Customers are clearly in charge and businesses that understand what their customers need and want are winning. Some of the winners are new entrants, the disrupters, and others are more traditional organisations that have been fast to understand the changing customer-led landscape. Presented by Oracle & Fifth Quadrant with CX experts Steve Nuttall and Kristi Mansfield.

1. Crea&ng Individualised Customer
Experiences In The Digital Age
With hosts: Dr. Steve Nu1all, Head of CX Research at Fi=h Quadrant &
KrisB Mansfield, Director of CX and TransformaBon at Oracle

2. Hosted by
Copyright © 2016 Fi1h Quadrant www.Fi1hQuadrant.com.au
Dr. Steve Nu1all
Head of CX Research
Fi=h Quadrant
KrisB Mansfield
Director of CX and TransformaBon
Oracle

3. Contents
1. Customers are demanding higher levels of personalisaBon
2. What is individualisaBon?
3. Businesses that get it are winning
4. IndividualisaBon is one of the top prioriBes for investment for 2016-17
5. How to become customer naBve and deliver individual customer
experiences
6. Why digital transformaBon is a key enabler of individualisaBon
Copyright © 2016 Fi1h Quadrant www.Fi1hQuadrant.com.au

4. 1. Customers are demanding higher levels of
personalisaBon
Copyright © 2016 Fi1h Quadrant www.Fi1hQuadrant.com.au

5. Mass ProducBon Mass CustomizaBon SegmentaBon PersonalizaBon IndividualizaBon
Your
customers
are now
in charge
From Gen Z to
the Greatest
Gen

6. Millennials are the new customer!
Sources: E&Y, Wealth Front, PewResearch, World Bank, McCrindle, ABS
Born a=er
Of the world
populaBon
Of the global
workforce
by 2025
Living in
Australia
Millennial
household
income (avg.)
Average net
worth
30% 1980
60%
5.15m $113k $268k

7. They are at the centre of their own digital networks
… They Are Always On

8. 8
Empowered consumers expect more
Give me a posiBve
experience and I’m 3x
more likely to be a
loyal customer
A great experience
means you could
increase cross-selling
opportuni&es by 5x
I expect advice based on
my locaBon (59%)
I expect real-Bme
recommendaBons
(54%)
Source: World Retail Banking report, Capgemini / EFMA, 2014

9. 9
The modern customer experience:
fast, digital and unstructured
60%
Of consumer purchases are
impacted by digital
interacBons (Forrester)
12%
Of marketers believe their
markeBng is real-Bme
enough to drive adequate
results (eConsultancy)

10. For your consideraBon
Does your organisaBon provide either of the following?
1. A complete view of each customers’ history across channels
2. The ability to combine informaBon from different interacBons to provide a
seamless service for customers

11. Typical customer pain points
The company not
knowing your
history across
different channels
The company not
being able to
combine
informaBon
collected from
different
interacBons to
provide you with a
seamless service
Having to repeat
your query each
Bme
Having to repeat
your account and
idenBficaBon
informaBon each
Bme

12. 2. What is individualisaBon?

13. Inspire
Evaluate
Confirm
Purchase
Car Wait
Pick up
Info
Offers
Actions
Pre-Purchase Purchase Post-Purchase
PersonalizaBon today
Customer profiling
Segmenta?on
Content targe?ng
Social media listening
Next best offer
Content marke?ng
Loca?on based marke?ng
Commerce

14. IndividualizaBon tomorrow
… requiring you to think
customer in!
Know
me Wow
me
Empower
me

15. 3. Businesses that get it are winning
Copyright © 2016 Fi1h Quadrant www.Fi1hQuadrant.com.au

16. For your consideraBon
Are you seeing a trend toward customers
wanBng an individualised experience?
Yes
No

17. IndividualizaBon is achieved when customer
intenBon is anBcipated, understood & acBoned
84% of businesses have
experienced a trend
towards customers
wan&ng an individualized
experience
Only 1 in 5 say they can
effec&vely offer an
individualized
experience
IndividualizaBon and agility
are key to revenue growth.
BI tools, CX solu&ons, play
a vital role.
81% believe cloud-based
solu&ons are important to
delivering individualized
customer experience
Source: Oracle IndividualizaBon Research study, April 2016

18. Businesses who deliver reap compeBBve advantage
$57 – Less per
acquired customer
23% Premium in
terms of share of
wallet, profitability
Awareness & Acquisi&on Reten&on Conversion
$55 million to
$1.6 billion
annual improvement
Sources: Forrester & Gallup

19. Many businesses and Government
organisaBons don’t have the luxury of
starBng with a clean slate; they must build
an architecture designed for the Customer-
led, digital enterprise on a legacy
foundaBon

20. 4. IndividualisaBon is one of the top prioriBes
for investment for 2016-17

21. For your consideraBon
Looking ahead, which of the following is your
organisaBon puong the highest investment priority on
for 2017?
1. PersonalisaBon
2. Data & analyBcs
3. Customer relaBonship management (CRM)

22. OrganisaBons are prioriBsing technology investments on data and analyBcs to
enable improved channel experiences and a higher level of personalisaBon.
Source: Fi=h Quadrant
CX Investment Priori&es for 2016
7%
17%
15%
27%
49%
36%
PersonalisaBon
Data & AnalyBcs
Customer RelaBonship Management
(CRM)
Highest Priority for Technology Investment Top PrioriBes
­ High in Retail

23. Base: All respondents 2016 (n=382)
Q32. How important is personalisaBon as part of your organisaBon’s customer experience strategy?
Importance of personalisa&on
in customer experience strategy
In retail over a half of businesses consider personalisaBon to be
very important to their customer experience strategy.
2% 13% 33% 52%
Not important at all Not very important Quite important Very important

24. 59%
44%
34%
31%
30%
29%
19%
12%
10%
Customer transacBon data
Customer demographics
Social media data
Customer research data
Loyalty program data
In-store customer behaviour data
Web browsing and smartphone app data
Mobile device user generated data
None
Base: 2016 (n=347)
Q35. What data do you use to enable you to personalise content / products / services?
Data used to personalise content, products or services
The more innovaBve retailers use customer transacBon, demographics and social media data when
personalising content, products or services for customers.
66% of those with
loyalty programs use
the data for
personalisaBon

25. • Offer
meaningful deals
• Customise products
• Provide customers with
control of personal data
• Perceived lack of care
in handling data
• Intrusive
loyalty programs
• Lack of clarity on data
policies
• Irrelevant offers
• Spamming
• Perceived abuse of
personal data
• Breaking
customer trust
Source: Cap Gemini – Privacy Please: Why Retailers Need to Rethink PersonalisaBon
The Laggards
The Favourites
The Aspirants

26. I’m likely to spend
more in a store
when I feel like a
valued customer.
I feel valued when
a store remembers
my name / order /
previous
purchases.
I’m more likely to
return to a store
that remembers
my name / order /
previous
purchases.
I will stay loyal to a
business that
personalises my
experience.
82% 75% 68% 74%
Customers value an individualised retail customer experience

27. Australian retail businesses should
do more to personalise my
shopping experience.
58%
…and are demanding more from Australian businesses

28. 5. How to become customer naBve and deliver
individual customer experiences

29. Link disparate IDs to the
right customers
Targe&ng
Improve media spend efficiency and increase
conversion rates
Connect Online and Offline
Tap into offline purchase interac?ons
Maximize Exis&ng Marke&ng
Assets
Leverage your marke?ng and CRM tools to
expand pool of IDs
Cookie
IDs
Social
IDs
Purchase
IDs
Mobile
IDs
Postal
IDs
Email
IDs

30. Adap&ve
Orchestrate experiences
rapidly based on behavior,
preference or a1ributes
Accurate
Understanding the
customer across all
touchpoints
Intelligent
OpBmize content and
experiences that are self-
learning and predicBve
Open
Integrates into the CX enabling technologies across the business
Data-Driven
Connect fragmented data
sources to deliver
personalized experiences
The components for an individualized customer
experience

31. 6. Why digital transformaBon is a key enabler of
individualisaBon

32. Four factors
underpin a
successful
individualisaBon
program
Know and
understand the
customer journey
& customer
experience
Cross
func&onal
support &
collabora&on
Pillars of success
Leveraging big data
and cloud
technology to
enable
individualisa&on
Create a Seamless
individual and
integrated
experience across
channels

33. Data-led smart experience to segment of one

34. Smart Offers
& AcBons
Best-Fit
Candidates
Best-Value
Freight
CX Cloud HCM Cloud SCM Cloud
Web-Scale Data
Outcomes
Decision Science
OpBmized
Payment
Terms
ERP Cloud
Machine Learning
A.I. – Machine learning and the evoluBon and
development of applicaBons
Photo Credit: Rog01 – Flickr.com

35. Thanks for joining us for:
Crea&ng Individualised Customer
Experiences In The Digital Age
With hosts: Dr. Steve Nu1all, Head of CX Research at Fi=h Quadrant &
KrisB Mansfield, Director of CX and TransformaBon at Oracle