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Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing
The document discusses the importance of customer-centric marketing strategies that respond to current retail challenges such as margin erosion and customer loyalty loss. It emphasizes the need for personalized, omni-channel approaches and real-time data insights to enhance consumer engagement and drive revenue. The presentation encourages marketers to adopt a holistic strategy to effectively acquire, convert, and nurture customers to increase lifetime value.
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Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing
- 1. Stepping Up To Consumer Expecta5ons The Impera*ve for Customer-‐Centric Marke*ng #CustomerCentricity Sponsored by
- 2. #CustomerCentricity Type ques5on here Welcome Webinar AAendees
- 3. #CustomerCentricity Follow This Webinar On TwiAer #CustomerCentricity
- 4. #CustomerCentricity About Retail TouchPoints ü Launched in 2007 ü Over 26,000 subscribers ü To provide executives with relevant, insightful content across a variety of digital medium Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP
- 5. #CustomerCentricity Panelists HowardWyner CEO Scentiments.com Daniel Druker CMO MyBuys Debbie Hauss Editor-in-Chief Retail TouchPoints
- 6. 6 WHAT TO EXPECT TODAY • Strategies based on what really works • Primary research spanning thousands of consumers • Real campaign performance data from hundreds of commerce sites • Behavioral analysis from 250 million consumer profiles
- 7. 7 WHAT MARKETERS ARE FACING IN 2013 ► Margin erosion ► Show-‐rooming ► Discoverability challenges ► Loss of customer loyalty ► Harder to gain understanding about customer ► Can’t maximize life*me value ► Lower return on marke*ng spend ► Internet shiRs power from seller to buyer ► Mobile is now pervasive ► Omni-‐channel and omni-‐ device is the norm ► Amazon -‐ friend or foe ? ► CEO expects marke*ng to be more effec*ve ► CMO = Chief Metrics Officer Forces Impacts Key insight: Customer-‐centricity is a strategic response to both forces and impacts
- 8. 8 AMAZON – FRIEND OR FOE ? ► Accounts for 25-‐35% of all ecommerce ► Most marketers think about Amazon Prime, free shipping, purchasing power… ► You should also be planning strategies around margin erosion, show-‐rooming, and discoverability ► Deligh'ng the Customer is Amazon’s stated strategy – and they are execu*ng $13.9B $14B 497 of IR Top 500 Amazon 2012 Growth 2012 Growth
- 9. 9 POLLING QUESTION ONE • Internet shiRs power to the consumer • Impact of mobile compu*ng • Show-‐rooming • CEO pressure for marke*ng spend to be more effec*ve • Omni-‐channel • Loss of customer loyalty • Strategy for dealing with Amazon Which of these forces and impacts are issues for your firm?
- 10. 10 SEGMENTS OF 1: TOTALLY PERSONALIZED CONVERSATIONS OMNI-‐CHANNEL AND OMNI-‐ DEVICE ALIGNED WITH THE BUYER LIFECYCLE LEVERAGING REAL-‐TIME, BIG DATA & NETWORKS WHAT IS CUSTOMER-‐CENTRIC MARKETING?
- 11. 11 CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING HOW DO CONSUMERS FEEL ABOUT IT? WHAT APPROACHES WORK BEST? WHAT SHOULD MARKETERS GO DO?
- 12. 12 2013 -5TH ANNUAL CONSUMER STUDY HOW DO CONSUMERS FEEL ABOUT IT? Source: the e-‐tailing group
- 13. 13 CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING HOW DO CONSUMERS FEEL ABOUT IT? WHAT APPROACHES WORK BEST? WHAT SHOULD MARKETERS GO DO?
- 14. 14 • Customer-‐centric marke*ng requires moving from marke*ng to segments to marke*ng to each consumer individually • Every part of every conversa*on must be personalized for that specific consumer, their situa*on and their buying process MAJOR INNOVATION – SEGMENT OF ONE Key insights: Marke5ng to segments is marketer-‐centric, not customer-‐centric 360° view is not sufficient – customer must also have single view of you
- 15. 15 MOBILE / OMNI-‐DEVICE IS CRITICAL • Mobile momentum is unstoppable – 55% of all email now opened on mobile – 30% of shopping traffic, 15% of purchases during Black Friday 2012 • 2/3 of mobile traffic is smart phones, but 2/3 of purchases are on tablets • Consumers are engaging with mul*ple devices – Iden*fy which devices belong to whom – Op*mize conversa*ons across devices, not just for one device at a *me Key insights: Both individual purchases and longer-‐term rela5onships now span mul5ple devices Your 2013 email strategy should be mobile-‐first
- 16. 16 PERSONALIZED, COORDINATED, OMNI-‐CHANNEL CONVERSATIONS E-‐mail Display adver5sing Online store Social media Mobile Physical store Key challenges: Internal silos, internal compe55on and systems Key requirement: Op5mize across channels, not just within a channel
- 17. 17 TRULY KNOW YOUR VISITORS • Remember everything consumers have shared with you, forever • Leverage all of this consistently across every communica*on and every channel • Know what *me of day and what devices consumers use to shop and purchase • Track how consumers compare to each other, over *me • Par*cipate in a network to automa*cally iden*fy formerly anonymous visitors • The more informa*on you have access to, the beAer your can serve your consumers Key insight: Individual organiza5ons are unlikely to see sufficient traffic on their own
- 18. 18 THINK HOLISTICALLY ACROSS THE CUSTOMER LIFECYCLE ACQUIRE CONVERT NURTURE Cost effec*vely engage those consumers most likely to become customers Ensure that the highest percentage of visitors purchase, at the maximum average order value – increasing total sales Drive repeat purchasers & re-‐engage lapsed customers to maximize life*me value Re-‐engage non-‐responsive consumers to cost-‐ effec*vely re-‐acquire new customers Key insight: $1 spent on nurturing can be worth $3 spent on acquisi5on
- 19. 19 CUSTOMER-‐CENTRIC DISPLAY ADVERTISING • Personaliza*on, segmenta*on and targe*ng drive effec*veness – Now cost effec*ve even for acquisi*on • Reach beyond email: engage consumers on the Internet at large • Align omni-‐channel and with the shopper lifecycle – Specific coordinated tac*cs for acquisi*on, conversion and nurturing Bomom Line: Up to 20X return on adver5sing spend, 400% uplio vs. standard retarge5ng
- 20. 20 CUSTOMER-‐CENTRIC E-‐MAIL • Personaliza*on vastly improves e-‐mail performance – by every measure • Key: deploy holis*cally across customer engagement and lifecycle – Scheduled (ex. seasonal promo*ons) – Triggered (ex. products of interest) – Transac*onal (ex. cart abandonment) • Drives conversion, cross-‐sell, upsell and re-‐engagement Bomom Line: Typically 10X higher revenue per email; 30% higher average order value
- 21. 21 CUSTOMER-‐CENTRIC E-‐COMMERCE SITES • Automa*cally iden*fy consumer and op*mize shopping experience just for them • Personalize content and recommenda*ons comprehensively throughout site • Maximize conversion, upsell, cross-‐sell, order value and customer sa*sfac*on Benefit: 25% higher conversion, 300% increase in order value, 77% more purchase add-‐ons
- 22. 22 SCENTIMENTS APPROACH DISPLAY ADS EMAIL PROGRAM NURTURING Engagement across they buying cycle From 6:1 to 15:1 ROAS liR New products of interest Order and shipping confirma*on Post order series Abandoned site / cart Incen*ves Referrals Customer Services Bomom Line: Seriously bemer financial results
- 23. 23 EFFECTIVENESS INCREASES OVER TIME 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Jan-‐08 Mar-‐08 May-‐08 Jul-‐08 Sep-‐08 Nov-‐08 Jan-‐09 Mar-‐09 May-‐09 Jul-‐09 Sep-‐09 Nov-‐09 Jan-‐10 Mar-‐10 May-‐10 Jul-‐10 Sep-‐10 Nov-‐10 Jan-‐11 Mar-‐11 May-‐11 Jul-‐11 Sep-‐11 Nov-‐11 Jan-‐12 Mar-‐12 May-‐12 Jul-‐12 Sep-‐12 Nov-‐12 Jan-‐13 Customer-‐Centric Marke5ng Revenue Performance Index MyBuys Data: January 2010 to December 2012.
- 24. 24 Top 20 Products Sold 15% Not in Top 20 Products 85% 85% of Products Purchased By Consumers Were Not Best Sellers CUSTOMER-‐CENTRIC MARKETING CREATES INCREMENTAL REVENUE Key insight: Helps insulate from compe5tors & Amazon’s purchasing power MyBuys Data: January 2010 to December 2012.
- 25. 25 THE MORE ENGAGED CHANNELS, THE HIGHER LIFETIME VALUE $159 $375 $760 $-‐ $100 $200 $300 $400 $500 $600 $700 $800 1 2 3 Average Consumer Spend Number of Engaged Channels Avg Consumer Spend 5X improvement MyBuys Data: January 2010 to December 2012.
- 26. 26 POLLING QUESTION TWO • Segments of one – every conversa*on is unique • Coordinated omni-‐channel conversa*ons with your customers • Iden*fy anonymous visitors using a network • Personalized product recommenda*ons on your website • Display adver*sing for retarge*ng to drive conversion • Site and/or cart abandonment email programs • Display adver*sing for acquisi*on • Comprehensive mobile strategy Which of the ideas we just discussed do you think your firm is doing really well in?
- 27. 27 CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING HOW DO CONSUMERS FEEL ABOUT IT? WHAT APPROACHES WORK BEST? WHAT SHOULD MARKETERS GO DO?
- 28. 28 FOR 2013: MAP OUT AND PRIORITIZE YOUR STRATEGY Acquisi5on Conversion Nurturing Personalized display adver5sing Personalized E-‐mail Personalizing your e-‐commerce site Addi5onal mobile, in-‐store, print, social, etc… OMNI-‐CHANNEL & OMNI-‐DEVICE CUSTOMER LIFECYCLE
- 29. 29 STRATEGY 1: CUSTOMER-‐CENTRIC DISPLAY ADS ACQUIRE CONVERT NURTURE Audience acquisi*on Consumer re-‐engagement Retarge*ng Site and cart abandonment Cross-‐sell and upsell Customer re-‐engagement New products of interest Pricing / offer changes Sales / promo*ons 1 2 3 MyBuys Data: January 2010 to December 2012.
- 30. 30 STRATEGY 2: CUSTOMER-‐CENTRIC E-‐MAIL ACQUIRE CONVERT NURTURE Top seller emails NewsleAers Personalized landing pages Abandoned site & cart email Order confirma*on Shipping confirma*on Post-‐order follow-‐up New products of interest Pricing / offer changes NewsleAers Sales / promo*ons 1 2 3 4 5 MyBuys Data: January 2010 to December 2012.
- 31. 31 STRATEGY 3: CUSTOMER-‐CENTRIC E-‐COMMERCE ACQUIRE Personalized landing pages Personalized site: • Shopping cart • Product detail pages • Category pages • Home page 1 2 3 4 5 MyBuys Data: January 2010 to December 2012. CONVERT NURTURE • Search results page • Brand pages • Order confirma*on page Personalized site: • Product detail pages • Category pages • Home page • Brand pages • Search results page
- 32. 32 FOR 2013: MAP OUT AND PRIORITIZE YOUR STRATEGY Acquisi5on Conversion Nurturing Personalized display adver5sing • Audience acquisi*on • Consumer re-‐ engagement • Retarge*ng • Site and cart abandonment • Cross-‐sell and upsell • Customer re-‐engagement • New products of interest • Pricing / offer changes • Sales / promo*ons Personalized E-‐mail • NewsleAers • Top seller emails • Personalized landing pages • Abandoned site & cart email • Order confirma*on • Shipping confirma*on • Post-‐order follow-‐up • New products of interest • Pricing / offer changes • NewsleAers • Sales / promo*ons Personalizing your e-‐commerce site • SEO, SEM, etc • Personalized landing pages • Shopping cart • Product detail pages • Category pages • Home page • Search results page • Brand pages • Order confirma*on page • Product detail pages • Category pages • Home page • Brand pages • Search results page Addi5onal mobile, in-‐store, print, social, etc… OMNI-‐CHANNEL & OMNI-‐DEVICE CUSTOMER LIFECYCLE 1 2 3 4
- 33. 33 POLLNG QUESTION THREE • Personalized display adver*sing for Acquisi*on • Personalized display adver*sing for Conversion • Personalized email for Conversion • Personalized email for Nurturing • Personalized website recommenda*ons for Conversion • Personalized website recommenda*ons for Nurturing Which of the strategies we just discussed do you think would have the biggest financial impact on your firm for 2013?
- 34. 34 Howard’s Customer-‐Centric Marke5ng Tips: 1. Keep everything personal 2. Consumers are savvy – don’t try to force feed products to your customers, sell they what they want to buy 3. Communicate in a way that makes your customers feel important 4. Nurturing is really important: con*nually provide incen*ves to drive ac*on and make your clients feel like a part of a community 5. Know where your customers are coming from, know who they are, reach them where they live
- 35. 35 CALL TO ACTION • Customer-‐centric marke*ng really works • If you aren’t doing it, you are leaving money on the table – or worse driving business to Amazon • You can begin in one area or several – just make sure you have a holis*c strategy • MyBuys would be happy to help you get started – and you can be live within weeks Bomom Line: How else can you so quickly drive up to 25% increase in revenue ?
- 36. #CustomerCentricity Type ques5on here Q&A / Submit Your Ques*ons
- 37. #CustomerCentricity Panelists HowardWyner CEO Scentiments.com Daniel Druker CMO MyBuys Debbie Hauss Editor-in-Chief Retail TouchPoints
- 38. #CustomerCentricity Thank You For AAending! Download this presenta*on at: hmp://rtou.ch/customercentricity