The Digital Transformation: Key Findings and Action Items

Digital Marketing
Transformation:
5 Key Research Findings and
12 Essential Action Items
Ernan Roman
President
Ernan Roman Direct Marketing
11/1/13
Urvashi Singh
Marketing Consultant
MassMutual

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”.
ERDM specializes in conducting Voice of Customer 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”.
Ernan Roman
President,
Ernan Roman
Direct Marketing
Corp. (ERDM)
ernan@erdm.com
www.erdm.com

Urvashi Singh
MassMutual Retirement Services Division
Urvashi Singh joined MassMutual in 2012 and is currently a Marketing
Consultant in the Retirement Services Division. In her current role she
manages customer intelligence and is responsible for developing an
analytical framework and establishing measurement protocols for
marketing programs. She has a background in Strategic Marketing,
Customer Segmentation and CRM. Urvashi earned an MBA from
Southern Methodist University, Dallas, Texas.
MassMutual’s Retirement Services Division has been serving
retirement plans for 65 years. It offers a full range of products and
services for corporate, union, nonprofit and governmental employers'
defined benefit, defined contribution and nonqualified deferred
compensation plans. It serves approximately 40,000 employers with
over 3 million participants.
Urvashi Singh
MassMutual Retirement
Services Division
usingh@massmutual.com
www.massmutual.com

4
Agenda
 Provide 5 requirements for re-thinking your
Customer Experiences so you adapt to rapidly
changing consumer demands.
 Insights are based on new findings from VoC
research conducted for thought leaders
such as IBM, QVC, MassMutual, and Norton
AntiVirus.
 MassMutual: Best practices for engaging
customers across the digital and multichannel mix.
 12 Action Items to transform your multichannel
engagement.

Voice of Customer (VoC) Research Findings

6
Learnings from 10,000+ hours of VoC
Interviews:

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

8
How Consumers Define “Customer Experiences”*
1. Improve the customer experience across every point of
contact with your organization.
2. Applies to all elements of the media mix and all departments
in your organization.
3. High quality experiences must be maintained throughout the
relationship “not just when you are selling or renewing”.
*Definition is based on 10,000 + hours of VoC research conducted by
Ernan Roman Direct Marketing, 5-26-13

9
How Consumers Define “Customer Experiences”*
5. Preferences must drive high quality personalization of
communications and experiences.
Privacy of preference information is essential.
4. Customer experiences must be driven by my individual
preferences regarding: message, timing, frequency, and
media mix.
*Definition is based on 10,000 + hours of VoC research conducted by
Ernan Roman Direct Marketing, 5-26-13

Satisfaction has become a given.
Engagement is now the critical
competitive differentiator consumers
are searching for.

11
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.

12
Satisfaction is a Given…
Engagement is What Counts:
“When we analyze the US hotel category, we found
less than 1 social advocacy mention per 100 stays.
With some hotels reporting guest satisfaction
scores of 80% or more, there’s clearly a large social
advocacy gap: the vast majority of people satisfied
with their experience aren’t talking about it online.”
1to1 Media, Social@Ogilvy research, “How to
Build a Global Passion Brand”, 8-29-13

Opportunity to completely rethink
how you engage with customers;
Reciprocity of Value Equation.

16
Powerful VoC Finding:
Cited so
frequently and
clearly that we
call this:
Reciprocity of
Value Equation
Voiced by
B2B and B2C
customers and
prospects

17
Reciprocity of Value Equation:
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.

18
Reciprocity of Value Equation:
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.

19
Double-digit Results from Microsoft’s
VoC-driven Customer Engagement
Programs:

20
Nice! They Care About My Preferences:
From: Ford <ford@email.fordvehicles.com>
Reply-To: Ford <myford@customersupportctr.com>
Date: Monday, September 9, 2013 10:35 AM
To: Ernan Roman <ernan@erdm.com>
Subject: Please verify your email subscription.
As part of the Ford Motor Company family, we recently received your email address –
and to help keep you informed we'd like to send you emails with news on the latest
technologies, events, owner benefits, service coupons and more. Simply confirm that
you would like to receive email updates and you'll be in the know.
As part of the Ford Motor Company family, we recently received
your email address – and to help keep you informed we'd like to
send you emails with news on the latest technologies, events,
owner benefits, service coupons and more. Simply confirm that
you would like to receive email updates and you'll be in the know.

21
No, Not At All!
Wasted Opportunity to Learn My Preferences:
Thank you!
Your Ford Motor Company email subscription has been confirmed. Look for more emails in the
future.
Check out our
vehicle lineups:
See all the
benefits of ownership:

Differentiate your company by
providing truly personalized
experiences, communications,
and offers.

23
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.
Online
shoppers view
personalization
as a critical
requirement
for
engagement.

24
“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”.
“With today’s technology,
I expect the experiences
and emails to reflect my
preferences”.

25
For me? You’ve got to be kidding:

26
Selected among TIME Magazine's
50 Best Websites of 2012
Retention
has tripled.
Monthly
active users
has tripled.
Time on site
has
increased by
75% (from
40 minutes
to over 70)
Results since
implementing
VoC-driven
personalized
experiences:
Double-digit Results from Songza’s
Personalized Music Concierge:

Deliver on the expectations of
improved customer experiences
across every channel and point
of contact with your organization.

28
Multichannel Engagement:
Today’s shopper is multi-
dimensional; 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."

29
Per VoC, greater access via mobile translates to a more
informed and empowered purchase process.
This also results in greater expectations of value from retailers.
Multichannel Shopping Translates
into More Informed Purchases:
“I think shopping on my mobile allows me to make
more informed purchases and get better deals!”

30
QVC Priority; Deliver Competitively
Differentiating Multichannel Customer
Experiences:
Do Multiple Channels Enhance or Cannibalize Sales?
Best Customers Engage on All Screens
Web
Only
Phone
Only
Mobile +
Phone
or Web
Phone,
Web
Phone,
Web
& Mobile

32
Transforming Digital
Customer Engagement
A Case Study

33
A Division of Massachusetts Mutual Life Insurance Company
• 94th on the Fortune 100 list
• Mutual ownership
Leading provider of employer sponsored retirement plans
• 401k, 403b, 457, pensions, etc.
Help the American worker to be better prepared to fund their retirement
Customer #1
Financial Advisors
3rd Party Distribution
20,000
Customer #2
40,000
Employers
B2B
Customer #3
Employees
B2C
3M+
Who is MassMutual Retirement Services?

34
24%
34%
42%
Despite our efforts, over 76% of Americans are not
prepared to fund their retirement
On track for retirement
(replacing 75%+ of
current income)
Will reach 60-80% only
with social security
included
Will not be retirement
ready by age 67
4
Our mission is to drive retirement readiness for the customers we serve. Readiness is
defined by the ability for someone to generate 75% replacement income during
retirement. Allowing them to retire on their own terms, with options.

35
• Record plan sales for 4th year in a row – 15% sales increase year over year
• Record plan retention, 96% – Industry average 91%
• Record client satisfaction – highest in company history
• Consumer communication & education experience ranked #1 by Financial Advisors
To sustain our competitive advantage!
MassMutual: Currently in a Position of Strength
So, what’s the value of a Voice of Customer (VoC)
investment now?
3

36
Abundance of quantitative data, but it’s not
driving real change
• Various interpretations of the same data
• Questioning the sources/methodology
• “Yeah, but our customers/we are different”
• Not providing in-depth insight regarding what is not optimal
and how customers want us to improve
Here’s why:
5

37
Are we prepared to meet them?
Consumer Debt
Personal Savings
Consumers needs are changing faster than ever before
6

38
• Interview length, sample size
• Sample mix, does it mirror
your customer base/target
markets.
• Difficulty and cost of
recruiting
• Customer Data…it’s never
as good as you think.
So, why do VoC research?
• Include the right
stakeholders, get buy-in
• Internal or external
execution
Things to consider before launch:
7
• We want to do better for our
customers
• Qualitative vs. Quantitative Insights
• Actionable in-depth guidance
• Answer “why/how?” questions
• Test ideas prior to any investment
• Protect our market leadership
position

39
Determine objectives
Set budget and
timeline
Determine your
audience
Develop key
questions
Conduct interviews
Analyze findings
to identify
strategy/action plan
The VoC Process
8

40
Determine barriers for
retirement planning at
various ages
Why are
workers not
prepared?
Learn what tools,
services, and
information would make
financial literacy and
action easier.
What else can
we do to help?
Find out how consumer
segments define deeper
relationships with
MassMutual at key points
in their lifecycle.
How do we create
a customer for
life?
The VoC Objectives
9

41
Three VoC Research Efforts to date
Consumer
(156 Interviews)
B2B
Decision
Makers
(107
Interviews)
B2B
Distribution
Channel
(163 Interviews)
10

42
Corporate Group 1 Group 2 Group 3 Group 4 Group 5 Group 6
Age 18-34 35-54 55+ 18-34 35-54 55+
Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days
Status Employed Employed Employed Employed Employed Employed
Total 10 10 10 10 10 10
Selecting Your Audience
Hospital Group 7 Group 8 Group 9 Group 10 Group 11 Group 12
Age 18-34 35-54 55+ 18-34 35-54 55+
Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days
Status Employed Employed Employed Employed Employed Employed
Total 8 8 8 8 8 8
Union Group 13 Group 14 Group 15
Age 18-34 35-54 55+
Tenure 1-2 years ~5 years ~10 years
Status Employed Employed Employed
Total 7 8 7
Terminated Group 16 Group 17
Age 35-54 55+
Tenure N/A N/A
Status Terminated Terminated
Total 13 13
• Who is our existing
customer?
• How does that align to our
sales strategy?
• How many?
• By product line,
demographic?
• Any 3rd party
considerations?
• Incentives?
• How good is the data?
11
Consumer
(156 Interviews)

43
Key Learnings
Our customer service experience is very positive.
Overall engagement is low.
Customers want more proactive and customized
communications.
Segmentation by needs and life stage, is relative to the support
and guidance they expect from MM.
Few customers were adequately prepared for retirement.
14

44
STEP 1
Enrollment/
Transfer Process
Immediate
STEP 2
New Customer
Welcome
Program
2-3 Weeks Later
STEP 3
Proactive,
Ongoing
Touches
Throughout the
Year
STEP 4
Annual Review/
Anniversary
Program
One Year
STEP 5
“Next Steps”
Plan
(Terminated)
Upon Job Change
VoC Driven Action Items

45
VoC-Based Enrollment/Transfer Process
Offer more educational assistance to
customers during the enrollment/transfer
process, as some have trouble
understanding even the basics of asset
allocation and selecting a savings amount.
Making the
enrollment/transfer
process as inviting,
memorable and
user-friendly as
possible will be
key, and customers
offered specific
suggestions to
help.
Providing an
overview of the
“Next Steps”
process during this
initial phase will
better prepare them.
Conducting a Needs
Assessment will help
to target appropriate
lifestage information
and education.
CRM target
appropriate set of
customers
Step 1
16

46
VoC Insight
Interacting shortly after enrollment will, as many articulated,
“make me feel like they care whether or not I’m their
customer.”
A New Customer Welcome concept was tested, and
respondents’ feedback greatly enhanced it.
Initial
scheduling
call
Customers
wanted to be able
to schedule a call
to ensure
convenience and
give them time to
prepare.
“Meeting” with
MassMutual
rep
Customers
wanted to specify
how they met with
MM: via phone,
online chat, text,
email, or even
Skype.
Follow-up
Information
Customers
reported that they
would appreciate
having written
materials for
reference.
On-site, in-
person visits
Customers
wanted to be able
to meet in a group
setting, followed
by the option to
meet individually.
New Customer Welcome Program
Step 2
17

47
VoC Insight
Most customers would welcome occasional touches by MassMutual.
These touches should focus on offering education and information about their accounts, about
MassMutual processes and policies (i.e. how to change their savings amount) and retirement
planning in general.
Proactive, Ongoing Customer Touches
MassMutual must offer multiple levels of educational assistance in a variety of formats.
Retirement
101
Step 3
18
Retirement
201
Intro to your
retirement
Webinars Help reading
statements

48
VoC Insight
Lack of engagement with both MassMutual and their retirement planning is a considerable
barrier for customers. Reaching out annually with an offer of a personal meeting will help
break through the inherent apathy and forge a stronger connection between MassMutual
and its customers. It will also remind customers, at least annually, about MassMutual and
their retirement account.
Annual Review/Anniversary Program
Representatives will offer to meet to:
• Review last year’s performance.
• Set goals for the upcoming year.
• Answer any questions.
• Offer help with consolidating other plans.
• Update their needs assessment and preferences.
• Remind them there is a “Next Steps” (Terminated)
Plan.
This program was
recommended by
customers during
the VoC. It was
validated and
refined in real time
during the balance
of interviews.
Step 4
19

49
VoC Insight
Respondents no longer with the company that initially provided their retirement plan
reported being very confused about what they were supposed to do during the transition.
Many cited feeling “lost” and “alone” and unsure about what to do with their account. This is
a significant opportunity to cement a relationship with customers who find themselves at a
critical, emotional time, perhaps looking for a helping hand to guide and reassure them.
Providing support will deepen engagement and create a connection to MassMutual.
Initial
scheduling call
Allow the
customer to
schedule a
meeting at
their
convenience
“Meeting” with
MassMutual rep
Customer
should be able
to select the
channel they
prefer: phone,
Skype, online
chat, etc.
Follow-up
Information
Send a
summary of
the meeting
for reference.
“Next Steps” (Terminated) Plan
Step 5
20

50
Post VoC Implementation Example – The SMARTVIEW
MassMutual’s Smart
View
Webisode Email Pilot
21
• Mock talk show with a cast of 3
discussing personal financial issues
• More humorous than serious
• Provided actionable takeaways
• Season 1: 9 episodes over 18
weeks
• Season 2: Launched September
2013

51
Post VoC Opt in Email Pilot
By opting-in, participants receive
proactive communication when
new episodes are ready.
Results: Opt-in vs. Control Group
94%
Higher open
rate
1,062%
Higher video
views
Zero
Unsubscribes
100%
Deliverability
22

52
SmartView Earned Several Awards
Season One: More than
22,000 unique views
Awards:
• 2013 AVA Digital Gold
• PSCA
www.youtube.com/retiresmart

54
The Future - A personalized experience for each
customer not the same generic experience for many
customers

55
Touchpoints
Higher
Engagement
Better
Outcomes
Preference Driven Multichannel Marketing
Postcards
Transactional Mailings
Webinars
Web Banners
Phone Calls
Emails
Group Meetings
Preferences
(Targeting Filter)
55

56
Process for Preference Driven Engagement
Events and
Webinars
Personalized
Communication
Personalized
Web
Experience
CRM
Customer
Intelligence &
Analytics
Customer
Service
Customer
Provided Data
Preference
Sales Channel
Integration

58
12 Actions for Digital & 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.

59
12 Actions for 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.,
On air reinforcing Social, Mobile reinforcing
Web, etc.
Be where your customers are, i.e., push
mobile during commuting hours, holidays,
etc.

60
12 Actions for 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!

61
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

62
Ernan Roman
President
Ernan Roman
Direct Marketing
ernan@erdm.com
Urvashi Singh
MassMutual
usingh@massmutual.com
Contact Information:

The Digital Transformation: Key Findings and Action Items

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