During this webinar, Ernan Roman will share recent insights from more than 10,000 hours of Voice of Customer (VoC) Relationship Research conducted by his firm, Ernan Roman Direct Marketing. Based on the findings, Roman will share 5 key VoC research findings that will help retailers significantly improve customer engagement and personalization of offers and experiences. And critically, how personalization can be driven by individual preferences. Roman’s part of the session will conclude with an 12 Point Checklist for transforming your customer experience. Rick Ludolph from Productive Solutions will follow with a look at the enabling technologies to help retailers achieve their customer engagement goals in an omnichannel marketplace

1. Customer
Experience
Transforma3on:
5
Research
Findings
and
12
Ac3on
Items
Presented by
Session sponsored by

2. Follow
this
Webinar
on
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3. About
CCS
2013
ü 5 Webinars, 4 Days
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Ops, X-Channel, Loyalty,
ü Featuring industry
analysts and consultants
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4. Welcome
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A1endees
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5. Xbox
One
Giveaway
Enter to win an Xbox One by attending at least two
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*Visit the contest rules page for more information.

6. About
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TouchPoints
ü Launched in 2007
ü Over 28,000 subscribers
ü To provide executives
with relevant, insightful
content across a variety
of digital medium
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7. Panelists
Ernan Roman
Rick Ludolph
President
Consultant – CGS
Founder and President
Ernan Roman Direct Marketing
Corp. (ERDM)
Productive Solutions LLC
MODERATOR
#RetailCCS
Debbie Hauss
Editor-in-Chief
Retail TouchPoints

8. Customer Experience
Transformation:
5 Important Research Findings
and
12 Action Items
8
Ernan Roman
President
Ernan Roman Direct Marketing Corp.
12/9/13

9. Ernan Roman
President
Ernan Roman Direct Marketing Corp. (ERDM)
Recognized as a marketing thought leader. Inducted into the
Marketing Hall of Fame for creating three transformational methodologies:
Voice of Customer (VoC) Relationship Research, Opt-in Marketing and
Integrated Direct Marketing.
Named by Crain’s BtoB magazine as one of the “100 most influential people
in Business Marketing”.
Ernan Roman
President,
Ernan Roman Direct
Marketing Corp.
(ERDM)
ernan@erdm.com
www.erdm.com
9
ERDM specializes in conducting Voice of Customer Relationship Research
to identify customer experience strategies that generate significant increases
in revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft
and Norton AntiVirus.
Ernan’s latest book on marketing best practices is titled, “Voice of the Customer
Marketing”.
He writes the widely read, Huffington Post published blog, “Ernan’s Insights on
Marketing Best Practices”.
Authored the landmark books “Opt-in Marketing” and “Integrated Direct
Marketing”.

10. Agenda
— Provide 5 strategies for transforming your retail
customer experience across the multichannel mix.
— Insights are based on new findings from VoC Research
conducted for thought leaders such as IBM, QVC,
NBC Universal, MassMutual and Norton AntiVirus.
— 12 Action Items to transform your retail multichannel
customer experience.
10

11. Voice of Customer (VoC) Relationship Research Findings

12. Learnings from 10,000+ hours of VoC Interviews:
12

13. Understand how Consumers define
“Customer Experiences”.
Customer Experience Requirement #1

14.
How
Consumers
Define
“Customer
xperiences”*
1.
Improve
the
customer
experience
across
every
point
of
contact
with
your
organiza3on.
2.
Applies
to
all
elements
of
the
media
mix
and
all
departments
in
your
organiza3on.
3.
High
quality
experiences
must
be
maintained
throughout
the
rela5onship
“not
just
when
you
are
selling
or
renewing”.
14
*Defini'on
is
based
on
10,000
+
hours
of
VoC
research
conducted
by
Ernan
Roman
Direct
Marke'ng,
5-­‐26-­‐13

15. How
Consumers
Define
“Customer
Experiences”*
4.
Customer
experiences
must
be
driven
by
my
individual
preferences
regarding:
message,
3ming,
frequency,
and
media
mix.
5.
Preferences
must
drive
high
quality
personaliza5on
of
communica5ons
and
experiences.
Privacy
of
preference
informa3on
is
essen3al.
15
*Defini'on
is
based
on
10,000
+
hours
of
VoC
research
conducted
by
Ernan
Roman
Direct
Marke'ng,
5-­‐26-­‐13

16. Satisfaction has become a given.
Engagement is now the critical
competitive differentiator consumers
are searching for.
Customer Experience Requirement #2

17. Per VoC Research Findings:
Across the last 12 months, a consistent trend:
Consumers expect companies to use
their preferences to deliver
increasingly personalized offers,
communications, and experiences.
17

18. Satisfaction is a Given…
Engagement is What Counts:
“When
we
analyze
the
US
hotel
category,
we
found
less
than
1
social
advocacy
men5on
per
100
stays.
With
some
hotels
repor3ng
guest
sa3sfac3on
scores
of
80%
or
more,
there’s
clearly
a
large
social
advocacy
gap:
the
vast
majority
of
people
sa3sfied
with
their
experience
aren’t
talking
about
it
online.”
1to1
Media,
Social@Ogilvy
research,
“How
to
Build
a
Global
Passion
Brand”,
8-­‐29-­‐13
18

19. Opportunity to completely rethink
how you engage with customers;
Reciprocity of Value Equation.
Customer Experience Requirement #3

20. Powerful VoC Finding:
Voiced by
B2B and B2C
customers and
prospects
20
Cited so
frequently and
clearly that we
call this:
Reciprocity of
Value Equation

21. Reciprocity
of
Value
Equa3on:
Recognition by consumers that to receive or access increasingly
relevant information, they must provide information regarding their
preferences. Applies to B2B and B2C.
If they trust the brand and receive a useful value proposition,
consumers will opt-in to sharing increasingly detailed preference
information in exchange for the marketer’s promise to deliver
relevant information and offers.
This reframes data privacy concerns!
Reciprocity seen as a valuable exchange of information which
improves the customer experience.
This information will constantly change, grow, and be enriched,
through ongoing interactions with consumers.
21

22. Reciprocity
of
Value
Equa3on:
As a result of these preference-based interactions, consumers are
more willing to respond to communications and offers.
This customer-driven information exchange results in uniquely
accurate databases which consistently drive 25% to 50%
increases in revenue.
22

23. Double-digit Results from Microsoft’s
VoC-driven Customer Engagement Programs:
23

24. Double-digit Results from MassMutual’s
VoC-driven Customer Engagement Programs:
• Mock talk show with a cast of 3
discussing personal financial issues
• More humorous than serious
MassMutual’s Smart
View
Webisode Email Pilot
• Provided actionable takeaways
• Season 1: 9 episodes over 18 weeks
• Season 2: Launched September 2013
21
24

25. Double-digit Results from MassMutual’s
VoC-driven Customer Engagement Programs:
By opting-in, participants receive
proactive communication when
new episodes are ready.
Results: Opt-in vs. Control Group
94%
Zero
100%
Higher open
rate
25
1,062%
Higher video
views
Unsubscribes
Deliverability
22

26. Differentiate your company by
providing truly personalized
experiences, communications,
and offers.
Customer Experience Requirement #4

27. True Personalization is Critical:
Per VoC findings, customers and prospects view personalization as
the next step in a company’s commitment to service excellence.
Personalization is viewed as a service
and benefit, not just a sales tool.
They also look to personalized follow-up emails
as value-added triggers to go online and
evaluate relevant products.
27
Online
shoppers view
personalization as
a critical
requirement for
engagement.

28. “Transaction-based” is Inadequate:
Consumers are very clear in defining personalization
as much more than “those old-fashioned”
transaction-based communications.
Representative VoC research quotes:
“I want more than just
buying history-based
emails”.
28
“With today’s technology,
I expect the experiences and
emails to reflect my
preferences”.

29. Deliver on the expectations of
improved customer experiences
across every channel and point of
contact with your organization.
Customer Experience Requirement #5

30. Multichannel Engagement:
Today’s shopper is multidimensional; multi-channel and
multi-purpose.
Many report using multiple media,
often at the same time.
"I take pride in being a smart shopper.
I might see something on TV, or hear an ad on the radio.
I’ll text some of my fellow FrugalMom$ friends to check it out.
Then I’ll browse the website. If the item interests me, I’ll put it in
my cart.
When I’m finished browsing, I’ll print out the cart.
Then, I call Customer Service to have them answer
my questions, and place the order."
30

31. QVC Priority; Deliver Competitively Differentiating
Multichannel Customer Experiences:
Do Multiple Channels Enhance or Cannibalize Sales?
Best Customers Engage on All Screens
Web
Only
31
Phone
Only
Mobile +
Phone
or Web
Phone,
Web
Phone,
Web
& Mobile

32. Sephora Delivers High Quality
Multichannel Customer Experiences:
Sephora revamped website and mobile apps to
deliver personalized, and integrated in-store
and online experiences.
Online searches and purchases are saved to a
customer’s profile if they are a member of
Sephora’s loyalty program, Beauty Insider.
“It’s an opt-in service, because Sephora recognizes that not all consumers want
to be tracked. Currently, 20 Sephora stores will have iPads from which store associates
will be able to pull customer data to help them with purchases…”
“Customers can search across 25 criteria including age group, SPF, skin type and more.
We have all the expertise of Sephora’s staff built into a web interface.”
Bridget Dolan, VP Interactive Media. DM News 4/19/12
32

33. Personalization
• 2,500+
versions
of
personalized
emails
on
a
daily
basis
• Key
drivers:
shopping
behavior,
self
stated
profiling,
and
collabora3ve
filtering
33
Email

34. Personalization
Website
The
store
with
the
highest
affinity
sits
at
the
top
Sales
within
this
sec3on
are
based
on
what
the
member
has
shopped
or
favored
in
the
past
All
other
stores
are
ranked
according
relevance
based
on
shopping
behavior
Collabora3ve
filtering
is
also
used
to
suggest
specific
sales
34

35. Personalization
Personaliza3on
drives
engagement
by
increasing
order
conversion
rates
and
decreasing
unsubscribe
rates
Long-­‐term
A/B
test
for
email
personalizaOon
35

36. 36

37. 12 Actions for Retail Multichannel
Success
Be humble. Acknowledge what you don’t know
about how your customers define engagement.
Listen to your customers.
Understand how customers define the Reciprocity
of Value Equation with your company.
Create opt-in preference databases to drive true
personalization of communications and offers.
Achieve frictionless, high-value, engagement
across every medium in the multichannel mix.
37

38. 12 Actions for Retail Multichannel
Success
Customers engage with your messages across
multiple media. Ensure message and brand
consistency across all your media.
Communications should reflect the “personalities”
of the individual media used by customers to engage
with your brand.
Each medium should reinforce the other, i.e., Retail
reinforcing Social, Mobile reinforcing Web, etc.
Be where your customers are, i.e., push mobile
during commuting hours, holidays, etc.
38

39. 12 Actions for Retail Multichannel
Success
Select channels that serve the customer: texting
an offer is intrusive. Using it as a reminder for
something they want is a value.
Avoid turf and silos; ideally one team should
manage all customer touch points.
Make customer listening a part of every
functional area, not just Marketing.
Deliver high quality customer service in every
channel. Marketing has to take responsibility!
39

40. Additional Information for You:
— PowerPoint Presentation
— 14 Step Checklist For Breakthrough
Multichannel Marketing
— 7 Marketing Mistakes You Need
to Avoid
— Case Studies
— Blog; Ernan’s Insights on Marketing Best
Practices
— To receive this information, send your
request to Ernan@erdm.com
40

41. Contact Information:
Ernan Roman
President
Ernan Roman Direct
Marketing Corp.
ernan@erdm.com
41

42. Leveraging Technology To Drive Omnichannel Success
Rick Ludolph
Founder & President

43. • Today’s shoppers expect more from their retail
experience
• Loyalty is now earned through an experience
across all channels rather than a single one
• The retail experience has expanded to include
stores, websites, call centers, marketplaces,
and social networks
• Consumers expect a seamless all-channel
experience
• Retailers need to be more connected, more empowered,
and more proactive than ever before
• Shift from supply/push approach to demand/pull approach

44. • Connecting with customers
o
Individual, personal & relevant dialog
• Merchandise planning & execution
o
Optimizing a plan for each channel
• Supply chain & order fulfillment
o
Increasing supply chain and inventory management complexity
• Operations & performance management
o
Real-time, actionable information
• Empowering employees
o
Advanced POS tools & customer service skillset
• Content & data management
o
Single view of data across all channels & touchpoints

45. • Engage customers across all channels/devices
• Leverage customer data and trends to offer
what they want, where and when they want it
• Create new opportunities for customer
interaction through online/store integration
• Maintain a history of customer interactions
• Ensure consistent, convenient customer responses
• Improve service and increase customer satisfaction
Supporting Technologies/Services:
Customer Relationship Management (CRM), Contact/Call Center, Training

46. • Compelling, on-trend, and smartly-priced
merchandise can define success or failure
• Plan relevant/profitable assortments for each
channel based on customer demand
• Integrate sales history and POS data into
merchandise planning and development
• Synchronized view of demand across channels
• Roll up individual plans to a single, omnichannel plan
Supporting Technologies/Services:
Merchandise Planning, Product Lifecycle Management (PLM),
Retail Enterprise Resource Planning (ERP)

47. • Accept, fulfill and track standard and special
orders with a 360-degree business view
• Pull inventory from any channel or location
• Check inventory and manage reservations
• Seamlessly replenish across any channel
• Manage purchasing, requisition, and
replenishment
• Production order and automated shipment management
Supporting Technologies/Services:
Supply Chain Management (SCM), Warehouse Management System (WMS),
Retail Enterprise Resource Planning (ERP)

48. • Create orders without leaving the customer’s
side with advanced service capabilities
• Transaction processing, loyalty capture,
customer detail capture, and more at POS
• Centralized POS terminal management
• Consistent store/ERP data model and business rules
facilitate accurate, timely data
• Configurable, flexible inventory and financial updates
• Manage store, regional, and global staff
Supporting Technologies/Services:
Retail Enterprise Resource Planning (ERP), HR, POS

49. • Bringing together product information from
multiple channels/sources in POS
• Clienteling to cross/up sell and improve
customer service
• Advanced POS solutions enhance customer
service and reduce training time
• Instructor-led training, e-learning, and blended
training programs
Supporting Technologies/Services:
POS, Retail Enterprise Resource Planning (ERP), Training Services

50. •
•
•
•
•
•
•
Synchronized view across all channels
Integrated online storefront
Consistent content across all channels
Robust catalog management
Single view of data across the enterprise
Real-time analytics and performance reporting
Customer history drives personal and relevant content
Supporting Technologies/Services:
POS, Retail Enterprise Resource Planning (ERP), Training Services

51. • Consistent customer interaction and care
• Integrated online storefront and content
• Integrated assortment and category
planning/management across channels
• Visibility and control across stores, ecommerce
sites, mobile, social commerce, and more
• Centralized store (POS) and e-commerce management
• End-to-end solution with real-time analytics

52. • Rethink Current Business Models
o
Tactical approach is not sufficient
• Modern, unified technology platform
o
Microsoft Dynamics AX
• Experienced solutions and services partner
o
Computer Generated Solutions (CGS)
• Integrated business solutions
o
o
o
o
o
o
Microsoft Dynamics AX for Retail
Microsoft Dynamics AX POS
CGS BlueCherry (Merchandise Planning, PLM, SCM, WMS)
CGS BPO/Contact Center
CGS Training Services
CGS Technology & Infrastructure Services

53. Leveraging Technology To Drive Omnichannel Success
Rick Ludolph
r.ludolph@productivesol.com
www.productivesol.com

54. End-To-End Solutions for Seamless Retailing
IOS/POS
POS
MCMP
Clienteling
Mul3-­‐Channel
Merchandise
Planning
Product
Lifecycle
Management
&
PLMS Sourcing
Advanced
Warehouse
Management
Contact
Center
Solu3ons
For
Retail
©
2013
Computer
Generated
SoluOons,
Inc.
All
rights
reserved.
ConfidenOal
and
proprietary
to
CGS.
Technology
Services
Page
54

55. Kick-off NRF in style by
attending the Opening
Night Reception at the
Marriott Marquis Times
Square
More Modern
More Mobile
More Global
Sunday Jan 12
5:30 – 7:30 pm
Visit Booth # 2703 to
learn more
BIG !deas Session:
Become a Dynamic
Retailer and Make Sure
You’re Ready for What’s
Next
Follow all the action live on
Twitter and Facebook
Monday Jan 13
@msretail
FB.com/MicrosoftforRetail
3:15 – 4:15 pm

56. Help
us
support
RetailROI
at
NRF
this
year…
• Schedule
a
mee3ng
with
CGS
at
NRF
and
agend
it,
and
CGS
will
donate
$25
to
RetailROI.
• The
Purpose
of
the
Retail
Orphan
IniOaOve
(RetailROI)
is
to
raise
awareness
and
provide
real
soluOons
for
the
more
than
400
million
vulnerable
children
worldwide.
• Visit
www.retailroi.org
for
more
informaOon.
• To
schedule
a
meeOng,
send
an
email
to
cpanozzo@cgsinc.com
with
the
subject
line
NRF
MeeOng.
#RetailCCS

57. Q
&
A
//
Panelists
Ernan Roman
Rick Ludolph
President
Consultant – CGS
Founder and President
Ernan Roman Direct Marketing
Corp. (ERDM)
Productive Solutions LLC
MODERATOR
#RetailCCS
Debbie Hauss
Editor-in-Chief
Retail TouchPoints

58. Xbox
One
Giveaway
Enter to win an Xbox One by attending at least two
sessions from this week’s webinar series!
#RetailCCS
*Visit the contest rules page for more information.

59. Thank
You
For
Joining
Us
The next Connected Consumer Series session…
The
ABC's
Of
Delivering
A
Superior
Customer
Experience
Tomorrow, 12 PM ET / 9 AM PT
www.retailtouchpoints.com/special-connected-consumer-series-2013
#CCSeries13