2. #SAPFB
On24
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3. #SAPFB
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#SAPFB
@RTouchPoints
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4. #SAPFB
About
Retail
TouchPoints
ü Launched in 2007
ü Over 30,000 subscribers
ü To provide executives with
relevant, insightful content
across a variety of digital
medium
5. #SAPFB
Panelists
Debbie
Hauss
Editor-‐
In-‐
Chief
Retail
TouchPoints
MODERATOR
Ravi
Adusumilli
Head
of
Enterprise
Partnerships
Facebook
Nikki
Baird
Managing
Partner
Retail
Systems
Research
Markus
Semar
Industry
Solu1on
Trading,
Retail
Division
SAP
7. Contents
• Retailers recognize that digital is an important source of growth
• But they are horrible at taking advantage of the opportunities that
digital channels present them for engaging consumers
• The issue is two-fold:
• They don’t fully understand digital’s influence over the consumer journey
• They don’t have strong measures in place – because they don’t have the
right technology to support a digital strategy
7
8. Retailers’ Top 3 Growth Strategies For 2015:
8
#1: Digital presence
to augment our
stores
#2: More
physical stores
in existing
geographies
#3: Generate more
sales in existing
markets
9. Too Bad They’re No Good At Reaching
Customers:
1/3 Agree: My company knows who
our best shoppers are
<1/4 Agree: My company is
proficient at targeted marketing
9
11. 11
Retailers believe
anywhere from 50-80%
of sales are influenced
by digital.
But survey respondents report that
only ~25% of overall marketing
results can be attributed to digital
marketing.
12. Retailer Priorities for Digital:
12
Turn customers
into advocates
Leverage new
sources of data
(social) to meet
customer needs
More effective
targeting based
on customer
insights
Drive in-store
traffic
More effective
targeting based on
customer behavior
Drive sales through
engagement
13. 13
35% of Retail Winners say they are not
spending enough digital marketing time
on engaging with customers or acquiring
new ones.
14. Lack Of Measures Is A Barrier
14
Top 3 Digital Challenges:
#1: Measuring the effectiveness of
different marketing tactics
#2: Knowing which tactics work best in
which channels
#3: Understanding how different
segments engage with us
16. Summing It Up
• Retailers recognize that digital is an important
source of growth
• But they are horrible at taking advantage of the
opportunities that digital channels present them
for engaging consumers
• The issue is two-fold:
• They don’t fully understand digital’s influence over
the consumer journe
16
• Retailers recognize that digital is an important source of growth
• But they need to get more targeted in how they engage with consumers
• They need digital initiatives that:
• Help them understand how digital influences the customer path to purchase
• Help them identify the right measures to use when defining engagement
success
26. SAP AND
FACEBOOK
Use data to connect with
your customers and find
more people like them.
FIND LOVE
AND GROW
…
27. THE CHALLENGE OF FINDING
RIGHT AUDIENCE
Marketers have struggled to find the
perfect audience for their brands.
Prospect Response rates by channel:
Source: DMA http://www.dmnews.com/dma-direct-mail-response-rates-beat-digital/article/245780/
Phone
8.21%
Mail
1.28%
Email
0.03%
Display ad
0.04%
28. Today with the available
data and analytics, it is
possible to find the best
customers
29. KEY IS HAVING ENRICHED DATA
AND ANALYTICS
• Develop an enriched view
• Identify your best
customers.
• Narrow your best customers
with predictive analytics
• Find look a-likes to your
best customers
• Deliver personalized ads
that will drive conversions
30. • Identify your best customers
• Enhance with social data
• Leverage predictive analytics to further define
your ideal customer profile
• Further enhance the profile with additional
attributes from FB
• And find Look alikes
SAP X FACEBOOK:
FIND
31. • Create targeted ad campaigns
• Execute the campaign in Facebook
• Facebook executes the campaign to
look alike customers
• Customer clicks through the ad to
commerce site
SAP X FACEBOOK:
LOVE
32. • Optimize the budget spend
• Set limits on the budgets for each
ad campaign
• Monitor in real-time and make
adjustments as needed
• Maximize your reach
SAP X FACEBOOK:
GROW
33. SAP X FACEBOOK: PERSONALIZED 1.1 MARKETING AT SCALE
1.
2.
4.
5.
6.
3.
Create Custom
Audience including FB
Lookalikes audience
Build Target Segment
Harvest Data &
Merge interactionsImpact Analysis
Allocate budget and
schedule campaign for
advertising objective
CONSUMER
INTERACTIONS
Predictive Analytics
36. Before Now
Massive reach once meant mass
message
AudienceYour
ad
Achieve massive reach while delivering relevant
messages
Current
customers
Website
visitors
High LTV
customers
Latent
customers
Marketing has changed
37. Mobile is the primary screen and used
throughout the day
Source: Millward Brown AdReaction, March 2014, global data.
0
50
100
150
200
Smartphone
TV
Laptop
Tablet
Minutes spent per day
35%
30%
25%
20%
15%
10%
5%
0%
6am
–
9am
9am
–
12pm
12pm
–
3pm
3pm
–
6pm
6pm
–
9pm
9pm
–
12am
Screen use during the day
12am
–
6am
38. Mobile apps are taking center stage in the
shift to mobile: US
Source: “Apps Solidify Leadership Six Years into the Mobile Revolution” Flurry Blog. April 2014
Total minutes spent on mobile apps vs. mobile web
86%
of time on
mobile is
spent in apps
Mar ‘11 Jan ‘12
0
20
40
60
80
100
120
140
160
Apps
Mobile web
Minutesspentpermonth(billions)
Mar ‘14Mar ‘13Aug ‘12
39. Where they are
most engaged
Source: US Mobile Total Monthly Minutes, comScore, Dec 2014.
40. Facebook in Global
Every day Every month
64%
people daily people daily
on mobile
people monthly people monthly
on mobile
890M
745M
1.39B
1.19B
Source: Facebook Internal Data based on stated and inferred data, average for Dec 2014.
of monthly active users return daily
41. Mobile is disrupting EVERYTHING
of Facebook’s revenue
comes from mobile
69%
Source: Facebook Q4 2014 earnings data, December 2014
43. This shift has has allowed us to come full circle
Personalized
Scale
Use data to connect with
your customers and find
more people like them.
44. Data + targeting powers personalization at scale
Email
subscriber
In college
Direct mail
subscriber
Lives in San
Francisco
Visited your
mobile app
Has an
iPhone 5
45. Overview of Facebook Targeting
Core
Audiences
Lookalike
Audiences
Custom
Audiences
Sophisticated targeting with
unsurpassed accuracy
Reach the people you
already know
Find more people like your
best customers
46. Matched targets
CRM data
Your data
Direct or through third-party
Intent data
Facebook
People you know
on Facebook
Custom Audiences
How it works
47. Data is hashed for privacy
Advertiser’s Browser
Facebook Servers
Target Audience Upload Hashed Data
Hashed Data
Facebook Ad Account
Custom Audience
DELETED
All matched and unmatched
hashes are deleted after the
process completes1,234,567 Matches
Matched users are added to
Custom Audience
48. Lookalike Audiences
Find people who look like your customers and prospects
and people who look like them
Fans of
your Page
Website
visitors
Mobile app
users
People you
know
49. Use Custom Audiences across objectives
Cross-sell and upsell
Build brand
Drive intent
Acquire customers
Awareness
Consideration
Conversion
Loyalty
51. KEY BENEFITS
1. Extend reach and accuracy to target consumers
by correlating information from transactional
systems with data from Facebook
2. Ability to make dynamic changes to Facebook
ad campaigns based on real time information
3. Provide predictive capabilities to better target
consumers
4. Better assess the cost and returns from a
campaign, post and pre-launch
52. Thank You
Markus Semar,
Solution Management
Social Media Offerings @ SAP
markus.semar@sap.com
Dr. Michael Rey,
Product Management
Digital Marketing
michael.rey@sap.com
Ravi Adusumilli
Enterprise Partnerships
ravia@fb.com
53. #SAPFB
Q&A
//
Panelists
Debbie
Hauss
Editor-‐
In-‐
Chief
Retail
TouchPoints
MODERATOR
Ravi
Adusumilli
Head
of
Enterprise
Partnerships
Facebook
Nikki
Baird
Managing
Partner
Retail
Systems
Research
Markus
Semar
Industry
Solu1on
Trading,
Retail
Division
SAP
54. Thank
You
For
Joining
Us!
View
this
presenta1on
on-‐demand
at:
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