unlock the promise of customer data for effective personlization

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Unlock the Promise of Customer Data

for Effective Personalization

Featuring Guest Forrester Research Analyst, Emily Collins

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Today’s Speakers

Emily CollinsResearch Analyst Serving Customer Insights Professionals

Forrester

Reggie WidemanSenior Director of StrategyJanrain

© 2014 Forrester Research, Inc. Reproduction Prohibited 3

Agenda

›Empowered customers disrupt traditional marketing.

›Marketers struggle to keep up.

›Personalization requires connected customer insights.

›Recommendations.


Age of the customer

A 20-year business cycle in which the most successful enterprises

will reinvent themselves to systematically understand and

serve increasingly powerful customers

In the age of the customer, individuals are always-addressable…

Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report

And they create data at every interaction point

But they reject traditional,

campaign-based marketing…

Marketing as we know it is experiencing a shift.

Source: April 2014 “The Power Of Customer Context” Forrester report


Agenda




›Recommendations.


Janrain commissioned Forrester Consulting to evaluate the current state of personalization

Media and leisure

Agriculture, food, and beverage

Advertising or marketing

Travel and hospitality

Electronics

Telecommunications

Healthcare

Consumer product manufacturing

Other

Retail

Financial services or insurance

Business or consumer services

1%

2%

2%

3%

5%

6%

8%

9%

9%

17%

17%

22%

Which of the following best describes your industry?

16%

27%

24%

33%

In which country are you based?

France GermanyUnited Kingdom United States


We use machine-learning and artificial intelligence algo-rithms to personalize interactions across digital channels

We use real-time, self-learning analytics to drive personaliza-tion and targeting across digital channels

We use collaborative filtering techniques to personalize products, offers, and content on our digital properties

We use personalization and targeting based on simple business rules and triggers to execute campaigns across

digital channels

We use personalization and targeting based on broad seg-mentation and simple clustering techniques to execute

campaigns in individual digital channels

68%

78%

78%

83%

85%

22%

16%

17%

15%

12%

10%

6%

4%

2%

3%

“Please rate your level of agreement about your current use of targeting and personalization.”

Agree/strongly agree Neutral Disagree/strongly disagree

Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014

Many firms have basic personalization capabilities

Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition


A/B and multivariate testing tools

Next-best offer technology

Real-time interaction management

Mobile analytics

Digital asset management

Recommendation engines

Cross-channel campaign management solutions

Data management platforms (DMPs)

eCommerce platforms

Dynamic content messaging tools

Customer decision management systems

Site optimization tools

Unified login/single sign-on infrastructure

Web content management systems

Customer profile data management

42%

38%

61%

47%

49%

53%

54%

56%

59%

60%

61%

62%

63%

67%

73%

29%

42%

22%

38%

39%

33%

34%

35%

32%

31%

30%

30%

27%

27%

22%

Use today Will use in 6 months


And, they are bullish on adopting personalization technologies


“What are your firm’s current or near-term plans for the following types of technologies to execute personalization and targeting?”


Yet, marketers struggle to evolve

› Conventional marketers continue to value traditional digital channels rather than emerging channels.

› The always-addressable consumer confounds traditional channel-based approaches to personalization.

› Infrastructure and organizational challenges impede marketers’ journey towards transformation.


Storage

Collection

Distribution

Analysis

30%

43%

42%

44%

28%

26%

26%

27%

42%

30%

32%

28%

Very challenging/challenging Neutral Mildly challenging/not challenging


Data management challenges abound


“Please rank the level of complexity involved in the following customer data management activities.”



Marketers leverage disparate and inconsistent data sources


Other

Contextual customer data

Media data

Syndicated research data

Panel data

Customer affinity data

Transactional/POS data

Social media data

Customer preference data

Demographic data

Customer interaction data

Voice of customer data

Campaign response data

Customer behavior data

1%

22%

22%

23%

25%

32%

34%

35%

38%

40%

40%

42%

43%

49%

Which of the following data sources do you use to plan and execute your digital marketing programs?


Source: “It’s Time To Raise The Bar With Analytics,” Forrester Research, Inc., August 1, 2013.

They have an inflated sense of analytics maturity


Agenda




›Recommendations.



Enrich profiles and customer understanding with implicit data

Other


Media data


Panel data



Social media data


Demographic data





1%

22%

22%

23%

25%

32%

34%

35%

38%

40%

40%

42%

43%

49%

“Which of the following data sources do you use to plan and execute your digital marketing programs?”

Start, but don’t stop, with the data customers

provide based on past interactions




Make personalization more personal

Other


Media data


Panel data



Social media data


Demographic data





1%

22%

22%

23%

25%

32%

34%

35%

38%

40%

40%

42%

43%

49%

“Which of the following data sources do you use to plan and execute your digital marketing programs?”


Separate the “I

do” data from the “I am” data.


Mind the gap between cool and creepy

Consumers don't trust companies to keep their data safe


Agenda




›Recommendations.


Recommendations

1.Be honest about, and advance, your analytics maturity.

2.Prioritize customer identification.

3.Don’t be so territorial about your data.

4.Make the data work for you.

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Personalized Marketing: Who’s Doing it Right

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Universal Music segments emails using location and interests

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Samsung creates highly-targeted email campaigns

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Austin City Limits lets you manage interests and preferences from your profile page

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…and displays interests and preferences in common with your Facebook friends

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New Zealand Herald increases ad sales by targeting using customer profile data

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Smart Furniture delivers personalized recommendations

Alexandra Larralde

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NPR One Customizes the Listening Experience

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1. Customer data needs to be centralized.

2. Don’t be creepy.

3. Give to get.

4. Personalization isn’t a checkbox. It’s a strategy.

5. Don’t overlook the simple things.

Best Practices for Personalization

unlock the promise of customer data for effective personlization

Technology

digital customer identity

effective personalization

traditional marketing

connected customer insights

marketing travel

individual digital channels

digital properties

campaignbased marketing