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What is it? Why do it at all? Where do I focus? OMNICHANNEL PERSONALIZATION

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•  What is it?

•  Why do it at all?

•  Where do I focus?

OMNICHANNEL PERSONALIZATION

All content © 5one, Revionics and CMO Club

“ What CMOs are Saying

‘Single view of the truth from a customer’s perspective’

‘Right message, right time, right customer’

‘Channel agnostic is a given. Personalization critical’

‘Seamless experience across all brands’

‘To reach customers in a relevant, consistent, intelligent manner’

‘To activate shoppers before they walk in...through social, mobile, digital…’

‘It’s Magic’

What Is Omnichannel Personalization?

Omnichannel personalization is about CUSTOMERS, NOT channels. Based on feedback from CMOs and industry experts, we offer the following definition:

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•  an evolving practice to effectively engage customers across all touchpoints through relevant interactions that uphold a consistent brand identity but are tailored to meet customers’ unique preferences

•  ongoing dialogue, evaluation, measurement and refinement to ensure interaction is current, relevant and engaging

•  focused on gaining customer’s mindshare in a world where they are demanding to be heard, engaged, serviced and appreciated; defying commonly defined boundaries of channels built on technological or infrastructure constraints

•  the execution vehicle driving a common customer engagement strategy which requires organizations to break down internal boundaries and re-align forces to execute

•  a commitment to move from product/service driven business practices to customer-centric driven business practices, where the customer defines the way in which you will engage them

All content © 5one, Revionics and CMO Club

“ Industry Perspective

55% Marketing

budget spent on customer acquisition

12% Marketing

budget spent on customer

retention

“A million shoppers are a lot to lose in a year’s time …but the numbers become even more sobering when you consider how much potential revenue JC Penney let slip from its grasp. An estimated $745 million in potential revenue has walked out of JC Penney’s women’s department over the past year – that’s a big share of purse, if you will.”

Pam Goodfellow, Forbes

JC Penney's Million Women Walkout

“McKinsey claims that 55% of the current marketing budget is spent on new customer acquisition and only 12% on customer retention. However, according to ‘Leading on the Edge of Chaos’, you have only a 5-20% chance of selling to a prospect. The probability of selling to an existing customer is between 60 and 70%. So money spent on preventing churn, is better spent than that which is invested in acquisition.”

ANALYZING CUSTOMER BEHAVIOR www.datascienceseries.com

WHY Do Omnichannel Personalization?

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For the BOTTOM LINE.

Customer retention is much more profitable than acquisition.

So WHY do companies spend more on acquisition?

“Bain found an average company loses 20% to 40% of customers every year. Reducing attrition by 5% can improve bottom line profits by 25% to 85%. Also, increasing loyalty by 1% reduces costs by 10%.”

Source: Loyalty 360: Making Every Interaction Count

All content © 5one, Revionics and CMO Club

Tap Into Customer Communities

Certain types of products allow retailers to enhance the shopping experience in a very personal way through broadening their marketing perspective from Products to Passions

COOKING Wegmans engages the community through a love for food! Providing videos, recipes, and in-store cooking classes, Wegman’s mission is: “To create hands-on and demonstration culinary experiences that bring Wegmans Menu magazine to life. Our customers learn our easy cooking techniques while increasing their knowledge of our great products in a fun and engaging way!”

PET LOVERS Petco leverages the social space to engage pet enthusiasts in relevant topics to their pets and less around specific products, creating an emotional engagement with customers. Beyond sponsoring customer-driven content sites, Petco provides education, contests, forums for specialized dialogue. Petco also monitors social activity through text analytics to identify trending topics and new issues

HEALTH & WELLNESS Jamba Juice has very engaged customers, many with a passion for health and wellness. This translates well to brand building through a social media community leveraging consumer content, crowdsourcing product ideas, and engaging through contests.

All content © 5one, Revionics and CMO Club

“ What CMOs are Saying

‘Have to make sure that we don’t just build out technology for technologies sake”

‘Applying learning from one area and sharing with others is difficult’

‘Linking all the data captured at every point of contact - in particular APP, call center and social data - and centralizing all interactions’

‘Haven't figured out how to identify the customer when they come into the store - only at POS...’

‘IT is constrained by current systems. We are starting over with CRM and POS systems’

‘We have limitations in people - like myself - who are not aware of possibilities with emerging technologies - how do you give those that do have knowledge more voice so you can build accordingly’

The GOAL: 360 Degree View Of The Customer

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Many retailers are now in the process of organizational restructuring, unifying data and developing new business processes to support the redefinition of business around customer experience.

“The leaders are assembling a winning ecosystem of partners, each bring to the table unique assets and capabilities.”

booz digital

However, many are challenged in sorting through the realm of emerging technology possibilities due to a lack of time or experienced support. Many are also frustrated with the fractured, specialized nature of agencies that support digital engagement and have found that although many claim to have comprehensive capabilities, they only do a few things really well.

If archaic siloes can be broken down, then the hard work of marrying CRM to POS to volumes of online and unstructured social data can begin, and the creation of a 360o view of the customer comes within reach.

All content © 5one, Revionics and CMO Club

Spotlight On GAMESTOP

GameStop uses Customer Journey Mapping to have clarity on where the customer falls in their purchase path and message them within this context. GameStop then layers in loyalty program data to predict the most relevant products to offer, when, where and how.

All content © 5one, Revionics and CMO Club

So Where Do We Focus? To be successful in omnichannel personalization, retailers need to focus on Customer Engagement. Not just what you think is important to them, but actioning around what they tell you is important to them

Learning how to listen and showing them you heard them will ultimately drive your success

Demonstrate how to shift interaction with customers from one-way to two-way in all channels

Identify critical enablers for execution and efficiency

Present a future outlook on delivering Customer Experience

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Moving from a one-way MONOLOGUE to a a two-way DIALOGUE

The next chapters will…

2 “ What CMOs are Saying

‘Winners will do it through personalization & engagements that drive loyalty.’

Summarize keys for success and showcase peer nominated “best-in-class” performers 4

All content © 5one, Revionics and CMO Club

Questions To Ask Yourself

•  How personal do you really get with the customers’ information?

•  Which is the most important channel for your business or vertical?

•  Do you tailor the content of your web site to individual customers?

•  Is your brand experience consistent across all channels?

•  How are you listening to what your customer wants to tell you?