Pre Conference: Transforming Your Customer Experience

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  • Customer Experience Marketing Workshop for PNC - June 20, 2012
  • Customer Experience Marketing Workshop for PNC - June 20, 2012
  • 2- ONLY ASK FOR WHAT THEY NEED Another question is how much information you ask from your customers. It is understandable that you like to know as much as you can about them, but most likely customers are only willing to give you small bits and pieces of themselves as they see the benefit to do so. Ask for just enough information to get the customer to the next point and then for more information when you need it. Could show example of preference center collecting a data point (facebook profile for example) once the customer chooses to turn on that channel.
  • 2- ONLY ASK FOR WHAT THEY NEED Another question is how much information you ask from your customers. It is understandable that you like to know as much as you can about them, but most likely customers are only willing to give you small bits and pieces of themselves as they see the benefit to do so. Ask for just enough information to get the customer to the next point and then for more information when you need it. Could show example of preference center collecting a data point (facebook profile for example) once the customer chooses to turn on that channel.
  • 2- ONLY ASK FOR WHAT THEY NEED Another question is how much information you ask from your customers. It is understandable that you like to know as much as you can about them, but most likely customers are only willing to give you small bits and pieces of themselves as they see the benefit to do so. Ask for just enough information to get the customer to the next point and then for more information when you need it. Could show example of preference center collecting a data point (facebook profile for example) once the customer chooses to turn on that channel.
  • Story: If a customer sets the language twice to Spanish at the ATM, it might be safe to assume the he or she prefers to communicate in Spanish, not only at the ATM, but also in other communications. Alternatively the ATM could ask whether you would like to receive all your future communication in Spanish. (I HAVE SEEN THIS ON AN ATM AROUND $ AMOUNTS) Another example: If a customer subscribed to your email campaign and you the email does not get opened for the past 3 times, you can assume that either it is not of interest anymore, or the email address has been abandoned. Companies could create business rules to automatically unsubscribe the customer form that campaign or ask whether he or she is still interested in receiving it. (LINKEDIN DOES THIS, AUTOMATICALLY REDUCES FREQUENCY) “ Smart progressive profiling” can truly surprise and delight your customer. It shows that you try to learn about each individual customer and care about not sending junk to them or, communicating with them in their native language. It engages and builds trust to continue communicating with that company. This is a great opportunity for companies to differentiate themselves from the competition.
  • Implementing preference management is one of the first ways to connect up the disparate enterprise systems within an organization and it’s done around a common goal – the goal of honoring what your customer is telling you. In order to do this, all of your marketing systems need to have access to this information so the business rules in the individual systems can take advantage of the information as quickly as possible.
  • When the conversation gets a little off, allow the customer to correct the conversation being had so that the consumer can provide new information or update information to make the content they are receiving more relevant. This capability keeps them in the conversation and prevents them from completely unsubscribing.
  • We could point to the laws that are coming down the piper – wireless consent, do not track, that make preference management a necessity beyond keeping the customer engaged.
  • Customer Experience Marketing Workshop for PNC - June 20, 2012
  • Customer Experience Marketing Workshop for PNC - June 20, 2012
  • Customer Experience Marketing Workshop for PNC - June 20, 2012
  • Pre Conference: Transforming Your Customer Experience

    1. 1. Transforming Your Customer Experience: 4 Steps and 49 Actions Items Prepared by Ernan Roman Direct Marketing October 12 & 13, 2013 1
    2. 2. Ernan Roman President Ernan Roman Direct Marketing Corp. (ERDM) Recognized as a marketing thought leader. Inducted into the Marketing Hall of Fame for creating three transformational methodologies: Voice of Customer (VoC) Relationship Research, Opt-In Marketing and Integrated Direct Marketing. Named by Crain’s B to B Magazine as one of the “100 most influential people in Business Marketing”. Ernan Roman President, Ernan Roman Direct Marketing Corp. (ERDM) ernan@erdm.com www.erdm.com ERDM specializes in conducting Voice of Customer research to identify Customer Experience strategies that generate significant increases in response and revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft, and Symantec Corp. As a leader in providing VoC research-based guidance, ERDM has conducted over 10,000 hours of interviews with client’s customers and prospects to gain an in-depth understanding of their expectations for high-value relationships. Ernan’s latest book on marketing best practices is titled, “Voice of the Customer Marketing: 5-Step Process to Create Customers Who Care, Spend, and Stay”. Ernan writes the widely read and Huffington Post published blog, “Ernan’s Insights on Marketing Best Practices”. His other books include “Opt-in Marketing” and “Integrated Direct Marketing”. 2
    3. 3. Presenters Kris Gates Vice President, Customer Experience Marketing, MassMutual Retirement Services kgates@massmutual.com Eric V. Holtzclaw Vice President & General Manager, PossibleNOW, Preference Management Consulting ehotzclaw@possiblenow.com Douglas Stein President, HMS National dstein@hmsnational.com Bob Nanna Marketing Manager, Threadless bobn@skinnycorp.com 3
    4. 4. Kris Gates VP, Consumer Experience Marketing MassMutual Retirement Services Kris Gates VP, Consumer Experience Marketing MassMutual Retirement Services Kris Gates joined MassMutual in 2006 and is currently VP of Marketing, focused on the consumer experience for the Retirement Services Division. His responsibilities include development, execution, and measurement of marketing strategies designed for employees of companies offering MassMutual retirement and insurance products. Prior to assuming his current role, Mr. Gates served as AVP, Customer & Interactive Marketing, where he was responsible for the touch points making up the distribution, plan sponsor and participant experience. Before that, he spent 3 years focused on the distribution marketing of retirement plans. Prior to joining MassMutual, Mr. Gates spent 2 years as a Marketing Manager in the HR consulting industry, where he developed employee marketing campaigns and programs for Fortune 500 clients. Before that, he spent 5 years as an Institutional Product Administrator at JP Morgan Investor Services. Mr. Gates holds a Bachelors Degree in Business from Western New England College. kgates@massmutual.com www.massmutual.com 4
    5. 5. Workshop Agenda • Saturday, 10/12: Part 1; 10:00 - 12:30 Step 1, How to Use Voice of Customer (VoC) Insights to Drive Your Customer Experience Strategies ♦Speakers: Ernan Roman, President, ERDM Kris Gates, VP, Customer Experience Marketing, MassMutual ♦Break: 11:15 - 11:30 Lunch: 12:30 - 2:15 Part 2; 2:15 - 4:30 ♦Step 2, Create Powerful Preference-Based Databases With Customer’s Self-Profiled Information ♦Speakers: Ernan Roman, President, ERDM Eric Holtzclaw, VP, PossibleNOW ♦Break: 3:15 - 3:30 5
    6. 6. Workshop Agenda • Sunday, 10/13: Part 3; 10:30 - 11:20 ♦Step 3, How to Use the 5 Principles of Multichannel Marketing ♦Speakers: Ernan Roman, President, ERDM Douglas Stein, President, HMS National Lunch: 11:20 - 12:50 Part 4; 12:50 - 1:50 Step 4, Increasing the Relevance and ROI of Your Online and Social Media Marketing ♦Speakers: Ernan Roman, President, ERDM Bob Nanna, Marketing Manager, Threadless 6
    7. 7. Overview 7
    8. 8. 8
    9. 9. Per ERDM VoC, 4 Challenges for Companies Over the past 12 months, 4 key challenges have emerged from research: 1.Given increasing attrition rates due to competition, new focus on retention and reducing churn, versus traditional emphasis acquisition. on 2.Critical element of retention strategies: provide much higher levels of personalization. Applies to communications, offers, and experiences. 3.Learn how to engage customers to opt-in and provide detailed preference data, thereby enabling true personalization. 4.Achieve frictionless, high-value, customer engagement across the entire online and traditional multichannel mix. 9 Overview
    10. 10. Amazing Opportunities for Engagement Business Insider 5/17/12 10 Overview
    11. 11. Samuel Adams Crowd-Craft Project: Customers created “B’Austin Ale”  Invited Sam's Twitter, Facebook, and Google+ friends to provide their preferences to help create a new beer  Asked to make their choices about the beer's malt profile, hops selection, yeast type  Per Steve Greenlee, at 99 bottles: “Man is it good” New York Times 7/30/12 11 Overview
    12. 12. Time to Stop Doing It Wrong WSJ 3/19/12 12 Overview
    13. 13. Impact of Poor Customer Experiences “...failing to deliver a high-quality customer experience can result in a staggering erosion of a company’s customer base; loss of as much as 50 percent over a five-year period.” Accenture, 3/12 13 Overview
    14. 14. Consumers Trust Self-Selected Content More Than Push Communications Per Forrester US & European research: Only 10% of consumers trust advertising Between 85% and 90% of consumers don’t trust posts by companies or brands on social networking sites. Self-selected digital pull content rules the roost with up to 70% of consumers affirming that they trust brand recommendations from friends. Brand-led advertising online and offline has lost its allure. Today’s consumers decide where, when and how they want to engage with brands. B2C, 3/22/13 14 Overview
    15. 15. B2C, 3/22/13 15 Overview
    16. 16. Time to Get it Right Treat customers the way we want to be treated… …and generate double-digit increases in response and revenue 16 Overview
    17. 17. Goal for this Workshop Help you achieve the success of innovators such as: 17 Overview
    18. 18. Achieve Consistent Double-Digit Results Microsoft’s success: Opt-in rates up to 95% Open rates greater than 50% Response rates performing in the doubledigits Volume license revenue from those in the VoCdriven program is 2x greater than the control 18 Overview
    19. 19. Achieve Consistent Double-Digit Results “When HP uses the Voice of Customer methodology, our marketing campaign results improve dramatically: response rates improve 3x to 10x, sales increase 2x or more, and we can spend far less to get great results.” -- Gary Dawson, Hewlett-Packard Americas Advertising and Direct Marketing Manager 19 Overview
    20. 20. Achieve Consistent Double-Digit Results HMS National, Inc. Life Line Screening *updated 8/15/13 *updated 8/15/13 20 Overview
    21. 21. The VoC-Driven CEM Process CEM is a process that values, and is guided by, the insights of customers and prospects. prospects Goal is to achieve in-depth relationships based on understanding how customers and prospects define their expectations for relationship, relevance and engagement . 21 Companies who implement the CEM process consistently achieve doubledigit increases in response, revenue and retention. Includes Microsoft, NBC Universal, IBM, HP, and mid-size companies. Overview
    22. 22. 4-Step Voice of Customer-Driven CEM Process for Achieving Consistent Double-Digit Results Step 2: Opt-In Engagement Step 4: Online and Digital Step 1: VoC Research Step 3: Multichannel Marketing 22 Overview
    23. 23. Step 1 • How to Use Voice of Customer (VoC) Insights to Drive Your Customer Experience Strategies • Definition: Specialized depth research to understand customer/prospect needs, decision making process and expectations of the optimal experience via web, digital, email, offline media and customer service call centers. • Step 1: VoC Research These insights enable development of customer driven Engagement Strategies and Action Plans. 23 Overview
    24. 24. Step 2 • • Create Powerful Preference-Based Databases With Customer’s Self-Profiled Information Step 2: Opt-In Engagement Definition: VoC-driven process for engaging customers/prospects to Opt-in and self-profile their preferences, thus creating uniquely accurate Opt-in databases. Step 1: VoC Research 24 Overview
    25. 25. Important! Opt-in is not about passively agreeing to receive email. It’s about actively opting-in to a relationship and self-profiling your preferences and aversions. 25 Overview
    26. 26. Step 3 • • How to Use the 5 Principles of Multichannel Marketing Step 2: Opt-In Engagement Definition: VoC-driven process for deployment of the social and traditional multichannel media mix, per individual preferences. Step 1: VoC Research Step 3: Multichannel Marketing 26 Overview
    27. 27. Step 4 • • • Increasing the Relevance and ROI of Your Online and Social Media Step 4: Online and Marketing Digital Definition: Digital media represents not a means for direct selling, but a means for creating or improving relationships. Selling is a by-product of the quality and mutual benefit of those relationships. Step 2: Opt-In Engagement Step 1: VoC Research Step 3: Multichannel Marketing 27 Overview
    28. 28. Step 1: How to Use Voice of Customer (VoC) Insights to Drive Your Customer Experience Strategies Step 1: VoC Research 28 Step 1: VoC Research
    29. 29. JC Penney; Consequence of Ignoring the Customer By early fall 2011, Mr. Johnson was tackling Penney’s pricing, which he thought used too many discounts. He ignored a study Penney had just completed on customer preferences, and gave merchants a one-sheet grid explaining what prices they could use. “Ron’s response at the time was, just like at Apple, customers don’t always know what they want,” said an executive who advocated testing. “We’re not going to test it — we’re going to roll it out.” NYT, 4/9/13 29 Step 1: VoC Research
    30. 30. Result of Arrogance 30 Step 1: VoC Research
    31. 31. Global CMO Survey: For 42% of CMOs: “…representing the voice of the customer is one of the most critical factors in ensuring personal success as a marketer”. “CMOs and their peers understand that the real challenge is …to become the experts of the customers…They must understand what customers represent for the whole organization to help shape the strategy for the overall business.” -- Luca Paderni, VP and Principal Analyst, Forrester. Heidrick & Struggles and Forrester Research, 1/23/12 31 Step 1: VoC Research
    32. 32. Don’t re-engineer your relationship marketing strategies from the isolation of your conference room. . . The economy and social media have profoundly changed buyer’s priorities and expectations. If you have not fundamentally recalibrated strategies within the past 12 months, you are out of sync with your customers. 32 Step 1: VoC Research
    33. 33. VoC Learnings from Clients Including: 33 Step 1: VoC Research
    34. 34. How Consumers Define “Customer Experiences”* 1. Improve the customer experience across every point of contact with your organization. 2. Applies to all elements of the media mix and all departments in your organization. 3. High quality experiences must be maintained throughout the relationship “not just when you are selling or renewing”. *Definition is based on 10,000 + hours of VoC research conducted by Ernan Roman Direct Marketing, 5-26-13 34 Step 1: VoC Research
    35. 35. How Consumers Define “Customer Experiences”* 4. Customer experiences must be driven by my individual preferences regarding: message, timing, frequency, and media mix. 5. Preferences must drive high quality personalization of communications and experiences. Privacy of preference information is essential. *Definition is based on 10,000 + hours of VoC research conducted by Ernan Roman Direct Marketing, 5-26-13 35 Step 1: VoC Research
    36. 36. Per VoC: Customer Experience Requirement # 1 Significant gap between what customers/prospects consider a great customer experience and what marketers are providing. 36 Step 1: VoC Research
    37. 37. Per VoC Research Findings Across the last 6 months, a consistent trend: Consumers have shifted from being passive recipients of ‘push’ marketing, to selecting companies which engage, listen to, and act on, input from customers and prospects. Consumers expect companies to use their preferences to deliver increasingly personalized offers, communications, and experiences. Your Opportunity: How much more can you be doing to engage and em power your customers and prospects? 37 Step 1: VoC Research
    38. 38. VoC Learnings Question Answer Which has more impact on retention and repeat purchases; Customer Satisfaction or Customer Engagement/Relationship? Engagement/Relationship strength has 12 times more influence on retention and repeat purchases than Satisfaction. Satisfaction is a minimum expectation. 38 Step 1: VoC Research
    39. 39. VoC Learnings Question Answer Which is a more significant driver of word of mouth recommendations; Customer Satisfaction or Engagement/Relationship? Engagement/Relationship strength has 18 times more influence on word of mouth recommendations than Satisfaction. This has profound implications for re-allocating greater budget for Retention/ Relationship building. 39 Step 1: VoC Research
    40. 40. VoC Learnings “The fastest way to be forgotten is to buy from you.” “We buy. You disappear without a trace. Oh, except for the monthly bills.” “Relationship? You guys are about ‘buy and die’!” 40 Step 1: VoC Research
    41. 41. Smart Engagement 41 Step 1: VoC Research
    42. 42. Smart Engagement 42 Step 1: VoC Research
    43. 43. Another Powerful VoC Finding: Opportunity To Transform Your Marketing! Voiced by B2B and B2C customers and prospects Cited so frequently and clearly that we call this: Reciprocity of Value Equation 43 Step 1: VoC Research
    44. 44. Reciprocity of Value Equation: Recognition by consumers that to receive or access increasingly relevant information, they must provide information regarding their preferences. Applies to B2B and B2C. If they trust the brand and receive a useful value proposition, consumers will opt-in to sharing increasingly detailed preference information in exchange for the marketer’s promise to deliver relevant information and offers. This reframes data privacy concerns! Reciprocity seen as a valuable exchange of information which improves the customer experience. This information will constantly change, grow, and be enriched, through ongoing interactions with consumers. 44 Step 1: VoC Research
    45. 45. Reciprocity of Value Equation: As a result of these preference-based interactions, consumers are more willing to respond to communications and offers. This customer-driven information exchange results in uniquely accurate databases which consistently achieve 25% to 50% increases in revenue. 45 Step 1: VoC Research
    46. 46. Double-digit Results from Microsoft’s VoC-driven Customer Engagement Programs Opt-in rates up to 95%. Response rates performing in the doubledigits. Open rates greater than 50%. 46 Revenue 2x greater than the control. Step 1: VoC Research
    47. 47. Per VoC: Customer Experience Requirement # 2 Differentiate your company by providing personalized experiences, communications, and offers. 47 Step 1: VoC Research
    48. 48. Customer Experience Requirement #2: Per VoC findings, customers and prospects view personalization as the next step in a company’s commitment to service excellence. Personalization is viewed as a service and benefit, not just a sales tool. They also look to personalized follow-up emails as value-added triggers to go online and evaluate relevant products. Online shoppers view personalization as a necessary requirement for engagement. 48 Step 1: VoC Research
    49. 49. Customer Experience Requirement #2: BUT, consumers are very clear in defining personalization as much more than “those old-fashioned” transaction-based communications. Representative VoC research quotes: “I want more than just buying history-based emails”. “With today’s technology, I expect the experiences and emails to reflect my preferences”. 49 Step 1: VoC Research
    50. 50. VoC Learnings Customers who have shown an interest in Tools & Home Improvement might like to check out our top deals on top brands, as well as great gift ideas. “Communications should be relevant to my interests and preferences.” “Email may be the base of your communications with me, but I’m getting too much junk. If it’s really important, send it to me by mail.” 50 Step 1: VoC Research
    51. 51. Double-digit Results from Songza’s Personalized Music Concierge: Results since implementing VoC-driven personalized experiences: Retention has tripled. Monthly active users has tripled. Time on site has increased by 75% (from 40 minutes to over 70) Selected among TIME Magazine's 50 Best Websites of 2012 51 Step 1: VoC Research
    52. 52. Per VoC: Customer Experience Requirement # 3 Deliver on the expectations of improved customer experiences across every point of contact with your organization. 52 Step 1: VoC Research
    53. 53. 53 Step 2: Opt-In Engagement
    54. 54. Customer Experience Requirement #3: Today’s shopper is multi-dimensional; multi-channel and multi-purpose. Many report using multiple media, often at the same time. Per a recent VoC: "I take pride in being a smart shopper. I might see something on TV, or hear an ad on the radio. I’ll text some of my fellow FrugalMom$ friends to check it out. Then I’ll browse the website. If the item interests me, I’ll put it in my cart. When I’m finished browsing, I’ll print out the cart. Then, I call Customer Service to have them answer my questions, and place the order.” 54
    55. 55. VoC Learnings “Self-serve makes it easy for you, not the customer.” “Don’t just sell me the service. Provide ongoing value at key times.” “Email blasts do not equal ‘relationships’.” “The quality of your service is key to how we judge you.” 55 Step 1: VoC Research
    56. 56. VoC Insight re: Customer Service “The CSR had a great attitude and spoke as if she was smiling. Made me feel like this was my time and she would spend the time necessary. This told me a lot about the company”. 56 Step 1: VoC Research
    57. 57. Web “Call Me” Option Resulted in Great Service Experience This is Grace from Amazon. Thank you for giving me the chance to assist you today. I’ve created an authorized return label that may only be used for the return of this item. Follow the link below to print your mailing label. Also, I’ve waived the $8.99 shipping charge for your recent order, Order ID: 107-0409587-9302640 Did I solve your problem? YES NO 57 Step 1: VoC Research
    58. 58. Service as a Driver of Shareholder Value AmEx views Customer Service as a major driver of market valuation and shareholder value. “For every servicing transaction we ask, ‘How can we get the customer to feel better about American Express and recommend it to a friend?’. That’s a promoter.” “For a promoter…we see a 10% to 15% increase in spending and four to five times increased retention, both of which drive shareholder value.” Jim Bush, Customer Service Czar American Express Fortune, 4/19/12 58 Step 1: VoC Research
    59. 59. Per VoC: Customer Experience Requirement # 4 Provide high quality experiences throughout the customer lifecycle, (not just during Acquisition & Renewal). 59 Step 1: VoC Research
    60. 60. Customer Experience Requirement # 4: Per VoC, the Entire Customer Experience must be integrated. How effectively are you integrating each of these experiences? 60 Step 1: VoC Research
    61. 61. New Customer Onboarding: Per VoC, customers want MSC to learn their needs at the beginning of their Lifecycle.  VoC-based Onboarding Program: ♦ Show customers that MSC cares; they are more than “just a sale”. ♦ Take Step1 in the preference profiling process by determining what products, services, and communications are most relevant. ♦ Determine which channels will be most effective to deepen the relationship with each individual customer.  Results: ♦ 20% lift in response rates. ♦ Over 20% lift in revenue per customer. 61 Step 1: VoC Research
    62. 62. Post Sale Engagement…Sort Of: From: Ford <ford@email.fordvehicles.com> Reply-To: Ford <myford@customersupportctr.com> Date: Monday, September 9, 2013 10:35 AM To: Ernan Roman <ernan@erdm.com> Subject: Please verify your email subscription. As part of the Ford Motor Company family, we recently received your email address – and to help keep you informed we'd like to send you emails with news on the latest technologies, events, owner benefits, service coupons and more. Simply confirm that you would like to receive email updates and you'll be in the know. As part of the Ford Motor Company family, we recently received your email address – and to help keep you informed we'd like to send you emails with news on the latest technologies, events, owner benefits, service coupons and more. Simply confirm that you would like to receive email updates and you'll be in the know. 62
    63. 63. Wasted Opportunity to Learn My Preferences: Thank you! Your Ford Motor Company email subscription has been confirmed. Look for more emails in the future. Check out our vehicle lineups: See all the benefits of ownership: 63
    64. 64. 10 Insights to Gain from Your VoC Research 1. How to change from transactions to engagement based on a deep understanding of customer's needs. 2. The critical issues facing decision makers in this economy, as they evaluate your product or service. 3. How consumers identify the key steps in their decision making process. 4. What information and offers are most effective at each step, and via what mix of channels. 5. Who consumers identify as the decision makers and the empowered influencers. 64 Step 1: VoC Research
    65. 65. 10 Insights to Gain from Your VoC Research 6. How your customers define a value-added and competitively differentiating relationship with your company. 7. Effective value propositions for engaging customers in an Opt-In relationship, so they will trust you with their detailed self-profiled preferences. 8. What initial preference information will they provide and how can this be enriched/expanded in the course of progressive profiling. 9. The optimal role for: web, digital, email/mail, inside sales, field sales, tech, stores. 10. This information will populate your Opt-In database with uniquely accurate information. 65 Step 1: VoC Research
    66. 66. VoC Helps Transform Your Marketing… • From “CRM” and “managing” customers... which has had a high failure rate... • To “CMR” and “customerto managed” relationships. Per Disney: “The term ‘CMR’ reinforces the notion of the guest being the one who is driving the experience.” 66 Step 1: VoC Research
    67. 67. Transforming the Customer Experience A Case Study __________ Transforming the Customer Experience
    68. 68. MassMutual Retirement Services (MMRS) • • A division of MassMutual Life Insurance Company, Fortune 94. Leading provider of employer sponsored retirement plans including 401k, 403b, 457, pensions, etc. • • Help the American worker to be better prepared to fund their retirement. Distribute to employers through 3rd party financial advisors. Once the B2B sales process is complete, the product is available to consumers (employees). By the Numbers: • • • • • 3 million+ consumers (plan participants) 40,000 employer relationships Avg. consumer age = 42 Avg. consumer account balance = $43k Avg. savings rate = 5.50% ? Our mission is consumer retirement readiness, defined by their ability to generate 75% replacement income during retirement, so the American worker can retire on their own terms. How can we accomplish this? __________ Transforming the Customer Experience 2
    69. 69. Currently in a Position of Strength • Record plan sales for 4th year in a row – 15% sales increase year over year • Record plan retention, 96% – Industry average 91% • Record client satisfaction – highest in company history • Consumer communication & education experience ranked #1 by Financial Advisors So, what’s the value of a Voice of Customer (VoC) investment now? To sustain our competitive advantage! __________ Transforming the Customer Experience 3
    70. 70. Despite our efforts, the majority of Americans are not prepared to fund their retirement. Will not be retirement ready by age 67 On track for retirement (replacing 75%+ of current income) Will reach 60-80% only with social security included 76% can make adjustments now that will allow them to retire by age 67. __________ Transforming the Customer Experience 4
    71. 71. Abundance of quantitative data, but it’s not driving real change Here’s why: • Various interpretations of the same data • Questioning the sources/methodology • “Yeah, but our customers/we are different” • Not providing in-depth insight regarding what is not optimal and how customers want us to improve __________ Transforming the Customer Experience 5
    72. 72. Consumers needs are changing faster than ever before. Are we prepared to meet them? Consumer Debt Personal Savings __________ Transforming the Customer Experience 6
    73. 73. So, why do a VoC program? •• We want to do better for our customers We want to do better for our customers •• Answer “why/how?” questions Answer “why/how?” questions •• Qualitative vs. Quantitative Insights Qualitative vs. Quantitative Insights •• Test ideas prior to any investment Test ideas prior to any investment •• Actionable in-depth guidance Actionable in-depth guidance •• Protect our market leadership position Protect our market leadership position Things to consider before launch: • Include the right stakeholders, get buy-in • Internal or external execution • Interview length, sample size • Sample mix, does it mirror your customer base/target markets. • Difficulty and cost of recruiting • Customer Data…it’s never as good as you think. __________ Transforming the Customer Experience 7
    74. 74. The VoC Process Determine Determine objectives objectives Develop key Develop key questions questions Set budget and Set budget and timeline timeline Determine your Determine your audience audience Conduct interviews Conduct interviews Analyze findings Analyze findings to identify to identify strategy/action strategy/action plan plan __________ Transforming the Customer Experience 8
    75. 75. The VoC Objectives Determine barriers for retirement planning at various ages Why are Why are workers not workers not prepared? prepared? Learn what tools, services, and information would make financial literacy and action easier. Find out how consumer segments define deeper relationships with MassMutual at key points in their lifecycle. What else can What else can we do to help? we do to help? How do we create How do we create a customer for a customer for life? life? __________ Transforming the Customer Experience 9
    76. 76. Three VoC Research Efforts to date Distribution Distribution Channel Channel (163 Interviews) (163 Interviews) B2B B2B Decision Decision Makers Makers (107 (107 Interviews) Interviews) Consumer Consumer (156 Interviews) (156 Interviews) __________ Transforming the Customer Experience 10
    77. 77. Selecting Your Audience Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 18-34 35-54 55+ 18-34 35-54 55+ Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days Status Employed Employed Employed Employed Employed Employed 10 10 10 10 10 10 Group 7 Group 8 Group 9 Group 10 Group 11 Group 12 18-34 35-54 55+ 18-34 35-54 55+ Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days • How does that align to our sales Status Total strategy? Employed Employed Employed Employed Employed Employed 8 8 8 8 8 8 Group 13 Group 14 Group 15 Group 16 Group 17 18-34 35-54 55+ 35-54 55+ Tenure • By product line, demographic? 1-2 years ~5 years ~10 years Tenure N/A N/A Status Employed Employed Employed Status Terminated 7 8 7 Terminate d 13 13 Consumer Corporate (156 Interviews) Age Total Hospital • Who is our existing customer? • How many? • Any 3rd party considerations? Age Union Age Total Terminated Age Total • Incentives? • How good is the data? __________ Transforming the Customer Experience 11
    78. 78. Develop Key Questions Key VoC Question Funnels • Limit to major topics to allow for in-depth probes & discussion within the 60 minutes. • Develop/Review Interview Guide. • Evolve based on learnings. __________ Transforming the Customer Experience 12
    79. 79. Conduct Interviews • 156 one hr. interviews. • All by phone with a professional interviewer. • Interviews recorded; “best of” listened to by management team. • Debriefs for strategy ideas and revised areas for probing. __________ Transforming the Customer Experience 13
    80. 80. Key Learnings Our customer service experience is very positive. Our customer service experience is very positive. Overall engagement is low. Overall engagement is low. Customers want more proactive and customized Customers want more proactive and customized communications. communications. Segmentation by needs and life stage, is relative to the support Segmentation by needs and life stage, is relative to the support and guidance they expect from MM. and guidance they expect from MM. Few customers were adequately prepared for retirement. Few customers were adequately prepared for retirement. __________ Transforming the Customer Experience 14
    81. 81. VoC Driven Action Items Based on VoC learnings and specific customer suggestions, the recommended action steps address communications and programs through key life stages. __________ Transforming the Customer Experience 15
    82. 82. Step 1 VoC-Based Enrollment/Transfer Process Offer more educational assistance to customers during the enrollment/transfer process, as some have trouble understanding even the basics of asset allocation and selecting a savings amount. Conducting a Needs Assessment will help to target appropriate lifestage information and education. CRM target appropriate set of customers Making the enrollment/transfer process as inviting, memorable and user-friendly as possible will be key, and customers offered specific suggestions to help. Providing an overview of the “Next Steps” process during this initial phase will better prepare them. __________ Transforming the Customer Experience 16
    83. 83. Step 2 VoC Insight Interacting shortly after enrollment will “make me feel like they care whether or not I’m their customer.” A New Customer Welcome concept was tested, and respondents’ feedback greatly enhanced it. New Customer Welcome Program Initial scheduling call Customers Customers wanted to be able wanted to be able to schedule aacall to schedule call to ensure to ensure convenience and convenience and give them time to give them time to prepare. prepare. “Meeting” with MassMutual rep Customers Customers wanted to specify wanted to specify how they “met” how they “met” with MM: via with MM: via phone, online phone, online chat, text, email, chat, text, email, or even Skype. or even Skype. Follow-up Information Customers Customers reported that they reported that they would appreciate would appreciate having written having written materials for materials for reference. reference. On-site, inperson visits Customers Customers wanted to be able wanted to be able to meet in aagroup to meet in group setting, followed setting, followed by the option to by the option to meet individually. meet individually. __________ Transforming the Customer Experience 17
    84. 84. Step 3 VoC Insight Most customers would welcome occasional touches by MassMutual. These touches should focus on offering education and information about their accounts, MassMutual processes and policies (i.e. how to change their savings amount) and retirement planning. Proactive, Ongoing Customer Touches MassMutual must offer multiple levels of educational assistance in a variety of formats. Retirement 101 Retirement 201 Intro to your retirement Webinars Help reading statements __________ Transforming the Customer Experience 18
    85. 85. Step 4 VoC Insight Lack of engagement with both MassMutual and their retirement planning is a considerable barrier for customers. Reaching out annually with an offer of a personal meeting will help break through the inherent apathy and forge a stronger connection between MassMutual and its customers. It will also remind customers, at least annually, about MassMutual and their retirement account. Annual Review/Anniversary Program Representatives will offer to meet to: •Review the last year’s performance. •Set goals for the upcoming year. •Answer any questions. •Offer help with consolidating other plans. •Update their needs assessment and preferences. •Remind them there is a “Next Steps” (Terminated) Plan. This program was recommended by customers during the VoC. It was validated and refined in real time during the balance of interviews. __________ Transforming the Customer Experience 19
    86. 86. Step 5 VoC Insight Respondents no longer with the company that initially provided their retirement plan reported being very confused about what they were supposed to do during the transition. Many cited feeling “lost” and “alone” and unsure about what to do with their account. This is a significant opportunity to cement a relationship with customers who find themselves at a critical, emotional time, perhaps looking for a helping hand to guide and reassure them. Providing support will deepen engagement and create a connection to MassMutual. “Next Steps” (Terminated) Plan Initial scheduling call Allow the Allow the customer to customer to schedule aa schedule meeting at meeting at their their convenience convenience “Meeting” with MassMutual rep Follow-up Information Customer Customer should be able should be able to select the to select the channel they channel they prefer: phone, prefer: phone, Skype, online Skype, online chat, etc. chat, etc. Send aa Send summary of summary of the meeting the meeting for reference. for reference. __________ Transforming the Customer Experience 20
    87. 87. Post VoC Implementation Example – The SMARTVIEW •• Mock talk show with a cast of 3 Mock talk show with a cast of 3 discussing personal financial issues discussing personal financial issues •• More humorous than serious More humorous than serious •• Provided actionable takeaways Provided actionable takeaways MassMutual’s Smart View Webisode Email Pilot •• Season 1: 9 episodes over 18 weeks Season 1: 9 episodes over 18 weeks •• Season 2: Starting September 2013 Season 2: Starting September 2013 __________ Transforming the Customer Experience 21
    88. 88. Post VoC Opt in Email Pilot By opting-in, participants receive proactive communication when new episodes are ready. Results: Opt-in vs. Control Group 94% 1,062% Zero 100% Higher open rate Higher video views Unsubscribes Deliverability __________ Transforming the Customer Experience 22
    89. 89. How We Segment Our Customers PAST One size fits all PRESENT Persona based FUTURE 3 million 3 million One-on-one __________ Transforming the Customer Experience 23
    90. 90. Improving Customer Experiences 360° View Targeting for Relevancy and Engagement 34 Years Old 34 Years Old Age Groups: 3 Gender: 2 Attitude: 3 Behavior: 5 Product Mix: 7 Preferences ∞ Female Female 6 18 Unsure Unsure 90 401k 401k ∞ ∞ Attended ‘Gen Y’ Attended ‘Gen Y’ Webinar Webinar Call Center Call Center __________ Transforming the Customer Experience 24
    91. 91. Holistic Process Customer Customer Provided Data Provided Data Preference Preference Customer Customer Service Service for Scaling CEM Customer Customer Intelligence Intelligence & Analytics & Analytics CRM Sales Channel Sales Channel Integration Integration Personalized Personalized Communication Communication Events and Events and Webinars Webinars Personalized Personalized Web Web Experience Experience __________ Transforming the Customer Experience 25
    92. 92. Preference Driven Integrated Multi-Channel Experience Postcards Phone Calls Web Banners Group Meetings Marketing Tools Webinars Transactional Mailings Preferences (Targeting Filter) Higher Engagement Better Outcomes Emails __________ Transforming the Customer Experience 26
    93. 93. 3 Customer Experience Action Items • Measure and test everything. Customer outreach should be at the frequency and in the channel your customers prefer. • Set up organized “listening posts” with client facing areas of the business for real time voice of the customer feedback. • Analyze how you are onboarding (welcoming) your new customers. Invest in this touch, it may end up saving you long term. __________ Transforming the Customer Experience 27
    94. 94. Thank You __________ Transforming the Customer Experience 28
    95. 95. Your Top 3 Takeaways? 1. 2. 3. 95 Step 1: VoC Research
    96. 96. Step 1: VoC Research How to Use Voice of Customer (VoC) Insights to Drive Your Customer Experience Strategies Step 1: Summary 4 Steps in the VoC-driven Customer Engagement Marketing Process: 1.Use Voice of Customer Research to Truly Drive Your Engagement Strategies 2.Create Powerful Opt-In Databases to Drive High Impact Personalization Strategies 3.Use the 5 Principles of Multichannel Marketing 4.Increase the Power of Your Online and Digital Media Marketing. Step 1: VoC Research 96
    97. 97. Step 1: VoC Research How to Use Voice of Customer (VoC) Insights to Drive Your Customer Experience Strategies Step 1: Summary VoC-insights help you transform your marketing from “CRM” and “managing” customers to “CMR” and “customer-managed” relationships. Use VoC research to help you understand and pre-test how to change from a relationship based on just transactions to a deeper engagement based on a broader understanding of customer needs. Use VoC to engage customers to Opt-In and self-profile their preferences. This information will populate your Opt-In database with uniquely accurate information. 97 Step 1: VoC Research
    98. 98. Step 2: Create Powerful Preference-Based Databases With Customer’s Self-Profiled Information. Drawing for 2 Autographed Books: 98
    99. 99. Step 2: Create Powerful Preference-Based Databases With Customer’s Self-Profiled Information Step 1: VoC Research 99 Step 2: Opt-In Engagement
    100. 100. Eric Holtzclaw Vice President & General Manager PossibleNOW Preference Management Consulting Org. Eric V. Holtzclaw, Vice President and General Manager of PossibleNOW’s Preference Management Consulting Organization, has spent 20+ years creating opportunities through the practical application of emerging technologies and trends to business. Eric Holtzclaw Vice President & General Manager PossibleNOW Preference Management Consulting Org. Eric leads a multi-disciplinary team of seasoned experts that advise the world’s leading brands on strategic investments in technology, compliance oversight and operational best practices to maximize investments made in marketing and customer experience. Eric's book, Laddering: Unlocking the Potential of Consumer Behavior, is scheduled for release in July, 2013 and his column, Lean Forward, on entrepreneurship and emerging trends appears weekly on Inc.com. eholtzclaw@possiblenow.com www.possiblenow.com 100 Step 2: Opt-In Engagement
    101. 101. Traditional “Spray and Pray” Marketing Isn’t Working So Well… 101 Step 2: Opt-In Engagement
    102. 102. Creepy or Helpful? Hey, we noticed you looking at digital cameras on Amazon.com and thought you might be interested in today’s Woot deal: 102 Step 2: Opt-In Engagement
    103. 103. Simple Web Visit Leads to Email & Phone Harassment… I hope that you don’t view my persistence as being pushy. 103 Step 3: Multichannel Marketing
    104. 104. Opt-Out is the US Standard • More than 76% of U.S. adults have registered for the National Do-Not-Call (DNC) Registry (Harris Interactive). Average Presidential election voter turnout: 50% • As of 9/13, over 221 million phone numbers listed on the DNC. Twelve million new numbers registered over the last 18 months. • The DMAChoice mail opt-out program has served over 12 million consumers over the past 15 years. • In the 1st year, 1 million consumers opted out via the Digital Advertising Alliance’s AdChoices Icon, on behaviorally-targeted ads. • Pending Canadian law: electronic commercial messages, including email, texts, and messages via social media, going to, through, from Canada without prior consent, could bring severe penalties. • Italian government banned all unsolicited mail, phone, e-mail, NY Times 4/29/12 fax, mobile communications without affirmative consent. 104 Step 2: Opt-In Engagement
    105. 105. Empowered consumers are questioning why the Opt-Out burden is on them... versus marketers competing to engage them with value propositions that motivate them to Opt-In Unfortunately, Opt-Out marketing policies are the norm. They allow marketers to send offers and use on-line information to target their marketing. Frustration is growing. The message: If you don’t like these practices the burden is on you to Opt-Out. On 8/9/12, the FTC fined Google $22.5 mill. for Safari privacy violations. Largest FTC civil penalty, “…if you’re going to hold people’s most private data, you have to …honor privacy commitments” Bur. Cons. Protection 105 House re Verizon; "While we understand the benefits of tailoring advertising to customers, we believe that they should be in control of the sharing and disclosure of their personal information through an Opt-In process.” Step 2: Opt-In Engagement
    106. 106. The Alternative… Powerful and Socially Responsible Opt-In Relationships Respect customers and prospects. Ask them to define their individual requirements in response to meaningful value propositions. As a result, they will populate your database with uniquely detailed, actionable information. 106 Step 2: Opt-In Engagement
    107. 107. Important! Opt-in is not about passively agreeing to receive email. It’s about actively opting-in to a relationship and self-profiling your preferences and aversions. 107 Step 2: Opt-In Engagement
    108. 108. VoC Learnings Advice from C-Level Executives •“You think because I’m the CIO, you have to send all your marketing communications to me. That’s not how decisions are made here.” •“You’re using me as an executive mailroom and I don’t appreciate it.” •“It’s in my interest to tell you who you should communicate with, what information they need, when and via what medium.” 108 Step 2: Opt-In Engagement
    109. 109. Privacy Must be Honored 109 Step 2: Opt-In Engagement
    110. 110. Complex Privacy Settings 110 Step 2: Opt-In Engagement
    111. 111. The Ever-Expanding Privacy Policy In the last five years, Facebook’s privacy policy has grown to 5,830 words today, from 1,004 in 2005. In addition, Facebook offers an in-depth Privacy FAQ page, with 45,000 words. 111 Step 2: Opt-In Engagement
    112. 112. The Opt-In Process 1. VoC learnings drive strategies for customer engagement so they Opt-In to a deeper level of engagement. 2. Customers profile: needs, decision making process, offer, message, timing and media preferences. This detailed information builds your uniquely accurate preferences database. 3. Customers are actively engaged in contributing to, and defining their relationship with your company. 112 Step 2: Opt-In Engagement
    113. 113. The Opt-In Process 4. Per VoC Research, Opt-In is based on Reciprocity of Value: • • If they trust the marketer and see a useful value proposition, consumers will opt-in to sharing increasingly detailed personal preference information in exchange for the marketer’s promise to deliver relevant information and offers. • 5. Recognition by consumers that in order to receive or access increasingly relevant information, they must share increasing amounts of information regarding their preferences. As a result of these interactions, consumers are more likely to open, engage with, and respond to, communications and offers. Without this preference data, true personalization driven marketing cannot happen. Traditional transactional data is not enough! 113 Step 2: Opt-In Engagement
    114. 114. Keep in Mind. . . This Process Requires: Operational precision in managing offers and communications per individual customer requirements. Challenging to implement! 114 Step 2: Opt-In Engagement
    115. 115. 5 Ways to Earn Consumer Opt-In Results from 130+ VoC research efforts conducted by ERDM indicate that consumers have 5 criteria for determining whether to Opt-In to sharing in-depth information: 115 Step 2: Opt-In Engagement
    116. 116. Case Study VoC-Driven Small Business Relationship Marketing Program 116 Step 2: Opt-In Engagement
    117. 117. A majority of Microsoft sales in the SMB segment come through a channel partner (Value Added Reseller, Retailer, OEM). Customers feel they have no relationship with Microsoft. SMB customers are mostly transactional; gather information, trial, purchase, and disengage. Previous Small Business VoC indicated that most customers would welcome a relationship with Microsoft. Microsoft Hence the need for a relationship program. 117 Step 2: Opt-In Engagement
    118. 118. As a result of the first Small Business VoC, Microsoft 6 digit developed the SB+ Relationship Program. membership 3.7x more responsive SB+ Relationship Marketing Opt-Ins 1.3x more revenue 20 points more satisfied 118 Step 2: Opt-In Engagement
    119. 119. How to Approach the Diverse SMB Segment? Based on the success of SB+, Microsoft wanted to scale to midmarket companies (size: 100-150 employees) . Key questions Program Goals •Will the online resource appeal to •Increase customer satisfaction scores. midmarket IT and business decision makers? Will they opt-in? •Increase licensing renewal rate. •Improve customer engagement. •What are key enhancements that can help deepen customer engagement? •Deliver the most relevant content and •Can results continue to exceed •Improve marketing efficiencies. communications. results of house file? 119 Step 2: Opt-In Engagement
    120. 120. VoC Helped Answer Key Questions For 1-500 employees, what type of training, support, community and communication can drive deeper engagement? How to improve the value and usage of training. How to improve the support offerings to provide greater value. How customers define a value-added community. How the communications strategy should be improved. 120 Step 2: Opt-In Engagement
    121. 121. VoC Learnings Relationship Program Value Must Be Obvious and Differentiated Make it easy Keep it focused Deliver ‘wins’ Must provide easy site navigation. Online Resource Center (ORC) value: Use lay terms and user friendly (non-tech) key word searches. One stop, convenient resource for SMB customers. Make the initial interactions engaging by offering a ‘quick training.’ Provide access to information and business solutions from every part of Relationship Program. Clearly different from other resources. Every facet of the user experience 121 must prove this. Help users by providing industry, business and technology info. Partner with nonMicrosoft experts for valuable content. Step 2: Opt-In Engagement
    122. 122. Learnings Personalize the Experience Per Business Needs, User Level, Size, Industry and Products Focus on needs Develop from the user’s perspective, not Microsoft’s. Request user feedback at every touch point. Use feedback to evolve the experience, provide relevant content/ communication. Support Alleviate pain by using simple terms as self-help key words. Highlight common problems and provide quick access to solutions. Leverage peers for additional support. 122 Satisfy Different Needs Target content based on start-up, segment, business needs and user level. Offer ways for three different user types (Learners, Connectors, Collaborators) to engage. Step 2: Opt-In Engagement
    123. 123. Learnings Tie Training, Support and Community Into a Differentiating Relationship Training Support As a key benefit, users should be introduced to training early on. Alleviate pain by using simple terms as self-help key words. Follow-up training to encourage the next ORC interaction. Highlight common problems and provide quick access to solutions. Offer userdefined categories for easy access. Leverage peers for additional support. 123 Community Peer interaction must be facilitated across a variety of demographic and business areas. Points of interaction: Level of knowledge. Common problems. Forums. SMEs/Moderators. Step 2: Opt-In Engagement
    124. 124. Launched the Microsoft Business Resource Center 124 Step 2: Opt-In Engagement
    125. 125. The Value of Opt-In Preferences Asked 14 questions, such as: FUTURE: Apply a progressive profiling strategy, reducing the need to ask all questions at once. Keep improving the relevance of questions and the value exchange. Opt-In Profile Name Email Primary role in company (i.e. Sales, Marketing, Finance) Microsoft software usage/ownership Value Exchange Relevance Customers actively engage expecting Opt-in data will help something of equal value in return. achieve greater relevance, marketing efficiency, and increased lifetime value. Number of employees Industry Primary customer business need What is the biggest challenge facing their organization today? Number of PCs Number of servers 125 Step 2: Opt-In Engagement
    126. 126. SMB Relationship Program At-a-Glance For Customers: For Microsoft: Personalized service Preferences Customized information Ease of use Relevance Relationship desk Tier 1 Trigger-based database e-marketing Click/usage behavior Purchase intent Cross-sell opportunities Tier 2 Web: Business Resource Center Newsletter Tier 3 126 Step 2: Opt-In Engagement
    127. 127. Web Resource: Microsoft Business Resource Center Overview Personalization cue Personalized Experience • Telephone customer service • • • • • (Tier 1 & 2 only) Support  Free online chat tech support Training  Software training and computer-based I own/use training is key Dynamics, Office Community Library (information) Training for Dashboard Phone # unique for Tier 1 and 2 Communities recommended, Dynamics, Vista I’m a volume license customer Office Articles, tips for me. OV, APO 127 Step 2: Opt-In Engagement
    128. 128. Customized Communications Customized communications based on opt-in data •Welcome e-mail •Monthly personalized e-newsletter •Ongoing e-mails 128 Step 2: Opt-In Engagement
    129. 129. Benefits of the Reciprocity of Value Exchange Customer Benefits Microsoft Benefits •Opt-in profile information drives •Personalized service •Customized communication relevance in web site content and communications and information •Ability to analyze click and usage •Ease of use •Relevance behavior •Improved Marketing ROI: • 129 Cross-sell/upsell opportunities Step 2: Opt-In Engagement
    130. 130. Results RM Opt-in rates up to 95% Open rates greater than 50% Response rates performin g in the doubledigits Receiving very positive customer feedback RM customer volume license renewal rate is 8 points higher than nonRM customers 130 Volume license revenue from those in the VoCdriven program is 2x greater than the control Step 2: Opt-In Engagement
    131. 131. Case Study Today’s Customers Expect Preference-based, Personalized and Relevant Experiences 131 Step 2: Opt-In Engagement
    132. 132. Introduction • Today’s discussion is about: The extra dimension of proactive, relevant, and personalized engagement customers want. ♦ Customer’s recognition that in order to receive highly personalized experiences, they need to provide increasingly detailed information to drive the personalization. ♦ How Norton consumers define the Personal Data Reciprocity of Value Equation. ♦ Trust as a prerequisite for this level of engagement, and how customers today define the elements of trust. ♦ 132 Step 2: Opt-In Engagement
    133. 133. marketing performance and customer value Delivering Customer Centric Engagements Two-way and cross-channel Integrated data, channels and technology Target customer groups and personalise “Spray & Pray” sophistication in capabilities © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 133 Source: CACI, 2012 Step 2: Opt-In Engagement
    134. 134. What is the value of permission? Over 40% of respondents said they want to be rewarded for sharing their personal data Source: Aimia Survey, 10/05/2011 © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 134 134 Step 2: Opt-In Engagement
    135. 135. It’s no longer “nice to have” • • • • Customers expect that you will obtain permission before you use their information. This expectation is amplified if they are paying for the product or service. We tend to think that we have the answers and customers naturally want to hear what we have to say… Are we really listening…or just talking? © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 135 Step 2: Opt-In Engagement
    136. 136. About Norton • • Norton protects the Stuff that matters to consumers, across all aspects of their digital lives. Norton provides a range of security solutions including technologies for PCs and mobile devices, live tech support services and online backup. • • • • • Significant number of customer touch points 135+ million active users #1 consumer online backup provider $2+ Billion in annual revenue Shipping on 60%+ of Windows-based consumer PCs © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 136 Step 2: Opt-In Engagement
    137. 137. How do you get customers to opt in? You can’t ask a customer “do you want to receive more emails?” And, given that Norton is a provider of pop-up and spam prevention, we can’t annoy, at any cost. Can you? We need to listen to the customer to determine requirements. © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 137 137 Step 2: Opt-In Engagement
    138. 138. Reciprocity of Value Key Takeaway This reframes data privacy concerns! Reciprocity seen as a valuable exchange of information which improves the customer experience. This information will constantly change, grow, and be enriched, through ongoing interactions with consumers. Source: “Voice of the Customer Marketing” Ernan Roman © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 138 Step 2: Opt-In Engagement
    139. 139. Listening powered by customer signals Outbound • E-Mail • Desktop Messaging • In Product Messaging Inbound • Support (calls, web, chat) • eCommerce • Websites © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 139 Step 2: Opt-In Engagement
    140. 140. VoC Research • Norton approach: ♦ ♦ ♦ • Phase 1: ♦ • 2 Phases Engage in one-on-one in-depth interviews to dive into details Run quantitative surveys to identify and fine tune statistical significance In-depth qualitative interviews across segments, (80 interviews) Phase 2: ♦ Quantitative customer surveys (1-2K) across segments © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 140 Step 2: Opt-In Engagement
    141. 141. Phase 1 VoC Research Summary Methodology Objectives • How different customer segments define deeper relationships • 80 in-depth hour-long interviews across key segments, purchase channel, and product value (NAV vs. NIS /N360) • Expectations and requirements to drive willingness to Opt-In • Gain customer-driven understanding of customer experience that will be perceived as personal and relevant • Self-profile preferences based on expectations of increasingly relevant communications and offers. • Customer receptiveness to proactive personalized outreaches • Will follow with quantitative survey Retail © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 141 Online Step 2: Opt-In Engagement
    142. 142. VoC Findings © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 142 Step 2: Opt-In Engagement
    143. 143. A reinforcing cycle built on trust • Trust is the foundation and basis for obtaining deeper engagement with customers. • Trust opens customer to Reciprocity of Value: a meaningful exchange of value. • For pertinent value, customers are motivated to provide opt-in and a wide range of Preferences for receipt and suppression of information. • These preferences enable Personalization that delivers the targeted and relevant communications customers requested. • The improved Customer Experience reinforces trust which enhances trust. • Which will motivate them to provide additional information, thereby engaging them in a deeper level of Reciprocity . . . and the cycle continues. © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 143 Step 2: Opt-In Engagement
    144. 144. Trust • • Research identified four dimensions of trust that build upon each other. Key areas to build trust: ♦ Alleviate privacy concerns by explaining the reasons behind data requests. ♦ Multiple assurances of the privacy of their data and Symantec’s commitment to keeping their information safe. ♦ Receiving only the information they are interested in, based on their specified preferences. © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 144 Step 2: Opt-In Engagement
    145. 145. Preferences In addition to “standard preference” settings, customers had had remarkably specific preferences… © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 145 Step 2: Opt-In Engagement
    146. 146. An integral part of the broader journey • • Learnings from the VoC are key to shifting from transactional communications. Combined with infrastructure and customer signals (the triangle), we expect to deliver on our goals: ♦ ♦ Collect preferences and permissions Deploy truly personalized communications. 146 © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 146 Step 2: Opt-In Engagement
    147. 147. Parting thoughts • The three “pillars” are integral to delivering customer expectations ♦ Must be done together to achieve and sustain trust. • Must change thinking ♦ From “how does this benefit us?” to “how does this benefit the customer?” © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 147 147 Step 2: Opt-In Engagement
    148. 148. 4 Actions… • Customer insights are a privilege, not a right. • Trust is easily lost, but hard to gain, especially when • • dealing with personal information and relationships. Don’t ruin the hard fought gains for short-term bookings. Remember that customer delight results in customer loyalty, advocacy, and sales. © 2012, No reproduction, reuse, or distribution without the explicit written consent from Symantec 148 148 Step 2: Opt-In Engagement
    149. 149. The Art of Listening to Your Customer Eric V. Holtzclaw @eholtzclaw 149
    150. 150. 150
    151. 151. 151
    152. 152. Allow customers It would be nice to get my newsletter in the mail. to control the message I would like to receive news on Facebook. I wish I could receive offers through email. 152
    153. 153. “Just Ask” your customer “I love getting these “Please don’t send daily deal emails.” me text messages.” “I would like to hear about your other products.” of consumers say companies should let them decide how they can contact them. 153
    154. 154. Take advantage of different channels for different programs. 154
    155. 155. Only ask for what you need. 155
    156. 156. Only ask for what you need. 156
    157. 157. Only ask for what you need. 157
    158. 158. Use it to learn. 158
    159. 159. Centralize customer data across the organization. 159
    160. 160. Allow your customer to correct the conversation. 160
    161. 161. BONUS Compliance 161
    162. 162. Preference Centers Past & Future 162
    163. 163. Opt-in / Opt-out 163
    164. 164. Opt-down 164
    165. 165. Multi-Channel 165
    166. 166. Support Social-Media 166
    167. 167. Support All Customer Touchpoints 167
    168. 168. Take Advantage of All Communications 168
    169. 169. Take Advantage of All Communications 169
    170. 170. 170
    171. 171. Eric V. Holtzclaw @eholtzclaw Questions? 171
    172. 172. Additional VoC Lessons Opt-In Preference-Based Personalization as a Competitive Differentiator 172 Step 2: Opt-In Engagement
    173. 173. Even among loyal customers, expectations of marketers have changed due to: Tough economy Growth of many appealing online and offline options: The bar has been raised dramatically for online and offline marketers: •Good customer service is expected and is a powerful competitive differentiator. •Increased expectations for value at competitive prices. •Better shipping and handling terms. •Personalized offers and experiences based on their individual interests: 173 Step 2: Opt-In Engagement
    174. 174. As a result, customers and prospects view personalization as the next step in a company’s commitment to service excellence. • Personalization is viewed as a service and benefit, not just a sales tool. • Online shoppers view personalization as a 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! 174 Step 2: Opt-In Engagement
    175. 175. Meaningful Personalization • Customers want personalization to be more than just transaction-based. 175 Step 2: Opt-In Engagement
    176. 176. Safeway: Multichannel Personalization • • 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 means they get a better price for a product they want”. Safeway employee signing up a shopper for custom offers. New York Times 8/9/12 176 Step 2: Opt-In Engagement
    177. 177. Your Top 3 Takeaways? 1. 2. 3. 177 Step 2: Opt-In Engagement
    178. 178. Step 2: Opt-In Engagement Step 1: VoC Research Create Powerful Preference-Based Databases With Customer’s SelfProfiled Information Step 2: Summary Opt-in is not about passively agreeing to receive email. It’s about actively opting in to a relationship and selfprofiling your preferences and aversions. Your VoC-based opt-in database should include at least, the following information regarding individual’s: •Needs •Decision making process •Offer •Message •Timing •Media Preferences. Set as your goal: Opt-In rates ranging from 80% to 95%. 178 Step 2: Opt-In Engagement
    179. 179. Step 2: Opt-In Engagement Step 1: VoC Research Create Powerful Preference-Based Databases With Customer’s SelfProfiled Information Step 2: Summary Five Ways to Win Consumer Confidence: 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 to third parties. 3.“Honor my preferences” reflects the expectation that their “Opt-In” self-profiled preferences will be used to drive increasingly targeted communications and offers... and suppress those that are not relevant. 179 Step 2: Opt-In Engagement
    180. 180. Step 2: Summary 4. Create Powerful Preference-Based Databases With Customer’s SelfProfiled Information The value consumers receive in exchange for providing preference information must be obvious and compelling. Consumers must see an obvious improvement in relevance. This expectation of relevance applies both to their online and offline experiences. 5. Consumers must see ongoing proof that the company will be able to deliver on requirements 1 through 4 above, not just once, but consistently over time. 180 Step 2: Opt-In Engagement
    181. 181. Workshop Agenda • Sunday, 10/13: Part 3; 10:30 - 11:20 ♦Step 3, How to Use the 5 Principles of Multichannel Marketing ♦Speakers: Ernan Roman, President, ERDM Douglas Stein, President, HMS National Lunch: 11:20 - 12:50 Part 4; 12:50 - 1:50 Step 4, Increasing the Relevance and ROI of Your Online and Social Media Marketing ♦Speakers: Ernan Roman, President, ERDM Bob Nanna, Marketing Manager, Threadless 181
    182. 182. Drawing for 2 Autographed Books: 182
    183. 183. Step 3: How to Use the 5 Principles of Multichannel Marketing Step 2: Opt-In Engagement Step 1: VoC Research Step 3: Multichannel Marketing 183 Step 3: Multichannel Marketing
    184. 184. Douglas Stein President HMS National Douglas Stein is a respected industry leader with a reputation for creating effective marketplace strategies and generating significant business growth. Douglas Stein President HMS National As president of HMS, he is responsible for driving B2B/B2C marketing and sales success. He has been instrumental in positioning HMS as the warranty of choice for millions of homeowners, and as a valuable business partner to the most well-respected real estate companies. Doug led VOC-inspired loyalty efforts that helped earn HMS the coveted Echo Award from the DMA in 2012. He is a compelling public speaker and has presented on customer insights and marketing strategies at numerous conferences. dstein@hmsnational.com www.hmsnational.com 184 Step 3: Multichannel Marketing
    185. 185. Multichannel Marketing Online and offline are inseparable. Must encompass: Message Media mix Organization And…the Customer Experience Entire Customer Experience must be integrated: • • • • • Acquisition Conversion On-boarding Retention Renewal Employee Customer Experience must be integrated: • • • Performance metrics Compensation Training 185 Step 3: Multichannel Marketing
    186. 186. Multichannel Marketing Online and offline are inseparable. Must encompass: Message Media mix If Integration is so logical…why are so few doing it well? • • • Turf Politics Fear of change How can you be the agent of change? Organization And…the Customer Experience 186 Step 3: Multichannel Marketing
    187. 187. Let’s Define “Multichannel Relevance” 1. Right message. “Per the DMA, 93% of marketers using multiple channels have attempted to integrate their messaging. 2. Right time. 3. Right person. 4. Right media mix. 5. Delivered per individual’s preferences. Only 27.4% of these said their efforts are ‘effective’. . .” DMA Report, “Rowing as One: Integrated Marketing Today,” 4/11 Without #5, all we have achieved is. . . 187 Integrated, multichannel irritation! Step 3: Multichannel Marketing
    188. 188. Multichannel Marketing Requires precision timing and synchronization of both online and offline. Must be accessible everywhere and any time. Per individual’s opt-in preferences. . . IDM® is a registered trademark of Ernan Roman Direct Marketing. 188 Step 3: Multichannel Marketing
    189. 189. 5 Principles of Multichannel Marketing 5 4 3 2 1 1: Start with the Customer (VoC). 189 Step 3: Multichannel Marketing
    190. 190. Per VoC Findings Today’s shopper is multi-dimensional; multi-channel and multi-purpose. Many report using multiple media, often at the same time. Alert! The channel used for the purchase is often not indicative of their shopping habits. Most use multiple media to shop, and often, to purchase. 190 Per a recent VoC: A customer described how she likes to watch the TV shows while browsing the website. As she finds items to purchase, she puts them in her shopping cart, prints it, and… calls Customer Service to place the order. Step 3: Multichannel Marketing
    191. 191. “. . . Multichannel customers spend two to three times more than single-channel shoppers. . . Consumers who engage with the company across three or more channels spend six times more than the average customer.” Glen Senk, CEO of Urban Outfitters 191 Per VoC; preference based multichannel communications are a competitive differentiator. “If I got the information that focused on the stuff I was interested in, it would be easier than sorting through all their products. It would be so much faster, more convenient and make my shopping easier.” Step 3: Multichannel Marketing
    192. 192. 5 Principles of Multichannel Marketing 5 4 3 2 1 2: Capture feedback from your digital / social channels and your sales / service reps. This will provide ongoing qualitative and quantitative VoC guidance. 1: Start with the Customer (VoC). 192 Step 3: Multichannel Marketing
    193. 193. VoC Guidance from CSRs • • Based on VoC feedback from CSR’s, Nordstrom’s upgraded their website and inventory integration so any item in any store (not just warehouses) is shown on their website and shipped to the customer’s nearest store, with a notice to the customer. Results: ♦ ♦ 8% higher sales. ♦ Fewer markdowns. ♦ Better inventory control. ♦ A boost to customer loyalty. ♦ 193 Immediate customer adoption. More add-on store sales. Step 3: Multichannel Marketing
    194. 194. 1. Enter your search criteria 194 Step 3: Multichannel Marketing
    195. 195. 2. Select your item and method of delivery 195 Step 3: Multichannel Marketing
    196. 196. 3. Select your location for pick-up or have it shipped! 196 Step 3: Multichannel Marketing
    197. 197. 5 Principles of Multichannel Marketing 5 4 3 2 1 3: Synchronize your multichannel mix with precision and value. 2: Create processes for generating feedback from your social media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance. 1: Start with the Customer (VoC). 197 Step 3: Multichannel Marketing
    198. 198. QVC, 9/23/12 198 Step 3: Multichannel Marketing
    199. 199. QVC Priority: Deliver Competitively Differentiating Multichannel Customer Experiences 199 Step 3: Multichannel Marketing
    200. 200. Multichannel / Multimedia Customers Per QVC VoC research, 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 can drive an 11X increase in sales. QVC, 9/23/12 200 Step 3: Multichannel Marketing
    201. 201. Precision Integration: Response Compression Response Compression Traditional Phone E-mail / Mail Response Response Phone E-mail / Mail Time: 1 – 24 Hours Time: 1 – 2 Weeks 201 Step 3: Multichannel Marketing
    202. 202. Precision Sequencing and Timing Web and digital synchronized with beginning of Publicityand continues Publicity Print advertising 1 week Email #1/ Mail #1 1 week Outboun d Calls 1-24 hours after receipt 202 Email #2/ Mail #2 Per opt-in preferences Step 3: Multichannel Marketing
    203. 203. Multichannel Marketing Multichannel Success Factors Unless you obtain opt-in message and media preferences and aversions. . . Email: • “Email may be the base of your communications with me, but I’m getting too much junk.” • “Make it relevant and timely!” • “And, if it’s really important, send it to me by mail.” You’ll simply be engaging in multichannel irritation! 203 Step 3: Multichannel Marketing
    204. 204. 75% of Email Names are Inactive Per Marketing Sherpa, about 70-75% of your email list is inactive, (Email Summit). List hygiene is not just about removing undeliverable emails, bounces and unsubscribes. It is also requires re-engaging inactive subscribers and the tricky task of asking subscribers if they still want to receive your emails. Scary…but necessary! 4 Tips: 1.Start your email relationship by inviting engagement with a quality welcome series. 2.Test to determine the most important areas of interest. This should drive engaging content and subject lines. 3.Segment and personalize your emails so you deliver the greatest relevance to each individual subscriber. 4.Analyze inactive users and begin sending re-engagement emails. 5.Use catchy subject lines: “Are You Breaking Up With Us?” “Are we still friends?” “Are You Mad at Us?” 204 Step 3: Multichannel Marketing
    205. 205. Clever Re-engagement Email Subject: We have to say good-bye. This is your last change to receive email updates. We haven’t heard from you, and as the owner of one of our vehicles, we don’t you to miss out on the latest from Ford Motor Company. By clicking the link below, you’ll continue to be one of the first to receive sneak peaks at new technologies, exclusive offers, coupons, sweepstakes and more. If you choose not to click the link below, this will be your last email from us. 205 Step 3: Multichannel Marketing
    206. 206. New Email Deliverability Rules Gmail, Yahoo, Hotmail and AOL have implemented new algorithms for email deliverability based on “engagement”: • If your emails are not triggering sufficient interaction, they are likely not to be delivered. • New algorithm calculates deliverability using a combination of CAN-SPAM rules plus new “engagement” factors: open rates, clicks, unsubscribes, and complaints. • With these new “human behaviors” factored into the equation of deliverability, emails you send may be considered SPAM or not delivered, even to subscribers who signed-up to receive your emails. • If enough recipients click the ‘spam’ button on your email, the providers assume that no one else would want that email either. 206 Step 3: Multichannel Marketing
    207. 207. New Email Deliverability Rules 5 Tips: 1.Adhere to basic list management best practices, i.e., keep your list opt-in only, honor unsubscribe requests and remove undelivered emails from your list. Use double opt-in to improve engagement metrics. 2.Motivate new customers to engage with you. Targeted welcome emails are effective. 3.Combine behavioral data and RFM (Recency, Frequency, Monetary) and, per VoC, overlay opt-in preference data. 1.Use personalization and dynamic content. Leverage the enhanced preference data to create highly personalized communications. These should also include customer appreciation messages, “surprise and delight” communications, birthdays, post purchase “thank-you’s”, and dropped cart messages. 1.Reward email actions like opens, clicks, and shares. Southwest Airlines is experiencing success tracking subscriber’s interactions and awarding loyalty program points. 207 Step 3: Multichannel Marketing
    208. 208. VoC-Based Messaging There’s still so much more to enjoy. You’ve helped make this past year amazing, but it’s only the beginning. We have even more brands, products, and special events coming up that we’re sure you’re going to love. 208 Step 3: Multichannel Marketing
    209. 209. 209 Step 3: Multichannel Marketing
    210. 210. Keeping Your Community Engaged You’re just a few reviews away from your Top Contributor badge, so don’t stop now. 210 Step 3: Multichannel Marketing
    211. 211. Multichannel Marketing Multichannel Success Factors Unless you obtain opt-in message and media preferences and aversions. . . You’ll simply be engaging in multichannel irritation! Direct Mail: • “Mail should be specific to my role, to what I do all day long.” • Direct mail should be used as a highly personalized and relevant communication. • Direct mail format should reflect value and include: personalized letter, impact addressed envelope and live stamp. • Post card mailings are the antithesis of this and generate low ROI. 211 Step 3: Multichannel Marketing
    212. 212. Direct Mail Versus Email Finite Universe of Prospects: 50,000 Profit per unit sold: $200 Cost per solicitation Response rate (sales %) Cost per sale Total # of sales Profit Can you run a business with 65 sales? 212 Step 3: Multichannel Marketing
    213. 213. Confusing Jargon We have good news to share with you. As a result of a positive loss experience in 2009-2011, enclosed you will find a refund to your DBL premium for 2009 - 2011 213 Step 3: Multichannel Marketing
    214. 214. Executive Outreach Even though we haven’t seen you in a while, you’re far from forgotten. We miss you – and I would like to personally take a moment to invite you back to Banana Republic. 214 Step 3: Multichannel Marketing
    215. 215. Personalized Card from Online Marketer 215 Step 3: Multichannel Marketing
    216. 216. Multichannel Customer Engagement: 16 August 2013 Hello, Senior Contributor! Congratulations on your many reviews on TripAdvisor! Thank you for being such an active member of our community. It’s my pleasure to send you this TripAdvisor tote, an exclusive for frequent reviewers like you. It’s just the right size to fill with souvenirs from your travels. I hope you’ll tote it with pride. Yours sincerely, Steve Kaufer Co-founder and CEO 216
    217. 217. Multichannel Marketing • • In Step 4, How to Increase the Power of Your Online and Digital Marketing, we’ll have a detailed discussion of the following: ♦ ♦ Web ♦ Field sales: Must be trained in disciplined Pre-Call Planning and Relationship Selling. Digital media, including: • Twitter Must be integrated with your other contact points for maximum responsiveness and cost-effectiveness. • • • Facebook. 217 Inbound calls: Highest value, highest conversion medium. Outbound calls: Proactive, service-oriented calls to opt-in lists increases responses 500% 700%. Step 3: Multichannel Marketing
    218. 218. 5 Principles of Multichannel Marketing 5 4 3 2 1 4: Re-conceive Inbound as a high value customer interface. By definition, Inbound callers are more qualified and likely to spend. 3: Synchronize your multichannel mix media with precision and value. 2: Create processes for generating feedback from your social media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance. 1: Start with the Customer (VoC). 218 Step 3: Multichannel Marketing
    219. 219. 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. 219 Step 3: Multichannel Marketing
    220. 220. High Value Inbound Calls What does it cost you in marketing and promotion dollars to generate an Inbound call? What do your customers experience when they call your 800#? 220 Step 3: Multichannel Marketing
    221. 221. 221 Step 3: Multichannel Marketing
    222. 222. Inbound as a High Value Experience Increased sales Targeted outbound call Calls Personalized fulfillment Proactive, highly Proactive trained reps 222 Via email, mail or fax. Step 3: Multichannel Marketing
    223. 223. 5 Principles of Multichannel Marketing 5 4 3 2 1 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: Re-conceive Inbound as a high value customer interface. By definition, Inbound callers are more 1) Qualified, and 2) Likely to spend. 3: Synchronize your multichannel mix with precision and value. 2: Create processes for generating feedback from your social media channels and your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance. 1: Start with the Customer (VoC). 223 Step 3: Multichannel Marketing
    224. 224. Three Key Phases of the Customer Lifecycle Pre-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. 224 Step 3: Multichannel Marketing
    225. 225. Are You Investing Enough in Your Customers? Marketing Investment Marketing Segmentation 225 Step 3: Multichannel Marketing
    226. 226. Case Study How Voice of Customer Insights Helped Change Our Culture, the Customer Experience...and Increased Renewals Over 50% 226
    227. 227. The warranty provides coverage against mechanical failures for many major systems and appliances, coverage that is not provided by most homeowners’ insurance policies. 30+ year old privately held company. The term of the warranty is typically one year. Market and sell home warranties through real estate agents. Traditionally, Home Warranties cover many systems and appliances, including: • Air conditioning and heating systems • Refrigerators • Water heaters • Washers/dryers • Ovens/ranges • Electrical systems • And more. . . Use direct marketing to renew home warranties when the one year contract, initiated during purchase of the home, is approaching expiration. 227
    228. 228. HMS Customer Journey 228
    229. 229. 3-Steps: Goals Of the VoC Goals Of the VoC Significantly Significantly improve renewal improve renewal rates. rates. Improve the Improve the customer customer experience across experience across channels. channels Know much more about our customer’s needs. . . and use this to drive our marketing. Establish meaningful opt-in preference-based relationships. Deploy our multichannel mix customer preferences. 229
    230. 230. VoC Research Objectives Step 1 Step 1 Know Much More About Our Customer’s Needs. . . And Use This to Drive Our Marketing •Stimulate greater renewal rates Sample •Identify what home warranty means to customers •Determine how customers define the value of HMS •Evaluate claim experiences; strengths weaknesses and •Understand level of satisfaction with HMS •Analyze perception of marketing communications •Determine willingness to opt-in and self-profile preferences to drive targeted communications 230 Customers who renewed Customers who did not renew Segments: •Home buyers who purchased home warranty •Home sellers who purchased home warranty •Filed claim/Did not file a claim
    231. 231. Voice of Customer Research Learnings Regardless of who purchased the warranty, (i.e. home seller or home buyer) engagement is low. The customer experience, not just the amount of claims paid, significantly impacts renewal behavior. Service enhancement opportunities identified: focus on the end-to-end customer experience. Real estate agents often drive the customer’s perception of the value of renewing. Customers expect HMS to be proactive throughout the claims handling process. 231 Customers often calculate the value of the warranty if they consider renewing. Customers are receptive to self-profiling their interests and preferences.
    232. 232. Step 2 Step 2 Reciprocity of Value Establish Meaningful Opt-In PreferenceBased Relationships COMMUNICATI ON PREFERENCES Claims, Renewal & Billing: Email Text Voice Notifications Phone - CS Rep 232
    233. 233. Step 3 Step 3 Deploy Our Multichannel Mix Per Opt-In Preferences VoC-Driven Strategies 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 marketing, auto renewal. •Which product to offer, e.g. cross-sell or up-sell. •What additional information to offer regarding home repair and maintenance. Phased implementation began in 2009, with expanded implementation in 2012. Ongoing improvements in 2013 through 2014. 233
    234. 234. Implementation Per VoC Research 234
    235. 235. Implementation Per VoC Research Pre-VoC, our initial touch point with customers was informational without being engaging. Previous fulfillment kit: Transactional delivery of warranty documents 235
    236. 236. Implementation Per VoC Research Pre-VoC, our initial touch point with our customers was informational without being engaging. Truncated first page of warranty agreement Terms and Conditions made up bulk of the initial customer touch point. 236
    237. 237. Implementation Per VoC Research Post-VoC, we are leveraging this early touch point to immediately engage each customer. Added personalization New tonality focused on engaging the customer 237
    238. 238. Implementation Per VoC Research To successfully engage customers, several elements are incorporated from VoC learnings. Welcome page 238
    239. 239. New - Implementation Per VoC Research Per the VOC, this call has to feel “arm around the shoulder” and consultative. 239
    240. 240. New - Implementation Per VoC Research 1. Leverage Virtual Hold Technology 2. Closed Loop Process 3. Customer Claims Survey 4. VoP – Voice of Partner Research 240
    241. 241. HMS Customer Journey 241
    242. 242. Implementation Per VoC Research Pre-VoC, our renewal solicitation touch points: •Started 90 Days prior to expiration •Single Channel – Direct Mail 4 Touch Points •Very little customization due to in-house development and fulfillment •Dated look and feel •Copy Heavy 242
    243. 243. VoC Driven Multi-touch Results Personalized Communication Thank You Alert 243
    244. 244. VoC Driven Multi-touch Results Highly Customized Pieces 244
    245. 245. Implementation Per VoC Research Post-VoC, our renewal solicitation communication: Short Format Bolded Text Benefit Explanation Customization: Property Info Claim Benefit Coverage 245
    246. 246. VoC driven Multi-touch Results Added Visual Benefit Component 246
    247. 247. VoC Driven Multi-touch Results Oversized Impending Expiration Non-renewal Risk 247
    248. 248. VoC Driven Multi-touch Results Confirm Receipt Address Questions Renew Customer 248
    249. 249. VoC Driven Multi-touch Results Post Expiration Offer 249
    250. 250. Implementation Per VoC Research Customer engagement through a relationship-oriented outbound call •Pre-VoC, the renewal process was direct mail driven. •In the VoC, customers expressed receptiveness, for, a dialogue with HMS. • The VoC drove development of an interactive, multi-channel strategy. • Cost of telemarketing is several times higher than mail, but the incremental sales offset the expense and optimized profitability. 250 Post-VoC, piloted serviceoriented telemarketing with focus on certain segments and the results were as positive as the VoC projected. desire Noteworthy results from the calling initiative – a 20% increase – was quickly realized, with far greater lift in certain segments.
    251. 251. Results Since implementation of VoC-driven programs, the results are impressive: •Achieved over a 50% increase in renewal rates. •Additionally, enhanced product offerings justified a 20% price increase. •HMS is now using a VoC-driven multichannel mix and continually improving strategies with ongoing VoC research. 251
    252. 252. Multichannel Marketing Self-Check Multichannel mix must provide customers/prospects with choices so they can communicate via their preferred mix of media. 252 Step 3: Multichannel Marketing
    253. 253. Your Top 3 Takeaways? 1. 2. 3. 253 Step 3: Multichannel Marketing
    254. 254. Step 1: VoC Research Step 2: Opt-In Engagement Step 3: Multichannel Marketing How to Use the 5 Principles of Multichannel Marketing Step 3: Summary Customer’s definition of relevance: Without this, we have achieved “Integrated, Multichannel irritation”! •Right message. •Right time. •Right person. •Delivered per that individual’s media preferences. 5 Principles of Integrated Direct Marketing: 1.Start with the customer (VoC). 2.Create processes for generating feedback from your sales and service reps. This will provide ongoing qualitative and quantitative VoC guidance. 3.Synchronize media with laser precision. 4.Re-conceive inbound as a high-value customer interface. 5.Customer Lifecycle Marketing: Communications must be deployed at appropriate points in the prospect/customer lifecycle. Should be driven by opt-in preferences. 254 Step 3: Multichannel Marketing
    255. 255. Step 1: VoC Research Step 2: Opt-In Engagement Step 3: Multichannel Marketing How to Use the 5 Principles of Multichannel Marketing Step 3: Summary Four powerful opportunities for communication during the lifecycle: •Prospect •Pre-sale •Sale •Growth and retention. Ask yourself: Are you spending enough on your high-value customers? Probably not! 255 Step 3: Multichannel Marketing
    256. 256. Step 4: Increasing the Relevance and ROI of Your Online and Social Media Marketing. Drawing for 2 Autographed Books: 256
    257. 257. Step 4: Increasing the Relevance and ROI of Your Online and Social Media Marketing Step 2: Opt-In Engagement Step 4: Online and Digital Step 1: VoC Research Step 3: Multichannel Marketing 257 Step 4: Online & Digital
    258. 258. Bob Nanna Marketing Manager Threadless   Bob has been crazy about Threadless since he started as a temporary warehouse worker in 2005. 8 years later, as marketing manager, Bob channels his passion for the brand into Threadless’s social media, product line marketing, email management, and site promotions. Bob Nanna Marketing Manager, Threadless Bob’s previous unconventional work experience includes touring worldwide for over 10 years as a professional musician and part-time journalist for local Chicago publications. When he’s not tweeting as @threadless, you can find him as @heybobnanna or updating his upcoming events at bobnanna.com. bobn@skinnycorp.com www.threadless.com 258 Step 4: Online & Digital
    259. 259. 259 Step 4: Online & Digital
    260. 260. • • In this section we will… Provide you with 7 VoC-based Social Media Takeaways. Review best-in-class case studies, including: 260 Step 4: Online & Digital
    261. 261. Takeaway 1 Consumers Want Empowered Relationships: •Where marketers trust the needs and wisdom of customers to drive engagement, communications, offers and customer experiences across all points and channels. •Consumers have shifted from being passive recipients of “push” marketing creating and managing information and experiences from selected, valueadded resources. •High quality VoC -driven engagement goes straight to the bottom line. to •Has been proven to achieve consistent 25% to 50% increases in response and revenue. •Question: How much more can you do to engage and empower your customers and prospects? 261 Step 4: Online & Digital
    262. 262. Customer Driven Experience 2009 1st Anniversary Gift 262 Step 4: Online & Digital
    263. 263. Customer Driven Experience 263
    264. 264. Customer Driven Experience Check it out. I designed this at NIKEiD.com. Get a total customization experience at NIKEiD.com. You can customize colors and materials for a totally unique take on kicks, T-shirts and more. Start customizing now at www.nikeid.com. 264
    265. 265. Customer Driven Experience 2013 Baby Shower Gift 265
    266. 266. Here at Gilt, we spend a lot of time brainstorming ways to improve your shopping experiences, and I’m very excited to announce some new changes. After listening carefully to all your feedback, we’ve come up with a new and improved shipping-and-returns policy that I think you’re going to love. Here’s an overview of the changes we’ve made: 266 Step 4: Online & Digital
    267. 267. Takeaway 2 Per VoC, you must think multichannel/multimedia: "I take pride in being a smart shopper. I might see something on TV, or hear an ad on the radio. I’ll text some of my fellow FrugalMom$ friends to check it out. Then I’ll browse the website. If the item interests me, I’ll put it in my cart. When I’m finished browsing, I’ll print out the cart. Then, I call Customer Service to have them answer my questions, and place the order." 267 Step 4: Online & Digital
    268. 268. QVC, 9/23/12 268 Step 4: Online & Digital
    269. 269. Multichannel Means More Opportunities to Shop Per ERDM VoC, widespread usage of mobile devices increased multichannel shopping, which resulted in increased spending. Constant connection and… portability of mobile devices means more opportunities to shop. More opportunities means more time spent shopping and… more money spent “It’s just so much easier to shop now. I shop on the train, while waiting at appointments, and out on the deck. While I buy things we need, I have the time and the ability to find things I just didn’t want to waste time trying to find before. It’s so easy now – just type in what I’m looking for, check out who has it, and decide which one to click [to buy.]” 269 Step 4: Online & Digital

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