Forrester Webinar - Individualization Versus Personalization

Empowered customers have given rise to a new era

Age of manufacturing Mass manufacturing makes industrial powerhouses successful

•  Ford •  Boeing •  GE •  RCA

Age of distribution Global connections and transportation systems make distribution key

•  Wal-Mart •  Toyota •  P&G •  UPS

Age of information Connected PCs and supply chains mean those that control information flow dominate •  Amazon •  Google •  Comcast •  Capital One

Age of the customer Empowered buyers demand a new level of customer obsession

•  Macy’s •  Salesforce.com •  USAA •  Amazon

Customers Are empowered ›  Before, organizations

owned the experience and the commerce tech.

›  But tech in customers hands has given them more choice and more control.

›  Customers now demand experiences along their journey that work them.

Delivering On All Five Market Imperatives Is The Key To Success In The Age Of The Customer

Drive business growth with privacy

Turn big data into business insights

Embrace the mobile mind shift

Accelerate your digital business

Transform the customer experience

Age of the

customer

Each time a customer is exposed to an improved shopping experience, their

shopping expectations are reset to a new higher level.

Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015

Experience Is A Significant Factor In Every Shopper’s Journey

68% “I am unlikely to return to a

website that does not provide a satisfactory customer experience.”

Experience is a significant factor in every online shopper’s journey

7%* of consumers agree

with statement “Email offers are usually well timed with my needs.”

Experience is a significant factor in every online shopper’s journey

7%* of consumers agree

with statement “Email offers are usually well timed with my needs.”

* In 2015, it was 9%!

Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 ‘15

Source: Forrester's Q2 ‘16 Global eBusiness And Channel Strategy Professional Online Survey

77% of consumers have chosen,

recommended, or paid more for a brand that provides a personalized

service or experience.

89% of eBusiness and channel strategy

professionals plan to invest in personalizing the customer experience in 2016/2017.

Personalization is being prioritized due to its impact on customer experience

Personalization is a Top eBusiness priority

Base 196 eBusiness And Channel Strategy Professionals Source: Forrester’s Q3 2015 Global eBusiness And Channel Strategy Professional Online Survey

“Of the tech you will be investing in during 2016, please identify your top priorities?”

1.  Responsive Web Design 2.  Personalization Technology 3.  Customer Relationship Management Tools 4.  Mobile App and Engagement Platform 5.  Product Recommendations 6.  eCommerce Platform 7.  Site, Payment, System Security Compliance/Protection 8.  Big Data 9.  Site Search 10.  Customer Insights and Analytics Tools

55% 49% 44%

32% 28%

Content on the website

Promotions/product offers

Product recommendations

Reminders and alerts

Content on the mobile app experience

Screen layout

What parts of the experience are you personalizing? (click all that apply)

Investments in online personalization now go beyond product recommendations

0% 20% 40% 60% 80%

Making the store easy to browse for customers

Ensuring that we always have competitive prices

Providing self service technologies for shoppers

Improving the knowledge of associates

Making it convenient to purchase (short checkout lines, curbside pickup, buy online and pick up in store)

Ensuring that we always have the products customers want

Making it easy for customers to find the products they are looking for

Making the store more engaging

Personalizing the customer experience

For your organization / company, what are the main opportunities for improving the customer experience at your company's stores? (Please choose your top 5 only.)

Source: Base: 61 eBusiness and Channel Strategy professionals Source: Forrester's Q2 2016 Global eBusiness And Channel Strategy Professional Online Survey

In an omnichannel world, in-store personalization also ranks top of the list

Leading luxury retailers are recognizing the gap that segmentation creates for

personalizing customer experiences

Other Products

Product

Product Segmentation

Personalization has historically been driven by segmentation

Other Products

Personalization has historically been driven by segmentation

Product

Product Segmentation

Personalization based on segmentation

provides the “wrong” experience for most of

your customers.

Relationship

E XPLOR E

ENGAGE DIS C OVER

Single data points are often used to personalize the entire customer journey

XSingle data point

Relationship

E XPLOR E

ENGAGE DIS C OVER

Single data points are often used to personalize the entire customer journey

XSingle data point Just because you know

one thing about the customer doesn’t mean

you know everything about the customer.

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

It is a waste of everyone’s time to personalize

experiences that provide no real value to a

customer’s journey.

Retailers must be careful to understand and respect personal boundaries

Golden Rule: be overt about collecting personal

data, but covert about communicating what you know about the customer.

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

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

Q2: How Successful Would You Be If You Got Personalization Right More Often?

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

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

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

Email & mobile phone # (for

SMS) are both simple ways to

consistently identify

customers

Retailers must utilize digital across the entire customer journey using two systems

Capture & Understand Communicate & Automate

A solid individualization strategy is built upon key technology investments that have

four unique characteristics.

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

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

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

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

What should I be doing today?

Not a revolution . . . but rather an evolution

. . . it is a business strategy that drives tactics and affects every part of an organization.

Individualization is not a tactic . . .

Security and risk

Enterprise architecture

eCommerce

Application design

Merchandise planning

Marketing

Customer insights

Customer experience Individualization:

engaging customers as a segment of one in real

time by listening, capturing, measuring,

assessing, and addressing intent across

every enterprise touchpoint.

What are the first steps for building an individualization strategy?

›  Consolidate customer data from both internal databases and external partners into a single customer data repository.

Strategic opportunities for improved personalization

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

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

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

›  Be overt in collecting data (explain why), covert in delivering personalization (provide great experiences without explaining).

Individualization done right doesn’t look like personalization…

…it just looks like a great experience.

Individualization Use Cases & Results

Doug Berg CEO, MyAlerts

Sites Doing Individualized Alerts

Marketing Needs To Change

Let Consumer Design / Own Their Marketing

Types Of Individualization

Availability FavoritesWishListAlerts SaleAlerts NewProducts

ReviewAlerts RegistryAlerts PrivateOffers ReminderAlerts DemandInsights

Captures Passive Intent For Future

•  Minimal Same Day Visitor/Buyer Drop

•  Captures All Future Intent For Each Product

Recaptures Past Interest & Reduces Erosion

•  6,400+ Customers Signed Up

•  4,164 Returned To Site

•  Pull’s Forward Past Interest

•  Reduces Margin Erosion

Visibility & Interaction With Intent Graph

921K Active Customers $113M In Future Potential

Turn Frustration Into Future Sales

As High As 40% Of Customers Will Opt-In To Hear About

Future Product Availability

•  3,600+ Average Users Per Day •  $216K Average Future Rev Per Day

Delights Customers & Recaptures Interest

As High As 50% Return To Purchase

More Strategic Merchandising & Planning

Product Pre Release Alerts

Captured thousands of customers ahead of the

product launch

Gain Demand Visibility

Chat Bots For In Store Capture

Text “Alert” To 855-

ALERTS5

What product do you want alerts for?

The DJI Phantom Drone Accessory Kit

Is this it? Polar Pro Filters DJI Phantom 4 Accessory

Kit for $37.99

I see it’s out of stock, would you like a SMS or

Email alert when it’s back?

OK We’re On It! We’ll Text you when it’s available

Let Customers Tune In To What They Want

Deliver Relevancy They Want (Me-Mail)

Learn What Your Customers Want

Captures & Drives Future Intent

Making Every Customer A Segment Of 1

Customer Designed Alerts

Turns Navigation Into An Opt

In Menu

Delivering Nearly 100% Relevancy

Drives Social Media Levels Of Engagement

Multiple Visits Per

Easy User Controls At Interest Levels

Get Away From This

To Product, Category, And Brand Level

Wish List > Watch List

Adds Alerting Capabilities To Any Wish List

Every Product Added To List Becomes Alert

Wish List > Watch List

Before Alerting After Alerting

•  Nearly 10X Higher Engagement Rate •  40% Return To Site Monthly

Reminder Alerts

Allow Customers To Set Reminders

Move From Historical To Future Focused

Capture Future Revenue

Automated Monitoring & Messaging Engine

Capture Intent On Every Visit

How Individualization Compares

Individualization Benefits

forrester.com

Thank you

Brendan Witcher bwitcher@forrester.com +1 617.613.6315

Doug Berg doug@myalerts.com +1 952.200.4233

Forrester Webinar - Individualization Versus Personalization

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