Marketing to a Segment of One - Fico ExactTarget Webinar


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Marketing to a Segment of One - Fico ExactTarget Webinar

  1. 1. A Segment of One<br />How Retailers Can Change The Game This Holiday Season<br />
  2. 2. About the Presenters<br />Joel Book<br />Principal,Marketing Research & Education Group<br />ExactTarget, Inc. <br />John Koltonowski<br />DirectorMarketing Solutions Retail/CPG Practice<br />FICO<br /><ul><li> 30 years of experience in database marketing. Helped more than 100 BtoB and BtoC use data and technology to communicate and sell more effectively
  3. 3. Specializes in strategies and tactics to attract and retain customers using email, mobile and social media
  4. 4. Voted one of the “50 Most Influential People in Sales Lead Management” in 2009</li></ul><br /><br /><br /><ul><li> Responsible for consulting with FICO clients to apply FICO Decision Management technologies in the marketing lifecycle. 
  5. 5. 20 years of business and consulting experience, helping organizations build and strengthen customer relationships.
  6. 6. Helps to design and equip organizations with innovative solutions, leveraging automation and decision technologies to improve performance and achieve growth.</li></ul><br /><br />© 2010 Fair Isaac Corporation.<br />2<br />
  7. 7. © 2010 Fair Isaac Corporation.<br />3<br />“Getting the right message to the right customer at the right time is now possible with interactive marketing and especially with mobile (as it’s sent to an individual vs. a household).Retailers need to break down silos between channels—focus on customer driven marketing.”<br />Source: Gartner<br />
  8. 8. Today’s Webinar<br />In this Webinar, you will learn:<br />Why smart retailers are using predictive analytics technology to deliver pertinent and timely offers to individual customers<br />How you can use FICO® Retail Action Manager (RAM) to optimize decisions to ensure the right customer gets the right message at the right time<br />What you can do to optimize retail sales opportunities during the upcoming 2010 Holiday season<br />
  9. 9. U.S. Retail Sales<br />Forrester Research predicts U.S. Online Retail Sales for 2010 will reach $173 Billion, and Web-influenced retail sales will total $1.21 Trillion<br />
  10. 10. Retailing in 2010 – Key Trends<br />Ability to execute consistent promotions across channels is a key competitive differentiator for top retailers. <br />Adoption of mobile is ramping up quickly. By 2014, smartphones will comprise 37% of global handset sales.<br />Shift from “Segment” Targeting to “Individualized” Targeting<br />Increasing customer expectation and demand for offers that address their needs and interests<br />Adoption of advanced “sense and respond” technology that predicts (with accuracy) offers that are relevant and timely to individual customers<br />
  11. 11. How is a “Segment of One” Different?<br />From One to Many . . . to One to One<br />Individualized Marketing<br />Segment Marketing<br />Batch & Blast<br />Customer-Triggered<br />Campaign Calendar<br />Customer Lifecycle<br />Contacts<br />Dialogue<br />Business & Channel Silos<br />Integrated & Informed<br />Supplier Funding<br />Supplier Targeting<br />
  12. 12. Traditional Segmentation Approach<br />This week, promote product X<br />Not interestedthisweek<br />Interestedthisweek<br />Select customers most likelyto want product X<br />Send offer to entire subpopulation<br />
  13. 13. Segment of One Approach<br />This week, promote product X<br />Interestedthisweek<br />Select customers most likelyto want product X NOW!<br />Send offer to targeted individuals<br />
  14. 14. Getting to a Segment of One<br />What Marketers Must Do:<br />Develop and apply more insight about customers<br />Track behaviors and link to performance<br />Understand needs and attitudes<br />Record and use individual preferences<br />Create messaging consistent to the individual, not the offer<br />Predetermine the best offer for immediate delivery<br />Optimize marketing for ROI, practical constraints<br />
  15. 15. Leveraging Customer InsightTo Drive Engagement And Loyalty<br />Act on Knowledge<br />Sophistication of Retail Personalization<br /><ul><li>Relevance
  16. 16. Engagement
  17. 17. Preference
  18. 18. Loyalty</li></ul>Understand needs & attitudes<br />Track behaviors<br />Know Customers <br />Identify at all channels<br />Capture & validate<br />Segment & value<br />Interact via preferred channel<br />Triggered marketing & cross-sell<br />Targeted messages, services & solutions<br />
  19. 19. Relevance is Vital to Success<br /><ul><li>Delivering relevant and timely offers can increase response rates by more than 30% (Source: Fair Isaac Corporation)</li></li></ul><li>Automating Relevance<br />Introducing Retail Action Manager (RAM)<br /> Delivering relevant and timely offers to individual customers just got a lot easier<br />With RAM, you can:<br /><ul><li> Discover WHAT individual customers are most likely to buy . . . and WHEN
  20. 20. Predict the likelihood of purchases, over time
  21. 21. Deliver relevant and timely offers using email, e-commerce, mobile and POS channels
  22. 22. Learn which campaigns worked best and apply this knowledge to future campaigns</li></li></ul><li>How Retail Action Manager WorksPersonalization in Action<br /><ul><li>Transaction Data
  23. 23. Demographic Info
  24. 24. Response Data</li></ul>Tara<br />Tara <br />4<br />Apply Optimization<br />2<br />Apply Business Rules<br />3<br />Apply <br />Analytics<br />1<br />Collect Consumer Information<br />5<br />Create Custom Treatments<br /><ul><li>Contact Strategy
  25. 25. Purchase Frequency and Recency Exclusions
  26. 26. Offer Parameters
  27. 27. Customer Preferences
  28. 28. Eligibility
  29. 29. Scores
  30. 30. Constraints
  31. 31. Modeling
  32. 32. Time Sensitive Predictive Analytics
  33. 33. Scoring</li></ul>Retail Action Manager<br /><ul><li>Transaction Data
  34. 34. Demographic Info</li></ul>POS <br />Coupon Offer<br />Lauren<br /><ul><li>Creates customer specific offers
  35. 35. Creates a matrix of scores for all customer / item combinations
  36. 36. Creates eligibility matrix of all target customers and all target Items</li></ul>Lauren <br /><ul><li>Transaction Data
  37. 37. Demographic Info
  38. 38. Online Behavior
  39. 39. Survey Data</li></ul>Jake<br />personalized offers by email<br />Jake<br />
  40. 40. Integrated Technology<br /><ul><li>Offers executed by integrating of customer data, analytics, RAM, email, and e-commerce
  41. 41. Ability to measure campaign effectiveness
  42. 42. Ability to execute 1:1 </li></ul> offers<br />Illustrative <br />E-Commerce Website<br />Landing Pages, Registration Pages<br />Total Integration <br />of Data<br />“Thank You” Pages, Webcasts / Podcasts<br />Email Communications<br />Predictive Offers <br />Retail Action Manager<br />Tracking and Analytics<br />Marketing Database<br />
  43. 43. Large Electronics Retailer Description (Confidential) <br />Objective: Increase relevance and consistency of marketing communications across multiple channels<br />Approach: Use intelligent, dynamic product recommendations in communications<br />Retailer<br />Massive data analysis frommultiple enterprise sources <br />RAM centralizes marketingcommunications under a single decision platform<br />Multi-channelcommunications<br />
  44. 44. Large Electronics Retailer Results (Confidential) <br />Success: Significant incremental revenue in first 90 days of platform operation<br />Retailer<br />Solution delivered in less than 120 days <br />Delivering millions of demand generated messages per monthto consumers<br />Multi-channel communications arerelevant, timely, and consistent<br />Multi-channelcommunications<br />
  45. 45. Q&A<br />I’d like to implement this approach before Holiday 2010, how long is a typical implementation?<br />How do different segmentation approaches impact the execution of one-to-one? <br />Will the segmentation differ based on the channel (email, Mail, Mobile, Social etc)?<br />What are some of the challenges and best practices to get this type of segmentation adopted and implemented within large organizations?<br />
  46. 46. FICO® Retail Action Manager (RAM)Workflow Overview<br />You collect consumer data<br /><ul><li>Demographics, Transactions, Online behavior, Preferences, Psychographics</li></ul>You set constraints<br /><ul><li>Products, Offers, Campaigns, Goals</li></ul>RAM adds data feeds and interprets the data<br /><ul><li>Customer segments, Customer scores, Offer strategies</li></ul>RAM creates business rules<br /><ul><li>Strategy-based offers, Trigger-based offers</li></ul>RAM integrates with your systems<br /><ul><li>POS coupons, SMS text messages, email offers, dynamic website content, personalized mailers</li></li></ul><li>THANK YOU &NEXT STEPS<br />