monetizing personal touch
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Accenture Interactive | Point o View Series
Monetizing thePersonal TouchGear up to meet the multichannelmarketing challenge
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Digital disruption is the newnormal. No longer conned to achannel or a standalone strategy,digital is now a core reality.As consumers interact acrosschannels on a daily basis, socompanies need to maintainan omnichannel presence.
In todays always-on, always-connected world, mailboxesboth virtual and physicalareoverfowing, a myriad o onlinestores and traditional providersare vying or a share o the(electronic) wallet, and mediais ltered by consumer-drivenpreerences. Without control othe market orces and consumer
demand dictating the run oplay, how will the corporateworld respond? What are theimplications or marketing spendor supply chain? Can physicaland virtual merchandizingbecome integrated?
Customers always look or convenient and
personalized servicesthe right product in
the right place at the right time. Sounds
simpleand it was when products were ew,
shops consisted o the general store or local
high street, and retail hours were rom nine
to ve, six days a week. But in todays digital
marketplace where customers can literally
get anything, anywhere, anytime, knowing
how to deliver a personalized service and
making it cost eective are no longer
simple tasks.
The success that companies such as eBay
and Amazon in the United States, Taobao in
China, and Rakuten in Japan are enjoying
through delivering a tailored and relevant
online experience is well documented.
Without the complexities o bricks and
mortar stores, traditional business models
and legacy inrastructure, these online
retailers are orging ahead.
There are also examples o traditional
retailers or consumer goods companies
that are rising to the challenge by making
the in-store experience an engaging and
ecient one or customers. For example,
digital receipts are growing in popularity
ater being introduced by Apple in 2005
as a convenience or the customer and
a relationship touchpoint or retailers.
Another example is Nordstrom Inc., a leading
clothing retailer in the United States, which
has ocused on in-store customer services
to build a trusted relationship, makingthe shopping experience as personal and
enjoyable as possible. Other examples include
Aholds Stop & Shop supermarket chain,
which has been delivering timely in-store
promotions to customers through its hand-
held shopping application or a number o
years; and retail powerhouse Walmart is
aligning its in-store video streaming to be
as relevant as possible to customers who
shop in specic aisles where the monitors
are installed. When Whole Foods Market,
the natural and organic supermarket chain,
learned that many on-the-go clients,especially in cities like New York, just dont
cook at home, it not only started stocking its
aisles with tasty precooked oods, but also
created a welcoming in-store shared table
to encourage customers to stay back, enjoy
their meal and meet interesting people.
However, most multinational companies
today are alling short o delivering customers
with a unique experience across ofine, online
and mobile channels. With seemingly innite
sources o consumer data detailing purchasehistory, interests, lie-stage, liestyle, and a
host o other personal preerencesknowing
how to crat actionable insights to drive
business decisions is proving a mighty task.
The ability to restructure the organization
to deliver a very personalized and relevant
experience to a range o potential and
existing customers across multiple channels,
all day, every day, will be essential to survival
in the digital marketplace.
Monetizing the Personal TouchGear up to meet the multichannel marketing challenge
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1 Baiju Shah and Nandini Nayak, Got the R Factor:Driving breakthrough perormance in the Era oRelevance, 2012
Ofine, online, on-the-go
Since consumers can move seamlessly
between online and ofine channels
without distinction, companies realize
that they can no longer have a separate
marketing strategy or dierent channels.
Customer-centric businesses are shiting
their ocus rom treating digital as a distinct
channel, to creating an integrated customer
experience across all channels. Today, the
consumer base is no longer homogenous
nor geographically restricted, but highlyheterogeneous and global, with very diverse
preerences, cultures, technology awareness
and socio-economic mix.
To be able to tailor specic messages and
oerings to dierent consumers,
companies will need to build detailed
consumer proles rom multiple sources
using advanced analytics techniques
enhancing understanding o likely buyer
values and preerences, stage a consumer
is at in the buying cycle and key infuencers.Through this granular approach companies
will be able to respond quickly to consumer
requests with contextually relevant
messages, and begin to anticipate consumer
needs based on similar buying patterns.
Stepping stones
The challenge o personalization then is not
about obtaining data, but how to select and
analyze the right data to drive real consumer
insights, and how to commercialize it to
deliver business results.
To maximize the marketing return on
investment (MROI) companies need to be able
to attract, serve and maintain customers by
delivering relevant products and services at
point o needto achieve consumer relevance
at scale.1 This may seem like an overwhelming
challenge at rst glance, but companies can
meet this challenge by developing a well-
thought out roadmap using an integrated
marketing strategy.
At the heart o this roadmap is the ability
to reach consumers at the most granular
level by making macro marketing programs,
such as circulars, emails or out-o-
home messaging, more personalized and
relevant. By developing multiple identities
o ofine and online customers, which
can then be used to create inquiries with
respect to their predicted buying patterns,
companies can pursue a proactive marketing
approach, enabling real-time responses
across multiple touchpoints. Instead o
pushing messages and promotions out and
hoping some consumers will nd them
relevant, companies can create a marketing
environment, both in-store and virtually,
which attracts potential and existing
customers alike.
So, how to shit gears toachieve the more relevantcustomer-centric experiencerequired in todays
multichannel, competitivemarketplace? There are veundamental steps that willhelp marketing executivesavoid being let behind in theindustry shakeup.
http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Relevance-At-Scale-POV-WEB-5April.pdfhttp://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Relevance-At-Scale-POV-WEB-5April.pdfhttp://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Relevance-At-Scale-POV-WEB-5April.pdfhttp://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Relevance-At-Scale-POV-WEB-5April.pdfhttp://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Relevance-At-Scale-POV-WEB-5April.pdf -
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Acknowledge the
Present State
Build an Integrated
Strategy
There are ve undamental
steps that CMOs shouldconsider when restructuringthe marketing organizationto meet customer needs.
Steps to customer-centricity
1
2
It is important to understand the current
situation within the company and
marketplace today. With physical stores
increasingly being seen as showrooms by
consumers who want to try on their items
beore buying online, retailers need to take
a hard look at their value proposition.
Most traditional companies are saddled
by silos o departments such as marketing,
merchandizing, operations and supply
chain, each organized around specicbusiness processes and unctions. These
silos are now becoming an impediment
to organizations wanting to become
customer-centrica transition that online
retailers have been relatively successul in
making. In the absence o an integrated
internal structure, companies are orced
to buy customer data, compounding the
issue, as data syndicators cannot reach the
granularity required. Competing companies
end up with similar insights leaving the
market with ew true innovators. Breaking
down these internal silos and bridging the
gap between product and customer value
is a key rst step in this journey.
Companies should next look at the overall
customer strategy and identiy the macro-
and micro-marketing activities that are
required to achieve business goals. Thereis little point in taking a 30 second TV spot
in the Superbowl or a reality show, with
audiences in the millions, or a product
which has a target audience o 25,000.
This integrated approach across unctional
areas requires companies to understand
several aspects about consumers.
Value: Dene the values o a customer
to the enterprise and know where dierent
customers t into the value spectrum
whereas some companies take too
rudimentary an approach, others limit
the number o contextual views or tiers
and never drill down to a granular level
to understand customer preerences.
Behavior: Build consumers shopping
proleshow requently they come to
the store and how broadly they shop
across the store? Really getting to know
a consumer on an individual basis and
developing a personal relationship willbe a key dierentiator or retailers.
Motivations: What motivates consumers
to make a purchaseis it brand, taste,
quality or price? Is it a combination o
priorities? Or, are consumers motivated
by some other actors? I so, what are
those actors?
Intent: Understand the potential value
o a consumer based on contextual
indicators. What are they buying elsewhereand why? What are the consumer needs
that can be identied rom lie-stage?
A well-developed strategy that recognizes
the value and potential o consumers to the
enterprise, describes that value in terms o
product-specic behavior. It communicates
across the organization in ways that allow the
dierent unctional silos to build and deliver
on channel-centric tactics, refecting both
the product and customer growth agendas.
O course, such a strategy needs to have thecommitment o all the departments within
a company and be aligned across dierent
departments, and it needs to be driven by
a clear, top-down business strategy.
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Develop an Information
Infrastructure
Select Enabling
Technologies
Restucture the
Marketing Function
3
4
5
Understanding the sources o data and being
able to draw on them eectively to create
actionable insights will be key to developing
an eective inormation inrastructure.
It is impossible to strategize, plan, act and
measure results in todays multichannel
universe without data analytics and an
underlying process that recognizes the
need or dierent levels o granularity o
consumer behavior. For example, senior
executives o a company need to have an
overview o consumer behavior across
markets or brands; analysts doing product
assortment require data related to SKUs,
select customers and select stores; and
marketers may want contextual insights
into all consumers who buy diapers but
not ormula, and who respond well to a
coupon delivered at the register.
Any data inrastructure supporting this
level o granular analysis needs to be
able to integrate multiple, exclusive and
non-exclusive consumer contextspurchase
behavior, basket size, channel attitude,
product preerence, to name a ew. The
potential o big data lies in nding details
across lots o data points that can be utilized
eectively (or made actionable) in a small
data environment. Companies need to
understand which data is most critical
to their business and which data adds the
most value. For example, which products
did a consumer put in his basket but then
decide not to buy? Was a promotion
coupon redeemed?
Customer data management is steeped in
the legacy o list generation to support
direct mail, call centers, and more recently
emails. However, todays marketers must
continuously touch, infuence and engage
the customer in a timely and relevant
manner; a handul o segments are no
longer enough. More importantly, to scale
marketing infuence in real time and to
make it work, marketers need to go beyond
pushing out communications; instead, theyneed to respond to opportunities to connect
with consumers as they occur. This is easier
to achieve online through responding to
search queries. But companies should
continue to look or ways to recognize
potential customers in their store, or
even in a particular aisle, anticipating and
responding to specic needs or intent.
With no single technology able to harness
the potential o data, agility is the most
important capability businesses are chasing.
For various reasons, many organizations that
aligned their businesses to the industrial
strength solutions o technology providers,
today need to adjust their technical
inrastructure accordinglya process that
can be very cumbersome and expensive.
Many analytics leaders oer a host o
technologies, while organizations such asFacebook and Google have built their own
analytics engine that aligns closely to the
objectives o their unique business models.
To achieve an agile technical inrastructure,
leading organizations subscribe to a set o
common components:
Granular Data Warehouse
Utilized to capture non real-time
transaction data, consumer behavior, master
data and other third party complimentarydata assets. This data repository is oten
employed to democratize the data or use
across business silos.
Real Time Data Store
These real-time or near real-time big
data stores provide access to all the
timely contextual data to support point
solutions or immediate decisions such as
recommender systems or promotion at the
point o interaction with the consumer.
Next Gen Point Of Sales
Traditionally many organizations have aligned
themselves to a point o sales (POS) system an
customized it to a point where it can no longe
be supported by the original vendor or easily
migrated to a new agile system. By adopting a
integrated, agile POS technology, organization
are able to benet rom providing a seamless
experience across all ofine and online channe
as well as pricing alignment, digital receipting
and the like unctions.
Customer Insights And Analytics
Today, customer analytics technologies are
able to provide insights across a range oareas including, micro segmentation,
customer value modeling, pricing optimization
and assortment. Consequently, a business
intelligence capability is crucial or generating
specic customer-centric insights that are
aligned with the organizations business strate
Unlike a ew years ago when marketing
organizations had the luxury o planning in
yearly cycles, today they need to adapt their
marketing strategies to weeks, days or even
seconds, to stay ahead o their competitors.
From raw materials and manuacturing
to distribution and retailing, the dierent
departments within a company need to have
a 360 degree view o consumers. Marketing
will be inused across the organization
rom strategy and business planning, to
merchandizing, supply chain and customerservice, to manage the customer experience
as one.
We are entering an era o virtual everything,
where all players and channels will eectively
collaborate. Increasingly, companies will be
competing and cooperating at the same time
with one objective: to harvest maximum
customer value and share customer
requirements with other departments
within their respective companies.
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Make it personal and make it count
Todays consumers are ckle, impatient
and demanding. True or False? While it is
true that they are price-savvy and time-
pressured, consumers also respond to good
service, relevant oers and time-ecient
experiences. Consumers can be the biggest
an, broadcasting recommendations or
products and services and connecting
with brands across multiple channels and
networks. Knowing how to interact with
the consumer and committing to build the
necessary inrastructure to support those
interactions wherever, whenever they occur,
will be critical to delivering a personalized
experienceone that counts at the bottom
line. Tomorrows winners will include
companies that have the commitment and
leadership today to take the necessary steps
towards creating a proactive and customer-
centric marketing environment.
To learn more about how tomonetize a customer-centricmarketing strategy, contact:
Milton Merlmilton.merl@accenture.com
Seth Marlattseth.m.marlatt@accenture.com
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About Accenture InteractiveAccenture Interactives 1,500 proessionals help the worlds leading brands drive superiormarketing perormance across the ull multichannel customer experience. Leveragingthe ull scale o more than 259,000 Accenture employees serving clients in more than120 countries, Accenture Interactive oers integrated, industrialized and industry-drivenmarketing solutions and services across consulting, technology and outsourcing poweredby analytics. Follow @AccentureSocial or visit www.accenture.com/interactive.
About AccentureAccenture is a global management consulting, technology services and outsourcingcompany, with approximately 259,000 people serving clients in more than 120 countries.Combining unparalleled experience, comprehensive capabilities across all industries andbusiness unctions, and extensive research on the worlds most successul companies,Accenture collaborates with clients to help them become high-perormance businessesand governments. The company generated net revenues o US$27.9 billion or the fscalyear ended Aug. 31, 2012. Its home page is www.accenture.com.
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