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Digital Marketing and Personalization of CX: 2016 Horizonwatch Trend Brief

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The slides provide a quick overview of the Digital Marketing / Personalization of Customer Experience trend. The slides provide summary information, a list of trends to watch and links to additional resources.

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Digital Marketing and Personalization of CX: 2016 Horizonwatch Trend Brief

  1. 1. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Digital Marketing and Personalization of CX IBM HorizonWatch 2016 Trend Brief – External Version Bill Chamberlin, Principal Client Research Analyst / HorizonWatch Community Leader Priyanka, Associate Product Manager, Digital Business and Company/Client Assets May 15, 2016
  2. 2. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. 2 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)15May2016  Purpose: The slides provide a quick overview of the Digital Marketing / Personalization of Customer Experience trend. The slides provide summary information, a list of trends to watch and links to additional resources  How To Use This Report: Use these slides as a learning document and a springboard to further research and reading on this trend. You may want to view the slides in slideshow mode so you can easily follow the links  Available on Slideshare: The latest version of this file (and other HorizonWatch Trend Reports for 2016) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching  Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. About this HorizonWatch Emerging Trend Brief
  3. 3. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. About the trend towards personalization of the customer experience 3 Definition: Personalization of the customer experience refers to a series of advertising and marketing strategies that rely on the use of an integrated set of digital tools, technologies, and processes to deliver personalized, contextually correct messages and content for individual consumers, with the goal of driving greater engagement and retention. Enabling Technologies:  Cloud, Mobility, IoT, Location services  Algorithmic targeting and messaging  Predictive and prescriptive data analytics  Data management platforms  Content/experience management  Ecommerce management, CRM 15May2016 “IDC predicts that more 50% of developer teams – up from less than 1% today - will embed cognitive services into their apps by 2018 to leverage their data pipelines and to improve customer personalization.” IDC “There is broad recognition that empowered customers are changing the fundamentals of the market. In response, most companies are executing strategies that place the customer at the center of the universe.” Forrester The 2016 Top 10 Critical Success Factors To Determine Who Wins And Who Fails In The Age Of The Customer Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)
  4. 4. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Digital Marketing & Personalization – 5 trends to watch in 2016 1. Data-driven marketing strategy. Enterprises turn to deep transactional data mining to identify latent and adjacent market segments, product positioning opportunities, and competitive threats. 2. Customer data grows in importance. CMOs seek tech solutions and third party data sources to capture individual customer data including: online behavior, buying patterns, preferences, choices, etc. 3. Personalization technologies emerge. Watch for news on topics like customer and role journey mapping, social sentiment analysis, Net Promoter Score, propensity modelling, product recommendation engines, and behavioral scoring. 4. Personalization drives the data economy. Delivering personalized, contextually relevant customer experiences drives the growth of the data economy, particularly as enterprises aim to unlock value from unstructured social media sources. 5. Mobile & social. Smartphones and social networks become consumer’s most trusted information source. Marketers will need to capitalize on the combination of mobile & social as a “go-to” platform of choice to engage in consumer micro-moments. 4 “Forrester’s research articulates that personalization — one of the top success factors for customer-obsessed businesses in 2016 —is a critical pillar of customer experience and that organizations are starting to invest not only in personalization to stay competitive but also in individualized experiences that are enabled by personalization..“ Fiona Adler, Forrester Analyst “Personalization strategies and tactics ranging from slightly customized emails that include a recipient’s name to fully contextual and customized landing pages are key fronts in the battle for customer experience differentiation..” Gartner Momchil Kyurkchiev via VentureBeat: Marketers: Personalization will become a science this year 15May2016 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)
  5. 5. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Digital Marketing & Personalization – Challenges  Oversaturation. Oversaturation of marketing causes individuals to ignore messaging. The average person exposed to thousands of advertisements every day. As a result, it becomes easy to ignore the messaging or marketing in an ad, especially if it does not relate to the viewer on personal level. Ad blocking software is a huge risk to monetization models.  Forced messaging. Personalized marketing is rejected if it feels that is unnatural or too blatant. Customers need to feel comfortable with the context of an advertisement to focus on the content of it. When targeted marketing seems too forced or mechanic it becomes unsettling and drives the viewer to ignore the purpose of the ad.  Balancing privacy and personalization. An individual’s desire for privacy and the protection of personal information creates barriers to personalization. Achieving true personalization requires firms to retain detailed information on individuals.  Declining attention spans. Declining attention spans require innovative personalization strategies. As individuals adapt to simultaneous device usage, attention spans decrease. As this trend continues, digital marketers will be forced to improve message efficiency and effectiveness or face losing share of mind to other digitally-delivered content. 5 Adweek: Personalization is a Big Challenge for Digital Marketers (Infographic) 15May2016 Forrester: Why Your Organization Is Approaching Personalization Wrong VentureBeat: Consumers want privacy … yet demand personalization Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)
  6. 6. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected links to additional resources • Adweek: Personalization is a Big Challenge for Digital Marketers • Ask Your Target Market (AYTM): Online Privacy Survey: Internet Users Don’t Want Personal Information Shared • Decisionaire: Personalized Content and Online Assessments as Storytelling • Everengage: Personalization 3.0 – A Digital Marketing Imperative • Forbes: Balancing Privacy And Personalization: The Challenge Of Marketing For Micro-Moments • Forrester: Why Your Organization Is Approaching Personalization Wrong • IBM: Customer Analytics • Inboundnow: 10 Online Marketing Trends & Predictions for 2015 • Kim Ann King: Digital Marketing Best Practices: The Complete Guide to B2B Marketing • SAS: Digital marketing, predictive analytics, and making personalization delicious • SJ Insights: New Research Sheds Light on Daily Ad Exposures • VentureBeat: Consumers want privacy … yet demand personalization • VentureBeat: Study finds marketers are prioritizing personalization… but are further behind than they realize • WebTrends: The Path to Personalization: A Framework for Digital Marketing Advancement 6 “The secret to smarter segmentation and real personalization lies in understanding buyer behavior across channels and devices, and surfacing insights on each customer’s true affinity and preferences.” Kahuna “Three out of four consumers want retailers to gather and use personal data to improve the shopping experience.” Monetate “In all our combined research on personalization — almost every age of consumer either wants a more relevant experience or is happier when personalized delivery increases the value they get from the brands they interact with.” - VentureBeat Insight 15May2016 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version) IBM: Customer Analytics

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