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Forrester Webinar - Individualization Versus Personalization

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See the differences between these to marketing methods and how major shopping sites are utilizing more individualized marketing solutions to drive customer engagement

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Forrester Webinar - Individualization Versus Personalization

  1. 1. © 2016 Forrester Research, Inc. Reproduction Prohibited 2 Empowered customers have given rise to a new era Age of manufacturing Mass manufacturing makes industrial powerhouses successful •  Ford •  Boeing •  GE •  RCA Age of distribution Global connections and transportation systems make distribution key •  Wal-Mart •  Toyota •  P&G •  UPS Age of information Connected PCs and supply chains mean those that control information flow dominate •  Amazon •  Google •  Comcast •  Capital One Age of the customer Empowered buyers demand a new level of customer obsession •  Macy’s •  Salesforce.com •  USAA •  Amazon
  2. 2. © 2016 Forrester Research, Inc. Reproduction Prohibited 3 Customers Are empowered ›  Before, organizations owned the experience and the commerce tech. ›  But tech in customers hands has given them more choice and more control. ›  Customers now demand experiences along their journey that work them.
  3. 3. © 2016 Forrester Research, Inc. Reproduction Prohibited 4 Delivering On All Five Market Imperatives Is The Key To Success In The Age Of The Customer Drive business growth with privacy Turn big data into business insights Embrace the mobile mind shift Accelerate your digital business Transform the customer experience Age of the customer
  4. 4. © 2016 Forrester Research, Inc. Reproduction Prohibited 5 Each time a customer is exposed to an improved shopping experience, their shopping expectations are reset to a new higher level.
  5. 5. © 2016 Forrester Research, Inc. Reproduction Prohibited 6 Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015 Experience Is A Significant Factor In Every Shopper’s Journey 68% “I am unlikely to return to a website that does not provide a satisfactory customer experience.”
  6. 6. © 2016 Forrester Research, Inc. Reproduction Prohibited 7 Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015 Experience is a significant factor in every online shopper’s journey 7%* of consumers agree with statement “Email offers are usually well timed with my needs.”
  7. 7. © 2016 Forrester Research, Inc. Reproduction Prohibited 8 Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015 Experience is a significant factor in every online shopper’s journey 7%* of consumers agree with statement “Email offers are usually well timed with my needs.” * In 2015, it was 9%!
  8. 8. © 2016 Forrester Research, Inc. Reproduction Prohibited 9 Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 ‘15 Source: Forrester's Q2 ‘16 Global eBusiness And Channel Strategy Professional Online Survey 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience. 89% of eBusiness and channel strategy professionals plan to invest in personalizing the customer experience in 2016/2017. Personalization is being prioritized due to its impact on customer experience
  9. 9. © 2016 Forrester Research, Inc. Reproduction Prohibited 10 Personalization is a Top eBusiness priority Base 196 eBusiness And Channel Strategy Professionals Source: Forrester’s Q3 2015 Global eBusiness And Channel Strategy Professional Online Survey “Of the tech you will be investing in during 2016, please identify your top priorities?” 1.  Responsive Web Design 2.  Personalization Technology 3.  Customer Relationship Management Tools 4.  Mobile App and Engagement Platform 5.  Product Recommendations 6.  eCommerce Platform 7.  Site, Payment, System Security Compliance/Protection 8.  Big Data 9.  Site Search 10.  Customer Insights and Analytics Tools
  10. 10. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 75% 55% 49% 44% 32% 28% Content on the website Promotions/product offers Product recommendations Reminders and alerts Content on the mobile app experience Screen layout What parts of the experience are you personalizing? (click all that apply) Investments in online personalization now go beyond product recommendations
  11. 11. 12© 2016 FORRESTER. REPRODUCTION PROHIBITED. 26% 33% 34% 44% 51% 54% 54% 59% 72% 0% 20% 40% 60% 80% Making the store easy to browse for customers Ensuring that we always have competitive prices Providing self service technologies for shoppers Improving the knowledge of associates Making it convenient to purchase (short checkout lines, curbside pickup, buy online and pick up in store) Ensuring that we always have the products customers want Making it easy for customers to find the products they are looking for Making the store more engaging Personalizing the customer experience For your organization / company, what are the main opportunities for improving the customer experience at your company's stores? (Please choose your top 5 only.) Source: Base: 61 eBusiness and Channel Strategy professionals Source: Forrester's Q2 2016 Global eBusiness And Channel Strategy Professional Online Survey In an omnichannel world, in-store personalization also ranks top of the list
  12. 12. © 2016 Forrester Research, Inc. Reproduction Prohibited 13 Leading luxury retailers are recognizing the gap that segmentation creates for personalizing customer experiences
  13. 13. © 2016 Forrester Research, Inc. Reproduction Prohibited 14 Other Products Me Product Product Segmentation Personalization has historically been driven by segmentation
  14. 14. © 2016 Forrester Research, Inc. Reproduction Prohibited 15 Other Products Personalization has historically been driven by segmentation Me Product Product Segmentation Personalization based on segmentation provides the “wrong” experience for most of your customers.
  15. 15. © 2016 Forrester Research, Inc. Reproduction Prohibited 16 D epth Reach Relationship E XPL OR E US E AS K E NGAGE DIS C OVE R BUY Single data points are often used to personalize the entire customer journey Me X Single data point
  16. 16. © 2016 Forrester Research, Inc. Reproduction Prohibited 17 D epth Reach Relationship E XPL OR E US E AS K E NGAGE DIS C OVE R BUY Single data points are often used to personalize the entire customer journey Me X Single data pointJust because you know one thing about the customer doesn’t mean you know everything about the customer.
  17. 17. © 2016 Forrester Research, Inc. Reproduction Prohibited 18 Organizations too quickly check the box on delivering “personal” experiences
  18. 18. © 2016 Forrester Research, Inc. Reproduction Prohibited 19 Organizations too quickly check the box on delivering “personal” experiences It is a waste of everyone’s time to personalize experiences that provide no real value to a customer’s journey.
  19. 19. Retailers must be careful to understand and respect personal boundaries
  20. 20. Golden Rule: be overt about collecting personal data, but covert about communicating what you know about the customer.
  21. 21. eBusiness leaders must help organizations prepare for the next evolution of personalization, which will rely more on the pillars of individualization rather than segmentation.
  22. 22. © 2016 Forrester Research, Inc. Reproduction Prohibited 23 Q1: How Successful Are You When You Get Personalization Right?
  23. 23. © 2016 Forrester Research, Inc. Reproduction Prohibited 24 Q2: How Successful Would You Be If You Got Personalization Right More Often? Q1: How Successful Are You When You Get Personalization Right?
  24. 24. © 2016 Forrester Research, Inc. Reproduction Prohibited 25 To start: You can only truly personalize experiences for consumers you recognize
  25. 25. Today’s social-sharing customers are looking for brands to understand them.
  26. 26. © 2016 Forrester Research, Inc. Reproduction Prohibited 27 Email & mobile phone # (for SMS) are both simple ways to consistently identify customers
  27. 27. © 2016 Forrester Research, Inc. Reproduction Prohibited 28 Retailers must utilize digital across the entire customer journey using two systems Capture & Understand Communicate & Automate
  28. 28. © 2016 Forrester Research, Inc. Reproduction Prohibited 29 A solid individualization strategy is built upon key technology investments that have four unique characteristics.
  29. 29. © 2016 Forrester Research, Inc. Reproduction Prohibited 30 1. Customers are identified and treated as a segment of one using rich customer profiles.
  30. 30. © 2016 Forrester Research, Inc. Reproduction Prohibited 31 2. Customer data is assessed in real-time and dynamically calculates intent.
  31. 31. © 2016 Forrester Research, Inc. Reproduction Prohibited 32 3. Personalized content is delivered equally across every screen and channel.
  32. 32. © 2016 Forrester Research, Inc. Reproduction Prohibited 33 4. Connected technologies enable far richer and more relevant engagements.
  33. 33. © 2016 Forrester Research, Inc. Reproduction Prohibited 34 What should I be doing today?
  34. 34. Not a revolution . . . but rather an evolution
  35. 35. . . . it is a business strategy that drives tactics and affects every part of an organization. Individualization is not a tactic . . . Security and risk Enterprise architecture eCommerce Application design Merchandise planning Marketing Customer insights Customer experienceIndividualization: engaging customers as a segment of one in real time by listening, capturing, measuring, assessing, and addressing intent across every enterprise touchpoint.
  36. 36. © 2016 Forrester Research, Inc. Reproduction Prohibited 37 What are the first steps for building an individualization strategy?
  37. 37. © 2016 Forrester Research, Inc. Reproduction Prohibited 38 ›  Consolidate customer data from both internal databases and external partners into a single customer data repository. Strategic opportunities for improved personalization
  38. 38. © 2016 Forrester Research, Inc. Reproduction Prohibited 39 ›  Consolidate customer data from both internal databases and external partners into a single customer data repository. ›  Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions. Strategic opportunities for improved personalization
  39. 39. © 2016 Forrester Research, Inc. Reproduction Prohibited 40 ›  Consolidate customer data from both internal databases and external partners into a single customer data repository. ›  Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions. ›  Design each digital touchpoint to both use and collect customer data. Strategic opportunities for improved personalization
  40. 40. © 2016 Forrester Research, Inc. Reproduction Prohibited 41 ›  Consolidate customer data from both internal databases and external partners into a single customer data repository. ›  Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions. ›  Design each digital touchpoint to both use and collect customer data. ›  Take off blinders and consider the kind of customer data that can be captured in one touchpoint for creating personalization in others. Strategic opportunities for improved personalization
  41. 41. © 2016 Forrester Research, Inc. Reproduction Prohibited 42 ›  Consolidate customer data from both internal databases and external partners into a single customer data repository. ›  Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions. ›  Design each digital touchpoint to both use and collect customer data. ›  Take off blinders and consider the kind of customer data that can be captured in one touchpoint for creating personalization in others. ›  Be overt in collecting data (explain why), covert in delivering personalization (provide great experiences without explaining). Strategic opportunities for improved personalization
  42. 42. Individualization done right doesn’t look like personalization…
  43. 43. Individualization done right doesn’t look like personalization… …it just looks like a great experience.
  44. 44. Individualization Use Cases & Results Doug Berg CEO, MyAlerts
  45. 45. Sites Doing Individualized Alerts
  46. 46. Marketing Needs To Change
  47. 47. Let Consumer Design / Own Their Marketing
  48. 48. Types Of Individualization Availability Favorites Wish List Alerts Sale Alerts New Products Review Alerts Registry Alerts Private Offers Reminder Alerts Demand Insights
  49. 49. Captures Passive Intent For Future •  Minimal Same Day Visitor/ Buyer Drop •  Captures All Future Intent For Each Product
  50. 50. Recaptures Past Interest & Reduces Erosion •  6,400+ Customers Signed Up •  4,164 Returned To Site •  Pull’s Forward Past Interest •  Reduces Margin Erosion
  51. 51. Visibility & Interaction With Intent Graph 921K Active Customers $113M In Future Potential
  52. 52. Turn Frustration Into Future Sales As High As 40% Of Customers Will Opt-In To Hear About Future Product Availability •  3,600+ Average Users Per Day •  $216K Average Future Rev Per Day
  53. 53. Delights Customers & Recaptures Interest As High As 50% Return To Purchase
  54. 54. More Strategic Merchandising & Planning
  55. 55. Product Pre Release Alerts Captured thousands of customers ahead of the product launch
  56. 56. Gain Demand Visibility
  57. 57. Chat Bots For In Store Capture Text “Alert” To 855- ALERTS5 Alert What product do you want alerts for? The DJI Phantom Drone Accessory Kit Is this it? Polar Pro Filters DJI Phantom 4 Accessory Kit for $37.99 Yes I see it’s out of stock, would you like a SMS or Email alert when it’s back? SMS OK We’re On It! We’ll Text you when it’s available
  58. 58. Let Customers Tune In To What They Want
  59. 59. Deliver Relevancy They Want (Me-Mail)
  60. 60. Learn What Your Customers Want
  61. 61. Captures & Drives Future Intent
  62. 62. Making Every Customer A Segment Of 1
  63. 63. Customer Designed Alerts Turns Navigation Into An Opt In Menu
  64. 64. Delivering Nearly 100% Relevancy
  65. 65. Drives Social Media Levels Of Engagement Multiple Visits Per Week
  66. 66. Easy User Controls At Interest Levels Get Away From This To Product, Category, And Brand Level
  67. 67. Wish List > Watch List Adds Alerting Capabilities To Any Wish List Every Product Added To List Becomes Alert
  68. 68. Wish List > Watch List
  69. 69. Wish List > Watch List Before Alerting After Alerting •  Nearly 10X Higher Engagement Rate •  40% Return To Site Monthly
  70. 70. Reminder Alerts Allow Customers To Set Reminders
  71. 71. Move From Historical To Future Focused
  72. 72. Capture Future Revenue
  73. 73. Automated Monitoring & Messaging Engine
  74. 74. Capture Intent On Every Visit
  75. 75. How Individualization Compares
  76. 76. Individualization Benefits
  77. 77. forrester.com Thank you Brendan Witcher bwitcher@forrester.com +1 617.613.6315 Doug Berg doug@myalerts.com +1 952.200.4233

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