Using data to design personalized customer experiences CX

© 2015 Merkle. All Rights Reserved. Confidential1
Using Data to Design
Personalized Customer
Experiences
NEDMA Conference, Bentley University May 27, 2015
#WholeBrainMktg
@AileenCahill
@Merkle

Whole-Brain Marketing Requires Both!
Art Science
Big DataBranding
Ad Technology
Marketing Technology
aka. “Big Blender”

“Blending Science with
Whole-Brain Marketing – Using Data To…
…. Create Personalized, Memorable & Valuable Customer Experiences

It’s about “share of mind”
not “share of voice”

The audience is not
brought to you or given to
you; it's something that
you fight for. You can
forget that, especially if
you've had some success.
Getting an audience is
HARD. Sustaining an
audience is HARD. It
demands a consistency of
thought, of purpose, and
of action over a long
period of time.
-- Bruce Springsteen

Today, Audiences are EARNED!
Build your Audiences and They’ll Become
your Customers
Nurture & Engage Them with
Relevant, Value-Added Content & Tools
You’ll Create Loyalty, Increase LifeTime Value
Marketing MUST Move Beyond Selling & Transactions!

Name & Address
Person ID
Phone #
Email Address
Cookie & Device ID
AAS 1.0 AAS 2.0 AAS 3.0 AAS 4.0 AAS 5.0
The Evolution of Personally
Addressable Marketing

Now Expanding Addressability Across “Platforms”
Social
Media Platforms
Open Web
(DMP)
Ecommerce &
Publisher
Networks
Addressable
TV
Future Expansion OptionsActively BuildingToday

© 2015 Merkle. All Rights Reserved. Confidential13 © 2014 Merkle. All Rights Reserved. Confidential13
It’s what you do
with AAS that’s important!

© 2015 Merkle. All Rights Reserved. Confidential14 © 2014 Merkle. All Rights Reserved. Confidential14
We Make
Addressable Consumer Experiences

Traditional marketing activity, with minimal focus
on digital and innovative activities
Digital marketing activity, with key focus on new
technology capabilities
Planning by vehicle in isolation, by quarter,
by message
Planning interactive experiences across vehicles,
across a customer’s unique journey
Push marketing activity, mainly offline
Inefficient agency and business process
Pull marketing activity, primarily digital
Updated agency, business & planning model
Singular focus on last touch attribution to
pipeline and revenue
Modern metrics leveraging fractional attribution
So…how do we deliver the right message to the right person about the
right solution in the right place at the right time?
Consumer-Centric Marketing

The Consumer Must Be at The Center -- Where & How Can
We Add Value, Help Them Meet Their Goals and be Engaging
Social Media
Advertisements Person to Person

5 Consumer-Centric Principles for Personalization
Personalization
Value
Exchange
Engagement
Responsiveness
Context

Business Impact of Personalization
• 6-8% increased response rates due to optimized
segmentation (Accenture/Aprimo)
• 2-3% increased sales (conversion rates) tied to campaign
effectiveness and execution(Accenture/Aprimo)
• Precision targeted emails can generate 10x the revenue
and 20x the profit of standard campaigns
(Accenture/Aprimo)
• 3 Year Increase in Average consumer Revenue of up to
$300/customer from a 10% consumer Satisfaction
Improvement (Forrester)
• Companies with strong consumer experience enjoy 14.4%
more consumers willing to buy another product, 16% less
likely to switch and 17% more likely to recommend.
(Forrester)
Revenue Enhancement
• 30% Reduction in campaign spend waste through improved
financial controls and visibility
• 20% Reduction of cycle times, including creative and
production services
• 20% Improvement in productivity gain due to real efficiencies
and user adoption
• 10% Optimization of the marketing mix due to enhanced
visibility and decision making
• Reduced agency spend by 13 percent
• Decreased campaign cycle time by 32 percent
Cost Avoidance
• Improved consumer
experience
• Increased consumer
satisfaction
• Increased consumer
retention
• Decreased acquisition costs
• Removal of touchpoint
redundancies
• Alternate channel operations
• Right message / offer/right
time
• Frequency management
• Consumer preference
management
CRM Improvement
Benefits
Best-in-Class companies were
4.7 times more likely than their
peers to use an integrated
automated solution
(Aberdeen)..
Avg. 15X project
investment return
after 3 years

Evolution of Personalization
Campaign Management Channel Optimization Decision Optimization
Key segments differentiate groups
for batched communications
Journey based engagement
defines offers and interactions.
Targeting
Optimization
Level of insight
Channel /
Media
• Campaign Based
• Known consumers
• Batch Models
• Channel based
• Anonymous
• Real-time segments
• Experience based
• Machine learning
• Batch “List” Execution
• A/B Testing
• Cross channel & real-time
• Interaction optimization
• Email
• Direct Mail
• Website
• Landing Pages
• Contact / Service Center
• Sales Automation
• Display
• Social
• Smart Devices
• Tablets
Segment & Interaction
Personalized Experience
Segment
1st & 3rd Party
Segment
1st,, 2nd, & 3rd Party
• Single channel real-time
• Multivariate testing
Automated segments define the
next best offer.

Static Experience to Personalized Experiences
(Channel Optimization)
This page doesn’t react to
consumer data. All consumers
receive the same page with the
same messaging and/or offers.
No Personalization Personalization
Zone 1

More Data and Tools Than Ever to Complete This Picture
22
Her search query
Her past behavior on
your site
Her history with your brand
online and offline
Her social network
and activity
All of her online
activity
All of her
purchase history,
online and off

Append!

Data is an Asset! Mine It For Competitive Advantage
Systematic Use of Information
• Customer Data Warehouse
• Data analysis and gathering
• Predictive modeling
To Attract and Keep Customers
• Cost-efficient acquisition
• Retention focused on profitable and
at-risk customers
• Across channels
Through On-Going Dialogue
• Real-time response
• Listening to customer
• Personalized, customized offers
and messages
For Long-Lasting Mutually
Beneficial Relationships
• Customer-based measurements
• Continuous customer evaluation
Data-Driven Marketing Uses Information To Drive a Meaningful
& Mutually Beneficial Dialog  Relationship

Behavioral ContextualDescriptive
Weaknesses Data Overload, Sys.
Integration Complexity
Difficult to Gather and
Structure Into System
Low Differentiation,
Data Privacy
Examples
Purchases, Usage;
Communication,
Lifestyle
Satisfaction, Events
Competitor Actions,
Online Behavior
Contact, Size, Socio-
Economic, SIC,
Demographics
Sources
Internal Systems,
Loyalty Schemes,
External Data Sources
Social Media,
Cookies,
Market Research
Operational
Systems, External
Data Sources
Strengths Personalizes to
organization
Relevant to CustomerEasily Available
Key to
Success
Completeness CreativityAccuracy
Purpose
Understand
Customer’s
Behavior
Understand Motivations
& Attitudes
Understand Customer
Types of Customer Information
Have a Customer Information Strategy
Increasing
Difficulty & Value

And a Data Strategy – 360 Consumer View
27
CUSTOMER INSIGHTS PURCHASE CONSIDERATION BRAND INTERACTION
Profile Completion
Social Connect
Mobile App Usage
Event Check-in
In-store Check-in
Post/retweet w/
Brand hashtag
Share Brand page
Referral (sign-
up/purchase)
Write Product Review
Add Item to Wish List
In-store try-on
Watch a video
Like a Product
Pin Product

Enhanced Consumer Data aka. 1st Party
28
STANDARD
DATA CAPTURE
ENHANCED
DATA CAPTURE
Name
Email
Mailing Address
Purchase Item
Transaction Amount
Name
Email
Mailing Address
Purchase Item
Transaction Amount
Items Viewed
Items Added to Wish List
Purchase Frequency
Visit Behavior
Preferences
Social Likes
Social Posts
Product Ratings & Reviews
Emails Opened/Clicked
Advertisements Clicked

Leverage Everything You Know About Your Consumers
LIFECYCLE
BEHAVIORIDENTITY
SEGMENT
LOCATION VALUE
Client
1st Party Data
CRM
Facebook
1st Party Data
+

© 2014 Merkle. All Rights Reserved. Confidential
Addressable Consumer Experiences Create
Competitive Advantage

Ad Tech & Marketing Tech Make Personalization Possible
MARKETER
CONSUMER

3 Fundamental Layers
DATA MANAGEMENT
ANALYTICS & ORCHESTRATION
MEDIA & CHANNEL EXECUTION
CONSUMER
MARKETER

Realizing the Benefits of Personalization or A.C.E Requires
Mid Funnel Integration
Awareness
Consideration
Engagement
Conversion
Commerce
Experience
CRM
Channel
Optimization
Performance
Media
Brand Media
MEDIA &
CHANNEL EXECUTION
ANALYTICS &
ORCHESTRATION
DATA MANAGEMENT

Awareness
Consideration
Engagement
Conversion
Commerce
Experience
But Today’s Consumer Journey Resembles Pachinko
Customer Remarketing
Audience 1 Audience 2 Audience 3
Upper Funnel
Mid Funnel
Lower Funnel
Media
Sales/Service Experience
Traditional CRM
DM, EM, Re-Targeting
Unknown
High-value customer
Unknown
High-value customer
Low-value customer
The
Expanded Mid Funnel
Singular experience
from consideration
through conversion
CRM
Channel
Optimization
Performance
Media
Brand Media
Desktop Phone Tablet TV

The 3C’s are Foundational for Addressable Consumer Experiences
CONTEXT
Our applied knowledge
of the consumer
Every asset we
have to put in front
of the consumer
CONTENTCONNECTIVITY
When we bring
the two together
in media and channels

A Connected Customer View is Essential
Social
Print
Direct Mail
Display
Search TV/Vide
o
Mobile
Site
Product
LTV
Segment
Demographics
Life Events
Call
center
Meetings
Email
1st Party
Data
3rd Party
Data
CRM Database

Audience Platforms
Integration of the Marketer’s Person-Level Data Assets with
Addressable Audience Platforms Creates Opportunity
An Audience Platform is a digital technology that enables
targeted, personalized experiences to individuals
Customers
1st Party
Data
3rd Party
Data
CRM Database

Audience Targeting
39
Traditional Vehicles, plus:
Display Re-Targeting
Facebook Custom Audiences /
Twitter Tailored Audiences
Geo-Fenced Mobile Display / In-Store Beacons
SMS
RLSAs

Drawn by LoBianco Studios 2-02
Case Studies

Upper Funnel
Lower
Funnel
Mid-funnel
Upper Funnel
Lower
Funnel

Initial Inclusions
All Simplified Issue
Term (SIT)
Completed
Applications (~53K)
Proposed Target Segments Comments
1 – Random Sample (Include sold
policies only, ~26K)
2 – SIT Basic cuts (remove low value,
include sold accts, ~20K)
3 – SIT High Value (Include policies w/
ann prem > $500, ~8K)
4 – SIT Internet Savvy (Include policies
sourced online only, ~8K)
5 – MLT Basic Cuts (remove low value,
include sold accts, ~20K)
• Establish baseline
• Future Model Sample
• Comparison to “Targets”
• Prove targeting concept
• “Easy” solution
• $200 Premiums (~75%)
• Top ~25% of policies
• Validate target CPA
• Policies, remove “free looks”
• Target responders – OEA
• Target online dispositions
• Include min Prem ($100)
• Lower conversion costs
• Policies, remove “free looks”
• Generate understanding of
different product performance
• Extrapolate targeting benefits
All MetLife Term
(MLT) Completed
Applications (~60K)

Image: A
Image Text: A
Post Text: A
Link Title: A
Link Description: A
Image: A
Image Text: B
Post Text: A
Link Title: A
Link Description: A
Image: A
Image Text: C
Post Text: A
Link Title: A
Link Description: A
Image: B
Image Text: A
Post Text: A
Link Title: A
Link Description: A
CT-1000091
CT-1000092
CT-1000093
CT-1000094
Ad Unit Combination Test ID
81 Permutations

Increase in lead to sale ratio by
as compared to the next best performing channel
decrease in Cost per Lead in 2014
the Cost per Premium (CPP) of other display channels in 2014
“Working with their agency Merkle, MetLife used lookalike audiences to
find people more like its existing customers, MetLife ran ads that led
people to its “get a quote” website page.”
- Sheryl Sandberg, Facebook
Facebook Earnings Call 10/28/14
2.4X
49%
less than half the cost

Whopping Impact of the “Mid Funnel”
Q1 - 2014Q4 - 2013

Merkle
www.Merkleinc.com

Let’s All Be Leonardo!

Or Einstein!

AGILE Marketing Will be THE Hallmark of Winners!
1. Collect
&
Integrate
2.
Analyze &
Discover
3. Act &
Optimize
4. Execute
& Deliver
SPEED
PROCESS
METRICS
DATA to Understand
Customers/Consumers
• Manage Data
• Rich Content
• Contextual Relevance
• Strategic Intent
• Omnichannel Touchpoints
• Orchestrated Customer Experience
• Continuous Improvement
• Refine
• Benchmarking
• MEASUREMENT
Critical Success Factors
• Rapid Cycle Learning
• CMO & CIO Partnership

A Phased Approach is Best
Fully
Integrated
Experience
• Streamlined
campaigns
• Recommender
system enables
1-to-1
• Name/address
hygiene
• All addressable
media
• Web data
integration
• Two way
interaction
• Real-time
integration
• Real-time Two
way interaction
• Store & POS
integration
• Call center
integration
• Media &
Marketing Mix
• Segmentation
alignment
Offline
Channel
Integration
Digital
Channels
Integration
Mass Media
Integration
Digital Media
Integration
Email and
DM
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
CRM
Database

MERKLE - Experts in the Mid Funnel!
CONSULTING
DATA
MANAGEMENT
PERFORMANCE
MEDIA
Data Driven, Tech Enabled Performance
Marketing Agency, we have built a set of
solutions to capitalize on this new funnel.
In order to capitalize on this new world,
organizations will have to rethink their internal
structure, processes, and marketing supply chain.
CRM
Brand Media
Performance
Media
Channel
Optimization

Thank You
Acahill@MerkleInc.com
@AileenCahill
SlideShare

Using data to design personalized customer experiences CX

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (19)

Destaque

Destaque (15)

Semelhante a Using data to design personalized customer experiences CX

Semelhante a Using data to design personalized customer experiences CX (20)

Using data to design personalized customer experiences CX

Notas do Editor