new individualization · 2017. 1. 25. · individualization: how data and technology are redefining...

Individualization: How Data And Technology

Are Redefining Personalization

Brendan Witcher, Principal Analyst February 17, 2016

@BrendanWitcher

Empowered customers have given

rise to a new era.

© 2015 Forrester Research, Inc. Reproduction Prohibited 4

Empowered customers have given rise to a new era

Age of manufacturing

Mass manufacturing

makes industrial

powerhouses

successful

• Ford

• Boeing

• GE

• RCA

Age of distribution

Global connections

and transportation

systems make

distribution key

• Wal-Mart

• Toyota

• P&G

• UPS

Age of information

Connected PCs and

supply chains mean

those that control

information flow

dominate

• Amazon

• Google

• Comcast

• Capital One

Age of the customer

Empowered buyers

demand a new level of

customer obsession

• Macy’s

• Salesforce.com

• USAA

• Amazon


The past.


Today.


Organizations must focus on four market imperatives to meet the needs of customers

Transform

the customer

experience

Embrace

the mobile

mind shift

Become

a digital

disruptor

Age of the

Customer

Turn big data

into business

insights

Your business needs to dramatically

change in the age of the customer or risk

being disrupted out of business.


Welcome To The New Normal: Hyper-adoption

By 2019 there will be 3.5 billion

smartphones in the world.

Source: Global Business And Consumer Tablet Forecast Update, 2013 To 2017


Source: Forrester Research Web-influenced Retail Sales Forecast: 2015 To 2020 (US)

Image Source: (media.pathfinder.gr/cman_img_f/9549445219531437587.jpg)

of 2016 store sales will be web-influenced

In the US,

38%


$ billions

In 2016, 49% of all US retail sales will either be influenced by or occur online

› Source: Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (US)

$3.4T


Similarly, B2B buyers expect to utilize online buying to a greater degree

Base: 930 B2B buyers at organizations in Canada, US, UK, France, and Germany

Source: A commissioned study conducted by Forrester Consulting on behalf of Accenture and hybris, August 2014

52% of B2B buyers expect to make

half or more of their work

purchases online in 3 years

Each time a customer is exposed to an

improved shopping experience, their

shopping expectations are reset to a new

higher level. › Image source: Wikimedia Upload (https://upload.wikimedia.org/)


Experience is a significant factor in every online shopper’s journey

Base: 4,485 US online adults (ages 18 and over)

Source: Forrester’s North American Technographics® Customer Life Cycle Survey 2, 2015

Image Source: https://www.flickr.com/photos/83633410@N07/7658225516

68% “I am unlikely to return to a

website that does not

provide a satisfactory

customer experience.”


Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015

Business leaders are prioritizing customer experience in 2015


Personalization is a #1 digital priority

Base 32 eBusiness And Channel Strategy Professionals

Source: Forrester’s Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey


Personalization in B2B tops the list as well

Base: 526 B2B sellers at organizations in Canada, US, UK, France, and Germany *Base: 176 B2B sellers in the US

Source: A commissioned study conducted by Forrester Consulting on behalf of Accenture and hybris, November 2014

eBusiness leaders

must help

organizations prepare

for the next evolution of

personalization, which will rely more on

the pillars of

individualization, rather

than segmentation.


Agenda

› The broken state of engagement and personalization today

› Defining the four pillars of personalization 2.0

› Recommended steps for delivering the next wave of personalization


There is a significant gap between

belief and reality with personalization

Image source: Customer Communications Insights (http://customercommunications.com/)


of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.

Base: 4,549 US online adults (18+)

Source: Forrester’s North American Consumer Technographics® Brand Compass Survey, Q1 2015

Image source: (https://imagine.magento.com)

62%


Organizations today are prioritizing a capability they’re not able to fully deliver

Base: 200 advertising and marketing professionals at organizations with 500 or more employees. US, EMEA, and APAC.

Source: A commissioned study conducted by Forrester Consulting on behalf of SAP/hybris, June/July 2015

91% Of marketers are prioritizing

improving customer experience

through personalization over the

next year.

16% currently have the capability to

capture customer intent and deliver

real-time, behavior-based

marketing across all channels.


11

Base: 200 advertising and marketing professionals at organizations with 500 or more employees. US, EMEA, and APAC.


Image Source: https://www.youtube.com/watch?v=u-6hRFssmbc


Organizations too quickly check the box on delivering “personal” experiences


Other Products

Personalization today is often driven by single data point segmentation

Me

Product

Product

Segmentation


Other Products

Personalization today is often driven by single data point segmentation

Me

Product

Product

Segmentation

Personalization based

on segmentation fails to

deliver on its promise

with most of your

customers.


As a result, most companies mistakenly believe they are delivering personalization

Base: 1,200 consumers(18 and older). 200 advertising and marketing professionals at organizations with 500 or more employees. US, EMEA, and APAC.


66% rate their efforts at

personalization at

“very good” or

“excellent”

31% companies are

consistently delivering

personalized, cross-

channel experiences

40% most promotions don’t

deliver anything of

interest to them

Marketers Consumers


Agenda

› The broken state of marketing and personalization today




Q1: How successful are you when you

get personalization right?

Image source: StaticFlickr (https://c1.staticflickr.com/)


Q2: How successful would you be if you

got personalization right more often? Image source: StaticFlickr (https://c1.staticflickr.com/5/4036/4420875996_a354a88130.jpg)

Q1: How successful are you when you

get personalization right?

But before we begin . . .

Image source: (https://extrasport.be)

33 © 2016 Forrester Research, Inc. Reproduction Prohibited

You cannot truly personalize experiences for customers if you cannot recognize them

Image source: Blog Cabin (https://blog.kabinata.com)

Prerequisite: The ability to recognize your customer, regardless of device or channel

Image source: Zona IT (https://zonait.tv/)

> Customer data = > Effective personalization

Source: Zona IT (https://zonait.tv/file/2015/06/META.jpg)


The transaction with the customer must be their information in exchange for value



70% of consumers are aware that

companies use personal

information to send them

targeted offers.

Data Value


Customer data under a single database improves personalization capabilities



Image Source: https://pixabay.com/en/computer-database-network-server-156948/

# of

customer

databases

Data is useful for

creating single view

of the customer 52% 70%


An individualization strategy is defined by key technology investments that enable

four unique characteristics and differentiate it from a segmentation strategy

Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

1. Customers are identified and treated as a segment of one using rich customer profiles.

Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)


2. Customer data is assessed in real-time and dynamically calculates intent. Image source: OnPoint DMS (http://www.onpointdms.com/)


3. Personalized content is delivered equally across every screen and channel.

4. Connected back-end systems enable seamless experiences across the enterprise.

Image source: WallpapersCraft (https://wallpaperscraft.com/)


It’s easy to think about personalizing experiences in ways we’ve done before

Me


Individualization is about creating personal experiences across your ecosystem

Email

Call center

Text messages

In-store online access

Online content

Social engagements

Direct mail

Mobile web

Web search

Apps

Online checkout

Retargeting

Associate engagement

Chat

Virtual agents

Smart TV

PLPs

Homepage

PDPs

Packaging

eReceipts

Digital signage

Product reviews

Site search

Outbound calling Me

Evolution…not Revolution


Individualization is enabled by a system of unique characteristics and capabilities

Segmentation Individualization › Experiences are determined primarily by a low

number of data points that are compared to

other customers

› Engagement technologies use static/batch

processes to create rules-based models

› Engagement models rely solely on past

behavior to understand intent of the customer

› Screens, channels, or technologies are

operating in siloes due to disconnected

customer data access or lack of sharing data

between systems/vendor solutions

› Experiences are determined primarily by the

customer’s data and used to engage them as a

segment of one

› Engagement technologies capture, measure,

and assess dynamically and in real time

› Engagement is based on current behavior of the

customer in the context of his/her past behavior

› Personalized experiences are seamless across

screens, channels and - most importantly - the

digital touchpoints and technologies that exist

across the enterprise

Be careful to understand and respect personal boundaries

Source: Soul Mate of the Moment (https://soulmateofthemoment.files.wordpress.com/)


Agenda

› The broken state of marketing and personalization today




Recommendations


Recommendations 1. Identify the gaps in your company’s ability to deliver

individualization.


The North Face learns the “why” of customers shopping instead of the “what”

Image source: https://www.fluid.com/news/the-north-face-ibm-and-fluid-launch-new-interactive-shopping-experience-using-artificial-intelligence-ai



individualization.

2. Take off your eCommerce blinders and consider every

part of the customer journey.


Sephora captures in-store engagement through digital, personal experiences



individualization.



3. Design each digital touch point to both use and collect

customer data.

© 2015 Forrester Research, Inc. Reproduction Prohibited 55 Image source: http://www.engadget.com/2015/10/01/starbucks-app-uk-mobile-order-pay/

Starbucks app is not for payments, it is a customer data capturing machine

Image source: http://www.engadget.com/2015/10/01/starbucks-app-uk-mobile-order-pay/



individualization.




customer data.

4. Leverage partnerships with digital experts.


Nordstrom expedited digital transformation by partnering with Shoes of Prey



individualization.




customer data.


5. Focus on creating great customer experiences and

avoid crossing boundaries unnecessarily.

Hudson Bay captures personal information in exchange for value without being creepy

http://www.thebay.com/webapp/wcs/stores/servlet/en/thebay/content-view/true-fit#


Personalization Maturity Checklist 1. Identify the gaps in your company’s ability to deliver

individualization.




customer data.


5. Create exceptional customer experiences without

crossing personal boundaries unnecessarily.

Personalization done right doesn’t look like personalization…

Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png

Personalization done right doesn’t look like personalization…

Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png

…it just looks like a great experience.


For a deep dive into today’s discussion…

forrester.com

Thank you

Brendan Witcher

[email protected]

@BrendanWitcher

new individualization · 2017. 1. 25. · individualization: how data and technology are redefining...

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