using data to design personalized customer experiences cx
TRANSCRIPT
© 2015 Merkle. All Rights Reserved. Confidential1
Using Data to Design Personalized Customer Experiences
NEDMA Conference, Bentley UniversityMay 27, 2015
#WholeBrainMktg@AileenCahill
@Merkle
© 2015 Merkle. All Rights Reserved. Confidential2
Whole-Brain Marketing Requires Both!
Art Science
Big DataBranding
Ad TechnologyMarketing Technology
aka. “Big Blender”
© 2015 Merkle. All Rights Reserved. Confidential3 3
“Blending Science with
Whole-Brain Marketing – Using Data To…
…. Create Personalized, Memorable & Valuable Customer Experiences
ART
© 2015 Merkle. All Rights Reserved. Confidential4 © 2014 Merkle. All Rights Reserved. Confidential
© 2015 Merkle. All Rights Reserved. Confidential5 © 2014 Merkle. All Rights Reserved. Confidential
© 2015 Merkle. All Rights Reserved. Confidential6 © 2014 Merkle. All Rights Reserved. Confidential
It’s about “share of mind” not “share of voice”
© 2015 Merkle. All Rights Reserved. Confidential7
The audience is not brought to you or given to you; it's something that you fight for. You can forget that, especially if you've had some success. Getting an audience is HARD. Sustaining an audience is HARD. It demands a consistency of thought, of purpose, and of action over a long period of time.
-- Bruce Springsteen
© 2015 Merkle. All Rights Reserved. Confidential8
Today, Audiences are EARNED!
Build your Audiences and They’ll Become your Customers
Nurture & Engage Them withRelevant, Value-Added Content & ToolsYou’ll Create Loyalty, Increase LifeTime Value
Marketing MUST Move Beyond Selling & Transactions!
© 2015 Merkle. All Rights Reserved. Confidential9 © 2014 Merkle. All Rights Reserved. Confidential
© 2015 Merkle. All Rights Reserved. Confidential10 © 2014 Merkle. All Rights Reserved. Confidential
Name & Address
Person ID
Phone #
Email Address
Cookie & Device ID
AAS 1.0 AAS 2.0 AAS 3.0 AAS 4.0 AAS 5.0
The Evolution of Personally Addressable Marketing
© 2015 Merkle. All Rights Reserved. Confidential11
Now Expanding Addressability Across “Platforms”
SocialMedia Platforms
Open Web(DMP)
Ecommerce & Publisher Networks
AddressableTV
Future Expansion OptionsActively BuildingToday
© 2015 Merkle. All Rights Reserved. Confidential12 © 2014 Merkle. All Rights Reserved. Confidential
AAS
© 2015 Merkle. All Rights Reserved. Confidential13 © 2014 Merkle. All Rights Reserved. Confidential13
It’s what you dowith AAS that’s important!
© 2015 Merkle. All Rights Reserved. Confidential14 © 2014 Merkle. All Rights Reserved. Confidential14
We MakeAddressable Consumer Experiences
© 2015 Merkle. All Rights Reserved. Confidential15
Traditional marketing activity, with minimal focus on digital and innovative activities
Digital marketing activity, with key focus on new technology capabilities
Planning by vehicle in isolation, by quarter, by message
Planning interactive experiences across vehicles, across a customer’s unique journey
Push marketing activity, mainly offlineInefficient agency and business process
Pull marketing activity, primarily digitalUpdated agency, business & planning model
Singular focus on last touch attribution to pipeline and revenue
Modern metrics leveraging fractional attribution
So…how do we deliver the right message to the right person about the right solution in the right place at the right time?
Consumer-Centric Marketing
© 2015 Merkle. All Rights Reserved. Confidential16
The Consumer Must Be at The Center -- Where & How Can We Add Value, Help Them Meet Their Goals and be Engaging
Social Media
Advertisements Person to Person
© 2015 Merkle. All Rights Reserved. Confidential17
5 Consumer-Centric Principles for Personalization
Personalization
ValueExchange
Engagement
Responsiveness
Context
© 2015 Merkle. All Rights Reserved. Confidential18
Business Impact of Personalization
• 6-8% increased response rates due to optimized segmentation (Accenture/Aprimo)
• 2-3% increased sales (conversion rates) tied to campaign effectiveness and execution(Accenture/Aprimo)
• Precision targeted emails can generate 10x the revenue and 20x the profit of standard campaigns (Accenture/Aprimo)
• 3 Year Increase in Average consumer Revenue of up to $300/customer from a 10% consumer Satisfaction Improvement (Forrester)
• Companies with strong consumer experience enjoy 14.4% more consumers willing to buy another product, 16% less likely to switch and 17% more likely to recommend. (Forrester)
Revenue Enhancement
• 30% Reduction in campaign spend waste through improved financial controls and visibility
• 20% Reduction of cycle times, including creative and production services
• 20% Improvement in productivity gain due to real efficiencies and user adoption
• 10% Optimization of the marketing mix due to enhanced visibility and decision making
• Reduced agency spend by 13 percent• Decreased campaign cycle time by 32 percent
Cost Avoidance
• Improved consumer experience
• Increased consumer satisfaction
• Increased consumer retention
• Decreased acquisition costs
• Removal of touchpoint redundancies
• Alternate channel operations
• Right message / offer/right time
• Frequency management
• Consumer preference management
CRM Improvement Benefits
Best-in-Class companies were 4.7 times more likely than their peers to use an integrated automated solution (Aberdeen)..
Avg. 15X project investment return
after 3 years
© 2015 Merkle. All Rights Reserved. Confidential19
Evolution of Personalization
Campaign Management Channel Optimization Decision Optimization
Key segments differentiate groups for batched communications
Journey based engagement defines offers and interactions.
Targeting
Optimization
Level of insight
Channel / Media
• Campaign Based• Known consumers• Batch Models
• Channel based• Anonymous• Real-time segments
• Experience based• Machine learning
• Batch “List” Execution• A/B Testing
• Cross channel & real-time• Interaction optimization
• Email • Direct Mail
• Website• Landing Pages• Contact / Service Center• Sales Automation
• Display• Social• Smart Devices• Tablets
Segment & Interaction
Personalized Experience
Segment
1st & 3rd Party
Segment
1st,, 2nd, & 3rd Party
• Single channel real-time• Multivariate testing
Automated segments define the next best offer.
© 2015 Merkle. All Rights Reserved. Confidential20
Static Experience to Personalized Experiences(Channel Optimization)
This page doesn’t react to consumer data. All consumers receive the same page with the same messaging and/or offers.
No Personalization Personalization
Zone 1
© 2015 Merkle. All Rights Reserved. Confidential21 © 2014 Merkle. All Rights Reserved. Confidential
© 2015 Merkle. All Rights Reserved. Confidential2222
More Data and Tools Than Ever to Complete This Picture
Her search query
Her past behavior onyour site
Her history with your brand online and offline
Her social network and activity
All of her online activity
All of herpurchase history,
online and off
© 2015 Merkle. All Rights Reserved. Confidential23
Append!
© 2015 Merkle. All Rights Reserved. Confidential24
Data is an Asset! Mine It For Competitive Advantage
Systematic Use of Information
• Customer Data Warehouse
• Data analysis and gathering
• Predictive modeling
To Attract and Keep Customers
• Cost-efficient acquisition
• Retention focused on profitable and at-risk customers
• Across channels
Through On-Going Dialogue
• Real-time response
• Listening to customer
• Personalized, customized offers and messages
For Long-Lasting Mutually Beneficial Relationships
• Customer-based measurements
• Continuous customer evaluation
Data-Driven Marketing Uses Information To Drive a Meaningful & Mutually Beneficial Dialog Relationship
© 2015 Merkle. All Rights Reserved. Confidential2525
© 2015 Merkle. All Rights Reserved. Confidential26
Behavioral ContextualDescriptive
Weaknesses Data Overload, Sys. Integration Complexity
Difficult to Gather and Structure Into System
Low Differentiation, Data Privacy
ExamplesPurchases, Usage;
Communication, Lifestyle
Satisfaction, Events Competitor Actions,
Online Behavior
Contact, Size, Socio-Economic, SIC, Demographics
SourcesInternal Systems, Loyalty Schemes,
External Data Sources
Social Media, Cookies,
Market Research
Operational Systems, External
Data Sources
Strengths Personalizes to organization Relevant to CustomerEasily Available
Key toSuccess
Completeness CreativityAccuracy
PurposeUnderstand Customer’s
Behavior
Understand Motivations & AttitudesUnderstand Customer
Types of Customer Information
Have a Customer Information Strategy
Increasing Difficulty & Value
© 2015 Merkle. All Rights Reserved. Confidential2727
And a Data Strategy – 360 Consumer View
CUSTOMER INSIGHTS PURCHASE CONSIDERATION BRAND INTERACTION
Profile Completion
Social Connect
Mobile App Usage
Event Check-in
In-store Check-in
Post/retweet w/Brand hashtag
Share Brand page
Referral (sign-up/purchase)
Write Product Review
Add Item to Wish List
In-store try-on
Watch a video
Like a Product
Pin Product
© 2015 Merkle. All Rights Reserved. Confidential2828
Enhanced Consumer Data aka. 1st Party
STANDARDDATA CAPTURE
ENHANCEDDATA CAPTURE
Name
Mailing Address
Purchase Item
Transaction Amount
Name
Mailing Address
Purchase Item
Transaction Amount
Items Viewed
Items Added to Wish List
Purchase Frequency
Visit Behavior
Preferences
Social Likes
Social Posts
Product Ratings & Reviews
Emails Opened/Clicked
Advertisements Clicked
© 2015 Merkle. All Rights Reserved. Confidential29
Leverage Everything You Know About Your Consumers
LIFECYCLE
BEHAVIORIDENTITY
SEGMENT
LOCATION VALUE
Client 1st Party Data
CRM
Facebook1st Party Data
+
© 2014 Merkle. All Rights Reserved. Confidential
Addressable Consumer Experiences Create Competitive Advantage
© 2015 Merkle. All Rights Reserved. Confidential31
Ad Tech & Marketing Tech Make Personalization PossibleM
AR
KE
TE
R
CO
NS
UM
ER
© 2015 Merkle. All Rights Reserved. Confidential32 © 2014 Merkle. All Rights Reserved. Confidential
© 2015 Merkle. All Rights Reserved. Confidential33
3 Fundamental Layers
DATA MANAGEMENT
ANALYTICS & ORCHESTRATION
MEDIA & CHANNEL EXECUTION
CO
NS
UM
ER
MA
RK
ET
ER
© 2015 Merkle. All Rights Reserved. Confidential34
Realizing the Benefits of Personalization or A.C.E Requires Mid Funnel Integration
Awareness
Consideration
Engagement
Conversion
Commerce
Experience
CRM
Channel
Optimization
Performance Media
Brand Media
MEDIA & CHANNEL EXECUTION
ANALYTICS & ORCHESTRATION
DATA MANAGEMENT
© 2015 Merkle. All Rights Reserved. Confidential35
Awareness
Consideration
Engagement
Conversion
Commerce
Experience
But Today’s Consumer Journey Resembles Pachinko
Customer Remarketing
Audience 1 Audience 2 Audience 3
Upper Funnel
Mid Funnel
Lower Funnel
Media
Sales/Service Experience
Traditional CRMDM, EM, Re-Targeting
Unknown
High-value customer
Unknown
High-value customer
Low-value customer
The Expanded Mid FunnelSingular experience from consideration through conversion
CRM
Channel
Optimization
Performance Media
Brand Media
Desktop Phone Tablet TV
© 2015 Merkle. All Rights Reserved. Confidential36
The 3C’s are Foundational for Addressable Consumer Experiences
CONTEXT
Our applied knowledge
of the consumer
Every asset we have to put in front
of the consumer
CONTENTCONNECTIVITY
When we bringthe two together
in media and channels
© 2015 Merkle. All Rights Reserved. Confidential37
A Connected Customer View is Essential
Social
Direct Mail
Display
Search TV/Video
Mobile
Site
Product
LTV Segment
Demographics
Life Events
Call center
Meetings
1st Party Data
3rd Party Data
CRM Database
© 2015 Merkle. All Rights Reserved. Confidential38
Audience Platforms
Integration of the Marketer’s Person-Level Data Assets with Addressable Audience Platforms Creates Opportunity
An Audience Platform is a digital technology that enables targeted, personalized experiences to individuals
Customers
1st Party Data
3rd Party Data
CRM Database
© 2015 Merkle. All Rights Reserved. Confidential3939
Audience Targeting
Traditional Vehicles, plus:
Display Re-Targeting
Facebook Custom Audiences /Twitter Tailored Audiences
Geo-Fenced Mobile Display / In-Store Beacons
SMS
RLSAs
© 2015 Merkle. All Rights Reserved. Confidential40
© 2015 Merkle. All Rights Reserved. Confidential41
Case Studies
© 2015 Merkle. All Rights Reserved. Confidential42
Upper Funnel
Lower Funnel
Mid-funnel
Upper Funnel
Lower Funnel
© 2015 Merkle. All Rights Reserved. Confidential43
Initial Inclusions
All Simplified Issue Term (SIT)
Completed Applications
(~53K)
Proposed Target Segments Comments
1 – Random Sample (Include sold policies only, ~26K)
2 – SIT Basic cuts (remove low value, include sold accts, ~20K)
3 – SIT High Value (Include policies w/ ann prem > $500, ~8K)
4 – SIT Internet Savvy (Include policies sourced online only, ~8K)
5 – MLT Basic Cuts (remove low value, include sold accts, ~20K)
• Establish baseline• Future Model Sample• Comparison to “Targets”
• Prove targeting concept• “Easy” solution• $200 Premiums (~75%)
• Top ~25% of policies• Validate target CPA• Policies, remove “free looks”
• Target responders – OEA• Target online dispositions• Include min Prem ($100)• Lower conversion costs• Policies, remove “free looks”
• Generate understanding of different product performance
• Extrapolate targeting benefits
All MetLife Term (MLT) Completed
Applications (~60K)
© 2015 Merkle. All Rights Reserved. Confidential44
Image: AImage Text: A
Post Text: ALink Title: A
Link Description: A
Image: AImage Text: B
Post Text: ALink Title: A
Link Description: A
Image: AImage Text: C
Post Text: ALink Title: A
Link Description: A
Image: BImage Text: A
Post Text: ALink Title: A
Link Description: A
CT-1000091
CT-1000092
CT-1000093
CT-1000094
Ad Unit Combination Test ID
81 Permutations
© 2015 Merkle. All Rights Reserved. Confidential45
Increase in lead to sale ratio by
as compared to the next best performing channel
decrease in Cost per Lead in 2014
the Cost per Premium (CPP) of other display channels in 2014
“Working with their agency Merkle, MetLife used lookalike audiences to find people more like its existing customers, MetLife ran ads that led people to its “get a quote” website page.”
- Sheryl Sandberg, Facebook
Facebook Earnings Call 10/28/14
2.4X
49%
less than half the cost
© 2015 Merkle. All Rights Reserved. Confidential46
Whopping Impact of the “Mid Funnel”
Q1 - 2014Q4 - 2013
© 2015 Merkle. All Rights Reserved. Confidential47
Merklewww.Merkleinc.com
© 2015 Merkle. All Rights Reserved. Confidential48
Let’s All Be Leonardo!
© 2015 Merkle. All Rights Reserved. Confidential49
Or Einstein!
© 2015 Merkle. All Rights Reserved. Confidential50
AGILE Marketing Will be THE Hallmark of Winners!
1. Collect & Integrate
2. Analyze & Discover
3. Act & Optimiz
e
4. Execute
& Deliver
SPEEDPROCESSMETRICS
DATA to Understand Customers/Consumers
• Manage Data• Rich Content• Contextual Relevance• Strategic Intent• Omnichannel Touchpoints
• Orchestrated Customer Experience• Continuous Improvement• Refine• Benchmarking• MEASUREMENT
Critical Success Factors• Rapid Cycle Learning• CMO & CIO Partnership
© 2015 Merkle. All Rights Reserved. Confidential51
A Phased Approach is Best
FullyIntegratedExperience
• Streamlined campaigns
• Recommender system enables 1-to-1
• Name/address hygiene
• All addressable media
• Web data integration
• Two way interaction
• Real-time integration
• Real-time Two way interaction
• Store & POS integration
• Call center integration
• Media & Marketing Mix
• Segmentation alignment
Offline Channel
Integration
Digital Channels
Integration
Mass MediaIntegration
Digital MediaIntegration
Email and DM
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
CRM Database
© 2015 Merkle. All Rights Reserved. Confidential52
MERKLE - Experts in the Mid Funnel!
CONSULTINGDATA
MANAGEMENTPERFORMANCE
MEDIA
Data Driven, Tech Enabled Performance Marketing Agency, we have built a set of solutions to capitalize on this new funnel.
In order to capitalize on this new world, organizations will have to rethink their internal
structure, processes, and marketing supply chain.
CRM
Brand Media
Performance Media
Channel
Optimization
© 2015 Merkle. All Rights Reserved. Confidential53
Thank You
[email protected]@AileenCahillSlideShare