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Insight'&'Execu7on'
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About'Retail'TouchPoints'
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Panelists' Debbie Hauss Editor-in-Chief, Retail TouchPoints
MODERATOR
Nikki Baird Managing Partner Retail Systems Research
Rebecca Bucnis Global Program Director, Consumer 360 Teradata
OmniFChannel'Marke7ng'
Intro:'Retail'State?'What'consumers'want'&'what'retail'marke7ng'needs'1. Single'view'of'customer'2. Segmenta7on'3. Revenue'AAribu7on'4. Channel'Execu7on''Recommenda7ons'&'Technology'Framework'''
In 2013 Customer expects…
7
• “Let me connect and interact across any channel at any time and get a seamless anywhere anytime experience…”
• “What’s in it for me? ‘Listen’ to me, then send me relevant offers, when I need them, where I need them and when I want them……”
• “Give me compelling content that finds me, captures my attention and makes me want to comment and share…”
Retail is changing…
8
From:'• Right'product'• Right'price'• Right'place'• Right'7me'
To:'• Right'interac(on*• Right'service*• For'that'customer’s'
objec(ve*• At'that'point*in*(me*
Success is no longer defined by how you want to sell, but by
how customers want to buy
Consolidating Data
10
5%
33%
7%
13%
14%
19%
33%
33%
10%
17%
20%
20%
22%
23%
34%
61%
Supply Chain / Fulfillment
No explicit owner
Merchandising
eCommerce/Direct Channels
Store Operations
Customer Service / Call Center
IT
Marketing
Customer Data Internal Owners
2013 2012
Source: RSR Research, August 2013
Revealing Marketing Trends
89% of consumers said that they avoided doing Business with companies They don’t believe protect Their privacy online
Just 18% of marketers have a single view of the customer…...but it is
considered a top priority for future investment.
18%
Of marketers will implement a big data solution within the next 2 years
71%
Just 18% of marketers have a single view of the customer… but it is
considered a top priority for future investment.
18%
71%
71% of marketers will implement a big data solution within the
next 2 years
Source: Teradata Data Driven Marketing survey 2013
Knowing More but Doing Less
12
18%
22%
32%
15%
28%
36%
My company is proficient at targeted marketing across channels.
My company knows who our best shoppers are.
Our customer loyalty program is a foundational element of our marketing
strategy.
Marketing Sophistication: "Strongly Agree"
2013 2012
Source: RSR Research, August 2013
Getting Realistic
13 35%
44%
41%
38%
40%
28%
48%
52%
8%
23%
25%
28%
31%
42%
44%
48%
53%
Raise the barriers to entry for competitors
Develop better products and services through more direct customer input (i.e., crowdsourcing)
Switch our company from primarily traditional marketing tactics to primarily digital marketing
Become more focused on our company's brand promise to consumers
New marketing channels enable us to truly differentiate our brand
Turn customers into brand advocates through social media
Use digital channels to drive traffic to stores
A greater focus on customer experience, less on product
More effective targeting by capturing more detailed customer preferences
Top 3 Marketing Opportunities
2013 2012
N/A
Source: RSR Research, August 2013
Consumer Discovery: Stitch Actions to Purchase
Purchase on In Store or via Mobile or Via Web ….
Current Challenge Technology Requirements • Difficult to integrate all data Determine new
segmentation criteria behavior over time and channels unknown
• Level of effort to integrate diverse formats
• Quickly load/store new data • Scan multiple types of data, easily • Prebuilt path, pattern & text analysis
An Incomplete Picture
8/29/13
16
An Incomplete Picture
8/29/13
17
Case Study: Multi-Channel Behavioral Modeling
Business Objective • Increase conversion through direct marketing by integrated channel behaviors
Analysis • Multiple varying types of information amounting to 1000s of information pieces of consumers across multiple channels for behavioral insight to consumers
• Optimal treatments are determined so tailored messaging can be delivered to each customer
Actions • Send promotions with cross-sell and up-sell offers based on each customer’s individual behavior
Results • Multiple X Increase in Response Rate vs. Previous campaigns
“Direct marketing’s top
priority is to increase the
conversion rate of customers
browsing our website…”
“It’s like printing
money…” VP of Customer Insight
Product-Based
Behaviors
Personalized Pricing
& Promotions
Data Collection & Integration
Real-Time
Interactions
Geospatial Details
Customer Experience
Marketing Attribution
Social Media Interactions
Dynamic Segments enabled by Customer 360 Source Data
POS Data
Consumer Data
SyndicatedData
Demographic Data
Supply ChainCampaignsCampaigns
Segments
Acquisition
Growth
Retention
Strategic Customer Insight Seamless Customer Experience
Enterprise Data
Warehouse
IndustryLDM
Channels…
Rea
l Tim
e In
tegr
atio
n
Web
CallCenter
Retail
Agent or Account Manager
Mobile
Channels…
Rea
l Tim
e In
tegr
atio
n
Web
CallCenter
Retail
Agent or Account Manager
Mobile
Rea
l Tim
e In
tegr
atio
n
Web
CallCenter
Retail
Agent or Account Manager
Mobile
Strategic Analytics
MiningModeling
Reporting ProfilingSegmenting
Value Driven Decisions
Real-Time Events Enterprise Rules
Multi-Channel Communication
Query Campaign Design
Campaign Automation
Strategic Analytics
MiningModeling
Reporting ProfilingSegmenting
Value Driven Decisions
Real-Time Events Enterprise Rules
Strategic Analytics
MiningModeling
Reporting ProfilingSegmenting
Strategic Analytics
MiningModeling
Reporting ProfilingSegmenting
Value Driven Decisions
Real-Time Events Enterprise Rules
Value Driven Decisions
Real-Time Events Enterprise RulesReal-Time Events Enterprise Rules
Multi-Channel Communication
Query Campaign Design
Campaign Automation
Multi-Channel Communication
Query Campaign Design
Campaign Automation
ResponsesResponsesResponses
Cost
Market Research
MerchandiseMerchandise
Still A Lot of Consolidation Ahead
22
67% 67%
58% 56% 56% 49% 48%
40% 32% 29%
36% 29% 31% 31%
12% 10%
Direct Mail Traditional media (print,
TV, radio)
Facebook or other social
network
Twitter Email Online advertising
(display, video)
Mobile advertising
Search advertising
Communication Channel Owners
Corporate Marketing eCom or Digital Mktg
Numbers will not add to 100% - Third parties & Merchandising excluded as answers Source: RSR Research, August 2013
Revenue Attribution: Value of each channel
• Consumers are exposed to a variety of different marketing efforts. • Of all touches, which are consumed and which drive behavior • Time to conversion between the interaction and purchase • Value of the purchase itself
Store Purchase
Weekly Ads
Web
Mobile
Creative solutions
By 2015, a company’s digital strategy will ultimately influence at least 80% of a consumer’s discretionary spending. What can Data Driven Marketing do?
• Integrate digital and traditional information
• Understand consumer actions across multiple channels
• Engage with customers with relevant, consistent experiences, regardless of channel
• Send customers personalized offers based on behaviors
• Provide marketers with rapid insights that reveal who to contact, when, and with what offer
• Reduce the costs of point solutions
80%
Source: Teradata Data Driven Marketing survey 2013
To what extent do you experience the following problems when using Return on Marketing Investment (ROMI)?
0.0% 2.0% 4.0% 6.0% 8.0%
10.0% 12.0% 14.0% 16.0% 18.0% 20.0%
85% of Marketers surveyed report challenges with calculating ROMI
Source: Teradata Data Driven Marketing survey 2013
Still Lots of Gaps To Fill
26 23%
27%
30%
21%
37%
26%
28%
36%
25%
47%
42%
44%
49%
50%
51%
52%
54%
59%
60%
72%
Customer segmentation software
Content management system / Digital asset mgmt
Promotion planning solution
Digital Marketing platform
Social media analytics
Predictive analytics
Revenue attribution and campaign ROI analysis
Customer relationship management software
Retargeting / personalized offers
Customer purchase analytics
Marketing Technology Value vs. Use
Very Valuable Implemented
Source: RSR Research, August 2013
Dipping A Toe In The Water
27
10%
7% 7%
10%
14%
3%
7%
11% 10%
19%
2% 2%
15%
10%
20% 17%
8% 8%
0%
15%
33%
0%
17%
25%
Traditional media (print,
TV, radio)
Direct Mail Email Online advertising
(display, video)
Search advertising
Facebook or other social
network
Twitter Mobile advertising
Communication Channels "No Plans"
Winners Average Laggards
Source: RSR Research, August 2013
Example: Driving Personalizing In-Store
Customer’s
stated objective:
“More our ‘little black books’ to a more stable and shareable environment…”
Business Objective • Department store retailer decided to enable store associates
with powerful information – a journey that started in 2005 Analysis
• Incorporate each associates knowledge of customers into a central system
Actions
• Incorporate associates knowledge of customers into a joint a viewable customer look up
• Driving tailored products and services based on micro-segmentation
Results
• As a high-end specialty retailer, Omni-Channel helps ensure our store associates are fully engaged with each customer throughout the selling process, including the ability for mobile payments and seamless store transfers if items are out of stock…” SVP & CTO
29 8/29/13 Teradata Confidential
preference
social mobile
website
response
purchase
affinity Conversion path
Customer behavior
attribution
spend
process
Segmentation
decision offer
governance
compliance
delivery
How to do this? Strategic Framework Enables Insight, Automation & Execution
Example: Loyalty Journey to Omni-Channel
Business Objective • Increase customer satisfaction, share offer creation and direct personalized, optimized offer sets of marketing communication to customers
Analysis • Detailed individual analysis, conducted by both retailer and vendors, together build out over million of offer combinations each week
Actions • Customers enabled to pick and choose channels of preference including instore kiosk, web, loyalty card, print
Results • Millions of rewards delivered to customers • Achieving multi million dollar increase in sales
“The …[loyalty reward
award-winning] program acts almost like a personal shopper, recommending
products & providing special offers tailored to each
cardholder.” -- Consumer recommendation”
30
Customer Recommendation
Purchase Probability
213098576 76.2%
234978957 33.1%
211293847 31.7%
213295876 27.2%
232576382 16.9%
A Race to See Which Platform Wins
31 11%
17%
18%
19%
20%
21%
22%
23%
24%
29%
11%
16%
11%
10%
20%
13%
18%
15%
13%
9%
Customer purchase analytics
Content management system / Digital asset mgmt
Promotion planning solution
Social media analytics
Retargeting / personalized offers
Predictive analytics
Customer segmentation software
Revenue attribution and campaign ROI analysis
Customer relationship management software
Digital Marketing platform
Marketing Technology Plans
Budgeted Project Planned, Not Yet Budgeted
Source: RSR Research, August 2013
OmniFChannel'Marke7ng'
Intro:'Retail'State?'What'consumers'want'&'what'retail'marke7ng'needs'1. Single'view'of'customer'2. Segmenta7on'3. Revenue'AAribu7on'4. Channel'Execu7on''Recommenda7ons'&'Technology'''
#Omnichannel'
Thanks'For'AAending!'
You'can'download'this'slide'deck'and'view'the'replay'of'this'webinar'at:''hAp://rtou.ch/omnichannelmkt'