Using Engagement Data To Drive Multichannel Relevancy

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New commerce and communication channels are emerging faster than ever before. As a result, data is being generated at a rapid pace, leaving retailers scrambling to collect, measure and leverage it effectively.

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Using Engagement Data To Drive Multichannel Relevancy

  1. 1. Using  Engagement  Data  To  Drive  Mul4channel  Relevancy  #mul%channel  Webinar  Sponsored  by  
  2. 2. #mul%channel  Follow  The  Webcast  On  Twi;er  #mul4channel  @RTouchPoints  
  3. 3. #mul%channel  About  Retail  TouchPoints  ü  Launched in 2007ü  More than 25,000 subscribersü  Provide executives with relevant, insightfulcontentü  Free Resources such as White Papers, E-book,Webinars, Research and Podcastswww.RetailTouchPoints.com
  4. 4. #mul%channel  BrightTALK  
  5. 5. #mul%channel  Today’s  Panelists  Alicia FiorlettaAssociate EditorRetail TouchPointsMODERATORKen BlakeSenior Vice President, AnalyticConsulting GroupHarte-Hanks, Inc.
  6. 6. USING ENGAGEMENT TO DRIVE MULTI-CHANNELRELEVANCYKEN BLAKE, SENIOR VICE PRESIDENTHARTE-HANKS ANALYTIC CONSULTING GROUPBIG DATA BRIDGES THE GAP BETWEEN GUT MARKETING AND TARGETED CUSTOMERENGAGEMENT PROGRAMS THAT GENERATE MEASURABLE ROI
  7. 7. 7
  8. 8. 8CHANGING LANDSCAPEConsumers seek a quality/price value equation – makes meeting individual needs challenging……There’s a multitude of communication channels to choose fromHow consumers interact with these platforms is dynamic — and trends are constantly shifting…
  9. 9. 9Automated Pre-Processingof Standardized Files (ETL)Custom Data ManagementProcessing(see next slide for details)Post CDM & TransactionProcessing in the ODS(Operational Data Store)Daily Processing for Fulfillmentand Thank You Emailsfor Hand-raisersWeekly Trigger Files:§  Welcome DM§  Welcome Email§  Thank you EmailQuarterly Cross-country ExtractWeekly High Mileage ExtractAd-hoc MPN Email NotificationWeekly Sirius FileAnalytic UsersUserAuthenticationTHE NEW NORMALEmail Response DataWebEventsCall CenterSurveySales DataVendorFirewallPGPHHFirewallEmail BlastsReportingDirect Mail CampaignsAd-Hoc ExtractsFTPService DataCRM a methodology and discipline to manage interactions through the application of technology thatorganizes and automates marketing processes— offers a truly effective means to navigate these new dynamics and execute against thefearless pursuit of the consumer
  10. 10. 10AN APPROACH LEVERAGING NEW TECHNOLOGIESMaking it easier for customers to share opinions…CRMMethodologiesConsumerEnthusiasm &Brand Love…applying what is learned to engage directly and meet individual needsCustomerRelationshipMarketing
  11. 11. 11SIGN OF CHANGE - 1990SFROM DANCING…
  12. 12. 12SIGN OF CHANGE – 2010+… TO CAPTURINGAND SHARING
  13. 13. 13WHY BIG DATAIt’s about the 4 V’s…VOLUME VELOCITY VARIETY…AND ABOUT DOING IT AT SCALEVERACITY
  14. 14. 14BIG DATA FOR MARKETERSDATA  ONBOARDING    Ease  and  efficiency  of  integra%ng  raw  data  and  turning  it  into  insight.    Transforming  raw  data  into  %mely  insight  is  the  core  of  a  good  BI  strategy.  AGILE  ANALYTICS  Faster  Insight,  Be;er  Decisions  through  high  speed  analy%cs  via  high  quality  data  and  solid  data  management  techniques.  ANALYZING  DATA  AT  SPEED  AND  SCALE  Be;er  business  performance  by  analyzing  large  volumes  of  accurate  data  in  a  shorter  amount  of  %me.    SELF  SERVICE  EXPLORATION  PuOng  data  explora%on  tools  &  drill-­‐down  capabili%es  directly  in  the  hands  of  end  users  allows  for  quickly  answering  ques%ons  and  removes  the  burden  from  IT.    
  15. 15. 15Content Consumption Browsing BehaviorProduct SpendReviewsSales TransactionsAbandoned CartsSocialENGAGEMENT IS THE KEY
  16. 16. 16OBSERVING A TRENDTop  RFM  Segments  Recent  Buyers  Top  Model  Scores  Most  Recently  Engaged  Our best purchasing segments had the bestengagement ratesEngaged customers spend 2-4x more than unengaged
  17. 17. 17SINCE ENGAGEMENT IS TIED TO SALESThen we will:•  Expand our universe of potential buyers•  Develop contact strategies to create and then increase engagement (in addition tosales)•  Track and migrate customers across more interactionsIf we can…Make theunengagedconsumerengagedMake the lessengaged moreengagedGenerate moreengagementpoints tosupplementpurchaseKeep selling butalso focus onengaging
  18. 18. 18ENGAGEMENT MODEL CONCEPTJAN 2011 DEC 2011JAN 2008 DEC 2011A response model works well when purchases arefrequent……but many brands are purchased infrequently due to the nature of their productsFor a High Frequency brand, this is an AttriterFor other brands, this could be a Best CustomerDifficult to tell an Attriter from a Best Customer
  19. 19. 19ENGAGEMENT CAN BE HIGHLY PREDICTABLEThe top decile exhibits a level of engagement 2.5 times higher than the averageThe lift ratio from the top to bottom decile is 15 timesAverage = 1.08%.00.501.001.502.002.503.001 2 3 4 5 6 7 8 9 10LevelofEngagementDecile
  20. 20. 20DATA ACQUISITION STRATEGY•  Start small and do it well – if you aren’t effectively using the basic data you have,adding more is rarely the answerRegistrationDataData TodayPromotionHistorySegments, Geography,Tenure, Opt-inDesired DataPromotion History# of contacts# click/opens# registrationsPurchase HistoryRFM, 1st purchase , tenure, source ofpurchase, migration paths, time betweenpurchase , purchase based segmentationschemes and predictive modelsWeb Browsing BehaviorLast session, categories/products browsed,number of sessions in past monthModelsCustombuilt3rd PartyDataEngagementRegistrations, preference centercompletion and updates,customer care, socialengagementMosaicClustersControlGroupsCampandFrozenSocial DataSegmentationRFM, Lifestage,Engagement,Cross-shopResearch/NPS/ReviewsLongitudinal Studies, shareof wallet, did you eat, NPS
  21. 21. 21THE RIGHT MESSAGE AT THE RIGHT TIMEUsingenhanced CRMprinciples,marketers willbetter…  Develop andexecute plans tointeract withconsumers in a waythat delivers whatthey need, whenthey need it andhow they want itApply the rightstaffresources,businessprocess,technology anddata contentUnderstand andpredict currentand potentialcustomer needs& behaviorpatterns acrossall channelsTransformdata andanalysis intobusinessintelligenceLeverage thechannel mix tomost effectivelyinteract withconsumers atpoints ofexploration,consideration &decision
  22. 22. PUTTING ENGAGEMENT DATA INTO ACTIONReal World Applications of Big Data
  23. 23. 23APPLICATION 1:LEVERAGING A HOLISTIC VIEW OF CUSTOMER BEHAVIORCustomer ProductEngagement Score (PES)CategoryPurchasingSum ofTotal NetSpend inProductCategoryTotalNumber ofProductItemsPurchasedTotalNumber ofTransactions thatContainProductCategoryWebBrowsingTotalNumber ofDays that aProductwasBrowsedTotalNumber ofTimes thata ProductwasBrowsedCategoryOnlineAbandonCartTotalNumber ofTimes aCart isAbandonedthatContainedProductTotalNumber ofProductsItemsAbandonedCategoryPostReviewsTotalNumber ofPositiveProductsReviews50% of theTotalNumberwithNegativeReviewsSEEING A CUSTOMER’S FULL SHOPPINGEXPERIENCE CAN OFTEN BE MOREVALUABLE THAN SEEING ITS OUTCOME
  24. 24. 24APPLICATION 2:OPTIMIZING THE PURCHASE DECISION CONTINUUMA CUSTOMER’S LOCATION ON THE DECISION CONTINUUM IS CRITICAL FORDETERMINING THE APPROPRIATE MESSAGING STRATEGYLearning Evaluating Deciding BuyingStrategy:Provide information, keepwarm, monitorStrategy:Establish comparativebenefitsStrategy:Provide stimulus to actStrategy:Reinforce decision,facilitate the transaction
  25. 25. 25APPLICATION 2:OPTIMIZING THE PURCHASE DECISION CONTINUUMBIG DATA CAN BE CAPTURED AND MODELED TO SEAMLESSLY & CONTINUOUSLY PLOTCUSTOMERS ALONG THE CONTINUUMLearning Evaluating Deciding BuyingEngagementActivityTransactionActivityContentConsumptionSocialActivity
  26. 26. 26APPLICATION 3:DRIVING RELEVANCY AND MAPPING THE BEST ENGAGEMENT PATHAT EACH SUBSEQUENT STAGE OF THE CONTINUUM THE PICTURE OF THE CUSTOMERBECOMES MORE CLEAR AND, THEORETICALLY, OUR ABILITY TO SPEAK TO THEMRELEVANTLY SHOULD IMPROVE...Learning Evaluating Deciding Buying
  27. 27. 27APPLICATION 3:DRIVING RELEVANCY AND MAPPING THE BEST ENGAGEMENT PATH…HOWEVER, IT IS CRUCIAL TO UNDERSTAND HOW THE CONVERTED CUSTOMER ISMOVED ALONG THE CONTINUUM – AND HOW THIS MOVEMENT CAN BE FOSTERED WITHA POSITIVE BRAND BIASLearning Evaluating Deciding BuyingHow does theirengagement differ?What can we impact?Customer purchasesa competitive brandCustomer purchasesthe brand
  28. 28. 28APPLICATION 4:DRIVING LOYALTY AND ADVOCACYTHE CONCEPT OF “BEST” ENGAGEMENT PATH CAN ALSO BE USED TO FOSTER POSITIVEMOVEMENT ALONG A PATH TO LOYALTY OR ADVOCACYFirstTimeCustomerRepeatCustomerLoyalCustomer AdvocateCustomer becomes abrand advocateCustomer’s progressionstops short of loyaltyHow does theirengagement differ?What can we impact?
  29. 29. 29Dedicated and skilled employeesROADMAP TO SUCCESS An organizational culture that values fact-based research anddecision-makingSuccessful data management strategies include thefollowing crucial elementsUltimately striving for faster and more agile analyticsStarting with the data you have and grow it over timeTechnology tools to ensure large volumes of data areaccurate, consistent and easily accessibleAn organizational willingness to test and learnManagement support and adequate support
  30. 30. 30THANK YOUKen BlakeSenior Vice President, Analytic Consulting GroupHarte-Hanks, Inc.ken_blake@harte-hanks.com
  31. 31. #mul%channel  Q&A  //  Submit  Your  Ques%ons  
  32. 32. #mul%channel  Thank  You  For  Joining  Us!  Download  the  slides  from  this  presenta4on:  http://rtou.ch/multichannel-web

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