Get Personal Across Touchpoints

Customer Interaction Model of the Future

How to Get Personal AcrossMulti-Channel Touchpoints

Michael R. HoffmanCustomer Experience Expert & Partner

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Presentation Goals

Make you more successful as measured by:

• Get you a pay raise

• Make you the envy of your peers

• Get you home on time

• Peaceful night’s sleep

• Unprecedented prestige and power

• Make your life easier

• And “Yes” Customers will love you!

3

Get Personal Agenda

Why are we here again?

It’s a customer world – we just live in it

We all work for companies – now deal with it

Begin with the end in mind – if you had all the time and money…

Get personal across multi-channel touch points using a Customer Experience Framework

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The purpose of a company is “to create a customer…

The only profit center is the customer… Therefore the business has two—and only two—basic functions: marketing and innovation.

Marketing and innovation produce results: all the rest are costs.”

- Drucker

Company’s Purpose?

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We Do What for a Living?

“Each day, marketers expose Americans to some 12 billion display ads, 3 million radio ads, and more than 300,000 television commercials.”

The average U.S. consumer receives roughly 1 million marketing messages a year across all media, or about 3,000 messages per day…

From Net Worth, John Hagel III, Marc Singer

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Consumers & the “Instant Gratification Button”

“Today, the average American is exposed to 1,500 ads every day, ranging from traditional sources such as billboards, radio spots and newspaper classifieds to Web banners and pop-ups.”

- YOUR AD HERE

Sunday, April 09, 2006

Denise Trowbridge

THE COLUMBUS DISPATCH

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Radio

Internet Ads

FSPs

Direct Mail

FSIs

In-Store TV

Network TV

Newspapers

DVD Trailers

High Impact Product PlacementsRetailtainment

Outdoor Signage

Coupons

Movie Theater Ads

Customer Service

Content Implants

In-Store Sampling

Mega-EventSponsorship

Cable TV

Print

Permission-Based E-mails

21 and just starting…

We Create Messages to Sell Something to Prospects and Customers

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Plan Marketing Goals and Budgets

Execute MarketingTactics

Analyze and MeasurePerformance

Collaborate acrossGroups

Capture and Deploy

Best Practices

How Long is Your Cycle Time?

In the Old Days, This Seemed Easier?

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The Need to Automate – Productivity, Relevance, Synchronicity

Old Time Current Time What’s Next?

Broadcast TV 6-9 Months 1 – 12 weeks YouTube, Cam2Web

Direct Mail 3-5 Months 1-2 weeks Direct to Print

Sales/Field Training 3-6 months 1-3 months SFA/CRM Tools

Newspaper Print 2-4 weeks 1-2 weeks Digital Press

Magazine 3-6 months 2-3 months Digital/V Press

Brochure 1-4 months 1-3 weeks Direct to Print

Signage 1-4 months 1-8 weeks Digital Signs, Web connected

Website 1-4 weeks Day parts Multi-party, Dynamic content

Email Weekly Daily Triggers, dynamic content

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DM Variables with Traditional % Performance Contribution

List 50%+

Targeting & Segmentation

Offer 20%

What’s the deal?

Creative 10%

Copy & Art

Media 20%

Sequence & Frequency

How many departments’ resources support advertising and marketing processes?

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Plan Marketing Goals and Budgets

Execute MarketingTactics

Analyze and MeasurePerformance

Collaborate acrossGroups

Capture and Deploy

Best Practices

How Long is each Cycle Time?

How Many Departments Go through This Same Process to Communicate with Customers?

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Marketing is a Whole New Game

Message obsolescence

Highly complex offers:

• Promises

• Delivery

• Payments

• Service

• Membership

Buyer sophistication: How many people have sold on ebay?

Transparency – SARBOX, blogs, review sites, documentation, partners web sites, wholesalers, specialty manufacturers and assemblers

Legal

Globalization - Buy and sell anywhere

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Radio

Internet Ads

FSPs

Direct Mail

FSIs

In-Store TV

Network TV

Newspapers

DVD Trailers


Outdoor Signage

Coupons

Movie Theater Ads

Customer Service

Content Implants

In-Store Sampling


Cable TV

Print


21 and just starting…

Through segmentation and permission practices we match product

and service attributes to customer needs, wants and interests.

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1960 – Mass Media Matures 2004 – Mass Media, RIP

TV channels per home:

5.7

Magazine titles: 8,400

Radio stations:

4,400

TV channels per home:

82.4

Internet broadcast stations:25,000+

Radio stations:13,500

Magazine titles:

17,300

4.4 billion pages

indexed by Google

Media Proliferation 2004 vs. 1960

% of Email Identified as Spam

June, 2003

July, 2004

49%

65%Source: Brightmail.com Aug. 2004

In addition to feeling constantly time-pressured, consumers are reeling from information overload, causing most to “blank-out” on all but the most personal or relevant messages:

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TelevisionWhile watching:

RadioWhile listening:

NewspapersWhile reading:

OnlineWhile connected:

74%Read the newspaper

57%Go online

52%Watch TV

62%Watch TV

66%Go online


50%Listen to the radio

52%Listen to the radio

18%Watch TV


Source: October 2003 BIGresearch SIMM survey

Media Multi-Tasking

Even when consumers do focus on media, more than 70% use different types of media simultaneously

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Radio

Internet Ads

FSPs

Direct Mail

FSIs

In-Store TV

Network TV

Newspapers

DVD Trailers


Outdoor Signage

Coupons

Movie Theater Ads

Customer Service

Content Implants

In-Store Sampling


Cable TV

Print


…Start here

Not One Voice – One Set of Ears, Eyes or Experiences

The Customer is the final arbiter of business success.

But how are you supposed to manage all these moving pieces, synchronize your tactics and respond to changing market and individual customer conditions all at the same time?

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Customer Experience Framework for Marketing Automation

Customer Perspective:

• Role of Channels & Media:

When I want “X” (product) I go to “Y” (channel) with “Z” expectations. The result of my interaction = my experience.

Experience is multiple paths and path combinations based on customers needs, tastes, preferences and values (segmentation)

Company campaigns and tactics at each interaction influence customer behavior (good or bad = binary)

Time series of activities and activity combinations used to predict outcomes and prompt tactics (very good for modeling).

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Map Programs to Lifecycle by Segment/Channel

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Marketing Architecture Needs an Overhaul

Drivers:

Privacy & intimacy

Partner issues

Time poor – customers, company, partners, regulators, influencers

Legal issues

• data sharing

• fraud

• traceability

Customers more sophisticated – You must differentiate experience to earn premium margin

Technology is available to handle customer experience management (You are here!)

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Welcome to Marketing 2010

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Automation: [aw-tuh-mey-shuh n]

1. the technique, method, or system of operating or controlling a process by highly automatic means, as by electronic devices, reducing human intervention to a minimum

2. a mechanical device, operated electronically, that functions automatically, without continuous input from an operator.

3. act or process of automating

4. the state of being automated

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Automation Benefits

Not ”do more with less” but “must do more to stay relevant” Transparency

• Promotes company, partner, customer, vendor collaboration

• Visualization for company-wide customer understanding

• Legal and financial Design Fitness

• Improves speed to market

• Reduces specialty knowledge dependence

• Integrates all contributors Elegant design required Prepares platform for continuous improvement Focus resources on areas for highest return Flexible resource deployment across all channels Imbeds key functions: Design, company, legal, production, execution,

measurement rules

What’s Left?

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10 Step Automation Program

Step 1: Decompile the customer experience by lifecycle

Step 2: Categorize marketing campaigns by life cycle

Step 3: Link channels to customer lifecycle

Step 4: Apply campaigns to channels & lifecycle – test for fitness

Step 5: Expose creative & offer combinations

Step 6. Add dashboards to reporting

Step 7. Measure performance by customer

Step 8. Continuous and automatic testing

Step 9. Bolt-down low maintenance/moderate value programs

Step 10.Set value based performance alerts

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Quick Campaign Attributes Review

List 50%+

List source, segmentation, predicted & historic values, performance metrics…

Offer 20%

price, terms, delivery, premium, time limit…

Creative 10%

copy, graphics, theme, interests…

Media 20%

Sequence, channels, frequency…

How many departments’ resources support advertising and marketing processes?

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Step 1: Decompile the Customer Experience by Lifecycle

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Special Offer

Sweepstakes

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Offers by Lifecycle Objective

Corporate Standard Templates: embed strategy & objectives

Step 2: Categorize Marketing Campaigns by Lifecycle

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Campaign Components

List = Lifecycle (further refined by sub segments)

Offer: Automated uses tactic templates in program library for core programs and sub-programs (i.e. non-response, inquiry follow-up, multi-channel orchestration); automate what works

Creative – Remains Variable, set dynamically combining “offer set” + “channel” + “list”

Media - Next slide

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Step 3: Link Channels to Customer Lifecycle

Email outbound

Email inbound

Household Mail

Phone - Outbound

Phone - Inbound

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Customer Perspective: “ When I want “X” I go to “Y” channel and have “Z” expectations

Direct – (sample adapted to business)

• Personal Email – inbound, outbound

• Business email – inbound, outbound

• Household email – inbound, outbound

• Mail box

• Special Courier

• Front door - Account representative, special courier, service call

• Home Phone – inbound, outbound

• Cell Phone – inbound, outbound

• In Statement

• Packaging

Digital (anonymous)

• Search

• Web site each section:

• Banner Ad

• Search

• Multi-media phone

• Kiosk

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Sample Additional Channel Categories

Location

• In store

• Kiosk - atm Geography

• Television

• Radio

• Television

• Billboards

• Events Third party

• Partner

• Magazines

• Resellers

• Experts

• Reviewers

Community

• Word of mouth

• Clubs

• Organizations

• Social networks

• PR

• Outreach

• Charities

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Email outbound

Email inbound

Household Mail

Phone - Outbound

Phone - Inbound

Special Offer

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Step 4: Apply Campaigns to Channels & Lifecycle – Test for Fitness

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Step 5: Expose Creative and Offer Combinations -Interface and Design will Relieve Marketers of Complex Logic and Stress Continuous Improvement

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Step 6: Add Dashboards to Reporting for Everyone’s Use

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Good Metrics – But How do they Relate?

# of impressions

Time on page

# of promotion imp.

# of unique visitors

# of registrants

# of registrants

Registration breakage

# Information given

Response rate

Opt out rate

Breakage

Time in program

Defection rate

LTV

RFM

Defection rate

Customer balance sheet

Awareness Registration Interaction Purchase

Measures

Customer life cycle

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Direct

Location

3rd Party

Community

Not One Voice – One Set of Ears, Eyes = One Set of Experience(s)

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Direct

Location

3rd Party

Community

Change/Month

Cost per Cust.

Revenue/Cust.

15% Growth

$1.5/Cust

+3% $ Rev

$16/Cust

$130 R/Cust

+11% $ Rev

$61/Cust

$715 R/Cust

+6% $ Rev

$23/Cust

$1630 R/Cust

+14% $ Rev

$31/Cust

$1119 R/Cust

Step 7: Measure Performance by Customer

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Rate Your Competition/Set Performance Goals

Us = Blue Competitor = Red

Direct B A A C A D A C C D

Location A C A C B A B A B A

3rd Party C C F B C C C C C C

Community A D A D F B F B F B

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Campaign

Offer B Offer A Default

Continuous Results

Feed

Control

If B > A Then B = A Then

New A

Step 8: Continuous and Automatic Testing

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Step 9. Bolt-down low maintenance/moderate value programs

Email outbound

Email inbound

Household Mail

Phone - Outbound

Phone - Inbound

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Continuous Results

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Step 10. Set value based performance alerts

Set performance thresholds

• Low performance – triggers alert to highlight program, campaign and down stream impact for re-allocation of resources

• High performance triggers alert to increase investment, adjust down stream resources and expectations

Design aligns objectives, resources, systems, channels to direct alerts to responsible authorities.

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TECHNOLOGYCOMMUNICATION

PROCESSKNOWLEDGE

PEOPLECEM

Customer Experience Management Starts with PEOPLE

Prospect Acquire Convert Grow Retain Re-Activate

Technology is the Enabler - Not The Solution

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Pay Attention to Technology Developments

Business Process Management Concept (BPM): Every function can be reduced to a series of components and assembled as a process. (Great concept – Integration still the issue)

Service Oriented Architecture: Fluent operations across systems based on interoperability standards

Digital Asset Management (DAM): Every interaction should be treated as asset; catalogued & monetized (think what would Google do?)

Software as a Service (SaaS): Services/Functions by the glass or from libraries)

User Created Media – what are your guide lines? Should you host, threaten, observe, buy?

Voice

Customer Experience Simulation

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Summary

Automate what works

• Visualize Customer Experience for “customer perspective”

• Categorize interactions for unified management

• Manage tactics as programs

• Put standard programs on auto pilot and test key variables at tactics level

Spend your time Innovating

• Promote customer process transparency so everyone in company “get’s it”

• Use simple Matrix to brainstorm

• Drop competitors and new markets on Matrix and see what happens

• Create excellently choreographed customer experiences that grow margins and markets

• Customers will love your company (each segment for their own reasons)

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Please contact Michael Hoffman for additional information:

Michael Hoffman, 908.350.3012

[email protected]

mailto:[email protected]