RETAIL MARKETING IN THE DIGITAL AGEadnext.co.za/wp-content/uploads/2012/10/Retail... · Loyalty...

Nikki Cockcroft Chairwoman: DMMA Chairwoman: The Bookmarks Awards Woolworths: Head of Online

@nikkicockcroft www.nikkicockcroft.com

RETAIL MARKETING IN THE DIGITAL AGE

WHAT’s changed?

Online Publishing: • Design • Content Rules • Advertising

Ratios • Search • Usability • Information

Architecture

Online Advertising:

• Search

• Email

• Display

• Video

• Mobile

• Microsites

• Social Media

Technology:

• CMS

• Adserving

• Personalization

• Search

• Commerce Engines

WHAT’s changed?

Retail Marketing:

• Print

• TV

• Radio

• Outdoor

• Instore

Online Retail:

• Display

• Email

Bridge the Gap

WHAT’s really changed?

THE CUSTOMER

Global Tipping Points

Confident, Informed, Connected, Empowered

Consumer Ubiquitous

Broadband

New

Technologies

Recessionary Spending Habits

Increased Access to Information

Explosion in New Propositions

Increased

Choice

SA Consumers

Confident, Informed, Connected, Empowered

Consumer Ubiquitous

Broadband

New

Technologies

Recessionary Spending Habits

Increased Access to Information

Explosion in New Propositions

Increased

Choice

✔

✔ ✔

✔

✔

Going Mobile

SA Performance 2011

Indicator Penetrations South Africa Global Developed Nations

Emerging Markets

Africa

SIM Penetration 115% 87% 118% 79% 53%

Internet Penetration 14% 35% 74% 26% 9%

Facebook Penetration 10% 33% 35% 8% 4%

Smartphone Penetration 20% 7% 45% 17% 5%

80% by 2014

Source: Vunani, 2012

Spending Habits

Digital Retail Marketing

NEEDS

WANTS

CONVENIENCE

RELEVANCE

Spending Habits

Digital Retail Marketing

NEEDS

WANTS

CONVENIENCE

RELEVANCE

Digital Marketing Food, Banking, Airlines

Footwear, Brand Clothing, accessories

SINGLE TARGETED

MSG

Shift in Focus

• Focus on the Customer ADAPT the technology

• Reach your customer anywhere

• At a time & place convenient to them

• Add Value

• There is place for all channels

• It is YOUR customer

From interruption to integration

Marketing Messages

Trade Planning

Online Customer

CONSISTENT MESSAGE

INPUTS


Traditional Customer DATA

TRANSACTIONAL DATA

Online Customer Data

DATA INPUT

INPUTS


TARGETED PERSONALIZED

CONSISTENT MESSAGE

Web Display

OUTPUTS

Mobile Video SOCIAL SEARCH STORES

• Convenience • Relevance • Value • Personalization

From Multi-Channel to Omni-Channel

Definition: Omni-Channel

• Evolution of multi-channel

• concentrated more on a seamless approach to the consumer experience

• through all available channels

• Omni-channel delivery requires providing an immersive and superior customer experience regardless of channel

A CUSTOMER_CENTRIC APPROACH:

Focus on the Consumer: Let go of Emotion

• Let DATA be your driver:


(SINGLE) Customer Profile

Name: Nikki Cockcroft AGE: 32 Female: Yes Region: Cape Town Children: No Birth Date: 21/04/1980 Shopper Type Food

Loyalty Customer Yes

Segment Finest X-Shopper

Browse Clothing Weekend

Purchase Behaviour Instore: Food Web: Food (Conv.)

Promotions Food Vouchers WRewards (mobile)

Digital Marketing Mix

DAY Target Platform

Saturday Online Vouchers

Mobile

Sunday Summer Launch

Social (FB)

Monday Reminder complete shop

Display (News24)

Wednesday Insert in C&C

In store

Friday Device recognition - In store promo

In store

DATA: Our DATA Future:


Traditional Advertising: less relevant

Relationship between brands and customers is evolving rapidly into one where the consumer is in more control of what she chooses to hear or see. WHY? Information is easier, cheaper to access RESULT? Customers are more confident, informed, connected and empowered



Experiences: On-demand The consumer is shifting more attention toward experiences that take place at a time and place of their own choosing. Digital touch points (mobile devices, computers permanently connected to the web) are at the heart of this revolution.



Insights on the fly

Where traditional (non-digital) channels rely on after-the-fact, sample-based research to provide insights into effectiveness of messaging, every digital interaction a consumer has creates a piece of data that can be used to build insights and tailor experiences on the fly. >> ONGOING OPTIMIZATION

Focus on the Consumer: Our DATA Future:


Decisions based on data

Usage and behavioural data allow brands to tailor experiences (on a mass level) to suit the needs of each individual user/consumer/customer/client.

Journey to an Omni-Channel World:

– Have a Vision

– Develop a strategy

– Get the right people and right partners

– Implement the right structure (centralised vs. decentralised)

– Be prepared to make mistakes

– Ongoing Optimization

– Understand the full investment

– Have patience

A CONSUMER-CENTRIC APPROACH:

CSI

PRODUCTS

FINANCE

CLIENT SERVICE/

CUSTOMER STORES CORPORATE BLOYALTY

SERVICES


Structure: Where does it sit within the organization?

Marketing IT ONLINE


6 Steps to Omni-Channel success: STEP 1: Know your Customer

STEP 2: Design the Solution

STEP 3: Choose the Approach

STEP 4: Presentation and Transformation

STEP 5: Development

STEP 6: Measure the Results

6 Steps to Omni-Channel marketing:

STEP 1:

Know your Customer Geographics Demographics Analytics

• Use DATA • Understand User Behaviour • PLUS: points of engagement

…whilst recognizing channels have points of difference

• Short form content • Up-to-Date • On-the go • Quicker engagement

for shorter periods of time

• Long form content • Aggregation is key • Potentially on-the go • Longer engagement for

shorter periods of time


6 Steps to Omni-Channel success: STEP 1: Know your Audience Geographics Demographics Analytics

STEP 2: Design the Solution • Objectives • Branding • Consumer Priorities • Best Practices (UX) • Seamless Integration • Success Criteria

Q: What is the user’s context?

Q: What should we display in message?

Q: Where should we display in message?


Step 2: Deliver best in class User Experience across all channels

Personalize

Understand the Consumer: What do they want? Headlines Columns Breaking News Lifestyle

Customize

Understand the User Journey UX Testing: Lab Tests Variant Tests Engagement

Integration

Integration Content specific for Device Single view of the User Responsive design

Modeling

Map the User Journey? Modeling Wireframing Testing

PERSONALISE



STEP 2: Design the Solution Branding Consumer Priorities Best Practices (UX) Seamless Integration Success Criteria

STEP 3: Choose the Approach Marketing Mix Content Integration Development Req’s




STEP 3: Choose the Approach Platform Modules Services Integration Application

STEP 4: Presentation and Transformation Content Presentation Multiple Devices

• Develop the necessary presentation of the campaign for the entire journey

• Consider the device and adaption required


Consider Responsive Design…

WHY? • Save time • Save money • Single development

WHY NOT? • Channel specific

strategies need to be developed separately






STEP 5: Development In house vs. Outsource Hosted vs. Integrated

Cost vs. Returns

Platform + Implementation + Maintenance & Support

Short term win, vs agility for future vision

Step 5: Development






STEP 5: Development In house vs. Outsource

STEP 6: Measure the Results Total economic value

Step 6: Measure the Results

1. Use Analytics (BEYOND THE CTR)

2. Identify Trends, Consider the Behaviour, Track conversions

3. Be willing to make changes (Ongoing Optimization)

STEP 6: Measure the Results Total economic value

STEP 1: Know your Audience Geographics Demographics Analytics

What does SUCCESS look like?

TOTAL ECONOMIC VALUE of ONLINE

1. Campaign Measures (audience behaviour)

2. Sales (online and offline)

3. Products (level of engagement + conversions)

4. Services (activations)

5. Technical (stability, innovation)

6. Operations (all the way to the customer)

7. Marketing (Single message)

TAKE OUTS

• Shift focus from technology to the consumer

• From Multi-channel to Omni-Channel

• Let Data be your driver

• Know your customer, to deliver a personalised experience

• Design the solution with best in class user experience

• Have a single view of you customer and give them a consistent yet continuous experience, always adding value

• Have a Vision, develop a strategy

• Meet your customer anywhere, anytime!

• Finally measure the results…

Thank you @nikkicockcroft

RETAIL MARKETING IN THE DIGITAL AGEadnext.co.za/wp-content/uploads/2012/10/Retail... · Loyalty...

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