Primary Research in 14 Countries - Total Surveyed (Non-Grocery) = 23,466 . 1739 in Australia.I am very excited to be able to talk with you today about the findings of this global study of shopping behavior. This study is different from other studies IBM has done in the past - previously one of the major themes was the consumer's use of technology and how that has changed shopping behavior especially during the moments of research. Today’s study ‘From Transactions to Relationships: Connecting with a Transitioning Shopper’ dives deep into the different ways people shop across channels during this time of considerable transition.When we say transition, the research shows this was not a glacial pace transition. It was well underway for many shoppers. Consumers sent us signals about their openness to transition in their replies about their last shopping trip and their plans for the next shopping trip. The study teaches us quite a bit about consumer behavior and what our retail clients challenges will be in the very short-term. The study also drives IBM's strategy and how we can best partner with clients during this tumultuous time.
I often get asked, Why is IBM investing in marketing solutions and technology? What are the drivers/motivations? Doesn’t IBM just sell widgets and gadgets?
We all know that the world is changing, that the job of the marketer is to help find and keep a customer. Expectations from your customer have raised the bar for marketing. They are not just benchmarking you against your competitors, but against the best companies delivering the best customer experience. Creating a lot of complexity in the marketer’s world.Customers know moreThey compare notes and instantly share. And they can champion a brand or sully a reputation with the click of a mouse. 50% of smart phone owners have used their mobile phones to search for information in a store ComScore June 201150% of US consumers with a tablet or smartphone are using it while they are in front of the TV. Source: Nielsen, October201190% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. (Econsultancy, July 2009) Customer Demand More80% of CEOs think they deliver a superior customer experience, 8% of their Customers agree, Bain and Company, Close the Deliver Gap, 200588% of US Web buyers have abandoned an online shopping cart without completing a transaction,63% of all online adults said they would be less likely to buy from the same company via other purchase channels if they experienced a problem conducting a mobile transaction. (Tealeaf and Harris Interactive Mobile Transaction Survey)The business demand more of marketingIncreasing marketing being asked to measure/explain spending – top challenge from the IBM CMO surveyLeverage social for business benefitGuide interactions across more and more channels.
But what does this mean? I am sure none of this new news to you. Knowing your customers is key – talking to them as individuals – addressing their needs
So who are these leading marketers.We defined marketing leadership in the follow way: We segmented respondents based on how they clustered their answers around the highest rated end points of two survey questions.First, how extensive was their adoption of cross-channel technologies for online/offline - digital and traditional. And second, what was their level of influence in directing and managing the customer experience across all channels.To become a leading marketer, you had to answer yes to both questions. In our view, this approach underscored that leading marketers are an elite group: more effective at engaging their customers across channels; assuming broader levels of responsibilities; and, adopting technology to establish a line of sight on the how, why, what, where and when to communicate with customers on a personal level.But in order to let this guide your roadmap and strategic direction – you need evidenceSO we have collected empirical evidence to back it upLeading marketers assume ownership for customer experience and are progressively working to build a system of engagement
To build a meaningful relationship with “empowered customers,” businesses need to coordinate better all aspects of their customers’ experiences.The problem is that most marketing organizations still have many marketing groups that operate in silos. Some groups are organized by the communications media, channels and customer touchpoints they are responsible for – one group for advertising or other “paid” media, other groups for “owned” media – the company’s own Web site, emails, call centers, etc., yet other groups for “earned media” such as social media. Some groups handle other aspects of the “four Ps” of marketing, such as pricing, promotions and product mix decisions.Marketers need to bring together their marketing efforts across all these aspects of marketing, to create more coordinated, engaging customer experience.
Second, they lack a platform to manage all of marketing, which would make it easier to take action based on the insights from a complete understanding of each customer, and coordinate those actions in the way empowered customers demand. There are more moving parts than ever in today’s marketing organization, and managing all marketing efforts in a cohesive way is nearly impossible without the help of automation with software.IBM’s Enterprise Marketing Management (EMM) suite can help marketers in both of these areas.
Last Updated: 2010-10-01 (r2)Overview:Boots is the UK's leading pharmacy-led health and beauty retailer and they use Unica Campaign and Optimize for their marketing campaigns. Using their Advantage Card, Boots gathers deep customer insights and uses that data in Unica Campaign for segmentation. Then Unica Optimize is used to drive highly targeted offers presented on mailing statements and at kiosks in the stores. The statement mailing is generated with up to 12 personalized offers per customer based on their prior transactional buying trends; with Unica Optimize driving the final decision on which offers each customer receives on the statement. They also hold in-store events which promote products that earn customers double or triple points on their card. Challenges:Results:Since implementing Unica Campaign and Optimize, Boots has seen the following increases across three areas:1) Test and Learn Program (Targeted, segmented offers) – using Unica OptimizeTotal ROI on program of 193%Incremental sales increased 21% year over year (Incremental sales = actual cash through tills)2) Christmas Events in Stores (Offers based around advantage cards points – double or triple points for spending in stores)Incremental sales from loyalty card activity in the area of 9 figures (multi-million pounds).Three events leading to a 90% year over year increase in salesNet profit increase of 74%3) Mailed Statement Offers (evaluated quarterly and at the end of each fiscal year)a) October - Incremental sales increased 16% and profit increased 60% with higher margins and increased upsellCoupon response rates up 20%Response to Threshold offers up 50%b) January – Incremental sales increased 17% year over year and net profit increased 71%Material from 2010
CUSTOMIZE WRAP UP POINTS AS NEEDED FOR YOUR CUSTOMERFirst is IBM’s unmatched solutions serves the needs of marketers. There are thousands of marketing organizations that are using IBM’s award winning marketingsolutions. These marketers are from every major industry, and around the world – literally from six different continents. This means marketers buying EMM solutions from IBM have many best practices to leverage, peers to network with, and also that IBM can draw on the best practices of the world’s leading marketers to build its products.Second, IBM has both the broadest and deepest product functionality on the marketplace and can give you the confident to navigate the changes ahead. IBM has more marketing software modules that any other vendor, each module addressing an important marketing need. IBM gets top ranks from leading industry analysts, and is working every day to integrate these tools together. And you can expect this product leadership to continue, as IBM has made a strategic commitment to marketing software.Finally, IBM has a groundbreaking vision for the future of its marketing software offering that will help you with your customer experience goals. The vision for IBM’s Marketing solutionsis to continue to drive marketing into the very fabric of Smarter Commerce and breakdown silos across business functions. IBM sees the future of marketing software as being made up of best in class software, services, as well as the new and emerging requirements of CMOs and marketing practicioners around the world.
From Transactions to Relationships - Marketing Retail Perspective from IBM