Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing

Stepping Up To Consumer Expecta5ons

The Impera*ve for Customer-‐Centric Marke*ng

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Panelists

Howard Wyner CEO

Scentiments.com

Daniel Druker CMO

MyBuys

Debbie Hauss Editor-in-Chief

Retail TouchPoints

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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

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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

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

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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?

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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?

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CURRENT STATE OF CUSTOMER-‐CENTRIC MARKETING

HOW DO CONSUMERS FEEL ABOUT IT?

WHAT APPROACHES WORK BEST?

WHAT SHOULD MARKETERS GO DO?

12

2013 - 5TH ANNUAL CONSUMER STUDY


Source: the e-‐tailing group

13





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•  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

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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

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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

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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

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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

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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

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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

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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

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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

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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-‐0

8

Sep-‐08

Nov-‐08

Jan-‐09

Mar-‐09

May-‐09

Jul-‐0

9

Sep-‐09

Nov-‐09

Jan-‐10

Mar-‐10

May-‐10

Jul-‐1

0

Sep-‐10

Nov-‐10

Jan-‐11

Mar-‐11

May-‐11

Jul-‐1

1

Sep-‐11

Nov-‐11

Jan-‐12

Mar-‐12

May-‐12

Jul-‐1

2

Sep-‐12

Nov-‐12

Jan-‐13

Customer-‐Centric Marke5ng Revenue Performance Index

MyBuys Data: January 2010 to December 2012.

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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


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THE MORE ENGAGED CHANNELS, THE HIGHER LIFETIME VALUE

$159

$375

$760

$-‐

$100

$200

$300

$400

$500

$600

$700

$800

1 2 3

Average Co

nsum

er Spe

nd

Number of Engaged Channels

Avg Consumer Spend 5X improvement


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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?

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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-‐C

HANNEL & OMNI-‐D

EVICE

CUSTOMER LIFECYCLE

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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


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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


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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


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

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-‐C

HANNEL & OMNI-‐D

EVICE

CUSTOMER LIFECYCLE

1

2 3

4

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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?

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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

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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 ?

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Panelists

Howard Wyner CEO

Scentiments.com

Daniel Druker CMO

MyBuys

Debbie Hauss Editor-in-Chief

Retail TouchPoints

#CustomerCentricity

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Stepping Up To Consumer Expectations: The Imperative For Customer-Centric Marketing