Post on 28-Jul-2015
Merging Online & Offline to Deliver Omni-channel Experiences: A Journey from Measurement to Merchandising to Management
Michael KahnCEOPerformics
Chris DuncanVice President, Strategic MarketingKohl’s
PerformicsA performance marketing agency network focused on the relentless pursuit of results
Kohl’sA leading specialty
department store focused on
inspiring and empowering
families to lead fulfilled lives
The digital of everything is driving this retail journey
Executive Summary
The evolution and revolution required to master this journey is evergreen and relentless
Mastery will be built on data, measurement, platforms and technology…strategic infrastructure to drive strategic management and engagement across channels, screens and platforms
An Agency Perspective:Our Omni-Channel Journey
Performics Journey1998Performics launches network to drive online sales for catalogers
2001Performics adds paid search as distribution channel
2003Performics adds organic search as distribution channel
2009Performics adds social & display as distribution channels
2011Analytics practice evolves to address cross channel needs (search to display and social)
Biddable Media Scale& Efficiency
Technology & Platform Integration
Data-DrivenContent &
Optimization
2015
Attribution
Media Mix
DMP
Performics Omni-Channel Evolution
2012 - 13Mobile reaches critical mass: strategy, optimization and measurement focus on cross channel and online – offline dimensions
2005Performics initiates analytics build out focused on clicksteam
How Do We Avoid
Data Paralysis?
How Do We Create Fully Connected
Experiences?
Questions Our Clients Are Asking
How Do We Better Understand Consumers?
NON-BUYERS BUYERSacquisition of retention of
enjoy
aware
buy
unaware consider
Ultimately, How Do We Win in the Decision Point Battleground?
Changing Consumer Behavior Driving Omni-Channel Demands
More Touch-points, Channels & Devices than Ever Before . . .
StimulusAwareness
TV, OOH, Display
Zero Moment of
Truth (ZMOT)Decision
before Store
Search, Social, CSE
First Moment of Truth (FMOT)In-Store
Product Placement, Packaging,
Signage
Source: Google/Shopper Sciences, Zero Moment of Truth Macro Study (N=5,003)
72% said physical stores are important in shopping
Compared with 67% who rated the Internet similarly
73% people research online, then buy in-store
PwC, Total Retail 2014 Survey
Physical & Virtual Shopping have Merged . . .
With Mobile at the Center . . .
Source: Google/IPSOS (May 2014)
Marketers Working To Keep Pace
Marketers Agree: Omnichannel is Key
• As consumers bounce from device to device, brands are trying to figure out how to track them
• 67% of marketers state that integrating all marketing activities across channels is a main goal
Econsultancy Cross-Channel Marketing Report 2014
But this Doesn’t Mean Marketers are Delivering It
Econsultancy Cross-Channel Marketing Report 2014
Major barriers to implementingan omni-channel approach include:
Lack of appropriate tools/tech
Available media options not optimized
Lack of addressable data sources
Substantive Obstacles To Be Solved For
Elevating Our Practice for Omni-Channel Success
Uncovering Intent
Planning for a Digitally-Bridged Store Future
Digital Maturity Mapping
Focusing on the data that matters
Searches for store increase
by 33%
Average online sale $45
Find her where she’s active
Fall campaign ads drive 9 million impressions
Women aged 19-29 value price over brand
1,209 active SKUs on display
Recent searches
Coupon websiteLeather jacket customer review Top fall trends for 2014
Data that uncovers consumer intentThe largest marketing variable. It shapes
queries, dictates paths-to-purchase & mediates meaningful inter-actions with brands regardless of channel, media or content type.
Our Work To Uncover Intent
The process of identifying intent & applying that insight toward improving brand engagement to drive measureable performance
• Primary research• Brandwatch• SocialTools• Benchtools• eMarketer• Forrester Research
Initial Intent Hypothesis
Planning & Insights
Refined Intent Hypothesis
Analytics + Planning & Insights
Testing, Learning, Scaling
Analytics
Pla
nA
lyti
cs
Outp
uts
Sourc
es
of
Data
• Glance• Google Analytics• CRM Data• YouTube Analytics• Bluekai• Axiom
• Client Brief• Draft KPIs• Tech & Data Audit• Content Audit
• Digital Maturity Plan• CX Loop• Audience Segmentation• Learning Agenda• Organizing Idea• Brand Experience Map
• Performance Strategy, Activation & Optimization
Process
Digital Maturity Mapping: Four Strategic, Data Infused Areas
Business Intelligence
Fully Attributed Media
Audience-centric Advertising
Predictive Analytics
Deep integration with CRM and DMP systems creates hyper-relevant customer experiences
Maximize return & scale through performance budget allocation based on optimal spending
scenarios
Aligning with seasonality, new arrivals & promotional events maximizes investment
Unified reporting provides omni-channel single point of view of customers
Digital Maturity Mapping: Elevational Roadmap
Fully Attributed Assets
Business IntelligenceMulti-Channel
Reporting
Attribution & Budget Planning
Flighting Strategy Based on Attribution Findings &
Forecasts
CRM Enabled Search
Multi-Touch Attribution
Audience-centric Media
Predictive Analytics
Mobile Search
Geo-Specific & On-Site User Experience
GDN
Call Metrics TrackingNew Customer
Attribution
Site Design and Conversion
Optimization
Integrate SEM + SEO Reporting
Local PLA Extension
YouTube TrueView
Shared Media Plans
Report Automation
Channel Specific Regression Models
Dynamic Media & Content Delivery
Customer Decision Engines
Basics Competitive Standard Market Leading
Personalized Experiences at Scale
All Channel Valuation
Media Mix Driven
Activation
Business IntelligenceAutomated omni-channel reporting
provides +50% reduction in
reports generation
Predictive AnalyticsPredicating demand
based on seasonality drives
+15% margin, -8% spend in paid search
Fully Attributed MediaCross-channel budget allocation finds thatSearch + display together drive 80% more conversions
Audience-centric AdvertisingUsing CRM to create hyper-relevant experiences wins2X conversion increase
Digital Maturity Mapping in Action
Tech
Retail
Tech
Tech
• Mobile drove significant traffic to stores• 3.1X lift in-store visits over control audience
(unexposed group)• 2.3X lift of the exposed audience vs. the general
population (consumers who may shop at retailer)
Planning for a Digitally-Bridged Store Future
We tracked store visitations as a control vs. exposed context to prove out a campaign’s true ROI Capture device surrounding store
More and more shoppers doing both
Entrance Checkout
Endcaps Category
Walmart: Physical Gets DigitalIn-store Shopping App
Allow for in-person pickups
Centers in close customer proximity
Amazon: Digital Gets Physical
In Q1 2015, opened a pickup and drop-off location on the campus of Purdue UniversityStudents could order everything from textbooks to mac and cheese to pickup
A Retailer Perspective:Our Omni-Channel Journey
1999Kohls.com founded
2012Launch of first mobile apps
2012Launch in-store WiFi
2013Re-platform of Kohls.com
2014Launch Ship from Store
2014Launch BOPUS test
2014New mobile experiences – t.com & mobile apps
2015Full chain roll out of BOPUS
2015Launch multi-touch attribution
Kohl’s Omni-Channel Evolution
Omni-channel planning
Omni-Channel Measurement
Consumers, devices and the changing media
landscape have added complexity
Internal AlignmentBuilding
consensus and proving what we think to be true
MerchandisingMarketing Marketing’s success and overall efforts
Omnichannel ManagementCombining measurement, alignment, and execution to become great
Today, Our Key Challenges Are . . .
Challenge #1: Measurement is More Complicated than Ever
Channel (both marketing & shopping) performance is measured separately, causing gaps in visibility and limiting optimization
The changing technology landscape makes ongoing scrutiny and internal education necessary to stay ahead
Media is managed by diverse partners without a completely neutral source to measure success and develop strategy
MEASUREMENT GAPS
A cross-channel organization requires more resources and a different type of experience that may not be available
MEDIA SILOS LIMITED RESOURCES
RAPID TECH ADVANCEMENT
Marketers Agree: Marketing Analytics are Contributing Less
• Contribution from marketing analytics has stayed relatively flat over the last 3 years
• This year, CMOs say analytics are actually helping them less now than they were in 2012
• Technology and data should provide ways for us to solve this
More Mobile, More Problems
Cross-Device LocationAccuracy
Offline & OnlineAttribution
Mobile
Targeting Privacy
Mobile Is Still Not Integrated
Econsultancy Cross-Channel Marketing Report 2014
Measurement Approach A: Customer Matched Analysis• Customers who engage with us digitally that we can track vs. similar customers
that don't
Positive
Simple to execute & measure
Negative
Not a complete picture; hard to make media decisions. Limited by what we can actually track.
Summary
Helps us directionally understand what digital is doing for our offline business
Measurement Approach B: Market Test v. Control• Increase spend in digital channels in distinct DMAs & measure vs. similar DMAs
where we didn’t increase spend
Positive
Helps understand how high is high, and how much impact we can truly have on our store business
Negative
Doesn’t help us understand customer behavior or media impacts
Summary
Simple view but it satisfies the most important stakeholders (CFO, CMO)
Measurement Approach C: Multi-Touch Attribution• Accounting for ALL media touch-points & ALL customer sales (where we’re
headed)
Positive
Best picture of how customers engage with media & accurately gives credit to all channels. Enables quick decisions on specific KPIs.
Negative
Very hard to setup & track. Process has been 18 months+ in the making. Reliant on tracking of customers
Summary
Go-forward best practice for most omni-channel brands
Challenge #2: Internal Alignment & Merchandising
• Market ourselves• Showcase results• Build trust
BUILD TRUST INTERNAL EDUCATION
• Explain to teams• Overcome skeptics• Prove what people
already know is true
REALLOCATE BUDGETS
• Take from print• Explain why this is better
Major barriers omni-channel success include:
Managing offers across campaigns
Resources & coordination across departments/brands
Adequate staff, IT, data support
Marketers Agree: Omni-Channel is Difficult
• However, it is worthless if we don’t put it to good use by:
– Scaling it– Effectively
managing at the speed of retail
• What we’re building, and the analytics & data that we manage will make us great
Importance of Omni-Channel Management
+80% of Online Purchases are multi-touch conversions(Either same marketing channel or multiple channels)
of Online Purchases are multi-channel conversions(Result of customer interacting with multiple channels, i.e. search/affiliate/social)
+70%
How Kohl’s is Approaching Omnichannel Management
Aligned Priorities
• All parties must have the same goals:
• e.g. managing spend to maximize sales/margin is different than maximizing to drive new customers
The speed at which consumers change & interact with media happens so fast. What took place last month may change this month.
Willingness to Change
• Soliciting feedback from partners, customers & associates
• They can help you understand & get ahead of the changes
Strong Feedback
Kohl’s Omni-Channel Success
The digital of everything is driving this retail journey
Executive Summary
The evolution and revolution required to master this journey is evergreen and relentless
Mastery will be built on data, measurement, platforms and technology…strategic infrastructure to drive strategic management and engagement across channels, screens and platforms
Questions?
Thank You!Michael KahnGlobal CEO, PerformicsMichael.Kahn@Performics.com
Chris DuncanVP, Strategic Marketing, Kohl’sChristopher.Duncan@Kohls.com