Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing
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Transcript of Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing
Stepping Up To Consumer Expecta5ons
The Impera*ve for Customer-‐Centric Marke*ng
#CustomerCentricity Sponsored by
#CustomerCentricity
About Retail TouchPoints
ü Launched in 2007
ü Over 26,000 subscribers
ü To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP
#CustomerCentricity
Panelists
Howard Wyner CEO
Scentiments.com
Daniel Druker CMO
MyBuys
Debbie Hauss Editor-in-Chief
Retail TouchPoints
6
WHAT TO EXPECT TODAY
• Strategies based on what really works • Primary research spanning thousands of consumers
• Real campaign performance data from hundreds of commerce sites
• Behavioral analysis from 250 million consumer profiles
7
WHAT MARKETERS ARE FACING IN 2013
► Margin erosion
► Show-‐rooming
► Discoverability challenges
► Loss of customer loyalty
► Harder to gain understanding about customer
► Can’t maximize life*me value
► Lower return on marke*ng spend
► Internet shiRs power from seller to buyer
► Mobile is now pervasive
► Omni-‐channel and omni-‐device is the norm
► Amazon -‐ friend or foe ?
► CEO expects marke*ng to be more effec*ve
► CMO = Chief Metrics Officer
Forces Impacts
Key insight: Customer-‐centricity is a strategic response to both forces and impacts
8
AMAZON – FRIEND OR FOE ?
► Accounts for 25-‐35% of all ecommerce
► Most marketers think about Amazon Prime, free shipping, purchasing power…
► You should also be planning strategies around margin erosion, show-‐rooming, and discoverability
► Deligh'ng the Customer is Amazon’s stated strategy – and they are execu*ng
$13.9B $14B
497 of IR Top 500
Amazon
2012 Growth
2012 Growth
9
POLLING QUESTION ONE
• Internet shiRs power to the consumer
• Impact of mobile compu*ng
• Show-‐rooming
• CEO pressure for marke*ng spend to be more effec*ve
• Omni-‐channel
• Loss of customer loyalty
• Strategy for dealing with Amazon
Which of these forces and impacts are issues for your firm?
10
SEGMENTS OF 1: TOTALLY PERSONALIZED
CONVERSATIONS
OMNI-‐CHANNEL AND OMNI-‐DEVICE
ALIGNED WITH THE BUYER LIFECYCLE
LEVERAGING REAL-‐TIME, BIG
DATA & NETWORKS
WHAT IS CUSTOMER-‐CENTRIC MARKETING?
11
CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING
HOW DO CONSUMERS FEEL ABOUT IT?
WHAT APPROACHES WORK BEST?
WHAT SHOULD MARKETERS GO DO?
13
CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING
HOW DO CONSUMERS FEEL ABOUT IT?
WHAT APPROACHES WORK BEST?
WHAT SHOULD MARKETERS GO DO?
14
• Customer-‐centric marke*ng requires moving from marke*ng to segments to marke*ng to each consumer individually
• Every part of every conversa*on must be personalized for that specific consumer, their situa*on and their buying process
MAJOR INNOVATION – SEGMENT OF ONE
Key insights: Marke5ng to segments is marketer-‐centric, not customer-‐centric
360° view is not sufficient – customer must also have single view of you
15
MOBILE / OMNI-‐DEVICE IS CRITICAL
• Mobile momentum is unstoppable – 55% of all email now opened on mobile – 30% of shopping traffic, 15% of purchases
during Black Friday 2012
• 2/3 of mobile traffic is smart phones, but 2/3 of purchases are on tablets
• Consumers are engaging with mul*ple devices – Iden*fy which devices belong to whom – Op*mize conversa*ons across devices, not just
for one device at a *me
Key insights: Both individual purchases and longer-‐term rela5onships now span mul5ple devices
Your 2013 email strategy should be mobile-‐first
16
PERSONALIZED, COORDINATED, OMNI-‐CHANNEL CONVERSATIONS
E-‐mail
Display adver5sing Online store
Social media
Mobile
Physical store
Key challenges: Internal silos, internal compe55on and systems
Key requirement: Op5mize across channels, not just within a channel
17
TRULY KNOW YOUR VISITORS
• Remember everything consumers have shared with you, forever
• Leverage all of this consistently across every communica*on and every channel
• Know what *me of day and what devices consumers use to shop and purchase
• Track how consumers compare to each other, over *me
• Par*cipate in a network to automa*cally iden*fy formerly anonymous visitors
• The more informa*on you have access to, the beAer your can serve your consumers
Key insight: Individual organiza5ons are unlikely to see sufficient traffic on their own
18
THINK HOLISTICALLY ACROSS THE CUSTOMER LIFECYCLE
ACQUIRE
CONVERT
NURTURE
Cost effec*vely engage those consumers most likely to become customers
Ensure that the highest percentage of visitors purchase, at the maximum average order value
– increasing total sales
Drive repeat purchasers & re-‐engage lapsed customers to maximize life*me value
Re-‐engage non-‐responsive consumers to cost-‐
effec*vely re-‐acquire new customers Key insight: $1 spent on nurturing can be worth $3 spent on acquisi5on
19
CUSTOMER-‐CENTRIC DISPLAY ADVERTISING • Personaliza*on, segmenta*on
and targe*ng drive effec*veness – Now cost effec*ve even for
acquisi*on • Reach beyond email: engage
consumers on the Internet at large
• Align omni-‐channel and with the shopper lifecycle – Specific coordinated tac*cs for
acquisi*on, conversion and nurturing
Bomom Line: Up to 20X return on adver5sing spend, 400% uplio vs. standard retarge5ng
20
CUSTOMER-‐CENTRIC E-‐MAIL
• Personaliza*on vastly improves e-‐mail performance – by every measure
• Key: deploy holis*cally across customer engagement and lifecycle – Scheduled (ex. seasonal promo*ons) – Triggered (ex. products of interest) – Transac*onal (ex. cart abandonment)
• Drives conversion, cross-‐sell, upsell and re-‐engagement
Bomom Line: Typically 10X higher revenue per email; 30% higher average order value
21
CUSTOMER-‐CENTRIC E-‐COMMERCE SITES
• Automa*cally iden*fy consumer and op*mize shopping experience just for them
• Personalize content and recommenda*ons comprehensively throughout site
• Maximize conversion, upsell, cross-‐sell, order value and customer sa*sfac*on
Benefit: 25% higher conversion, 300% increase in order value, 77% more purchase add-‐ons
22
SCENTIMENTS APPROACH
DISPLAY ADS
EMAIL PROGRAM
NURTURING
Engagement across they buying cycle From 6:1 to 15:1 ROAS liR
New products of interest Order and shipping confirma*on
Post order series Abandoned site / cart
Incen*ves Referrals
Customer Services
Bomom Line: Seriously bemer financial results
23
EFFECTIVENESS INCREASES OVER TIME
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00% Jan-‐08
Mar-‐08
May-‐08
Jul-‐0
8
Sep-‐08
Nov-‐08
Jan-‐09
Mar-‐09
May-‐09
Jul-‐0
9
Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0
Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1
Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2
Sep-‐12
Nov-‐12
Jan-‐13
Customer-‐Centric Marke5ng Revenue Performance Index
MyBuys Data: January 2010 to December 2012.
24
Top 20 Products Sold 15%
Not in Top 20 Products 85%
85% of Products Purchased By Consumers Were Not Best Sellers
CUSTOMER-‐CENTRIC MARKETING CREATES INCREMENTAL REVENUE
Key insight: Helps insulate from compe5tors & Amazon’s purchasing power
MyBuys Data: January 2010 to December 2012.
25
THE MORE ENGAGED CHANNELS, THE HIGHER LIFETIME VALUE
$159
$375
$760
$-‐
$100
$200
$300
$400
$500
$600
$700
$800
1 2 3
Average Co
nsum
er Spe
nd
Number of Engaged Channels
Avg Consumer Spend 5X improvement
MyBuys Data: January 2010 to December 2012.
26
POLLING QUESTION TWO
• Segments of one – every conversa*on is unique
• Coordinated omni-‐channel conversa*ons with your customers
• Iden*fy anonymous visitors using a network
• Personalized product recommenda*ons on your website
• Display adver*sing for retarge*ng to drive conversion • Site and/or cart abandonment email programs
• Display adver*sing for acquisi*on • Comprehensive mobile strategy
Which of the ideas we just discussed do you think your firm is doing really well in?
27
CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING
HOW DO CONSUMERS FEEL ABOUT IT?
WHAT APPROACHES WORK BEST?
WHAT SHOULD MARKETERS GO DO?
28
FOR 2013: MAP OUT AND PRIORITIZE YOUR STRATEGY
Acquisi5on Conversion Nurturing Personalized display adver5sing
Personalized E-‐mail
Personalizing your e-‐commerce site
Addi5onal mobile, in-‐store, print, social, etc…
OMNI-‐C
HANNEL & OMNI-‐D
EVICE
CUSTOMER LIFECYCLE
29
STRATEGY 1: CUSTOMER-‐CENTRIC DISPLAY ADS
ACQUIRE
CONVERT
NURTURE
Audience acquisi*on Consumer re-‐engagement
Retarge*ng Site and cart abandonment
Cross-‐sell and upsell
Customer re-‐engagement New products of interest Pricing / offer changes Sales / promo*ons
1
2
3
MyBuys Data: January 2010 to December 2012.
30
STRATEGY 2: CUSTOMER-‐CENTRIC E-‐MAIL
ACQUIRE
CONVERT
NURTURE
Top seller emails NewsleAers
Personalized landing pages
Abandoned site & cart email Order confirma*on
Shipping confirma*on Post-‐order follow-‐up
New products of interest Pricing / offer changes
NewsleAers Sales / promo*ons
1
2
3
4
5
MyBuys Data: January 2010 to December 2012.
31
STRATEGY 3: CUSTOMER-‐CENTRIC E-‐COMMERCE
ACQUIRE Personalized landing pages
Personalized site: • Shopping cart • Product detail
pages • Category pages • Home page
1 2
3
4
5
MyBuys Data: January 2010 to December 2012.
CONVERT
NURTURE
• Search results page • Brand pages • Order confirma*on
page
Personalized site: • Product detail pages • Category pages • Home page • Brand pages • Search results page
32
FOR 2013: MAP OUT AND PRIORITIZE YOUR STRATEGY
Acquisi5on Conversion Nurturing Personalized display adver5sing
• Audience acquisi*on • Consumer re-‐engagement
• Retarge*ng • Site and cart abandonment • Cross-‐sell and upsell
• Customer re-‐engagement • New products of interest • Pricing / offer changes • Sales / promo*ons
Personalized E-‐mail • NewsleAers • Top seller emails • Personalized landing pages
• Abandoned site & cart email
• Order confirma*on • Shipping confirma*on • Post-‐order follow-‐up
• New products of interest • Pricing / offer changes • NewsleAers • Sales / promo*ons
Personalizing your e-‐commerce site
• SEO, SEM, etc • Personalized landing pages
• Shopping cart • Product detail pages • Category pages • Home page • Search results page • Brand pages • Order confirma*on page
• Product detail pages • Category pages • Home page • Brand pages • Search results page
Addi5onal mobile, in-‐store, print, social, etc…
OMNI-‐C
HANNEL & OMNI-‐D
EVICE
CUSTOMER LIFECYCLE
1
2 3
4
33
POLLNG QUESTION THREE
• Personalized display adver*sing for Acquisi*on • Personalized display adver*sing for Conversion • Personalized email for Conversion
• Personalized email for Nurturing
• Personalized website recommenda*ons for Conversion
• Personalized website recommenda*ons for Nurturing
Which of the strategies we just discussed do you think would have the biggest financial impact on your firm for 2013?
34
Howard’s Customer-‐Centric Marke5ng Tips:
1. Keep everything personal
2. Consumers are savvy – don’t try to force feed products to your customers, sell they what they want to buy
3. Communicate in a way that makes your customers feel important
4. Nurturing is really important: con*nually provide incen*ves to drive ac*on and make your clients feel like a part of a community
5. Know where your customers are coming from, know who they are, reach them where they live
35
CALL TO ACTION
• Customer-‐centric marke*ng really works • If you aren’t doing it, you are leaving
money on the table – or worse driving business to Amazon
• You can begin in one area or several – just make sure you have a holis*c strategy
• MyBuys would be happy to help you get started – and you can be live within weeks
Bomom Line: How else can you so quickly drive up to 25% increase in revenue ?
#CustomerCentricity
Panelists
Howard Wyner CEO
Scentiments.com
Daniel Druker CMO
MyBuys
Debbie Hauss Editor-in-Chief
Retail TouchPoints