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Using Human Data And Reciprocity Of Value For CX InnovationErnan Roman, President, ERDM Corp.
David Page, SVP, Brand Strategy & Research, Rent The Runway
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Ernan RomanPresident, ERDM Corp.Author, Voice of the Customer Marketing
Inducted into the DMA Marketing Hall of Fame based on the results companies achieve with ERDM's VoC research-based CX strategies.
ERDM conducts specialized VoC research to identify CX strategies that generate significant increases in revenue. Clients include IBM, MassMutual, Gilt, QVC, HP, Microsoft and Norton AntiVirus.
His influential blog Ernan's Insights on Marketing Best Practices appears in Forbes, Huffington Post, CMO.com, CustomerThink, CRMC and Business2Community.
Named by the Online Marketing Institute as one of the Top 40 Digital Luminaries and by Crain's B to B Magazine as one of the 100 most influential people in Business Marketing.
Ernan's latest book is titled Voice of the Customer Marketing.His other books are Opt-in Marketing and Integrated Direct Marketing.
ernan@erdm.comwww.erdm.com@ernanroman
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David PageSVP, Brand Strategy & ResearchRent the Runway
David has 20 years experience in advertising as a Strategist, working in both London and the U.S..
During that time he has worked for a number of major agencies, including Crispin Porter & Bogusky, Anomaly, DDB, BBDO, Havas, and Ogilvy in both London and New York.
Clients have included Kraft Foods, Ford, Reckitt Benckiser, Jaguar, Unilever, Coca-Cola, Mars, Volkswagen, Microsoft, Intercontinental Hotels, Barclays Bank and Intercontinental hotels. His work has been recognized with effectiveness awards from both the IPA and the Effies; along with creative awards from Cannes, One Show and the Andy's.
He joined Rent The Runway in 2015.
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Agenda
VoC research findings;How you should use human data to achieve effective personalization and transform your CX.
How Rent the Runway, the world’s largest designer fashion rental business, is using customer data and personalization to innovate many aspects of its Customer Experience.
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VoC; Current CX & Personalization
“What we receive is not smart
personalization. They aren’t
personalizing the things that matter to
me!”
“What they consider
personalization is so
old-fashioned.”
“I want more than just buying
history-based emails.”
“With today’s technology, I
expect emails to reflect my
interests and preferences.”
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CMO of a Fortune Company;
“We are using new CRM technology to automate old bad behaviors…not guided by how customers define
improved CX. Result; high tech, irritating and brand damaging spray and pray.”
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VoC; Transformational Findings
In spite of increased privacy concerns (Apple/NSA/Snowden)…
BtoB and BtoC customers are willing to provide trusted brands with deep business and personal information in exchangefor more personalized offers and communications.
This fundamentally reframes data privacy concerns because of reciprocity of value!
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VoC-based Reciprocity of Value Equation
Consumer Reciprocity
Recognition that; to receive true personalization, must provide deep personal or business preference information.This marks the shift to explicit vs implicit personalization.
BusinessReciprocity
Commitment by marketers; to provide “smart” personalization. To be truly personalized, must be based on more than transactional, overlay and inferential data.
+
“Human Data” BtoB or BtoC opt-in self profiled information: • Key issues, needs,
expectations • Decision-making process• Messaging and media
preferences • Self-described personality
types, attitudes, life stages.
+
CX Innovation
=
1212
MassMutual; VoC Insights
“I don’t want marketing when it comes to these major issues. You can market bread and laptops and cellphones and Toyota
Camrys, but this is my life you’re talking about! I’m not looking to be marketed to.
I’m looking to make life decisions.”
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Results from Human Data Personalization
Year 11 Segment
Year 224 Segments
Year 324 Segments
Segm
ents
Target
Response rate
198 K
2%
365 K
4%
350 K
8-‐10+%
One segment, generalized messaging for all
Personalized imagery by age, gender, channel, language
Truly personalized& segment specific
content and imagery
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VoC-based Opt-in Email Pilot
Discussed financial issues identified in VoC. Combined humor and recommendations.
Tested providing episode updates based on Opt-in preferences vs. Control population.
Created online “edutainment” talk show, SmartView. Ongoing episodes.
Results: Opt-in vs. Control
94%Higher open
rate
1,062%Higher video
views
ZeroUnsubscribes
100% Deliverability
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VoC Research: Explicit, Proactive Personalization
The Problem: Customers want explicit and proactive personalization.
The Solution: Empower customers to drive their personalization
• Example; use dialogue boxes to engage customers in explicit personalization
• Make the customer feel heard by asking for feedback on helpfulness• Ask, but don’t interrupt the shopping flow• Distinguish between same brand, similar brand, similar product, etc., to
account for the intricacies of user preferences
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VoC: Explicit, Proactive Personalization
• Contextual Brand Favoriting• Ask at the right touch points in the customer cycle• Allow customers to explicitly tell Gilt when they like a brand,
rather than guessing• Use these preferences to personalize the experience site wide
We’ve added this to your Waitlist.7 for all MankindThe Skinny Distressed JeanColor: Authentic OceanSize: 06
Great! We will now let you know when this brand is back on Gilt.
ü Favorite Brand Love this brand? Add it to your favorites and be the first to know when it’s on sale. Manage your
favorites in your profile.
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VoC: Explicit, Proactive Personalization
Filter for Me• Engage shoppers to customize their experience –
based on a compelling value proposition
• Example; By adding sizes in their profile, they can filter sales to show only what’s in stock that will fit
The Takeaway: Customers understand personalization. They don’t fear it; they embrace it. They want to it to be appropriate and they want to customize it.
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“Smart” Personalization works!
Personalization drives engagement by increasing order conversion rates, return visits, overall engagement and decreasing email unsubscribe rates.
Long-‐term A/B test for email Personalization8%
7%
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
1 2 3 4 5
Conversion lift Unsub Rate Delta
20
Agenda
VoC research findings;How you should use human data to achieve effective personalization and transform your CX.
How Rent the Runway, the world’s largest designer fashion rental business, is using customer data and personalization to innovate many aspects of its Customer Experience.
The danger is to ask “what data do we need?”
And then go about finding a way to get it.
But if you start with the customer, the potential benefit to them will be more readily apparent.
Their knee jerk reaction won’t be,“why should I tell you that?”
You might be surprised at what they reveal…
…it will make life a lot easier
Rent the Runway Reviews Platform
Not just good and bad reviews.
But reviews from women like them, with pictures, and their statistics.
Searchable by “women like me”.
Helps them decide if a dress will suit them, and fit them.
Women sharing data to pay it forward and help other women.
3X CONVERSION ON PRODUCTS THAT HAVE REVIEWS COMPARED TO PRODUCTS THAT HAVE NO REVIEWS
What’s good for the customer, is good for the business.
Rent The Runway Personalization Approach
Ask yourself, “what do we already know about each customer?”Building personalization strategy primarily with existing data:—Date searched—Product views—Short Lists/Hearts—Previous ordersWe know what people are looking at, liking and renting…
We don’t know why they’re looking, liking and renting…
We need to know the “event.”
It connects all the other data, it helps us make sense of all the other data.
So this is the only piece of new information we are seeking.
We’re missing one critical piece of information…
This can transform our customer experience strategy
ONBOARDING
DYNAMIC HOMEPAGE
EVENT HUBS
SELF-SERVICE
REFERRALS
REVIEWS
TRENDING EVENTS
SHOPPING BAG
RECOMMENDATIONS
DATE
VIEWS
EVENTS
NAME
PURCHASES
INSPIRATION
LOOKING
RENTING
PRE–EVENTEVENT
POST–EVENT
ADVOCATE
Carry personalization into every channel
If we “recognize” them online, we need to do the same in-store.
As Beacon technology becomes more commonplace, customers will expect it even more.
Customer Service can’t act like it is the first time you’ve spoken.
As shift from “case-based” model to “customer-based”, true CRM model.
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Additional Information for You
• PPT & 12 Point CX Innovation Check List
• Ebook; 8 Essentials for Effective Online Communities
• 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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CX Innovation Check List
3 strategies for delivering on customer expectations;
• Capture individual preferences
• Use preferences to drive true personalization
• Establish guidelines for safeguarding data privacy.
1Don’t ruin the hard fought gains by sending “spray and pray” blasts which disregard preferences in hopes of generating extra sales.
2Find the right mix between implicit and explicit data: using only implicit data is not enough to power true personalization.
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CX Innovation Check List
Consumers define personalization as much more than “those old-fashioned”transaction-based communications;“Communications should reflect my individual preferences”.
4Change company culture and thinking; • From “how does this
benefit us?” to “how does this benefit the customer?”
5Insights from customers are a privilege, not something you are entitled to.
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CX Innovation Check List
Understanding the Seller’s Journey (your sales channels) is as critical as knowing the Buyer’s Journey.
7Enable preference-based personalization across every channel.
8Motivate/incent customers to provide ongoing feedback about the relevance of your offerings and communications.
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CX Innovation Check List
To drive Change, shift focus from E (Expense) to R(Revenue).
10Ensure that every department and channel uses and respects, customer preference information.
11Create programs that recruit your best customers to drive social engagement.
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