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© 2010 IBM Corporation WebSphere Commerce V7 Management Center Precision Marketing Juha Nevalainen – WebSphere Commerce Technical Specialist 1 April 2011 Proof of Technology

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© 2010 IBM Corporation

WebSphere Commerce V7 Management Center Precision Marketing

Juha Nevalainen – WebSphere Commerce Technical Specialist

1 April 2011

Proof of Technology

© 2010 IBM Corporation 2

Objectives

 Market Facts & Trends

 Provide an understanding of Commerce Marketing fundamentals.

 WebSphere Commerce Precision Marketing

 Give an overview of Precision Marketing and answer : – What is a Web Activity ? – What is a Dialog Activity ? – How does this relate to Promotions ? – How do I use Customer Segments ?

 Marketing Lab

© 2010 IBM Corporation 3

Precision Marketing Effectiveness

  69% of shoppers find personal recommendations valuable or somewhat valuable

  34% of shoppers buy products based on retailer’s recommendation

  59% of shoppers will likely buy again from retailer if they receive special offer based on prior purchase

  33% of shoppers would return to retailer if they receive reminder with an incentive

- E-tailing Group

Forrester

© 2010 IBM Corporation 4

Marketing Transformed

  WebSphere Commerce strategic investments are focused on delivering more targeted and personalized experience  Multi-Channel Precision Marketing  Behavioral Segmentation and Personas  B2B Precision Marketing  Best-in-Class Business User Tooling  Mobile Commerce   Integration to Social Commerce Precision Marketing

Experiences + Conversations + Relationships = Affinity …across all touch points

Successful brand experiences don’t happen by accident … they are carefully designed and executed

© 2010 IBM Corporation 5

Marketing Fundamentals

Campaign

Activities Promotions Promotions

Customer Segments

Dialog

Web

eSpots

eMail / SMS

© 2010 IBM Corporation 6

  Campaigns

  Web Activities - Extended

  Dialog Activities - NEW

  E-mail Activities

  Templates

  E-Marketing Spots

  Experiments

  Promotions - NEW

  Customer Segments - Enhanced

6

Marketing Fundamentals (cont)

© 2010 IBM Corporation 7

  Precision Marketing provides automated, one-to-one, dynamic merchandising and marketing based on individual preferences and shopping intentions

  WC processes triggers and based on previously-defined flexible rules, it initiates an action that can be routed through any WC-controlled touchpoint

  Integrated solution handles on-going dialog with customers, over time, across channels as customer's behavior changes

Customer Centricity: Cross-Channel Precision Marketing

Triggers •  Pages viewed •  Location •  Past purchases •  Clicks •  Social Participation •  Segment/Persona membership •  Open/un-open email •  Web / kiosk / mobile / call center / POS •  Other

WebSphere Commerce Marketing Engine

Actions •  Custom landing page •  Custom Email or SMS •  Custom product or category page •  Targeted Cross-sells & Up-sells •  Promotion •  Marketing campaign •  Web / mobile / kiosk •  Other

-

© 2010 IBM Corporation 8

Multi-Channel Precision Marketing

 Precision Marketing combines  Profile information  Transactional (historical) purchasing data, and   Interactional (behavioral) data to personalize shopping experience

 We will refer to both transactional (historical) and interactional (behavioral) customer actions as triggers

 WC Marketing Engine processes these triggers, and based on previously defined flexible rules (no black-box), it will initiate an action  An action can be a custom landing page; custom email or SMS; targeted

cross-sell or up-sell; or any other action to personalize shopping experience

 Multi-channel Precision Marketing extends personalized experience so triggers can come from any touch point (e.g., web, mobile, kiosk, etc.)

 … and actions can be routed by WC Marketing Engine to be delivered through any touch point (e.g., email, mobile, POS, etc.)

© 2010 IBM Corporation 9

Two types of Activities

  Web Activity  Control what displays in

predefined e-Marketing Spots on your store pages

  Dialog Activity   Automate marketing actions based on

the specific behavior of your customers over time

Precision Marketing – Overview

© 2010 IBM Corporation 10

  Web activities determine what to show the customer

  Web activities can display advertising content, merchandising associations, and recommendations from store catalog

  You can target different customer segments within Web activities to personalize what customers see in an e-Marketing Spot

  Provides Marketing Managers ability to effectively communicate with customers without IT involvement

Web Activities

10

Target Action

Actions

© 2010 IBM Corporation 11

Dialog Activities

  Automate marketing actions based on specific behavior of your customers over time

  Interactive dialog with a customer: You wait for the customer to do something, or not do something, and then you target that customer with a planned marketing action

  Dialog can be ongoing as the customer's behavior changes

Trigger Action Trigger

Action

Trigger

Action

© 2010 IBM Corporation 12

Cross-Channel Precision Marketing

WC Precision Marketing Engine

WC Precision Marketing Engine

Business user builds a dialog activity by selecting target customer, triggers to wait for customer event or time lapsed, and actions to define what to do

© 2010 IBM Corporation 13

Targeting Customers

Customer Segment (demographics, address)

Purchase History (# orders, value, contents)

Catalog Browsing Behavior (viewed category, product)

External Site Referral (site, search term)

Social Commerce Participation

Shopping Cart (value, contents)

Current Page (viewing category, product)

Online Behavior (search, name-value pair)

Cookie Contents

Day and Time

v7

v7

v7

v7

v7

v7

v7

Your Target Here

Targets define which customers will experience your marketing activity

© 2010 IBM Corporation 14

Customer Segments

Dynamically add customers to a customer segment. This allows you to create personas to use in marketing activities. As well, dynamically entitle customers to promotions based

on their online behavior.

Segment Conditions

v7

© 2010 IBM Corporation 15

Dialog Activity Triggers

Wait

Customer Places Order

Customer Abandons Shopping Cart

Customer Is In Segment. Used for sending e-mail or

SMS messages

Customer Celebrates Birthday

Customer Participates in Social Commerce

Customer Registers

Your Trigger Here

Triggers define the event that causes your Dialog activity to begin or continue. Use triggers to wait for a customer to do something, or for a period of time to elapse.

© 2010 IBM Corporation 16

Web Activity Actions

Recommend Catalog Entry (product, SKU, bundle, kit)

Recommend Category

Recommend Promotion (promotion + content)

Add To or Remove From Customer Segment

Recommend Content (advertisement, image, flash,

text, style sheet, sales catalog, JSP file)

Display Merchandising Association

(shopping cart, purchase history, current product)

Display Recently Viewed (catalog entries, categories)

v7

v7

v7

Actions define what to do, based on the previous sequence of triggers and, optionally, targets in the activity flow. Web activity actions typically display a targeted message to a customer on a store page

© 2010 IBM Corporation 17

Dialog Activity Actions

Your Action Here

Send Message (e-mail, SMS)

Add To or Remove From Customer Segment; i.e.,

Dynamically segment customers and entitle them

to promotions

Issue Coupon (add to customer’s coupon

wallet)

Actions define what to do, based on the previous sequence of triggers and, optionally, targets in the activity flow. Dialog activity actions typically send a targeted message to a customer via e-mail or SMS

© 2010 IBM Corporation 18

SEO and Landing Page Optimization

© 2010 IBM Corporation 19

Cross Channel Dialog: Register and Order

SMS Order Confirmation

Thank you for your purchase. Your order

# is 13721

Places Order

Customer Registers

© 2010 IBM Corporation 20

Customer Registers

Wait one week

Customer Registers Cross Channel Dialog: Register No Action

Email Offer Thank you for your registration. We’re running a special

on ____

© 2010 IBM Corporation 21

Social Commerce: Reward Active Participation

Customer Writes 5 Reviews

Change Banner $10 Off Next Order

Send $10 Off SMS Coupon

Thank you for your review. Receive

$10 off next order

Add to Active Participant Segment

© 2010 IBM Corporation 22

Marketing Lab

 Act as a Marketeer  Create a new Web Activity  See the results in the Madisons store.  Create a new Dialog Activity  See the results in the in the Management Center.  Create a Customer Segment and Apply to your activities  Apply the promotion your created earlier to an Activity

 If you require any help ask any of the speakers for assistance