MARKETING TECHNOLOGY

Karol Bzik

9.12.2015

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”Personalization and automation are taking center stage as retailers work to deliver more

relevant messages more efficiently”

Source– http://www.criteo.com/media/2265/etail-trends-in-digital-retail.pdf

70%ONE-TIMEBUYERS

98%VISITORSNEVER

CONVERT

7XCOSTSOF

NEWVS.REPEATORDER

SHORTLIFECYCLE

67%PURCHASESAREABANDONED

Source– http://www.retentionscience.com/why-measuring-your-customer-churn-rate-increases-revenue/,http://uk.businessinsider.com/heres-how-retailers-can-reduce-shopping-cart-abandonment-and-recoup-bil lion s-of-dollar s-in-lo st-sale s-2014-4

30%OFCUSTOMERSBUY

ONLYONCE

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GROWTH FRAMEWORK

4

P

EARNEDMEDIA

OWNEDMEDIA

PAIDMEDIA

UX,UI

CONVERSION(micro&macroconversions)

RETENTION(repeat order,reference)

ACQUISITION(new customer)

O

E

U

P

OE

U

P

O

E

U

P

A

C

RO

E

U

A

R

C

PRODUCTPRICING

PROMOTIONSCUSTOMERCARE

BUSINESS

PROBABILITY & TIME BETWEEN NEXT PURCHASE

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1 2 3 4 5 6 7 8 9

Repeat

purchase

probability

Number of orders

1-7days

17%

7-14days

18%

14-30days

15%

30-90days

27%

90-180days

16%

over180days

7%

TIMETONEXTPURCHASE

PROBABILITYOFNEXTPURCHASE

Source– https://rjmetrics.com/resources/reports/ecommerce-buyer-behavior/

GROWTH FRAMEWORK

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O

E

U

P

OE

U

P

O

E

U

P

A

C

R

PRODUCTPRICING

PROMOTIONSCUSTOMERCARE

BUSINESS

ACQUISITION• NC(NewCustomer)• CAC(Cost ofCustomer Acquisition)• NCAC(Cost ofNewCustomerAcquisition)

• LTVNC,T (Predictive Lifetime Value)• ROAS(ReturnonAdSpend)• ROILTV (ReturnonInvestmentwithLTV)

• TBEP (TimetoBreakEven Point)• T1stP (TimetoFirstPurchase)

CONVERSION• Conversions &CR(ConversionRate)• Microconversion &mCR• CPmC (Cost PermicroConversion)• Funnels• Churn rate• Exits/abandonments• Customer Journeys

RETENTION• RCAC(Cost of Repeat CustomerAcquisition)

• RO(RepeatOrder)• LTVt (Lifetime Value)• LTVn,p (Predictive LifetimeValue)• Pn (Probability ofn-th Purchase)• Tn (Timeton-th Purchase)• LifecycleStage• RGU(RevenueGeneratingUnit)• IU(InstalledUnits)

HUE + HADOOP – 4D ANALYSIS IN E-COMMERCE

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ON-LINEPURCHASESANALYSIS

PRODUCTANALYSIS CUSTOMER

ANALYSISOFF-LINEPURCHASESANALYSIS

Source– http://gethue.com/

CUSTOMER JOURNEY – SEQUENCES & LIFECYCLE ANALYSIS

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WEB

MODEL CUSTOMER

WEB

PROMOHUNTER

WEB

TYPICALMAN

WEB

GIFTBUYER

PURCHASE

E-MAIL

GSN

GDN

Subscribed tonewsletter

E-mailwithpromo-code

Remarketing withsalepromotion

Seasonalsale

BroadcampaigninGoogle

E-mailwithdiscount code

VISITS

RFM SEGMENTATION & ANALYSIS

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ADDITIONAL DIMENSIONS

VisitsLTV(monetary)

Lifecycle

0-3031-6061-9091-180181-365366+

10+

6-9

4-5

3

1

2

WIN-BACKE-MAIL

REMARKETINGCAMPAIGN

NEWAT-RISK

PROMISING

LOYALLOYALAT-RISKFORMERLOYAL

FORMERNEW

TIME SINCE LAST PURCHASE

PURCHASES

Source– http://retentiongrid.com/

CUSTOMER IN RFM MATRIX

EXAMPLE OMNICHANNEL ORCHESTRATION ANALYSIS

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WEB

E-MAIL

INFOSITE

WEB (APP)

MOBILE (APP)

OFF-LINE

CUSTOMER CARE

SMS

CALL CENTER

CREATING ACCOUNT MOBILE APP – INSTALLATION AND ACTIVATION

CUSTOMER IN BANKING

EXAMPLE OMNICHANNEL AUTOMATION

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WEB

E-MAIL

INFOSITE

WEB (APP)

MOBILE (APP)

OFF-LINE

CUSTOMER CARE

SMS

CALL CENTER

GETTING LOAN E-INVOICE ACTIVATION

LANDING PAGE

E-MAIL

POP-UP

GDN

GSN

CALL CENTER

E-mail„Howtosave moneywithe-invoice?”

Personalized landing page„e-invoice foryou”

Push notification „You canactivate e-invoice here!”

Remarketing „Checkpersonalized loan offer!”

Welcome pop-up withredirection topersonalized offer

Exit

Remarketing „Are youlooking forloan?”

Customer care – call,talkabout account conditions

andbankoffer

KIBANA + HADOOP + D3.js – OMNICHANNEL ANALYTICS

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OMNICHANNEL ATTRIBUTION

MOBILE„LASTSCREEN/BUTTONBEFOREABANDONMENT”

Source– https://www.elastic.co/products/kibana, http://d3js.org

EXAMPLE WIN-BACK CUSTOMER JOURNEY

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„AT-RISK”CUSTOMERSSTART

STOP

WIN-BACKE-MAIL 1

TIMEANDLOOP

WIN-BACKE-MAIL 2

TAG AS„NON-

RESPONSIVE”

STOP

STOP

WIN-BACKSMS

STOP

WAIT10S

WIN-BACKPOP-UP

STOP

1TIME ADAY,EVERYDAY AT 5A.M., EVERY 30DAYS ONCEPER

USER

ALLCUSTOMERSIN „AT-RISK”

RFMSEGMENT

NEWSLETTERSUBSCRIPTION?

OPENED?

OPENED?

SMSSUBSCRIPTION?

VISITHOMEPAGE?

EXAMPLE CLOSING SALE CUSTOMER JOURNEY

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ALLCUSTOMERSSTART

STOPASSISTANCEPOP-UP

TIMEANDLOOP

STOP

3 ERRORS ON FORM

ANONYMOUSCUSTOMERSSTART

STOPSUBSCRIPTIONPOP-UP

TIMEANDLOOP

STOP

SUBSCRIBEDCUSTOMERSSTART

STOP

TIMEANDLOOP

STOP

WAIT2h

ABANDONEDCART

E-MAIL 1

WAIT2h

ABANDONEDCARTSMS

STOP

STOP

WAIT48h

ADDTAG„UNACTIVE”

STOP

EXIT OVERLAY

ABANDONED CART

EVERY 30DAYSONCE PERUSER

ALLCUSTOMERS,IDENTIFIED ANDUNIDENTIFIED

3ERRORSINONE SESSION?

ONCE PERSESSION

UNIDENTIFIEDCUSTOMERS

CURSOROVERBROWSER

ALL CUSTOMERS,SUBSCRIBEDTONEWSLETTER

EVERYDAYBETWEEN 8AMAND 11PM,

EVERY 30DAYSONCE PERUSER

ABANDONEDCARTWITH

PRODUCTINSIDE

VISITED ANYPAGEIN 2h?

OPENED?

PURCHASE?

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HOW TO BUILDMARTECH SOLUTION?

EVOLUTION OF MARTECH

16

947MARTECHVENDORSIN2014 1876MARTECHVENDORSIN2015

Source– http://chiefmartec.com/

OPEN SOURCE ARCHITECTURE

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MARTECHMODULE

EXAMPLE OF MARTECH TEAM

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MarTech engineer• Transfershisexperiencefrom

e-commercesalesmarketing, totheconstruction anduseofmarketingtechnology;

• DevelopsandcoordinatesMarTech implementation intermsofitssubstance;

• Conducts training oftheoperationand/oroperatesMarTechsystems.

Bigdatascientist• Transformsnumerical and

statisticalanalysistobusinessconclusions;

• Createsanalyticalandstatisticalmodels,e.g.amodelofprobability, segmentation,correlation;

• Prototypes solutions instatisticslanguagese.g.Rlanguage.

Bigdatadeveloper• CreateskeyMarTech

components;• Developssolutions inascalable

technologies, e.g.Hadoop, Spark,Scala,Cloudera.

ProjectManager• Organizesandimproveswork;• Ensuresthecontinuity and

completenessofwork;• Organizesandmanagessprints,so

thattheyaredelivered ontime.

EXAMPLE OF MARTECH DEVELOPING PROCESS

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Customer behaviouranalysis

Prototypeofpersonalization

elements

Testingpersonalizationprototypes

DesigningadedicatedMarTech solution

Implementationandintegration

Goal– to detectkeypurchasinghabits,systemconstraintsanddeveloptheconcept ofsolutionandprojectscope.

Realization– workshop,inputdataanalysis(databaseanalysisintheareas oftrade,productandcustomer),ITsystemsanalysis;preliminarytechnicalanalysis.

Theeffect ofwork– conclusionsfromtheconductedanalyses(usedinmarketing,sales,ITandUX)MarTech andpersonalizationdevelopmentplan,apreliminaryplanofMarTech andpersonalizationmechanismsapplicationintheorganization.

Goal– to developthefirstversionofpersonalizationandMarTechcomponents (segmentationmechanisms,recommendationmechanisms,dataaggregatingandprocessingmechanisms)alongwithaplanoftheiruse/implementation.

Realization– creatingconcept,mockups,developingprototypesofmechanismsoperatingindependentlyofthecurrentITsystem.

Theeffect ofwork– prototypes ofpersonalizationandMarTechmechanismsandaplanfortestingthem.

Goal– totestandoptimizepersonalizationandMarTechprototypes.

Realization– research/testing,optimizingthemechanisms(conceptualwork,mockups,developingprototypesofmechanismsoperatingindependentlyofthecurrentITsystem).

Theeffect ofwork– tested andapprovedprototypesofpersonalizationandMarTech mechanisms;revisedMarTech andpersonalizationdevelopmentplan.

Goal- todesignthefinalversionofMarTech andpersonalizationsolutions,create mockups,andtheimplementationbacklog.

Realization– creating final Axuremockups,preimplementation analytics,

Theeffect ofwork– Axure mockups,implementationbacklog,plannedimplementationanalytics(ITandthemechanismapplicationintheorganization).

Goal- implementationofpersonalizationandMarTechmechanisms,usingthegainedknowledgeinthecurrentsalesandmarketingactivities.

Realization- ITimplementationcarriedoutunderthestrictsupervisionofaMarTech engineer.

EXAMPLE OF MARTECH ARCHITECTURE

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WeblogsLogs

Market dataandevents

Crm dataSocial mediadata

HadoopRelational databases

DATASOURCES

MERGINGPROCESOR

INTEGRATE&PERSONALIZEPROCESOR

MARTECHINTERFACES

Omnichannelanalytics module

Omnichannelmarketing

automationmodule

SitepersonalizationmoduleClearingand

connecting data

SparkLogstash

PersonalizeOrchestratePredict

Clientmonitor

CMS

SMS/VMS

AdServers(DoubleClick)

Mobileapp

E-commerce

CRM

E-mail

Landing pages

Callcenter

ERP

TECHNOLOGY:

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EXAMPLE SOLUTIONS

MARKETING TECHNOLOGY – 4 KEY CATGORIES

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Clientacquisition• Dashboardformonitoringand

managingcommunicationinpaidmedia,e.g.GoogleAdWords,DoubleClick,GoogleShopping,affiliatenetworks,aggregators andpricecomparisonsites, socialmedia;

• Centralizedmedia plan;• Aggregationofmarketingactivities;• Remarketingaggregation;• Aggregationofaclientacquisition

cost(actualcost);• Combiningdatafrommarketing,CRM,

callcentersandotheroff-linesources;• Antifraudsystems;• Anetworkofdynamiclandingpages;• Unified analytics- connectingtools,

e.g.GoogleAnalytics,Gemius,CMS.

Purchasingretention• Dashboardformonitoringand

managingcommunicationwithclientsinownedmedia,e.g.e-mail, SMS,pushnotification;

• Marketingautomation;• Customersegmentation;• Productrecommendations;• Loyaltyprograms;• Customerscoring(customer

assessment andvaluation);• Unified analytics - connectingtools

e.g.GoogleAnalytics,Gemius,CMS,system marketingautomation.

Directsales• Vendordashboardsformanaging

communicationwithclientsinon-lineandoff-linemedia;

• Monitoringcustomerhealth;• Cross- andup-sellingweb/marketing

mechanisms forusebyvendors;• Predefinedcomponentsfor

communicatingwithcustomers,e.g.everydaybrochuresreadytosend;

• Mechanismsofproduct/servicerecommendation;

• Mechanismssupportingdirectsales,e.g.potentialandrisk customeralerts.

CRO/UXautomation• Layoutpersonalization;• Productrecommendations;• Searchenginepersonalization;• Navigationpersonalization;• Managementdashboardsforwebsite

personalization.

UX AUTOMATION & MANAGEMENT

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LAYOUTAUTOMATIONAutomationmanagementforelements like:homepage,

navigation,slider,merchandising,pop-ups

ACQUISITION AUTOMATION & MANAGEMENT

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FEEDMANAGEMENT

LP

LANDINGPAGEMANAGEMENT

Source– https://www.feedoptimise.com/, https://www.mautic.org/

PERSONALIZED LANDING PAGES CONNECTER WITH REMARKETING

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MARKETING AUTOMATION – PERSONALIZED FUNNELS

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LANDING PAGEFOR SERVICE

PERSONALIZED LANDING PAGE

PERSONALIZEDREMARKETING

PAID MEDIAe.g. Google

CONSULTANT

RETENTION AUTOMATION & MANAGEMENT

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WIN-BACKCAMPAIGNS REPLENISHMENTCAMPAIGNS

Source– http://www.gymboree.com, https://www.justrightpetfood.com

MOBILE MARKETING AUTOMATION – PUSH NOTIFICATION & SMS

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DIRECT SALES – AUTOMATION & PERSONALIZATION FOR SALES

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SALESCOCKPITWITHAUTOMATION

Detecting customers „at-risk”Preparing templates forcommunication

Generating recomendations forself-management

Source– http://www.yesware.com/, https://www.mautic.org, https://canopylabs.com

THANK YOU

KarolBzike-commerceperformancedirector @Divante

kbzik@divante.plhttps://linkedin.com/in/karolbzik

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