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Omni%Channel Marke/ng Bridging the Gap between Insight & Execu7on #Omnichannel Webinar Sponsored by

Omni-Channel Marketing – Bridging the Gap between Insight & Execution

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Page 1: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Omni%Channel+Marke/ng+Bridging'the'Gap'between''

Insight'&'Execu7on'

#Omnichannel'

Webinar'Sponsored'by'

Page 2: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

#Omnichannel'

Follow'This'Webinar'On'TwiAer'

#OMNICHANNEL

Page 3: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

#Omnichannel'

About'Retail'TouchPoints'

!  Launched in 2007

! Over 26,000 subscribers

!  To provide executives with relevant,

insightful content across a variety of

digital medium

Free subscription to our weekly newsletter: WWW.RETAILTOUCHPOINTS.COM/SIGNUP

Page 4: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

#Omnichannel'

Panelists' Debbie Hauss Editor-in-Chief, Retail TouchPoints

MODERATOR

Nikki Baird Managing Partner Retail Systems Research

Rebecca Bucnis Global Program Director, Consumer 360 Teradata

Page 5: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

OmniFChannel'Marke7ng'

Intro:'Retail'State?'What'consumers'want'&'what'retail'marke7ng'needs'1.  Single'view'of'customer'2.  Segmenta7on'3.  Revenue'AAribu7on'4.  Channel'Execu7on''Recommenda7ons'&'Technology'Framework'''

Page 6: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

In 2013 Customer expects…

7

•  “Let me connect and interact across any channel at any time and get a seamless anywhere anytime experience…”

•  “What’s in it for me? ‘Listen’ to me, then send me relevant offers, when I need them, where I need them and when I want them……”

•  “Give me compelling content that finds me, captures my attention and makes me want to comment and share…”

Page 7: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Retail is changing…

8

From:'•  Right'product'•  Right'price'•  Right'place'•  Right'7me'

To:'•  Right'interac(on*•  Right'service*•  For'that'customer’s'

objec(ve*•  At'that'point*in*(me*

Success is no longer defined by how you want to sell, but by

how customers want to buy

Page 8: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Consolidating Data

10

5%

33%

7%

13%

14%

19%

33%

33%

10%

17%

20%

20%

22%

23%

34%

61%

Supply Chain / Fulfillment

No explicit owner

Merchandising

eCommerce/Direct Channels

Store Operations

Customer Service / Call Center

IT

Marketing

Customer Data Internal Owners

2013 2012

Source: RSR Research, August 2013

Page 9: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Revealing Marketing Trends

89% of consumers said that they avoided doing Business with companies They don’t believe protect Their privacy online

Just 18% of marketers have a single view of the customer…...but it is

considered a top priority for future investment.

18%

Of marketers will implement a big data solution within the next 2 years

71%

Just 18% of marketers have a single view of the customer… but it is

considered a top priority for future investment.

18%

71%

71% of marketers will implement a big data solution within the

next 2 years

Source: Teradata Data Driven Marketing survey 2013

Page 10: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Knowing More but Doing Less

12

18%

22%

32%

15%

28%

36%

My company is proficient at targeted marketing across channels.

My company knows who our best shoppers are.

Our customer loyalty program is a foundational element of our marketing

strategy.

Marketing Sophistication: "Strongly Agree"

2013 2012

Source: RSR Research, August 2013

Page 11: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Getting Realistic

13 35%

44%

41%

38%

40%

28%

48%

52%

8%

23%

25%

28%

31%

42%

44%

48%

53%

Raise the barriers to entry for competitors

Develop better products and services through more direct customer input (i.e., crowdsourcing)

Switch our company from primarily traditional marketing tactics to primarily digital marketing

Become more focused on our company's brand promise to consumers

New marketing channels enable us to truly differentiate our brand

Turn customers into brand advocates through social media

Use digital channels to drive traffic to stores

A greater focus on customer experience, less on product

More effective targeting by capturing more detailed customer preferences

Top 3 Marketing Opportunities

2013 2012

N/A

Source: RSR Research, August 2013

Page 12: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Consumer Discovery: Stitch Actions to Purchase

Purchase on In Store or via Mobile or Via Web ….

Current Challenge Technology Requirements •  Difficult to integrate all data Determine new

segmentation criteria behavior over time and channels unknown

•  Level of effort to integrate diverse formats

•  Quickly load/store new data •  Scan multiple types of data, easily •  Prebuilt path, pattern & text analysis

Page 13: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

An Incomplete Picture

8/29/13

16

Page 14: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

An Incomplete Picture

8/29/13

17

Page 15: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Case Study: Multi-Channel Behavioral Modeling

Business Objective •  Increase conversion through direct marketing by integrated channel behaviors

Analysis • Multiple varying types of information amounting to 1000s of information pieces of consumers across multiple channels for behavioral insight to consumers

• Optimal treatments are determined so tailored messaging can be delivered to each customer

Actions • Send promotions with cross-sell and up-sell offers based on each customer’s individual behavior

Results • Multiple X Increase in Response Rate vs. Previous campaigns

“Direct marketing’s top

priority is to increase the

conversion rate of customers

browsing our website…”

“It’s like printing

money…” VP of Customer Insight

Page 16: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Product-Based

Behaviors

Personalized Pricing

& Promotions

Data Collection & Integration

Real-Time

Interactions

Geospatial Details

Customer Experience

Marketing Attribution

Social Media Interactions

Dynamic Segments enabled by Customer 360 Source Data

POS Data

Consumer Data

SyndicatedData

Demographic Data

Supply ChainCampaignsCampaigns

Segments

Acquisition

Growth

Retention

Strategic Customer Insight Seamless Customer Experience

Enterprise Data

Warehouse

IndustryLDM

Channels…

Rea

l Tim

e In

tegr

atio

n

Web

CallCenter

E-mail

Retail

Agent or Account Manager

Mobile

Channels…

Rea

l Tim

e In

tegr

atio

n

Web

CallCenter

E-mail

Retail

Agent or Account Manager

Mobile

Rea

l Tim

e In

tegr

atio

n

Web

CallCenter

E-mail

Retail

Agent or Account Manager

Mobile

Strategic Analytics

MiningModeling

Reporting ProfilingSegmenting

Value Driven Decisions

Real-Time Events Enterprise Rules

Multi-Channel Communication

Query Campaign Design

Campaign Automation

Strategic Analytics

MiningModeling

Reporting ProfilingSegmenting

Value Driven Decisions

Real-Time Events Enterprise Rules

Strategic Analytics

MiningModeling

Reporting ProfilingSegmenting

Strategic Analytics

MiningModeling

Reporting ProfilingSegmenting

Value Driven Decisions

Real-Time Events Enterprise Rules

Value Driven Decisions

Real-Time Events Enterprise RulesReal-Time Events Enterprise Rules

Multi-Channel Communication

Query Campaign Design

Campaign Automation

Multi-Channel Communication

Query Campaign Design

Campaign Automation

ResponsesResponsesResponses

Cost

Market Research

MerchandiseMerchandise

Page 17: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Still A Lot of Consolidation Ahead

22

67% 67%

58% 56% 56% 49% 48%

40% 32% 29%

36% 29% 31% 31%

12% 10%

Direct Mail Traditional media (print,

TV, radio)

Facebook or other social

network

Twitter Email Online advertising

(display, video)

Mobile advertising

Search advertising

Communication Channel Owners

Corporate Marketing eCom or Digital Mktg

Numbers will not add to 100% - Third parties & Merchandising excluded as answers Source: RSR Research, August 2013

Page 18: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Revenue Attribution: Value of each channel

•  Consumers are exposed to a variety of different marketing efforts. •  Of all touches, which are consumed and which drive behavior •  Time to conversion between the interaction and purchase •  Value of the purchase itself

Store Purchase

Email

Weekly Ads

Web

Mobile

Page 19: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Creative solutions

By 2015, a company’s digital strategy will ultimately influence at least 80% of a consumer’s discretionary spending. What can Data Driven Marketing do?

• Integrate digital and traditional information

• Understand consumer actions across multiple channels

• Engage with customers with relevant, consistent experiences, regardless of channel

• Send customers personalized offers based on behaviors

• Provide marketers with rapid insights that reveal who to contact, when, and with what offer

• Reduce the costs of point solutions

80%

Source: Teradata Data Driven Marketing survey 2013

Page 20: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

To what extent do you experience the following problems when using Return on Marketing Investment (ROMI)?

0.0% 2.0% 4.0% 6.0% 8.0%

10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

85% of Marketers surveyed report challenges with calculating ROMI

Source: Teradata Data Driven Marketing survey 2013

Page 21: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Still Lots of Gaps To Fill

26 23%

27%

30%

21%

37%

26%

28%

36%

25%

47%

42%

44%

49%

50%

51%

52%

54%

59%

60%

72%

Customer segmentation software

Content management system / Digital asset mgmt

Promotion planning solution

Digital Marketing platform

Social media analytics

Predictive analytics

Revenue attribution and campaign ROI analysis

Customer relationship management software

Retargeting / personalized offers

Customer purchase analytics

Marketing Technology Value vs. Use

Very Valuable Implemented

Source: RSR Research, August 2013

Page 22: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Dipping A Toe In The Water

27

10%

7% 7%

10%

14%

3%

7%

11% 10%

19%

2% 2%

15%

10%

20% 17%

8% 8%

0%

15%

33%

0%

17%

25%

Traditional media (print,

TV, radio)

Direct Mail Email Online advertising

(display, video)

Search advertising

Facebook or other social

network

Twitter Mobile advertising

Communication Channels "No Plans"

Winners Average Laggards

Source: RSR Research, August 2013

Page 23: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Example: Driving Personalizing In-Store

Customer’s

stated objective:

“More our ‘little black books’ to a more stable and shareable environment…”

Business Objective •  Department store retailer decided to enable store associates

with powerful information – a journey that started in 2005 Analysis

•  Incorporate each associates knowledge of customers into a central system

Actions

•  Incorporate associates knowledge of customers into a joint a viewable customer look up

•  Driving tailored products and services based on micro-segmentation

Results

•  As a high-end specialty retailer, Omni-Channel helps ensure our store associates are fully engaged with each customer throughout the selling process, including the ability for mobile payments and seamless store transfers if items are out of stock…” SVP & CTO

Page 24: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

29 8/29/13 Teradata Confidential

preference

social mobile

website

response

purchase

affinity Conversion path

Customer behavior

attribution

spend

process

Segmentation

decision offer

governance

compliance

delivery

How to do this? Strategic Framework Enables Insight, Automation & Execution

Page 25: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

Example: Loyalty Journey to Omni-Channel

Business Objective •  Increase customer satisfaction, share offer creation and direct personalized, optimized offer sets of marketing communication to customers

Analysis • Detailed individual analysis, conducted by both retailer and vendors, together build out over million of offer combinations each week

Actions • Customers enabled to pick and choose channels of preference including instore kiosk, web, loyalty card, print

Results • Millions of rewards delivered to customers • Achieving multi million dollar increase in sales

“The …[loyalty reward

award-winning] program acts almost like a personal shopper, recommending

products & providing special offers tailored to each

cardholder.” -- Consumer recommendation”

30

Customer Recommendation

Purchase Probability

213098576 76.2%

234978957 33.1%

211293847 31.7%

213295876 27.2%

232576382 16.9%

Page 26: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

A Race to See Which Platform Wins

31 11%

17%

18%

19%

20%

21%

22%

23%

24%

29%

11%

16%

11%

10%

20%

13%

18%

15%

13%

9%

Customer purchase analytics

Content management system / Digital asset mgmt

Promotion planning solution

Social media analytics

Retargeting / personalized offers

Predictive analytics

Customer segmentation software

Revenue attribution and campaign ROI analysis

Customer relationship management software

Digital Marketing platform

Marketing Technology Plans

Budgeted Project Planned, Not Yet Budgeted

Source: RSR Research, August 2013

Page 27: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

OmniFChannel'Marke7ng'

Intro:'Retail'State?'What'consumers'want'&'what'retail'marke7ng'needs'1.  Single'view'of'customer'2.  Segmenta7on'3.  Revenue'AAribu7on'4.  Channel'Execu7on''Recommenda7ons'&'Technology'''

Page 28: Omni-Channel Marketing – Bridging the Gap between Insight & Execution

#Omnichannel'

Thanks'For'AAending!'

You'can'download'this'slide'deck'and'view'the'replay'of'this'webinar'at:''hAp://rtou.ch/omnichannelmkt'