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Merging Online & Offline to Deliver Omni-Channel Experiences, Performics & Kohl's (Medill Retail Analytics Council June 2015)

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Performics & Kohl's talk about the journey that agencies and retailers are taking to omni-channel performance marketing success to align with shopper needs.

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Merging Online & Offline to Deliver Omni-Channel Experiences, Performics & Kohl's (Medill Retail Analytics Council June 2015)

  1. 1. Merging Online & Offline to Deliver Omni-channel Experiences: A Journey from Measurement to Merchandising to Management
  2. 2. Michael Kahn CEO Performics Chris Duncan Vice President, Strategic Marketing Kohl’s
  3. 3. Performics A performance marketing agency network focused on the relentless pursuit of results
  4. 4. Kohl’s A leading specialty department store focused on inspiring and empowering families to lead fulfilled lives
  5. 5. The digital of everything is driving this retail journey Executive Summary The evolution and revolution required to master this journey is evergreen and relentless Mastery will be built on data, measurement, platforms and technology…strategic infrastructure to drive strategic management and engagement across channels, screens and platforms
  6. 6. An Agency Perspective: Our Omni-Channel Journey
  7. 7. Performics Journey 1998 Performics launches network to drive online sales for catalogers 2001 Performics adds paid search as distribution channel 2003 Performics adds organic search as distribution channel 2009 Performics adds social & display as distribution channels 2011 Analytics practice evolves to address cross channel needs (search to display and social) Biddable Media Scale & Efficiency Technology & Platform Integration Data-Driven Content & Optimization 2015 Attribution Media Mix DMP Performics Omni-Channel Evolution 2012 - 13 Mobile reaches critical mass: strategy, optimization and measurement focus on cross channel and online – offline dimensions 2005 Performics initiates analytics build out focused on clicksteam PROJECT * Extra Resources Involved * Digital Personas 1 3 4 1 0% * Performance Content & Site Audit 1 1.5 2 1 0% * Media Channel Audit 1 1.5 2 1 0% * Consumer Digital Journey (CDJ) 4 3 7 1 0% * Tech Stack Recommendation 1 1 2 1 0% * Advanced KPI Development 7 1 8 1 0% * Attribution - Recommendation 9 2 10 1 0% * Opportunity Assessment 11 1 12 1 0% * Partner Governance Strategy 11 1 12 1 0% * B.I. Strategy 11 1 12 1 0% Elevation Roadmap START DURATION REVIEW START REVIEW DURATION PERCE COMPL
  8. 8. How Do We Avoid Data Paralysis? How Do We Create Fully Connected Experiences? Questions Our Clients Are Asking How Do We Better Understand Consumers?
  9. 9. NON-BUYERS BUYERS acquisition of retention of enjoy aware buy unaware consider Ultimately, How Do We Win in the Decision Point Battleground?
  10. 10. Changing Consumer Behavior Driving Omni- Channel Demands
  11. 11. More Touch-points, Channels & Devices than Ever Before . . . Stimulus Awareness TV, OOH, Display Zero Moment of Truth (ZMOT) Decision before Store Search, Social, CSE First Moment of Truth (FMOT) In-Store Product Placement, Packaging, Signage Source: Google/Shopper Sciences, Zero Moment of Truth Macro Study (N=5,003)
  12. 12. 72% said physical stores are important in shopping Compared with 67% who rated the Internet similarly 73% people research online, then buy in-store PwC, Total Retail 2014 Survey Physical & Virtual Shopping have Merged . . .
  13. 13. With Mobile at the Center . . . Source: Google/IPSOS (May 2014)
  14. 14. Marketers Working To Keep Pace
  15. 15. Marketers Agree: Omnichannel is Key • As consumers bounce from device to device, brands are trying to figure out how to track them • 67% of marketers state that integrating all marketing activities across channels is a main goal Econsultancy Cross-Channel Marketing Report 2014
  16. 16. But this Doesn’t Mean Marketers are Delivering It Econsultancy Cross-Channel Marketing Report 2014
  17. 17. Major barriers to implementing an omni-channel approach include: Lack of appropriate tools/tech Available media options not optimized Lack of addressable data sources Substantive Obstacles To Be Solved For
  18. 18. Elevating Our Practice for Omni-Channel Success
  19. 19. Uncovering Intent Planning for a Digitally-Bridged Store Future Digital Maturity Mapping
  20. 20. Focusing on the data that matters Searches for store increase by 33% Average online sale $45 Find her where she’s active Fall campaign ads drive 9 million impressions Women aged 19-29 value price over brand 1,209 active SKUs on display Recent searches Coupon website Leather jacket customer review Top fall trends for 2014
  21. 21. Data that uncovers consumer intent The largest marketing variable. It shapes queries, dictates paths-to-purchase & mediates meaningful inter-actions with brands regardless of channel, media or content type.
  22. 22. Our Work To Uncover Intent The process of identifying intent & applying that insight toward improving brand engagement to drive measureable performance
  23. 23. • Primary research • Brandwatch • SocialTools • Benchtools • eMarketer • Forrester Research Initial Intent Hypothesis Planning & Insights Refined Intent Hypothesis Analytics + Planning & Insights Testing, Learning, Scaling Analytics PlanAlytics Outputs Sourcesof Data • Glance • Google Analytics • CRM Data • YouTube Analytics • Bluekai • Axiom • Client Brief • Draft KPIs • Tech & Data Audit • Content Audit • Digital Maturity Plan • CX Loop • Audience Segmentation • Learning Agenda • Organizing Idea • Brand Experience Map • Performance Strategy, Activation & Optimization Process
  24. 24. Digital Maturity Mapping: Four Strategic, Data Infused Areas Business Intelligence Fully Attributed Media Audience-centric Advertising Predictive Analytics Deep integration with CRM and DMP systems creates hyper-relevant customer experiences Maximize return & scale through performance budget allocation based on optimal spending scenarios Aligning with seasonality, new arrivals & promotional events maximizes investment Unified reporting provides omni-channel single point of view of customers
  25. 25. Digital Maturity Mapping: Elevational Roadmap Fully Attributed Assets Business Intelligence Multi-Channel Reporting Attribution & Budget Planning Flighting Strategy Based on Attribution Findings & Forecasts CRM Enabled Search Multi-Touch Attribution Audience-centric Media Predictive Analytics Mobile Search Geo-Specific & On-Site User Experience GDN Call Metrics Tracking New Customer Attribution Site Design and Conversion Optimization Integrate SEM + SEO Reporting Local PLA Extension YouTube TrueView Shared Media Plans Report Automation Channel Specific Regression Models Dynamic Media & Content Delivery Customer Decision Engines Basics Competitive Standard Market Leading Personalized Experiences at Scale All Channel Valuation Media Mix Driven Activation
  26. 26. Business Intelligence Automated omni- channel reporting provides +50% reduction in reports generation Predictive Analytics Predicating demand based on seasonality drives +15% margin, -8% spend in paid search Fully Attributed Media Cross-channel budget allocation finds that Search + display together drive 80% more conversions Audience-centric Advertising Using CRM to create hyper-relevant experiences wins 2X conversion increase Digital Maturity Mapping in Action Tech Retail Tech Tech
  27. 27. • Mobile drove significant traffic to stores • 3.1X lift in-store visits over control audience (unexposed group) • 2.3X lift of the exposed audience vs. the general population (consumers who may shop at retailer) Planning for a Digitally-Bridged Store Future We tracked store visitations as a control vs. exposed context to prove out a campaign’s true ROICapture device surrounding store More and more shoppers doing both
  28. 28. Entrance Checkout Endcaps Category Walmart: Physical Gets Digital In-store Shopping App
  29. 29. Allow for in-person pickups Centers in close customer proximity Amazon: Digital Gets Physical In Q1 2015, opened a pickup and drop-off location on the campus of Purdue University Students could order everything from textbooks to mac and cheese to pickup
  30. 30. A Retailer Perspective: Our Omni-Channel Journey
  31. 31. 1999 Kohls.com founded 2012 Launch of first mobile apps 2012 Launch in-store WiFi 2013 Re-platform of Kohls.com 2014 Launch Ship from Store 2014 Launch BOPUS test 2014 New mobile experiences – t.com & mobile apps 2015 Full chain roll out of BOPUS 2015 Launch multi-touch attribution Kohl’s Omni-Channel Evolution Omni- channel planning
  32. 32. Omni-Channel Measurement Consumers, devices and the changing media landscape have added complexity Internal Alignment Building consensus and proving what we think to be true Merchandising Marketing Marketing’s success and overall efforts Omnichannel Management Combining measurement, alignment, and execution to become great Today, Our Key Challenges Are . . .
  33. 33. Challenge #1: Measurement is More Complicated than Ever Channel (both marketing & shopping) performance is measured separately, causing gaps in visibility and limiting optimization The changing technology landscape makes ongoing scrutiny and internal education necessary to stay ahead Media is managed by diverse partners without a completely neutral source to measure success and develop strategy MEASUREMENT GAPS A cross-channel organization requires more resources and a different type of experience that may not be available MEDIA SILOS LIMITED RESOURCES RAPID TECH ADVANCEMENT
  34. 34. Marketers Agree: Marketing Analytics are Contributing Less • Contribution from marketing analytics has stayed relatively flat over the last 3 years • This year, CMOs say analytics are actually helping them less now than they were in 2012 • Technology and data should provide ways for us to solve this
  35. 35. More Mobile, More Problems Cross-Device Location Accuracy Offline & Online Attribution Mobile Targeting Privacy
  36. 36. Mobile Is Still Not Integrated Econsultancy Cross-Channel Marketing Report 2014
  37. 37. Measurement Approach A: Customer Matched Analysis • Customers who engage with us digitally that we can track vs. similar customers that don't Positive Simple to execute & measure Negative Not a complete picture; hard to make media decisions. Limited by what we can actually track. Summary Helps us directionally understand what digital is doing for our offline business
  38. 38. Measurement Approach B: Market Test v. Control • Increase spend in digital channels in distinct DMAs & measure vs. similar DMAs where we didn’t increase spend Positive Helps understand how high is high, and how much impact we can truly have on our store business Negative Doesn’t help us understand customer behavior or media impacts Summary Simple view but it satisfies the most important stakeholders (CFO, CMO)
  39. 39. Measurement Approach C: Multi-Touch Attribution • Accounting for ALL media touch-points & ALL customer sales (where we’re headed) Positive Best picture of how customers engage with media & accurately gives credit to all channels. Enables quick decisions on specific KPIs. Negative Very hard to setup & track. Process has been 18 months+ in the making. Reliant on tracking of customers Summary Go-forward best practice for most omni-channel brands
  40. 40. Challenge #2: Internal Alignment & Merchandising • Market ourselves • Showcase results • Build trust BUILD TRUST INTERNAL EDUCATION • Explain to teams • Overcome skeptics • Prove what people already know is true REALLOCATE BUDGETS • Take from print • Explain why this is better
  41. 41. Major barriers omni-channel success include: Managing offers across campaigns Resources & coordination across departments/brands Adequate staff, IT, data support Marketers Agree: Omni-Channel is Difficult • However, it is worthless if we don’t put it to good use by: – Scaling it – Effectively managing at the speed of retail • What we’re building, and the analytics & data that we manage will make us great
  42. 42. Importance of Omni-Channel Management +80% of Online Purchases are multi-touch conversions (Either same marketing channel or multiple channels) of Online Purchases are multi-channel conversions (Result of customer interacting with multiple channels, i.e. search/affiliate/social) +70%
  43. 43. How Kohl’s is Approaching Omnichannel Management Aligned Priorities • All parties must have the same goals: • e.g. managing spend to maximize sales/margin is different than maximizing to drive new customers The speed at which consumers change & interact with media happens so fast. What took place last month may change this month. Willingness to Change • Soliciting feedback from partners, customers & associates • They can help you understand & get ahead of the changes Strong Feedback
  44. 44. Kohl’s Omni-Channel Success
  45. 45. The digital of everything is driving this retail journey Executive Summary The evolution and revolution required to master this journey is evergreen and relentless Mastery will be built on data, measurement, platforms and technology…strategic infrastructure to drive strategic management and engagement across channels, screens and platforms
  46. 46. Questions?
  47. 47. Thank You! Michael Kahn Global CEO, Performics Michael.Kahn@Performics.com Chris Duncan VP, Strategic Marketing, Kohl’s Christopher.Duncan@Kohls.com

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