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Using personalisation and analytics to drive better results

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Personalisation is way beyond just getting the customer’s name right. With analytics, you can create a personalised customer experience, which leads to successful customer engagements. Find out in this article how personalisation and analytics can drive business growth and more!

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Using personalisation and analytics to drive better results

  1. 1. TO DRIVE BETTER RESULTS PERSONALISATION ANALYTICS ANDUSING TO DRIVE BETTER RESULTS PERSONALISATION ANALYTICS ANDUSING By Digital Alchemy Team
  2. 2. 2Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS 1 IBM Center for Applied Insights. 2013. The State of Marketing 2013, IBM's Global Survey of Marketers. [Online]. Available at < http://www-01.ibm.com/software/market- ing-solutions/campaigns/surveys/2013-marketers-survey.html> [Accessed 7th September 2015] Consumers are creating their own personal experiences online and expect the brands they interact with to provide high personalisation standards and to participate with them in shaping these experiences. People are not just benchmarking against the market leaders in one industry but all the organisations and brands that serve their needs. The online public rightly expects everything to be available on demand and loyalty can be won or lost in a moment. For many businesses this is where customer analytics steps in, taking marketing to a new level and enhancing ROI. Organisations are all at different stages of development and preparedness, however, an analytics capability is an increasing priority. It sustains real competitive advantage by transforming customer data into actionable insights and facilitates real-time personalisation. IBM’s Global Survey of Marketers1 in 2013 found that the top 20% of Leading Marketers surveyed were leveraging the power of real-time personalisation, adjusting real-time offers based on context by a factor of 2.6 compared with all other marketers. MINING THE GOLD IN YOUR CUSTOMER DATA!
  3. 3. 3Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS With the availability and choice of so many different points of access - mobile, online, call centre, retail, etc. - customers need to be engaged at every touch point with the same intimacy and personalisation, regardless of the channel. Taking analytics further, this means that systems must be able to learn from behaviour across multiple channels and update messages and offers accordingly if they hope to sustain customers’ engagement. Current consumer-facing technologies that demonstrate a similar type of system learning are the intelligent personal assistants like Google Now. Their attraction lies in the ability to pre-empt users’ desires and needs. The Apple Watch meanwhile uses more personal data, such as biometric health information, in order to create a more meaningful ecosystem around the wearer. ADAPTING TO DIGITAL ERA 2 Vizard, S. 2015. M&S promises personalisation push to boost online sales. Marketing Week [Online]. Available at <http://www.marketingweek.com/2015/05/20/ ms-promises-personalisation-push-to-boost-online-sales/?no- cache=true&adfesuccess=1> [Accessed 5th September 2015] Clearly, there is no turning back now, real-time personalisation is a continuous journey of assessing, evaluating, determining and learning. In the retail space, according to Marks & Spencer CEO Marc Bolland,2 M&S is trying to improve website personalisation and aspires to be “increasingly connected”. They constantly look at new channels that are “popping up”, like the Apple Watch, to see how they can be used for improved customer engagement.
  4. 4. 4Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS PERSONALISATION There is undoubtedly more to personalisation than getting the customer’s name right. While personal data, demographics and purchase history offer marketers a preliminary snapshot of individuals, only customer interactions such as searches, website visits, mobile location and other touchpoint information provide the means to fully leverage real-time personalisation. Although customers are prepared to give away their information, they obviously expect something in return. If customers are disappointed with their interaction experiences and feel that relevance and value are missing, they will quickly look elsewhere. While understanding customer needs, wants and preferences are what every marketer strives for – context is the overriding thing. Personalisation needs to be respectful and appropriate to the type of business and nature of the customer relationship. Beware of overstepping the privacy line and appearing “creepy”: conservative organisations like finance and insurance companies need to be particularly mindful of this.
  5. 5. 5Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS CAPTURING WEBSITE INTERACTION/ACTIVITIES For organisation new to these procedures, it is best to adopt a phased approach, focusing first on major interactions that have the potential to impact a known business problem - such as abandoned shopping cart transactions. Various tools can be deployed to tag the website and capture the data needed. Data points can also be configured in the site to activate next best offer or next best message when customers hover over certain spots. The ability to connect with people on their own terms during those moments when customers and prospects contact you can dramatically improve the effectiveness of your marketing efforts. Room & Board, a US furnishing retailer, introduced predictive intelligence to drive next best offer via web browsing and shopping.3 Of the people who engaged with predictive content, 37% purchased from one of the company’s channels, with 53% of them purchasing from an offline channel. This represented a significant increase in both online and in-store sales.4 But be aware that integrating website and social data can be tricky, especially as the ownership often sits in separate business units. A genuine customer-centric culture helps to ameliorate these challenges, as does a mutually agreed business plan with clearly defined roles and responsibilities. In addition, this can also be advantageous to exchange some staff between the units to encourage enhanced understanding, communication and cross-fertilisation of ideas. 3 Milnes, H. 2015. How Room & Board uses digital data in its physical stores. Digiday [Online]. Available at <http://digiday.com/brands/small-furniture-store-re- warding-customers-reaping-rewards/> [Accessed 7th Septem- ber 2015] and Saleforce. 2015. Customer stories: Marketing Cloud Customer Success. [Video Online]. Available at <https://www.salesforce.com/marketing-cloud/cus- tomer-stories/> [Accessed 7th September 2015] 4 Heller, L. 2015. How Room & Board makes data personal. Fierce Retail IT [Online]. Available at <http://www.fierceretail.com/retailit/story/how- room-board-makes-data-personal/2015-04-15> [Accessed 5th September 2015]
  6. 6. 6Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS ANALYTICS Insightful data analysis relies on appropriate quality data being aligned in a single customer view that ideally encompasses transactional, behavioural, demographic, service, and online browsing data, etc. Many of the answers you need are simply buried in your database: the challenge is to identify the most meaningful and telling patterns within the transactional data streams and customer profiles. But be aware that data analytics is not just about installing complex analytics software and hoping that you will eventually find a valuable breakthrough. Analytics is an iterative process, it takes time to get right and it continues to evolve, so don’t wait for it to be perfect, begin now and start using it as soon as you can, then refine over time. If analytics is the next step you need to take and you are attempting to get it across the line, you can always get underway with your cross-sell strategy by looking at the obvious touch points and interactions that indicate a customer is likely to be in market. This is a great place to start, then overlay the predictive models, etc., as they are developed and refine the contact strategy accordingly through optimisation. 6USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS
  7. 7. 7Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS THINK MULTIDIMENSIONAL When looking at analytics for cross-sell and upsell, avoid making your models one dimensional. Predictive models are great but also consider things like propensity to buy, uplift models, the most likely time of purchase and so on. These inputs will adjust your prioritisation and likely increase the lift. Start with a clear idea of what you want to achieve and use this to guide and focus the process. It’s also a good idea to ensure that whatever you build is applied across different channels to drive a broader return on investment. Don’t just focus on outbound, think how it can be used for inbound, online, social, etc. This will also help with the business case.   And if you’re not yet ready to undertake real-time personalisation during customer interactions, you can start with a pre-emptive strategy using analysis to identify and prepare suitable offers in readiness for potential customer contacts. Then over time, work towards the much more effective alternative of making real-time personalisation decisions on the fly.
  8. 8. 8Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS Also remember not to put all your eggs in one basket, don’t focus all your development on predictive models alone. There are two ways to approach the sales process: APPROACHING THE SALES PROCESS From the customer perspective – i.e. what is the customer in the market for right now. This can be done using next best offer engines that present the optimum offers appropriate to a moment in time. From the product perspective – i.e. who is likely to be in the market today for the particular product you want to sell. This is where a predictive model can be effective by looking at the likelihood to buy based on a customer’s buying journey and the timing. 1 2
  9. 9. 9Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS ANALYTICS IN ACTION Target identifies sales opportunities through data analytics of customers’ past purchases. Predictive analytics help to determine whether women are statistically likely to be pregnant if they start buying unscented lotions and prenatal supplements. Prospects are sent coupons for baby products. Walmart conducts data analytics on a real- time basis by fusing data from past purchases, internal stock information, mobile phone location, social media and weather forecasts to boost BBQ cleaner sales. If a customer owns a BBQ, lives close to a store and the weather is good, Walmart sends a voucher for a BBQ cleaner.
  10. 10. 10Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS GROWTH THROUGH ANALYTICS 5 Gordon, J. et al. 2013. Big Data, Analytics, and the Future of Marketing & Sales. [e-book] McK- insey & Company. Available at: McKinsey on Marketing & Sales <http://www.mckinseyonmarketin- gandsales.com> [Accessed 5th September 2015] A McKinsey review of more than 250 projects over five years reveals that companies implementing customer data analytics can improve their marketing ROI by 15-20%.5 Achieving competitive advantage through analytics relies on the capacity to predict the future before your rivals. Eventually our knowledge of each customer and our understanding of their needs will be so detailed that they can be offered solutions before they are aware of the need themselves. That’s why you need to start the journey now - or risk being left behind.
  11. 11. 11Copyright © Digital Alchemy USING PERSONALISATION AND ANALYTICS TO DRIVE BETTER RESULTS Digital Alchemy Limited (DA) is Asia Pacific’s leading Database Marketing Services Provider. DA’s team of professionals are dedicated to working with clients to improve their marketing efficiency and to capture latent customer value. Established in 2003 and operating in Sydney, Melbourne, Auckland, Bangkok, Hong Kong, Nanjing, and Singapore, DA has been contributing to the success of an expanding breadth of clients including leading companies in financial services, telecommunications, retail, motoring services, media, and other industry sectors. ABOUT THE AUTHOR Digital Alchemy Team WANT TO LEARN MORE about database marketing and Digital Alchemy? Subscribe to our newsletter Your Email Address www.digitalalchemy.asia/blog www.digitalalchemy.asia

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