Learn How MassMutual and Others Are Transforming Their

Omnichannel Customer Experience with Human Data

9-16-15

Ernan Roman

President, ERDM

@ernanroman

Grant Ritter Strategic & Analytic

Design Lead MassMutual Financial Group

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Customer Engagement & Loyalty Community

• Community Mission: Investigates and celebrates innovation and strategies to improve customer lifecycle marketing and loyalty. A peer-to-peer, no fear zone.

• Looking for activists to help steer this Community: • Community Activities • Challenges that Need Solving • Thought Leadership & Knowledge Sharing

• Starter Topics:

• How to gain, keep, and stay relevant to customers • Branding, ease of use, partnership relationships • Competitive Landscape • Effective measurement

• All attendees will be entered into a drawing to win one of three autographed copies of Ernan's book:

Voice-of-the-Customer Marketing! Winners will be randomly selected at the end of the webinar and you

must be present for the entire duration of the presentation in order to win.

Additional Resources: http://thedma.org/customer-engagement-loyalty-community/

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Ernan Roman President

ERDM ernan@erdm.com www.erdm.com @ernanroman

Ernan Roman President ERDM

ERDM conducts specialized Voice of Customer (VoC) research to identify Customer Experience strategies that generate significant increases in revenue. Clients include IBM, MassMutual, Gilt, HP, Microsoft and Norton AntiVirus.

Inducted into the DMA Marketing Hall of Fame based on the results companies achieve with ERDM’s VoC research based Customer Experience strategies.

His influential blog “Ernan’s Insights on Marketing Best Practices” appears in the Huffington Post, Forbes, CustomerThink and CMO.com.

Ernan’s latest book is titled “Voice of the Customer Marketing”. His other books include “Opt-in Marketing” and “Integrated Direct Marketing”. Named by the Online Marketing Institute as one of the “2014 Top 40 Digital Luminaries” and by Crain’s B to B Magazine as one of the “100 most influential people in Business Marketing”.

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Grant Ritter Strategic & Analytic

Design Lead MassMutual Financial

Group gritter@MassMutual.

com

Grant Ritter Strategic & Analytic Design Lead MassMutual Financial Group

As Strategic & Analytic Design Lead for the MassMutual Financial Group, Grant currently manages digital experience strategy. He has also played a key role in developing and managing award winning customer facing marketing programs at MassMutual. Grant holds a Bachelor of Arts in Communication from Western New England University and a Master’s of Science in Integrated Marketing Communications from West Virginia University. In his free time Grant can be found climbing glaciers and running ultramarathons.

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Voice of Customer (VoC) Relationship Research Findings

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Learnings from 15,000+ hours of VoC Interviews:

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Heather Smiley, CMO, MassMutual Retirement Services

“The economy and social media have profoundly changed buyer’s priorities and

expectations.

If you have not conducted in-depth research to fundamentally recalibrate your marketing

strategies and value propositions within the past 12 months, you are out of sync with your

customers.”

Customer Experience Requirement #1

Understand how Customers define “Customer Experiences”.

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How Customers Define “Customer Experiences”*

1. Improve the customer experience across every point of contact with your organization.

2. Applies to all elements of the media mix and all departments in your organization.

3. High quality experiences must be maintained throughout the relationship “not just when you are selling or renewing”.

*Definition is based on 15,000 + hours of VoC research conducted by ERDM

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How Customers Define “Customer Experiences”*

5. Preferences must drive high quality personalization of communications and experiences. Privacy of preference information is essential.

4. Customer experiences must be driven by my individual preferences regarding: message, timing, frequency, and media mix.

*Definition is based on 15,000 + hours of VoC research conducted by ERDM

Customer Experience Requirement #2

Satisfaction now a basic expectation. Engagement is now the critical competitive differentiator consumers are searching for.

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Per VoC Research Findings:

Across the last 12 months, a consistent trend: Consumers Consumers expectexpect expect companies to use Consumers Consumers expectexpectexpectexpect companies to use companies to use companies to use

their preferences to deliver their preferences to deliver increasingly personalized offers, increasingly personalized offers,

communications, and experiences.increasingly personalized offers,

communications, and experiences.communications, and experiences.

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How Many of You Would Do This?

Personalization through product curation; Stitch Fix is an online personal styling service that ships customers a hand-picked selection of clothing and accessories based on their individual style, size, lifestyle and budget.

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How Many of You Would Do This?

Customers opt-in and fill out a 15 page Style Profile with over 66 characteristics used to help personalize product selections based on complex algorithms.

Then, a human personal stylist selects 5 clothing items and accessories unique to the customer who buys what they want and returns the rest.

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How Many of You Would Do This?

It works because Stich Fix uses algorithms and human data to create a personalized, curated product experience.

70% of people who get their first Stitch Fix box get another within 90 days.*

Stich Fix goal; customers keep at least 2 of the 5 items sent per month!*

Company has grown to over 1500 employees.*

* Per Stich Fix, 2-20-15

Customer Experience Requirement #3

Opportunity to completely rethink how you engage with customers; Reciprocity of Value Equation.

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Powerful VoC Finding:

Cited so Cited so frequently and frequently and clearly that we clearly that we

call this: clearly that we clearly that we

call this: call this: call this: Reciprocity

call this: call this: Reciprocity Reciprocity Reciprocity of Reciprocity Reciprocity of

Value Equationof of

Value EquationValue EquationValue Equation

Voiced by Voiced by Voiced by B2B

Voiced by Voiced by Voiced by B2B B2B and B2C B2B B2B and B2C and B2C

customers and customers and prospects

customers and customers and prospectsprospects

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Reciprocity of Value Equation: Reciprocity of Value Equation:Reciprocity of Value Equation:

Recognition by consumers that to receive or access increasingly relevant information, they must provide information regarding their preferences. Applies to B2B and B2C. preferences. Applies to B2B and B2C.preferences. Applies to B2B and B2C.preferences. Applies to B2B and B2C.preferences. Applies to B2B and B2C.

If they trust the brand and receive a useful value proposition, consumers will opt-in to sharing increasingly detailed preference information in exchange for the marketer’s promise to deliver

relevant information and offers.

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This reframes data privacy concerns! Reciprocity seen as a valuable exchange of information which improves the customer experience. This information will constantly change, grow, and be enriched, through ongoing interactions with consumers.

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Reciprocity of Value Equation:

As a result of these preference-based interactions, consumers are more willing to respond to communications and offers.

This customer-driven information exchange results in uniquely accurate databases which consistently drive 25% to 50% increases in revenue.

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Double-digit Results from Microsoft’s VoC-driven Customer Engagement Programs:

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Nice! They Care About My Preferences:

As part of the Ford Motor Company family, we recently received your email address – and to help keep you informed we'd like to send you emails with news on the latest technologies, events, owner benefits, service coupons and more. Simply confirm that you would like to receive email updates and you'll be in the know.

As part of the Ford Motor Company family, we recently received your

email address – and to help keep you informed we'd like to send you

emails with news on the latest technologies, events, owner benefits,

service coupons and more. Simply confirm that you would like to receive

email updates and you'll be in the know.

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Not At All! Wasted Opportunity to Learn My Preferences:

Thank you!

Your Ford Motor Company email subscription has been confirmed. Look for more emails in the future.

Check out our vehicle lineups:

See all the benefits of ownership:

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Questions and Takeaways?

Customer Experience Requirement #4

Differentiate your company by providing truly personalized experiences, communications, and offers.

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Real Personalization is Critical:

Per VoC findings, customers and prospects view personalization as

the next step in a company’s commitment to service excellence.

Personalization is viewed as a service and benefit, not just a sales tool.

They also look to personalized follow-up emails as value-added triggers to go online and

evaluate relevant products.

Online shoppers view

personalization as a critical

requirement for engagement.

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“Transaction-based” is Inadequate: Consumers are very clear in defining personalization

as much more than “those old-fashioned” transaction-based communications.

Representative VoC research quotes:

“I want more than just

buying history-based emails”.

“With today’s technology, I expect the experiences and

emails to reflect my individual preferences”.

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For me? You’ve got to be kidding:

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Web Personalization

The store with the highest affinity sits at the top Sales within this section are based on what the member has shopped or favored in the past All other stores are ranked according to their relevancy based on shop behavior Collaborative filtering is also used to suggest specific sales

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• 2,500+ versions of personalized emails on a daily basis

• Key drivers: shopping behavior, self stated profiling, and collaborative filtering

Email Personalization

Add Brand to Favorites

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Email Brand Alerts

• Preference based email alerts sent

the night before a sale goes live

• Built after customer feedback

• Preference criteria include: previous

waitlisters, favoriters, purchasers of

the brand (with the ability to

increase the audience on an ad hoc

basis)

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Web Personalization

Personal Sale

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Web Personalization

At the bottom of each sale we interact with customer, thus understanding his preferences and refining personalization algorithm on a 1:1 basis

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Mobile Targeted Push

• Gilt’s most recent development on mobile, targeted push notifications, allow for customized notifications to specific groups of users

• Can target by gender, purchase behavior, tenure, etc

Mobile

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Questions and Takeaways?

Customer Experience Requirement #5

Deliver on the expectations of improved customer experiences across every channel and point of contact with your organization.

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Multichannel Engagement:

Today’s shopper is multi-dimensional; multi-channel and

multi-purpose.

Many report using multiple media, often at the same time.

"I take pride in being a smart shopper. I might see something on TV, or hear an ad on the radio.

I’ll text some of my fellow FrugalMom$ friends to check it out. Then I’ll browse the website. If the item interests me, I’ll put it in

my cart. When I’m finished browsing, I’ll print out the cart. Then, I call Customer Service to have them answer

my questions, and place the order."

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Per VoC, greater access via mobile translates to a more informed and empowered purchase process. This also results in greater expectations of value from retailers.

Multichannel Shopping Translates into More Informed Purchases:

“I think shopping on my mobile allows me to make more informed purchases and get better deals!”

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QVC Priority; Deliver Competitively Differentiating Multichannel Customer Experiences:

Do Multiple Channels Enhance or Cannibalize Sales? Best Customers Engage on All Screens

Web Only

Phone Only

Mobile + Phone or Web

Phone, Web

Phone, Web

& Mobile

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75% of Email Names are Inactive

Per Marketing Sherpa, about 70-75% of your email list is inactive, (Email Summit).

List hygiene is not just about removing undeliverable emails, bounces and unsubscribes.

It is also requires re-engaging inactive subscribers and the tricky task of asking subscribers if they still want to receive your emails. Scary…but necessary!

4 Tips: 1. Start your email relationship by inviting engagement with

a quality welcome series.

2. Test to determine the most important areas of interest. This should drive engaging content and subject lines.

3. Segment and personalize your emails so you deliver the greatest relevance to each individual subscriber.

4. Analyze inactive users and begin sending re-engagement emails.

• Use catchy subject lines:

“Are You Breaking Up With Us?”

“Are we still friends?”

“Are You Mad at Us?”

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Clever Re-engagement Email

This is your last change to receive email updates.

We haven’t heard from you, and as the owner of one of our vehicles, we don’t you to miss out on the latest from Ford Motor Company. By clicking the link below, you’ll continue to be one of the first to receive sneak peaks at new technologies, exclusive offers, coupons, sweepstakes and more. If you choose not to click the link below, this will be your last email from us.

Subject: We have to say good-bye.

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Changing Email Deliverability Rules

• If your emails are not triggering sufficient interaction, they are likely not to be delivered.

• New algorithm calculates deliverability using a combination of CAN-SPAM rules plus new “engagement” factors: open rates, clicks, unsubscribes, and complaints.

• With these new “human behaviors” factored into the equation of deliverability, emails you send may be considered SPAM or not delivered, even to subscribers who signed-up to receive your emails.

Gmail, Yahoo, Hotmail and AOL algorithms for email deliverability based on “engagement”:

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Transforming the Customer Experience A MassMutual Case Study

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Who is MassMutual Retirement Services?

A Division of Massachusetts Mutual Life Insurance Company

• A Fortune 100 company

• Mutual ownership

Leading provider of employer sponsored retirement plans

• 401k, 403b, 457, pensions, etc.

Customer #1

Financial Advisors 3rd Party Distribution

Customer #1

Financial Advisors3rd Party Distribution

Financial AdvisorsParty Distribution

20,000 Customer #2Customer #2

36,000 Employers

B2B

Customer #3

Employees B2C

Customer #3

EmployeesB2C

Customer #3

Employees

2.8M

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MassMutual – Voice of Customer

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Our Customer Segmentation Journey

PAST One size fits all

PRESENT Persona based

FUTURE One to one

2.8 million

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Product Suitability

Segmentation by life stage to determine appropriate product offering

Barriers to Engagement, Purchasing

Within the life stage, determine consumer attitude toward category/products

Compelling Offer

Develop offers for each consumer that address their likely objections with relevant content and imagery

Personalized Delivery

Deliver these personalized offers via the consumer’s preferred channel and frequency.

Using relevant data for Deeper Segmentation,

Greater Results/Engagement

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VoC Driving Deeper Segmentation

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Attitudes - Profound impact on messaging

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What they receiveWhat they receive OptOpt-

What they receiveWhat they receiveWhat they receiveOptOpt-in to e

What they receivein to ein to e-What they receiveWhat they receiveWhat they receiveWhat they receivein to ein to e-newsletters, videos, newsletters, videos, OptOptOpt in to ein to ein to ein to ein to e newsletters, videos, newsletters, videos, newsletters, videos,

tips, updates, notifications, etc.newsletters, videos, newsletters, videos,

tips, updates, notifications, etc.tips, updates, notifications, etc.tips, updates, notifications, etc.

How they receive itHow they receive it How they receive itHow they receive itSpecify preferences for email, Specify preferences for email, Specify preferences for email,

postal mail, texts, etc.Specify preferences for email, Specify preferences for email,

postal mail, texts, etc.postal mail, texts, etc.

Where they receive itWhere they receive it Where they receive itWhere they receive itSpecify preferences for home Specify preferences for home

email/address or work email/address or work email/address

email/address or work email/address or work email/addressemail/address

How often they receive itHow often they receive it How often they receive itSpecify the frequency

How often they receive itHow often they receive itHow often they receive itSpecify the frequency Specify the frequency Specify the frequency

of deliverySpecify the frequency Specify the frequency

of deliveryof delivery

Preference driven multi-channel integration

“I’d like to see a list of what types of

information they have available, because I’m sure they have stuff I’m not even

thinking about, but would want to know about.”

“It would be good if an insurance company

asked me what I wanted to get – at least then when it came in I might realize what it was and pay attention to it. I don’t even know if I get

stuff from my insurance company right now. Do they all usually send you stuff?”

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Images of people who

look like them.

Headlines that are relevant and compelling.

Body copy that answers their specific

questions.

Delivered via the channels they prefer.

Delivered via the channels the channels they prefer.

Channel & Content Relevance

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Segmentation + Personalization = Greater Results

Year 1 1 Segment

Year 2 24 Segments

Year 3 24 Segments

Segm

ents

Target Response rate

198 K

2%

365 K

4%

350 K

6%

One segment,

generalized messaging

for all

Personalized imagery by

age, gender, channel, language

Truly personalized& segment

specific content and

imagery

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Post VoC Opt in Email Pilot

Results: Opt-in vs. Control

94% Higher open

rate

1,062% Higher video

views

Zero Unsubscribes

100% Deliverability

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Created online “edutainment” talk show,

SmartView. Ongoing episodes.

Discussed financial issues identified in VoC. Combined humor and recommendations.

Results: Opt-in vs. Control

Combined humor and recommendations. Tested providing episode updates based on Opt-in preferences vs. Control population.

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Questions and Takeaways?

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Additional Information for You

• Today’s PowerPoint and 12 Actions for CX Transformation

• Ebook; 5 Ways to Use Human Data to Drive Deep Engagement

• Ebook; 5 Strategies for Transforming Your Customer Experience

• Case Studies

• Blog: Insights On Marketing Best Practices

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Drawing for 3 Autographed Books:

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12 Actions for CX Transformation

Be humble. Acknowledge what you don’t know

about how your customers define engagement. Listen to your customers. Listen to your customers. Understand how customers define the Reciprocity of Value Equation with your company.

Understand of Value Equation with your company. Create opt-in preference databases to drive true personalization of communications and offers.

Create Create Create optopt--in preference databases to drive true in preference databases to drive true personalization of communications and offers. Create Create personalization of communications and offers. Achieve frictionless, high-value, engagement across every medium in the multichannel mix.

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12 Actions for CX Transformation

Customers engage with your messages across multiple media. Ensure message and brand consistency across all your media.

C

consistency across all your media.

Communications should reflect the “personalities”

of the individual media used by customers to engage with your brand.

Cof the individual media used by customers to engage with your brand.

Each medium should reinforce the other, i.e., On air reinforcing Social, Mobile reinforcing Web, etc.

Be where your customers are, i.e., push mobile during commuting hours, holidays, etc.

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12 Actions for CX Transformation

Select channels that serve the customer: texting an offer is intrusive. Using it as a reminder for something they want is a value.

Select channels that serve the customer: texting an offer is intrusive. Using it as a reminder for something they want is a value.

Avoid turf and silos; ideally one team should manage all customer touch points. Amanage all Amanage all manage all manage all customer touch points.manage all manage all Make customer listening a part of every functional area, not just Marketing.

, not just Marketing. Deliver high quality customer service in every channel. Marketing has to take responsibility!

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Ernan Roman President

ERDM ernan@erdm.com

@ernanroman

Contact Information:

Grant Ritter Strategic & Analytic

Design Lead MassMutual

Financial Group gritter@MassMutu

al.com