Achieving a Single Customer View: The Holy Grail for Marketers

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Achieving a Single Customer View: The Holy Grail for MarketersHow to Put Customer Identity at the Center of Your Marketing Strategy

The Data Deluge The IDC says that consumers created 1.8 zettabytes of information in 2011 – that’s 56.5 billion 32GB iPads’ worth of data - and that the world’s information has more than tripled since then. To put it in perspective, that’s enough iPads to build a wall taller and wider than the Great Wall of China!

This volume of data comes from more than a handful of sources and channels, including social networks, mobile apps, search engines, content platforms, emails, videos, text messages and more. And the data deluge won’t be slowing down anytime soon – the IDC predicts that data will increase 10-fold by 2020.

A Brief History

Former Google CEO Eric Schmidt once argued that 5 exabytes of data were created between the dawn of civilization and 2003 — and that this amount of

information is now created every 2 days.

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Oh, The Irony! Every single data point is an opportunity to connect with your customers in more meaningful ways, and managing today’s volume and variety of data effectively is an imperative for businesses to meet customer expectations.

Businesses are trying to collect as much data as they can in attempt to learn more about their customers. But while data has the power to help you develop more personal customer relationships and relevant user experiences, if it is not collected and managed properly, it can lead to a totally disorganized and inaccurate view of your customers.

The 2.5 Quintillion Byte Question With more than 2.5 quintillion bytes of data being created across channels and devices each day, businesses are struggling to get a single view of their customers - there’s just too much data to process and make sense of. According to a recent Experian survey, while 99% of businesses believe a single customer view is important to their business, only 24% claim to have a clear understanding of their customers across channels.

The Big Benefits of Big Data

• 73% of consumers prefer to do business with brands that use personal information to make their shopping experiences more relevant (Digital Trends)

• A retailer using big data to its full potential can increase its operating margin by more than 60% (McKinsey)

• More than two-thirds of business execs believe they could lose their market position in the next 1-3 years if they don’t adopt big data strategies (Accenture)

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So how can your business manage big data in a way that effectively gives you a single, complete view of your customers that leads to meaningful interactions and relationships?

This guide takes a comprehensive look at how your business can develop a more effective strategy to understand your audience and drive value for your brand and customers by:

• Identifying your customers • Managing customer identity data • Integrating and applying data across marketing campaigns

Finally, we’ll take a look at how marketers can leverage this “holy grail” to improve user experiences and drive business success.

Identifying Your Customers“You’ve Got Mail” Remember the days of AOL? The Internet was a largely uncharted, somewhat daunting landscape driven by user anonymity. You went online to escape yourself, not to be yourself.

But with modern consumers publicly sharing information about their relationships, hobbies, locations, desired products and plans for the weekend via mobile apps, social networks, blogs and more, their real identities have become intertwined with their “virtual lives.”

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Online Anonymity is Dead As more interactions move to the digital realm, customers are demanding increasingly personal, real-world experiences across digital channels and devices.

Take your local Starbucks, for example. If you’re a frequent customer, the baristas will greet you by name, start making your favorite drink before you can even order, and ask about your two kids. They know you.

This is the type of relationship-driven experience today’s consumers expect businesses to bring to the online world:

• 40% of consumers buy more from retailers who personalize the shopping experience across channels (Monetate)

• 79% agree that their relationships with brands are more personal than ever before (Latitude)

• After receiving irrelevant information or products from a brand, 43% ignored future communications from the company, while 20% stopped buying from it altogether (Gigya)

Consumers have made it clear that customization and personalization are here to stay, but to get there, businesses need to understand the wants and needs of their customers.

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Missing the Mark Online anonymity is dead - and that’s a good thing. But in attempt to combat unknown users and give customers the “Starbucks experience,” too many brands are still using prehistoric third-party data techniques that cross the line.

Not only is being unknowingly “cookied” and tracked across the Internet creepy, but third-party cookies do little to tell you who your customers really are, merely providing a peek at device-specific browser history that may or may not belong to a known user. What’s more, data brokers often combine cookie data with unauthorized offline data such as purchase history, credit reports, medical records and more in attempt to build out “complete” consumer profiles.

Focusing on First-Party DataTo truly understand their customers, forge genuine relationships and create relevant cross-channel experiences, leading brands are turning to first-party data. First-party data can be captured using a variety of techniques, including email subscriptions, purchase forms, site analytics and more.

Because it comes directly from your customers, first-party data promotes transparent data collection and consumer privacy, and is more accurate than insights that have been bought and sold by third-party vendors.

Crumbling the Third-Party Cookie

According to Steve’s third-party data profile, Steve is a 32-year-old male. He has been browsing briefcases on high-end retail sites over the past several weeks, and

frequently reads New York Times. However, were marketers to try to reach Steve with information about a tuxedo sale or a subscription to Harvard Business Review, they wouldn’t have much success. Steve’s real identity is a stay-at-home dad, and

his business professional wife likes to borrow his laptop!

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Leveraging Customer IdentityOne of the most common ways to collect first-party data is via user registration and login. Prompting site visitors to register for and log in to your site or app gives them the opportunity to self-identify and share select information about themselves directly with your brand.

Capturing consumer identity is a major stepping stone to achieving a single customer view because your customers carry this identity with them as they move across your web properties, enabling you to tie all cross-channel activity and insights to a single, fully developed user profile.

To accomplish this, businesses must adopt a flexible registration system that enables them to easily build and deploy custom registration forms and flows, with security, privacy compliance and responsive design built in.

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Social Login as a SolutionIn addition to traditional sign-in, your registration solution should also support social login. Social login reduces barrier to site entry by allowing visitors to authenticate their identities using an existing social network or pre-validated user account. It is particularly convenient across mobile devices as consumers are often already logged in to their social network(s) of choice, making registration a seamless, two-click experience.

According to a recent Gigya survey, 66% of US and 59% of UK consumers say they use social login “always” or often” when given the option, while over 60% of respondents from both US and UK regions say they are likely to choose social login when using mobile devices.

When customers log in socially to your site or app, they can also grant your brand permission-based access to specific data points housed within their social profiles, such as their relationships, interests, and activities. This information is extremely powerful when it comes to creating more personal, relevant user experiences.

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Registration Done RightThe below registration page serves as a prime example of the elements needed to encourage unknown site visitors to identify themselves as known customers.

1. Gives visitors the option of both social and traditional sign-in.

2. Provides multiple social login options.

3. Clearly lists the benefits of becoming a registered user.

4. Specifically states the data points being collected, and doesn’t ask for too much information at once.

5. Lets users know upfront that their data is protected.

6. Incorporates custom opt-in fields.

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Account Linking and SSOGiving users options when it comes to registration and login makes it necessary to choose a registration software that is able to automatically link multiple user accounts to a single profile.

Single sign-on (SSO) is another tactic to facilitate a single customer view while providing a streamlined user experience. As web-based services and applications multiply, SSO allows users to move seamlessly across properties by tying all activity to a single, known username and password or social identity.

SSO can also be used to create frictionless identity verification between separate yet affiliated systems - for example, between websites and customer service providers like Zendesk or a TV network and cable provider.

Managing Customer Identity DataIdentity ImplicationsMaking the decision to embark on the quest for a single customer view and focus on identity has many implications for your business from both a technical and operational standpoint.

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Many businesses fail when it comes to achieving the “holy grail” because their customer data management system is out of date, and marketing and IT execs are out of sync when it comes to implementing the infrastructure needed to support modern marketing goals.

Not All Data Is Created EqualWith such a huge volume of identity data from such a wide variety of sources, capturing and storing customer data in an accurate and organized manner can be a nightmare.

80% of the world’s data is unstructured, meaning that it cannot be efficiently stored in a predefined manner, and comes from sources like social networks, text messages and videos. In contrast, “structured data” refers to information that fits neatly into pre-defined database fields, like name, email address and zip code.

Legacy databases were not built to reconcile both structured and unstructured data, but without a clear and aggregate understanding of both data types, achieving a single customer view is impossible.

Calling All Data TypesBusinesses cite the inability to automate structured and unstructured data quickly and effectively among their biggest challenges, with 60% noting that big data projects typically take at least 18 months to complete (Kapow Software).

CIO + CMO = ROI

70% of top performing companies say they have a strong CIO - CMO relationship, compared to just 45% of non-top performers (PwC).

Structured Data Unstructured Data

Name Email address Zip Code Birthday Gender Credit card number

Connections and relationships Emails or text messages Social network shares Favorite brands Video Audio

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To get the single, real-time view of cross-channel customer identity data needed to make timely marketing decisions and build relevant user experiences, marketing and IT must collaborate to choose a dynamic schema customer identity management database.

This database should automatically collect and reconcile all types of data in real-time, including demographic, social, behavioral and transactional. This data must be stored in an organized manner that enables your business to conduct real-time analysis and make data-driven decisions quickly.

Security and ComplianceIn your quest to establish a single, identity-centric view of your customers, it’s important to prioritize data security and privacy compliance.

Data is every company’s biggest asset, and when your customers entrust you with their information, it’s your responsibility to protect it. Security must be a core feature of your customer database - not bolted on as threats emerge. Go beyond security protocols and look for a database that is inherently fortified and certified by industry recognized standards such as ISO 27001.

When it comes to managing customer identities and data from today’s multitude of networks and applications, your business must adhere to the privacy policies created by countless lawmakers and third-party identity providers. Choosing a solution with the ability to automatically manage these privacy updates in real-time is the key to staying compliant and maintaining customer trust.

40% of CMOs believe their companies’ IT teams don’t understand the urgency of integrating new data sources into campaigns to address market

conditions, while 43% of CIOs say that marketing requirements and priorities change too often for them to keep up (CMO.com).

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Integrating and Applying Data Across Marketing CampaignsFrom Storage to ActionWhile adopting a database with the ability to store all customer identity data in a single place is a huge organizational milestone, this still doesn’t necessarily mean your business has a single customer view.

To achieve this elusive “holy grail,” your database must be configured in a way that enables marketers and other non-technical decision makers to take action on the goldmine of data housed inside.

Break Down Data SilosAccording to a recent survey, 96% of marketers say that fully integrated marketing technology would have a positive, strong or very strong effect on their marketing goals. However, only 4% of respondents claim that their marketing tools are fully integrated (Signal)!

A modern customer identity database should not only aggregate data across multiple sources; it should also be able to seamlessly share this data with your existing third-party marketing platforms and business systems.

Direct integrations and automatic, bi-directional data syncs between recommendation engines, CRM solutions, ad platforms, email marketing systems and more turn your database into a single source of customer truth, regardless of channel or device.

93% of executives believe their organization is losing an average of 14% of annual revenue without the ability to act on the customer data they collect (Oracle).

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Integration in ActionDelivering customers with relevance at each touch point throughout the customer journey is the linchpin of creating direct customer relationships and lifetime loyalty. Consider the following simple yet powerful example:

A customer logs into an ecommerce site using her Facebook account. After browsing for a few minutes, she shares two dresses with her Facebook network. She adds one to her cart, but abandons the purchase mid-checkout.

To combat this, a site with a fully integrated marketing strategy could then email her a coupon for 25% off the dress of her choice, re-target her with ads for women’s clothing and accessories on Facebook, and greet her with a personalized showcase of items matching her desired dress the next time she logs in.

If that’s not a personal, Starbucks-esque experience, then what is?

Data → InsightsOne critical and often overlooked hurdle to achieving a single customer view is the inability of non-technical business leaders to independently analyze end-user data. In fact, a recent Aberdeen study found that less than ¼ of the information that companies control is even available for extracting insights (WSJ).

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Collaborate with IT to ensure that the key stakeholders in the marketing organization have the ability to analyze customer identity data via an easily accessible dashboard, giving them the power to make strategic, data-driven marketing decisions anytime, anywhere.

This dashboard should allow marketers to run complex queries, build custom filters and audience segments with no code required, and save and export reports. Not only does this save valuable IT time and resources, but it also provides those on the frontlines of the business with the ability to effectively harness the economic value of customer data.

The Holy GrailWhat a Single Customer View Can DoBy enabling all business leaders to analyze, understand and take action on customer identity data, you’ve done it — you have achieved a single customer view!

The opportunities this “holy grail” presents to optimize your user experiences are virtually endless. Let’s take a look at how some of today’s leading brands are using customer knowledge to win business, build relationships and drive loyalty.

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Email MarketingWhen fans login socially to Hunter Hayes’ website, they are asked to provide their birthdays. This information is stored and passed to an email marketing platform that automatically dispatches birthday emails to fans on their special days, offering a celebratory birthday discount.

Targeted AdvertisingBy prompting users to sign in to the Winter Olympic Games community platform and the Canadian Olympic Team site using Gigya’s Social Login, the Canadian Olympic Committee is able to gain permission-based access to specific demographic and psychographic information housed within their social profiles.

Happy Birthday! I hope you are getting a little “crazy” on your special day!

To kick off your celebration, enjoy 15% off the next time you shop in Hunter’s online store - just enter

the code Z6LQKOKIHWDW at checkout.

Have a great one! - HH Road Guy

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Using Gigya’s Customer Insights dashboard to analyze fans’ permission- based data, the Canadian Olympic Committee discovered that users logging in via Facebook to the Winter Olympic Games community platform share similar demographic profiles, as well as interests in Canadian hockey teams, TV shows like The Big Bang Theory and Ellen Degeneres and particular gaming apps.

These types of insights are used to build custom and look-alike audience segments to reach users with similar profiles who are most likely to convert across Facebook and Twitter, increasing Facebook ad conversion rates by 106% and decreasing campaign costs by 51%!

Personalized RecommendationsCulinary king McCormick establishes user identity by giving site visitors the option to log in traditionally or socially. It is then able to tie all on-site activity, including social shares, recipe and spice favorites and shopping list items to a single user profile to help build out a user’s unique “Flavor Print,” or taste profile. It then uses this information to recommend additional recipes she may like.

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Driving Valuable BehaviorsTo foster member loyalty while increasing new fitness club sign-ups, 24 Hour Fitness optimized its referral process by allowing members to share unique guest passes with their friends via email or a variety of social networks.

24 Hour Fitness is then able to segment these referred members based on their responsiveness to send tailored emails that nurture them through the sign-up process.

As customers refer their friends, 24 Hour Fitness uses Gigya’s influencer reporting to rank its top advocates. The fitness club then rewards these influencers with customized rewards packages, promoting brand loyalty and future referrals. This program led to more than 8,400 new direct referrals and lifetime value revenue of more than $600k in just one month.

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Cross-Channel CommerceTo turn unknown shoppers into known customers during the holiday season, DICK’S Sporting Goods created a highly relevant, cross-channel shopping experience by letting consumers log into and manage their own personal “Gift Lockers” from any device.

Consumers could add their favorite items to their lockers by browsing online, taking mobile photos of items in store or scanning catalogue QR codes, as well as share these lockers directly with their social networks.

“DICK’S Sporting Goods saw an increase in online sales during the holiday season by incorporating Gigya’s Social Login and Share software into our Gift Locker experience. Allowing users to sign-in and share socially across

devices has been instrumental in driving customer acquisition and retention.”

— Jay Basnight, Director of Digital @ DICK’S Sporting Goods

© 2015 Gigya Incorporated. All rights reserved. | 2513 Charleston Road #200, Mountain View, CA 94043 | T : (650) 353.5592 | www.gigya.com

Gigya, the Gigya logo, and Customer Identity Management Platform are either registered trademarks or trademarks of Gigya Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners. Gigya does not own any end user data or maintain any other rights to this data, other than utilizing it to make Gigya’s services available to our clients and their end users. Gigya acts as an agent or back-end vendor of its client’s website or mobile application, to which the end user of our client granted permissions (if applicable). Gigya facilitates the collection, transfer and storage of end user data solely on behalf of its clients and at its clients’ direction. For more information, please see Gigya’s Privacy Policy, available at http://www.gigya.com/privacy-policy/. Rev: Single_Customer_View_White_Paper_0415

The Trusted Platform for Identity-Driven Relationships

About GigyaGigya’s Customer Identity Management Platform helps companies build better customer relationships by turning unknown visitors into known, loy-al and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better service, products and experi-ences by integrating data into marketing and service applications.

Gigya’s platform was designed from the ground up for social identities, mobile devices, consumer privacy and modern marketing. Gigya provides developers with the APIs they need to easily build and maintain secure and scalable registration, authentication, profile management, data analyt-ics and third-party integrations.

More than 700 of the world’s leading businesses such as Fox, Forbes, and Verizon rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management.

To learn how Gigya can help your business achieve a single customer view, visit gigya.com, or call us at 650.353.7230.