#NewWay ToEngage

The Future Project: Vol. 2 Envisioning the Impact of Big Data & Analytics on Commerce

Using Customer Preferences to Build

More Meaningful and Valuable

Brand ConnectionsInterview with Shep Hyken, @Hyken

Chief Amazement Officer at Shepard Presentations, LLC

Connect with us

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Introduction

The rise of big data and analytics allows organizations to understand the customer

journey like never before. Customers are no longer traveling a single path to purchase.

Sophisticated analytics tools are providing greater visibility into understanding all the

different places that buyers are entering the marketing funnel.

More personalized and relevant offerings can be presented – across multiple channels

– allowing buyers to meet their specific purchasing needs, from nearly any device or

location. But with customers requiring more engaging, meaningful and consistent

brand experiences, across all channels, how can enterprises leverage big data and

analytics to deliver these experiences?

Shep Hyken was recently interviewed to shed light on these challenges and unveil what

the coming years hold for the future of commerce.

About Shep Hyken

Shep Hyken sees a future where the most subtle of customer preferences are understood,

building more meaningful and valuable brand connections.

Shep Hyken is a customer service and experience expert,

business speaker, and New York Times best-selling author.

He is the CAO (Chief Amazement Officer) of Shepard

Presentations, where he focuses on helping companies

deliver amazing customer service experiences.

Follow Shep on Twitter @Hyken or connect with him on LinkedIn.

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Previously, we had information based only on what the customer did in the past.

We could track what the customer was doing and pull together a bunch of information

about what the “average” customer did. But today, thanks to big data, we have so much

more information available.

We are receiving data from many different places, and with analytics, we can use that

information to paint a vivid picture of customer behavior. Trends are easier to identify,

and we can predict what actions customers will take next. But the key to using this

information successfully is to pare it down to something more simplified.

Sophisticated analytics tools can paint a vivid picture of customer behavior.

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Enhanced Customer Experiences

How has the introduction of sophisticated analytics tools changed our understanding of the customer journey? And what has been the impact of being able to harness qualitative analytics?

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This is one of my favorite topics because everybody has been talking about big data.

It spots trends and predicts what could potentially happen with the masses. But when

you get down to what I call “little data” or “micro data,” that’s when you’re looking at the

individual and looking at that person’s specific buying habits.

For example, I may be the owner of a hotel chain, and I may spot a good piece of real

estate that would be the perfect place to build a successful hotel. That’s because I have

information based on past knowledge. That would be my big data.

The first guest who walks through the doors happens to be somebody who has visited one

of my other hotels. Because of the information I have about that guest, I am able to give

that guest a more personalized experience.

I know this person likes the corner room, the bigger pillows and the chocolate mints (so I’m

going to leave extra). By the way, I know all this because the housekeeper made a note that

we put in this person’s record. So this becomes little data, which allows everyone to create

a customized experience for the individual.

Leveraging “Little” Data

How do you predict companies will take advantage of personalized marketing efforts in the future with so much customer data available now?

“Little” data creates a customized experience for the individual.

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Predictive analytics is really about looking at all the past information, which is pretty

black-and-white. This is hard data that we can use to predict what is going to happen

based on certain pieces of information. But cognitive data allows us to start “thinking”

about all that data.

For example, maybe a trend is starting to shift, and something large is going to change.

Knowing this allows us to start thinking and experimenting with the data and then look at

the results to find out whether we’re taking the right actions.

Understanding Shifting Trends

What role will predictive and cognitive analytics play in the future?

Predictive and cognitive analytics allow us to test data and then take the right actions.

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You must first decide whether you want an omni-channel experience, and if you do,

you need analytics to cross into all the different channels. The goal is to take these

channels out of silos, so no matter which path the customer selects, they benefit

from a consistent experience with your brand.

Organizations that are struggling with the omni-channel experience are not participating

in all the channels where their customers are spending time. They are picking and

choosing, and it’s for their convenience instead of the customers’ convenience.

Leaving out channels, however, results in losing an entire base of customers. Perhaps

these customers are bouncing from one channel to the next, and if they’re not getting

the same experience from all of them, it’s going to erode confidence.

Predictability is a key to creating customer confidence. Without that confidence, you can’t

possibly have customers who want to be loyal, because they don’t know what they’re

going to get.

Shattering Silos

How can analytics power an organization to deliver a seamless omni-channel experience? And which channels are organizations struggling with the most?

Taking an organization’s channels out of silos provides a consistent brand experience.

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First of all, if data could talk and give me advice, it would explain which data to use,

because there are vast amounts of information available. So my trusted adviser,

Mr. or Ms. Big Data, would say, “This is what you need to take a look at. This piece

of data will tell you exactly what your customers want and expect from you.”

You will like the data that it provides, because it’s going to make you more successful

and make the customer experience much better.

Greater Intelligence

What if your data could talk to you like a trusted business adviser? How would that help the business?

If data could talk, it would explain which data to use, because there are vast amounts.

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Moving into the Future

Cognitive data and analytics will play important roles in the future. Personally, I love the

idea of data being cognitive because it takes the big data and predictive analytics and

elevates them to an entirely new level.

We’ll also have the ability to understand customers like we

never have before. The most subtle of preferences will be

uncovered and used to make customers feel like a brand

knows them personally. As a result, analytics will deliver

customer connections that are deeper and more

meaningful and result in greater brand loyalty.

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IBM Commerce Can Help

There is an alarming gap between what brands believe they deliver and what customers actually experience. Eighty-one percent of consumer brands say they have a holistic view of their customers while only 37 percent of consumers believe their favorite retailer understands them.

IBM Marketing Cloud helps close the customer experience gap-making it easier to understand and design meaningful customer experiences across applications, devices and time to accelerate today’s results and tomorrow’s ambitions. It powers the delivery of exceptional experiences for customers across the buyer journey by leveraging customer data, providing analytical insights and automating relevant cross-channel interactions.

• Quickly design and automate consistent cross-channel experiences

• Make better decisions and deepen customer engagement with purpose-built analytics inside

• Gain faster time to ROI and increased agility through a cloud-based digital marketing platform that integrates easily with other customer data sources and applications

To learn more about IBM Marketing Cloud solutions, go to IBM.com/NewWayToEngage

Also, join the conversation on Twitter with Futurists like Shep Hyken using #NewWayToEngage

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