Contextual marketing is about understanding not just who someone is but where they are, what they are doing, and what they are likely to do next. It’s about combining the right information about a customer and the context to deliver the right services and communication at the precise moment it offers the most value.
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1. FROM SEGMENTATION CONTEXTUAL TO MARKETING - GROWING VALUE
THROUGH PERSONALIZED EXPERIENCESTOM NICKELSWWW.AVAUS.FI IMAGE BY
MAURITSON FOTO / FLICKR
2. 2 We combine strategy, analytics and design with technology
and outsourcing services.DRIVINGBUSINESS Focus areas: Digital
transformation Customer growth Digital sales and B2B Lead
management Business model & service innovation Business process
efficiency
3. SOME GREAT COMPANIES WE WORK WITH: 92 SPECIALISTS OFFICES IN
HELSINKI, FINLAND AND WROCLAW, POLAND REVENUE 10 MILLION (est.
2012)
4. WHY SEGMENT CUSTOMERS ?
5. CREATING A COMPETITIVE ADVANTAGE BASES FOR
DIFFERENTIATIONIts difficult to differentiate basedon price or
product charac-teristics. It might work for awhile, but usually
competition UNIQUEcatches up. PRODUCTHowever REALLY KNOWINGYOUR
CUSTOMERS andserving them based on theirindividual needs will set
youapart. COST ADVANTAGEBut traditional segmentation isNO LONGER
ENOUGH TO CUSTOMERCREATE CUSTOMERINTIMACY. INTIMACY
6. THECHALLENGE:THIS IS WHAT YOU SEE, BUT IT IS NOT REALLY ME A
LOT OF THE CUSTOMER INFORMATION COMPANIES CURRENTLY USE ISNT REALLY
FOCUSED ON GETTING TO KNOW WHO THEY ARE AND WHAT THEY NEED. AND
ABOVE ALL IT DOESNT TELL MUCH ABOUT WHAT THE SITUATION THE CONTEXT
OF THE CUSTOMER IS RIGHT NOW.
7. THIS ISME Father of three, devoted husband Houseowner Live
outside city Entrepreneur, owner of midsized business Gadget freak
Time strapped, convenience oriented Eco consiousness on the rise
Fair price, not necessary cheapest Prefer digital channels Visited
website yesterday, looked at product page
8. MARKET VALUE NEED CONTEXTIN WHICH MARKET HOW CAN WE GROW
WHAT SHOULD WE HOW SHOULD WE TREATSHOULD WE INVEST? LIFETIME VALUE?
OFFER? A SPECIFIC CUSTOMER? SEGMENTING ON A SEGMENTING BASED ON
SEGMENTING BASED SEGMENTING BASED ONMARKET LEVEL. FOR CUSTOMER
VALUE. FOR ON DIFFERING THE SITUATION OF THEINSTANCE CORPORATE
INSTANCE HIGH-VALUE, ATTITUDES AND NEEDS. CUSTOMER. FORCUSTOMERS VS
CHURN-RISK VS FOR INSTANCE TASTE, INSTANCE VISITED WEB-CONSUMERS.
UNPROFITABLE CONVENIENCE, OR SITE, ORDERED SPECIFIC CUSTOMERS.
COST. PRODUCT OR IS AT LOCATION X. Different approaches to
segmentation
9. THE HEART OF Products/CUSTOMER INTIMACY IS services in
useRELEVANCE Customer lifecycle Purchase history IS HELP FROM THIS
COMPANY RELEVANT IN THE NEAR FUTURE? Contact DAYS TO history MONTHS
IS THIS SOMETHING I Web searches RELATIONSHIP NEED RIGHT NOW?
CONTEXTREAL-TIME Visit to webpage Purchase IMMIDIATE CONTEXT
Expressed PERSONAL needs Call to CC CONTEXT Area of Weather
residence Location Preferences YEARS Lifestage IS THIS IMPORTANT
Attitudes TO ME IN LIFE? Social connections
10. understanding context + CUSTOMER REAL-TIME PROFILE DATA
BEHAVIORAL DATA Contextual marketing is about understanding not
just who someone is but where they are, what they are doing, and
what they are likely to do next. Its about combining the right
information about a customer and the context to deliver the right
services and communication at the precise moment it offers the most
value.
11. PERSONAL CONTEXT Needs-based segmentationWhat should we
offer?
12. Different needs and motives drive the development of
customer offeringsAtoB Status Convenience Lifestyle Green valuesI
need a car to I have money and I need to be able The car goes along
I appreciateget from one power, and I want to trust my car. It with
my lifestyle. I ecological values.place to another to show it to
always functions have my own My car does not others. Everybody the
way I wish. personality and I pollute the admires my car. want to
experience nature. it through my car.
13. IMMIDIATE CONTEXT Behavioral triggersWhen is the best time
to communicate?
14. TIMING HAS A BIG EFFECT ON RELEVANCEWHEN? Knowing when a
product or service is relevant to the customer is one of the
hardest things to do. But one that potentially pays of big time.
Identifying the right customer behavior that SIGNALS THE MOST
PRESSING CUSTOMER NEEDS and triggering communication based on that
may increase relevance and sales SIGNIFICANTLY.
15. SIMPLE REACTIONS TO CUSTOMER ACTION WILL MAKE THE CUSTOMER
FEELTHAT YOU RECOGNIZE HIM IT HAS A CLEAR FEEL-GOOD FACTOR TO IT.
(and it affects sales)
16. IMMIDIATE CONTEXT Contextual advertising How can weprovide
relevant ads?
17. 18
18. REMARKETING RELEVANCE TAKING REALTIME RELEVANCE ONE STEP
FURTHER - KEEPING UP WITH THE CUSTOMER CONTEXT ONLINE Company User
website leaves Popular sites Web user CLICK User returnsRemarketing
is a feature that lets you reach people who have previously visited
your site, and show them relevant ads when they visit other sites.
- Google
19. IMMIDIATE CONTEXT Mobile contextWhat interesting is
nearby?
20. The worlds finest department store brings the greatest
international brands to iPhone. In-store, navigate your way around
4,000 of the worlds most premiumbrands over 1 million square feet
and 7 floors.
21. RELATIONSHIP CONTEXT Customer scoringWhich customers are
most likely to buy?
22. FOCUS SALES EFFORTS ON THOSE THAT ARE READY TO BUY The
different situations of customers and prospects should be
recognized. Some are just doing initial browsing, while others are
seriously thinking about buying. To optimize sales results we need
to distinguish between customers in different phases of the buying
cycle. Automated lead nurturing programs can be used for customers
that are not quite ready yet. That allows us to focus scarce sales
resources on customers most likely to buy. Image:
www.smallbizwithkids.com
23. Scoring leads in order to find customers that are ready to
buy Lead scoring is a sales and marketing methodology for ranking
leads in order to determine their sales-readiness. You score leads
based on the interest they show in your business, their current
place in the buying cycle and their fit in regards to your
business.Image: Marketo The definitive guide to lead scoring
24. RELATIONSHIP CONTEXT Predicting needsWhat will each
customer likely need next?
25. PROPENSITY WHICH CUSTOMERS ARE LIKELY TO BUY SOMETHING,
LEAVE OR DO OTHER SIGNIFICANT THINGS? THROUGH PREDICTIVE MODELLING
TARGETING CAN BE MADE MORE EFFICIENT. THIS HAS A POSITIVE EFFECT ON
BOTH THE BOTTOM LINE AND ON THE CUSTOMER EXPERIENCE.
26. PERSONALIZE MAKE COMMUNICATION MORE RELEVANT BY ADAPTING IT
TO THE NEEDS AND CONTEXT OF THE INDIVIDUAL CUSTOMER.
27. RELATIONSHIP CONTEXT Segmentation based on contextHow can
we add value tothe customer experience?
28. MAPPING THE CUSTOMER JOURNEY WILL HELP TO DEVELOP THE
SERVICE EXPERIENCE IN MORE DETAIL SEGMENT 1: The classic family
traveler goes on holliday with the family and children. The
scenario illustrates high , low and neutral emotional points.
FAMILY They want certain services that make traveling with children
easier and These all represent a potential customer experience
design opportunity. that create unforgettable experiences for the
whole family. TRAVELER PRETRAVEL TRAVEL POSTTRAVELBEHAVIOR RESEARCH
BOOK PREPARE LEAVE STAY RETURN REMEMBER SHARE Look for inspiration
Efficiently book Look forward to Travel to Enjoy the Travel back
home Enjoy memories of Share experience and plan the trip and pay
the trip trip destination destination experience with
friendsCUSTOMER SCENARIO DESCRIPTION Hears about Collates the Reads
about the Checks in at the Relaxes at the hotel Packs and checks
Discusses Tells friends about experiences from package (pricing
etc.) destination airpot out from hotel experience and experience
friends Enjoys local memories with family Makes Tells friends about
Excited about attractions Leaves for the Shares photos via Receives
reservation own plans flight to destination airport and checks in
Looks at photos email or uploading to communication Eats out at
hotel or from trip photo sharing site Wants to include Plans
activities at Solves local restaurants Sad about flying Resarches
and personal requests in the destination unexpected problems home
Enjoys stuff bought Gives feedback via compares destinations own
order during transit Excited about on trip tour operators online
online Receives shopping opportunities Solves questionaire Pays the
communication Finds bus and unexpected problems Order print photos
Unsure about reservation travels to hotel Goes on trips to during
transit or album Positively surpised where to travel Asks questions
nearby attractions by offer for new trip Receives (GOL, contact
center) Meets Arrive at airport Thinks about the Excited about
confirmation Finnmatkat guide Taking photos of and travel home
experience by him/ attractive price offer Prepares for family and
sights herself Unsure about traveling by packing etc. Checks in at
hotel Unpack Chooses travel details Solves unexpected destination
and plans Receives Enters own hotel problems (with guide)ENJOYMENT
own holliday information about room changed travel details Solves
problems + with hotel/room
29. A SEGMENT OF ONE. NEW PLAYERS FOCUSING ON ADDING VALUE TO
THE CUSTOMER CONTEXT ENTER OLDMARKETS. THEY BREATHE LIFE INTO THE
MARKET BUT MAY ALSO SHAKE UP THE VALUE CHAIN. + runtastic Roadbike
is your comprehensive bike app for your smartphone. The integration
of heart rate, cadence, and speed sensors lets you get more precise
tracking and analysis of your biking
30. RELATIONSHIP CONTEXT Value based segmentationWho are our
most valuable customers?
31. value Segmenting customers based on Most valuable Most
growable customers: Retain customers: Grow Marginal customers:
Business as usual Unprotable customers: Dismiss or lower cost Cost
to serve Customer value segments Current value Potential
valueImage: Peppers & Rogers group
32. Developing customer STRATEGIES CUSTOMER ISSUEBUSINESS
CHALLENGE with reasons to stay Understand me and provide meRetain
high value customers (e.g. Loyalty recognition, Next be st action)
purchase more Provide me compelling reason toBroaden the
relationship Remarketing) trig gers, (e.g. Next best action,
Behavioral t, competitive offers Understand me and make
relevanAcquire the right customer (e.g. Exclude high defectors,
Debt risk, Matching customer type)Improve margin of Can I be
satisfied with less to sel f-service, Raise prices) (e.g. Identify,
Communicate, Steerunprofitable custmers
33. ANOTHER PERSPECTIVE ON CUSTOMER VALUEENGAGEMENT
Interactions CUSTOMER VALUE Money spent
34. What next?What does it take tointroduce contextual
marketing?
35. TO SUMMARIZETHERE ARE MANY WAYS TO IDENTIFY
CUSTOMERCONTEXTS USING ONLY ONE IS NOT ENOUGH BUSINESS
Personalisation Value Proposition NEED / Targeting management
development CONTEXTUAL INDICATOR RECOMMENDATION ENGINE
TRANSACTIONAL / VALUE BEHAVIORAL PROPENSITIES DEMOGRAPHICS /
GEOGRAPHY LIFECYCLE ATTITUDINAL NEEDS Useful Sometimes useful Not
useful on its own
36. INVEST IN
DATA10011001010011101001100100011001100111001100011001101001001100101001110100110010001100110011100110001101001001100101001110100110010001100110011100110001
Good data is like the ears of a sales man. Without it
you101001001100101001110100110010001100110011100110001 have no clue
what the customer needs. Integrate traditional customer profile
data with real-time behavioral data from all channels in order to
UNDERSTAND the need and REACT to the context .
37. Real-time segmentation the here and nowFor relevance to be
meaningful, it must be as close as possible to real-time. JUST LIKE
BREAKING NEWS, RELEVANCE HAS A SHORTSHELF-LIFE and has its greatest
value at the moment something occurs.
38. REACT INREAL-TIMERELEVANT TIMELY INTERACTIONS ARE POSSIBLE
ON A GRANDSCALE ONLY THROUGH AUTOMATING PROCESSES.
39. CREATE BIG EMOTIONS Ive learned that people will forget
what you said, Apple. Zappos. Net-a-Porter. people will forget what
you did, but people will never forget how you made them feel. Maya
Angelou, american poet 42 avaus.fi website