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Omni-Channel Marketing: Meet customers increased expectations

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Today’s consumers are more empowered than ever before and expect retailers to anticipate their needs and make it easy and convenient to interact with them across any channel they choose. Learn how IBM’s ExperienceOne capabilities help retailers by engaging with customers in an omni-channel experience. Review different use case scenarios that illustrate the benefits that IBM can offer to leverage customer insights for more personal and targeted customer engagement.

Published in: Marketing

Omni-Channel Marketing: Meet customers increased expectations

  1. 1. Omni-Channel Marketing Meet Your Customers Increased Expectations January 11, 2015
  2. 2. 2 Contents The Evolving Marketing Profession Bringing Omni-Channel to Life with Case Studies IBM ExperienceOne Solutions Appendix ‒ Retail Use Case Examples
  3. 3. 3 The evolving marketing profession Creating a system of engagement that maximizes value creation at every touch. Marketers have always been responsible for knowing the customer. Marketers have always been responsible for defining what to market, and how to market. Marketers have always protected the brand promise. Understanding each customer as an individual. Timeless 2012
  4. 4. 4 The evolving marketing profession Designing your culture and brand so they are authentically one. Creating a system of engagement that maximizes value creation at every touch. Marketers have always been responsible for knowing the customer. Marketers have always been responsible for defining what to market, and how to market. Marketers have always protected the brand promise. Understanding each customer as an individual. Timeless 2012 Co-create authentic brand experiences with customers, employees, and partners. Innovate and scale personally relevant and rewarding experiences. Know each customer in context. 2014
  5. 5. 5 Retailers need to re-imagine everything about the way they engage with consumers to create brand value 54%of consumers would consider ending their relationship with a retailer if they are not given personalized content and offers 57%of consumers will not recommend to peers a business with a poorly designed mobile site Less than 50% of retailers collect social network data and only 8% thought it an important factor in generating insights Source: http://www.digiday.com/brands/13-alarming-stats-about-retail-in-digital/
  6. 6. 6 Awareness of new shopping concepts and consumer comfort in using them, provide more ways for retailers to connect These new retail concepts provide the retailer with a vast source of customer data to allow for more personalized service 25% 25% 28% 30% 31% 33% 37% 39% 40% 42% 43% 43% "Chat with a stylist" offer while online Sign up for an appointment with an in-store stylist/expert Download a "how to buy" e-brochure or app Receive in-store mobile alerts Check into a kiosk to get offers Create a "virtual closet" online Create a "virtual me" online Rate products as favorites See reviews from other purchasers Visit a "virtual store" while online Rate promotions from the retailer Expert advice Percent of shoppers interested in retail concepts Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
  7. 7. 7 Shoppers want retailers to provide personalized promotions and recommend relevant offers Use my prior purchasing to offer me promotions 55% 43%Use my prior purchasing to recommend new products Invite me to events 43% Involve me in new product ideas 36% Interest in retailer offers From Transactions to Relationships: Connecting With a Transitioning Shopper Global View Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
  8. 8. 8 ..And digital, social, and mobile technologies have revolutionized the way consumers expect to interact 43% of consumers indicated they posted about a retailer they had shopped 36% of consumers willing to share current location (vs 19% in 2011) 77% of B2B buyers check with peers before buying 55% of retail customers expect personalized promotions & offers 59% of consumers influenced by friends social posting of a purchase (vs 41% by retailers own recommendations)
  9. 9. 9 Studies show consumers are open to sharing most personal information when there is perceived benefit Consumer Control of Data What is your willingness to provide information in exchange for something relevant to you (non-monetary)? 25% 27% 41% 41% 44% 46% 63% 30% 30% 28% 29% 28% 28% 21% 45% 43% 33% 30% 28% 26% 15% 0% 20% 40% 60% 80% 100% Media Usage (e.g. Media channels) Demographic (e.g. age, ethnicity) Identification (name, address) Lifestyle (# of cars, home ownership) Location Based Medical Financial Completely Disagree Neutral Completely willing Source: IBV Retail 2012 Winning Over the Empowered Consumer Study n= 28527 (global) P04: What is your willingness to provide information for each of the following items if [pipe primary retailer] provided something relevant to you in exchange?
  10. 10. 10 Contents The Evolving Marketing Profession Bringing Omni-Channel to Life with Case Studies IBM ExperienceOne Solutions Appendix ‒ Retail Use Case Examples
  11. 11. 11 Leaders are shifting to a model of customer engagement Understand Engage Optimize
  12. 12. 12 With four specific practices, the 20% of marketers who lead this transformation outperform their peers Leading marketers own the customer experience—and their companies financially outperform competitors 3.4x higher Three-year gross profit growth 1.8x higher Three-year net income growth Three-year stock price growth 2.4x higher Deliver an omni- channel experience Consistently measure results Break down silos Maximize the moment2 3 4 1 Three-year gross profit growth Three-year net income growth Three-year stock price growth Source. “The State of Marketing 2013: IBM’s Global Survey of Marketers,” IBM Center for Applied Insights, May 2013.
  13. 13. 13 Outperformers understand the need for an omni-channel approach 92%continue the push to knowing their customers 20% of leaders integrate inbound and outbound communications Top Source. “The State of Marketing 2013: IBM’s Global Survey of Marketers,” IBM Center for Applied Insights, May 2013.
  14. 14. 14 Engage customer in the context of their journey Make customer data actionable in context Personalize interactions at scale in the right channel, not all channels Deliver exceptional customer experiences across the brand Orders Transactions Payment history Usage history Attributes Characteristics Self-declared info Geographic demographics Opinions Preferences Needs & Desires Email Chat Call center notes Web clickstreams In-person MobileMobile DirectDirect OnlineOnline Call Center Call Center Point of Sale Point of Sale KioskKiosk
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  16. 16. 16 Case Study: Best Buy deploys more effective campaigns with larger basket sizes & increased reward zone membership Challenge Best Buy wanted to have the ability to launch more marketing campaigns faster and more efficiently. In addition, they wanted to shift from mass marketing to a more targeted, personalized marketing approach using customer timing, trends and triggers They also wanted to increase loyalty by shifting customers from acquisition to their member rewards program Solution Best Buy was able to double reward zone membership in 3 months By leveraging customer insight data and utilizing IBM’s ExperienceOne solutions they were able to significantly increase the number of campaigns while simultaneously increasing their contextual marketing with more targeted, personalized offers Best Buy was able to increase the number and effectiveness of their campaigns and also decreased operating costs through the use of marketing automation tools “With greater insight into customer behavior, the company has a clear view into what customers want so that it can deliver every marketing message effectively.” —Vice president of CRM Solution Components IBM Campaign IBM InfoSphere Information Server IBM Pure Data for Analytics 17% Increase in operating profit Process ImprovementsKey benefits 10% Increase in trips to the store 20% Increase in shopping basket size 20% Increase in margin 82% Reduction in cycle time for campaigns 3X Improvement in efficiency
  17. 17. 17 Case Study: Orvis revamps their marketing campaigns with significant results to more closely align with their customers Challenge With data residing in fragmented systems, Orvis had no truly unified view of the customer. There was no way to see that certain customers, for example, may prefer to receive information through email but make purchases in a retail store. Campaign planning and execution were slow, largely manual processes and Orvis had outsourced its email marketing, further limiting flexibility and control over campaign execution. Solution The solution uses a flowchart-based user interface to manage the entirety of a campaign’s logic, including audience segmentation, exclusions, and assignment of offers and channels. It also enables campaigns of any size, including micro- campaigns targeting specific individuals based on exhibited customer preferences identified. Now every marketing manager is empowered to manage data, create campaigns, pull customer lists and track the results in real time. The efficiency gains are enormous Orvis is a multichannel retailer, the oldest mail-order company in the United States and has more than 40 retail stores in the United States and the United Kingdom and 500 dealers worldwide Solution Components IBM Campaign IBM eMessage 40% Reduction in email costs versus prior outsourced solution Record profits after solution implementation Key benefits 2 Years Reduction in campaign and reporting costs88%
  18. 18. 18 Case Study: A retail giant in South America uses personalized marketing tools to create a new level of customer intimacy 40% Reduction in email costs versus prior outsourced solution Record profits after solution implementation Key benefits 2 Years Reduction in campaign and reporting costs88% Challenge As it expanded and grew, a retail giant in South America needed a more effective way to identify and target customers with relevant and timely offers, and to coordinate marketing campaigns across several different lines of business (LOBs) Solution The retailer adopted a sophisticated campaign solution that integrates customer information across several LOBs and geographies and centralizes its marketing efforts. The solution helps the retailer assemble targeted campaigns with personalized offers and use preferred communication channels for each customer at well-timed intervals. The solution boosted customer loyalty by sending precisely timed and targeted offers “With greater insight into customer behavior, the company has a clear view into what customers want so that it can deliver every marketing message effectively.” —Vice president of CRM Solution Components IBM Campaign IBM eMessage IBM Interact IBM Marketing Operations
  19. 19. 19 Let’s meet Lily
  20. 20. 20 Combine customer behavior with real-time information
  21. 21. 21 Lily’s loyalty is rewarded and the relationship deepened
  22. 22. 22 Contents The Evolving Marketing Profession Bringing Omni-Channel to Life with Case Studies IBM ExperienceOne Solutions Appendix ‒ Retail Use Case Examples
  23. 23. 23 IBM ExperienceOne customer engagement solutions. Proven patterns for business outcomes
  24. 24. 24 IBM ExperienceOne - The industry’s most comprehensive customer engagement portfolio
  25. 25. 25 IBM ExperienceOne enables marketers to… Understand Engage e Optimize
  26. 26. 26 A Complete Omni-Channel Marketing Solution Marketing Operations Reduce channel silos through collaboration and measurement Interaction & Campaign Management Drive relevant messaging across offline and online channels Multi-channel Execution Align with customers’ expectations on their channel of preference at the right moment Customer Analytics Discover customer preferences and behavior across channels and predict what the customer wants
  27. 27. 27 Limited insight of a customer’’’’s behavior across touch points – increasingly outside the company Understand Engage Optimize Lack of skills to leverage data-driven marketing Channel-centric systems and processes make it hard to shift to integrated omni-channel experience Scaling real-time personalization to engage in context based on customer behavior and preferences IBM understands and addresses customer engagement automation challenges
  28. 28. 28 IBM ExperienceOne is uniquely positioned to provide clients the integrated advantages of On Premise and Cloud On Premise HybridCloud
  29. 29. 29 Contents The Evolving Marketing Profession Bringing Omni-Channel to Life with Case Studies IBM ExperienceOne Solutions Appendix ‒ Retail Use Case Examples
  30. 30. © 2014 IBM Corporation Use Case #1: Real-time Mobile Offers – Take customers physical shopping experience and extend digital offers to engage the customer Paul Williams - Profile Age 55 Chicago, IL Traveling Salesman Active user of Facebook Social – love to get advice from friends Medium technology affinity Open to offers that provide savings & make his hectic life easier World traveling support seeker: “I’m open to new offers that fit with my lifestyle." IBM Solution Highlights: •IBM Mobile Customer Engagement messages customers in the right mobile channel, at the right time, in the right place, with the most relevant content •Leveraging Omni-Channel Marketing the Retailer can serve the customer the appropriate offers along the entire customer journey from research to shopping to purchasing and fulfillment. . By using campaigns at strategic points in the customer journey you can stay engaged with the customer and build lifetime customer value . 30 IBM Solution Highlights: •The Mobile Customer Engagement solution enables using each customers mobile behavior and physical location to provide real-time engagement and personalization via mobile. •Flexibility with usage including in-store messaging, 1:1 messaging & personalization, new product introductions, service alerts, loyalty programs, and more •Simple and rich mobile push notifications •Increases response rates, offers customer convenience and provides valuable customer data insights Paul is shopping along Chicago’s Magnificent Mile and he spends time at XYZ Retailer looking at Big Screen TVs. Paul is a regular customer and has the mobile app on his phone. Based on his location and past purchase/search behavior he receives a push notification offer from XYZ Retailer telling him that he will receive 10% off on any Big Screen TV in-store that day – and an additional 15% off any TV-related accessories. Paul decides to take advantage of the offer and buys a new TV. After his purchase he receives a rich push notification with a summary of his loyalty points and a link that he can send the same 15% coupon to two of his friends good for one week and he will receive a 15% discount for a future purchase at XYZ Retailer.
  31. 31. © 2014 IBM Corporation Jill Soloman - Profile Age 42 Single mother of two young boys Willing to provide personal information if it will save her time and money Single mother looking for savings & convenience: “With my hectic schedule I’m always open to new opportunities to save time or money." Jill receives an SMS from her grocer with coupon savings on items she regularly buys. The coupons can be used with her phone at checkout. In addition, she is also provided with an offer of 3 different quick-to-make recipes based on her shopping history that she can do with only a few extra items. IBM Solution Highlights: • IBM Digital Analytics can track an individual’s online activity and then use that customer insight to trigger an offer to be displayed in the most relevant channel. Customers can be engaged earlier with the identification of trends, patterns, anomalies, etc. • The Grocer can continue to build comprehensive customer profiles to provide targeted messages & offers that align to the customers interests and their preferred method and frequency of contact. Jill likes the savings and the recipes that are so convenient and healthy for her and her sons. After work, Jill goes to the grocery store and buys her items. Later when she is home she receives an SMS for some additional targeted offers that are good for 7 days. IBM Solution Highlights: • IBM Interact can provide real-time offers with any inbound customer interaction (CSR, Mobile, Kiosk, etc.) for personalized offers previously only delivered thru outbound campaigns and it continues to learn as it goes from offers accepted or rejected to make the best targeted offer. • The solution can be used to determine the optimal contact strategy for each customer. The solution will look across behaviors, scheduled communications and any constraints to ensure the customer receives the most relevant and timely offers in their preferred channel.31 Use Case #2: Increase Basket Size – Increase basket size with personalized offers and convenience
  32. 32. © 2014 IBM Corporation Ron Smith - Profile Age 33 Plays on local rec league ice hockey team Active user of Facebook Social – love to get & share advice with friends Medium to High technology affinity Open to offers that provide guidance and support Sporting Goods Support Services: “I’m interested in offers that can assist me with my ice hockey hobby." Ron has been sharing his rec hockey team results with his friends on Facebook & in Twitter forums and also accessing XYZ Power Hockey’s mobile app for skating tips and information. Ron’s activity triggers an automated offer from XYZ Power Hockey to join its ice hockey blog. The blog has reviews on new equipment, a section for buying & selling used gear and other forums. IBM Solution Highlights: • IBM Silverpop - Automate marketing with omni-channel across digital channels. The solution synchronizes personalization across digital channels and devices, e.g. tailors customer’s mobile app experience based on his preceding engagements. • Real relevance goes beyond customer stated preferences -- real preferences are revealed thru customer interactions and behaviors allowing Retailers to drive more relevance in content and timing of messages A few days later Ron receives an email providing him with early notice of a sale on his preferred brand of hockey sticks. Ron buys a stick & uses it that night in his rec league game. The following day he provides a review of the stick on the blog and he also shares news of his offer with his friends on facebook. IBM Solution Highlights: • The IBM Solution enables a single view of the customer across digital channels and devices --- including early sessions in which the customer was anonymous. It can combine individual data with ‘wisdom from the crowd’ to recommend content before consumers even know that they want them • The solution leads the industry in: • Ease of connecting to digital data • Automate marketing for digital channels • Benchmark metrics 32 Use Case #3: Automated Consumer Offers – Using consumers’ digital experiences to trigger automated offers
  33. 33. © 2014 IBM Corporation John has been shopping on his smartphone and receives an offer for a silver watch that he likes and he calls in to place his order. The CSR tells John that it’s a popular watch and asks him for his name and other pertinent data. The CSR can see that John is a valued customer with a high propensity to buy multiple items. 33 Use Case #4: Cross-Sell/Upsell – Using real-time analytics to target customers at the right time, with the right offer John Whitton - Profile Age 55 Magazine Editor Fashion conscious Open to offers that catch his eye and are seen as a good value from retailers that he shops at frequently John calls in to purchase a watch: “I’m open to offers that complement my lifestyle” IBM Solution Highlights: • IBM Campaign - Customer profile data can be used to segment customers into the appropriate customer segment including customer scoring (e.g., high risk, high value) to provide more targeted offers. • IBM Campaign provides a much more granular level of customer segmentation and offering capabilities than most CRM systems. • IBM Campaign can provide SMS messages thru its eMessage capability. The solution enables retailers to automate and trigger marketing messages, improving marketing efficiency. IBM Solution Highlights: •IBM Interact -provides CSR Reps with real time inbound updates to deliver personalized service & offers. Offers can be made thru inbound touchpoints based on customer behavior and preferred channel. •Sophisticated self-learning algorithms automatically determines the right offer at right time, at scale, in milliseconds. •Additionally, Interact can use both existing customer data and data from the immediate context to provide offers & services and it learns as it goes from acceptance and rejection of offers The CSR tells John that there is also a pair of cuff links made by the same manufacturer – and describes the product features to John. John likes the cuff links, asks how much they are and decides to add them to his order.
  34. 34. © 2014 IBM Corporation34 Use Case #5: Marketing Operations – Ramping up performance of the marketing organization Ron Smith Age 33 Chicago, IL XYZ Retailer Marketing Manager Profile: Sees benefits and risks associated with marketing automation Medium technology affinity Looking to drive higher ROI across company for XYZ Retailer Upwardly mobile young manager: “I need to show that I can build a high-performance marketing team." IBM Solution Highlights: •IBM Marketing Operations increases the efficiency of marketing teams by gaining better control over their budgets and processes. IBM Marketing Operations helps marketers align resources to objectives, streamline production processes, track budgets and expenses, and improve team collaboration. The CMO has asked Ron to drive increasingly personalized marketing campaigns to stem the loss of high value customers to MNO Retailer. Ron recognizes that to do so his department needs to resolve some key issues that affect the implementation of the new campaign software. • Process bottlenecks cause campaigns to take longer to get off the ground. • Multiple marketing teams find it challenging to coordinate campaign scheduling ,resulting in inconsistent messaging across XYZ Retailer’s channels. • Inability to measure campaign effectiveness With IBM Marketing Operations, Ron improves marketing productivity by better managing projects, resources, teams, and approvals in a collaborative environment. With MO, Ron can: • Manage all the elements of the campaign execution process in a fully integrated environment, enabling the coordination of multi-wave retention campaigns. • Create an offer repository that delivers full offer management across the marketing suite, enabling better offer processing, productivity, and performance that dramatically reduces campaign cycle times. • Determine return on marketing investment (ROMI) and analyze how well campaigns fared against campaign KPIs.
  35. 35. © 2014 IBM Corporation35 Use Case #7: Advanced Market Basket Analysis – Take market basket analysis to the next level to provide more targeted offers Ron Smith Age 33 Chicago, IL XYZ Retailer Marketing Manager Profile: Sees benefits and risks associated with marketing automation Medium technology affinity Looking to drive higher ROI across company for XYZ Retailer Upwardly mobile young manager: “I need to show that I can build a high-performance marketing team." XYZ Retailer uses Market Basket Analysis to gain insight into what their average customer buys. This provides XYZ with analytics around whether customers are buying larger or smaller basket sizes and what products are in the baskets. But the CMO has asked Ron to see if they can leverage that data to provide more targeted offers. Ron decides to use the Market Basket Analysis data to determine segments of customers who buy similar items. Using IBM Campaign Ron can segment the market basket data and score the segmented data to determine 10 different types of baskets. Ron now has 10 segments of “customer like me buy baskets like this” and he can now provide offers based on that more targeted information IBM Solution Highlights: •Many retailers today are using market basket analysis to gain insight on what the average customer buys. This data doesn’t typically provide information around “what customers like me buy” or what segments to target. •With IBM Campaign the market basket data can be used to begin segmenting market baskets into similar patterns of baskets and then use customer data to score around basket sizes and segments to determine the appropriate next best offer for customers “likely to buy baskets or products like this”. IBM Solution Highlights: •IBM Campaign provides a much more granular level of customer segmentation and offering capabilities than most CRM systems. •IBM Campaign and Digital Analytics can not only monitor website activity, but can also measure response rates to campaigns. That is how customer data points are used to segment customers (e.g., high risk, high value, etc.) to build a profile for the appropriate actions. Combining customer buying behavior with market basket data retailers can improve campaigns and increase customer basket sizes
  36. 36. 36 Thank you. 36

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