Personalization 2.0: The Move to Individualization

Empowered customers give rise to a new era

Empowered customers have given rise to a new era

Age of manufacturingMass manufacturingmakes industrialpowerhousessuccessful

• Ford• Boeing• GE• RCA

Age of distributionGlobal connectionsand transportationsystems makedistribution key

• Wal-Mart• Toyota• P&G• UPS

Age of informationConnected PCs and supply chains meanthose that controlinformation flowdominate• Amazon• Google• Comcast• Capital One

Age of the customerEmpowered buyersdemand a new level ofcustomer obsession

• Macy’s• Salesforce.com• USAA• Amazon

The past…

Information

Price Location

Then…

Information

Price LocationTech

Today…

Information

Price Location

Welcome To The New Normal: Hyper-adoption

…and “hyper-abandonment.”

Your business needs to dramatically change in the age of the customer or risk

being disrupted out of business.

Delivering on all five market imperatives is 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

Each time a customer is exposed to an improved shopping experience, their

shopping expectations are reset to a new higher level.

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 online shopper’s journey

68%“I am unlikely to return to a

website that does not provide a satisfactory customer experience.”

7%*of consumers agree

with statement “Email offers are usually well timed with my needs.”

7%*of consumers agree

with statement “Email offers are usually well timed with my needs.”

* In 2015, it was 9%!

Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015

Business leaders are prioritizing customer experience in 2016

Personalization is a #1 eBusiness priority

Base 32 eBusiness And Channel Strategy ProfessionalsSource: Forrester’s Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey

Agenda›Breaking away from segmentation as a solution for personalization

›Defining the four key pillars that enable Personalization 2.0: Individualization

›Recommended steps for delivering the next wave of personalization

There is a significant gap between belief and reality with personalization

Product

Personalization has historically been driven by segmentation

Customer Segmentation

Product

Product Segmentation

Product

Other Products

Product

Other Products

Product

Other Products

Product

Personalization based on segmentation

provides the “wrong” experience for most of

your customers.

Relationship

EXPLORE

ENGAGE DISCOVER

Single data points are often used to personalize the entire customer journey

XSingle data point

Relationship

EXPLORE

ENGAGE DISCOVER

Single data points are often used to personalize the entire customer journey

XSingle data pointJust because you know

one thing about the customer doesn’t mean

you know everything about the customer.

Organizations too quickly check the box on delivering “personal” experiences

It is a waste of everyone’s time to personalize

experiences that provide no real value to a

customer’s journey.

Be careful to understand and respect personal boundaries

Proceed with caution: be overt about collecting data, but covert about

communicating what you know about the customer.

eBusiness leaders must help organizations prepare for the next evolution of personalization, which will rely more on the pillars of individualization rather than segmentation.

of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.

Source: Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2015

Q1: How successful are you when you get personalization right?

Q2: How successful would you be if you got personalization right for everyone?

Q1: How successful are you when you get personalization right?

But before we begin . . .

You cannot truly personalize experiences for consumers you cannot recognize

> Customer data = > Effective personalization

Email is a simple way to consistently identify customers…

…and to learn about customers!

The Story of Oakley

An individualization strategy is defined by key technology investments that enable

four unique characteristics and differentiate it from a segmentation strategy

1. Customers are identified and treated as a segment of one using rich customer profiles.

2. Customer data is assessed in real-time and dynamically calculates intent.

3. Personalized content is delivered equally across every screen and channel.

4. Connected technologies enables far richer and more relevant engagements.

It’s easy to think about personalizing experiences in ways we’ve done before

Individualization is seamless customer engagement across an ecosystem

Call center

Text messages

In-store online accessOnline content

Social engagements

Direct mail

Mobile web

Web search

Online checkout

Retargeting

Associate engagement

Virtual agents

Smart TV

Homepage

Packaging

eReceipts

Digital signage

Product reviews

Site search

Outbound callingMe

Can you give me an example?

John Lewis uses mobile location tech to optimize offline customer experience

Package is ready for customer on arrival

Customer is sent notification asking if they would like to collect package

Stock Room is notified of customer arrival and starts to pick the order

App directs customer to collection desk

Discreet plastic “beacons” around the exterior of the store, activate when

customer is 70m away.

› Experiences are built on each customer’s data and used to engage them as a segment of one.

› Engagement technologies capture, measure, and assess dynamically and in real time.

› Engagement is based on current behavior of the customer in the context of past behavior.

› Personalized experiences are seamless across screens, channels, and — most importantly — the digital touchpoints that exist across the enterprise.

Individualization is not segmentation!

. . . it is a business strategy that drives tactics and affects every part of an organization.

Individualization is not a tactic . . .

Security and risk

Enterprise architecture

eCommerce

Application design

Merchandise planning

Marketing

Customer insights

Customer experienceIndividualization:

engaging customers as a segment of one in real

time by listening, capturing, measuring,

assessing, and addressing intent across

every enterprise touchpoint

What should I be doing today?

Not a revolution . . . but rather an evolution

Recommendations

Recommendations1. Identify the gaps in your company’s ability to deliver

individualization.

The North Face learns the “why” of customers shopping instead of the “what”

individualization.

2. Take off your eCommerce blinders and consider every part of the customer journey.

Sephora captures in-store engagement through digital, personal experiences

individualization.

3. Design each digital touch point to both use and collect customer data.

Starbucks app is not for payments, it is a customer data capturing machine

individualization.

4. Focus on creating great customer experiences and avoid crossing boundaries unnecessarily.

Hudson Bay captures personal information in exchange for value without being creepy

individualization.

4. Focus on creating great customer experiences and avoid crossing boundaries unnecessarily.

BONUS Leverage partnerships with digital experts.

Nordstrom expedited digital transformation by partnering with Shoes of Prey

Personalization Maturity Checklist1. Identify the gaps in your company’s ability to deliver

individualization.

4. Create exceptional customer experiences without crossing personal boundaries unnecessarily.

5. Leverage partnerships with digital experts.

Individualization done right doesn’t look like personalization…

…it just looks like a great experience.

How Can Bluecore help deliver this individualized experience?

Consumers Feel email Offers most individualized experience from retailers

Think about retailers that send communications to you that feel individualized, based on your previous purchases and interactions

with their brand. What’s the most personal way these retailers engage with you? (select only one)

In Sto

Online

AdsOth

Pinter

10%20%30%40%50%60%70%80%

Source: Bluecore / Blue Nile Research Brand Digital Messaging Survey, 2016

Want to learn more?

Announcing…

Bluecore Explore summit 2016

Thursday, September 15, 2016Current, Pier 59 Chelsea Piers

Featured keynotes

Brendan witcherPrincipal analyst,

forrester

Kit yarrowPhd Consumer Psychologist

& Author

Request an invite atBluecore.com/summit

Thank you

Personalization 2.0: The Move to Individualization

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