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Using data to design personalized customer experiences CX

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At the intersection of “Big Data” and the Big Blender – Ad Tech + Mar Tech – lies growth & competitive advantage, harkening in the era of personalization and customer experience design.

Breakthrough marketing begins by harnessing omnichannel customer insights. Using data-driven insights to design, inform & deploy your Customer Relationship Marketing, creative & media mix is where breakthrough marketing happens! A holistic view of the customer informing CX, over time, across channels and devices. Creating personalized experiences that result in long-term, high-value customer relationships.

Customer’s are in the driver’s seat! With complete information at their fingertips and numerous choices, “one size fits all” product-centered marketing is the by gone era of Mad Men.

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Using data to design personalized customer experiences CX

  1. 1. © 2015 Merkle. All Rights Reserved. Confidential1 Using Data to Design Personalized Customer Experiences NEDMA Conference, Bentley University May 27, 2015 #WholeBrainMktg @AileenCahill @Merkle
  2. 2. © 2015 Merkle. All Rights Reserved. Confidential2 Whole-Brain Marketing Requires Both! Art Science Big DataBranding Ad Technology Marketing Technology aka. “Big Blender”
  3. 3. © 2015 Merkle. All Rights Reserved. Confidential33 “Blending Science with Whole-Brain Marketing – Using Data To… …. Create Personalized, Memorable & Valuable Customer Experiences
  4. 4. © 2015 Merkle. All Rights Reserved. Confidential4 © 2014 Merkle. All Rights Reserved. Confidential
  5. 5. © 2015 Merkle. All Rights Reserved. Confidential5 © 2014 Merkle. All Rights Reserved. Confidential
  6. 6. © 2015 Merkle. All Rights Reserved. Confidential6 © 2014 Merkle. All Rights Reserved. Confidential It’s about “share of mind” not “share of voice”
  7. 7. © 2015 Merkle. All Rights Reserved. Confidential7 The audience is not brought to you or given to you; it's something that you fight for. You can forget that, especially if you've had some success. Getting an audience is HARD. Sustaining an audience is HARD. It demands a consistency of thought, of purpose, and of action over a long period of time. -- Bruce Springsteen
  8. 8. © 2015 Merkle. All Rights Reserved. Confidential8 Today, Audiences are EARNED! Build your Audiences and They’ll Become your Customers Nurture & Engage Them with Relevant, Value-Added Content & Tools You’ll Create Loyalty, Increase LifeTime Value Marketing MUST Move Beyond Selling & Transactions!
  9. 9. © 2015 Merkle. All Rights Reserved. Confidential9 © 2014 Merkle. All Rights Reserved. Confidential
  10. 10. © 2015 Merkle. All Rights Reserved. Confidential10 © 2014 Merkle. All Rights Reserved. Confidential Name & Address Person ID Phone # Email Address Cookie & Device ID AAS 1.0 AAS 2.0 AAS 3.0 AAS 4.0 AAS 5.0 The Evolution of Personally Addressable Marketing
  11. 11. © 2015 Merkle. All Rights Reserved. Confidential11 Now Expanding Addressability Across “Platforms” Social Media Platforms Open Web (DMP) Ecommerce & Publisher Networks Addressable TV Future Expansion OptionsActively BuildingToday
  12. 12. © 2015 Merkle. All Rights Reserved. Confidential12 © 2014 Merkle. All Rights Reserved. Confidential
  13. 13. © 2015 Merkle. All Rights Reserved. Confidential13 © 2014 Merkle. All Rights Reserved. Confidential13 It’s what you do with AAS that’s important!
  14. 14. © 2015 Merkle. All Rights Reserved. Confidential14 © 2014 Merkle. All Rights Reserved. Confidential14 We Make Addressable Consumer Experiences
  15. 15. © 2015 Merkle. All Rights Reserved. Confidential15 Traditional marketing activity, with minimal focus on digital and innovative activities Digital marketing activity, with key focus on new technology capabilities Planning by vehicle in isolation, by quarter, by message Planning interactive experiences across vehicles, across a customer’s unique journey Push marketing activity, mainly offline Inefficient agency and business process Pull marketing activity, primarily digital Updated agency, business & planning model Singular focus on last touch attribution to pipeline and revenue Modern metrics leveraging fractional attribution So…how do we deliver the right message to the right person about the right solution in the right place at the right time? Consumer-Centric Marketing
  16. 16. © 2015 Merkle. All Rights Reserved. Confidential16 The Consumer Must Be at The Center -- Where & How Can We Add Value, Help Them Meet Their Goals and be Engaging Social Media Advertisements Person to Person
  17. 17. © 2015 Merkle. All Rights Reserved. Confidential17 5 Consumer-Centric Principles for Personalization Personalization Value Exchange Engagement Responsiveness Context
  18. 18. © 2015 Merkle. All Rights Reserved. Confidential18 Business Impact of Personalization • 6-8% increased response rates due to optimized segmentation (Accenture/Aprimo) • 2-3% increased sales (conversion rates) tied to campaign effectiveness and execution(Accenture/Aprimo) • Precision targeted emails can generate 10x the revenue and 20x the profit of standard campaigns (Accenture/Aprimo) • 3 Year Increase in Average consumer Revenue of up to $300/customer from a 10% consumer Satisfaction Improvement (Forrester) • Companies with strong consumer experience enjoy 14.4% more consumers willing to buy another product, 16% less likely to switch and 17% more likely to recommend. (Forrester) Revenue Enhancement • 30% Reduction in campaign spend waste through improved financial controls and visibility • 20% Reduction of cycle times, including creative and production services • 20% Improvement in productivity gain due to real efficiencies and user adoption • 10% Optimization of the marketing mix due to enhanced visibility and decision making • Reduced agency spend by 13 percent • Decreased campaign cycle time by 32 percent Cost Avoidance • Improved consumer experience • Increased consumer satisfaction • Increased consumer retention • Decreased acquisition costs • Removal of touchpoint redundancies • Alternate channel operations • Right message / offer/right time • Frequency management • Consumer preference management CRM Improvement Benefits Best-in-Class companies were 4.7 times more likely than their peers to use an integrated automated solution (Aberdeen).. Avg. 15X project investment return after 3 years
  19. 19. © 2015 Merkle. All Rights Reserved. Confidential19 Evolution of Personalization Campaign Management Channel Optimization Decision Optimization Key segments differentiate groups for batched communications Journey based engagement defines offers and interactions. Targeting Optimization Level of insight Channel / Media • Campaign Based • Known consumers • Batch Models • Channel based • Anonymous • Real-time segments • Experience based • Machine learning • Batch “List” Execution • A/B Testing • Cross channel & real-time • Interaction optimization • Email • Direct Mail • Website • Landing Pages • Contact / Service Center • Sales Automation • Display • Social • Smart Devices • Tablets Segment & Interaction Personalized Experience Segment 1st & 3rd Party Segment 1st,, 2nd, & 3rd Party • Single channel real-time • Multivariate testing Automated segments define the next best offer.
  20. 20. © 2015 Merkle. All Rights Reserved. Confidential20 Static Experience to Personalized Experiences (Channel Optimization) This page doesn’t react to consumer data. All consumers receive the same page with the same messaging and/or offers. No Personalization Personalization Zone 1
  21. 21. © 2015 Merkle. All Rights Reserved. Confidential21 © 2014 Merkle. All Rights Reserved. Confidential
  22. 22. © 2015 Merkle. All Rights Reserved. Confidential22 More Data and Tools Than Ever to Complete This Picture 22 Her search query Her past behavior on your site Her history with your brand online and offline Her social network and activity All of her online activity All of her purchase history, online and off
  23. 23. © 2015 Merkle. All Rights Reserved. Confidential23 Append!
  24. 24. © 2015 Merkle. All Rights Reserved. Confidential24 Data is an Asset! Mine It For Competitive Advantage Systematic Use of Information • Customer Data Warehouse • Data analysis and gathering • Predictive modeling To Attract and Keep Customers • Cost-efficient acquisition • Retention focused on profitable and at-risk customers • Across channels Through On-Going Dialogue • Real-time response • Listening to customer • Personalized, customized offers and messages For Long-Lasting Mutually Beneficial Relationships • Customer-based measurements • Continuous customer evaluation Data-Driven Marketing Uses Information To Drive a Meaningful & Mutually Beneficial Dialog  Relationship
  25. 25. © 2015 Merkle. All Rights Reserved. Confidential2525
  26. 26. © 2015 Merkle. All Rights Reserved. Confidential26 Behavioral ContextualDescriptive Weaknesses Data Overload, Sys. Integration Complexity Difficult to Gather and Structure Into System Low Differentiation, Data Privacy Examples Purchases, Usage; Communication, Lifestyle Satisfaction, Events Competitor Actions, Online Behavior Contact, Size, Socio- Economic, SIC, Demographics Sources Internal Systems, Loyalty Schemes, External Data Sources Social Media, Cookies, Market Research Operational Systems, External Data Sources Strengths Personalizes to organization Relevant to CustomerEasily Available Key to Success Completeness CreativityAccuracy Purpose Understand Customer’s Behavior Understand Motivations & Attitudes Understand Customer Types of Customer Information Have a Customer Information Strategy Increasing Difficulty & Value
  27. 27. © 2015 Merkle. All Rights Reserved. Confidential27 And a Data Strategy – 360 Consumer View 27 CUSTOMER INSIGHTS PURCHASE CONSIDERATION BRAND INTERACTION Profile Completion Social Connect Mobile App Usage Event Check-in In-store Check-in Post/retweet w/ Brand hashtag Share Brand page Referral (sign- up/purchase) Write Product Review Add Item to Wish List In-store try-on Watch a video Like a Product Pin Product
  28. 28. © 2015 Merkle. All Rights Reserved. Confidential28 Enhanced Consumer Data aka. 1st Party 28 STANDARD DATA CAPTURE ENHANCED DATA CAPTURE Name Email Mailing Address Purchase Item Transaction Amount Name Email Mailing Address Purchase Item Transaction Amount Items Viewed Items Added to Wish List Purchase Frequency Visit Behavior Preferences Social Likes Social Posts Product Ratings & Reviews Emails Opened/Clicked Advertisements Clicked
  29. 29. © 2015 Merkle. All Rights Reserved. Confidential29 Leverage Everything You Know About Your Consumers LIFECYCLE BEHAVIORIDENTITY SEGMENT LOCATION VALUE Client 1st Party Data CRM Facebook 1st Party Data +
  30. 30. © 2014 Merkle. All Rights Reserved. Confidential Addressable Consumer Experiences Create Competitive Advantage
  31. 31. © 2015 Merkle. All Rights Reserved. Confidential31 Ad Tech & Marketing Tech Make Personalization Possible MARKETER CONSUMER
  32. 32. © 2015 Merkle. All Rights Reserved. Confidential32 © 2014 Merkle. All Rights Reserved. Confidential
  33. 33. © 2015 Merkle. All Rights Reserved. Confidential33 3 Fundamental Layers DATA MANAGEMENT ANALYTICS & ORCHESTRATION MEDIA & CHANNEL EXECUTION CONSUMER MARKETER
  34. 34. © 2015 Merkle. All Rights Reserved. Confidential34 Realizing the Benefits of Personalization or A.C.E Requires Mid Funnel Integration Awareness Consideration Engagement Conversion Commerce Experience CRM Channel Optimization Performance Media Brand Media MEDIA & CHANNEL EXECUTION ANALYTICS & ORCHESTRATION DATA MANAGEMENT
  35. 35. © 2015 Merkle. All Rights Reserved. Confidential35 Awareness Consideration Engagement Conversion Commerce Experience But Today’s Consumer Journey Resembles Pachinko Customer Remarketing Audience 1 Audience 2 Audience 3 Upper Funnel Mid Funnel Lower Funnel Media Sales/Service Experience Traditional CRM DM, EM, Re-Targeting Unknown High-value customer Unknown High-value customer Low-value customer The Expanded Mid Funnel Singular experience from consideration through conversion CRM Channel Optimization Performance Media Brand Media Desktop Phone Tablet TV
  36. 36. © 2015 Merkle. All Rights Reserved. Confidential36 The 3C’s are Foundational for Addressable Consumer Experiences CONTEXT Our applied knowledge of the consumer Every asset we have to put in front of the consumer CONTENTCONNECTIVITY When we bring the two together in media and channels
  37. 37. © 2015 Merkle. All Rights Reserved. Confidential37 A Connected Customer View is Essential Social Print Direct Mail Display Search TV/Vide o Mobile Site Product LTV Segment Demographics Life Events Call center Meetings Email 1st Party Data 3rd Party Data CRM Database
  38. 38. © 2015 Merkle. All Rights Reserved. Confidential38 Audience Platforms Integration of the Marketer’s Person-Level Data Assets with Addressable Audience Platforms Creates Opportunity An Audience Platform is a digital technology that enables targeted, personalized experiences to individuals Customers 1st Party Data 3rd Party Data CRM Database
  39. 39. © 2015 Merkle. All Rights Reserved. Confidential39 Audience Targeting 39 Traditional Vehicles, plus: Display Re-Targeting Facebook Custom Audiences / Twitter Tailored Audiences Geo-Fenced Mobile Display / In-Store Beacons SMS RLSAs
  40. 40. © 2015 Merkle. All Rights Reserved. Confidential40
  41. 41. © 2015 Merkle. All Rights Reserved. Confidential41 Drawn by LoBianco Studios 2-02 Case Studies
  42. 42. © 2015 Merkle. All Rights Reserved. Confidential42 Upper Funnel Lower Funnel Mid-funnel Upper Funnel Lower Funnel
  43. 43. © 2015 Merkle. All Rights Reserved. Confidential43 Initial Inclusions All Simplified Issue Term (SIT) Completed Applications (~53K) Proposed Target Segments Comments 1 – Random Sample (Include sold policies only, ~26K) 2 – SIT Basic cuts (remove low value, include sold accts, ~20K) 3 – SIT High Value (Include policies w/ ann prem > $500, ~8K) 4 – SIT Internet Savvy (Include policies sourced online only, ~8K) 5 – MLT Basic Cuts (remove low value, include sold accts, ~20K) • Establish baseline • Future Model Sample • Comparison to “Targets” • Prove targeting concept • “Easy” solution • $200 Premiums (~75%) • Top ~25% of policies • Validate target CPA • Policies, remove “free looks” • Target responders – OEA • Target online dispositions • Include min Prem ($100) • Lower conversion costs • Policies, remove “free looks” • Generate understanding of different product performance • Extrapolate targeting benefits All MetLife Term (MLT) Completed Applications (~60K)
  44. 44. © 2015 Merkle. All Rights Reserved. Confidential44 Image: A Image Text: A Post Text: A Link Title: A Link Description: A Image: A Image Text: B Post Text: A Link Title: A Link Description: A Image: A Image Text: C Post Text: A Link Title: A Link Description: A Image: B Image Text: A Post Text: A Link Title: A Link Description: A CT-1000091 CT-1000092 CT-1000093 CT-1000094 Ad Unit Combination Test ID 81 Permutations
  45. 45. © 2015 Merkle. All Rights Reserved. Confidential45 Increase in lead to sale ratio by as compared to the next best performing channel decrease in Cost per Lead in 2014 the Cost per Premium (CPP) of other display channels in 2014 “Working with their agency Merkle, MetLife used lookalike audiences to find people more like its existing customers, MetLife ran ads that led people to its “get a quote” website page.” - Sheryl Sandberg, Facebook Facebook Earnings Call 10/28/14 2.4X 49% less than half the cost
  46. 46. © 2015 Merkle. All Rights Reserved. Confidential46 Whopping Impact of the “Mid Funnel” Q1 - 2014Q4 - 2013
  47. 47. © 2015 Merkle. All Rights Reserved. Confidential47 Merkle www.Merkleinc.com
  48. 48. © 2015 Merkle. All Rights Reserved. Confidential48 Let’s All Be Leonardo!
  49. 49. © 2015 Merkle. All Rights Reserved. Confidential49 Or Einstein!
  50. 50. © 2015 Merkle. All Rights Reserved. Confidential50 AGILE Marketing Will be THE Hallmark of Winners! 1. Collect & Integrate 2. Analyze & Discover 3. Act & Optimize 4. Execute & Deliver SPEED PROCESS METRICS DATA to Understand Customers/Consumers • Manage Data • Rich Content • Contextual Relevance • Strategic Intent • Omnichannel Touchpoints • Orchestrated Customer Experience • Continuous Improvement • Refine • Benchmarking • MEASUREMENT Critical Success Factors • Rapid Cycle Learning • CMO & CIO Partnership
  51. 51. © 2015 Merkle. All Rights Reserved. Confidential51 A Phased Approach is Best Fully Integrated Experience • Streamlined campaigns • Recommender system enables 1-to-1 • Name/address hygiene • All addressable media • Web data integration • Two way interaction • Real-time integration • Real-time Two way interaction • Store & POS integration • Call center integration • Media & Marketing Mix • Segmentation alignment Offline Channel Integration Digital Channels Integration Mass Media Integration Digital Media Integration Email and DM Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 CRM Database
  52. 52. © 2015 Merkle. All Rights Reserved. Confidential52 MERKLE - Experts in the Mid Funnel! CONSULTING DATA MANAGEMENT PERFORMANCE MEDIA Data Driven, Tech Enabled Performance Marketing Agency, we have built a set of solutions to capitalize on this new funnel. In order to capitalize on this new world, organizations will have to rethink their internal structure, processes, and marketing supply chain. CRM Brand Media Performance Media Channel Optimization
  53. 53. © 2015 Merkle. All Rights Reserved. Confidential53 Thank You Acahill@MerkleInc.com @AileenCahill SlideShare

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