Up, Close & Personal – Rethinking Personalization

Dr. Volker G. HildebrandGlobal Vice PresidentSAP Hybris

2016 ARGYLE CMO FORUM

THE STORY WITH ROMY

XOLD RECIPES DON’T WORK ANYMORE

DAD ROMY, RYAN & KAY

RELEVANCE

RELIABILITY

CONVENIENCE

WHAT WE CAN LEARN FROM ROMY ABOUT CUSTOMER EXPECTATIONS

CONTEXTREAL TIME

CUSTOMERS ARE CHANGING THE RULES.

TECHNOLOGY IS

CHANGING THE GAME.

MARKETING HAS BECOMEA WEAPON OF MASS DISTRACTION

MARKETING IS BROKEN

Marketers bombard customers with irrelevant messages. Not targeted, not relevant

of online ads are ignored Source: Google Display Benchmark Tool

99.94%

Email click through rate Source: Getresponse

3.57%

All digital channel response rate Source: DMA Response Rate Report 2015

0.62%

MARKETERS

Source: Forrester Research “The Contextual Marketing Imperative”, Oct, 2015

rate their personalization efforts at “very

good” or “excellent”

companies are consistently delivering personalization, cross

channel experience

66% 31%

CUSTOMERS

GAPS IN DELIVERING PERSONALIZATION

LACKING KEY CAPABILITIES

91% Of Marketers are prioritizing customer experience through personalization1

16% only have the capability to capture customer intent and respond in real time1

80% Don’t know much about their customers2

Source 1: “The Contextual Marketing Imperative”, Forrester Oct 2015Source 2: “Marketer Stuck on Basic Data for Personalization”, eMarketer June 2015Source 3: “Mastering Adaptive Customer Engagement”, CMO Council 2014

Only 28% deliver a personalized experience across channels3

ENGAGE WITH YOUR CUSTOMERIN THE MOMENT WHEN IT MATTERS

EVOLUTION OF PERSONALIZATIONRely more on the pillars of individualization, rather than segmentation

THE PROBLEM WITH SEGMENTATION

2 OUT OF 3 TIMES PERSONALIZATION

IS WRONG

SEGMENT GROUP

WHAT THEYHAVE DONE

WHAT THEYMAY DO

WHAT THEYARE DOING NOW

REAL-TIMEINDIVIDUALIZATION PRESENTATION OF

RELEVANT CONTENTACROSS TOUCHPOINTS

[ SITES, APPS, ADS, EMAIL ]

THE CUSTOMER

EXPLICIT

IMPLICIT

1:1 MARKETING IS ABOUT INDIVIDUALIZATION

CORE CAPABILITIES IN DEVELOPING

INDIVIDUALIZED PERSONALIZATION

STRATEGY

1. Customers are identified and treated as individuals, capture rich customer information

OBJECTIVE

BENEFITS

• Move from retail- to consumer-centricity• Create central golden consumer profile across multiple

channels, incl. Foot ID• Flexible and extensible omni-channel marketing platform• Personalize merchandising online stores• Engage directly with consumers

CUSTOMERCENTRICENGAGEMENT

• Increase marketing opt-in 35% and response rates 65%• Simplified architecture, maintenance and user adoption• Single platform to manage data and analytics capabilities• Guiding sales with what activities to perform at each store

Image source: OnPoint DMS (http://www.onpointdms.com/)

2. Real-time access and evaluation of customer intent

OBJECTIVE

BENEFITS

Engage with 30M fans in real-time Consolidate dozens of data sources, from merchandise and

tickets to paid subscriptions and fantasy hockey Target fans based on their favorite teams, players and sentiment

PERSONALIZEDFAN ENGAGEMENT

• 25% increase in visitors to the site – subsequent to campaigns• 45% higher engagement with fans• Better personalization across different channels

3. Personalization is delivered consistently across channels, devices, and departments

Interest in Canon Powershot A480

Follow up with interested product content

Consistent experience across channels

Personalized remarketingemail

In Store Follow up email or Display ads

Dynamically personalized Website

Follow up remarketing email

OBJECTIVE

BENEFITS

• Establish end-to-end marketing process • Create 360 golden customer profile • Provide high-speed segmentation • Real-time data feeds for highest level of accuracy

PUTTING THECUSTOMER AT THE CENTER

• Engaging with consumers in a smart way• Better customer experience• Higher return on marketing investment (ROMI)

If personalization is done right, it doesn’t look like marketing…

…it just looks like a great experience

THANK YOU!