Learn the 4 essential requirements. part 4 of 4 229 362

Transforming Your Customer Experience:

Learn the 4 Essential Requirements

Part 4 of 4

©2012 Ernan Roman Direct Marketing

2 Step 3: Multichannel Marketing

Solicitation Stream Attribution Example











8

Since the implementation of VOC-influenced programs, the results are impressive:

• Achieved over a 50% increase in conversion rates!

• Additionally, the strength of the program allowed us to implement price increases as large as 20%.

• HMS is now using the science and art of direct marketing to test and refine to optimize.

Results

Step 3: Multichannel Marketing

9

Not only have our customers noticed our VoC-driven changes/results, but the Direct Marketing Association has as well.

• On Tuesday, our renewal marketing will be recognized with a DMA ECHO award (Gold, Silver or Bronze).

• HMS was also short-listed for the Personal Connections ECHO Award (winners to be announced this week).

Results


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Action Items

1. Organizational inertia is hard to overcome for all companies, especially those that have been successful for many years.

2. But, to truly revolutionize your business, you must listen closely to your customers… and then architect strategy and tactics.

3. Generating results and building momentum energizes your team and allows you to accelerate the change process while also growing the scope.

Change takes work – hard work. Start now.


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Multichannel Marketing Self-CheckOptimal deployment of media should be driven by VoC learnings to ensure both relevance and effectiveness.

Key elements of the multichannel mix must be deployed according to the individual opt-in preferences of customers and prospects.

The multichannel mix must provide customers and/or prospects with choices so they can communicate with the marketer via the media mix of their choice.

Mix must meet requirements 1 through 3 above, per the timing and frequency determined by individual’s opt-in preferences.

The mix must offer a completely integrated experience. All the media must complement each other, support each other, and send coordinated messages to customers and prospects.

The media mix must be responsive. If the organization alienates or abuses a consumer, they can expect to hear about it in a very public forum.


12

Your Top 3 Takeaways?

1.

2.

3.


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Step 3: SummaryCustomer’s definition of relevance:• Right message.• Right time.• Right person.• Delivered per that individual’s media preferences.

Without this, we have achieved “Integrated, Multichannel irritation”!

5 Principles of Integrated Direct Marketing:1. Start with the customer (VoC).2. Create processes for generating feedback from your sales

and service reps. This will provide ongoing qualitative and quantitative VoC guidance.

3. Synchronize your multichannel mix with precision and value.

4. Re-conceive inbound as a high-value customer interface.5. Customer Lifecycle Marketing: Deploy communications

at key points in the lifecycle. Contacts should be driven by opt-in preferences.

How to Use the 5 Principles of Multichannel

Marketing

Step 3Multichannel

Marketing


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Step 3: SummaryFour powerful opportunities for communication during the lifecycle:• Prospect• Pre-sale• Sale• Growth and retention.

Ask yourself: Are you spending enough on your high-value customers?

Probably not!

How to Use the 5 Principles of Multichannel

Marketing

Step 3Multichannel

Marketing


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Step 4: How to Increase the Power of Your Online and

Social Media Marketing

Step 4:Online and

Social

Step 3:Multichannel

Marketing

Step 2:Opt-In

Engagement

Step 1:VoC

Research

Step 4: Online & Social

16 Step 4: Online & Social

17

• Provide you with 7 VoC-based Social Media Takeaways.

• Review best-in-class case studies, including:In this

section, we will…


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Takeaway 1Consumers want Voice of Customer-Driven Relationships: Where marketers trust the needs and wisdom of customers to drive

engagement, communications, offers and customer experience across all points and channels.

Consumers have shifted from being passive recipients of “push” marketing to creating and managing information and experiences from selected, value-added resources.

This quality of VoC-driven engagement goes straight to the bottom line. Has been proven to achieve consistent double-digit increases in response

and revenue. Question:

How much more can you do to engage and empower your customers and prospects?


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Matches your day, time, device and situation to an expertly-curated playlist

Customer Driven Experience


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Here at Gilt, we spend a lot of time brainstorming ways to improve your shopping experiences, and I’m very excited to announce some new changes. After listening carefully to all your feedback, we’ve come up with a new and improved shipping-and-returns policy that I think you’re going to love. Here’s an overview of the changes we’ve made:






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Takeaway 2

Per VoC, you must think multichannel/multimedia:

“I take pride in being a smart shopper. I might see something on TV,

or hear an ad on the radio. I’ll text some of my fellow FrugalMom$ friends to check it out. Then I’ll browse the website. If the item

interests me, I’ll put it in my cart. When I’m finished browsing, I’ll print out the cart and call customer service

to place the order and have them answer any questions”.

“…multichannel customers spend two to three times more than

single-channel shoppers. ..Consumers who engage with the

company across three or more channels spend six

times more than the average consumer.”

-- Glen Senk, CEOUrban Outfitters


26 Overview

QVC, 9/23/12

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Multichannel has to reflect the power of tablet and smartphone: Per Adobe Digital Marketing Insights study, tablet visitors to online retail sites

spent: 50% more per purchase than smartphone visitors 20% more per purchase than traditional desktop and laptop visitors


Tablet Visitors converted at similar rates as Traditional

Visitors but spent more per purchase

Adobe Digital Marketing Insights Report 1/18/12

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Multi-Channel Means More Opportunities to ShopPer ERDM VoC, greater access and usage of mobile devices has increased multi-channel shopping, which consumers reported often meant an increase in their overall spending.

more money spent

More opportunities means more time spent shopping and…

portability of mobile devices means more opportunities to shop.

Constant connection and…

“It’s just so much easier to shop now.I shop on the train, while waiting at appointments, and out on the deck.

While I buy things we need, I have the time and the ability to find things I just didn’t want to waste time trying to find before. It’s so easy now – just type

in what I’m looking for, check out who has it, and decide which one to click [to buy.]”


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Consumers report that greater access via their mobile devices translates to a more informed purchase decision. Shopping with their smartphones and/or tablets allows them to comparison shop and take the time necessary to make a well-informed and relaxed decision.

These factors serve to empower the consumer.

“If I am in the store and see something I want, I will just Google it, and I use the shopping section – Google Shopping.

And then it will come up with different prices, and I can see where I can get it the cheapest. Usually, it’s online.

So anywhere I am where I can buy something, I usually do compare prices, using my phone.”

“I think shopping on my mobile allows me to make more informed purchases and

get better deals!” “I like to research it. So if I see something that looks really good, I want to see – is it really a good price? Can I get a better price at an online retailer? Or at the store? Sometimes it’s the same price at

different retailers, so then ‘This one has free shipping,’ you know, I like to compare.”

More Multi-Channel Shopping Translates to More Informed Purchases


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Greater access due to mobile

Multi-Channel Shopping Also Means More CompetitionCustomers also reported that more time and more opportunities to shop translated to more choices and a greater ability to comparison shop. This creates more competition for marketers.

Increased competition for share of wallet

More time shoppingMore opportunities to shop

Greater array of retail choicesIncreased comparison shopping“Empowered Consumer”


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Takeaways for you per Adobe study and ERDM VoC: Engage customers and prospects to define their media, message and channel

preferences. Tablets and smartphones are distinct interaction channels. Create experiences which are unique to each of those preferences

and channels:


Smartphone usage often occurs as part of a retail experience, so plan messaging and in-store promotions accordingly.

Tablet-optimized web sites should be created which are different from traditional sites for smartphones or desktop computers.

These media are not used in isolation…they are a part of the customer’s ever changing and multidimensional, multichannel mix!

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Takeaway 3

Per VoC, consumers want a three-dimensional web experience:Websites must now provide a three-dimensional experience that engages the customer and abandons the current one-dimensional, corporate, “me”-oriented web experience.

Per VoC research, the three dimensions of experience, in order of importance: Provide access to peers, for the

most trusted information. Provide access to relevant subject

matter experts. Provide easier and faster access to

the corporation.


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Customers and prospects are consistently disappointed by their web experiences.

Reasons for dissatisfaction include: The expectation of the company “brand

experience” is missing from the web experience, thus creating an uncomfortable disconnect.

Frustration that they cannot “connect” with the company on the website due to the impersonal/ transactional/generic experience.

Lack of meaningful personalization which further fuels alienation.

Expectation that customer-oriented web experiences will allow for opt-in profiling to indicate their preferences.

Lack of usage of their opt-in preferences to drive targeted, relevant follow-up email communications and offers.

Powerful recommendations from customers:

“Make your site a destination I want

to return to!”

Make your site fun!

Easy access to content, with few clicks. Make it easy to share content, i.e. Facebook,

LinkedIn, and Twitter. Make it easy to engage via mobile. Feature blogs and communities. Make it a visual experience.


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Let’s take a look at the site voted #1 among “10 Great B-to-B Sites” in the 9/19/11 issue of B-to-B Magazine:

American Express OPEN Forumwww.openforum.com


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Easy Access

Share

Mobile


37

Blogs


38

Community


39

Making Connections


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Takeaway 4

Social Media Raises the Stakes for Customer Service.


American Express ® Global Customer Service Barometer, 5/2/12





The following service irritants areMost likely to cause Americans to SWITCH BRANDS


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United Breaks Guitars

• United Airlines damaged Dave Carroll’s Taylor guitar through mistreatment by baggage handlers.

• Dave spent over 9 months trying to get United to pay for damages.

• During his final exchange with the United customer relationship manager, he said that he was left with no choice but to create a music video. Manager responded “Good luck with that one, pal.”


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United Breaks Guitars. . . Results

• Dave’s original YouTube video received over 11,445,000 hits.

• Only then did United attempt a settlement.

• Dave’s response: “Good luck with that one, pal.”



Per IBM’s 2010 CEO Study:

“57% of companies that have invested in social business tools have outperformed their peers, citing collaboration as having a direct impact on their organizations

growth.”

Takeaway 5VoC-Based Social Media Overview:

• Success is achieved as the result of a series of personal conversations, and points of engagement with consumers and prospects.

• Social media tools represent not a means for direct selling but a means for creating or improving relationships with consumers.

• Selling becomes a by-product of the quality and mutual benefit of those relationships.

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Bad news:Social/digital media are not

“the answer”. . .

They will not make it all

better!

Unless we learn how to engage per customer’s preferences and expectations. . .

The addition of social and digital media will only result in multimedia irritation.

Granted. . . we will have new and improved multimedia irritation. . .

But the end result will still be the same consumer alienation.

Email:2.8 million are sent every second and 100 trillion

emails have been sent over the course of the year!


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Facebook is …“one of the most powerful branding mechanisms in the world, but it’s not an advertising mechanism.” Martin Sorrell, Chief Executive, WPP


“…rather than simply providing traditional ads…Facebook encourages companies to engage with users by telling them stories.

…Home Depot, Wells Fargo and Merck have a presence on Facebook…they are focused on fashioning content to build brand loyalty, rather than creating targeted advertising.”

New York Times5/16/12

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Ford’s Fiesta Movement Scorecard in 2010:• 4.5 million YouTube views.

• 3.5 million Twitter impressions.

• 80,000 “hand raisers” who asked to be kept up to date on the U.S. launch of the Fiesta, 97% of whom did not own a Ford vehicle.

• 1,000 people who reserved a Fiesta online (informally, with no purchase commitment).

• 37% Fiesta brand awareness among Generation Y members, roughly equal to the awareness levels of the traditionally promoted Fusion and Flex models.


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Ford Fiesta 2011: Doug the Sock Puppet• Goal: 10,000 total Facebook fans• Actual: 35,650 Facebook fans in four weeks• Goal: 2.5 million YouTube video views• Actual: 1.7 million views, or 67% of the goal

with several months to go.


More Stats:• Facebook post views: 725,000• Facebook “likes” and comments: 7,019• Facebook demographics: 70% of status updates reach Ford’s target

18 – 24 year-old audience• Digital display ads 25% of ad budget for 2012, (USA Today, 5/17/12).

“Plus, 41% of all the online conversation about the 2012 Focus is related to Doug and the campaign. We definitely see this as a successful measure of driving incremental conversation about Focus by using Doug” - Scott Kelly

Mashable.com5/18/11

http://www.youtube.com/watch?NR=1&v=blIQti4R_Cc

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Takeaway 6

Recently, Coca-Cola edged out Hyundai as the most popular brand on Facebook, according to a study by Covario. Coke has more than 34 million Facebook fans; each comment the beverage producer posts on its page generates over 200 comments!What is Coke doing right on Facebook? At least three things.


Learn from Coke’s 3 Facebook Best Practices


Coke’s Best Practice #1Coke’s default setting is “Talk To Us.” User-generated content gets posted automatically (as opposed to being filtered or edited first). On Coke’s page, inappropriate messaging is removed, but only after it has been posted. Coke’s relationship with its fans is solid enough to make this work.

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Coke’s Best Practice #2Coke Wants You To Upload Images To Its Photo Album

This makes perfect sense, given the iconic, collectible status of the brand. Many users want to show off branded

Coke images they have acquired (or created), and many others want to

show off as they consume the product! Coke supports both groups.

Coke’s Best Practice #3Coke’s Driving Facebook Principle is “Collaborate”

The page itself was founded by two Coke fans. . . and later embraced by

the company! It is truly a shared undertaking with Coke fans who

spend time on Facebook, not something imposed upon them

from the outside.


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Facebook Takeaways

Conduct a comprehensive review of your branding and social media strategies. Develop strategies which enable you to answer “yes” to the following questions.

Do you trust your brand enough to:

Trust your customers?

Give Facebook users an open forum?

Encourage and facilitate collaboration with your customers?


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Facebook Privacy Concerns

Marketers who disregard privacy concerns are causing damage!

Per VoC, during the past 12 months, significant increase in consumer concerns about allowing companies access to their Facebook accounts.

Three consumer concerns about marketer’s misuse of personal information:


• Personal security and irrelevant information.

• Social responsibility: “I’m afraid my friends will think I am spamming them.”

• Per CNBC Research, “59% of respondents…had little to no trust in Facebook to keep their information private.”

NY Times, 5/21/12


Facebook Raises Fears With Ad Tracking

“Facebook is working with a data company called Datalogix that can track whether people who see ads on the Facebook buy those products in stores…”

“Facebook users are automatically included in the advertising studies conducted with Datalogix, and cannot directly opt out through their Facebook account. Instead, they must go to the Datalogix site, for which Facebook has a link posted in its help centre”.

“…this practice does not provide Facebook users with sufficient control over their data or with transparency over how it is being used….We don't believe any of this online-offline data should be used without express consumer approval and an opt-in.“

- Jeff Chester, Executive DirectorCenter for Digital Democracy

Financial Times 9/24/12

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Takeaway 7


Most Preference Centers Aren’t Useful: BtoB and BtoC Preference Center Insights:

“They’re not focused on my preferences. The focus is on the stuff they want to sell my company.”

Doesn’t satisfy the need for a single place which is: Customer focused Provides comprehensive

choices/options Easy to find Easy to use Easy to change, “so I can easily revise it

as my needs change”.

“I’m a prospect who inquired. They are only asking what and when I will buy. God forbid

they should ask about my needs!

“I would pay attention to a company that asks about my

needs, and only sent me relevant and personalized information. They would stand out from the pack.”




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1. Use VoC to transform the customer experience

2. Increase acquisition and retention via conversations

3. Create highly personalized and relevant experiences

4. Provide quality customer service in the social world

The following thought

leadership case studies from Songza and Gilt will

illustrate how they…


Case Study

WHAT WE DOSongza is a lifestyle enhancer.

We improve the things you do every day.

HOW WE DO IT

Each time you use Songza, we serve you the expertly- curated soundtrack that will help you wake up, work out, commute, focus, unwind, entertain, sleep, etc. better.

WE WERE MEANT FOR MOBILE

WE WERE MEANT FOR MOBILEOn mobile, searching is inconvenient and ‘things you can do with one thumb’ are at a premium.

Songza is a start-up company in a sea of undifferentiated offeringsTwo huge, well-funded competitors

MARKETPLACE

Top 10 Music Startups of 2011

Top 10 iOS App of 2011

2012 Editors’ Choice

Selected among TIME Magazine's 50 Best Websites 2012, (9/21/12)

IN JUNE 2012, SONGZA BECAME THE:• #1 Free iPad app across all categories, not just music.• #1 Free iPhone app for music.• #2 Free iPhone app, across all categories, not just music.

Our goal is not to be your favorite music app.Our goal is to become your favorite habit because we’re the easiest way to make your everyday moments better.Voice of Customer insights have informed all key decisions and driven our major strategies.

STRATEGIES TO HELP YOUR MARKETING

1. Using VoC to transform the customer experience

2. Increasing acquisition and retention via conversations

3. Creating highly personalized and relevant experiences

4. Providing quality customer service in the social world

GOAL: To share what has worked for us in the hope you can apply some ideas to your business

Challenge• Key challenge was the lack of perceived

differentiation.

Strategy• Used VoC to determine the intersection

of radical differentiation and extreme utility.

STRATEGY 1: Using VoC to Transform the Customer Experience

VoC Learnings:

STRATEGY 1

A battle we assumed was lost (creating the best streaming service by creating the simplest streaming service) was not only still up for grabs on the web, but the fight hadn’t even started on mobile (the only platform we care about moving forward)!

As an industry, we have been assuming that people use our product in a certain way: enter name of artist/song to get similar artists/songs.

That was NOT how most people want to use it. Per VoC, people want us to “make it easy”, i.e. offer “situationally-appropriate music.” VoC research regarding our products (and our competitor’s products) helped us realize

our industry had confused cause with effect:

VoC has done many things for us over the

years. Key among them was testing (and

disproving) strongly-held but previously un-

challenged beliefs that were keeping us from

innovating.

The way people were using our products wasn’t a function of how they wanted to use them, rather it

was a function of the only way we offered them.

Huge Differentiation Opportunity

STRATEGY 2: Increasing Acquisition and Retention Via Conversations

• Social media channels like Twitter demand authority, authenticity and immediacy.

• These channels are incredibly noisy, and paid interactions to rise above the noise are viewed as less authentic.Ch

alle

nge

• Monitor conversations that orbit your expertise and weigh-in when you’ll add value. For Songza, that’s any aspect of life that can be enhanced with music..

• Actively follow a list of key topics and people on Twitter. Prioritize based on where you can add the most value.St

rate

gy

Example: When social media managers talk about their brand and music, we jump on it, which has

created opportunities with Thrillist, General Mills, American Heart Association, Chrysler and more.

STRATEGY 2

STRATEGY 2

Rachel Sterne is

NYC’s Chief Digital Officer.

Noticed that “Editor-in-Chic” of

FashionIndie tweeted about

Songza

NOTEWORTHY CONVERSATIONS

STRATEGY 1

Social Media conversations are noteworthy for several reasons: They are totally public. They are easily re-broadcast. They put faces and personalities to

names.

Someone @’s us with a

suggestion, question or problem.

We immediately answer b/c we monitor Tweets that

mention Songza 24/7.

Delivering amazing customer service is the most predictable and controllable way to grow referral traffic from Twitter.

Recommendation:Conversations happen in real-

time. A key element of good service via social

media is immediacy.

We answer in a way that shows we’re thrilled that the person uses Songza, that they’ve gotten in touch, and that we can be helpful. Whenever possible, we inject humor and quirk into the dialog to show that we’re human beings.

NOTEWORTHY CONVERSATIONS

STRATEGY 1

Social Media conversations are noteworthy for several reasons: They are totally public. They are easily re-broadcast. They put faces and personalities to

names.

Someone @’s us with a

suggestion, question or problem.

We immediately answer b/c we monitor Tweets that

mention Songza 24/7.

Often, the person’s first response is to retweet one or more of

our responses.

The second response is

often tweeting

something about

Songza. Introduces Songza to their followers.

Delivering amazing customer service is the most predictable and controllable way to grow referral traffic from Twitter.

“Songza touch #2” for their followers.

Recommendation:Conversations happen in real-

time. A key element of good service via social

media is immediacy.

STRATEGY 2

Why pay for social endorsement ads on Facebook?

Social endorsement is free with good customer service!

STRATEGY 3: Creating Highly Personalized and Relevant Experiences

• We want to know more about our customers so we can do more for them.

Chal

leng

e

• To earn and maintain customer trust, keep info private – don’t share it with anyone.

• To obtain customer data through interactions, not scraping.St

rate

gy

Poor algorithmic targeting has made the internet feel simultaneously personalized and irrelevant, which makes people less likely to see value in self-profiling.

STRATEGY 3

We leverage expert curation to provide personalization. We embrace transparency to earn trust.

Challenge: Learn more about our customers so we can do more for them

CurationPersonalization

The web started with curation, then evolved into algorithmic personalization, and is now swinging back to curation again as a result.

Strategy: Earn and maintain customer trust, keep info private

To earn and maintain our customer’s trust, we do not share their information with anyone.

It’s not a targeting option we offer advertisers.

It’s not data we sell (even anonymously).

STRATEGY 3

Strategy: Earn and maintain customer trust, keep info private

To provide meaningful value, Songza: Performs time-consuming, manual mapping of customers’ lifestyles

to playlists, providing an effortless customer experience. Then the tough part: Songza asks for incredibly intimate information

about their activities (users tell us when they sleep, entertain, hang out with their family, even when they’re between the sheets).

In return for this information, Songza delivers the most personalized and relevant lifestyle experience on the web, while respecting their privacy.

STRATEGY 3

Users engage with us because they understand the Reciprocity of Value proposition:

Users tell Songza what they do, how they do it, and when they do it, because Songza uses that personal information to make those activities and experiences better.

This forms a strong relationship with the customer where both sides are not just aware, but active participants in the customer experience.

STRATEGY 3

Strategy: Obtain data through interactions, not scraping

STRATEGY 4: Providing Quality Customer Service in the Social World

• How to make our customer service so good that it translates into a competitively differentiating social media win.Ch

alle

nge

• Establish a passionately-held corporate culture regarding Customer Service.

Stra

tegy

Customer Service should view themselves as the “front line” in your company’s marketing and branding efforts.It’s worth repeating: customer service = marketing.

Strategy: Establish passionate culture regarding Customer Service.

STRATEGY 4

We believe in rapid response; we strive for a nearly instant response on Twitter and a

24-hour turnaround via

email.

We always respond as if

we are engaging a high-value

client that is upset. We

appreciate the fact that they took the time

to voice a concern instead

of just abandoning.

We truly believe the

saying that if your customers

annoy your customer

service reps, then you have bad customer

service.

STRATEGY 4


STRATEGY 4

With customer service, you obviously can't win them all, but it’s important to play like you can.

Rescuing a tough customer service situation:

We enter in each conversation with the conviction that no matter how bad a place we are starting from, we can not only win this user back, we can upgrade them from a user to an evangelist, because we now have the opportunity to make the Songza brand come alive to them through our communications.

What might begin as an expletive-laden piece of hate-mail turns into a love fest, with us being appreciative and the user being surprised and delighted by an interaction unlike any other they’ve ever had.

This often leads to the user sharing their positive experience with their network – the best endorsement/advertising money cannot buy.


STRATEGY 4


* **


STRATEGY 4

Excellent customer service has become a driver of business development:

Influencers are critical to Songza’s success because they provide expertly-curatedsoundtracks and a built-in audience. Songza can’t afford their high fees. They work with Songza because we help them craft a customer-centric social media experience using our content. This has been so compelling that it’s been responsible for significant growth and engagement in their social media channels of choice.Excellent customer service stimulated many people to share content they created on Songza. That engagement and sharing led to the acquisition of new users for those tastemakers. That motivated them to work with Songza.

What they shared How it worked for them

The Doors Official “The Doors” Playlist 123% more daily likes (from 13,000 to 29,000)

Yelp Yelp Miami Community Playlist 7x average blog post engagement

Mitchel Musso (Disney artist)

Valentine’s Day playlist + Song Request Contest

356% increase in Facebook post engagement

The Doors’ Manager:“Songza drove our

biggest jump in new Facebook likes,

ever!”

STRATEGY 4

The core of this experience is engaging customers by asking a question we know wecan answer well.For example, we might ask what songs do you want to hear on Ke$ha’s Pre-gaming playlist or the American Heart Association’s Workout playlist? Then we deliver on their requests and serve them with great content they feel ownership in.

P.S. Recently, Ke$ha, Brandy, the American Heart Association, National Car Rental and Thrillist drove our biggest web registration day, ever!


STRATEGY 3


ResultsVoC has been instrumental in driving Songza’s growth and success.

Deep customer engagement has driven our numbers through the roof, while generating great buzz and critical acclaim. Retention has tripled since implementing our VoC findings. Monthly active users has tripled. Time on site has increased by 75% (from over 40 minutes to over 70).

VoC was game-changing: it allowed us to ask critical questions and get

insightful answers. As a result, we offer real value and transparency to our

users. They hold up their end of the bargain by telling us things they don’t tell our competitors. This allows us to

do things our competitors can’t.

ADDITIONAL TAKEAWAYS TO TRANSFORM YOUR BUSINESS

In crowded markets, just getting the basics

right doesn’t cut it.If a customer could say

‘Oh, this is like Competitor X, but

better’ it’s a very, very bad marketing idea!

This works for big (think: Apple) and small companies.

Aspire to have radical differentiation

Ensure that every customer service

response could be approved marketing copy. If a response

wouldn't be approved as acceptable

messaging from your brand, it's not

acceptable customer service either.

Surprise and delight with customer service

Inspire the user to tell people about you

because the experience was so

much better than the service experiences they are used to.

Good news: You have a very low

bar to clear. Better news: This is high ROI marketing!

Inspire evangelism

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Welington Fonseca

Head of CRM,Gilt Groupe

[email protected] www.gilt.com

Welington FonsecaHead of CRMGilt Groupe Welington oversees all member communication and retention programs including Gilt’s Noir loyalty program. He started his career at Gilt in September of 2011 and since then has spearheaded implementation of several ongoing activation, reactivation, and loyalty programs, and the optimization of Gilt’s contact management practices by delivering fewer, more relevant communications. Previously, Welington was a Vice President of Marketing at Lord & Taylor, overseeing its customer acquisition and retention programs both in-store and online, and a Director of Marketing at Toys “R”Us, where he managed all “R”Us guest programs. He obtained his BA in business from Mackenzie University in his home country Brazil, and his MBA from Ross School of Business in Michigan. He is the father of five year-old twins and currently resides in Ridgewood, New Jersey.

[email protected] www.gilt.com

http://www.gilt.com/

mailto:[email protected]

http://www.gilt.com/

Using Voice of Customer to Increase Engagement

& Drive Sales

Agenda

99

• Who We Are• How We Use VoC to Transform the Customer

Experience • Drive Traffic • Improve Conversion • Increase Loyalty

• Provide High Quality Customer Service in the Social World

• 5 Tactics to Apply

Who We Are

• Launched in 2007• Flash-sales category founder in US

and leader with over $500MM revenue

• Curate broad range of daily sales• Evolved beyond women’s fashion

to Men, Home, Kids, Travel, Food & local offerings

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• Measure VoC: Utilize various sources including purchase, browsing, waitlist, email click, as well as an advisory panel to get member feedback

• Share VoC Insights Internally: Weekly presentation by the Customer Service team to share VoC insights to senior management

• Disposition Reporting: To keep middle-management up to date

• Customer First Experience: mandatory experience for all Gilt Employees focused on connecting employees with actual VoC

How We Use VoC

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How We Use VoC

• Personalization• Merchandising• Segmentation• Policies• Loyalty • Social Engagement• Customer Service• Launch of New Businesses

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How We Use VoC - Personalization• We produce 2,500+ versions of personalized emails

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• VoC drivers include: purchase, browsing, email click, and brand preference

How We Use VoC - Personalization• Favorite brands are appended

to one’s profile and help drive e-mail personalization

104

How We Use VoC - Personalization“I don’t buy men’s goods on gilt.com because they sizing information isn’t good enough, you have only general size information, you need to have brand specific size info.”

Clothing by A.P.C is cut on the slimmer side of the sportswear spectrum, making for a

modern European fit … 105

How We Use VoC - Merchandising

• Use Facebook’s Face Off Application to empower members to curate sales

106

Which handbag do you like best? Vote for your favorite and we’ll feature it as our Facebook Fan Pick

in the Kooba sale starting Thurs. 3/22 at noon ET. Click below the play button below to vote right from

your newsfeed.


• Announce winning selection on Wall and drive to sale featuring the “Facebook Fan Pick” label

107

And the Kooba Face-Off winner is…the Maci, with 206 votes! Find the Maci in today’s Kooba sale along with other styles we love from the line:

http://gi.lt/GKofqP


KPI RESULTS

EngagementLikes & Comments

7X Higher than average post

Unique ImpressionsUnique fans who have seen the post


• Use Facebook’s Face Off Application to empower members to curate sales

108


• Crowd source ideas involving fans to create new products

Fans vote on favorite design

Fans vote on favorite

color

Winner is shown 109

We’re thrilled to announce that Rebecca Minkoff will be producing a handbag exclusively for Gilt

Members. Even better – we want you to be a part of the process. Vote on your favorite design by

liking one of the two sketches, and the sketch with the most votes will be produced. Be sure to tell

your friends to vote…

We’re exited to reveal that the winning sketch to be produced by Rebecca Minkoff exclusively for Gilt is “Luscious Hobo with Spine Studs”! Now’s your chance to select

the handbags color. Vote on one of the swatches below by liking the picture…

And the winning Rebecca Minkoff handbag combination is…”Luscious Hobo” with spine studs in soft leather metallic rose gold. Keep your eyes peeled for this creation, available only to Gilt members. Big thank you to everyone who

voted.


• Crowd source ideas involving fans to create new products

KPI RESULTS

EngagementLikes & Comments


Unique ImpressionsUnique fans who have seen the post


110

How We Use VoC - Segmentation

Brand Seekers

“I am always shopping to keep up with the

latest fashions. I own the hottest brands”

Self-Expressionists

“My style is an expression of my

personality. I am always looking for inspiration …”

111

How We Use VoC - Policies

• Online Panels, Customer Service Feedback and Research told us that Shipping Fees were biggest customer pain point

• Verified with quantitative research and testing, then reduced fees

112

How We Use VoC - Policies• Measured the impact of new shipping fee policies

on Consumer Awareness and Satisfaction:

“In general, the cost of shipping on Gilt is:”

Old Policy

New Policy

16%

52%

Much too high

Somewhat too high

Just right

Lower than you would expect

I don't know enough about the current shipping policies to answer 113

Just right

Just right

How We Use VoC – Loyalty

• Quarterly member dinners provide “multi-channel” insights and ensure that strategies and policies are on track

114

How We Use VoC – Loyalty

• Quarterly member dinners…

KPI RESULTS

Spending by Best Customers

10-15X Higher than average customer

Churn Rate 50%+ Lower than average customer

115

How We Use VoC – Social Engagement• Senior Officers engage with members

116

How We Use VoC – Social Engagement

• Senior Officers engage with members

117

How We Use VoC – New Businesses

• Gilt Taste idea originated from Gilt Employee

• Business launched within 5 months

• With that speed VoC was crucial to getting it right:

• Customer Surveys• Advisory Board• Usability 118

Bringing High Quality Customer Service Into The Social Arena

• Authenticity: Team is encouraged to be themselves

119


• Follow Up: Social feeds are tagged for follow up, even if it takes months

120

• Transparency: All postings are valid


121

• Surprise & Delight:• Per CSR Feedback,

women often volunteer that they are pregnant.

• Team is trained to actively engage with members and empowered to surprise and delight.


122

5 Tactics to Leverage VoC

123

1. Listen and Invite Feedback

2. Respond, always, and make responses personal3. Drive Awareness of VoC in organization, make it

core to the Culture

4. Start somewhere, you don’t need a lot of resources to begin listening to your Customers

5. Follow up, we are sometimes wrong and so are customers


BONUS: • Do Not Wait! to hear from your customers• Recently launched an outreach program to

proactively re-activate lapsed (best) members

“Thank you for reaching out and I look forward to working with you. What fun! "

124


KPI RESULTS

Reactivation +45% vs. control group

Incremental SalesFrom reactivated customers

+40% vs. control group

• Best Customer Outreach Call Program

125

126 Step 5: Online & Digital

127

Your Top 3 Takeaways?

1.

2.

3.

Step 5: Online & Digital

128

Step 4: Summary


How to Increase the Power of Your Online and Social Media Marketing

Step 4Online

and Social Unless we engage per customer’s preferences, the addition of social and digital media will only result in multimedia irritation.7 Digital Media Takeaways:1. Consumers want Voice of Customer-driven relationships

where marketers trust the needs and wisdom of customers to drive: engagement, communications, offers, and customer experience across all points and channels

2. Must think multichannel/multimedia and integrate online and offline media. This applies to mobile as well. “. . . Multichannel customers spend two to three times more than single-channel shoppers. Consumers who engage with the company across three or more channels spend six times more than the average customer.”

129

Step 4: Summary



Step 4Online

and SocialConsumers want a three-dimensional website experience. In order of importance:• Provide access to peers, for the most trusted info.• Provide access to relevant subject matter experts.• Provide easier and faster access to the corporation.

3.

Social Media has raised the stakes for Customer Service:• Social Media Users are willing to spend more with

companies they believe deliver great service.• They are far more vocal about all service experiences.

4.

130

Step 4: Summary



Step 4Online

and SocialSocial media represents not just a means for selling, but a means for creating or improving relationships. Selling becomes a by-product of the quality and mutual benefit of those relationships.

5.

Facebook – Learn from Coke’s 3 Best Practices:• Coke’s default setting is “Talk To Us.” User-generated

content is posted automatically (as opposed to being filtered/edited).

• Coke wants you to upload images to its photo album.• Coke’s driving Facebook principle is “Collaborate.”

6.

131

Step 4: Summary



Step 4Online

and Social

Most Preference Centers Aren’t Useful:• Doesn’t satisfy the need for a single place which is:

Customer focused. Provides comprehensive choices/options Easy to find Easy to use Easy to change, “so I can easily revise it as my

needs change”

7.

132

Drawing for 2 Autographed Books:


133

Additional Information for You

14 Step Checklist for Breakthrough Multichannel Marketing

7 Marketing Mistakes You Need to Avoid

Case Studies

PowerPoint Presentation

Weekly blog: Ernan’s Insights on Marketing Best Practices

134

Contact Information

Eric GreenbergEVP Marketing

Life Line ScreeningEgreenberg@

llsa.com

Ernan RomanPresident

Ernan Roman Direct Marketing

[email protected]

Kris Gates AVP Customer

Experience Marketing

MassMutual Retirement Services

[email protected]


135

Contact Information

Doug SteinPresident

HMS National, Inc.dstein@

hmsnational.com

Welington Fonseca

Head of CRM,Gilt Groupe

[email protected]

Joe LeaderPossibleNOW

Vice President,Strategic Business

Developmentjleader@

possiblenow.com

Steven ShapiroDirector, Global

Relationship MarketingSymantec

Steven_Shapiro@ symantec.com






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