Transforming Customer Engagement - Redpoint Global · 2018-06-28 · Transforming Customer Engagement Overview There’s no denying that the competitive frontier for brands is customer

Transforming Customer Engagement

How Customer Data Platforms Drive Personalization Across Touchpoints

Table of Contents

Overview

Market Demands

Martech Professionals’ Customer Engagement Challenges

What Is a CDP and Why You Need One

CDPs in Action: Solution Scenarios

Getting Started

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Transforming Customer Engagement |

Overview

There’s no denying that the competitive frontier for brands is customer experience.

Customers are spoiled by Amazon-, Netflix-, and Nest-like experiences. Digital transformation has created disruptions to existing markets while opening new opportunities for those that can best compete and win. According to Gartner, 89% of enterprises expect to compete on the basis of customer experience in the future. BCG estimates that upwards of $900 billion in revenue will shift to those that get personalization right. This level of personalization will require a deep under-standing of customers through data, and the ability to operational that data into advanced decisions and real-time, omnichannel experiences.

Despite this intent by many brands, study after study declares poor customer experience as a top reason for switching providers. In one of the most shared, 67 percent of customers say bad experiences are a primary reason they stop purchasing from a company, according to analyst firm thinkJar.1

Some customers leave thinking, “I’m tired of suffering from your disconnected experiences.” This refers to the all-too-common breaks in the customer experience that happen when systems-of-engagement silos are made worse by organizational and process silos. Other customers leave saying, “You don’t know me well enough.” It is clear they lack the depth in data required to create relevant, contextually aware messages in these instances.

Relevance, however, is table stakes. In fact, 79 percent of U.S. consumers say they expect brands to show they “understand and care about me” before those consumers will consider making a purchase, according to a study by marketing agency Wunderman2. And, 56 percent of consumers polled in that study say they’re more loyal to brands that “get me” as a segment of one; in other words, businesses that show a deep understanding of their customers’ preferences, needs, wants, and past purchases.

But how can you deliver personalized, relevant experi-ences when what you know about your customers — or what you can access when you need it — is limited? And how can you optimize customer engagement if you don’t know which content and cadence will resonate most with each customer?

say bad experiences are a primary reason they stop purchasing from a company

of customers

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67%

say they expect brands to show they “understand and care about me” before those consumers consider making a purchase

of U.S. consumers79%

will shift to those that get personalization right

billion in revenue$900


You may, for example, have robust demographic and purchase data, but may lack the rich online behavorial data that reveals the full probability of whether customers are likely to buy more, more frequently, or in other categories. Or perhaps you have all that data, but it lives in silos, so your frontline staff can’t access it to provide the most relevant interactions, offers, or communications at customers’ moments of truth.

Most brands need to start closing the gaps between the experience you deliver now and the lofty one that your customers expect, yet makes the most sense financially for your business. You can get where you need to be faster than you might think, and a customer data platform (CDP) is how you’ll get there. Leading enterprises are using CDPs to enable an always-on, always-processing golden record that facilitates a unified and complete view of the customer to anyone across the organization.

The influence of customer experience on profitability makes it an enterprise issue. Analyst firm Forrester Research has found that CX leaders experience greater brand preference, can charge more for their products, and grow revenue faster than CX laggards.

A CDP is an enterprise solution. It can help you…

• know all that is knowable about your customers;

• deliver relevant, personalized offers whether cus-tomers are in your physical location, online, or on their mobile device; and,

• recognize a customer across multiple channels and interaction touchpoints.

CDPs support progressive profiling and create privacy-compliant persistent customer records that anyone appropriate throughout the enterprise can access when they need it. Although there should be a single point of control for the CDP’s data, which may fall to marketing, data flowing into it and applications accessing it can and should come from across the organization to ensure the best customer experience.

You can get where you need to be faster than you might think, and a customer data platform (CDP) is how you’ll get there.

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Market Demands

There’s a shortlist of companies delivering truly relevant, highly personalized customer experiences. Those businesses have set the bar for everyone else. These heightened customer expectations are also driven by a number of other factors.

This rise of the connected consumer and their expec-tations for relevant interactions means brands need to understand their customers’ behaviors and purchase history far better than they do now. They also need to show that understanding consistently across interac-tions and touchpoints. The reality is that this is a work in progress for nearly every brand — even the most data savvy.

The modern customer experience is fragmented. A customer may research a purchase on his mobile device, switch to his laptop to take a closer look and then drop an item in an online cart, only to decide to purchase in-store because he wants to discuss options in person. Another customer may have an issue and try to resolve it using self-service, stop in the store to get help when the system hits a snag, and then call the contact center because the in-store staff has limited authority.

This disconnect complicates your ability to meet your customers’ expectations and creates a gap between your strategy and what customers actually experience. Consider marketing: A study by data management company Acxiom found that 74 percent of marketers can’t recognize customers in real time.3 And, on average, marketers are using 16 different channels to reach and interact with customers, according to Forrester Research.4 The data related to those channels is often stored in siloed systems not available to all of the constituents who could use it to create superior customer experiences.

74%of marketers can’t recognize customers in real time

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On average, customer service reps have to access four systems to resolve a customer issue or request, according to analyst firm Ventana Research.

systems to resolve a customer issue or request, according to analyst firm Ventana Research6. It is worthwhile to reduce the friction caused by these disconnects, as multiple studies have found that about two thirds of customers will leave after one poor customer service interaction.

Clearly, the need to understand customers and act in real time is a strategic enterprise issue. Since a customer data platform ingests enterprise data, it can serve as the core data layer for analytics and engagement systems that businesses use for real-time, personalized, and omnichannel marketing. CDP’s also drive optimization across all customer touchpoints, powering granular customer segments and advanced analytics for prediction, propensity, and attribution.

Forrester Research states that organizations need to shift from delivering intermittent, unintelligent, transaction-based conversations to continuous, emotion-rich conversations that help intelligently coordinate consumers’ lives. Consumers would agree: 87 percent say brands need to put more effort into delivering a consistent experience across channels, according to research by customer feedback platform provider Kampyle5.

This fragmentation is even apparent within a single business function such as customer service. On average, customer service reps have to access four

On average, marketers are using

16 different channels to reach and interact with customers, according to Forrester Research .

87% of consumers say brands need to put more effort into delivering a consistent experience across channels

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Martech Professionals’ Customer Engagement ChallengesYour goal may be to deliver personalized, relevant experiences, but siloed systems of engagement make it difficult to access what you need to know about customers exactly when you need it. And as much as you try to optimize customer engagement, doing so can be difficult if you don’t know which content and cadence will resonate most with customers.

A customer data platform’s ability to help you improve and, ultimately, excel in such areas as personalization and experience optimization is central to overcoming many of the challenges you face serving today’s ultra-demanding omnichannel customers.

• I can’t keep up with my customers across channels; it’s like playing Whac-a-Mole

• I basically make largely unintelligent and disconnected offers to everyone

• I have segments that are too broad for meaningful personalizaton

• I miss opportunities to convert customers and cross-sell/upsell to increase share-of-wallet

• I don’t know where to start, to increase customer engagement

Does this sound all too familiar?

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consumers use three channels or more when researching a purchase8. Research from commerce marketing company Criteo found than 25 percent of all cross-device transactions completed on a desktop started on a smartphone and 35 percent of transactions completed on a smartphone started on a desktop9.

Your customer might appear in any channel at any time. Customer feedback platform provider Medallia found that 73 percent of consumers use multiple channels during a shopping journey, and those that use four or more spend 9 percent more, on average, than those who only shop in the store7. According to analyst firm Blue Nile Reseach, 70 percent of

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In an omnichannel approach, all channels are essential to the customer journey.

Typical steps in an “I join” journey (when signing a contract) Marketing Mail Home Page

FAQs Portal Social Media Email Fax App Branch Office Telephone Video

Conference Chat Text Message Sales Agent

“I inform myself”

“I declare my interest and ask for information”

I fill in my contact (and need help)”

“I receive my contract confir-mation and supporting material”

“I log in to the portal”

Channel

Because of these dynamic multi-stage journeys, your business needs to have an always-on, consistent presence everywhere you interact with and serve customers. But being wherever your customers are, ready to react in real time may seem impossible to achieve — especially if your systems of engagement are siloed, making it difficult to access the data needed to deliver consistent cross-channel interac-tions rather than a fragmented customer experience.

Plus, you’re likely facing organizational roadblocks from internal departments loathe to cede any “turf,” technical barriers stemming from the organic growth of marketing technology stacks, and the ever-present collection of data silos.

Getting to the level of personalization and relevancy customers expect may be difficult, but it’s not impossible. A stepwise approach supported by a CDP get help get you there.

Potential to use channel in an omnichannel setup

Most commonly used channels for task


What Is a CDP and Why You Need One

A closer look at a customer data platform reveals exactly how it can support your customer engagement strategy. Gartner states that the CDP market is still evolving, and proposed a baseline definition as follows:

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Gartner further states that a CDP will have capabilities for data collection, profile unification, segmentation and activation, with optional capabilities for predictions and decisions. RedPoint’s technology platform addresses each of these capabilities, and provides the most comprehensive CDP in the market according to an evaluation performed by the CDP Institute.

“A CDP is a marketing system that unifies a company’s customer data from marketing and other channels to enable customer modeling and optimize the timing and targeting of messages and offers.”


Capability What the Capability Is How It Supports Customer Experience

Data Collection Accepts large volumes of data inputs from any source, stores it in a usable format, provides tables, and shows relationships

Creates a central point of real-time access to key customer data for anyone across the organization

Data Unification Brings together disparate information about each customer, such as associate ID, account ID, and email. Allows for chaining and appending external data

Builds and maintains an always-up-to-date golden record of each customer

Predictive Analytics Supports predictive modeling, and enhances customer data with information such as propensity scores

Enables tactics such as next best action and customer journey management

Decisioning Enables decision management by presenting recommendations for the content and offers most likely to convert

Provides personalized, relevant communications, offers, and interactions

Integration Connects with internal and external systems through APIs and data queries

Supports identity management and cross-device and cross-record matching, which delivers more complete and accurate customer records, as well as reduces redundant records; also enables omnichannel marketing

RedPoint further refines the CDP definition to ensure that a CDP empowers organizations to build and manage the single view of the customer that is fundamental to optimizing customer engagement. A robust CDP is a system that ingests all sources and types of enterprise customer data — whether batch or

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streaming, internal or external, structured or unstruc-tured, transactional or demographic — to provide an always-on, always-updating golden record that is continually available at low latency to all touchpoints and users across an enterprise.


Companies use CDPs for activities as varied as journey tracking, customer unification, and contextually relevant messaging. As such, it is a foundational element for building customer engagement. Here are several key areas where CDPs can support your customer engagement efforts:

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they use for customer data. This allows organizations to retain their existing systems, databases, and applications as systems of record, while using the CDP as the single customer view.

Additionally, this approach enables companies to more easily adopt new technologies and data sources as they emerge. RedPoint Global’s CDP includes a broad set of connections for current martech, ad tech, and social applications. It also provides web services interfaces and a Java SDK to hand new types and sources of data.

Another benefit of this open garden approach is that it allows organizations to embrace and extend their use of best-of-breed applications in the data layer, in the in-line analytics layer, and at the activation layer in marketing applications. As a result, RedPoint Global’s CDP can help connect, analyze, and orchestrate across this technical landscape as fast as your needs change, to drive innovative customer experiences.

What makes RedPoint Global’s CDP unique — and ideally suited for companies looking to deliver a connected, contextually relevant customer experience — is its open garden approach.

What makes RedPoint Global’s CDP unique — and ideally suited for companies looking to deliver a connected, contextually relevant customer experience — is its open garden approach. In other words, instead of forcing user companies to move data into a central warehouse, RedPoint Global’s CDP is architected to support the broad set of data and connection types


RedPoint Global’s CDP…

Serves as a single point of control for customer dataConnects all types and sources of customer data in real time, which enables a unified customer view accessible across the enterprise to drive more contextually relevant interactions in cadence with the customer

Solves customer identity challengesCreates a singular, accurate, and continuously updated view of each customer (i.e., golden record) through probabilistic and deterministic matching algorithms that is then maintained with a persistent key

Supports big data processesPerforms data ingestion and integration across all sources and types of data — batch or streaming, internal or external, structured or unstructured — that provides an always-on, always-updating customer profile

Parses high volume streaming dataEnsures that data from high volume streaming sources is parsed properly to support matching and advanced analytics

Optimizes campaign performance metrics

Reduces data prep time

Enables progressive customer profiles that deliver highly personalized engagement to lower customer interaction costs while increasing revenue

Reduces manual processes for data preparation by 80 percent using pre-built data functions and hundreds of out-of-the-box API connectors

Provides data accessibility across the enterpriseProvides an intuitive drag-and-drop interface that requires no coding skills to operate, and MDM capabilities to master data accuracy

Operates at the speed of the customerProcesses customer data and makes it continuously available to the entire organization in real time with near-zero latency

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CDPs: One Element of a Bigger Solution As robust as a CDP may be, it’s not a standalone solution designed to answer all marketing needs. Instead, it’s meant to act as a core layer supporting analytics and engagement systems that allow marketers to deliver omnichannel and real-time marketing; personalize and optimize the experience at any customer touchpoint; and use analytics for attribution, prediction, propensity scoring, and segmentation. A CDP is meant to work in conjuction with these analytics and engagement systems, which is what makes an open garden approach so compelling.

Learn more about how these technologies work with a CDP in the “Guide to Selecting the Right Customer Data Platform.”

Solution What It Does Why it is Not a CDP How It Complements a CDP

Data warehouse or data lake

Aggregates data for reporting purposes

Lacks the ability to cleanse, enrich, or match data, build a unified customer profile, or conduct analyses

Serve as source of data for CDPs

Marketing cloud Supports such activities as marketing campaign management, with predefined batch data updates

Lacks the ability to link, process, cleanse, or match data; connects to data sources without creating or managing persistent keys

Uses data processed by a CDP to create personalized, contextually relevant campaigns and offers in real time

DMP or Tag management tools

Enables personalized digital advertising driven by cookies, tags, and scripts; emphasizes anonymous data

DMP’s lack personally identifiable information (PII); are unable to ingest or upload data in real-time and typically takes 24-48 hours to process data; lack robust matching

Provides data collection that can help with segmentation and personalization

Personalization/optimization solution

Enables personalization and A/B optimization in digital channels using tag management, digital identity, basic content management, and propensity analytics

Lack the ability to create a robust single customer view that is accessible by multiple applications

Similar to tag management and DMP tools, supports activation on digital channels through segmentation and personalization

Marketing analytics software

Allows marketers to build data models for prediction, segmentation, product recommendations, attribution, customer value calculations, and the like

Analytics software are self-contained solutions that are not architected to provide data accessibility to other applications

CDPs extend their source data management capabilities and provides a single source of truth to drive analytics

Data management/quality solution

Cleanses, matches, and appends customer data to produce up-to-date customer records

Lack real-time ingestion of batch and streaming data; lack ability to provide real-time accessibility to other technologies

Helps ensure that the data a CDP ingests is clean, current, and robust

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Solution Scenarios

RedPoint Global has delivered customer

data platform solutions for innovative,

market-leading organizations across

practically all consumer-driven industry

segments, including financial services, retail,

CPG, e-commerce, healthcare, insurance,

media and entertainment, travel and hospitality.

Although CDPs are still an emerging category,

the RedPoint Customer Data Platform has

been proven at the scale, speed, precision,

agility, and availability required by the most

demanding digital transformation initiatives.

Consider these examples:

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Understanding the Consumer Path-to-Purchase & Lifetime Value

Xanterra owns or manages an extensive portfolio of products that includes everything from national park concessions to cruise lines and adventure tours to hotels and resorts. Many of its customers gravitated to one type of vacation option, but Xanterra execu-tives knew that introducing them to other options they would probably also enjoy would build engagement and profitability. Accomplishing this meant consol-idating more than 100 sources of customer data, including transactional and management systems each with unique characteristic and complexities that were purpose-built.

Working with RedPoint Global, Xanterra consolidated the data from across its properties and systems to create rich 360-degree profiles for nearly all of its customers and prospects. Next, Xanterra used the RedPoint Global platform to identify seven key

customer segments, craft detailed personas and journey maps for each, and use them to deliver personalized communications at scale – throughout the entire customer lifecycle.

The results have been exceptional. Percentage improvements in marketing performance routinely reach three figures. For example, using targeted messages to selected personas, Xanterra increased revenue per email by over 800 percent at one resort. In another case, intelligent remarketing to established customers with a modest discount on a weeknight stay boosted revenue per email over 1,400 percent at a state park lodge. Xanterra generated these revenue increases while also reducing the number of customer interactions by 10-40%, leading to signif-icant profitability gains. Using RedPoint Global’s platform, including the CDP, Xanterra can quickly plan and execute new initiatives and campaigns that build loyalty and sales through a more personalized customer experience.

CDPS IN ACTION:

Executives at Xanterra Parks & Resorts wanted to expand its customers’ horizons as it grew its revenue.

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Xanterra increased revenue per email

by over 800% at one resortreducing the number of customer interactions by

10-40%

Customer Unification

The retailer used RedPoint Global’s CDP to bridge its data silos and create a unified view of the customer. The CDP ingests, cleanses, and matches 38 different sources from across the business to create a golden record for each customer in near real time. Additionally, the CDP provides the retailer with a single point of operational and data control that has helped reduce data-to-insight-to-action cycle times by 99 percent.

As a result, the retailer has transformed its customer experience through personalized messages and offers delivered in the cadence of the customer as they move across touchpoints and stages of the customer journey.

A major European DIY retailer set out to create a frictionless omnichannel experience for its digitally connected customers.

The CDP provides the retailer with a single point of operational and data control that has

helped reduce cycle times by 99%.

CDPS IN ACTION:

An important part of that experience is presenting contextually relevant offers and messages to its customers in real time. The retailer launched the initiative across more than 500 of its stores in Germany, Ireland, and the U.K., which represented its largest and most profitable brand.

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Relevant Messaging

Executives for a large consumer packaged goods (CPG) manufacturer realized that it was losing touch with its customers — despite operating an e-commerce site for direct-to-consumer sales.

Marketers now have access to that data in real time, which they use to deliver more consistent, relevant messaging. As a result, the CPG has increased net-new customers, order frequency, and order size. During the holiday season, real-time messaging led to a 144 percent lift in average order revenue over the previous baseline while reducing the volume of campaign messages.

During the holiday season, real-time messaging led to a

144% lift in average order revenue over the previous baseline while reducing the volume of campaign messages.

CDPS IN ACTION:

As the site grew, the underlying A/B testing, campaign, content management, DMP, ERP, and voice of the customer systems had become alarmingly siloed. Any omnichannel marketing required weeks of data prepration and transfer — an untenable situation.

The CPG company worked with RedPoint Global to implement a CDP that captures customer data relevant to marketing and identifies customers from across sources, and then connects it all bidirectionally to keep the CDP and all the source systems in sync and up-to-date.

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Getting Started

Only 7 percent of companies polled by customer experience analyst firm Temkin Group view themselves as industry leaders in customer experience today, though 54 percent aspire to be leaders within three years10. Currently, about two thirds of CMOs are accountable for the customer experience, according to Forrester Research11. But a study from analyst firm The Economist Intelligence Unit on behalf of marketing automation provider Marketo found that 86 percent of marketers believe they will become responsible for the entire customer journey by 2020 — a mere two years away12.

Clearly, there is an urgency to prioritizing the customer experience. Competitors can replicate your products and pricing; but they can’t mirror your customer experience. The reason? Customer data. The data you have about your customers is unique to your organi-zation, and used wisely will allow you to deliver a matchless customer experience.

But not just any data will do. You need to know all that is knowable about your customers — and be able to access that information in real time. So, you need data that is unified from all relevant systems and available to anyone across the organization; it must be accurate, consistent, and persistent; and it must allow you to recognize a customer across any and all channels and touchpoints. That means you need a CDP.

Customer experience is an enterprise issue; a CDP is an enterprise solution. It creates a golden record for each customer that anyone or any system from across the enterprise can access when they need it.

RedPoint’s open-garden approach provides the integrated, real-time view of customers necessary to be wherever they are whenever the opportunity arises to wow them with the customer experience they’ve increasingly come to expect.

There are a number of ways to get started. One is to phase in CDP capabilities by such criteria as business unit, data source, customer type, or channels used. Then start driving results and iterate your way toward customer experiences that are fully aligned with your business strategy.

86% of marketers believe they will become responsible for the entire customer journey by 2020 — CDPs are key to this

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This five-step approach is a way to maximize value from a CDP.

RedPoint Global’s solution is built to tackle these challenges with rapid speed-to-value, and to scale in a way that get to the broadest and deepest enterprise use, all while delivering high value along the way. Our approach links your strategic business objectives to a targed set of capabilities, use cases, value levers, and go-forward plans.

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Build the single customer view

Add data to enhance each customer’s profile

Add in-line analytics and machine learning

Personalized experiences across channels

Optimize the CDP’s use across the enterprise

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RedPoint Global’s software solutions empower brands to transform how customer experience is delivered. RedPoint Global’s solutions provide a single point of control to connect all customer data, determine next best actions in real time, and orchestrate interactions across all enterprise touchpoints. Leading companies of all sizes trust RedPoint Global to deliver highly personalized and contextually relevant experiences that optimize customer engagement.

About RedPoint Global Inc.

REDPOINT GLOBAL INC. 36 WASHINGTON ST., SUITE 120, WELLESLEY HILLS, MA 02481 USA +1 781 725 0250 | www.redpointglobal.com

© 2018 RedPoint Global Inc. All rights reserved. RedPoint, the RedPoint logo, and RedPoint Customer Engagement Hub are trademarks of RedPoint Global Inc. All other trademarks are the property of their respective owners.

EB-TCEU0519-01

1Vala Afshar, Salesforce, “50 Important Customer Experience Stats for Business Leaders,” Huffington Post, 2015

2Wunderman, “Wantedness,” 2018

3Acxiom and Digiday, “Customer Centricity Paradox,” The 2012 Acxiom and Digiday “State of the Industry” Report, 2012

4Melissa Parrish, Forrester, “Consumer Marketing 2018: ‘Could Do’s’ Versus ‘Must Do’s’,” 2018

5Nili Goldberg, Kample, “Optimizing Omni-Channel Experiences with Customer Feedback,” 2015

6Ventana Research, “The Unified Agent Desktop and the Customer Experience,” 2012

7Emma Spoadijieva and Beth Benjamin, Medallia; Uptal M. Dholakia, Rice University, “A Study of 46,000 Shoppers Shows That Omnichannel Retailing Works,” Harvard Business Review, 2017

8Laurie Sullivan, “70 Percent of Consumers Use Three Channels or More to Research a Purchase,” MediaPost, 2015

9Criteo, “Cross-Device Commerce Report,” 2016

10Temkin Group, “The State of CX Management 2018,” 2018

11Forrester Research, “61% of CMOs Are Now Responsible for CX,” 2016

12Economist Intelligence Unit, Marketo, “The Path to 2020: Marketers Sieze the Customer Experience,” 2016

The RedPoint Customer Data Platform™ provides a single point of control over customer data, connecting all types and sources of customer data – first-, second-, and third-party, batch or streaming – in real time. The RedPoint Customer Data Platform makes the unified customer view accessible across the enterprise to drive more contextually relevant interactions in cadence with the customer.

For more information, visit www.redpointglobal.com or email [email protected].

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Transforming Customer Engagement - Redpoint Global · 2018-06-28 · Transforming Customer Engagement Overview There’s no denying that the competitive frontier for brands is customer