Accenture Interactive | Point of View SeriesMonetizing thePersonal TouchGear up to meet the multichannelmarketing challenge
Monetizing the Personal TouchGear up to meet the multichannel marketing challengeDigital disruption is the new Customers always look for convenient and enjoyable as possible. Other examples include personalized services—the right product in Ahold’s Stop & Shop supermarket chain,normal. No longer confined to a the right place at the right time. Sounds which has been delivering timely in-storechannel or a standalone strategy, simple—and it was when products were few, promotions to customers through its hand-digital is now a core reality. shops consisted of the general store or local held shopping application for a number ofAs consumers interact across high street, and retail hours were from nine years; and retail powerhouse Walmart ischannels on a daily basis, so to five, six days a week. But in today’s digital aligning its in-store video streaming to be marketplace where customers can literally as relevant as possible to customers whocompanies need to maintain get anything, anywhere, anytime, knowing shop in specific aisles where the monitorsan omnichannel presence. how to deliver a personalized service and are installed. When Whole Foods Market, making it cost effective are no longer the natural and organic supermarket chain,In today’s always-on, always- simple tasks. learned that many on-the-go clients,connected world, mailboxes— especially in cities like New York, just don’t The success that companies such as eBayboth virtual and physical—are cook at home, it not only started stocking its and Amazon in the United States, Taobao in aisles with tasty precooked foods, but alsooverflowing, a myriad of online China, and Rakuten in Japan are enjoying created a welcoming in-store ‘shared table’stores and traditional providers through delivering a tailored and relevant to encourage customers to stay back, enjoyare vying for a share of the online experience is well documented. their meal and meet interesting people. Without the complexities of bricks and(electronic) wallet, and media mortar stores, traditional business models However, most multinational companiesis filtered by consumer-driven and legacy infrastructure, these online today are falling short of delivering customerspreferences. Without control of retailers are forging ahead. with a unique experience across offline, onlinethe market forces and consumer and mobile channels. With seemingly infinite There are also examples of traditional sources of consumer data detailing purchasedemand dictating the run of retailers or consumer goods companies history, interests, life-stage, lifestyle, and aplay, how will the corporate that are rising to the challenge by making host of other personal preferences—knowingworld respond? What are the the in-store experience an engaging and how to craft actionable insights to driveimplications for marketing spend efficient one for customers. For example, business decisions is proving a mighty task. digital receipts are growing in popularity The ability to restructure the organizationor supply chain? Can physical after being introduced by Apple in 2005 to deliver a very personalized and relevantand virtual merchandizing as a convenience for the customer and experience to a range of potential andbecome integrated? a relationship touchpoint for retailers. existing customers across multiple channels, Another example is Nordstrom Inc., a leading all day, every day, will be essential to survival clothing retailer in the United States, which in the digital marketplace. has focused on in-store customer services to build a trusted relationship, making the shopping experience as personal and
Offline, online, on-the-goSince consumers can move seamlesslybetween online and offline channelswithout distinction, companies realizethat they can no longer have a separatemarketing strategy for different channels.Customer-centric businesses are shiftingtheir focus from treating digital as a distinctchannel, to creating an integrated customerexperience across all channels. Today, theconsumer base is no longer homogenousnor geographically restricted, but highlyheterogeneous and global, with very diversepreferences, cultures, technology awarenessand socio-economic mix.To be able to tailor specific messages andofferings to different consumers,companies will need to build detailedconsumer profiles from multiple sources Stepping stones respect to their predicted buying patterns,using advanced analytics techniques— The challenge of personalization then is not companies can pursue a proactive marketingenhancing understanding of likely buyer about obtaining data, but how to select and approach, enabling real-time responsesvalues and preferences, stage a consumer analyze the right data to drive real consumer across multiple touchpoints. Instead ofis at in the buying cycle and key influencers. insights, and how to commercialize it to pushing messages and promotions out andThrough this granular approach companies deliver business results. hoping some consumers will find themwill be able to respond quickly to consumer relevant, companies can create a marketing To maximize the marketing return on environment, both in-store and virtually,requests with contextually relevant investment (MROI) companies need to be able which attracts potential and existingmessages, and begin to anticipate consumer to attract, serve and maintain customers by customers alike.needs based on similar buying patterns. delivering relevant products and services at point of need—to achieve consumer relevance at scale.1 This may seem like an overwhelming So, how to shift gears to challenge at first glance, but companies can achieve the more relevant meet this challenge by developing a well- customer-centric experience thought out roadmap using an integrated marketing strategy. required in today’s multichannel, competitive At the heart of this roadmap is the ability marketplace? There are five to reach consumers at the most granular level by making macro marketing programs, fundamental steps that will such as circulars, emails or out-of- help marketing executives home messaging, more personalized and avoid being left behind in the relevant. By developing multiple identities industry shakeup. of offline and online customers, which1 Baiju Shah and Nandini Nayak, “Got the R Factor: can then be used to create inquiries withDriving breakthrough performance in the Era ofRelevance,” 2012
Steps to customer-centricityThere are five fundamentalsteps that CMOs should 1 Acknowledge the Present State • alue: Define the values of a customer V to the enterprise and know where different customers fit into the value spectrum—consider when restructuring It is important to understand the current whereas some companies take too situation within the company and rudimentary an approach, others limitthe marketing organization marketplace today. With physical stores the number of contextual views or tiersto meet customer needs. increasingly being seen as showrooms by and never drill down to a granular level consumers who want to try on their items to understand customer preferences. before buying online, retailers need to take a hard look at their value proposition. • ehavior: Build consumers’ shopping B profiles—how frequently they come to Most traditional companies are saddled the store and how broadly they shop by silos of departments such as marketing, across the store? Really getting to know merchandizing, operations and supply a consumer on an individual basis and chain, each organized around specific developing a personal relationship will business processes and functions. These be a key differentiator for retailers. silos are now becoming an impediment to organizations wanting to become • otivations: What motivates consumers M customer-centric—a transition that online to make a purchase—is it brand, taste, retailers have been relatively successful in quality or price? Is it a combination of making. In the absence of an integrated priorities? Or, are consumers motivated internal structure, companies are forced by some other factors? If so, what are to buy customer data, compounding the those factors? issue, as data syndicators cannot reach the • ntent: Understand the potential value I granularity required. Competing companies of a consumer based on contextual end up with similar insights leaving the indicators. What are they buying elsewhere market with few true innovators. Breaking and why? What are the consumer needs down these internal silos and bridging the that can be identified from life-stage? gap between product and customer value is a key first step in this journey. A well-developed strategy that recognizes the value and potential of consumers to the 2 enterprise, describes that value in terms of Build an Integrated product-specific behavior. It communicates Strategy across the organization in ways that allow the Companies should next look at the overall different functional silos to build and deliver customer strategy and identify the macro- on channel-centric tactics, reflecting both and micro-marketing activities that are the product and customer growth agendas. required to achieve business goals. There Of course, such a strategy needs to have the is little point in taking a 30 second TV spot commitment of all the departments within in the Superbowl or a reality show, with a company and be aligned across different audiences in the millions, for a product departments, and it needs to be driven by which has a target audience of 25,000. a clear, top-down business strategy. This integrated approach across functional areas requires companies to understand several aspects about consumers.
3 Develop an Information InfrastructureUnderstanding the sources of data and being marketing influence in real time and to make it work, marketers need to go beyond pushing out communications; instead, they need to respond to opportunities to connect Next Gen Point Of Sales Traditionally many organizations have aligned themselves to a point of sales (POS) system and customized it to a point where it can no longerable to draw on them effectively to create with consumers as they occur. This is easier be supported by the original vendor or easilyactionable insights will be key to developing to achieve online through responding to migrated to a new agile system. By adopting anan effective information infrastructure. search queries. But companies should integrated, agile POS technology, organizations continue to look for ways to recognize are able to benefit from providing a seamlessIt is impossible to strategize, plan, act and potential customers in their store, or experience across all offline and online channels,measure results in today’s multichannel even in a particular aisle, anticipating and as well as pricing alignment, digital receiptinguniverse without data analytics and an responding to specific needs or intent. and the like functions.underlying process that recognizes the 4need for different levels of granularity of Customer Insights And Analyticsconsumer behavior. For example, senior Select Enabling Today, customer analytics technologies areexecutives of a company need to have an Technologies able to provide insights across a range ofoverview of consumer behavior across areas including, micro segmentation, With no single technology able to harnessmarkets or brands; analysts doing product customer value modeling, pricing optimization the potential of data, agility is the mostassortment require data related to SKUs, and assortment. Consequently, a business important capability businesses are chasing.select customers and select stores; and intelligence capability is crucial for generating For various reasons, many organizations thatmarketers may want contextual insights specific customer-centric insights that are aligned their businesses to the industrialinto all consumers who buy diapers but aligned with the organization’s business strategy. strength solutions of technology providers,not formula, and who respond well to a today need to adjust their technical 5coupon delivered at the register. infrastructure accordingly—a process that can be very cumbersome and expensive. Restucture theAny data infrastructure supporting thislevel of granular analysis needs to be Many analytics leaders offer a host of Marketing Functionable to integrate multiple, exclusive and technologies, while organizations such as Unlike a few years ago when marketingnon-exclusive consumer contexts—purchase Facebook and Google have built their own organizations had the luxury of planning inbehavior, basket size, channel attitude, analytics engine that aligns closely to the yearly cycles, today they need to adapt theirproduct preference, to name a few. The objectives of their unique business models. marketing strategies to weeks, days or evenpotential of big data lies in finding details To achieve an agile technical infrastructure, seconds, to stay ahead of their competitors.across lots of data points that can be utilized leading organizations subscribe to a set of From raw materials and manufacturingeffectively (or made actionable) in a small common components: to distribution and retailing, the differentdata environment. Companies need to departments within a company need to haveunderstand which data is most critical Granular Data Warehouse a 360 degree view of consumers. Marketingto their business and which data adds the Utilized to capture non real-time will be infused across the organizationmost value. For example, which products transaction data, consumer behavior, master from strategy and business planning, todid a consumer put in his basket but then data and other third party complimentary merchandizing, supply chain and customerdecide not to buy? Was a promotion data assets. This data repository is often service, to manage the customer experiencecoupon redeemed? employed to democratize the data for use as one. across business silos.Customer data management is steeped in We are entering an era of virtual everything,the legacy of list generation to support Real Time Data Store where all players and channels will effectivelydirect mail, call centers, and more recently These real-time or near real-time big collaborate. Increasingly, companies will beemails. However, today’s marketers must data stores provide access to all the competing and cooperating at the same timecontinuously touch, influence and engage timely contextual data to support point with one objective: to harvest maximumthe customer in a timely and relevant solutions for immediate decisions such as customer value and share customermanner; a handful of segments are no recommender systems for promotion at the requirements with other departmentslonger enough. More importantly, to scale point of interaction with the consumer. within their respective companies.
Make it personal and make it count the consumer and committing to build the To learn more about how toToday’s consumers are fickle, impatient necessary infrastructure to support those monetize a customer-centricand demanding. True or False? While it is interactions wherever, whenever they occur,true that they are price-savvy and time- will be critical to delivering a personalized marketing strategy, contact:pressured, consumers also respond to good experience—one that counts at the bottom Milton Merlservice, relevant offers and time-efficient line. Tomorrows winners will include firstname.lastname@example.org. Consumers can be the biggest companies that have the commitment andfan, broadcasting recommendations for leadership today to take the necessary steps Seth Marlattproducts and services and connecting towards creating a proactive and customer- email@example.com brands across multiple channels and centric marketing environment.networks. Knowing how to interact with