The Right Time for Real-Time Marketing

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A leading global hotelier is using real-time marketing to enhance loyalty and increase the amount of money spent during each hotel visit. A major financial institution is using event-triggered transactional and real-time communications to increase product penetration and turn customer behaviors into profitable product investments. These are just two real-world examples of the impact of real-time marketing.

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The Right Time for Real-Time Marketing

  1. 1. IBM Software Enterprise Marketing ManagementThought Leadership White PaperThe Right Time for Real-time Marketing:Deliver more relevant offers, increase response rates, and create happier,more profitable customers
  2. 2. 2 The Right Time for Real-time MarketingA leading global hotelier is using real-time marketing to It’s the right time for real-time marketingenhance loyalty and increase the amount of money spent In a climate of rising customer expectations, now is the rightduring each hotel visit. A major financial institution is using time to refine your use of inbound channels – it’s the time toevent-triggered transactional and real-time communications to go real time. Whether you are serving pre-defined static offers,increase product penetration and turn customer behaviors into no offers, or siloed offers, marketers who continue the statusprofitable product investments. These are just two real-world quo are missing a huge opportunity. Even some of the forward-examples of the impact of real-time marketing. thinking marketers who adopted inbound marketing in its early days (i.e. the first Internet bubble) may have disparate systemsSelecting the right offer for each customer is a complex in place that silo inbound and outbound marketing. These earlychallenge. Customers have taken control of the dialogue and systems have been left largely untouched, and while they arerelationship with your brand as they interact with traditional, delivering some value, they are stagnant; new channels existdigital and emerging social and mobile channels. Keeping that are not served. Integration between inbound and outboundyour customers engaged requires investing in customer-centric, data, or an upgrade initiative may be on the “to do” list, butinteractive marketing. A cross-channel, real-time marketing global economic challenges forced many businesses to backstrategy that leverages customer-initiated interactions in burner this effort. Although the global economic picture isinbound channels (call center, website, kiosk, point-of-sale, slow to improve, online marketing is maturing, and interactiveor ATM) enables you to market more effectively. marketing solutions are advancing, so the time is right to capitalize on this vast opportunity.Applying real-time marketing practices even further, adding theability to integrate customer behavioral data from all channels Best-practice marketers are deploying real-time marketing(outbound, social, mobile, etc.) delivers even greater marketing strategies to generate offers that are based on deep customerprecision and improves customer engagement for the long profiles, transaction histories, and other rich, real-time contextterm. Customers who engage with your brand on their own about the current interaction. The right offer for the rightterms, and share their needs and wants are much more receptive customer, delivered at the right time, is marketing that is soto marketing offers. Moreover, real-time decisioning takes into relevant it feels like a service. High relevance and the appealconsideration the context of the customer’s current interaction of personalized customer care help ensure optimal marketingto identify, prioritize, and deliver the most appropriate message results and lifetime customer value.in any channel.
  3. 3. IBM Software 3Here are four proven best practices in real-time inbound 3 Use real-time decisioningmarketing that can produce bottom-line results: Traditional marketing relied on historical interactions; today customer actions in inbound channels can disrupt your best1 Make it personal laid plans. Real-time decisioning lets you adjust to customer-Despite your best intentions, you can no longer expect results initiated interactions in the here and now. As interactionsfrom generic marketing messages where every customer become more digital, marketers have more data that drivesreceives the same communication or batch push offers based the need for sophisticated real-time decisioning technology.on historical data. Your customers expect you to know them, These self-learning systems use complex, automatedto take into consideration the context of their current interaction, algorithms to figure out which offer each customer is mostand to deliver personal, relevant messages. One of the likely to respond to, based on their customer profile andNetherlands’ leading financial institutions uses real-time their current behavior.marketing to deliver personal offers to customers whosesavings accounts are underutilized. As a result, they have 4 Enable collaborationincreased savings revenue by 5 percent. One of the most common obstacles to achieving real-time marketing is the typical marketing organization’s siloed2 Balance business objectives with customer needs organizational structure. Channel silos create barriers toYou can achieve business goals while delivering real-time effective centralized decisioning, and hinder agile, real-timemarketing. It’s possible to steer customers to options in marketing, so organizational buy-in, coordinated marketingproducts and services that meet their needs and your business campaigns, and clear commitment are essential to success.objectives. For example, a leading global loyalty programservice provider shows loyalty program members that bypurchasing “this” versus “that” (when “that” is a product witha higher profit margin) they can earn more points and biggerrewards faster.
  4. 4. 4 The Right Time for Real-time MarketingReal-time marketing in action • A major financial institution is using a combinationToday, leading marketers are using real-time marketing with of event-triggered transactional and real-timegreat success. From retail to financial services companies, communications to increase product penetration andreal-time marketing is an investment made to convert fleeting proactively turn customer behaviors into profitableopportunities into profitable customer interactions that increase product investments. A series of event-triggeredbottom-line revenue and build strong customer relationships. transactional marketing campaign strategies have beenHere are two examples of winning real-time marketing strategies. designed to detect significant customer deposits and withdrawals. Once an event is identified, a campaign• A worldwide hospitality organization is using real-time leverages lifetime value, response, and cross-sell models execution as an important component of its overall to determine the most effective offer, if any, for the marketing strategy to build customer dialogues, enhance individual. If an offer is recommended, the customer is loyalty and, ultimately, increase the amount of money contacted within 24 hours by a Relationship Manager. spent during each hotel visit. Upon making a reservation, Real-time campaigns are also being executed via the a guest receives a confirmation email delivered in a matter web, ATMs, and call centers, based on specific customer of minutes summarizing his reservation with a tailored up- requests. These event-triggered marketing campaigns sell offer. Forty-eight hours prior to the visit, he receives have delivered an increase in response rate from 20 another email listing the activities available at the hotel percent to 30 percent as well as significant incremental during his stay, as well as a promotion to encourage revenue. More importantly, the real-time marketing participation. The promotion is based on historical activities are integrated into an overall marketing and customer data, preferences, and predictive analysis. branding strategy, focused on helping the bank’s When the guest checks in, he receives a tailored letter customers to become “financially better off,” which is summarizing the daily activities and, again, coupons to leading to increased customer loyalty and profitability. participate. L astly, after check-out, the individual is contacted through their preferred channel to gather information pertaining to the visit as well as to encourage future visits. This timely, relevant and optimized dialogue communication strategy has increased customer loyalty while increasing the average revenue generated per visit. The investment in a flexible and scalable real-time solution that integrates with a marketing technology platform that handles not only real-time activities but also periodic and transactional activities has resulted in significant ROI and impressive bottom-line results.
  5. 5. IBM Software 5Real opportunity to improve About IBM Enterprise Marketingmarketing results ManagementReal-time marketing is a golden opportunity to engage The IBM Enterprise Marketing Management (EMM) Suitecustomers in meaningful dialogue. Inbound interactions is an end-to-end, integrated set of capabilities designedrepresent a time when your company has your customer’s exclusively for the needs of marketing and related organizations.undivided attention. You are more likely to receive permission Integrating and streamlining all aspects of marketing, IBM’sto cross-sell or deliver a marketing message during inbound EMM Suite empowers organizations and individuals to turninteractions. This is your chance to address your customer on their passion for marketing into valuable customer relationshipsa personal basis, to present relevant messages and offers that and more profitable, efficient, timely, and measurable businessreflect their most up-to-date needs, preferences, and priorities, outcomes.particularly as the line between inbound and outboundmarketing begins to blur. Customers are adept at moving across Delivered on premises or in the Cloud, the IBM EMM Suitemultiple channels—for example, researching purchases online of software solutions gives marketers the tools and insight theybut picking up in store. need to create individual customer value at every touch. The IBM EMM Suite helps marketers to understand customer wantsIBM Enterprise Marketing Management (EMM) provides and needs and leverage that understanding to engage buyersan end-to-end interactive marketing platform that includes in highly relevant, interactive dialogs across digital, social, andeverything you need to be as agile as your customers – to traditional marketing channels.operate seamlessly across all channels, inbound and outbound,mobile and social, in a complete range of media. Designed to address the specific needs of particular marketing and merchandising users, the IBM EMM Suite is comprised of five individual solutions. Digital Marketing Optimization enables digital marketers to orchestrate relevant digital interactions to attract and retain new visitors and grow revenue throughout the customer’s lifecycle. With Customer Experience Optimization eCommerce professionals can turn visitors into repeat customers and loyal advocates by improving the digital experience of every customer. With Cross-Channel Marketing Optimization customer relationship marketers can engage customers in a one-to-one dialogue across channels to grow revenue throughout the customer’s lifecycle. Price, Promotion and Product Mix Optimization allows merchandisers and sales planners to make price, promotion and product mix decisions that maximize profit and inventory utilization. And with Marketing Performance Optimization, marketing leaders, planners and decision-makers can model and assess mix, and manage marketing operations to maximize ROI.
  6. 6. Over 2,500 organizations around the world use IBM EMMsolutions to help manage the pressures of increasing marketingcomplexity while delivering improved revenue and measurableresults. IBM’s time-tested and comprehensive offerings aregiving companies such as Dannon, E*TRADE, ING, Orvis, © Copyright IBM Corporation 2012PETCO, Telefonica | Vivo, United Airlines and wehkamp.nlthe power and flexibility required to provide their customers IBM Corporationand prospects with what they expect today—a more consistent Software Group, Route 100and relevant experience across all channels. Somers, NY 10589 U.S.A.For more information November 2012 All Rights ReservedTo learn more about IBM Enterprise Marketing Management, IBM, the IBM logo and ibm.com are trademarks of International Businessplease contact your IBM marketing representative or IBM Machines Corp., registered in many jurisdictions worldwide. Other productBusiness Partner, or visit the following website: ibm.com/ and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright andsoftware/marketing-solutions trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NONINFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. Please Recycle ZZW03093-USEN-01

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