Pre Conference: Transforming Your Customer Experience

Transforming Your
Customer Experience:
4 Steps and
49 Actions Items
Prepared by
Ernan Roman Direct Marketing

October 12 & 13, 2013
1

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 B to B 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

ERDM specializes in conducting Voice of Customer research to identify
Customer Experience strategies that generate significant increases in response
and revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft,
and Symantec Corp.
As a leader in providing VoC research-based guidance, ERDM has conducted
over 10,000 hours of interviews with client’s customers and prospects to gain
an in-depth understanding of their expectations for high-value relationships.
Ernan’s latest book on marketing best practices is titled, “Voice of the Customer
Marketing: 5-Step Process to Create Customers Who Care, Spend, and Stay”.
Ernan writes the widely read and Huffington Post published blog, “Ernan’s
Insights on Marketing Best Practices”.
His other books include “Opt-in Marketing” and “Integrated Direct Marketing”.
2

Presenters
Kris Gates
Vice President, Customer Experience Marketing, MassMutual Retirement Services
kgates@massmutual.com
Eric V. Holtzclaw
Vice President & General Manager, PossibleNOW, Preference Management Consulting
ehotzclaw@possiblenow.com
Douglas Stein
President, HMS National
dstein@hmsnational.com
Bob Nanna
Marketing Manager, Threadless
bobn@skinnycorp.com

3

Kris Gates
VP, Consumer Experience Marketing
MassMutual Retirement Services

Kris Gates

VP, Consumer
Experience
Marketing
MassMutual
Retirement
Services

Kris Gates joined MassMutual in 2006 and is currently VP of Marketing, focused
on the consumer experience for the Retirement Services Division.
His responsibilities include development, execution, and measurement of
marketing strategies designed for employees of companies offering MassMutual
retirement and insurance products.
Prior to assuming his current role, Mr. Gates served as AVP, Customer &
Interactive Marketing, where he was responsible for the touch points making up
the distribution, plan sponsor and participant experience. Before that, he spent
3 years focused on the distribution marketing of retirement plans.
Prior to joining MassMutual, Mr. Gates spent 2 years as a Marketing Manager in
the HR consulting industry, where he developed employee marketing campaigns
and programs for Fortune 500 clients. Before that, he spent 5 years as an
Institutional Product Administrator at JP Morgan Investor Services.
Mr. Gates holds a Bachelors Degree in Business from Western New England
College.
www.massmutual.com
4

Workshop Agenda
• Saturday, 10/12:
Part 1; 10:00 - 12:30
Step 1, How to Use Voice of Customer (VoC) Insights to Drive Your
Customer Experience Strategies
♦Speakers:
Ernan Roman, President, ERDM
Kris Gates, VP, Customer Experience Marketing, MassMutual
♦Break: 11:15 - 11:30
Lunch: 12:30 - 2:15
Part 2; 2:15 - 4:30
♦Step 2, Create Powerful Preference-Based Databases With Customer’s
Self-Profiled Information
♦Speakers:
Eric Holtzclaw, VP, PossibleNOW
♦Break: 3:15 - 3:30
5

Workshop Agenda
• Sunday, 10/13:
Part 3; 10:30 - 11:20
♦Step 3, How to Use the 5 Principles of Multichannel Marketing
♦Speakers:
Douglas Stein, President, HMS National
Lunch: 11:20 - 12:50
Part 4; 12:50 - 1:50
Step 4, Increasing the Relevance and ROI of Your Online and
Social Media Marketing
♦Speakers:
Bob Nanna, Marketing Manager, Threadless

6

Per ERDM VoC, 4 Challenges for Companies
Over the past 12 months, 4 key challenges have emerged from research:
1.Given increasing attrition rates due to competition, new focus
on retention and reducing churn, versus traditional emphasis
acquisition.

on

2.Critical element of retention strategies: provide much higher levels of
personalization. Applies to communications, offers, and experiences.
3.Learn how to engage customers to opt-in and provide detailed
preference data, thereby enabling true personalization.
4.Achieve frictionless, high-value, customer engagement across the entire
online and traditional multichannel mix.

9

Overview

Amazing Opportunities for Engagement

Business Insider 5/17/12
10

Overview

Samuel Adams Crowd-Craft Project:
Customers created “B’Austin Ale”
 Invited Sam's Twitter, Facebook, and Google+ friends to

provide their preferences to help create a new beer
 Asked to make their choices about the beer's malt profile,
hops selection, yeast type
 Per Steve Greenlee, at 99 bottles:
“Man is it good”

New York Times 7/30/12
11

Overview

Time to Stop Doing It Wrong

WSJ 3/19/12
12

Overview

Impact of Poor Customer Experiences

“...failing to deliver a high-quality customer experience can
result in a staggering erosion of a company’s customer base;
loss of as much as 50 percent over a five-year period.”
Accenture, 3/12

13

Overview

Consumers Trust Self-Selected Content
More Than Push Communications
Per Forrester US & European research:
Only 10% of consumers trust advertising
Between 85% and 90% of consumers don’t trust posts by companies or brands
on social networking sites.
Self-selected digital pull content rules the roost with up to 70% of consumers
affirming that they trust brand recommendations from friends.
Brand-led advertising online and offline has lost its allure.
Today’s consumers decide where, when and how they want to engage
with brands.

B2C, 3/22/13
14

Overview

Time to Get it Right
Treat customers the way we want to be treated…

…and generate double-digit increases in response and revenue

16

Overview

Goal for this Workshop
Help you achieve the success of innovators such as:

17

Overview

Achieve Consistent Double-Digit Results
Microsoft’s success:
Opt-in rates up to 95%

Open rates greater than 50%
Response rates performing in the doubledigits
Volume license revenue from those in the VoCdriven program is 2x greater than the control

18

Overview


“When HP uses the Voice of Customer
methodology, our marketing campaign results
improve dramatically: response rates improve
3x to 10x, sales increase 2x or more, and we
can spend far less to get great results.”
-- Gary Dawson, Hewlett-Packard
Americas Advertising and
Direct Marketing Manager

19

Overview

HMS National, Inc.

Life Line Screening

*updated 8/15/13

*updated 8/15/13

20

Overview

The VoC-Driven CEM Process

CEM is a process
that
values, and is
guided by, the
insights of
customers
and prospects.
prospects

Goal is to achieve
in-depth
relationships based
on understanding
how customers and
prospects define
their expectations
for relationship,
relevance and
engagement .

21

Companies who
implement the CEM
process consistently
achieve doubledigit increases in
response, revenue
and retention.
Includes Microsoft,
NBC Universal,
IBM, HP,
and mid-size
companies.

Overview

4-Step Voice of Customer-Driven
CEM Process for Achieving
Consistent Double-Digit Results
Step 2:
Opt-In
Engagement

Step 4:
Online and
Digital
Step 1:
VoC
Research

Step 3:
Multichannel
Marketing
22

Overview

Step 1
•

How to Use Voice of Customer
(VoC) Insights to Drive Your
Customer Experience Strategies

•

Definition: Specialized depth
research to understand
customer/prospect needs,
decision making process and
expectations of the optimal
experience via web, digital,
email, offline media and
customer service call centers.

•

Step 1:
VoC
Research

These insights enable
development of customer
driven Engagement Strategies
and Action Plans.
23

Overview

Step 2
•

•

Create Powerful
Preference-Based
Databases With
Customer’s Self-Profiled
Information

Step 2:
Opt-In
Engagement

Definition: VoC-driven
process for engaging
customers/prospects to
Opt-in and self-profile their
preferences, thus creating
uniquely accurate Opt-in
databases.

Step 1:
VoC
Research

24

Overview

Important!
Opt-in is not
about
passively
agreeing to
receive
email.
It’s about actively opting-in to a
relationship and self-profiling your
preferences and aversions.
25

Overview

Step 3
•
•

How to Use the 5 Principles
of Multichannel Marketing

Step 2:
Opt-In
Engagement

Definition: VoC-driven
process for deployment of
the social and traditional
multichannel media mix,
per individual preferences.

Step 1:
VoC
Research

Step 3:
Multichannel
Marketing

26

Overview

Step 4
•

•

•

Increasing the Relevance
and ROI of Your Online
and Social Media
Step 4:
Online and
Marketing
Digital
Definition: Digital media
represents not a means
for direct selling, but a
means for creating or
improving relationships.
Selling is a by-product of
the quality and mutual
benefit of those
relationships.

Step 2:
Opt-In
Engagement
Step 1:
VoC
Research

Step 3:
Multichannel
Marketing

27

Overview

Step 1: How to Use Voice of
Customer (VoC) Insights to
Drive Your Customer Experience
Strategies
Step 1:
VoC
Research

28

Step 1: VoC Research

JC Penney;
Consequence of Ignoring the Customer
By early fall 2011, Mr. Johnson was tackling Penney’s pricing,
which he thought used too many discounts.
He ignored a study Penney had just completed on customer
preferences, and gave merchants a one-sheet grid explaining
what prices they could use.
“Ron’s response at the time was, just like at Apple, customers
don’t always know what they want,” said an executive who
advocated testing. “We’re not going to test it — we’re going
to roll it out.”
NYT, 4/9/13
29


Result of Arrogance

30


Global CMO Survey:

For 42% of CMOs:
“…representing the voice of the customer
is one of the most critical factors in ensuring
personal success as a marketer”.
“CMOs and their peers understand that the real challenge is
…to become the experts of the customers…They must
understand what customers represent for the whole
organization to help shape the strategy for the overall
business.”
-- Luca Paderni, VP and Principal Analyst,
Forrester.

Heidrick & Struggles and Forrester Research, 1/23/12
31


Don’t
re-engineer
your relationship
marketing
strategies from
the isolation
of your
conference
room. . .

The economy and
social media have
profoundly changed
buyer’s priorities and
expectations.
If you have not
fundamentally
recalibrated
strategies within the
past 12 months, you
are out of sync with
your customers.

32


VoC Learnings from Clients Including:

33


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
34


How Consumers Define “Customer Experiences”*
4. Customer experiences must be driven by my individual
preferences regarding: message, timing, frequency, and
media mix.
5. Preferences must drive high quality personalization of
communications and experiences.
Privacy of preference information is essential.

*Definition is based on 10,000 + hours of VoC research conducted by
Ernan Roman Direct Marketing, 5-26-13
35


Per VoC: Customer
Experience
Requirement # 1
Significant gap between what
customers/prospects consider a great
customer experience and what marketers
are providing.

36


Per VoC Research Findings
Across the last 6 months, a consistent trend:
Consumers have
shifted from being
passive recipients
of ‘push’
marketing, to
selecting
companies which
engage, listen to,
and act on, input
from customers
and prospects.

Consumers expect companies to
use
their preferences to
deliver
increasingly personalized offers,
communications, and experiences.
Your Opportunity:
How much more
can you be doing to
engage and
em
power your
customers and
prospects?

37


VoC Learnings

Question

Answer

Which has more impact on
retention and repeat
purchases;
Customer Satisfaction or
Customer
Engagement/Relationship?

Engagement/Relationship
strength has 12 times more
influence on retention and
repeat purchases than
Satisfaction.
Satisfaction is a minimum
expectation.

38


VoC Learnings

Question

Answer

Which is a more significant
driver of word of mouth
recommendations;
Customer Satisfaction or
Engagement/Relationship?

Engagement/Relationship
strength has 18 times more
influence on word of mouth
recommendations than
Satisfaction.
This has profound implications
for re-allocating greater
budget for Retention/
Relationship building.
39


VoC Learnings
“The fastest way
to be forgotten is
to buy from you.”

“We buy. You
disappear without a
trace.
Oh, except for the
monthly bills.”

“Relationship?
You guys are about
‘buy and die’!”

40


Smart Engagement

41


Smart Engagement

42


Another Powerful VoC
Finding:
Opportunity
To Transform
Your Marketing!

Voiced by B2B
and B2C
customers and
prospects

Cited so
frequently and
clearly that we
call this:
Reciprocity of
Value Equation

43


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.
44


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 achieve 25%
to 50% increases in revenue.

45


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

Opt-in rates
up to 95%.

Response
rates
performing in
the doubledigits.

Open rates
greater than
50%.

46

Revenue
2x greater
than the
control.


Per VoC: Customer
Experience
Requirement # 2

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

47


Customer Experience Requirement #2:
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 necessary requirement
for engagement.

48


BUT, 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”.

49


VoC Learnings
Customers who have shown an interest in Tools &
Home Improvement might like to check out our top
deals on top brands, as well as great gift ideas.

“Communications
should be relevant to
my interests and
preferences.”

“Email may be the base
of your communications
with me, but I’m getting
too much junk. If it’s really
important, send it to
me by mail.”
50


Double-digit Results from Songza’s
Personalized Music Concierge:

Results since
implementing
VoC-driven
personalized
experiences:

Retention has
tripled.

Monthly
active users
has tripled.

Time on site
has
increased by
75% (from
40 minutes
to over 70)

Selected among TIME Magazine's
50 Best Websites of 2012
51


Per VoC: Customer
Experience
Requirement # 3
Deliver on the expectations of improved
customer experiences across every point
of contact with your organization.

52


Today’s shopper is multi-dimensional;
multi-channel and multi-purpose.
Many report using multiple media,
often at the same time.
Per a recent VoC:
"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.”
54

VoC Learnings

“Self-serve makes
it easy for you, not
the customer.”

“Don’t just sell me
the service. Provide
ongoing value at key
times.”

“Email blasts
do not equal
‘relationships’.”

“The quality of your
service is key to
how we judge you.”
55


VoC Insight re: Customer Service

“The CSR had a great attitude and spoke
as if she was smiling.
Made me feel like this was my time and she
would spend the time necessary.
This told me a lot about the company”.

56


Web “Call Me” Option Resulted in Great Service
Experience
This is Grace from Amazon. Thank you for giving me the chance to assist
you today.
I’ve created an authorized return label that may only be used for the return
of this item. Follow the link below to print your mailing label.

Also, I’ve waived the $8.99 shipping charge for your recent order,
Order ID: 107-0409587-9302640

Did I solve your problem?
YES
NO
57


Service as a Driver of Shareholder Value
AmEx views Customer Service as a major driver of market valuation
and shareholder value.
“For every servicing transaction we ask, ‘How can we
get the customer to feel better about American Express
and recommend it to a friend?’. That’s a promoter.”
“For a promoter…we see a 10% to 15% increase in
spending and four to five times increased retention,
both of which drive shareholder value.”
Jim Bush,
Customer Service Czar
American Express
Fortune, 4/19/12

58


Per VoC: Customer
Experience
Requirement # 4
Provide high quality experiences throughout
the customer lifecycle, (not just during
Acquisition & Renewal).

59


Customer Experience Requirement # 4:
Per VoC, the Entire Customer Experience must be integrated.
How effectively are you integrating each of these experiences?

60


New Customer Onboarding:
Per VoC, customers want MSC to
learn their needs at the beginning of
their Lifecycle.
 VoC-based Onboarding Program:
♦ Show customers that MSC cares; they are more than “just a sale”.
♦ Take Step1 in the preference profiling process by determining what
products, services, and communications are most relevant.
♦ Determine which channels will be most effective to deepen the
relationship with each individual customer.
 Results:
♦ 20% lift in response rates.
♦ Over 20% lift in revenue per customer.

61


Post Sale Engagement…Sort Of:
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.

62

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:

63

10 Insights to Gain from Your VoC Research
1.

How to change from transactions to engagement based on a deep
understanding of customer's needs.

2.

The critical issues facing decision makers in this economy, as they
evaluate your product or service.

3.

How consumers identify the key steps in their decision making process.

4.

What information and offers are most effective at each step, and
via what mix of channels.

5.

Who consumers identify as the decision makers and the empowered
influencers.

64


10 Insights to Gain from Your VoC Research
6.

How your customers define a value-added and competitively
differentiating relationship with your company.

7.

Effective value propositions for engaging customers in an Opt-In
relationship, so they will trust you with their detailed self-profiled
preferences.

8.

What initial preference information will they provide and how can this
be enriched/expanded in the course of progressive profiling.

9.

The optimal role for: web, digital, email/mail, inside sales, field sales,
tech, stores.

10. This information will populate your Opt-In database with uniquely
accurate information.

65


VoC Helps Transform Your Marketing…
• From “CRM” and “managing”
customers... which has had a
high failure rate...

• To “CMR” and “customerto

managed” relationships.

Per Disney:
“The term ‘CMR’ reinforces the notion of the guest
being the one who is driving the experience.”
66


Transforming the Customer
Experience
A Case Study

__________

Transforming the Customer Experience

MassMutual Retirement Services (MMRS)
•
•

A division of MassMutual Life Insurance Company, Fortune 94.
Leading provider of employer sponsored retirement plans including 401k, 403b, 457,
pensions, etc.

•
•

Help the American worker to be better prepared to fund their retirement.
Distribute to employers through 3rd party financial advisors. Once the B2B sales
process is complete, the product is available to consumers (employees).

By the Numbers:
•
•
•
•
•

3 million+ consumers (plan participants)
40,000 employer relationships
Avg. consumer age = 42
Avg. consumer account balance = $43k
Avg. savings rate = 5.50%

?

Our mission is consumer
retirement readiness, defined by
their ability to generate 75%
replacement income during
retirement, so the American
worker can retire on their own
terms.

How can we accomplish this?
__________


2

Currently in a Position of Strength
• 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

So, what’s the value of a Voice of Customer
(VoC)
investment now?

To sustain our competitive advantage!
__________


3

Despite our efforts, the majority of Americans are
not prepared to fund their retirement.
Will not be retirement
ready by age 67

On track for retirement
(replacing 75%+ of
current income)

Will reach 60-80% only
with social security
included

76%

can make adjustments
now that will allow them
to retire by age 67.

__________


4

Abundance of quantitative data, but it’s not driving
real change
Here’s why:
• 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

__________


5

Consumers needs are changing faster than ever before.
Are we prepared to meet
them?
Consumer Debt

Personal Savings

__________


6

So, why do a VoC program?
•• We want to do better for our customers
We want to do better for our customers

•• Answer “why/how?” questions
Answer “why/how?” questions

•• Qualitative vs. Quantitative Insights
Qualitative vs. Quantitative Insights

•• Test ideas prior to any investment
Test ideas prior to any investment

•• Actionable in-depth guidance
Actionable in-depth guidance

•• Protect our market leadership position
Protect our market leadership position

Things to consider before launch:
• Include the right
stakeholders, get buy-in
• Internal or external
execution

• 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.

__________


7

The VoC Process

Determine
Determine
objectives
objectives

Develop key
Develop key
questions
questions

Set budget and
Set budget and
timeline
timeline

Determine your
Determine your
audience
audience

Conduct interviews
Conduct interviews

Analyze findings
Analyze findings
to identify
to identify
strategy/action
strategy/action
plan
plan

__________


8

The VoC Objectives

Determine barriers for
retirement planning at
various ages

Why are
Why are
workers not
workers not
prepared?
prepared?

Learn what tools,
services, and
information would
make financial literacy
and action easier.

Find out how
consumer segments
define deeper
relationships with
MassMutual at key
points in their lifecycle.

What else can
What else can
we do to help?
we do to help?

How do we create
How do we create
a customer for
a customer for
life?
life?

__________


9

Three VoC Research Efforts to date

Distribution
Distribution
Channel
Channel
(163 Interviews)
(163 Interviews)

B2B
B2B
Decision
Decision
Makers
Makers
(107
(107
Interviews)
Interviews)

Consumer
Consumer
(156 Interviews)
(156 Interviews)

__________


10

Selecting Your Audience
Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

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

10

10

10

10

10

10

Group 7

Group 8

Group 9

Group 10

Group 11

Group 12

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

• How does that align to our sales Status
Total
strategy?

Employed

Employed

Employed

Employed

Employed

Employed

8

8

8

8

8

8

Group 13

Group 14

Group 15

Group 16

Group 17

18-34

35-54

55+

35-54

55+

Tenure
• By product line, demographic?

1-2 years

~5 years

~10 years

Tenure

N/A

N/A

Status

Employed

Employed

Employed

Status

Terminated

7

8

7

Terminate
d

13

13

Consumer

Corporate

(156 Interviews)

Age

Total
Hospital

• Who is our existing customer?

• How many?

• Any 3rd party considerations?

Age

Union
Age

Total

Terminated
Age

Total

• Incentives?
• How good is the data?

__________


11

Develop Key Questions

Key VoC Question
Funnels

• Limit to major topics to
allow for in-depth probes
& discussion within the 60
minutes.
• Develop/Review Interview
Guide.
• Evolve based on
learnings.

__________


12

Conduct Interviews
• 156 one hr. interviews.
• All by phone with a professional interviewer.
• Interviews recorded; “best of” listened to by
management team.
• Debriefs for strategy ideas and revised areas
for probing.

__________


13

Key Learnings
Our customer service experience is very positive.
Our customer service experience is very positive.

Overall engagement is low.
Overall engagement is low.

Customers want more proactive and customized
Customers want more proactive and customized
communications.
communications.
Segmentation by needs and life stage, is relative to the support
Segmentation by needs and life stage, is relative to the support
and guidance they expect from MM.
and guidance they expect from MM.

Few customers were adequately prepared for retirement.
Few customers were adequately prepared for retirement.

__________


14

VoC Driven Action Items
Based on VoC learnings and specific customer suggestions, the recommended
action steps address communications and programs through key life stages.

__________


15

Step 1

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.

Conducting a Needs
Assessment will help
to target appropriate
lifestage information
and education.
CRM target
appropriate set of
customers

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.

__________


16

Step 2

VoC Insight

Interacting shortly after enrollment will
“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.

New Customer Welcome Program
Initial
scheduling
call
Customers
Customers
wanted to be able
wanted to be able
to schedule aacall
to schedule call
to ensure
to ensure
convenience and
convenience and
give them time to
give them time to
prepare.
prepare.

“Meeting” with
MassMutual
rep

Customers
Customers
wanted to specify
wanted to specify
how they “met”
how they “met”
with MM: via
with MM: via
phone, online
phone, online
chat, text, email,
chat, text, email,
or even Skype.
or even Skype.

Follow-up
Information
Customers
Customers
reported that they
reported that they
would appreciate
would appreciate
having written
having written
materials for
materials for
reference.
reference.

On-site, inperson visits
Customers
Customers
wanted to be able
wanted to be able
to meet in aagroup
to meet in group
setting, followed
setting, followed
by the option to
by the option to
meet individually.
meet individually.

__________


17

Step 3

VoC Insight
Most customers would welcome occasional touches by MassMutual.
These touches should focus on offering education and information about their accounts, MassMutual
processes and policies (i.e. how to change their savings amount) and retirement planning.

Proactive, Ongoing Customer
Touches
MassMutual must offer multiple levels of educational assistance in a variety of formats.

Retirement
101

Retirement
201

Intro to your
retirement

Webinars

Help reading
statements

__________


18

Step 4

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 the 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.

__________


19

Step 5

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.

“Next Steps” (Terminated) Plan

Initial
scheduling call

Allow the
Allow the
customer to
customer to
schedule aa
schedule
meeting at
meeting at
their
their
convenience
convenience

“Meeting” with
MassMutual rep

Follow-up
Information

Customer
Customer
should be able
should be able
to select the
to select the
channel they
channel they
prefer: phone,
prefer: phone,
Skype, online
Skype, online
chat, etc.
chat, etc.

Send aa
Send
summary of
summary of
the meeting
the meeting
for reference.
for reference.

__________


20

Post VoC Implementation Example – The SMARTVIEW
•• Mock talk show with a cast of 3
Mock talk show with a cast of 3
discussing personal financial issues
discussing personal financial issues
•• More humorous than serious
More humorous than serious
•• Provided actionable takeaways
Provided actionable takeaways

MassMutual’s Smart
View
Webisode Email Pilot

•• Season 1: 9 episodes over 18 weeks
Season 1: 9 episodes over 18 weeks
•• Season 2: Starting September 2013
Season 2: Starting September 2013

__________


21

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%

1,062%

Zero

100%

Higher open
rate

Higher video
views

Unsubscribes

Deliverability
__________


22

How We Segment Our Customers

PAST
One size fits all

PRESENT
Persona based

FUTURE

3 million
3 million

One-on-one

__________


23

Improving Customer Experiences

360°
View

Targeting for Relevancy and Engagement
34 Years Old
34 Years Old

Age Groups:

3

Gender:

2

Attitude:

3

Behavior:

5

Product Mix:

7

Preferences

∞

Female
Female

6
18

Unsure
Unsure

90
401k
401k

∞
∞

Attended ‘Gen Y’
Attended ‘Gen Y’
Webinar
Webinar

Call Center
Call Center
__________


24

Holistic Process

Customer
Customer
Provided Data
Provided Data
Preference
Preference

Customer
Customer
Service
Service

for Scaling CEM
Customer
Customer
Intelligence
Intelligence
& Analytics
& Analytics

CRM
Sales Channel
Sales Channel
Integration
Integration

Personalized
Personalized
Communication
Communication

Events and
Events and
Webinars
Webinars

Personalized
Personalized
Web
Web
Experience
Experience

__________


25

Preference Driven Integrated Multi-Channel Experience

Postcards
Phone Calls

Web Banners
Group Meetings

Marketing Tools
Webinars

Transactional Mailings

Preferences
(Targeting Filter)

Higher
Engagement
Better
Outcomes

Emails

__________


26

3 Customer Experience Action Items
•

Measure and test everything. Customer outreach should be at
the frequency and in the channel your customers prefer.

•

Set up organized “listening posts” with client facing areas of the
business for real time voice of the customer feedback.

•

Analyze how you are onboarding (welcoming) your new
customers. Invest in this touch, it may end up saving you long
term.

__________


27

Thank You

__________


28

Your Top 3 Takeaways?

1.
2.
3.
95


Step 1:
VoC
Research

How to Use Voice
of Customer
(VoC) Insights to
Drive Your
Customer
Experience
Strategies

Step 1: Summary
4 Steps in the VoC-driven Customer
Engagement Marketing Process:
1.Use Voice of Customer Research to Truly Drive Your
Engagement Strategies
2.Create Powerful Opt-In Databases to Drive High
Impact Personalization Strategies
3.Use the 5 Principles of Multichannel Marketing
4.Increase the Power of Your Online and Digital
Media Marketing.

96

Step 1:
VoC
Research

How to Use Voice
of Customer
(VoC) Insights to
Drive Your
Customer
Experience
Strategies

Step 1: Summary
VoC-insights help you transform your marketing
from “CRM” and “managing” customers to “CMR”
and “customer-managed” relationships.
Use VoC research to help you understand and pre-test
how to change from a relationship based on just
transactions to a deeper engagement based on a
broader understanding of customer needs.
Use VoC to engage customers to Opt-In and self-profile
their preferences. This information will populate your
Opt-In database with uniquely accurate information.

97


Step 2:
Create Powerful Preference-Based Databases
With Customer’s Self-Profiled Information.
Drawing for 2 Autographed Books:

98

Step 2: Create Powerful
Preference-Based Databases With
Customer’s Self-Profiled
Information
Step 1:
VoC
Research

99

Step 2:
Opt-In
Engagement

Eric Holtzclaw

Vice President & General Manager
PossibleNOW Preference Management Consulting Org.

Eric V. Holtzclaw, Vice President and General Manager of
PossibleNOW’s Preference Management Consulting Organization, has
spent 20+ years creating opportunities through the practical
application of emerging technologies and trends to business.
Eric
Holtzclaw
Vice President &
General Manager
PossibleNOW
Preference
Management
Consulting Org.

Eric leads a multi-disciplinary team of seasoned experts that advise the
world’s leading brands on strategic investments in technology,
compliance oversight and operational best practices to maximize
investments made in marketing and customer experience.
Eric's book, Laddering: Unlocking the Potential of Consumer
Behavior, is scheduled for release in July, 2013 and his column, Lean
Forward, on entrepreneurship and emerging trends appears weekly on
Inc.com.
eholtzclaw@possiblenow.com
www.possiblenow.com

100

Step 2: Opt-In Engagement

Traditional “Spray and Pray” Marketing
Isn’t Working So Well…

101


Creepy or Helpful?

Hey, we noticed you looking at digital
cameras on Amazon.com and thought you
might be interested in today’s Woot deal:

102


Simple Web Visit Leads to Email & Phone
Harassment…

I hope that you don’t view my persistence
as being pushy.

103

Step 3: Multichannel Marketing

Opt-Out is the US Standard
• More than 76% of U.S. adults have registered for the National
Do-Not-Call (DNC) Registry (Harris Interactive).
Average Presidential election voter turnout: 50%

• As of 9/13, over 221 million phone numbers listed on the DNC.
Twelve million new numbers registered over the last 18
months.

• The DMAChoice mail opt-out program has served over 12
million consumers over the past 15 years.

• In the 1st year, 1 million consumers opted out via the
Digital Advertising Alliance’s AdChoices Icon, on
behaviorally-targeted ads.

• Pending Canadian law: electronic commercial messages,

including email, texts, and
messages via social media,
going to, through, from Canada
without prior consent, could bring severe penalties.

• Italian government banned all unsolicited mail, phone, e-mail,

NY Times 4/29/12

fax, mobile communications without affirmative consent.
104


Empowered consumers are questioning why the Opt-Out burden is
on them... versus marketers competing to engage them with value
propositions that motivate them to Opt-In
Unfortunately,
Opt-Out
marketing policies
are the norm.
They allow
marketers to send
offers
and use on-line
information
to target their
marketing.

Frustration is
growing.

The message:
If you don’t like
these practices
the burden
is on you
to
Opt-Out.

On 8/9/12, the FTC
fined Google
$22.5 mill. for Safari
privacy violations.
Largest FTC civil
penalty, “…if you’re
going to hold
people’s most
private data, you
have to …honor
privacy
commitments”
Bur. Cons.
Protection
105

House re Verizon;
"While we
understand the
benefits of
tailoring
advertising to
customers, we
believe that they
should be in
control of the
sharing and
disclosure of
their personal
information
through an
Opt-In process.”

The Alternative…
Powerful and Socially Responsible Opt-In Relationships
Respect customers and
prospects. Ask them
to define their individual
requirements in
response to meaningful
value propositions.
As a result, they will
populate your database
with uniquely detailed,
actionable information.

106


Important!
Opt-in is not
about
passively
agreeing to
receive
email.
It’s about actively opting-in to a
relationship and self-profiling your
preferences and aversions.
107


VoC Learnings
Advice from C-Level Executives

•“You think because I’m the CIO, you have to send all your marketing
communications to me. That’s not how decisions
are made here.”

•“You’re using me as an

executive mailroom and
I don’t appreciate it.”

•“It’s in my interest to

tell you who you
should communicate
with, what information
they need, when and
via what medium.”

108


Privacy Must be Honored

109


Complex Privacy Settings

110


The Ever-Expanding Privacy Policy
In the last five years, Facebook’s privacy policy has grown to 5,830 words today, from 1,004 in
2005. In addition, Facebook offers an in-depth Privacy FAQ page, with 45,000 words.

111


The Opt-In Process
1.

VoC learnings drive strategies for customer engagement so they
Opt-In to a deeper level of engagement.

2.

Customers profile: needs, decision making process, offer, message,
timing and media preferences. This detailed information builds your
uniquely accurate preferences database.

3.

Customers are actively engaged in contributing to, and defining their
relationship with your company.

112


The Opt-In Process
4.

Per VoC Research, Opt-In is based on Reciprocity of Value:
•

•

If they trust the marketer and see a useful value proposition,
consumers will opt-in to sharing increasingly detailed personal
preference information in exchange for the marketer’s promise
to deliver relevant information and offers.

•

5.

Recognition by consumers that in order to receive or access
increasingly relevant information, they must share increasing
amounts of information regarding their preferences.

As a result of these interactions, consumers are more likely to
open, engage with, and respond to, communications and
offers.

Without this preference data, true personalization driven marketing
cannot happen. Traditional transactional data is not enough!

113


Keep in Mind. . . This Process Requires:
Operational precision
in managing offers
and communications
per individual
customer
requirements.

Challenging to
implement!

114


5 Ways to Earn Consumer Opt-In
Results from 130+ VoC research efforts conducted by ERDM indicate that consumers
have 5 criteria for determining whether to Opt-In to sharing in-depth information:

115


Case Study
VoC-Driven Small Business
Relationship Marketing
Program

116


A majority of Microsoft sales
in the SMB segment come
through a channel partner
(Value Added Reseller,
Retailer, OEM).
Customers feel they have no
relationship with Microsoft.
SMB customers are mostly
transactional; gather
information, trial, purchase,
and disengage.
Previous Small Business
VoC indicated that most
customers would welcome a
relationship with Microsoft.
Microsoft

Hence the need for a relationship program.
117


As a result of the first Small Business VoC, Microsoft
6 digit
developed the SB+ Relationship Program.
membership
3.7x more
responsive

SB+ Relationship
Marketing Opt-Ins
1.3x more
revenue

20 points
more
satisfied

118


How to Approach the Diverse SMB Segment?
Based on the success of SB+, Microsoft wanted to scale
to midmarket companies (size: 100-150 employees) .

Key questions

Program Goals

•Will the online resource appeal to

•Increase customer satisfaction scores.

midmarket IT and business decision
makers? Will they opt-in?

•Increase licensing renewal rate.
•Improve customer engagement.

•What are key enhancements that
can help deepen customer
engagement?

•Deliver the most relevant content and

•Can results continue to exceed

•Improve marketing efficiencies.

communications.

results of house file?

119


VoC Helped Answer Key Questions
For 1-500 employees, what
type of training, support,
community and
communication can drive
deeper engagement?
How to improve the value
and usage of training.
How to improve the
support offerings to
provide greater value.
How customers define a
value-added community.
How the communications
strategy should be
improved.
120


VoC Learnings
Relationship Program Value Must Be Obvious and Differentiated

Make it
easy

Keep it
focused

Deliver
‘wins’

Must provide
easy site
navigation.

Online Resource
Center (ORC)
value:

Use lay terms and
user friendly
(non-tech) key
word searches.

One stop,
convenient
resource for SMB
customers.

Make the initial
interactions
engaging
by offering a
‘quick training.’

Provide access to
information and
business solutions
from every part
of Relationship
Program.

Clearly different
from other
resources.
Every facet of the
user experience
121
must prove this.

Help users by
providing industry,
business and
technology info.
Partner with nonMicrosoft experts
for valuable
content.

Learnings
Personalize the Experience Per Business Needs,
User Level, Size, Industry and Products
Focus on
needs
Develop from the
user’s
perspective,
not Microsoft’s.
Request user
feedback at every
touch point.
Use feedback to
evolve the
experience,
provide relevant
content/
communication.

Support
Alleviate pain by
using simple terms
as self-help key
words.
Highlight common
problems and
provide quick
access to
solutions.
Leverage peers for
additional
support.
122

Satisfy
Different
Needs
Target content
based on start-up,
segment, business
needs and user
level.
Offer ways for
three different
user types
(Learners,
Connectors,
Collaborators) to
engage.

Learnings
Tie Training, Support and Community
Into a Differentiating Relationship
Training

Support

As a key benefit,
users should be
introduced to
training early on.

Alleviate pain by
using simple terms
as self-help key
words.

Follow-up
training to
encourage the
next ORC
interaction.

Highlight common
problems and
provide quick
access to
solutions.

Offer userdefined
categories for
easy access.

Leverage peers for
additional
support.
123

Community
Peer interaction
must be facilitated
across a variety of
demographic and
business areas.
Points of
interaction:
Level of
knowledge.
Common
problems.
Forums.
SMEs/Moderators.

Launched the Microsoft Business Resource Center

124


The Value of Opt-In Preferences

Asked 14 questions,
such as:

FUTURE: Apply a progressive profiling strategy, reducing
the need to ask all questions at once. Keep improving the
relevance of questions and the value exchange.

Opt-In
Profile

Name
Email
Primary role in
company (i.e. Sales,
Marketing, Finance)
Microsoft software
usage/ownership

Value
Exchange

Relevance

Customers actively engage expecting Opt-in data will help
something of equal value in return.
achieve greater
relevance,
marketing efficiency,
and increased
lifetime value.

Number of employees
Industry
Primary customer
business need
What is the biggest
challenge facing their
organization today?
Number of PCs
Number of servers

125


SMB Relationship Program At-a-Glance
For Customers:

For Microsoft:

Personalized
service

Preferences

Customized
information
Ease of use
Relevance

Relationship desk

Tier 1
Trigger-based
database e-marketing

Click/usage
behavior
Purchase
intent
Cross-sell
opportunities

Tier 2
Web: Business Resource Center
Newsletter

Tier 3
126


Web Resource: Microsoft Business Resource
Center Overview
Personalization
cue

Personalized Experience

• Telephone customer service
•
•

•
•
•

(Tier 1 & 2 only)
Support
 Free online chat tech
support
Training
 Software training and
computer-based
I own/use
training is key
Dynamics,
Office
Community
Library (information)
Training for
Dashboard

Phone #
unique for
Tier 1 and 2

Communities
recommended,
Dynamics, Vista
I’m a volume
license
customer

Office

Articles,
tips for me.
OV, APO
127


Customized Communications
Customized communications
based on opt-in data
•Welcome e-mail
•Monthly personalized e-newsletter
•Ongoing e-mails

128


Benefits of the Reciprocity of Value
Exchange
Customer Benefits

Microsoft Benefits

•Opt-in profile information drives

•Personalized service
•Customized communication

relevance in web site content and
communications

and information

•Ability to analyze click and usage

•Ease of use
•Relevance

behavior

•Improved Marketing ROI:
•

129

Cross-sell/upsell opportunities


Results

RM

Opt-in
rates up
to 95%

Open
rates
greater
than 50%

Response
rates
performin
g in the
doubledigits

Receiving
very

positive

customer
feedback

RM
customer
volume
license
renewal
rate is

8 points

higher
than nonRM
customers

130

Volume
license
revenue
from those
in the
VoCdriven
program is

2x
greater

than the
control


Case Study
Today’s Customers Expect
Preference-based, Personalized and
Relevant Experiences

131


Introduction

•

Today’s discussion is about:

The extra dimension of proactive, relevant, and
personalized engagement customers want.
♦ Customer’s recognition that in order to receive highly
personalized experiences, they need to provide
increasingly detailed information to drive the
personalization.
♦ How Norton consumers define the Personal Data
Reciprocity of Value Equation.
♦ Trust as a prerequisite for this level of engagement,
and how customers today define the elements of
trust.
♦

132


marketing performance and customer value

Delivering Customer Centric Engagements
Two-way and
cross-channel

Integrated data,
channels and
technology
Target customer
groups and
personalise
“Spray &
Pray”

sophistication in capabilities
© 2012, No reproduction, reuse, or distribution without the explicit
written consent from Symantec

133

Source: CACI, 2012


What is the value of permission?
Over 40% of respondents said they want to be
rewarded for sharing their personal data

Source: Aimia Survey, 10/05/2011


134

134


It’s no longer “nice to have”
•
•
•
•

Customers expect that you
will obtain permission
before you use their
information.
This expectation is amplified
if they are paying for the
product or service.
We tend to think that we
have the answers and
customers naturally want to
hear what we have to say…
Are we really listening…or
just talking?


135


About Norton
•

•

Norton protects the
Stuff that matters to
consumers, across all
aspects of their
digital lives.
Norton provides a
range of security
solutions including
technologies for PCs
and mobile devices,
live tech support
services and online
backup.

•
•
•
•
•

Significant number of customer touch points
135+ million active users
#1 consumer online backup provider
$2+ Billion in annual revenue
Shipping on 60%+ of Windows-based consumer
PCs


136


How do you get customers to opt in?
You can’t ask a
customer “do you want
to receive more
emails?”
And, given that Norton
is a provider of pop-up
and spam prevention,
we can’t annoy, at any
cost.
Can you?
We need to listen to the customer to determine requirements.

137

137


Reciprocity of Value
Key Takeaway
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.

Source: “Voice of the Customer Marketing”
Ernan Roman


138


Listening powered by customer signals
Outbound
•

E-Mail

•

Desktop Messaging

•

In Product Messaging

Inbound

•

Support (calls, web,
chat)

•

eCommerce

•

Websites


139


VoC Research
•

Norton approach:
♦
♦
♦

•

Phase 1:
♦

•

2 Phases
Engage in one-on-one in-depth interviews to dive into details
Run quantitative surveys to identify and fine tune statistical significance

In-depth qualitative interviews
across segments, (80
interviews)

Phase 2:
♦

Quantitative customer surveys
(1-2K) across segments


140


Phase 1 VoC Research Summary
Methodology

Objectives
• How different customer segments define deeper
relationships

• 80 in-depth hour-long interviews across key
segments, purchase channel, and product value
(NAV vs. NIS /N360)

• Expectations and requirements to drive willingness
to Opt-In

• Gain customer-driven understanding of customer
experience that will be perceived as personal and
relevant

• Self-profile preferences based on expectations of
increasingly relevant communications and offers.
• Customer receptiveness to proactive personalized
outreaches

• Will follow with quantitative survey

Retail


141

Online


VoC Findings


142


A reinforcing cycle built on trust
•

Trust is the foundation and basis for obtaining deeper engagement with customers.

•

Trust opens customer to Reciprocity of Value: a meaningful exchange
of value.

•

For pertinent value, customers are motivated to
provide opt-in and a wide range of Preferences
for receipt and suppression of information.

•

These preferences enable Personalization
that delivers the targeted and relevant
communications customers requested.

•

The improved Customer Experience reinforces
trust which enhances trust.

•

Which will motivate them to provide additional
information, thereby engaging them in a deeper level of
Reciprocity . . . and the cycle continues.


143


Trust
•
•

Research identified four
dimensions of trust that
build upon each other.
Key areas to build trust:
♦

Alleviate privacy concerns by
explaining the reasons
behind data requests.

♦

Multiple assurances of the
privacy of their data and
Symantec’s commitment to
keeping their information
safe.

♦

Receiving only the
information they are
interested in, based on their
specified preferences.


144


Preferences
In addition to
“standard
preference”
settings,
customers had
had remarkably
specific
preferences…

© 2012, No reproduction, reuse, or distribution
without the explicit written consent from Symantec

145


An integral part of the broader journey
•
•

Learnings from the VoC
are key to shifting from
transactional
communications.
Combined with
infrastructure and
customer signals (the
triangle), we expect to
deliver on our goals:
♦
♦

Collect preferences and
permissions
Deploy truly personalized
communications.
146


146


Parting thoughts
• The three “pillars” are

integral to delivering
customer expectations
♦

Must be done together to
achieve and sustain trust.

• Must change thinking
♦

From “how does this
benefit us?” to “how does
this benefit the customer?”


147

147


4 Actions…

• Customer insights are a privilege, not a right.
• Trust is easily lost, but hard to gain, especially when
•
•

dealing with personal information and relationships.
Don’t ruin the hard fought gains for short-term
bookings.
Remember that customer delight results in customer
loyalty, advocacy, and sales.


148

148


The Art of

Listening to Your Customer
Eric V. Holtzclaw
@eholtzclaw

149

Allow customers
It would be nice to
get my newsletter
in the mail.

to control the message

I would like to
receive news on
Facebook.

I wish I could
receive offers
through email.

152

“Just Ask”

your customer

“I love getting these “Please don’t send
daily deal emails.” me text messages.”

“I would like to hear
about your other products.”

of consumers
say companies should let
them decide how they can
contact them.

153

Take advantage of different

channels for different programs.

154

Only ask for

what you need.

155

Only ask for

what you need.

156

Only ask for

what you need.

157

Centralize customer

data across the organization.

159

Allow your customer

to correct the conversation.

160

Preference Centers

Past & Future

162

Support All Customer Touchpoints

167

Take Advantage of All
Communications

168

Take Advantage of All
Communications

169

Eric V. Holtzclaw
@eholtzclaw

Questions?

171

Additional VoC Lessons
Opt-In Preference-Based
Personalization as a
Competitive Differentiator

172


Even among loyal
customers,
expectations of
marketers have
changed due to:
Tough economy
Growth of many
appealing online and
offline options:

The bar has been raised dramatically for
online and offline marketers:

•Good customer service is expected and
is a powerful competitive differentiator.

•Increased expectations for value at
competitive prices.

•Better shipping and handling terms.
•Personalized offers and experiences based
on their individual interests:

173


As a result,
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.

•

Online shoppers view personalization as a
requirement for their preferred shopping
venues, rather than as simply a perk.

•

Many BtoB decision-makers use Amazon
as their point of reference regarding
expectations for BtoB personalization.

•

BtoB and BtoC marketers have to at least
match Amazon!

174


Meaningful Personalization
• Customers want personalization to be
more than just transaction-based.

175


Safeway: Multichannel Personalization
•

•

Personalized offers and
prices based on shopper’s
behaviors, habits and profile
information.
“Though use of personal
shopping data might raise
privacy concerns, retailers
are counting on most people
accepting the trade-off,
if it means they get a
better price for a product
they want”.

Safeway employee signing up a shopper for
custom offers.

New York Times 8/9/12
176



1.
2.
3.
177


Step 2:
Opt-In
Engagement
Step 1:
VoC Research

Create Powerful
Preference-Based
Databases With
Customer’s SelfProfiled
Information

Step 2: Summary
Opt-in is not about passively agreeing to receive email.
It’s about actively opting in to a relationship and selfprofiling your preferences and aversions.
Your VoC-based opt-in database should include at least,
the following information regarding individual’s:
•Needs
•Decision making process
•Offer
•Message
•Timing
•Media Preferences.
Set as your goal: Opt-In rates ranging from 80% to 95%.

178


Step 2:
Opt-In
Engagement
Step 1:
VoC Research

Create Powerful
Preference-Based
Databases With
Information

Step 2: Summary
Five Ways to Win Consumer Confidence:
1.Consumers have to trust that the company will
adequately safeguard their information and use it in a
responsible way.
2.“Responsible” means that consumers must believe
that their information will not be rented or sold to third
parties.
3.“Honor my preferences” reflects the expectation that
their “Opt-In” self-profiled preferences will be used to
drive increasingly targeted communications and offers...
and suppress those that are not relevant.

179


Step 2: Summary
4.

Create Powerful
Preference-Based
Databases With
Information

The value consumers receive in exchange for
providing preference information must be obvious
and compelling.
Consumers must see an obvious improvement in
relevance. This expectation of relevance applies
both to their online and offline experiences.

5.

Consumers must see ongoing proof that the
company will be able to deliver on requirements
1 through 4 above, not just once, but consistently
over time.

180


Workshop Agenda
• Sunday, 10/13:
Part 3; 10:30 - 11:20
♦Step 3, How to Use the 5 Principles of Multichannel Marketing
♦Speakers:
Douglas Stein, President, HMS National
Lunch: 11:20 - 12:50
Part 4; 12:50 - 1:50
Step 4, Increasing the Relevance and ROI of Your Online and
Social Media Marketing
♦Speakers:
Bob Nanna, Marketing Manager, Threadless

181


182

Step 3: How to Use
the 5 Principles of
Multichannel Marketing
Step 2:
Opt-In
Engagement
Step 1:
VoC
Research

Step 3:
Multichannel
Marketing
183


Douglas Stein
President
HMS National
Douglas Stein is a respected industry leader with a reputation for creating
effective marketplace strategies and generating significant business growth.
Douglas
Stein
President
HMS National

As president of HMS, he is responsible for driving B2B/B2C marketing and sales
success. He has been instrumental in positioning HMS as the warranty of choice
for millions of homeowners, and as a valuable business partner to the most
well-respected real estate companies.
Doug led VOC-inspired loyalty efforts that helped earn HMS the coveted Echo
Award from the DMA in 2012.
He is a compelling public speaker and has presented on customer insights and
marketing strategies at numerous conferences.
www.hmsnational.com

184


Online and offline
are inseparable.
Must encompass:
Message
Media mix
Organization
And…the
Customer
Experience

Entire Customer Experience must be integrated:

•
•
•
•
•

Acquisition
Conversion
On-boarding
Retention
Renewal

Employee Customer Experience must be integrated:

•
•
•

Performance metrics
Compensation
Training

185


Online and offline
are inseparable.
Must encompass:
Message
Media mix

If Integration is so logical…why are so few doing it well?

•
•
•

Turf
Politics
Fear of change

How can you be the agent of change?

Organization
And…the
Customer
Experience

186


Let’s Define “Multichannel Relevance”
1. Right message.
“Per the DMA,
93% of marketers
using multiple
channels have
attempted to
integrate their
messaging.

2. Right time.
3. Right person.
4. Right media mix.
5. Delivered per individual’s preferences.

Only 27.4% of these
said their efforts
are ‘effective’. . .”
DMA Report, “Rowing
as One: Integrated
Marketing Today,” 4/11

Without #5, all we
have achieved is. . .
187

Integrated,
multichannel
irritation!

Requires precision timing and synchronization of both
online and offline.
Must be accessible everywhere and any time.

Per individual’s opt-in
preferences. . .

IDM® is a registered trademark of Ernan Roman Direct Marketing.
188


5 Principles of Multichannel Marketing

5
4
3
2
1

1: Start with the Customer (VoC).

189


Per VoC Findings
Today’s shopper is multi-dimensional;
multi-channel and multi-purpose.
Many report using multiple media, often
at the same time.

Alert!

The channel used for the purchase is often
not indicative of their shopping habits.
Most use multiple media to shop,
and often, to purchase.

190

Per a recent
VoC:

A customer described
how she likes to
watch the TV shows
while browsing the
website. As she finds
items to purchase,
she puts them in her
shopping cart, prints
it, and… calls
Customer Service to
place
the order.

“. . . Multichannel customers spend
two to three times more than
single-channel shoppers. . .
Consumers who engage with the
company across three or more
channels spend six times more
than the average customer.”
Glen Senk, CEO of Urban Outfitters

191

Per VoC;
preference based
multichannel communications
are a competitive
differentiator.
“If I got the information that
focused on the stuff
I was interested in,
it would be easier
than sorting through
all their products.
It would be so much faster,
more convenient and make
my shopping easier.”


5
4
3
2
1

2: Capture feedback from your digital / social channels and
your sales / service reps. This will provide ongoing qualitative
and quantitative VoC guidance.

192


VoC Guidance from CSRs
•

•

Based on VoC feedback
from CSR’s, Nordstrom’s
upgraded their website and
inventory integration so any
item in any store (not just
warehouses) is shown on
their website and shipped
to the customer’s nearest
store, with a notice to the
customer.

Results:
♦
♦

8% higher sales.

♦

Fewer markdowns.

♦

Better inventory control.

♦

A boost to customer
loyalty.

♦

193

Immediate customer
adoption.

More add-on store sales.


1. Enter your
search criteria
194


2. Select your
item and
method
of delivery
195


3. Select your
location for
pick-up or have
it shipped!

196



5
4
3
2
1

3: Synchronize your multichannel mix with
precision and value.
2: Create processes for generating feedback from your social
media channels and your sales and service reps. This will
provide ongoing qualitative and quantitative VoC guidance.

197


QVC, 9/23/12
198


QVC Priority: Deliver Competitively Differentiating
Multichannel Customer Experiences

199


Multichannel / Multimedia Customers
Per QVC VoC research, today’s customers are uniquely
Multichannel.
Keep in mind:

•Be accessible when and where the customer chooses.
•The multi-platform approach must be seamless, frictionless,

and agnostic, i.e., every channel must provide a good customer
experience.

•An integrated multi-platform strategy can drive an
11X increase in sales.

QVC, 9/23/12
200


Precision Integration: Response Compression
Response
Compression

Traditional

Phone
E-mail /
Mail

Response

Response

Phone

E-mail / Mail

Time: 1 – 24 Hours

Time: 1 – 2 Weeks

201


Precision Sequencing and Timing
Web and digital synchronized with beginning of Publicityand continues

Publicity

Print
advertising

1 week

Email #1/
Mail #1

1 week

Outboun
d Calls

1-24
hours
after
receipt

202

Email #2/
Mail #2

Per opt-in
preferences


Multichannel
Success Factors
Unless you obtain
opt-in message and
media preferences
and aversions. . .

Email:
• “Email may be the base of your communications with
me, but I’m getting too much junk.”
• “Make it relevant and timely!”
•

“And, if it’s really important, send it to me by mail.”

You’ll simply be
engaging in
multichannel
irritation!

203


75% of Email Names are Inactive
Per Marketing Sherpa, about 70-75% of your email list is inactive, (Email Summit).
List hygiene is not just about removing undeliverable emails,
bounces and unsubscribes.
It is also requires re-engaging inactive subscribers and the tricky
task of asking subscribers if they still want to receive your emails.
Scary…but necessary!
4 Tips:
1.Start your email relationship by inviting engagement with
a quality welcome series.
2.Test to determine the most important areas of interest.
This should drive engaging content and subject lines.
3.Segment and personalize your emails so you deliver the greatest
relevance to each individual subscriber.
4.Analyze inactive users and begin sending re-engagement emails.
5.Use catchy subject lines:
“Are You Breaking Up With Us?”
“Are we still friends?”
“Are You Mad at Us?”

204


Clever Re-engagement Email

Subject: We have to say good-bye.

This is your last change to receive email updates.
We haven’t heard from you, and as the owner of one of our
vehicles, we don’t you to miss out on the latest from Ford Motor
Company. By clicking the link below, you’ll continue to be one of
the first to receive sneak peaks at new technologies, exclusive
offers, coupons, sweepstakes and more. If you choose not to click
the link below, this will be your last email from us.

205


New Email Deliverability Rules
Gmail, Yahoo, Hotmail and AOL have implemented new
algorithms for email deliverability based on “engagement”:
• If your emails are not triggering sufficient
interaction, they are likely not to be delivered.
• New algorithm calculates deliverability using a
combination of CAN-SPAM rules plus new
“engagement” factors: open rates, clicks,
unsubscribes, and complaints.
• With these new “human behaviors” factored
into the equation of deliverability, emails you
send may be considered SPAM or not delivered,
even to subscribers who signed-up to receive
your emails.
• If enough recipients click the ‘spam’ button on
your email, the providers assume that no one
else would want that email either.
206


New Email Deliverability Rules
5 Tips:
1.Adhere to basic list management best practices, i.e., keep your list opt-in only,
honor unsubscribe requests and remove undelivered emails from your list. Use
double opt-in to improve engagement metrics.
2.Motivate new customers to engage with you. Targeted welcome emails
are effective.
3.Combine behavioral data and RFM (Recency, Frequency, Monetary) and,
per VoC, overlay opt-in preference data.
1.Use personalization and dynamic content. Leverage the enhanced preference
data to create highly personalized communications.
These should also include customer appreciation messages, “surprise and
delight” communications, birthdays, post purchase “thank-you’s”, and dropped
cart messages.
1.Reward email actions like opens, clicks, and shares. Southwest
Airlines is experiencing success tracking subscriber’s interactions and awarding
loyalty program points.
207


VoC-Based Messaging

There’s still so much more to enjoy.
You’ve helped make this past year amazing, but
it’s only the beginning. We have even more
brands, products, and special events coming up
that we’re sure you’re going to love.

208


209


Keeping Your Community Engaged

You’re just a few reviews away
from your Top Contributor badge,
so don’t stop now.

210


Multichannel
Success Factors
Unless you obtain
opt-in message and
media preferences
and aversions. . .
You’ll simply be
engaging in
multichannel
irritation!

Direct Mail:
• “Mail should be specific to my role, to what I do all
day long.”

•

Direct mail should be used as a highly personalized
and relevant communication.

•

Direct mail format should reflect value and include:
personalized letter, impact addressed envelope and
live stamp.

•

Post card mailings are the
antithesis of this and
generate low ROI.

211


Direct Mail Versus Email
Finite Universe of Prospects: 50,000
Profit per unit sold: $200

Cost per solicitation
Response rate (sales %)
Cost per sale
Total # of sales
Profit

Can you run a business with 65 sales?
212


Confusing Jargon

We have good news to share with you. As a result of a
positive loss experience in 2009-2011, enclosed you will
find a refund to your DBL premium for 2009 - 2011

213


Executive Outreach

Even though we haven’t seen you in a while, you’re far from
forgotten. We miss you – and I would like to personally take a
moment to invite you back to Banana Republic.

214


Personalized Card from Online Marketer

215


Multichannel Customer Engagement:
16 August 2013
Hello, Senior Contributor!
Congratulations on your many reviews on
TripAdvisor! Thank you for being such an
active member of our community.
It’s my pleasure to send you this TripAdvisor
tote, an exclusive for frequent reviewers like
you. It’s just the right size to fill with souvenirs
from your travels. I hope you’ll tote it with
pride.
Yours sincerely,
Steve Kaufer
Co-founder and CEO
216

•

•

In Step 4, How to Increase the
Power of Your Online and Digital
Marketing, we’ll have a detailed
discussion of the following:
♦

♦

Web

♦

Field sales: Must be trained in
disciplined Pre-Call Planning and
Relationship Selling.

Digital media, including:
• Twitter

Must be integrated with your
other contact points for
maximum responsiveness and
cost-effectiveness.

•
•

• Facebook.

217

Inbound calls: Highest value,
highest conversion medium.
Outbound calls: Proactive,
service-oriented calls to opt-in
lists increases responses 500% 700%.


5
4
3
2
1

4: Re-conceive Inbound as a high value customer interface.
By definition, Inbound callers are more qualified and
likely to spend.
3: Synchronize your multichannel mix media with

218


Inbound Calls Should Provide High Value

However, when inbound
customers call, what they
frequently encounter
are human robots!
Customers have become
conditioned to poor service.

219


High Value Inbound Calls

What does it cost you in
marketing and promotion
dollars to generate an
Inbound call?
What do your customers
experience when they
call your 800#?

220


221


Inbound as a High Value
Experience
Increased sales

Targeted
outbound call

Calls

Personalized
fulfillment
Proactive, highly
Proactive
trained reps

222

Via email, mail or fax.



5

4
3
2
1

5: Customer Lifecycle Marketing: 1) Communications must
be deployed at appropriate points in the buying cycle, and
2) Contacts should be driven by opt-in preferences.
4: Re-conceive Inbound as a high value customer interface.
By definition, Inbound callers are more 1) Qualified, and
2) Likely to spend.
3: Synchronize your multichannel mix with

223


Three Key Phases of the Customer
Lifecycle
Pre-Sale

•VoC-driven integrated multichannel
contacts.

•Must gather opt-in preferences.
Sale

•Not a “close.” Instead, it’s the

beginning of proactive, value-based
relationship development.

Growth and Retention

•Requires ongoing proactive engagement, i.e. “How can we better serve you?”
•Ongoing value-added justifies price premium
•Proactive generation of repeat sales.
224


Are You Investing Enough in Your Customers?
Marketing Investment

Marketing Segmentation
225


Case Study
How Voice of Customer Insights
Helped Change Our Culture,
the Customer Experience...and
Increased Renewals Over 50%

226

The warranty provides coverage against
mechanical failures for many major systems and
appliances, coverage that is not provided by most
homeowners’ insurance policies.
30+ year old privately
held company.

The term of the warranty is typically one year.

Market and sell home
warranties through
real estate agents.

Traditionally, Home Warranties cover many
systems and appliances, including:
• Air conditioning and heating systems
• Refrigerators
• Water heaters
• Washers/dryers
• Ovens/ranges
• Electrical systems
• And more. . .

Use direct marketing
to renew home
warranties when the
one year contract,
initiated during
purchase of the
home, is approaching
expiration.

227

3-Steps:
Goals Of the VoC
Goals Of the VoC

Significantly
Significantly
improve renewal
improve renewal
rates.
rates.
Improve the
Improve the
customer
customer
experience across
experience across
channels.
channels

Know much more about our customer’s needs. . . and
use this to drive our marketing.

Establish meaningful opt-in preference-based
relationships.
Deploy our multichannel mix customer preferences.

229

VoC Research Objectives

Step 1
Step 1
Know Much
More About
Our
Customer’s
Needs. . . And
Use This to
Drive Our
Marketing

•Stimulate greater renewal rates

Sample

•Identify what home warranty means to
customers
•Determine how customers define the value
of HMS
•Evaluate claim experiences; strengths
weaknesses

and

•Understand level of satisfaction with HMS
•Analyze perception of marketing
communications
•Determine willingness to opt-in and
self-profile preferences to drive targeted
communications

230

Customers who
renewed
Customers who did
not renew
Segments:
•Home buyers who
purchased home
warranty
•Home sellers who
purchased home
warranty
•Filed claim/Did not
file a claim

Voice of Customer Research Learnings
Regardless of
who purchased
the warranty,
(i.e. home seller
or home buyer)
engagement
is low.

The customer
experience, not
just the amount
of claims paid,
significantly
impacts renewal
behavior.

Service
enhancement
opportunities
identified:
focus on the
end-to-end
customer
experience.

Real estate
agents often
drive the
customer’s
perception of
the value of
renewing.

Customers
expect HMS to
be proactive
throughout the
claims handling
process.

231

Customers often
calculate the
value of the
warranty if
they consider
renewing.

Customers are
receptive to
self-profiling
their interests
and preferences.

Step 2
Step 2

Reciprocity of Value

Establish
Meaningful
Opt-In
PreferenceBased
Relationships

COMMUNICATI
ON
PREFERENCES
Claims, Renewal &
Billing:
Email
Text
Voice Notifications
Phone - CS Rep

232

Step 3
Step 3
Deploy Our
Multichannel
Mix Per Opt-In
Preferences

VoC-Driven Strategies
VoC learnings helped develop more effective strategies for:
•How to engage customers throughout the customer lifecycle
including during the renewal process, e.g. telemarketing, direct
marketing, auto renewal.
•Which product to offer, e.g. cross-sell or up-sell.
•What additional information to offer regarding home repair and
maintenance.
Phased implementation began in 2009,
with expanded implementation in 2012.
Ongoing improvements in 2013 through
2014.

233

Implementation Per VoC Research

234

Pre-VoC, our initial touch point with customers was informational
without being engaging.

Previous fulfillment kit:
Transactional delivery of
warranty documents

235

Pre-VoC, our initial touch point with our customers was informational
without being engaging.
Truncated first page of
warranty agreement

Terms and Conditions
made up bulk of the initial
customer touch point.

236

Post-VoC, we are leveraging this early touch point to immediately engage
each customer.

Added
personalization
New tonality
focused on engaging
the customer

237

To successfully engage customers, several elements are incorporated from
VoC learnings.
Welcome
page

238

New - Implementation Per VoC Research

Per the VOC, this call has to feel “arm around the shoulder”
and consultative.
239

New - Implementation Per VoC Research

1.

Leverage Virtual Hold Technology

2.

Closed Loop Process

3.

Customer Claims Survey

4.

VoP – Voice of Partner Research

240

Pre-VoC, our renewal solicitation touch points:
•Started 90 Days prior to expiration
•Single Channel – Direct Mail 4 Touch Points
•Very little customization due to in-house development
and fulfillment
•Dated look and feel
•Copy Heavy

242

VoC Driven Multi-touch Results
Personalized
Communication
Thank You
Alert

243


Highly
Customized
Pieces

244

Post-VoC, our renewal solicitation communication:

Short Format
Bolded Text
Benefit
Explanation

Customization:
Property Info
Claim Benefit
Coverage

245

VoC driven Multi-touch Results

Added Visual
Benefit
Component

246


Oversized
Impending
Expiration
Non-renewal
Risk

247


Confirm Receipt
Address Questions
Renew Customer

248

Post Expiration
Offer

249

Customer engagement through a relationship-oriented
outbound call
•Pre-VoC, the renewal process was
direct mail driven.

•In the VoC, customers expressed receptiveness,
for, a dialogue with HMS.

• The VoC drove development of

an interactive, multi-channel strategy.

• Cost of telemarketing is several times

higher than mail, but the incremental
sales offset the expense and optimized
profitability.
250

Post-VoC, piloted serviceoriented telemarketing with
focus on certain segments and
the results were as positive
as the VoC projected.
desire

Noteworthy results from
the calling initiative – a
20% increase – was quickly
realized, with far greater
lift in certain segments.

Results
Since implementation of VoC-driven programs,
the results are impressive:

•Achieved over a 50% increase in renewal rates.
•Additionally, enhanced product offerings justified a
20% price increase.

•HMS is now using a VoC-driven

multichannel mix and continually
improving strategies with
ongoing VoC research.
251

Multichannel Marketing Self-Check

Multichannel mix must provide customers/prospects with
choices so they can communicate via their preferred mix of media.

252



1.
2.
3.
253


Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

How to Use the
5 Principles of
Multichannel
Marketing

Step 3: Summary
Customer’s definition of relevance:

Without this, we
have achieved
“Integrated,
Multichannel
irritation”!

•Right message.
•Right time.
•Right person.
•Delivered per that individual’s media preferences.
5 Principles of Integrated Direct Marketing:
1.Start with the customer (VoC).

2.Create processes for generating feedback from your sales

and service reps. This will provide ongoing qualitative and
quantitative VoC guidance.
3.Synchronize media with laser precision.

4.Re-conceive inbound as a high-value customer interface.
5.Customer Lifecycle Marketing: Communications must be

deployed at appropriate points in the prospect/customer
lifecycle. Should be driven by opt-in preferences.
254


Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

How to Use the
5 Principles of
Multichannel
Marketing

Step 3: Summary
Four powerful opportunities for communication
during the lifecycle:
•Prospect
•Pre-sale
•Sale
•Growth and retention.

Ask yourself: Are you spending enough on
your high-value customers?

Probably not!
255


Step 4:
Increasing the Relevance and ROI of Your
Online and Social Media Marketing.

256

Step 4: Increasing the Relevance
and ROI of Your Online and Social
Media Marketing
Step 2:
Opt-In
Engagement

Step 4:
Online and
Digital
Step 1:
VoC
Research

Step 3:
Multichannel
Marketing
257

Step 4: Online & Digital

Bob Nanna
Marketing Manager
Threadless

Bob has been crazy about Threadless since he started as a temporary
warehouse worker in 2005. 8 years later, as marketing manager, Bob
channels his passion for the brand into Threadless’s social media, product
line marketing, email management, and site promotions.
Bob Nanna

Marketing
Manager,
Threadless

Bob’s previous unconventional work experience includes touring worldwide
for over 10 years as a professional musician and part-time journalist for
local Chicago publications.
When he’s not tweeting as @threadless, you can find him as @heybobnanna
or updating his upcoming events at bobnanna.com.
bobn@skinnycorp.com
www.threadless.com

258


•
•

In this
section we
will…

Provide you with 7 VoC-based
Social Media Takeaways.
Review best-in-class case studies,
including:

260


Takeaway 1
Consumers Want Empowered Relationships:

•Where marketers trust the needs and wisdom of customers to drive
engagement, communications, offers and customer experiences
across all points and channels.

•Consumers have shifted from being passive recipients of “push” marketing
creating and managing information and experiences from selected, valueadded resources.
•High quality VoC -driven engagement goes straight to the bottom line.

to

•Has been proven to achieve consistent 25% to 50% increases in response and
revenue.

•Question:

How much more can you do to engage and empower your customers and
prospects?

261


Customer Driven Experience
2009 1st Anniversary Gift

262



263


Check it out. I designed this at NIKEiD.com.
Get a total customization experience at NIKEiD.com. You
can customize colors and materials for a totally unique
take on kicks, T-shirts and more. Start customizing now at
www.nikeid.com.

264

2013 Baby Shower Gift

265

Here at Gilt, we spend a lot of time brainstorming ways to improve your shopping experiences,
and I’m very excited to announce some new changes. After listening carefully to all your
feedback, we’ve come up with a new and improved shipping-and-returns policy that I think you’re
going to love. Here’s an overview of the changes we’ve made:

266


Takeaway 2
Per VoC, you must think multichannel/multimedia:
"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."

267


QVC, 9/23/12
268


Multichannel Means More Opportunities to
Shop
Per ERDM VoC, widespread usage of mobile devices increased multichannel
shopping, which resulted in increased spending.

Constant connection and…

portability of mobile devices means
more opportunities to shop.

More opportunities means more
time spent shopping and…

more
money spent

“It’s just so much easier to shop now.
I shop on the train, while waiting at appointments, and out on the deck.
While I buy things we need, I have the time and the ability to find
things I just didn’t want to waste time trying to find before. It’s so easy now – just type
in what I’m looking for, check out who has it, and decide which one to click [to buy.]”
269


More Multichannel Shopping Translates to More
Informed Purchases

Per VoC, greater access via mobile devices translates to more informed purchase
decisions. Shopping with mobile devices enables them to comparison shop and take
the time necessary to make well-informed decisions.
These factors serve to empower the consumer.
“If I am in the store and see something I want, I will just
Google it, and I use the shopping section – Google Shopping.
And then it will come up with different prices,
and I can see where I can get it the cheapest. Usually, it’s online.
So anywhere I am where I can buy something, I usually do
compare prices, using my phone.”

“I think shopping on my
mobile allows me to make
more informed purchases and
get better deals!”
270


Takeaways for you per Adobe study and
ERDM VoC:
•

Engage customers and prospects to define their media, message and channel
preferences. Tablets and smartphones are distinct interaction channels.

•

Create experiences which are unique to each of those preferences
and channels:
♦

Smartphone usage often occurs
as part of a retail experience, so
plan messaging and in-store
promotions accordingly.

♦

Tablet-optimized web sites
should be created which are
different from traditional sites
for smartphones or desktop
computers.

These media are not used in isolation…they are a part of the
customer’s ever changing and multi-dimensional, multichannel mix!
271


Takeaway 3
Per VoC, consumers want a three-dimensional web experience:

•Websites must now provide a three-dimensional experience that engages
the customer and abandons the current one-dimensional, corporate,
“me”-oriented web experience.

•Per VoC research, the three dimensions of experience, in order of importance:
♦ Provide access to peers, for the

most trusted information.

♦ Provide access to relevant subject

matter experts.

♦ Provide easier and faster access to

the corporation.

272


Web:
“Per Forrester…only 3% of sites earned a passing score in terms of the user
experience.
3 Reasons:
1.Content and functionality…which are not…based on deep customer
research. “It’s incredibly important to understand your target users…and
how you can help them on your site.”
2.Menu names aren’t clear and people don’t know where to go.
3.Text legibility and clearly detailed privacy statements. Recommend using
10 to 12 point dark Sans Seraph font against a light background.
Per findings by Bronto Software: Poor site usability…among 100 online retail
brands results in an average 70 percent cart abandonment rate.

1 to 1 Media, 5/28/12

273


Customers and prospects are consistently
disappointed by their web experiences.
Reasons for dissatisfaction include:

•The expectation of the company “brand experience” is missing from the web
experience, thus creating an uncomfortable disconnect.

•Frustration that they cannot “connect” with the company on the website due
to the impersonal/ transactional/generic experience.

•Lack of meaningful personalization which further fuels alienation.
•Expectation that customer-oriented web experiences will allow for opt-in
profiling to indicate their preferences.

•Lack of usage of their opt-in preferences to drive targeted, relevant follow-up
email communications and offers.

274


Customers and prospects are consistently
disappointed by their web experiences (cont’d).
•
•

Easy access to content, with few clicks.

•
•
•

Make it easy to engage via mobile.

Make it easy to share content, i.e. Facebook, LinkedIn, and
Twitter.
Feature blogs and communities.
Make it a visual experience.

“Make your site a
destination I want
to return to!”

Make your
site fun!

275


Takeaway 4
Social Media Raises the Stakes for Customer Service.

American Express ® Global Customer
Service Barometer, 5/2/12
276


American Express ® Global Customer
Service Barometer, 5/2/12
277


Takeaway 5
Per IBM’s 2010
CEO Study:
“57% of companies
that have invested in
social business tools
have outperformed
their peers, citing
collaboration as
having a direct
impact on their
organizations
growth.”

VoC-Based Social Media Overview:

•Success is achieved as the result of a series of

personal conversations, and points of engagement
with consumers and prospects.

•Social media tools represent not a means for
selling but a means for creating or improving
relationships with consumers.

direct

•Selling becomes a by-product of the quality and
mutual benefit of those relationships.

279


Bad news:
Social/digital
media are not
“the answer”. . .
They will not
make it all better!

Unless we learn how to engage per customer’s
preferences and expectations. . .
The addition of social and digital media
will only result in multimedia irritation.
Granted. . . we will have
new and improved
multimedia irritation. . .

Email:
2.8 million are sent every
second and 100 trillion
emails have been sent over
the course of the year!

But the end result
will still be the same
consumer alienation.

280


•

Facebook is …“one of the most
powerful branding mechanisms in
the world, but it’s not an
advertising mechanism.”
Martin Sorrell, Chief
Executive, WPP

•

“…rather than simply providing traditional
ads…Facebook encourages companies to
engage with users by telling them stories.

•

…Home Depot, Wells Fargo and Merck
have a presence on Facebook…they are
focused on fashioning content to build
brand loyalty, rather than creating
targeted advertising.”
New York Times
5/16/12

281


Ford’s Fiesta Movement Scorecard in
2010:
•
•
•

4.5 million YouTube views.

•

1,000 people who reserved a Fiesta online
(informally, with no purchase commitment).

•

37% Fiesta brand awareness among
Generation Y members, roughly equal to
the awareness levels of the traditionally
promoted Fusion and Flex models.

3.5 million Twitter impressions.
80,000 “hand raisers” who asked to be kept up to date on the U.S. launch of
the Fiesta, 97% of whom did not own a Ford vehicle.

282


Ford Fiesta 2012: Doug the Sock Puppet
•
•
•
•

Goal: 10,000 total Facebook fans
Actual: 35,650 Facebook fans in four weeks
Goal: 2.5 million YouTube video views
Actual: 1.7 million views, or 67% of the goal
with several months to go.

More Stats:
•Facebook post views: 725,000
•Facebook “likes” and comments: 7,019
•Facebook demographics: 70% of status updates reach Ford’s target
– 24 year-old audience
•Digital display ads 25% of ad budget for 2012, (USA Today, 5/17/12).

18

“Plus, 41% of all the online conversation about the 2012 Focus is related to
Doug and the campaign. We definitely see this as a successful measure of
driving incremental conversation about Focus by using Doug” - Scott Kelly

Mashable.com
5/18/11

283


Takeaway 6
Learn from Coke’s 3 Facebook Best Practices
Coca-Cola edged out Hyundai as the most popular brand on
Facebook, according to a study by Covario.
Coke has more than 72 million Facebook fans; each comment the
beverage producer posts on its page generates over 200
comments!
What is Coke doing right on Facebook? At least three things.

285


Coke’s Best Practice #1
Coke’s default setting is “Talk To Us.” User-generated
content gets posted automatically (as opposed to being
filtered or edited first). On Coke’s page, inappropriate
messaging is removed, but only after it has been posted.
Coke’s relationship with its fans is solid enough
to make this work.

286




Coke Wants You To Upload
Images To Its Photo Album

Coke’s Driving Facebook
Principle is “Collaborate”

This makes perfect sense, given the
iconic, collectible status of the brand.
Many users want to show off branded
Coke images they have acquired (or
created), and many others want to
show off as they consume the
product! Coke supports both groups.

The page itself was founded by two
Coke fans. . . and later embraced by
the company! It is truly a shared
undertaking with Coke fans who
spend time on Facebook, not
something imposed upon them
from the outside.

287


Facebook Takeaways
Conduct a comprehensive review of your branding and social media strategies.
Develop strategies which enable you to answer “yes” to the following
questions.
Do you trust your brand enough to:

•Trust your customers?
•Give Facebook users an
open forum?

•Encourage and facilitate
collaboration with your
customers?

288


Takeaway 7
Per VoC Most Preference Centers Aren’t Useful:

•BtoB and BtoC Preference Center Insights:
♦

Misleading; focused on the company’s
sales goals, not on learning the customer’s
preferences.

♦

“They’re not focused on my preferences.
The focus is on the stuff they want
to sell
my company.”

“I’m a prospect who
inquired. They are
only asking what and
when I will buy. God
forbid they should ask
about my needs!”

“I would pay attention to a company that asks
about my needs, and only sent me relevant and
personalized information. They would stand out
from the pack.”

289


Takeaway 7
Per VoC Most Preference Centers Aren’t Useful, (cont’d):

•

Doesn’t satisfy the need for a single place which is:
♦
♦
♦
♦
♦
♦

Customer focused
Provides comprehensive choices and options
Easy to find
Easy to use
Easy to change, “so I can easily revise it as my needs change”.
Allows for Progressive Profiling.

290


COMMUNITY
• Voting
• Meetups (Family Reunions)

COMMUNITY
• Voting
• Meetups (Family Reunions)
• Participation

“So, what do you guys think of this idea?”

SOCIAL
• Twitter
• Facebook

SOCIAL
• Twitter
• Facebook
• Tumblr

SOCIAL
• Twitter
• Facebook
• Tumblr
• Instagram

ARTISTS
•$
• Info on every tee

ARTISTS
•$
• Process / Inspirations

ARTISTS
•$
• Process / Inspirations
• MADE

2005 STATS
• 180 printed designs
• $90,000 awarded to artists
• 500 submissions per week
• 100,000 members
• 0 Twitter followers, 0 Facebook likes
(wink wink)

2013 STATS
•
•
•
•
•
•

5,200 printed designs
$8,774,411 awarded to artists
2,100+ submissions per week
2,596,311 members
2,194,126 Twitter followers
759,042 Facebook likes

*BE A PART *BE AUTHENTIC
*BE SUPPORTIVE

THANKS!
Bob Nanna
bobn@threadless.com
@heybobnanna


1.
2.
3.
348


Step 4:
Online and
Social
Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

Increasing the
Relevance and
ROI of Your
Online and Social
Media Marketing

Step 4: Summary
Unless we engage per customer’s preferences, the
addition of social and digital media will only result in
multimedia irritation.
7 Digital Media Takeaways:
1.Consumers want empowered relationships where marketers

trust the needs and wisdom of customers to drive:
engagement, communications, offers, and customer
experience across all points and channels

2.Must think multichannel/multimedia and integrate online

and offline. This applies to mobile as well.
“. . . Multichannel customers spend two to three times more
than single-channel shoppers. Consumers who engage with
the company across three or more channels spend six times
more than the average customer.”

349


Step 4:
Online and
Social
Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

Increasing the
Relevance and
ROI of Your
Online and Social
Media Marketing

Step 4: Summary
3.

Consumers want a three-dimensional website
experience. In order of importance:

•Provide access to peers, for the most trusted info.
•Provide access to relevant subject matter experts.
•Provide easier and faster access to the corporation.
4.

Social Media has raised the stakes for Customer Service:

•Social Media Users are willing to spend more with

companies they believe deliver great service.
•They are far more vocal about all service experiences.

350


Step 4:
Online and
Social
Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

Increasing the
Relevance and
ROI of Your
Online and Social
Media Marketing

Step 4: Summary
5. Social media tools represent not a means for direct
selling but a means for creating or improving
relationships with consumers. Selling becomes a
by-product of the quality and mutual benefit of those
relationships.
6.

Facebook – Learn from Coke’s 3 Best Practices:

•Coke’s default setting is “Talk To Us.” User-generated
content is posted automatically (as opposed to being
filtered/edited).
•Coke wants you to upload images to its photo album.
•Coke’s driving Facebook principle is “Collaborate.”

351


Step 4:
Online and
Social
Step 1:
VoC Research

Step 2:
Opt-In
Engagement

Step 3:
Multichannel
Marketing

Increasing the
Relevance and
ROI of Your
Online and Social
Media Marketing

Step 4: Summary
7.

Most Preference Centers Aren’t Useful:
•Doesn’t satisfy the need for a single place which is:
♦ Customer focused.
♦ Provides comprehensive choices/options
♦ Easy to find
♦ Easy to use
♦ Easy to change, “so I can easily revise it as my
needs change”

352


Additional Information for You
•
•

Presentation PowerPoint

•

7 Marketing Mistakes You Need to
Avoid

•
•

Case Studies

14 Step Checklist For Breakthrough

Blog: Ernan’s Insights On Marketing
Best Practices
To receive this information, email:
ernan@erdm.com
353


354

Presenters
Kris Gates
Vice President, Customer Experience Marketing, MassMutual Retirement Services
Eric V. Holtzclaw
Vice President & General Manager, PossibleNOW, Preference Management Consulting
ehotzclaw@possiblenow.com
Douglas Stein
President, HMS National
Bob Nanna
Marketing Manager, Threadless
bobn@skinnycorp.com

355

Course Leader

Ernan Roman
President
Ernan Roman
Direct Marketing
ernan@erdm.com

356

Pre Conference: Transforming Your Customer Experience

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