Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

From Transactions to Relationships - Marketing Retail Perspective from IBM

1,035 views

Published on

Marketing challenges facing the CMO today. What do retailers need in order to meet the expectations of shoppers today?

Published in: Technology, Business
  • Be the first to comment

From Transactions to Relationships - Marketing Retail Perspective from IBM

  1. 1. © 2013 IBM Corporation From Transactions to Relationships: Connecting with a Transitioning Shopper Retail Industry Perspective Mike Handes Lead Marketing Solutions Consultant, A/NZ mhandes@au1.ibm.com
  2. 2. © 2013 IBM Corporation Smarter Marketing, IBM?  IBM Global Retail Consumer Study  Today the store, tomorrow where?  Showrooming, the small trend you can’t ignore  Connecting with transitioning shopper  IBM Omni-Channel Marketing Optimisation  Conclusion Agenda 2From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  3. 3. © 2013 IBM Corporation Why? Why is IBM investing in the CMO?
  4. 4. © 2013 IBM Corporation The CMO’s universe is changing… Customers know more Customers demand more Your business expects more Marketing must re-imagine its role 4
  5. 5. © 2013 IBM Corporation5 Two key imperatives for a new marketing profession, driven by analytics and insights 5 Creating a system of engagement that maximises value creation at every touch Understanding each customer or business as unique
  6. 6. © 2013 IBM Corporation What drives our strategy? 6
  7. 7. © 2013 IBM Corporation Over three years, these outperformers have achieved: • Nearly 2x gross profit growth • 3.4x net income growth • 2.4x stock price growth 20% 80% Adoptionofcross-channel optimisationtechnologies Ownership of the Customer Experience Source: IBM 2013 Global Survey of Marketers © 2013 IBM Corporation 7 Market Research
  8. 8. © 2013 IBM Corporation8 Marketers must integrate all aspects of marketing Earned media PR Owned media Paid media ad ad
  9. 9. © 2013 IBM Corporation complete UNDERSTANDING of each customer 1 9 What makes this hard? Earned media PR Owned media Paid media ad ad Most marketers lack: platform to take coordinated ACTION 2
  10. 10. © 2013 IBM Corporation  Smarter Marketing, IBM? IBM Global Retail Consumer Study  Today the store, tomorrow where?  Showrooming, the small trend you can’t ignore  Connecting with transitioning shopper  IBM Omni-Channel Marketing Optimisation  Conclusion Agenda 10From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  11. 11. © 2013 IBM Corporation Product categoriesAges surveyedIncome brackets Results were analyzed across income, generations and product categories 11 Upper n= 1569 Upper Middle n= 3931 Lower Middle n= 7140 Lower n= 8109 Generation (18-25) n= 3329 Generation (26-34) n= 5187 Generation (35-44) n= 5154 Generation (45-54) n= 4487 Generation (55-64) n= 3202 Generation (65+) n= 2107 Adult Apparel n= 3127 Kids Apparel n= 3062 Luxury Brands n= 1763 Personal Beauty n= 3120 Consumer Electronics n= 3090 Personal Health n= 3111 Shoes n= 3113 Home Decor n= 3080 From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  12. 12. © 2013 IBM Corporation Today the store, tomorrow where? 12From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  13. 13. © 2013 IBM Corporation A surprising one third of store shoppers are tempted to explore options other than the store for their next purchase 13From Transactions to Relationships: Connecting With a Transitioning Shopper Global View of store purchasers are not sure where they will buy next = “Store Undecided” 35% Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers Last Purchase Next Purchase 9% Online 35% Undecided 56% Store 2% Other 14% Bought online 84% Bought in a store
  14. 14. © 2013 IBM Corporation Showrooming, the small trend you can’t ignore 14From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  15. 15. © 2013 IBM Corporation *list of online-only retailers used for this analysis in the appendix Bought online from the same or different multi-channel retailer 66% Bought from a known* online- only retailer 34% One-third of showroomers bought from an online-only retailer, the other two-thirds from a multi-channel retailer 15From 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 6% Showroomed 2% Other 8% Bought online 84% Bought in a store
  16. 16. © 2013 IBM Corporation Connecting with transitioning shoppers Agenda 16From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  17. 17. © 2013 IBM Corporation Shoppers want retailers to provide personalized promotions and recommend relevant items 17From Transactions to Relationships: Connecting With a Transitioning Shopper Global View Interest in retailer 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% Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
  18. 18. © 2013 IBM Corporation Shoppers are willing to do the initial work, but it’s up to retailers to maintain personalization over the long term 18  Average time willing to spend in setup = 20 minutes  But 60% of shoppers will not revisit those preferences more than once a month Daily Several times a week Once a week Several times a month Once a month Less often From Transactions to Relationships: Connecting With a Transitioning Shopper Global View Nearly shoppers are willing to put in time with a retailer to set-up preferences, with the expectation that offers and communications will be personalized 9out of10 Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
  19. 19. © 2013 IBM Corporation  Smarter Marketing, IBM?  IBM Global Retail Consumer Study  Today the store, tomorrow where?  Showrooming, the small trend you can’t ignore  Connecting with transitioning shopper IBM Omni-Channel Marketing Optimisation  Conclusion Agenda 19From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  20. 20. © 2013 IBM Corporation How customers behave ad social search display ad Web mobile email ATM/kiosk phone branch POS mail customer
  21. 21. © 2013 IBM Corporation What they expect: coordinated marketing, integrated experience ad social search display ad Web mobile email ATM/kiosk phone branch POS mail customer marketer
  22. 22. © 2013 IBM Corporation What they experience: marketing silos ad social search display ad Web mobile email ATM/kiosk phone branch POS mail customer strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech strategy data process tech
  23. 23. © 2013 IBM Corporation Today’s discussion is about coordinated, integrated marketing IBM calls this OMNI-CHANNEL MARKETING
  24. 24. © 2013 IBM Corporation Omin-channel Marketing Optimisation, defined 24 Engaging each customer and prospect in a dialogue that builds upon their past and current behavior dialogues, not silos! Omni-channel Marketing
  25. 25. © 2013 IBM Corporation How can technology help? 25 Optimising omni-channel marketing is like having a good conversation. Marketers need to: LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK
  26. 26. © 2013 IBM Corporation How can technology help? 26 Optimizing cross-channel marketing is like having a good conversation. Marketers need to: LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK This is hard to do without help from technology! …and repeat this over and over again across many channels and even more customer relationships.
  27. 27. © 2013 IBM Corporation 27 LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK Creating a omni-channel marketing technology framework
  28. 28. © 2013 IBM Corporation 28 LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK Collect Decide Analyze Deliver Manage Creating a omni-channel marketing technology framework
  29. 29. © 2013 IBM Corporation 29 Collect Manage DecideAnalyze Deliver Creating a omni-channel marketing technology framework
  30. 30. © 2013 IBM Corporation Framework for omni-channel marketing 30 •Budgets •Projects •Reporting Collect Manage Analyze data to find actionable insights Collect data that augments each customer profile Decide on the best offer, action or communication for each customer Deliver engaging messages and capture reactions Manage budgets and processes and measure results DecideAnalyze Deliver
  31. 31. © 2013 IBM Corporation Data flow within the framework 31 •Budgets •Projects •Reporting Collect DecideAnalyze Deliver Manage Analyze data to find actionable insights Collect data that augments each customer profile Decide on the best offer, action or communication for each customer Deliver engaging messages and capture reactions Manage budgets and processes and measure results
  32. 32. © 2013 IBM Corporation Specific capabilities required for omni-channel marketing 32 •Budgets •Projects •Reporting Collect DecideAnalyze Deliver Manage •Predictive analytics •Visual data exploration •Event detection •Response attribution •Outbound campaign management •Real-time interaction management •Contact optimization •Distributed marketing •Email delivery and deliverability •Outbound fulfillment •Inbound touch-point integration •Lead routing & monitoring •Planning & budgeting •Performance reporting •Workflow & project management •Marketing asset management •Social & mobile profile •Access to existing data •Interaction history •Digital behavior
  33. 33. © 2013 IBM Corporation Choosing the best offer for customers and profits 33  Highly optimized offers for customers in loyalty program  Offers in statements - double digit increase in sales (17%) coupon response rates and profits  In store events led to year over year increase in sales and net profit (90% from 3 events)  Test and learn - ROI achieved (21% year over year )  Managing complex, massive loyalty program that includes 82% of the UK’s female population  Inefficient cross channel execution - website, email, kiosk, direct mail not used in a coordinated fashion  Inability to deliver relevant offers that are profitable for Boots and its product suppliers  Unica Campaign and Optimize for segmentation and drive highly targeted offers presented on loyalty statements and at in-store kiosks. The UK's leading pharmacy-led health and beauty retailer with nearly 2,500 stores from local community pharmacies to large destination health and beauty stores. Challenge Results Solution Customer Profile
  34. 34. © 2013 IBM Corporation  Smarter Marketing, IBM?  IBM Global Retail Consumer Study  Today the store, tomorrow where?  Showrooming, the small trend you can’t ignore  Connecting with transitioning shopper  IBM Omni-Channel Marketing Optimisation Conclusion Agenda 34From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
  35. 35. © 2013 IBM Corporation IBM is your trusted partner for marketing solutions  Leading solutions deliver results – Award-winning solutions for social, mobile, analytics, campaign management, customer experience  Confidence to navigate the changes ahead – Experience gained from thousands of clients and practitioners in every major industry  Ability to transform the customer experience – Capabilities and experience to transform to a customer- centric model 35

×