordinate marketing campaigns across several different lines of business (LOBs)

Solution

� The retailer adopted a sophisticated campaign solution that integrates customer information across several LOBs and geographies and centralizes its marketing

efforts. The solution helps the retailer assemble targeted campaigns with personalized offers and use preferred communication channels for each customer at well-timed intervals.

� The solution boosted customer loyalty by sending precisely timed and targeted offers

“With greater insight into

customer behavior, the

company has a clear view

into what customers want so

that it can deliver every marketing message

effectively.”

—Vice president of CRM


� IBM eMessage� IBM Interact� IBM Marketing Operations

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Let’s meet Lily

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Combine customer behavior with real-time

information

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Lily’s loyalty is rewarded and the

relationship deepened

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Contents




� Appendix


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IBM ExperienceOne customer engagement solutions. Proven patterns for business outcomes

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IBM ExperienceOne - The industry’s most comprehensive customer engagement portfolio

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IBM ExperienceOne enables marketers to…

Understand Engage

e

Optimize

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A Complete Omni-Channel Marketing

Solution

Marketing

Operations

Reduce channel

silos through

collaboration

and measurement

Interaction &

Campaign

Management

Drive relevant

messaging across offline and online

channels

Multi-channel

Execution

Align with customers’

expectations on their channel of preference

at the right moment

Customer

Analytics

Discover customer

preferences and behavior across

channels and

predict what the

customer wants

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Limited insight of a customer’’’’s behavior across touch points –

increasingly outside the company

Understand Engage

Optimize

Lack of skills to leverage data-driven marketing

Channel-centric systems and processes make it hard to shift

to integrated omni-channel experience

Scaling real-time personalization to engage in context based on customer

behavior and preferences

IBM understands and addresses customer

engagement automation challenges

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IBM ExperienceOne is uniquely positioned

to provide clients the integrated advantages of On Premise and Cloud

On Premise HybridCloud

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Contents




� Appendix


© 2014 IBM Corporation

Use Case #1: Real-time Mobile Offers – Take customers physical shopping experience and extend digital offers to engage the customer

Paul Williams - Profile

� Age 55

� Chicago, IL

� Traveling Salesman

� Active user of Facebook

� Social – love to get advice

from friends

� Medium technology affinity

� Open to offers that provide

savings & make his hectic

life easier

World traveling

support seeker: “I’m

open to new offers that fit

with my lifestyle."

IBM Solution Highlights: •IBM Mobile Customer Engagement messages customers in the right mobile channel, at the right time, in the right place, with the most relevant content

•Leveraging Omni-Channel Marketing the Retailer can serve the customer the appropriate offers along the entire customer journey from research to shopping to purchasing and fulfillment. . By using campaigns at strategic points in the customer journey you can stay engaged with the customer and build lifetime customer value .

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IBM Solution Highlights: •The Mobile Customer Engagement solution enables using each customers mobile behavior and physical location to provide real-time engagement and personalization via mobile.

•Flexibility with usage including in-store messaging, 1:1 messaging & personalization, new product introductions, service alerts, loyalty programs, and more

•Simple and rich mobile push notifications •Increases response rates, offers customer convenience and provides valuable customer data insights

Paul is shopping along Chicago’s Magnificent Mile and he spends time at XYZ Retailer looking at Big Screen TVs. Paul is a regular customer and has the mobile app on his phone. Based on his location and past purchase/search behavior he receives a push notification offer from XYZ Retailer telling him that he will receive 10% off on any Big Screen TV in-store that day – and an additional 15% off any TV-related accessories.

Paul decides to take advantage of the offer and buys a new TV. After his purchase he receives a rich push notification with a summary of his loyalty points and a link that he can send the same 15% coupon to two of his friends good for one week and he will receive a 15% discount for a future purchase at XYZ Retailer.


Jill Soloman - Profile

� Age 42

� Single mother of two young

boys

� Willing to provide personal

information if it will save

her time and money

Single mother looking

for savings &

convenience: “With my

hectic schedule I’m always

open to new opportunities

to save time or money."

Jill receives an SMS from her grocer with

coupon savings on items she regularly buys.

The coupons can be used with her phone at

checkout. In addition, she is also provided

with an offer of 3 different quick-to-make

recipes based on her shopping history that

she can do with only a few extra items.

IBM Solution Highlights: • IBM Digital Analytics can track an

individual’s online activity and then use that customer insight to trigger an offer to be displayed in the most relevant channel. Customers can be engaged earlier with the identification of trends, patterns, anomalies, etc.

• The Grocer can continue to build comprehensive customer profiles to provide targeted messages & offers that align to the customers interests and their preferred method and frequency of contact.

Jill likes the savings and the recipes that are so convenient and healthy for her and her sons. After work, Jill goes to the grocery store and buys her items. Later when she is home she receives an SMS for some additional targeted offers that are good for 7 days.

IBM Solution Highlights: • IBM Interact can provide real-time offers

with any inbound customer interaction (CSR, Mobile, Kiosk, etc.) for personalized offers previously only delivered thru outbound campaigns and it continues to learn as it goes from offers accepted or rejected to make the best targeted offer.

• The solution can be used to determine the optimal contact strategy for each customer. The solution will look across behaviors, scheduled communications and any constraints to ensure the customer receives the most relevant and timely offers in their preferred channel.

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Use Case #2: Increase Basket Size – Increase basket size with personalized offers and convenience


Ron Smith - Profile

� Age 33

� Plays on local rec league ice

hockey team

� Active user of Facebook

� Social – love to get & share

advice with friends

� Medium to High

technology affinity

� Open to offers that provide

guidance and support

Sporting Goods

Support Services: “I’m

interested in offers that can

assist me with my ice hockey

hobby."

Ron has been sharing his rec hockey team results with his friends on Facebook & in Twitter forums and also accessing XYZ Power Hockey’s mobile app for skating tips and information. Ron’s activity triggers an automated offer from XYZ Power Hockey to join its ice hockey blog. The blog has reviews on new equipment, a section for buying & selling used gear and other forums.

IBM Solution Highlights: • IBM Silverpop - Automate marketing with

omni-channel across digital channels. The solution synchronizes personalization across digital channels and devices, e.g. tailors customer’s mobile app experience based on his preceding engagements.

• Real relevance goes beyond customer stated preferences -- real preferences are revealed thru customer interactions and behaviors allowing Retailers to drive more relevance in content and timing of messages

A few days later Ron receives an email providing him with early notice of a sale on his preferred brand of hockey sticks. Ron buys a stick & uses it that night in his rec league game. The following day he provides a review of the stick on the blog and he also shares news of his offer with his friends on facebook.

IBM Solution Highlights: • The IBM Solution enables a single view of

the customer across digital channels and devices --- including early sessions in which the customer was anonymous. It can combine individual data with ‘wisdom from the crowd’ to recommend content before consumers even know that they want them

• The solution leads the industry in:• Ease of connecting to digital data• Automate marketing for digital channels• Benchmark metrics

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Use Case #3: Automated Consumer Offers – Using consumers’ digital experiences to trigger automated offers


John has been shopping on his smartphone

and receives an offer for a silver watch that

he likes and he calls in to place his order. The

CSR tells John that it’s a popular watch and

asks him for his name and other pertinent

data. The CSR can see that John is a valued

customer with a high propensity to buy

multiple items.

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Use Case #4: Cross-Sell/Upsell – Using real-time analytics to target customers at the right time, with the right offer

John Whitton - Profile

� Age 55

� Magazine Editor

� Fashion conscious

� Open to offers that catch

his eye and are seen as a

good value from retailers

that he shops at frequently

John calls in to

purchase a watch: “I’m

open to offers that

complement my lifestyle”

IBM Solution Highlights:• IBM Campaign - Customer profile data can

be used to segment customers into the appropriate customer segment including customer scoring (e.g., high risk, high value) to provide more targeted offers.

• IBM Campaign provides a much more granular level of customer segmentation and offering capabilities than most CRM systems.

• IBM Campaign can provide SMS messages thru its eMessage capability. The solution enables retailers to automate and trigger marketing messages, improving marketing efficiency.

IBM Solution Highlights: •IBM Interact -provides CSR Reps with real time inbound updates to deliver personalized service & offers. Offers can be made thru inbound touchpoints based on customer behavior and preferred channel.

•Sophisticated self-learning algorithms automatically determines the right offer at right time, at scale, in milliseconds.

•Additionally, Interact can use both existing customer data and data from the immediate context to provide offers & services and it learns as it goes from acceptance and rejection of offers

The CSR tells John that there is also a pair of cuff links made by the same manufacturer –and describes the product features to John. John likes the cuff links, asks how much they are and decides to add them to his order.

© 2014 IBM Corporation34

Use Case #5: Marketing Operations – Ramping up performance of the marketing organization

Ron Smith

� Age 33

� Chicago, IL

� XYZ Retailer Marketing

Manager

Profile:

� Sees benefits and risks

associated with marketing

automation


� Looking to drive higher ROI

across company for XYZ

Retailer

Upwardly mobile

young manager: “I need

to show that I can build a

high-performance

marketing team."

IBM Solution Highlights: •IBM Marketing Operations increases the efficiency of marketing teams by gaining better control over their budgets and processes. IBM Marketing Operations helps marketers align resources to objectives, streamline production processes, track budgets and expenses, and improve team collaboration.

The CMO has asked Ron to drive increasingly personalized marketing campaigns to stem the loss of high value customers to MNO Retailer.

Ron recognizes that to do so his department needs to resolve some key issues that affect the implementation of the new campaign software.

• Process bottlenecks cause campaigns to take longer to get off the ground.

• Multiple marketing teams find it challenging to coordinate campaign scheduling ,resulting in inconsistent messaging across XYZ Retailer’s channels.

• Inability to measure campaign effectiveness

With IBM Marketing Operations, Ron improvesmarketing productivity by better managing projects, resources, teams, and approvals in a collaborative environment. With MO, Ron can: • Manage all the elements of the campaign

execution process in a fully integrated environment, enabling the coordination of multi-wave retention campaigns.

• Create an offer repository that delivers full offer management across the marketing suite, enabling better offer processing, productivity, and performance that dramatically reduces campaign cycle times.

• Determine return on marketing investment (ROMI) and analyze how well campaigns fared against campaign KPIs.

© 2014 IBM Corporation35

Use Case #7: Advanced Market Basket Analysis – Take market basket analysis to the next level to provide more targeted offers

Ron Smith

� Age 33

� Chicago, IL

� XYZ Retailer Marketing

Manager

Profile:

� Sees benefits and risks

associated with marketing

automation


� Looking to drive higher ROI

across company for XYZ

Retailer

Upwardly mobile

young manager: “I need

to show that I can build a

high-performance

marketing team."

XYZ Retailer uses Market Basket Analysis to gain insight into what their average customer buys. This provides XYZ with analytics around whether customers are buying larger or smaller basket sizes and what products are in the baskets.

But the CMO has asked Ron to see if they can leverage that data to provide more targeted offers.

Ron decides to use the Market Basket Analysis data to determine segments of customers who buy similar items.

Using IBM Campaign Ron can segment the market basket data and score the segmented data to determine 10 different types of baskets. Ron now has 10 segments of “customer like me buy baskets like this” and he can now provide offers based on that more targeted information

IBM Solution Highlights: •Many retailers today are using market basket analysis to gain insight on what the average customer buys. This data doesn’t typically provide information around “what customers like me buy” or what segments to target.

•With IBM Campaign the market basket data can be used to begin segmenting market baskets into similar patterns of baskets and then use customer data to score around basket sizes and segments to determine the appropriate next best offer for customers “likely to buy baskets or products like this”.

IBM Solution Highlights: •IBM Campaign provides a much more granular level of customer segmentation and offering capabilities than most CRM systems.

•IBM Campaign and Digital Analytics can not only monitor website activity, but can also measure response rates to campaigns. That is how customer data points are used to segment customers (e.g., high risk, high value, etc.) to build a profile for the appropriate actions. Combining customer buying behavior with market basket data retailers can improve campaigns and increase customer basket sizes

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Thank you.

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Omni-Channel Marketing: Meet customers increased expectations

Marketing

Transcript of Omni-Channel Marketing: Meet customers increased expectations