Guest speaker Brendan Witcher, Principal Analyst with Forrester Research joins Chris Tutor, VP of Strategy at Bear Naked and Ray Grady of CloudCraze to discuss the opportunity of personalized eCommerce. Through the real world example of BearNakedCustom.com, they show how traditional B2B companies can quickly pivot to leverage a direct-to-consumer opportunity. They also demonstrate how a customer-focused platform can benefit the customer and company alike.

1. Fuel Your Brand with Direct Digital Insights
and Online Commerce
DON DAVIS
MODERATOR
Editor in Chief
Internet Retailer
BRENDAN WITCHER
Principal Analyst
Forrester Research
CHRIS TUTOR
VP of Strategy
Bear Naked
RAY GRADY
Executive Vice President
CloudCraze

3. Fuel Your Brand With Direct Digital
Insights And Online Commerce
Brendan Witcher, Principal Analyst
June 15, 2016

4. © 2016 Forrester Research, Inc. Reproduction Prohibited 4
Agenda
› Aligning Your Business Dynamics With
Customer Dynamics
› Pitfalls To Avoid With Traditional Personalization
Strategies
› Four Pillars Of Delivering The Next Wave Of
Personalization: Individualization
› Recommended Steps For eBiz Professionals

5. © 2016 Forrester Research, Inc. Reproduction Prohibited 5
Empowered customers have given rise to a new era
Age of manufacturing
Mass manufacturing
makes industrial
powerhouses
successful
• Ford
• Boeing
• GE
• RCA
Age of distribution
Global connections
and transportation
systems make
distribution key
• Wal-Mart
• Toyota
• P&G
• UPS
Age of information
Connected PCs and
supply chains mean
those that control
information flow
dominate
• Amazon
• Google
• Comcast
• Capital One
Age of the customer
Empowered buyers
demand a new level of
customer obsession
• Macy’s
• Salesforce.com
• USAA
• Amazon

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The past.

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Today.

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Welcome To The New Normal: Hyper-adoption

9. …and “hyper-abandonment.”

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Today’s eBiz pros must be able to meet or
exceed the expectations of customers
CUSTOMER TECHeBUSINESS TECH
eBUSINESS PRO
CUSTOMER

11. © 2016 Forrester Research, Inc. Reproduction Prohibited 11
=Speed of the
customer
Speed of your
business
Speed of your
operations=
SUCCESS

12. © 2013 Forrester Research, Inc. Reproduction Prohibited 12
Delivering on all five market imperatives is
key to success in the age of the customer
Drive business
growth with privacy
Turn big data into
business insights
Embrace the
mobile mind shift
Accelerate your
digital business
Transform the
customer experience
Age of
the
customer

13. Your business needs to dramatically
change in the age of the customer or risk
being disrupted out of business.

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Each time a customer is exposed to an
improved digital experience, their
expectations are reset to a new higher level.
› Image source: Wikimedia Upload (https://upload.wikimedia.org/)

15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15
Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Image source: Flickr (https://www.flickr.com/)
Experience is a significant factor in
every online shopper’s journey
68%
“I am unlikely to return to a
website that does not
provide a satisfactory
customer experience.”

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Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015
Business leaders are prioritizing customer
experience in 2016

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Personalization is a #1 eBusiness priority
Base 32 eBusiness And Channel Strategy Professionals
Source: Forrester’s Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey

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Agenda
› Aligning Your Business Dynamics With
Customer Dynamics
› Pitfalls To Avoid With Traditional Personalization
Strategies
› Four Pillars Of Delivering The Next Wave Of
Personalization: Individualization
› Recommended Steps For eBiz Professionals

19. © 2016 Forrester Research, Inc. Reproduction Prohibited 19
There is a significant gap between
belief and reality with personalization
Image source: Customer Communications Insights (http://customercommunications.com/)

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Other Products
Product
Product
Segmentation
Personalization has historically been
driven by segmentation
Me

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Me
Other Products
Product
Product
Segmentation
Personalization based
on segmentation
provides the “wrong”
experience for most of
your customers.

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Single data points are often used to
personalize the entire customer journey
Me
X
Single data point

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Me
X
Single data point
Just because you know
one thing about the
customer doesn’t mean
you know everything
about the customer.

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Organizations too quickly check the box
on delivering “personal” experiences

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It is a waste of everyone’s
time to personalize
experiences that provide
no real value to a
customer’s journey.

26. Be careful to understand and respect
personal boundaries
Source: Soul Mate of the Moment (https://soulmateofthemoment.files.wordpress.com/)

27. Source: Soul Mate of the Moment (https://soulmateofthemoment.files.wordpress.com/)
Proceed with caution: be
overt about collecting
data, but covert about
communicating what you
know about the customer.

28. eBusiness leaders must
help organizations prepare
for the next evolution of
personalization,
which will rely more on the
pillars of individualization
rather than segmentation.

29. © 2016 Forrester Research, Inc. Reproduction Prohibited 29
Agenda
› Aligning Your Business Dynamics With
Customer Dynamics
› Pitfalls To Avoid With Traditional Personalization
Strategies
› Four Pillars Of Delivering The Next Wave Of
Personalization: Individualization
› Recommended Steps For eBiz Professionals

30. © 2016 Forrester Research, Inc. Reproduction Prohibited 30
of consumers have
chosen, recommended, or
paid more for a brand that
provides a personalized
service or experience.
Base: 4,549 US online adults (18+)
Source: Forrester’s North American Consumer Technographics® Brand Compass Survey, Q1 2015
Image source: (https://imagine.magento.com)
62%

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Q1: How successful are you when you
get personalization right?
Image source: StaticFlickr (https://c1.staticflickr.com/)

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Q2: How successful would you be if you
got personalization right for everyone?
Image source: StaticFlickr (https://c1.staticflickr.com/5/4036/4420875996_a354a88130.jpg)
Q1: How successful are you when you
get personalization right?

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But before we begin . . .
Image source: (https://extrasport.be)

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You cannot truly personalize experiences
for consumers you cannot recognize.
Image source: Blog Cabin (https://blog.kabinata.com)

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> Customer data =
> Effective personalization
Source: Zona IT (https://zonait.tv/file/2015/06/META.jpg)

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Value is the
key to getting
customers to
self-identify.
Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

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There are four primary characteristics of
Individualization
Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

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1. Customers are identified and treated as a
segment of one using rich customer profiles.
Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

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2. Customer data is assessed in real-time
and dynamically calculates intent.
Image source: OnPoint DMS (http://www.onpointdms.com/)

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3. Personalized content is delivered
equally across every screen and channel.

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4. Connected technologies enables far richer
and more relevant engagements.
Image source: WallpapersCraft (https://wallpaperscraft.com/)

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It’s easy to think about personalizing
experiences in ways we’ve done before
Me

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Individualization is seamless customer
engagement across an ecosystem
Email
Call center
Text messages
In-store online access
Online content
Social engagements
Direct mail
Mobile web
Web search
Apps
Online checkout
Retargeting
Associate engagement
Chat
Virtual agents
Smart TV
PLPs
Homepage
PDPs
Packaging
eReceipts
Digital signage
Product reviews
Site search
Outbound calling
Me

44. . . . it is a business strategy that drives tactics
and affects every part of an organization.
Individualization is not a tactic . . .
Security
and risk
Enterprise
architecture
eCommerce
Application
design
Merchandise
planning
Marketing
Customer
insights
Customer
experienceIndividualization:
engaging customers as a
segment of one in real
time by listening,
capturing, measuring,
assessing, and
addressing intent across
every enterprise
touchpoint

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Agenda
› Aligning Your Business Dynamics With
Customer Dynamics
› Pitfalls To Avoid With Traditional Personalization
Strategies
› Four Pillars Of Delivering The Next Wave Of
Personalization: Individualization
› Recommended Steps For eBiz Professionals

46. © 2016 Forrester Research, Inc. Reproduction Prohibited 46
What should I be doing today?

47. Not a revolution . . . but rather an evolution
Image source: Wikimedia Commons (https://commons.wikimedia.org/) and Pixabay (https://pixabay.com/)

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Recommendations

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Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.

50. The Nestlé Digital Acceleration Team (DAT) is made up of marketing
leaders from around the world who participate in an 8-month training
program in digital and social media.
Nestlé created a digital acceleration team
and center of excellence to drive change

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Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.

52. Reckitt Benckiser uses a "virtuous circle" of investing in digital, getting better
impact and ROI, which in turn generates bigger budgets for more spending.
RB has “no interest in dropping the savings to the bottom line.”
Reckitt Benckiser (RB) thinks about
digital first across every brand strategy

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Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design digital touch points to use and collect data.

54. GE uses sensors in aircraft engines to monitor performance and improve the
efficiency of maintenance.
GE uses machine-to-machine (M2M)
connectivity for real-time service delivery

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Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design digital touch points to use and collect data.
4. Focus on creating great customer experiences and
avoid crossing boundaries unnecessarily.

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App Helps Customers "Shop”
Online Before Buying Offline
Customer uses mobile to
select color they’d like to test
Customer touches areas to
“paint” using mobile camera
App finds local stores where
product can be purchased
Dulux wins direct to consumer loyalty by
adding shopping confidence & convenience

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BONUS
Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design digital touch points to use and collect data.
4. Focus on creating great customer experiences and
avoid crossing boundaries unnecessarily.
Leverage scalable, cloud-based solutions to
expedite your digital transformation.

58. Hudson Bay expedited their transformation
by turning to a scalable solution
http://www.thebay.com/webapp/wcs/stores/servlet/en/thebay/content-view/true-fit#

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BONUS
First Steps Checklist
• Identify the gaps in your company’s ability to deliver
individualization.
• Take off your eCommerce blinders and consider every
part of the customer journey.
• Design digital touch points to use and collect data.
• Focus on creating great customer experiences and
avoid crossing boundaries unnecessarily.
Leverage scalable, cloud-based solutions to
expedite your digital transformation.

60. Customer engagement done right doesn’t
look like personalization…
Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png

61. Customer engagement done right doesn’t
look like personalization…
Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png
…it just looks like a great experience.

62. forrester.com
Thank you
Brendan Witcher
bwitcher@forrester.com
+1 617.613.6315

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natively on Salesforce

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Commerce Connects with Customers Everywhere

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Customer-focused platform leverages all touch points

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CloudCraze platform puts focus on solution, not infrastructure

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Powerful, rich capabilities to move at Customer speed
360-degree
customer engagement
Seamless integration across
Sales, Marketing, Service
including order on behalf of
Fully branded
configurable storefronts
Put your products and brand at your
customers’ fingertips
Powerful
pricing engine
Single product, bundled pricing,
subscriptions, and coupons.
Define Accounts and display Account
specific products and pricing at login
Account groups
Unique digital experience
Mobile-ready
For the on-the-move
customer and admin
Optimize the user experience with out-
of- the-box templates or integrated
CMS using the robust API set

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Leading global brands across industries

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