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    Learn the 4 Essential Requirements, Part 3 of 4, Slides 153-228 Learn the 4 Essential Requirements, Part 3 of 4, Slides 153-228 Presentation Transcript

    • Transforming YourCustomer Experience: Learn the 4 Essential Requirements Part 3 of 4 ©2012 Ernan Roman Direct Marketing
    • Additional VoC Lessons Opt-In Preference-Based Personalization as a Competitive Differentiator 153 Step 2: Opt-In Engagement
    • The bar has been raised dramatically for Even among loyal online and offline marketers:customers, expectations of marketers have • Good customer service is expected and changed due to: is a powerful competitive differentiator. Tough economy • Increased expectations for value atGrowth of many onlineand offline options for competitive prices. making purchases: • Better shipping and handling terms. • Personalized offers and experiences based on their individual interests: “I welcome the targeted “When I go to the emails, suggestions, Amazon site, I feel like recommendations. They are they know what I like.” working to send me only what I told them was relevant.” 154 Step 2: Opt-In Engagement
    • As a result, customers • Personalization is viewed as a service and and prospects view benefit, not just a sales tool. personalization as the next step in acompany’s commitment • Online shoppers view personalization as a to service excellence. requirement for their preferred shopping venues, rather than as simply a perk. • Many BtoB decision-makers use Amazon as their point of reference regarding expectations for BtoB personalization. • BtoB and BtoC marketers have to at least match Amazon! 155 Step 2: Opt-In Engagement
    • Meaningful Personalization Customers are also savvy regarding the type of personalization they want. They want it to be more than just transaction-based. “I expect more than just ‘we’ve looked at everything you’ve bought over the last X years and this is what we think you’ll like’. With today’s technology, I expect much more than that!” 156 Step 2: Opt-In Engagement
    • Your Top 3 Takeaways?1.2.3. 157 Step 2: Opt-In Engagement
    • Step 2 Step 2: Summary Opt-In Opt-in is not about passively agreeing to receive email. Engagement It’s about actively opting in to a relationship and self- profiling your preferences and aversions. Your VoC-based opt-in database should include at least, the following information regarding individual’s: • Needs How to Create • Decision making process Powerful Opt-In • Offer Databases to • MessageDrive High Impact • Timing Personalization • Media Preferences. Strategies Set as your goal: Opt-In rates ranging from 80% to 95%. 158 Step 2: Opt-In Engagement
    • Step 2 Step 2: Summary Opt-In Five Ways to Win Consumer Confidence: Engagement 1. Consumers have to trust that the company will adequately safeguard their information and use it in a responsible way. 2. “Responsible” means that consumers must believe that their information will not be rented or sold. How to Create 3. “Honor my preferences” reflects the expectation Powerful Opt-In that their “Opt-In” self-profiled preferences will be Databases to used to drive increasingly targeted communicationsDrive High Impact and offers... and suppress those that are not Personalization relevant per the expressed preferences of individual customers. Strategies 159 Step 2: Opt-In Engagement
    • Step 2 Step 2: Summary Opt-In 4. The value consumers receive in exchange for Engagement providing in-depth information must be obvious and compelling. Consumers must see an obvious improvement in relevance. Applies both to online and offline experiences. If the value is not obvious, consumers will assume you have betrayed their trust and expectations. How to Create Powerful Opt-In 5. Consumers must see proof that the company will Databases to be able to deliver on requirements 1 through 4Drive High Impact above, not just once, but consistently over time. Personalization Strategies 160 Step 2: Opt-In Engagement
    • AssignmentTomorrow, be prepared to discuss 2 improvements to your marketing based on todays learnings. 161
    • Drawing for 2 Autographed Books: 162 Step 2: Opt-In Engagement
    • Step 3: How to Use the 5 Principles of Multichannel Marketing 163
    • Homework AssignmentLet’s discuss 2 improvements to your marketing based on yesterdays learnings. 164
    • Step 3: How to Use the 5 Principles of Multichannel Marketing Drawing for 2 Autographed Books: 165 Step 3: Multichannel Marketing
    • Step 3: How to Use the 5 Principles ofMultichannel Marketing Step 2: Opt-In Engagement Step 1: VoC Research Step 3: Multichannel Marketing 166 Step 3: Multichannel Marketing
    • On any given day, the Message Overload customer will be exposed to nearly 3,000 media messages. They will pay attention to 52. They will positively remember 4. The chance they will remember your ad is 0.013%!D. Mastervich, VP, Sales Strategy, U.S. Postal Service, VDP Conference Presentation 167 Step 3: Multichannel Marketing
    • Multichannel Marketing Integration Entire Customer Experience must be integrated: Must • Acquisition Encompass: • Conversion Message • On-boarding • Retention Media mix • Renewal Organization Employee Customer Experience must be integrated: And…theCustomer Experience • Performance metrics • Compensation • Training • Retention • Renewal 168 Step 3: Multichannel Marketing
    • Multichannel Marketing Integration If Integration is so logical…why are so few doing it well? Must • Turf Encompass: • Politics Message • Fear of change Media mix Organization How can you be the agent of change? And…theCustomer Experience 169 Step 3: Multichannel Marketing
    • “Per the DMA, Let’s Define “Relevance” 93% of marketersusing multiple channels 1. Right message. have attempted to integrate their 2. Right time. messaging. Only 27.4% of these 3. Right person. said their efforts are ‘effective’. . .” 4. Delivered per that individual’s media DMA Report, “Rowing preferences. as One: Integrated Marketing Today,” 4/11 Integrated, multichannel irritation! Without this, all we have achieved is. . . 170 Step 3: Multichannel Marketing
    • Shopper Sentiment: In-Store, Online and Via Mobile Online: • Overall Favorite: 59% • Easiest: 68% • Most Convenient: 68% In-Store: • Most Reliable: 69% • Safest: 77% Mobile: • Most Convenient: 38% • Easiest: 27% • Safety: 7% (vs. 22% Online) Nielsenwire 6/6/12 171 Step 3: Multichannel Marketing
    • Safeway: Multichannel Innovation Personalized offers and prices based on shopper’s behaviors, habits and profile information. “Though use of personal shopping data might raise privacy concerns, retailers are counting on most people accepting the trade-off, if it Safeway employee signing up a shopper for means they get a better custom offers. price for a product they want”. New York Times 8/9/12 172 Step 3: Multichannel Marketing
    • Consumer Channel Preference by Category Epsilon Targeting 173 Step 3: Multichannel Marketing
    • Channel / Media Trustworthiness Epsilon Targeting 174 Step 3: Multichannel Marketing
    • Multichannel MarketingRequires precision timing and synchronization of multiple mediaand channels.Precision integration of traditional and digital media and contactpoints. Per individual’s opt-in preferences. . . IDM® is a registered trademark of Ernan Roman Direct Marketing. 175 Step 3: Multichannel Marketing
    • 5 Principles of Multichannel Marketing54321 1: Start with the Customer (VoC). 176 Step 3: Multichannel Marketing
    • Per VoC FindingsToday’s shopper is multi-dimensional;multi-channel and multi-purpose. Per a recent VoC: A customer describedMany report using multiple media, often how she likes to watchat the same time. the TV shows while browsing the website. As she finds items to Alert! purchase, she puts them in her shopping The channel used for the purchase is often not indicative of their shopping habits. cart, prints it, and… Most used multiple media to shop, calls Customer Service and often, to purchase. to place the order. 177 Step 3: Multichannel Marketing
    • “. . . Multichannel customers spend Personalized multichannel two to three times more than communications based on single-channel shoppers. . . customer’s individual Consumers who engage with the preferences is a competitive company across three or more differentiator. channels spend six times more than the average customer.” “If I got the information that was focused on the stuff IGlen Senk, CEO of Urban Outfitters was interested in, it would be easier than sorting through all the products they have. It would be so much faster and more convenient and make my shopping easier.” 178 Step 3: Multichannel Marketing
    • 5 Principles of Multichannel Marketing543 2: Create processes for generating feedback from your social2 media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance.1 1: Start with the Customer (VoC). 179 Step 3: Multichannel Marketing
    • VoC Guidance from CSRs Based on VoC feedback from  Results: CSR’s, Nordstrom’s upgraded • Immediate customer their website and inventory adoption. integration so any item in • 8% higher sales. any store (not just warehouses) is shown on • Fewer markdowns. their website and shipped to • Better inventory control. the customer’s nearest • A boost to customer store, with a notice to the loyalty. customer. • More add-on store sales. 180 Step 3: Multichannel Marketing
    • 1. Enter yoursearch criteria 181 Step 3: Multichannel Marketing
    • 2. Select your item and method of delivery182 Step 3: Multichannel Marketing
    • 3. Select your location for pick-up or have it shipped!183 Step 3: Multichannel Marketing
    • 5 Principles of Multichannel Marketing543 3: Synchronize your multichannel mix with precision and value. 2: Create processes for generating feedback from your social2 media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance.1 1: Start with the Customer (VoC). 184 Step 3: Multichannel Marketing
    • QVC, 9/23/12185 Step 3: Multichannel Marketing
    • QVC, 9/23/12186 Step 3: Multichannel Marketing
    • Multichannel / Multimedia CustomersPer QVC, today’s customers are uniquely Multichannel.Keep in mind:• Be accessible when and where the customer chooses.• The multi-platform approach must be seamless, frictionless, and agnostic, i.e., every channel must provide a good customer experience.• An integrated multi-platform strategy will increase sales. QVC, 9/23/12 187 Step 3: Multichannel Marketing
    • Precision Integration: Response Compression Response Traditional Compression PhoneResponse Response Phone E-mail / Mail E-mail / Mail Time: 1 – 2 Weeks Time: 1 – 24 Hours 188 Step 3: Multichannel Marketing
    • Precision Sequencing and TimingWeb and digital synchronized with beginning of Publicity and continue Print Email #1/ Outbound Email #2/Publicity advertising Mail #1 Calls Mail #2 1 week 1 week 1-24 Per opt-in hours preferences after receipt 189 Step 3: Multichannel Marketing
    • Multichannel MarketingWeb:“Per Forrester…only 3% of sites earned a passing score in terms of the user experience.3 Reasons:1. Text legibility and clearly detailed privacy statements. Recommend using 10 to 12 point dark Sans Searph font against a light background.2. Menu names aren’t clear and people don’t know where to go.3. Content and functionality…which are not…based on deep customer research. “It’s incredibly important to understand your target users…and how you can help them on your site.”Per findings by Bronto Software: Poor site usability…among 100 online retail brands resultsin an average 70 percent cart abandonment rate. 1 to 1 Media, 5/28/12 190 Step 3: Multichannel Marketing
    • Sephora’s Media IntegrationSephora revamped website and mobile apps to integrate in-store and online experiences.Online searches and purchases are saved to a customer’s profile if they are a member ofSephora’s loyalty program, Beauty Insider. “It’s an opt-in service, because Sephora recognizes that not all consumers want to be tracked. Currently, 20 Sephora stores will have iPads from which store associates will be able to pull customer data to help them with purchases… A lot of the information we gathered was from how we would ask for that information in a store”, Dolan said of the new, targeted online search, adding that “customers can search across 25 different criteria including age group, SPF, skin type and more. We have all expertise of Sephora’s staff built into a web interface, and that’s extremely powerful.” Bridget Dolan, VP Interactive Media. DM News 4/19/12 191 Step 3: Multichannel Marketing
    • Multichannel Marketing Multichannel Email:Success Factors • “Email may be the base of your communications with Unless you obtain me, but I’m getting too much junk.”opt-in message and • “Make it relevant and timely!”media preferences and aversions. . . • “And, if it’s really important, send it to me by mail.” You’ll simply be engaging in multichannel irritation! 192 Step 3: Multichannel Marketing
    • 10 Minutes Prior… 193 Step 3: Multichannel Marketing
    • From: Daniel Brendler [mailto:D.Brendler@EastHillsChevrolet.onesource1.gmtorque.com]Sent: Monday, June 28, 2010 11:47 AMTo: ernan@erdm.comSubject: We received your request for informationLong Islands Premier Chevrolet Dealership!.Hello Ernan,We received your email request for information on the 2010 Corvette, are you interested in purchasing one this month? If so, pleasecontact me directly for an appointment to discuss your needs.If you are just looking for information, go to www.chevrolet.com/ (next to the forward slash, fill in the vehicle name, press the space bar and click onthe link).When you are in the market for a vehicle, please let me know and I will assist you with current incentives and finance options. Regards,Danny BrendlerGM Certified Internet Sales ManagerEast Hills ChevroletDESK: (516)869-8100 X 211Cell: (516)383-3267Fax: (516)869-9455dbrendler@ehchevy.com contactchevydan@gmail.com 194 Step 3: Multichannel Marketing
    • VoC-Based Messaging 195 Step 3: Multichannel Marketing
    • 196 Step 3: Multichannel Marketing
    • From: Carbonite Customer Care [mailto:customer_care@clickemail.carbonite.com] Sent: Saturday, September 25, 2010 4:37 PM To: Ernan Roman Subject: Your initial Carbonite backup is complete "FEEL GOOD" NEWS! Your initial Carbonite backup is complete.Dear Ernan,Good news: Carbonite has completed your initial online backup for ERNAN-LAPTOP. If youselected Automatic backup, heres how your backup works: VoC DRIVEN MARKETING 197 Step 3: Multichannel Marketing
    • 198 Step 3: Multichannel Marketing
    • 199 Step 3: Multichannel Marketing
    • Multichannel Marketing Multichannel Direct Mail:Success Factors • “Mail should be specific to my role, to what I do all day long.” Unless you obtain • Direct mail should be used as a highly personalizedopt-in message and and relevant communication.media preferences and aversions. . . • Direct mail format should reflect value and include: personalized letter, impact addressed envelope and You’ll simply be live stamp. engaging in • Post card mailings are the multichannel antithesis of this and irritation! generate low ROI. 200 Step 3: Multichannel Marketing
    • Direct Mail Versus Email Finite Universe of Prospects: 50,000 Profit per unit sold: $200 Direct Mail v2 Direct Mail v1 Email Cost per solicitation $5.00 $1.50 $0.05Response rate (sales %) 10% 2% 0.13% Cost per sale $50.00 $75.00 $38.46 Total # of sales 5,000 1,000 65 Profit $1,000,000 $200,000 $13,000 Can you run a business with 65 sales? 201 Step 3: Multichannel Marketing
    • 202 Step 3: Multichannel Marketing
    • Multichannel Marketing In Step 4, titled “How to Increase  Field sales: Must be trained in the Power of Your Online and disciplined Pre-Call Planning and Digital Marketing, we’ll Relationship Selling. have a detailed discussion of • Must be integrated with your the following: other contact points for • Web maximum responsiveness and • Digital media, including: cost-effectiveness.  Twitter  Inbound calls: Highest value,  Facebook. highest conversion medium.  Outbound calls: Proactive, service- oriented calls to opt-in lists increases responses 500% - 700%. 203 Step 3: Multichannel Marketing
    • 5 Principles of Multichannel Marketing54 4: Re-conceive Inbound as a high value customer interface. By definition, Inbound callers are more 1) Qualified, and 2) Likely to spend.3 3: Synchronize your multichannel mix media with precision and value. 2: Create processes for generating feedback from your social2 media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance.1 1: Start with the Customer (VoC). 204 Step 3: Multichannel Marketing
    • Inbound Calls Should Provide High Value However, when inbound customers call, what they frequently encounter are human robots! Customers have become conditioned to poor service. 205 Step 3: Multichannel Marketing
    • High Value Inbound CallsWhat does it cost you inmarketing and promotion dollars to generate an Inbound call?What do your customers experience when they call your 800#? 206 Step 3: Multichannel Marketing
    • 207 Step 3: Multichannel Marketing
    • Inbound as a High Value Experience Increased sales Targeted outbound callCalls Personalized fulfillment Via email, mail or fax. Proactive, highly trained reps 208 Step 3: Multichannel Marketing
    • 5 Principles of Multichannel Marketing5 5: Customer Lifecycle Marketing: 1) Communications must be deployed at appropriate points in the buying cycle, and 2) Contacts should be driven by opt-in preferences.4 4: Re-conceive Inbound as a high value customer interface. By definition, Inbound callers are more 1) Qualified, and 2) Likely to spend.3 3: Synchronize your multichannel mix with precision and value. 2: Create processes for generating feedback from your social2 media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance.1 1: Start with the Customer (VoC). 209 Step 3: Multichannel Marketing
    • Three Key Phases of the Customer LifecyclePre-Sale VoC-driven integrated multichannel contacts. Must gather opt-in preferences.Sale Not a “close.” Instead, it’s the beginning of proactive, value-based relationship development.Growth and Retention Requires ongoing proactive engagement, i.e. “How can we better serve you?” Ongoing value-added justifies price premium Proactive generation of repeat sales. 210 Step 3: Multichannel Marketing
    • Customer Lifecycle Marketing Retention RetentionFrequently overlooked. Analyze high revenue/profitToo much focus on acquisition. potential accounts.Analyze reasons for your Are you providing true value?churn/inactive rates: Do you really know what they do • Customer demographic may and how they use your products? not be a good fit. Are they being serviced by all • Industry. your channels? • Your sales reps. • Lack of proactive marketing. 211 Step 3: Multichannel Marketing
    • Are You Investing Enough in Your Customers? Top Marketing Investment producing customers Top producing customers Good customers Good customers Dormant Dormant customers & customers & Qualified prospects Qualified prospects Suspects Suspects Marketing Segmentation 212 Step 3: Multichannel Marketing
    • Doug Stein President HMS National, Inc. Doug was a distinguished Fortune 500 consultant for Accenture in the 1990’s. There he helped manage some of the firm’s most prominent projects while also being key to the development of significant corporate solutions and industry offerings that notably increased market share and profit for the world’s largest consulting firm. Doug Stein President In his current position, Doug is the senior executive at HMS National responsibleHMS National, Inc. for developing and delivering innovative growth strategies in a historically mature and commoditized industry. dstein@hmsnational.com www.hmsnational.com 213 Step 3: Multichannel Marketing
    • Case StudyHow Voice of Customer Insights Helped Change Our Culture,the Customer Experience...and Increased Renewals Over 50% 214 Step 3: Multichannel Marketing
    • A home warranty helps homeowners avoid unexpected home repairs which are often expensive. The warranty provides coverage against mechanical failures for many major systems and appliances, 30+ year old privately coverage that is not provided by most homeowners’ held company. insurance policies. Market and sell home The term of the warranty is typically one year. warranties through real estate agents. Traditionally, Home Warranties cover many systems and appliances, including: Use direct marketing to • Air conditioning and heating systemsrenew home warranties • Refrigerators when the one yearcontract, initiated during • Water heaterspurchase of the home, is • Washers/dryers approaching expiration. • Ovens/ranges • Electrical systems • And more. . . 215 Step 3: Multichannel Marketing
    • 3-Steps:Goals of the VoC Know much more about our customer’s needs. . . Significantly and use this to drive our marketing.improve renewal rates. Establish meaningful opt-in preference-based relationships. Improve the Deploy our customer multichannelexperience across mix customer channels. preferences. 216 Step 3: Multichannel Marketing
    • VoC Research Objectives Sample Step 1 • Stimulate greater renewal rates Customers who renewed • Identify what home warranty means to customers Customers who did Know Much • Determine how customers define the not renew More About value of HMS Segments: Our • Evaluate claim experiences; strengths and • Home buyers Customer’s weaknesses who purchased home warrantyNeeds. . . And • Measure level of satisfaction with HMS Use This to • Home sellers • Analyze perception of marketing who purchased Drive Our communications home warranty Marketing • Gain insights into product enhancements • Filed claim/Did • Determine willingness to opt-in and self- not file a claim profile preferences to drive targeted communications 217 Step 3: Multichannel Marketing
    • Voice of Customer Research Learnings Regardless of The customer Real estate Customers often who purchased experience, not agents often calculate the the warranty, just the amount drive the value of the(i.e. home seller of claims paid, customer’s warranty ifor home buyer) significantly perception of they consider engagement impacts renewal the value of renewing. is low. behavior. renewing. Service enhancement Customers Customers are opportunities expect HMS to receptive to identified: be proactive self-profiling focus on the throughout the their interests end-to-end claims handling and preferences. customer process. experience. 218 Step 3: Multichannel Marketing
    • Opt-In Overview Step 2 Key 1: Collect preferences, (per the Reciprocity of Establish Value Equation) Meaningful Opt-In Key 2: Deploy truly personalized communications Preference- BasedRelationships Key 3: Implement Steps 1&2 above, per privacy guidelines 219 Step 3: Multichannel Marketing
    • VoC-Driven Strategies Step 3 VoC learnings helped develop more effective strategies for: • How to engage customers throughout the customer lifecycle including during the renewal process, e.g. telemarketing, direct Deploy Our marketing, auto renewal.Multichannel • Which product to offer, e.g. cross-sell or up-sell.Mix Per Opt-In • What additional information to offer regarding home repair and Preferences maintenance. Phased implementation began in 2009, with a major phase recently implemented in mid-2012. 220 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchPre-VoC, our initial touch point with our customers was informational withoutbeing engaging. Previous fulfillment kit: Transactional delivery of warranty documents 221 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchPre-VoC, our initial touch point with our customers was informational withoutbeing engaging. Truncated first page of warranty agreement Terms and Conditions made up bulk of the initial customer touch point. 222 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchPost-VoC, we are leveraging this early touch point to immediately engageeach customer. Added personalization New tonality focused on engaging the customer 223 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchTo successfully engage customers, several elements are incorporated from VoClearnings. Welcome page 224 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchCreated valuable content. This wasnot defined by HMS, but insteadby customers and prospects. 225 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchRenewal Solicitation Stream•Having re-engineered upfront customer touchpoints, HMS embarked on the overhaul of therenewal solicitation stream.•Previously a traditional direct mail process, it wasupdated to a highly customized, multi-channelmarketing campaign.•The solicitation process was engineered withprecise time intervals, to optimize media synergy.•The overhaul felt logical and accurate, it wasinformed by and therefore in part designed by ourcustomers. 226 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchExample: Effective Direct Mail / Touch 4VOC Insight: Prior marketing efforts didnt strongly motivatecustomers to rethink their decision not to renew.Tactic: Utilized a 3rd and final direct mail touch 20 days prior toexpiration. This oversized piece was printed on 100# CarolinaC2S paper and when folded was 6 X 11 to stand out and createa large space to call out the impending expiration and the riskfactors of not renewing.Creative: Designed to be a prominent, large-font, bold piece,the intent of this mailer was intentionally simple - to causecustomers to think; "how would I afford the cost for faileditems in my home"? It had urgency, call-to-action, and anincentive for non-claimants. 227 Step 3: Multichannel Marketing
    • Implementation Per VoC ResearchCustomer engagement through a relationship-oriented call• Pre-VoC, multi-touch renewal process was Post-VoC, piloted service- direct mail driven. oriented telemarketing with focus on certain segments and• In the VoC, customers expressed receptiveness to, and / a the results were as positive and a need for, a dialogue with HMS. as the VoC projected.• The VoC enabled multi-channel marketing that drives incremental sales. Noteworthy results from the calling initiative – a• Cost of telemarketing is several times 20% increase – was quickly higher than mail, but the incremental realized, with far greater sales offset the expense and optimize lift in certain segments. profitability. 228 Step 3: Multichannel Marketing