UNIFYING THE CUSTOMER EXPERIENCE WITH DATA-DRIVEN ... · Delivering On All Five Market Imperatives...
Transcript of UNIFYING THE CUSTOMER EXPERIENCE WITH DATA-DRIVEN ... · Delivering On All Five Market Imperatives...
PROPRIETARY AND CONFIDENTIAL
U N I F Y I N G T H E
C U S T O M E R E X P E R I E N C E W I T H
D A T A - D R I V E N P E R S O N A L I Z A T I O N
T U E S D A Y , N O V E M B E R 1 5 , 2 0 1 6
Brendan WitcherPrincipal Analyst
Kurt HeinemannCMO
W E B I N A R
© 2016 Forrester Research, Inc. Reproduction Prohibited 3
Empowered customers have given rise to the age of the customer
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
• Comcast
• Capital One
Age of the customer
Empowered buyers
demand a new level of
customer obsession
• Macy’s
• Salesforce.com
• USAA
• Amazon
© 2016 Forrester Research, Inc. Reproduction Prohibited 4
Delivering On All Five Market Imperatives Is The Key To Success In The Age Of The Customer
Drive business
growth with privacy
Turn big data into business insights
Embrace the
mobile mind shift
Accelerate your
digital business
Transform the
customer experience
Age of the customer
© 2016 Forrester Research, Inc. Reproduction Prohibited 5
US retail sales
($ 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
Web-influenced
offline sales
Offline sales
Source: Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (US)
In 2016, 49% of all US retail sales will either be influenced by or occur online
$3.4T
Web-impacted sales CAGR 2015-2020:
6.6%
© 2016 Forrester Research, Inc. Reproduction Prohibited 6
Each time a customer is exposed to an improved shopping experience, their
shopping expectations are reset to a new higher level.
© 2016 Forrester Research, Inc. Reproduction Prohibited 7
Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience Is A Significant Factor In Every Shopper’s Journey
68%“I am unlikely to return to a
website that does not
provide a satisfactory
customer experience.”
© 2016 Forrester Research, Inc. Reproduction Prohibited 8
Source: Forrester’s North American Consumer Technographics
Brand Compass Survey, Q3 ‘15
Source: Forrester's Q2 ‘16 Global eBusiness And Channel
Strategy Professional Online Survey
77%of consumers have chosen, recommended, or
paid more for a brand that provides a
personalized service or experience.
89%of eBusiness and channel strategy professionals
plan to invest in personalizing the customer
experience in 2016/2017.
Personalization is being prioritized due to its impact on customer experience
© 2016 Forrester Research, Inc. Reproduction Prohibited 9
of consumers prefer to do business with brands that use
their information to make experiences more efficient.
73%
© 2016 Forrester Research, Inc. Reproduction Prohibited 10
Personalization is a Top eBusiness priority
Base 196 eBusiness And Channel Strategy Professionals
Source: Forrester’s Q3 2015 Global eBusiness And Channel Strategy Professional Online Survey
“Of the tech you will be investing in during 2016, please identify your top priorities?”
1. Responsive Web Design
2. Personalization Technology
3. Customer Relationship Management Tools
4. Mobile App and Engagement Platform
5. Product Recommendations
6. eCommerce Platform
7. Site, Payment, System Security Compliance/Protection
8. Big Data
9. Site Search
10. Customer Insights and Analytics Tools
© 2016 Forrester Research, Inc. Reproduction Prohibited 11
75%
55%49%
44%
32%28%
Content on the
website
Promotions/product
offers
Product
recommendations
Reminders and
alerts
Content on the
mobile app
experience
Screen layout
What parts of the experience are you personalizing? (click all that apply)
Online personalization is often focused on specific site modules
© 2016 Forrester Research, Inc. Reproduction Prohibited 12
26%
33%
34%
44%
51%
54%
54%
59%
72%
0% 20% 40% 60% 80%
Making the store easy to browse for customers
Ensuring that we always have competitive prices
Providing self service technologies for shoppers
Improving the knowledge of associates
Making it convenient to purchase (short checkout lines, …
Ensuring that we always have the products customers want
Making it easy for customers to find the products they are …
Making the store more engaging
Personalizing the customer experience
For your organization / company, what are the main opportunities for improving the customer experience at your company's stores? (Please choose your top 5 only.)
Source: Base: 61 eBusiness and Channel Strategy professionals Source: Forrester's Q2 2016 Global eBusiness And Channel Strategy Professional Online Survey
In an omnichannel world, in-store personalization also ranks top of the list
© 2016 Forrester Research, Inc. Reproduction Prohibited 13
Leading retailers are recognizing the gap that basic segmentation creates for
personalizing customer experiences
© 2016 Forrester Research, Inc. Reproduction Prohibited 14
Other Products
Me
Product
Product Segmentation
Personalization has historically been driven by segmentation
© 2016 Forrester Research, Inc. Reproduction Prohibited 15
Other Products
Personalization has historically been driven by segmentation
Me
Product
Product Segmentation
Personalization based on segmentation
provides the “wrong” experience for most of
your customers.
© 2016 Forrester Research, Inc. Reproduction Prohibited 17
Intent
Outcomes
Unit of analysis
Area of focus
What is affected
The definition of personalization is evolving
Customization Personalization Individualization
Tailor products to use
Improved productivity,
improved usability
None (everyone)
Application interface
Functionality
Drive desirable actions
and behaviors
Higher response /
conversion rates,
increased sales, increased retention
Segments or cohorts
Customer life cycle
Offers, recommendations,
marketing messages
Improve customer
experience
Higher customer
satisfaction, increased
relevance, reduced customer effort
Individuals
Customer experience
Functionality, core
content, user interaction
› See the Forrester report “Personalization And The Rise Of Individualized Experiences”
© 2016 Forrester Research, Inc. Reproduction Prohibited 18
eBusiness leaders must
help organizations prepare
for the next evolution of
personalization,which will rely more on
data-driven individualization
rather than models of
segmentation.
© 2016 Forrester Research, Inc. Reproduction Prohibited 19
it is a business strategy that drives tactics and impacts every part of an organization
Individualization is not a tactic…
Security & 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.
© 2016 Forrester Research, Inc. Reproduction Prohibited 20
Rule: You can only truly personalize experiences for consumers you recognize
© 2016 Forrester Research, Inc. Reproduction Prohibited 21
Increased digitization of experiences gives eBusiness Professionals access to an abundance of customer data
Profile Sentiment
Affinity Behaviors
Attitudes Content
Context
IdentityAccounts/IDs
Tech ownership/use
DemographicsPreferencesDisposition
Memberships/networksAffiliations
FeedbackRatings/opinions
InteractionsTransactions
Marketing responses
Testing responses
Time/locationEnvironment
Situation
Journey/activity
Social mediaApplications
Files
Public records
© 2016 Forrester Research, Inc. Reproduction Prohibited 22
Predictive analytics power determines success for creating relevant customer experiences
Old
© 2016 Forrester Research, Inc. Reproduction Prohibited 23
Predictive analytics power determines success for creating relevant customer experiences
Old New
© 2016 Forrester Research, Inc. Reproduction Prohibited 24
Today’s omnichannel consumers expectbrands to understand them…
© 2016 Forrester Research, Inc. Reproduction Prohibited 25
Be careful to understand and respect personal boundaries
© 2016 Forrester Research, Inc. Reproduction Prohibited 26
Proceed with caution: be overt about collecting data, but covert about
communicating what you know about the customer.
© 2016 Forrester Research, Inc. Reproduction Prohibited 27
Email is a simple way to consistently identify customers…
© 2016 Forrester Research, Inc. Reproduction Prohibited 28
…But Customers Must Receive Value In Exchange For Their Personal Information
Customer
Data
Shopping
Value
© 2016 Forrester Research, Inc. Reproduction Prohibited 29
The North Face learns the “why” of customers shopping instead of the “what”
Online…
© 2016 Forrester Research, Inc. Reproduction Prohibited 30
Acustom Apparel focuses on personalized design for each customer
In-store…
© 2016 Forrester Research, Inc. Reproduction Prohibited 31
Neiman Marcus utilizes app engagement to personalize customer experiences
And even on apps.
© 2016 Forrester Research, Inc. Reproduction Prohibited 33
Sephora prioritizes understanding customers through digital engagement…
© 2016 Forrester Research, Inc. Reproduction Prohibited 34
…encourages self-identification by providing personal experiences offline…
© 2016 Forrester Research, Inc. Reproduction Prohibited 35
…and online, allowing them to better understand customers across all channels.
© 2016 Forrester Research, Inc. Reproduction Prohibited 36
Systems of engagement are the tip of the spear…
Systems ofengagement
touch people
Systems
of automation
and IoT connect
the physical world
Systems ofrecord host
processes
Systems of insight power
digital business
© 2016 Forrester Research, Inc. Reproduction Prohibited 37
But systems of insights power better engagement
Systems ofengagement
touch people
Systems
of automation
and IoT connect
the physical world
Systems ofrecord host
processes
Systems of insight power
digital business
© 2016 Forrester Research, Inc. Reproduction Prohibited 38
Systems of insights often require the connection of a number of solutions
• Customer profiles & segmentation
• Customer preference management
• Cross-channel identity resolution
• Behavioralanalytics
• Customer journey mapping
• Web analytics and tag management
• Predictive analytics
• Self-learning algorithms
• Recommenda-tion engines
• Business rules management
• Mobile and location analytics
• Real-time content assembly
• Personalized, individualized delivery
• Online testing
• Reports and dashboards
• Offer and strategy optimization
• Attribution
Recognition
Context
Offer
Orchestration
Optimization
© 2016 Forrester Research, Inc. Reproduction Prohibited 39
All possible data All possible actions
Most firms don’t consistently turn data into action
Source: Forrester Business Technographics®, Data & Analytics Survey, 2015
73% 29%of firms
aspire to be
data-driven
of firms are good
at turning data
into action
© 2016 Forrester Research, Inc. Reproduction Prohibited 40
Organizations today must have robust tools on both sides of a customer experience strategy
© 2016 Forrester Research, Inc. Reproduction Prohibited 41
Ways for organizations to use systems of engagement to drive individualization
Reprioritized interactions
proactively reshaping experience functionality
to better fit customer behaviors and needs
Systematized guidance
combining customer data with expert systems and other data to provide intelligent services
Curated content
eliminating or prioritizing core content to improve discovery and relevance
Tailored suggestions
targeting marketing recommendations, offers and messages to increase engagement and conversion
© 2016 Forrester Research, Inc. Reproduction Prohibited 42
Lowe’s displays product availability and functions based on a customer’s store
© 2016 Forrester Research, Inc. Reproduction Prohibited 43
Ways for organizations to systems of engagement to drive individualization
Reprioritized interactions
proactively reshaping experience functionality
to better fit customer behaviors and needs
Systematized guidance
combining customer data with expert systems and other data to provide intelligent services
Curated content
eliminating or prioritizing core content to improve discovery and relevance
Tailored suggestions
targeting marketing recommendations, offers and messages to increase engagement and conversion
© 2016 Forrester Research, Inc. Reproduction Prohibited 44
JetBlue reprioritizes app functionality to show boarding passes close to a flight time
© 2016 Forrester Research, Inc. Reproduction Prohibited 45
Ways for organizations to use systems of engagement to drive individualization
Reprioritized interactions
proactively reshaping experience functionality
to better fit customer behaviors and needs
Systematized guidance
combining customer data with expert systems and other data to provide intelligent services
Curated content
eliminating or prioritizing core content to improve discovery and relevance
Tailored suggestions
targeting marketing recommendations, offers and messages to increase engagement and conversion
© 2016 Forrester Research, Inc. Reproduction Prohibited 46
True & Co learns from every returned item to fine tune each customer’s individual store
© 2016 Forrester Research, Inc. Reproduction Prohibited 47
Ways for organizations to use systems of engagement to drive individualization
Reprioritized interactions
proactively reshaping experience functionality
to better fit customer behaviors and needs
Systematized guidance
combining customer data with expert systems and other data to provide intelligent services
Curated content
eliminating or prioritizing core content to improve discovery and relevance
Tailored suggestions
targeting marketing recommendations, offers and messages to increase engagement and conversion
© 2016 Forrester Research, Inc. Reproduction Prohibited 48
Nordstrom and Shoes of Prey help customers find the perfect product through interaction
© 2016 Forrester Research, Inc. Reproduction Prohibited 49
Metrics, Metrics, Metrics: It is important to be able to measure success
Source: April 16, 2015, “Get Customer-Obsessed With Your Content Marketing Processes” Forrester report
Customers expect more from the brands they engage with than ever before. How do brands meet these expectations, what is in it for them and how do we get there?
W H A T A R E W E T A L K I N G A B O U T
PROPRIETARY AND CONFIDENTIAL
ECOMMERCE BRICKAND MORTAR
SOCIAL CALLCENTER
MOBILE
HOW BRANDS SEE THEIR ENGAGEMENT POINTS
PROPRIETARY AND CONFIDENTIAL
TODAY’S CONSUMER
DIGITALLYSAVVY
HAS ELEVATED EXPECTATIONS
OF BRANDS
CONSTANTLY CONNECTED /
INFORMATION AT THEIR FINGERTIPS
IMMEDIATE GRATIFICATION /
NO PATIENCE
ME, ME,ME
PROPRIETARY AND CONFIDENTIAL
BRAND BARRIERS
Legacy systems
(ecommerce platform, ESP,
DSP,…)
Siloed business functions(Digital
Commerce, Stores,
Marketing)
Disparate point solution
implementations
Limited and fragmented
understanding of customer
journey
1 2 3 4
PROPRIETARY AND CONFIDENTIAL
• Unifying data at a segment or averaged level is of no use
• Need to understand each individual customer
• An averaged customer journey is no one’s journey
AVERAGED VS INDIVIDUAL
PROPRIETARY AND CONFIDENTIAL
• Referring URL
• Time of day visited
• Device/OS
• Location when visiting
• Time on site
• Items viewed/clicked on
• Items searched for
• Attributes of all items viewed
• Items added to cart
• Items purchased> Location
> Time of Day
• Where they last visited prior
• Time of day visited
• Device/OS
• Location when visiting
• Time in store
• Items viewed/tried on
• Items searched for
• Attributes of all items viewed
• Items added to cart
• Items purchased> Location
> Time of Day
BRICK AND MORTAR
WEB / APP
DATA POINT CONT RAST
PROPRIETARY AND CONFIDENTIAL
ARE YOU MAXIMIZ ING ECOMMERCE DATA?
Are you capturing
robust 1st party data
and associating it with
an individual record?
• Visit history
• Products viewed
• Products purchased
Does your website
respond to this
data and customer
intelligence?
• Preferences
• Intent
Can you leverage
more than just
in the moment
but also a historical
perspective?
PROPRIETARY AND CONFIDENTIAL
LOYALTY / MEMBERSHIP
CARDSAPPS
INDIVIDUAL COUPONING
W HAT ARE YOUR BRICK AND MORTAR DATA CAPT URE OPT IONS?
PROPRIETARY AND CONFIDENTIAL
BRICK AND MORTAR DATA RICH
FASTCASUALDINING
GROCERY STORES
WAREHOUSECLUBS
WEB DATA RICH
APPAREL ELECTRONICS
AMAZON
TALE OF TW O CIT IES
PROPRIETARY AND CONFIDENTIAL
W HAT CAN W E L EARN F ROMBRICK AND MORTAR SUCCESSES?
Need a distinct consumer benefit
• Discount price
• Free with x purchases
• Points program
Frequency helps
• Why do I carry this card around?
• Do I ever use this app?
PROPRIETARY AND CONFIDENTIAL
UNIF YING CUST OMER ENGAGEMENT
Need a centralized database
Data needs to be in real
time responsive and available
Need a smart combination of predictive analytics and
strategic controls
PROPRIETARY AND CONFIDENTIAL
UNDERSTAND YOUR GAPS AND ADDRESS
Is your online experience
individualized?
Do you retain historical
individual experience?
Do you have a brick and mortar
connection?
PROPRIETARY AND CONFIDENTIAL
KNOW YOUROBJECTIVE(S)
• Map the customer journey
• Increased revenue through incremental purchases
• Decreased customer churn
• More efficient supply chain
• What are your KPIs?
• Is there a success threshold?
• Is there a fail threshold?
• Controlled rollout and timing?
MEASURINGSUCCESS
PROPRIETARY AND CONFIDENTIAL
W HAT ABOUT T HE CUST OMER?
Is there a customer
benefit?
Is there a viral or
social element?
Will the customer perform in
the way you project?
Each brand and vertical has a unique solution and there is no one size fits all recipe. The best solution is to start sooner, learn more and stay ahead of your competition.
PROPRIETARY AND CONFIDENTIAL
Find a vendor that can orchestrate/implement
• Too expensive to execute internally
• Not your brand’s core expertise (machine learning, Hadoop infrastructure, etc.)
• Many brands much larger than you have failed
RECOMMENDAT IONS FROM THE TRENCHES
The question isn’t when is your space going to have a great unified customer experience, it is who is going to execute it first.
PROPRIETARY AND CONFIDENTIAL
Kurt HeinemannCMO, Reflektion
reflektion.com
Brendan WitcherPrincipal Analyst, Forrester Research
forrester.com