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Segments of One

Dr. Dario de Judicibus
dejudicibus@it.ibm.com
+39.335.7622476
14 December 2012

Version 0.40

IBM Corporation © 2012 - All rights reserved
Understand each customer as an individual

Brands already know how
to divide their audience
into broad groups

Now it is time to create
unique individual targeting

14 December 2012

IBM Corporation © 2012 - All rights reserved
Multichannel commerce no longer makes sense

Customers no longer interact
with companies from a
channel perspective

Instead they interact
through touch points

14 December 2012

IBM Corporation © 2012 - All rights reserved
A 360-degree data connection strategy

Transac
tions

Transaction
Data
Orders

Harness and connect the data
not just from traditional
marketing channels

Paymen
t
history

Usage
history

Purchas
e
stage

But from all touchpoints the
company has

Email /
Chat

Call
center
notes
Inperson
dialogs

14 December 2012

Web
clickstreams

Interaction
Data

IBM Corporation © 2012 - All rights reserved
Link all the data lying outside your enterprise
Professional
Data

Budget
authorit
y

Transact
ions

Transaction
Data
Orders

Job
history

Customers may voluntarily
offer this data to companies

Paymen
t
history

Professi
onal
member
ships

Usage
history

Offering
preferen
ces

in exchange for a more
personalized, customized,
relevant experience

Purchas
e
stage

Email /
Chat

Preferre
d device

Call
center
notes

Hobbies

Individual
Data

14 December 2012

Social
activity

Inperson
dialogs

Web
clickstreams

Interaction
Data

IBM Corporation © 2012 - All rights reserved
Turn your understanding to become predictive
Professional
Data

Budget
authorit
y

Transact
ions

Transaction
Data
Orders

Job
history

To use analytics to predict
needs, desires and propensity

Paymen
t
history

Professi
onal
member
ships

Usage
history

Offering
preferen
ces

Focus on leadership,
culture, skills and
technology platform

Purchas
e
stage

Email /
Chat

Preferre
d device

Call
center
notes

Hobbies

Individual
Data

14 December 2012

Social
activity

Inperson
dialogs

Web
clickstreams

Interaction
Data

IBM Corporation © 2012 - All rights reserved
Create value for every individual at every touch

Offer

Product

Increase your ability to be
personal, relevant to customers
Knowledge

by focusing on
human behaviors and
enabling technologies

Advice

Network

14 December 2012

IBM Corporation © 2012 - All rights reserved
Ensure that your system of engagement scales

Interact as a company with a
single customer as an individual

do it at massive scale,
and run analytics to determine
what to build next

14 December 2012

Digital Analytics

Customer Segmentation

Customer Predictive Analytics

Attribution Modeling

Business Intelligence

Future portfolio of products, services, knowledge,
and experiences

IBM Corporation © 2012 - All rights reserved
Leverage on segments of one
Segments of one

sɛ́gmənts ə́v wə́n
Micro-segments that target each customer uniquely, allowing the
companies to convert visitors into long-term, high-value customers
at very high rates.
Individual leverage

Group leverage

The more the customer interacts with the
brand by any touchpoint, the more the
brand learn about him/her, and the finer
the segmentation gets.

The more the brand can identify other
customers like the one who is interacting
by any touchpoint, the more the brand can
pattern match.

14 December 2012

IBM Corporation © 2012 - All rights reserved
Select the right technology
The ability to move an organization to next-best-action marketing is
the result of three significant technology developments coming
together over the last several years:
EIT

SOA

AI

The adoption of performing
infrastructures based on enterprisewide servers, storage arrays, and
complete data centers to efficiently
manage big data.

Increased use of service-oriented
architecture
that
allows
to
incrementally change the systems
and adapt them to the changes of
the marketplace.

The coming of age of artificial
intelligence techniques, which allow
for the creation of model factories
to help achieve better alignment
between IT and business.

14 December 2012

IBM Corporation © 2012 - All rights reserved
Be smarter, be holistic
IBM Smarter Commerce and Smarter Analytics offering provides
enterprises with all solutions and competencies necessary to
implement a holistic approach to the new challenges of marketing.
Transform
Align
Anticipate
Business Analytics
& Optimization

Act
Learn

Smarter
Commerce

Social
Business

14 December 2012

IBM Corporation © 2012 - All rights reserved
Thank you

14 December 2012

IBM Corporation © 2012 - All rights reserved

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Segments of one: the new consumer in the mobile era

  • 1. Segments of One Dr. Dario de Judicibus dejudicibus@it.ibm.com +39.335.7622476 14 December 2012 Version 0.40 IBM Corporation © 2012 - All rights reserved
  • 2. Understand each customer as an individual Brands already know how to divide their audience into broad groups Now it is time to create unique individual targeting 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 3. Multichannel commerce no longer makes sense Customers no longer interact with companies from a channel perspective Instead they interact through touch points 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 4. A 360-degree data connection strategy Transac tions Transaction Data Orders Harness and connect the data not just from traditional marketing channels Paymen t history Usage history Purchas e stage But from all touchpoints the company has Email / Chat Call center notes Inperson dialogs 14 December 2012 Web clickstreams Interaction Data IBM Corporation © 2012 - All rights reserved
  • 5. Link all the data lying outside your enterprise Professional Data Budget authorit y Transact ions Transaction Data Orders Job history Customers may voluntarily offer this data to companies Paymen t history Professi onal member ships Usage history Offering preferen ces in exchange for a more personalized, customized, relevant experience Purchas e stage Email / Chat Preferre d device Call center notes Hobbies Individual Data 14 December 2012 Social activity Inperson dialogs Web clickstreams Interaction Data IBM Corporation © 2012 - All rights reserved
  • 6. Turn your understanding to become predictive Professional Data Budget authorit y Transact ions Transaction Data Orders Job history To use analytics to predict needs, desires and propensity Paymen t history Professi onal member ships Usage history Offering preferen ces Focus on leadership, culture, skills and technology platform Purchas e stage Email / Chat Preferre d device Call center notes Hobbies Individual Data 14 December 2012 Social activity Inperson dialogs Web clickstreams Interaction Data IBM Corporation © 2012 - All rights reserved
  • 7. Create value for every individual at every touch Offer Product Increase your ability to be personal, relevant to customers Knowledge by focusing on human behaviors and enabling technologies Advice Network 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 8. Ensure that your system of engagement scales Interact as a company with a single customer as an individual do it at massive scale, and run analytics to determine what to build next 14 December 2012 Digital Analytics Customer Segmentation Customer Predictive Analytics Attribution Modeling Business Intelligence Future portfolio of products, services, knowledge, and experiences IBM Corporation © 2012 - All rights reserved
  • 9. Leverage on segments of one Segments of one sɛ́gmənts ə́v wə́n Micro-segments that target each customer uniquely, allowing the companies to convert visitors into long-term, high-value customers at very high rates. Individual leverage Group leverage The more the customer interacts with the brand by any touchpoint, the more the brand learn about him/her, and the finer the segmentation gets. The more the brand can identify other customers like the one who is interacting by any touchpoint, the more the brand can pattern match. 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 10. Select the right technology The ability to move an organization to next-best-action marketing is the result of three significant technology developments coming together over the last several years: EIT SOA AI The adoption of performing infrastructures based on enterprisewide servers, storage arrays, and complete data centers to efficiently manage big data. Increased use of service-oriented architecture that allows to incrementally change the systems and adapt them to the changes of the marketplace. The coming of age of artificial intelligence techniques, which allow for the creation of model factories to help achieve better alignment between IT and business. 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 11. Be smarter, be holistic IBM Smarter Commerce and Smarter Analytics offering provides enterprises with all solutions and competencies necessary to implement a holistic approach to the new challenges of marketing. Transform Align Anticipate Business Analytics & Optimization Act Learn Smarter Commerce Social Business 14 December 2012 IBM Corporation © 2012 - All rights reserved
  • 12. Thank you 14 December 2012 IBM Corporation © 2012 - All rights reserved