Forrester Webinar - Individualization Versus Personalization

© 2016 Forrester Research, Inc. Reproduction Prohibited 2
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

Customers Are
empowered
›  Before, organizations
owned the experience
and the commerce tech.
›  But tech in customers
hands has given them
more choice and more
control.
›  Customers now
demand experiences
along their journey
that work them.

Delivering On All Five Market Imperatives Is The
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

Each time a customer is exposed to an
improved shopping experience, their
shopping expectations are reset to a new
higher level.

Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience Is A Significant Factor In
Every Shopper’s Journey
68%
“I am unlikely to return to a
website that does not
provide a satisfactory
customer experience.”

Experience is a significant factor in
every online shopper’s journey
7%*
of consumers agree
with statement “Email
offers are usually well
timed with my needs.”

Experience is a significant factor in
every online shopper’s journey
7%*
of consumers agree
with statement “Email
offers are usually well
timed with my needs.”
* In 2015,
it was 9%!

Source: Forrester’s North American Consumer Technographics
Brand Compass Survey, Q3 ‘15
Source: Forrester's Q2 ‘16 Global eBusiness And Channel
Strategy Professional Online Survey
77%
of consumers have chosen,
recommended, or paid more for a
brand that provides a personalized
service or experience.
89%
of eBusiness and channel strategy
professionals plan to invest in
personalizing the customer
experience in 2016/2017.
Personalization is being prioritized due
to its impact on customer experience

Personalization is a Top eBusiness priority
Base 196 eBusiness And Channel Strategy Professionals
Source: Forrester’s Q3 2015 Global eBusiness And Channel Strategy Professional Online Survey
“Of the tech you will be investing in during 2016, please identify your top priorities?”
1.  Responsive Web Design
2.  Personalization Technology
3.  Customer Relationship Management Tools
4.  Mobile App and Engagement Platform
5.  Product Recommendations
6.  eCommerce Platform
7.  Site, Payment, System Security Compliance/Protection
8.  Big Data
9.  Site Search
10.  Customer Insights and Analytics Tools

75%
55%
49%
44%
32%
28%
Content on the
website
Promotions/product
offers
Product
recommendations
Reminders and
alerts
Content on the
mobile app
experience
Screen layout
What parts of the experience are you personalizing? (click all that apply)
Investments in online personalization now
go beyond product recommendations

12© 2016 FORRESTER. REPRODUCTION PROHIBITED.
26%
33%
34%
44%
51%
54%
54%
59%
72%
0% 20% 40% 60% 80%
Making the store easy to browse for customers
Ensuring that we always have competitive prices
Providing self service technologies for shoppers
Improving the knowledge of associates
Making it convenient to purchase (short checkout lines, curbside pickup,
buy online and pick up in store)
Ensuring that we always have the products customers want
Making it easy for customers to find the products they are looking for
Making the store more engaging
Personalizing the customer experience
For your organization / company, what are the main opportunities for improving the customer
experience at your company's stores? (Please choose your top 5 only.)
Source: Base: 61 eBusiness and Channel Strategy professionals
Source: Forrester's Q2 2016 Global eBusiness And Channel Strategy Professional Online Survey
In an omnichannel world, in-store
personalization also ranks top of the list

Leading luxury retailers are recognizing the
gap that segmentation creates for
personalizing customer experiences

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

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

D
epth
Reach
Relationship
E XPL OR E
US E
AS K
E NGAGE DIS C OVE R
BUY
Single data points are often used to
personalize the entire customer journey
Me
X
Single data point

D
epth
Reach
Relationship
E XPL OR E
US E
AS K
E NGAGE DIS C OVE R
BUY
Single data points are often used to
personalize the entire customer journey
Me
X
Single data pointJust because you know
one thing about the
customer doesn’t mean
you know everything
about the customer.

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

Organizations too quickly check the box
on delivering “personal” experiences
It is a waste of everyone’s
time to personalize
experiences that provide
no real value to a
customer’s journey.

Retailers must be careful to understand and
respect personal boundaries

Golden Rule: be overt
about collecting personal
data, but covert about
communicating what you
know about the customer.

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

Q1: How Successful Are You When You
Get Personalization Right?

Q2: How Successful Would You Be If You
Got Personalization Right More Often?
Q1: How Successful Are You When You
Get Personalization Right?

To start: You can only truly personalize
experiences for consumers you recognize

Today’s social-sharing customers are looking
for brands to understand them.

Email & mobile
phone # (for
SMS) are both
simple ways to
consistently
identify
customers

Retailers must utilize digital across the entire
customer journey using two systems
Capture & Understand Communicate & Automate

A solid individualization strategy is built
upon key technology investments that have
four unique characteristics.

1. Customers are identified and treated as a
segment of one using rich customer profiles.

2. Customer data is assessed in real-time
and dynamically calculates intent.

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

4. Connected technologies enable far richer
and more relevant engagements.

What should I be doing today?

Not a revolution . . . but rather an evolution

. . . 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.

What are the first steps for building
an individualization strategy?

›  Consolidate customer data from both internal databases and external
partners into a single customer data repository.
Strategic opportunities for improved personalization

›  Identify digital gaps in the ability to deliver personalization throughout
the customer journey, and fill those gaps with digital solutions.

›  Design each digital touchpoint to both use and collect customer data.

›  Take off blinders and consider the kind of customer data that can be
captured in one touchpoint for creating personalization in others.

›  Take off blinders and consider the kind of customer data that can be
captured in one touchpoint for creating personalization in others.
›  Be overt in collecting data (explain why), covert in delivering
personalization (provide great experiences without explaining).

Individualization done right doesn’t look like
personalization…

Individualization done right doesn’t look like
personalization…
…it just looks like a great experience.

Individualization
Use Cases &
Results
Doug Berg
CEO, MyAlerts

Sites Doing Individualized Alerts

Let Consumer Design / Own Their Marketing

Types Of Individualization
Availability Favorites Wish List Alerts Sale Alerts New Products
Review Alerts Registry Alerts Private Oﬀers Reminder Alerts Demand Insights

Captures Passive Intent For Future
•  Minimal Same Day Visitor/
Buyer Drop
•  Captures All Future Intent
For Each Product

Recaptures Past Interest & Reduces Erosion
•  6,400+ Customers Signed Up
•  4,164 Returned To Site
•  Pull’s Forward Past Interest
•  Reduces Margin Erosion

Visibility & Interaction With Intent Graph
921K Active Customers $113M In Future Potential

Turn Frustration Into Future Sales
As High As 40% Of Customers
Will Opt-In To Hear About
Future Product Availability
•  3,600+ Average Users Per Day
•  $216K Average Future Rev Per Day

Delights Customers & Recaptures Interest
As High As 50% Return To Purchase

More Strategic Merchandising & Planning

Product Pre Release Alerts
Captured thousands of
customers ahead of the
product launch

Chat Bots For In Store Capture
Text “Alert”
To 855-
ALERTS5
Alert
What product do you want
alerts for?
The DJI Phantom Drone
Accessory Kit
Is this it? Polar Pro Filters
DJI Phantom 4 Accessory
Kit for $37.99
Yes
I see it’s out of stock,
would you like a SMS or
Email alert when it’s back?
SMS
OK We’re On It! We’ll Text
you when it’s available

Let Customers Tune In To What They Want

Deliver Relevancy They Want (Me-Mail)

Learn What Your Customers Want

Captures & Drives Future Intent

Making Every Customer A Segment Of 1

Customer Designed Alerts
Turns
Navigation
Into An Opt
In Menu

Delivering Nearly 100% Relevancy

Drives Social Media Levels Of Engagement
Multiple
Visits Per
Week

Easy User Controls At Interest Levels
Get Away
From This
To Product, Category, And Brand Level

Wish List > Watch List
Adds Alerting
Capabilities To
Any Wish List
Every Product
Added To List
Becomes Alert

Wish List > Watch List
Before Alerting After Alerting
•  Nearly 10X Higher Engagement Rate
•  40% Return To Site Monthly

Reminder Alerts
Allow
Customers To
Set Reminders

Move From Historical To Future Focused

Automated Monitoring & Messaging Engine

How Individualization Compares

forrester.com
Thank you
Brendan Witcher
bwitcher@forrester.com
+1 617.613.6315
Doug Berg
doug@myalerts.com
+1 952.200.4233

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