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Marketing to a Segment of One - Fico ExactTarget Webinar


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  • 1. A Segment of One
    How Retailers Can Change The Game This Holiday Season
  • 2. About the Presenters
    Joel Book
    Principal,Marketing Research & Education Group
    ExactTarget, Inc.
    John Koltonowski
    DirectorMarketing Solutions Retail/CPG Practice
    • 30 years of experience in database marketing. Helped more than 100 BtoB and BtoC use data and technology to communicate and sell more effectively
    • 3. Specializes in strategies and tactics to attract and retain customers using email, mobile and social media
    • 4. Voted one of the “50 Most Influential People in Sales Lead Management” in 2009
    • Responsible for consulting with FICO clients to apply FICO Decision Management technologies in the marketing lifecycle. 
    • 5. 20 years of business and consulting experience, helping organizations build and strengthen customer relationships.
    • 6. Helps to design and equip organizations with innovative solutions, leveraging automation and decision technologies to improve performance and achieve growth.
    © 2010 Fair Isaac Corporation.
  • 7. © 2010 Fair Isaac Corporation.
    “Getting the right message to the right customer at the right time is now possible with interactive marketing and especially with mobile (as it’s sent to an individual vs. a household).Retailers need to break down silos between channels—focus on customer driven marketing.”
    Source: Gartner
  • 8. Today’s Webinar
    In this Webinar, you will learn:
    Why smart retailers are using predictive analytics technology to deliver pertinent and timely offers to individual customers
    How you can use FICO® Retail Action Manager (RAM) to optimize decisions to ensure the right customer gets the right message at the right time
    What you can do to optimize retail sales opportunities during the upcoming 2010 Holiday season
  • 9. U.S. Retail Sales
    Forrester Research predicts U.S. Online Retail Sales for 2010 will reach $173 Billion, and Web-influenced retail sales will total $1.21 Trillion
  • 10. Retailing in 2010 – Key Trends
    Ability to execute consistent promotions across channels is a key competitive differentiator for top retailers.
    Adoption of mobile is ramping up quickly. By 2014, smartphones will comprise 37% of global handset sales.
    Shift from “Segment” Targeting to “Individualized” Targeting
    Increasing customer expectation and demand for offers that address their needs and interests
    Adoption of advanced “sense and respond” technology that predicts (with accuracy) offers that are relevant and timely to individual customers
  • 11. How is a “Segment of One” Different?
    From One to Many . . . to One to One
    Individualized Marketing
    Segment Marketing
    Batch & Blast
    Campaign Calendar
    Customer Lifecycle
    Business & Channel Silos
    Integrated & Informed
    Supplier Funding
    Supplier Targeting
  • 12. Traditional Segmentation Approach
    This week, promote product X
    Not interestedthisweek
    Select customers most likelyto want product X
    Send offer to entire subpopulation
  • 13. Segment of One Approach
    This week, promote product X
    Select customers most likelyto want product X NOW!
    Send offer to targeted individuals
  • 14. Getting to a Segment of One
    What Marketers Must Do:
    Develop and apply more insight about customers
    Track behaviors and link to performance
    Understand needs and attitudes
    Record and use individual preferences
    Create messaging consistent to the individual, not the offer
    Predetermine the best offer for immediate delivery
    Optimize marketing for ROI, practical constraints
  • 15. Leveraging Customer InsightTo Drive Engagement And Loyalty
    Act on Knowledge
    Sophistication of Retail Personalization
    Understand needs & attitudes
    Track behaviors
    Know Customers
    Identify at all channels
    Capture & validate
    Segment & value
    Interact via preferred channel
    Triggered marketing & cross-sell
    Targeted messages, services & solutions
  • 19. Relevance is Vital to Success
    • Delivering relevant and timely offers can increase response rates by more than 30% (Source: Fair Isaac Corporation)
  • Automating Relevance
    Introducing Retail Action Manager (RAM)
    Delivering relevant and timely offers to individual customers just got a lot easier
    With RAM, you can:
    • Discover WHAT individual customers are most likely to buy . . . and WHEN
    • 20. Predict the likelihood of purchases, over time
    • 21. Deliver relevant and timely offers using email, e-commerce, mobile and POS channels
    • 22. Learn which campaigns worked best and apply this knowledge to future campaigns
  • How Retail Action Manager WorksPersonalization in Action
    • Transaction Data
    • 23. Demographic Info
    • 24. Response Data
    Apply Optimization
    Apply Business Rules
    Collect Consumer Information
    Create Custom Treatments
    Retail Action Manager
    • Transaction Data
    • 34. Demographic Info
    Coupon Offer
    • Creates customer specific offers
    • 35. Creates a matrix of scores for all customer / item combinations
    • 36. Creates eligibility matrix of all target customers and all target Items
    personalized offers by email
  • 40. Integrated Technology
    • Offers executed by integrating of customer data, analytics, RAM, email, and e-commerce
    • 41. Ability to measure campaign effectiveness
    • 42. Ability to execute 1:1
    E-Commerce Website
    Landing Pages, Registration Pages
    Total Integration
    of Data
    “Thank You” Pages, Webcasts / Podcasts
    Email Communications
    Predictive Offers
    Retail Action Manager
    Tracking and Analytics
    Marketing Database
  • 43. Large Electronics Retailer Description (Confidential)
    Objective: Increase relevance and consistency of marketing communications across multiple channels
    Approach: Use intelligent, dynamic product recommendations in communications
    Massive data analysis frommultiple enterprise sources
    RAM centralizes marketingcommunications under a single decision platform
  • 44. Large Electronics Retailer Results (Confidential)
    Success: Significant incremental revenue in first 90 days of platform operation
    Solution delivered in less than 120 days
    Delivering millions of demand generated messages per monthto consumers
    Multi-channel communications arerelevant, timely, and consistent
  • 45. Q&A
    I’d like to implement this approach before Holiday 2010, how long is a typical implementation?
    How do different segmentation approaches impact the execution of one-to-one?
    Will the segmentation differ based on the channel (email, Mail, Mobile, Social etc)?
    What are some of the challenges and best practices to get this type of segmentation adopted and implemented within large organizations?
  • 46. FICO® Retail Action Manager (RAM)Workflow Overview
    You collect consumer data
    • Demographics, Transactions, Online behavior, Preferences, Psychographics
    You set constraints
    • Products, Offers, Campaigns, Goals
    RAM adds data feeds and interprets the data
    • Customer segments, Customer scores, Offer strategies
    RAM creates business rules
    • Strategy-based offers, Trigger-based offers
    RAM integrates with your systems
    • POS coupons, SMS text messages, email offers, dynamic website content, personalized mailers