Adapting to your Dynamic Customer Base

Adapting to Your Dynamic Customer Base

Jeremiah OwyangIndustry Analyst & Partner

Susan EtlingerIndustry Analyst

April 17, 2012

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Justin KistnerDirector of Social Products

© 2012 Altimeter Group

The Dynamic Customer Journey


The Dynamic Customer Journey


Jeremiah OwyangIndustry AnalystSocial & Customer StrategyTwitter: @jowyang

Focus: Social business: internal readiness, marketing, integration, customer advocacy

Susan EtlingerIndustry AnalystAnalytics & MeasurementTwitter: @setlinger

Focus: Listening to, deriving insight from, measuring and acting upon social data

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Justin KistnerDirector of Social ProductsWebtrendsTwitter: @justinkistner

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© 2012 Altimeter Group© 2012 Altimeter Group

Life Used to Be Simple…


Now It’s More Complex Than Ever


We Are Surrounded by Media


Dynamic Customers See the World Differently


How Can a Company Adapt When Customers are Dynamic?


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Cross Domain Data In & Out

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Media Shift

Multiple Screens

New Sources of

Data

Trends Shaping the

Dynamic Customer Journey

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Media Shift: Paid, Owned and Earned Converge to create more dynamic messaging

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Paid Owned Earned


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Dynamic customers engage with many screens

Consumers in their 20s switch media

about 27 times per nonworking hour.


New sources of data are influencing the dynamic customer journey

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Friends

Family

Co-workers

Experts

Smartphone Apps

Web

Social media

News

Brands

Media



Media ShiftMultiple Screens

New Sources of Data

Emerging Practices on the


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The Customer Hourglass looks at the entire experience19


The Dynamic Customer Journey requires an integrated approach

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Fitting it all together…

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Esurance promotes partnership with Allstate in their latest commercial

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They blogged about the commercial and partnership23


The commercial also directed people to their Facebook page, where they feature testimonials

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New Sources of Data



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Dynamic customers have a unique view26


Target Mobile Shoppers… They’re Already There27


More than 50% of adults are buying on smartphones today, more than

2/3 have the device in-store, still many aren’t

being served.


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We’re Seeing These Shoppers Grow Rapidly

Source: Comscore, Q4 2011

Week Ending Dec. 25

Free Shipping Day (Dec. 16)

Green Monday (Dec. 12)

Cyber Monday (Nov. 28)

Thanksgiving Weekend (Nov. 26-27)

Black Friday (Nov. 25)

Thanksgiving Day (Nov. 24)

0 500 1000 1500 2000 2500 3000

U.S. Online Holiday Spend: 2011 vs. 2010

2011

2010

Millions ($)

2011 2010

35274

30591

Overall Holiday Spend (Nov.1-Dec. 26)

Mil

lio

ns

($)26% YOY increase

22% YOY increase

15% YOY increase

2011 saw gains on every major

shopping day over 2010.


Tesco customers scan and purchase goods in virtual subway supermarkets

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Customers scan QR codes to purchase products for same day delivery while in the subway. More than 10K consumers visited

using their smartphones. New members rose by 76% after the first implementation and online sales increased by 130%.



New Sources of Data



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Trust in peers rises to level of experts

Source: Edelman Trust Barometer

According to the 2012 Edelman Global Trust Barometer, the credibility of “regular employees” grew 16% in 2011,

the largest growth in credibility since 2004.

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Social media is changing the trust landscape

Source: Edelman Trust Barometer

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TripAdvisor taps into online community for travel tips and advice…

Aggregating travel ratings, forum topics, pictures and suggestions from

users, TripAdvisor created enough value for their users that they spun off their own company from Expedia and

are now worth $4 billion.

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… and makes their community available through multiple channels and devices

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TripAdvisor visitors view friend reviews through Facebook Instant Personalization

TripAdvisor launched Facebook’s Instant

Personalization feature in December 2010, offering

friend ratings, reviews, and travel history.

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Levi’s uses the Like button so shoppers can share products on their Facebook wall

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Customers see an instant shopping cart based on previous friend’s “Likes” at Levis.com

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TV.comVote for my submission, check out the other stories, and play the game.

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Image by StreetFly_JZ used with Attribution as directed by Creative Commons http://www.flickr.com/photos/streetfly_jz/2760882758


Measuring for Success


Measurement Framework: Strategy42

1. Strategy• What are

your business objectives?

• What insights do you need to meet them?

2. Metrics• How will you

measure success?

• Based on insights and results, what actions should you take--or not?

3. Organization• What resources

do you require for research and analysis?

• What training is required?

• What barriers must you address/adapt to?

4. Technology• Which tool

best supports your strategy, metrics and organization?


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Companies now average an overwhelming number of corporate-owned accounts



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What’s the ROI?


“There is no single ROI for social media.”

Richard Binhammer, Dell Inc.


The Social Media Measurement Compass46


Markets•Convergence and Integration

Technologies•Passive to Predictive

Organizations•Culture Shock!•Everyone’s an Analyst

A Look Into the Future47


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Get ready to make friends and bash silos!


The Opportunity to Reach Customers is Greater Than Ever


Social ads combine paid, owned and earned to create more relevant messaging

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Smartphones enable brands to reach consumers at the point of purchase

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Targeting customers with new sources of data52

Target used both historical and real-time data to

radically improve ‘targeting,’ sending coupons and ads

before customers know they need offers.


Facebook Ad Facebook App Website

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Facebook Ad Facebook App WebsiteIframe tabs can’t see the campaign IDs in the referring link from an ad or a post. Webtrends adapted their tag to enable attribution.

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Facebook Ad Facebook App WebsiteTo track the visitor through to another property, such as a website, you need a solution that supports cross-domain tracking.

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THANK YOU

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.

Jeremiah [email protected]/blogTwitter: @jowyang

Susan [email protected]: @setlinger

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Justin [email protected]: @justinkistner

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Visit us www.Webtrends.com, email us at

[email protected] or call 877-932-8736

SOCIAL ROI IS ATTAINABLE

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their advantage.

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[email protected].

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