IBM Technoloogy Day 2013 - Smarter Commerce
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Transcript of IBM Technoloogy Day 2013 - Smarter Commerce
© 2013 IBM Corporation© 2013 IBM Corporation
Smarter CommerceRedefining Business in the Age of the Customer Marcel Kuster / Frederic Milnet
© 2013 IBM Corporation© 2013 IBM Corporation2
Agenda
• The empowered customer and the vision of
Smarter Commerce
• Smarter Commerce and what it means to the Chief Marketing Officer
• Capabilities required for Next Generation Marketing
• Demo: Customer Experience Analytics in Action (IBM Tealeaf)
© 2013 IBM Corporation© 2013 IBM Corporation3
Today’s “empowered customer” puts businesses to the test
44% of companies
use crowd
sourcing from
customers
4 in 10Smart phone
users search for
an item in a store
86%use multiple
channels
4-5xmore than
average is
spent by multi-
channel buyers
61%trust friends’
reviews more
than experts’
78%of consumers
trust peer
recommendations
58%are more price-
conscious today
than they were a
year ago
75%do not
believe
companies
tell the truth
in ads
80%of CEOs think
they deliver a
superior
customer
experience
8%of their
customers
agree
© 2013 IBM Corporation© 2013 IBM Corporation4
Buy
Adaptive
procurement
and optimized
supply chain
Market
Targeted and
personalized
marketing
across all
channels
ServiceAnticipate
behavior and
deliver flawless
customer
service
Sell
Seamless
cross-channel
customer
experience
MarketBuy
Service Sell
At IBM, we call the path forward Smarter Commerce placing the customer at the center of your business
© 2013 IBM Corporation© 2013 IBM Corporation5
Targeted and personalized marketing across all channels
Market
© 2013 IBM Corporation© 2013 IBM Corporation6
Seamless cross-channel customer experience
Sell
© 2013 IBM Corporation© 2013 IBM Corporation7
Anticipate behavior and deliver flawless customer service
A customer enters the shop
The shop detects the customer The customer is
recognized as a VIP
The shop asks the customer if he/she wishes to interact
Customer agrees to interact with shop
The shop informs the shop assistant that a
VIP has arrived
The shop assistant is informed of customer’s needs and decisions
All devices in shop are alerted that a specific customer is willing to interact and allow personalized interactions
Service
© 2013 IBM Corporation© 2013 IBM Corporation8
Adaptive procurement and optimized supply chain
Buy
© 2013 IBM Corporation© 2013 IBM Corporation9
Smarter Commerce: Focus of today
Procurement/Sourcing/Supply Chain Management
Customer Service and Interaction/Case Management
Cross Channel Selling/Order Management & Fulfillment
Buy
Customer Awareness & Analytics/Cross Channel Marketing
Marketing Performance
Optimization
Customer Shopping Insight
Price / Promotion
Optimization
Cross Channel
Campaign Management
Digital Marketing
Optimization
Marketing
Integration & Optimization
Cross Channel Consumer Insight
Real-time
Marketing
Customer Analytics &
Segmentation
Interaction History & Attribution
Web & Social
Analytics
Customer Experience
Management
Service Sell
© 2013 IBM Corporation© 2013 IBM Corporation10
Agenda
• The empowered customer and the vision of Smarter Commerce
• Smarter Commerce and what it means to
the Chief Marketing Officer
• Capabilities required for Next Generation Marketing
• Demo: Customer Experience Analytics in Action (IBM Tealeaf)
© 2013 IBM Corporation© 2013 IBM Corporation11
The majority of CMOs are underprepared for the factors that will impact the marketing of the future
“From Stretched to Strengthened; Insights from the Global Chief Marketing Study”www.ibm.com/cmostudy
© 2013 IBM Corporation© 2013 IBM Corporation12
How the job of the CMO will change:The 3 imperatives for a new profession
Designing your culture and brand so they are authentically one.
Creating a system of engagement that maximizes value creation at every touch.
Understanding each customer as an individual.
© 2013 IBM Corporation© 2013 IBM Corporation13
Customer browses ING webpages for a savings product …
Customer browses ING webpages for a savings product …
… but does not
continue the process
… but does not
continue the process
Collecting information on individual web behaviour
© 2013 IBM Corporation© 2013 IBM Corporation14
Customer leaves the bank website and browses the newspaper pages.
An ING savings ad shows up, targeted at this individual
customer.
The customer clicks on the advertisement
Customer leaves the bank website and browses the newspaper pages.
An ING savings ad shows up, targeted at this individual
customer.
The customer clicks on the advertisement
Re-targeting based on web behaviour insights
© 2013 IBM Corporation© 2013 IBM Corporation15
The customer starts filling out the application form
The customer starts filling out the application form
… but then abandons the process
… but then abandons the process
And returns to the ING webpages
And returns to the ING webpages
Monitoring the user experience on the web
© 2013 IBM Corporation© 2013 IBM Corporation16
A call center service representative calls the customer the day after and offers to print out the application document and send it over (remarketing)
The customer agrees and completes the application
A call center service representative calls the customer the day after and offers to print out the application document and send it over (remarketing)
The customer agrees and completes the application
Using the customer behaviour insights in other channels to support the client (Re-Marketing)
© 2013 IBM Corporation© 2013 IBM Corporation17
The customer receives the monthly newsletter
The customer receives the monthly newsletter
The newsletter is personalized and starts with a topic on savings accounts …
The newsletter is personalized and starts with a topic on savings accounts …
… and a call to action to transfer funds
… and a call to action to transfer funds
A few weeks later, the customer still hasn’t transferred funds
A few weeks later, the customer still hasn’t transferred funds
Usage stimulation in the Email channel...
© 2013 IBM Corporation© 2013 IBM Corporation18
A personalized message is shown in the service box, urging the customer to transfer funds.The customer decides to transfers funds and does this with a few clicks
A personalized message is shown in the service box, urging the customer to transfer funds.The customer decides to transfers funds and does this with a few clicks
… the customer goes to the secure part of the website
… the customer goes to the secure part of the website
A few days later …A few days later …
...in the internet banking channel...
Impact: banners that are triggered based on behavior of a customer have up to 10x higher CTR
Impact: banners that are triggered based on behavior of a customer have up to 10x higher CTR
© 2013 IBM Corporation© 2013 IBM Corporation19
A personalized offer pops –special bonus points for when the customer deposits more money.
A personalized offer pops –special bonus points for when the customer deposits more money.
A month later, there has been no further transfers of funds.The customer uses the mobile app to make a payment
A month later, there has been no further transfers of funds.The customer uses the mobile app to make a payment
...in the Mobile App...
© 2013 IBM Corporation© 2013 IBM Corporation20
ING posts a personalized offer for this customer: the ‘bonus point’offer
ING posts a personalized offer for this customer: the ‘bonus point’offer
The customer has liked the ING page on facebook
The customer has liked the ING page on facebook
...and in the Social Media channel
© 2013 IBM Corporation© 2013 IBM Corporation21
On the next day, the customer visits a branch.A warning message shows up on the branch screen – the agent offers a increased savings rate and secures the customer
On the next day, the customer visits a branch.A warning message shows up on the branch screen – the agent offers a increased savings rate and secures the customer
A while later, the customer visits the website and looks at INGs interest % on the savings accounts.Short after, the customer starts to withdraws funds from the savings account.
A while later, the customer visits the website and looks at INGs interest % on the savings accounts.Short after, the customer starts to withdraws funds from the savings account.
Customer retention in the branch
© 2013 IBM Corporation© 2013 IBM Corporation22
Underlying principles: A single marketing engine, providing offers across all channels
22
Internet
Open
homepage
Open
productpages
Secure
homepage
Open
Logoff page
Secure
landingpagesCall outbound
Branches
Call inbound
Sept 2012Mail ATM
Inb
ou
nd
Ou
tbo
und
Banners at
non-ING domains
Fase 4 ?
New
in phase 4
Sales Force
© 2013 IBM Corporation© 2013 IBM Corporation23
Agenda
• The empowered customer and the vision of Smarter Commerce
• Smarter Commerce and what it means to the Chief Marketing Officer
• Capabilities required for Next Generation
Marketing
• Demo: Customer Experience Analytics in Action (IBM Tealeaf)
© 2013 IBM Corporation© 2013 IBM Corporation24
Marketers must integrate all aspects of marketing
Earned
media
PR
Owned
media
Price, promotion,
product mix
ad
ad
© 2013 IBM Corporation© 2013 IBM Corporation25
complete
UNDERSTANDING
of each customer
1
What makes this hard?
Earned
media
PR
Owned
media
Price, promotion,
product mix
ad
ad
Most marketers lack:
© 2013 IBM Corporation© 2013 IBM Corporation26
complete
UNDERSTANDING
of each customer
1
What makes this hard?
Earned
media
PR
Owned
media
Price, promotion,
product mix
ad
ad
Most marketers lack:
platform
to take
coordinated
ACTION
2
© 2013 IBM Corporation© 2013 IBM Corporation27
IBM Enterprise Marketing Management (EMM) provides a comprehensive suite that improves and integrates five critical processes of marketing
Managebudgets and processes
and measure results
Decideon the best action or communication
Deliverengaging messages and capture reactions
Collectdata that augments
each customer profile
Analyzedata to find
actionable insights
© 2013 IBM Corporation© 2013 IBM Corporation28
The IBM solutions are helping marketing organizations achieve a spectrum of business outcomes
Improved customer value, loyalty and retention
5-15% increase is typical
Higher online marketing ROI
15x-25x increase is typical
Higher campaign ROI
15-30% increase is typical
Increased response rates
10-50% increase is typical
More campaigns with the same resources
2-5x increase is typical
Reduced cycle time for marketing efforts
40-80% reduction is typical
Reduced marketing costs
20-40% reduction is typical
Lower customer acquisition costs
25-75% reduction is typical
More relevant
and effectivemarketing
More efficient
marketing
© 2013 IBM Corporation© 2013 IBM Corporation29
FOR WHO NEED TO IBM PROVIDES
Digital Marketing Optimization
Digital marketers
Orchestrate relevant digital interactions to attract and retain new visitors and grow revenue throughout
the customer's lifecycle
Marketing Performance Optimization
Marketing leaders and planners
Model and assess mix, and manage marketing operations to maximize ROI
Merchandising and sales planners
Price, Promotion, and Product Mix Optimization
Make price, promotion and product mix decisions that maximize
profit and inventory utilization
Customer Experience Management
eCommerce / Online
professionals
Turn visitors into repeat customers and loyal advocates by improving the digital experience of every customer
Cross-Channel Marketing Optimization
Customer relationship marketers
Engage customers in a one-to-one dialogue across channels to grow
revenue throughout the customer's lifecycle
IBM EMM flexibly addresses the needs of specific user groups
© 2013 IBM Corporation© 2013 IBM Corporation30
Agenda
• The empowered customer and the vision of Smarter Commerce
• Smarter Commerce and what it means to the Chief Marketing Officer
• Capabilities required for Next Generation Marketing
• Demo: Customer Experience Analytics in
Action (IBM Tealeaf)
© 2013 IBM Corporation© 2013 IBM Corporation31
Customer Experience Analytics
92:1
Companies typically spend $92 to bring customers to their digital
ecosystem
But only $1 to convert them.
© 2013 IBM Corporation© 2013 IBM Corporation32
The single most common question executives ask about their online channels is
“Why don’t more shoppers complete purchase transactions?”
“Why don’t more customers use our less expensive online help?“
“Why don’t readers click more deeply into our web site?”
“Why?”
Why Tealeaf?
© 2013 IBM Corporation© 2013 IBM Corporation33
DEMO
© 2013 IBM Corporation© 2013 IBM Corporation34
Common Tealeaf Use Cases:
• Provide more proactive and informed service with visibility into the customer’s session history.
• Improve customer loyalty.
• Convert a cost center team into a profit center team.
Cross-sell / Up-sell
Customer Service
• Increase first call resolution rates.
• Decrease unnecessary escalations.
• Improve customer satisfaction.
• Effectively resolve customer disputes.
• Create feedback loop with IT/Dev via Tealeaf’s common language.
Issue Resolution & Support
• Find & fix problems more efficiently ~ 60% time reduction on average.
• Prioritize issues for resolution based on business impact.
• Improve site success rates by eliminating site obstacles.
• Conduct fraud forensics.
IT/Development
Problem Identification & Resolution
eBusiness
Improve Conversion Rates
• Analyze customer behavior to remove the obstacles preventing transactions.
• Deflect costs from higher-cost channels (i.e., call center, branch, etc.)
© 2013 IBM Corporation© 2013 IBM Corporation35
Payback in less than 3 Months� Results Synthesized from 4 Customers:
– Online Travel Agent
– Leading Online Clothing, Shoes Retailer
– Retailer of Automotive Accessories
– Another Online Travel Agent
Three-Year Risk Adjusted Results
ROI: 512%
Payback Period: 2.6 months
Total Net Present Value: $7,633,214
Source: A commissioned study by Forrester Consulting, “The Total Economic Impact of Tealeaf’s Customer Behavior Analysis Suite.” July 2010
Benefits Quantified in Study
Increased Conversion Rate 3.5%
Increased Average Order Value 0.5%
Improved Retention Rate 1%
Reduced Problem Resolution Time 60%
Reduced Incidents (Project Avoidance) 10%
Reduced Disputed/Fraudulent Chargebacks 0.05%
Summary: 3-Year Risk-Adjusted ROI
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Initial Year 1 Year 2 Year 3
Reduction in chargeback transactions
Reduction in IT costs for project avoidance
Reduction in IT costs for problem resolution
Incremental revenue from improved retention rate
Incremental revenue from increased order value
Incremental revenue from increased conversion
Total yearly costs for Tealeaf
© 2013 IBM Corporation© 2013 IBM Corporation36
Empowering Customers across all Verticals
© 2013 IBM Corporation© 2013 IBM Corporation37
Tealeaf Usability
Click Heat MapDiscover where your visitors click on a page including forms, links, images and text so you can optimize your visitor’s experience.
Attention MapKnow where your users are spending most of their time for a given page not just how far they scrolled a page.
Form Field AnalyticsOptimize each form increasing conversion rates and understand how page and form conversion rates compare, how long each field takes to complete and where users go after completing.
Link AnalyticsImprove conversion and engagement by identifying links that are clicked on more often. See how relative link placement can affect your online goals
© 2013 IBM Corporation© 2013 IBM Corporation38
http://www.ibmconnectedcustomer.com/de
Marcel Kuster
Smarter Commerce Leader Switzerland
IBM Switzerland Ltd.Vulkanstrasse 106P.O. BoxCH-8010 Zurich
Mobile +41 79 600 26 [email protected]
Frédéric Milnet
Smarter Commerce Seller Romandie
IBM Switzerland Ltd.Chemin de Blandonnet,8CH-1214 Vernier
Mobile +41 79 194 51 [email protected]