The Contextual Marketing Imperative: Rethinking your personalization strategy

The Contextual Marketing Imperative: Rethinking Your Personalization Strategy

May 25, 2016

Welcome to today’s webcast, “The Contextual Marketing Imperative: Rethinking Your Personalization Strategy”

For audio participation, please turn up the speakers on your system.

Tweet about today’s event: @SAPhybris , @brendanwitcher , @marketingissues , #contextualizedmarketing

Guest Speaker: Brendan Witcher Principal Analyst Forrester

Bernard Chung Sr. Director, Solution Marketing SAP Hybris

Featuring

Featuring Guest Speaker Brendan Witcher Principal Analyst

Empowered customers have given rise to a new era.

© 2016 Forrester Research, Inc. Reproduction Prohibited 5

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.

Information

Price Location Tech


Information

Price Location

Tech

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.

By 2019 there will be 3.5 billion smartphones in the world.

Source: “Global Business And Consumer Tablet Forecast Update, 2013 To 2017,” August 5, 2013, Forrester Research, Inc.


Source: “Forrester Research Web-influenced Retail Sales Forecast: 2015 To 2020 (US),” September 15, 2015, Forrester Research, Inc. Image Source: (media.pathfinder.gr/cman_img_f/9549445219531437587.jpg)

of 2016 store sales will be web-influenced

In the US,

38%

© 2016 Forrester Research, Inc. Reproduction Prohibited 12 S ource: Forres ter R esearch Web0Influenced Retail S ales Forecas t, 2015 To 2020 (US )

US reta il s a les($ billions)

$376 $415 $452 $488 $523

$1,290 $1,366$1,445 $1,530 $1,618

$1,706 $1,710 $1,715 $1,721 $1,728

2016 2017 2018 2019 2020

Online sales

Web0influencedoffline sales

Offline sales

49% 51% 53% 54% 55%

$ 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),” September 16, 2015, Forrester Research, Inc.

Online and web*influenced offl ine

sales as 0a0percentof total retail sales

$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


Agenda ›  The broken state of marketing and

personalization today › Defining the four pillars of

personalization 2.0 › Recommended steps for delivering the

next wave of personalization

MARKETING IS BROKEN

Marketers bombard customers with irrelevant messages. Not targeted, not relevant

of online ads are ignored Source: Google Display Benchmark Tool

99.94%

Email click through rate Source: Getresponse

3.57%

All digital channel response rate Source: DMA Response Rate Report 2015

0.62%

MARKETERS

Source: Forrester Research “The Contextual Marketing Imperative”, Oct, 2015

rate their personalization efforts at “very good”

or “excellent”

companies are consistently delivering personalization, cross channel experience

66% 31%

CUSTOMERS

GAPS IN DELIVERING PERSONALIZATION

LACKING KEY CAPABILITIES

91% Of Marketers are prioritizing customer experience through personalization1

16% only have the capability to capture customer intent and respond in real time1

80% Don’t know much about their customers2

Source 1: “The Contextual Marketing Imperative”, Forrester Oct 2015 Source 2: “Marketer Stuck on Basic Data for Personalization”, eMarketer June 2015 Source 3: “Mastering Adaptive Customer Engagement”, CMO Council 2014

Only 28% deliver a personalized experience across channels3

EVOLUTION OF PERSONALIZATION

Rely more on the pillars of individualization, rather than segmentation


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%

eBusiness leaders must help organizations prepare for the next evolution of personalization, which will rely more on the pillars of individualization rather than segmentation.


There is a significant gap between belief and reality with personalization

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


Marketers today are prioritizing a capability they are not able to fully deliver on

Base: 200 advertising and marketing professionals in the US, EMEA, and APAC Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, 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.


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.


11

Base: 200 advertising and marketing professionals in the US, EMEA, and APAC Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015 Image Source: https://www.youtube.com/watch?v=u-6hRFssmbc


11

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

Digital strategy is not channel strategy –

companies must build and deliver connected customer experiences.


Depth

Reach

Relationship

E XPLOR E

US E

AS K

ENGAGE DIS C OVER

BUY

Single data points are often used to personalize the entire customer journey

Me

XSingle data point


Depth

Reach

Relationship

E XPLOR E

US E

AS K

ENGAGE DIS C OVER

BUY

Single data points are often used to personalize the entire customer journey

Me

XSingle data point Just because you know

one thing about the customer doesn’t mean

you know everything about the customer.


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


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

It is a waste of everyone’s time to personalize

experiences that provide no real value to a

customer’s journey.

Be careful to understand and respect personal boundaries

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

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

Proceed with caution: be overt about collecting data, but covert about

communicating what you know about the customer.


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

Base: 200 advertising and marketing professionals at organizations and 200 advertising and marketing professionals in the US, EMEA, and APAC Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

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


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)

43 © 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

Base: 1,200 consumers in the US, EMEA, and APAC Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015

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

Base: 200 advertising and marketing professionals in the US, EMEA, and APAC Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015 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/)

BEST PRACTICES EXAMPLES

Bernard Chung Sr. Director, Solutions Marketing


OBJECTIVE SOLUTION

BENEFITS

•  Move from retail- to consumer-centricity •  Create central golden consumer profile

across multiple channels, incl. Foot ID •  Flexible and extensible omni-channel

marketing platform •  Personalize merchandising online

stores •  Engage directly with consumers

•  SAP Hybris Commerce •  SAP Hybris Marketing •  SAP CAR

CUSTOMER CENTRIC ENGAGEMENT

•  Simplified architecture, maintenance and user adoption •  Single platform to manage data and analytics capabilities •  Guiding sales with what activities to perform at each store


OBJECTIVE SOLUTION

BENEFITS

•  Consolidate customer information into one “Under Armour Record”

•  Connecting 38 million people via digital platform

•  Provide personalized messages at the best times

•  SAP HANA •  SAP Hybris Commerce

REAL-TIME CUSTOMER

INSIGHTS

•  Launched “Connected Fitness” program to capture real-time insights •  React to customer’s needs even before they realize the need •  Improved customer experience and brand advocacy


OBJECTIVE SOLUTION

BENEFITS

!  Engage with 30M fans in real-time !  Consolidate dozens of data sources,

from merchandise and tickets to paid subscriptions and fantasy hockey

!  Target fans based on their favorite teams, players and sentiment

•  SAP Hybris Marketing •  SAP HANA

PERSONALIZED FAN ENGAGEMENT

•  25% increase in visitors to the site – subsequent to campaigns •  45% higher engagement with fans •  Better personalization across different channels


OBJECTIVE SOLUTION

BENEFITS

•  Establish end-to-end marketing process •  Create 360 golden customer profile •  Provide high-speed segmentation •  Real-time data feeds for highest level of

accuracy

•  SAP Hybris Marketing •  SAP CRM powered by HANA

PUTTING THE CUSTOMER AT THE CENTER

•  Engaging with consumers in a smart way •  Better customer experience •  Higher return on marketing investment (ROMI)


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


1.  Experiences are built on each customer’s data and used to engage them as a segment of one.

2.  Engagement technologies capture, measure, and assess dynamically and in real time.

3.  Engagement is based on current behavior of the customer in the context of past behavior.

4.  Personalized experiences are seamless across screens, channels, and — most importantly — the digital touchpoints that exist across the enterprise.

What is individualization?

Evolution…not Revolution

. . . it is a business strategy that drives tactics and affects every part of an organization.

Individualization is not a tactic . . .

Security and risk

Enterprise architecture

eCommerce

Application design

Merchandise planning

Marketing

Customer insights

Customer experience Individualization:

engaging customers as a segment of one in real

time by listening, capturing, measuring,

assessing, and addressing intent across

every enterprise touchpoint


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 70 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.



4.  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#

Can Brendan present this slide?



individualization.



4.  Focus on creating great customer experiences and avoid crossing boundaries unnecessarily.

BONUS Leverage partnerships with digital experts.


Nordstrom expedited digital transformation by partnering with Shoes of Prey


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

individualization.



4.  Create exceptional customer experiences without crossing personal boundaries unnecessarily.

5.  Leverage partnerships with digital experts.

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…

The Contextual

Marketing Imperative:

The Evolution Of

Personalization From

Push Messaging To One-To-

One Personal

Customer Experiences

THANK YOU

Bernard Chung email: [email protected] follow @MarketingIssues

Brendan Witcher email: [email protected] Follow: @BrendanWitcher

Featuring

Questions?

Thank You.

Contact us to learn more:

Visit us at hybris.com @hybris_software

The Contextual Marketing Imperative: Rethinking your personalization strategy

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