Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing

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Join us for this 45-minute webinar, in which we will share insights on what is really working in 2013 — based on campaign performance data from hundreds of retailers and behavioral analysis spanning 250 million consumer profiles.

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Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing

  1. 1. Stepping  Up  To    Consumer  Expecta5ons    The  Impera*ve  for  Customer-­‐Centric  Marke*ng  #CustomerCentricity  Sponsored  by  
  2. 2. #CustomerCentricity  Type  ques5on  here  Welcome  Webinar  AAendees  
  3. 3. #CustomerCentricity  Follow  This  Webinar  On  TwiAer  #CustomerCentricity
  4. 4. #CustomerCentricity  About  Retail  TouchPoints  ü  Launched in 2007ü  Over 26,000 subscribersü  To provide executives with relevant,insightful content across a variety ofdigital mediumFree subscription to our weekly newsletter:WWW.RETAILTOUCHPOINTS.COM/SIGNUP
  5. 5. #CustomerCentricity  Panelists  Howard WynerCEOScentiments.comDaniel DrukerCMOMyBuysDebbie HaussEditor-in-ChiefRetail TouchPoints
  6. 6. 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. 7. 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. 8. 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    ►  Delighng  the  Customer  is  Amazon’s  stated  strategy  –  and  they  are  execu*ng  $13.9B $14B497 of IRTop 500Amazon2012Growth2012Growth
  9. 9. 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 impactsare issues for your firm?
  10. 10. 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. 11. 11  CURRENT  STATE  OF  CUSTOMER-­‐CENTRIC  MARKETING  HOW DO CONSUMERSFEEL ABOUT IT?WHAT APPROACHESWORK BEST?WHAT SHOULDMARKETERS GO DO?
  12. 12. 12  2013 - 5TH ANNUALCONSUMER STUDYHOW  DO  CONSUMERS  FEEL  ABOUT  IT?  Source:  the  e-­‐tailing  group  
  13. 13. 13  CURRENT  STATE  OF  CUSTOMER-­‐CENTRIC  MARKETING  HOW DO CONSUMERSFEEL ABOUT IT?WHAT APPROACHESWORK BEST?WHAT SHOULDMARKETERS GO DO?
  14. 14. 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. 15. 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. 16. 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. 17. 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. 18. 18  THINK  HOLISTICALLY  ACROSS  THE  CUSTOMER  LIFECYCLE  ACQUIRECONVERTNURTURECost  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. 19. 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. 20. 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. 21. 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. 22. 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. 23. 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-­‐08  Sep-­‐08  Nov-­‐08  Jan-­‐09  Mar-­‐09  May-­‐09  Jul-­‐09  Sep-­‐09  Nov-­‐09  Jan-­‐10  Mar-­‐10  May-­‐10  Jul-­‐10  Sep-­‐10  Nov-­‐10  Jan-­‐11  Mar-­‐11  May-­‐11  Jul-­‐11  Sep-­‐11  Nov-­‐11  Jan-­‐12  Mar-­‐12  May-­‐12  Jul-­‐12  Sep-­‐12  Nov-­‐12  Jan-­‐13  Customer-­‐Centric  Marke5ng  Revenue  Performance  Index  MyBuys  Data:  January  2010  to  December  2012.  
  24. 24. 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. 25. 25  THE  MORE  ENGAGED  CHANNELS,  THE  HIGHER  LIFETIME  VALUE    $159      $375      $760      $-­‐          $100      $200      $300      $400      $500      $600      $700      $800    1   2   3  Average  Consumer  Spend  Number  of  Engaged  Channels  Avg  Consumer  Spend  5X  improvement  MyBuys  Data:  January  2010  to  December  2012.  
  26. 26. 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 doyou think your firm is doing really well in?
  27. 27. 27  CURRENT  STATE  OF  CUSTOMER-­‐CENTRIC  MARKETING  HOW DO CONSUMERSFEEL ABOUT IT?WHAT APPROACHESWORK BEST?WHAT SHOULDMARKETERS GO DO?
  28. 28. 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-­‐CHANNEL  &  OMNI-­‐DEVICE  CUSTOMER  LIFECYCLE  
  29. 29. 29  STRATEGY  1:    CUSTOMER-­‐CENTRIC  DISPLAY  ADS  ACQUIRECONVERTNURTUREAudience  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. 30. 30  STRATEGY  2:  CUSTOMER-­‐CENTRIC  E-­‐MAIL  ACQUIRECONVERTNURTURETop  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. 31. 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.  CONVERTNURTURE•  Search  results  page  •  Brand  pages  •  Order  confirma*on  page  Personalized  site:    •  Product  detail  pages  •  Category  pages  •  Home  page  •  Brand  pages  •  Search  results  page  
  32. 32. 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-­‐CHANNEL  &  OMNI-­‐DEVICE  CUSTOMER  LIFECYCLE  1  2  3  4  
  33. 33. 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 discusseddo you think would have the biggestfinancial impact on your firm for 2013?
  34. 34. 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. 35. 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  ?  
  36. 36. #CustomerCentricity  Type  ques5on  here  Q&A  /  Submit  Your  Ques*ons  
  37. 37. #CustomerCentricity  Panelists  Howard WynerCEOScentiments.comDaniel DrukerCMOMyBuysDebbie HaussEditor-in-ChiefRetail TouchPoints
  38. 38. #CustomerCentricity  Thank  You  For  AAending!  Download  this  presenta*on  at:  hmp://rtou.ch/customercentricity  

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