customer engagement in the digital era

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Slides of Gino Van Ossel's talk at Cegeka's event It's all in the Mix on Nov 5, 2013.Gino Van Ossel is Marketing Professor at the Vlerick Business School and gives an overview of the elements you may want to consider in your Customer Engagement strategy.

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Page 1: Customer Engagement in the Digital Era

© Vlerick Business School

Page 2: Customer Engagement in the Digital Era

CUSTOMER ENGAGEMENT IN HET DIGITALE TIJDPERK

PROF. GINO VAN OSSEL [email protected]

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 3

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“EVER PURCHASED ONLINE” (CORRECTED FOR OFFLINE POPULATION)

6 e-commerce in Belgium, Comeos, June 2013

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share of heart

7

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 8

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1. target

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2. engage

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3. convert

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4. bond

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CUSTOMER JOURNEY

13 source: McKinsey

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14

B2B

B2C

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 15

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TARGETING IN THE DIGITAL ERA

cross- channel

multi- channel

mono- channel

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• traditional CRM • who ? • what message ? • when ? • what medium ?

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% SEARCH?

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19

touch point share of

transactions hard goods

share of transactions soft goods

paid search 32% 19%

natural search 25% 14%

e-mail 19% 41%

social media < 1% <2%

other 23% 24%

Source: Forrester / GSI Commerce – Holiday attribution research ‘11 (Q1 – 2012)

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• traditional CRM • who ? • what message ? • when ? • what medium ?

• the new reality • customer in control • “pull” > “push” • traceability ?

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TARGETING IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

Page 22: Customer Engagement in the Digital Era

TARGETING IN THE DIGITAL ERA

multi- channel

mono- channel

cross- channel

omni- channel

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Jamie Nordstrom head of Nordstrom Direct

“If we focus on the customer, the outcome will be right”

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customer centric commerce

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TARGETING IN THE DIGITAL ERA

25

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26

B2C

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36%

55%

57%

65%

70%

70%

73%

Online beoordelingen van consumenten

raadplegen: winkels

Aanbod verkennen alvorens naar de

winkel te gaan

Online beoordelingen van consumenten

raadplegen: producten

Online opzoeken wat er te koop is in

winkels alvorens ik ga winkelen

Online prijzen van producten of diensten

vergelijken

Online prijzen van winkels vergelijken

Online extra info opzoeken over iets dat

ik in een reclamefolder gezien heb

% eerder + helemaal akkoord

bron: “Retail in Belgium,” InSites/Vlerick, 2012 (n = +170 per uitspraak) 28 |

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plus d’info sur www.carrefour.eu/tv

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• traditional CRM • who ? • what message ? • when ? • what medium ?

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TARGETING IN THE DIGITAL ERA

33

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34

B2B

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“B2B buyers have B2C expectations on e-commerce platforms”

Andy Hoar (Forrester Consulting)

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 40

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ENGAGEMENT IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

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42

B2C

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43 |

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44 |

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45 |

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46

“We are seeing about 34% of (pick-up) visits translating into additional sales in shop and that number is growing

exponentially at the moment.

It’s typically or increasingly for purchases that the customer didn’t think they would make. So it is quite

out with whatever they were going to collect.”

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path to purchase

in-store experience

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49

B2B

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“B2B customers are looking for self-service solutions”

Andy Hoar (Forrester Consulting)

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ENGAGEMENT IN THE DIGITAL ERA

51 |

pre-digital

sales rep:

knows little about a lot

ignorant customer:

knows nothing

digital

sales rep:

knows little about a lot

informed customer:

knows a lot about little

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“50% of B2B companies buy from B2C websites”

Andy Hoar (Forrester Consulting)

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. conversion in the digital era

6. bonding in the digital era

7. conclusion 55

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CONVERSION IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

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B2C

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B2B

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CONVERSION IN THE DIGITAL ERA

61 |

pre-digital

sales rep:

knows little about a lot

ingnorant customer:

knows nothing

digital

sales rep:

knows little about a lot

informed customer:

knows a lot about little

result

conversion: increasing

interactions:

less & shorter

satisfaction: decreasing (customer & staff !!)

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from selling towards helping to buy

62

from selling to helping to buy…

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. bonding in the digital era

6. conclusion

64

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BONDING IN THE DIGITAL ERA

omni- channel

cross- channel

multi- channel

mono- channel

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B2C

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BONDING IN THE DIGITAL ERA ?????

67

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TARGETING IN THE DIGITAL ERA

68

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TARGETING IN THE DIGITAL ERA

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4. bond ?

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CUSTOMER JOURNEY

71 source: McKinsey

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93% of visitors are store customers

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LOCATION BASED

medium ?

permission based

text message (SMS)

most intrusive

messaging inside an app

requires installing…

… and opening the app

online advertising

search advertising

bannering

76

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B2B

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AGENDA

1. welcome to the digital era

2. customer journey

3. targeting in the digital era

4. engagement in the digital era

5. bonding in the digital era

6. conclusion

83

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customer centric commerce

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one size doesn’t fit all

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OMNI-CHANNEL

omni- channel

cross- channel

multi- channel

mono- channel

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OMNI-CHANNEL

multi- channel

mono- channel

cross- channel

omni- channel

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share of heart

89

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CONCLUSION

90

Prof. Gino Van Ossel

Retail management

E-commerce & omni-channel

Shopper & trade marketing

Channel management

[email protected]

@ginovanossel

Page 91: Customer Engagement in the Digital Era

CUSTOMISED MANAGEMENT PROGRAMMES UNLEASH THE TRUE POTENTIAL OF YOUR PEOPLE & YOUR ORGANISATION

Customised management programmes are impactful learning solutions meeting your specific business needs. The retail & consumer goods industry is one of Vlerick Business School’s 4 strategic focus industries.

2012 facts and figures:

121 customised programmes for 84 different companies

4.529 participants in 14 countries worldwide

above 80 % satisfaction rates

Some of our Retail & Consumer Goods customers:

Want to know more? Contact Eva Pelgrims

+32 497 38 86 51 | [email protected]

“The Macintosh Academy allows my international key retail management to be ahead of the curve. Vlerick designed a programme that really broadened our retail perspective.”

Frank De Moor – Chairman, Macintosh Retail Group