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WHITEPAPER / SITE OPTIMIZATION




 Taking Control with
Marketing Optimization
   Personalization is Key to Success
INTRODUCTION
       Your company spends lots of money driving people to your site. Is your organization getting the most out of
       those people? Proper testing and targeting fuels a relevant, personalized web experience that results in
       more money for your company. Customers are asking for a personalized web experience. It’s time to listen,
       and deliver.

       This white paper examines why giving the consumer a personalized experience is no longer a choice but a
       mandate and how marketers are listening to consumers in order to improve their experience through
       digital marketing optimization.

       The move from a traditional pushed marketing message to a consumer pull strategy has fundamentally
       changed the way organizations look at marketing. For many consumers, their experience with a brand
       online is key to evaluation and perception which influences if they interact with that company moving
       forward.

       Providing an experience which feels personal and relevant to the individual is critical. Websites can provide
       a rich data environment, even in the absence of registration or log-in which can create a dynamic and
       valuable experience for both user and brand. Making that happen requires a combination of the right
       technology and a marketing process specifically designed to optimize the digital channel.




WHITEPAPER / SITE OPTIMIZATION                                                                                     2
GETTING PERSONAL MEANS GETTING BUSINESS
       Consumers have choices. Whether it be the channel in which they make a purchase or the brand of product
       they choose, they have a choice. In this competitive landscape, how do organizations differentiate
       themselves? For brands, becoming a part of a consumer’s lifestyle is central to nurturing long-term
       customer relationships.

       Companies are adopting a personalized approach to marketing that has conditioned consumers to expect
       customized service anywhere they go online. From Amazon’s cohort marketing – presenting items that
       other people have bought at the same time as the product being considered – to the grocery store clubcards
       that reward loyalty with offers based on previous purchases, marketing as a personalized exchange based
       on known preferences, behaviors and demographics has become much more sophisticated.



         E-Commerce Scenario – From Store Front to Your Front

         Online retailers face even more of a challenge in getting new products noticed, especially in multi-line
         stores, because of the breadth of the proposition and the narrowness of the window of attention.

         One in four consumers do not notice new food products on the shelf when they are shopping,
         according to Datamonitor. And that is in the physical environment where the eye is able to roam across
         physical space and take in information rapidly.

         For high-inventory, “long tail” vendors, meeting the individual needs of visitors to their specialist
         outlet is essential to business success. Yet most of the focus has been on using the digital channel to
         gain advantages of distribution, supply chain ef ficiency and price comparison. Personalization has
         of ten been restricted to broad product categories based on previous purchases.

         Without the physical constraints, however, online retailing is better placed to pitch its merchandise and
         of fers – and so build a higher basket value per visit – provided it leverages the right data and technical
         infrastructure. That is what an optimized environment delivers. It allows an online retailer to begin
         personalizing the experience from the first visit, even before the identity of a visitor is known.

         Using referring data, such as search term or af filiate origin, a new visitor can be presented with
         marketing of fers and content based on business rules developed from historical data. By testing many
         combinations of these propositions, the of fers being served can be progressively optimized.
         Navigation paths through the site can also be used to define content dynamically, but not randomly,
         through the deployment of Next Best Of fer type models.

         Once a visitor has registered or transacted, the full richness of personal information can be brought to
         bear to provide a true, individual experience.




WHITEPAPER / SITE OPTIMIZATION                                                                                         3
THE POWER TO KNOW
       The next step is to develop segment-based of fers and content. First generation technologies of ten
       restricted these targeted of fers to a few fixed areas on the site such as banners or skyscrapers, or lef t the
       process to external advertising networks to manage.

       As technology has advanced, websites can now combine multiple data sources to gain true intelligence
       about an individual while also supporting real-time multivariate testing of every element with which
       visitors interact. The knowledge gained with these new technologies progressively builds a rich, profile of
       the individual which can be leveraged as a highly ef fective marketing tool for the business.

       In a study of 6,474 users of a ringtone website, it was found that content matched to a user’s preferences
       not only gained higher levels of consideration than non-matched content by 25%, but that users
       downloaded more preference-matched ringtones (66.2%) than when presented with random selections
       (42.2%). (Source: Personalization and Choice Behaviour, Ho et al).



         Lead Generation Scenario – From Who to When?

         Rather than the old method of casting a broad net of prospecting messages then qualif ying the
         individual when they arrive at the website, a warm prospect can be pre-qualified through data
         gathering and profiling then delivered to the right touchpoint for conversion.

         The same data capture process used by external lead generation networks can now be deployed into
         the corporate website to allow for on-site qualification and marketing optimization. The starting point
         is to capture visitor characteristics and behavior from the clickstream. A wealth of important indicators
         can be picked up in this way from before the visitor comes to the website through search terms or from
         the origin of a clickthrough, data can also be geo-coded using the IP address.

         From these sources, segments can be created that clearly distinguish between dif ferent types of visitor
         and the way they act on site. Content is served based on these segment definitions – from marketing
         collateral to product assortment through to data capture surveys. Over time, patterns can be
         determined through testing that allow the site to be optimized for each segment and, ultimately as
         data integration becomes more extensive, down to the individual level.




WHITEPAPER / SITE OPTIMIZATION                                                                                           4
HELPING CUSTOMERS HELP THEMSELVES
       The rise of digital media has given customers unprecedented ways of interacting with organizations.
       While keeping the cost of access low and creating a virtual 24/7 presence for the organization, online
       self-service fits well into a consumer’s busy lifestyle and compressed attention span.

       According to the annual NCR Self-service Survey, 86% of consumers say they are more likely to do business
       with a company that of fers a self-service option up from 77% the year prior. A majority (52%) say it gives
       them a more positive view of the provider’s brand to have this flexibility.

       While customers save time and organizations save on costs, there is huge potential for upside for an
       organization.

       Customers of ten use self-service facilities in a purely transactional mind-set, entering with a specific goal
       and looking to achieve that goal as quickly as possible. In other channels such a phone purchase,
       organizations can cross-sell and up-sell allowing the customer to feel understood and supported.

       Online, an optimized self-service site can make more dynamic use of their their of fer models. At
       registration, a customer can be served of fer A which is related to content or products they recently viewed,
       for example. If this of fer does not generate a click, of fer B can be introduced and so on through the course
       of the consumer’s visit.

       Not only does this open up every consumer visit as an upsell opportunity, it also enhances the customers’
       experience by expanding their knowledge of the product and service range, pricing and of fers available.
       Since these messages are visible but do not interfere with the transaction itself, the negative impact is
       minimal to non-existent on visit duration for a customer who is not interested in these of fers.

         Self-Service Scenario - From Friction-Free to Stick-With-Me

         Bills and statements are an important contact point for any company that has an ongoing relationship
         with its customers involving recurring payments or service usage. For customers, this information has
         always been delivered on a schedule that suits the company.

         Opening up online self-service changes this dynamic by allowing customers to access account
         information at any time. It can also deliver an environmental benefit by eliminating the need for
         printed output. Many banks and telecommunications companies have used this to incorporate a
         marketing message to persuade customers to switch from printed statements to online.

         If the customer is able to log-in whenever they choose, then the organization should be ready to
         capitalize on this free advertising platform and promote additional products and services during that
         visit, otherwise it loses a valuable opportunity. Optimizing this channel with relevant real-time
         marketing content and service information is critical.

         In this approach, the system draws on detailed profile and history information as each customer logs
         in. This identifier should be the trigger for a system of rules that dynamically pull up the most
         appropriate messages for that customer and serve them in real-time within the self-service site.

         For the customer, this optimized visit will feel highly personal, even if the propositions have only been
         built at a segment level. The incremental revenue which can be driven in this way can be significant,
         especially if the of fers are closely aligned to the service action – for example, promoting travel
         insurance if a customer is ordering foreign currency online.


WHITEPAPER / SITE OPTIMIZATION                                                                                       5
WEBTRENDS OPTIMIZE - A RELEVANT EXPERIENCE FOR
       EVERY VISITOR
       Personalized content can dramatically increase conversion rates. Reaching the point where the optimal
       content or offer is made to each customer during a website visit can be challenging for an organization if
       resources or budget are constrained. That is why Webtrends brings you Optimize - a self-service platform
       or full-service solution specifically designed to enable you to develop your digital content and match it to
       specific audience groups.

       Optimize provides a unified solution for the key dimension so f dynamic online marketing – testing,
       segmentation and targeting. As your ability and knowledge increases, Webtrends optimize scales and
       extends your digital marketing reach. Start with the uplift achieved from A/B or multivariate testing then
       progress to predictive analytics to decide which offer a visitor should receive in real-time. All using the
       same elegant technology platform.

       Optimize segmentation lets you focus your offers to specific visitor types, whether it be by geo-location,
       new visitors or returning customers just to name a few. Build a segment library for re-use across your
       online estate and within existing channels. As you would expect with Webtrends, you can access any
       available data for use within the segmentation process.

       Segmenting content can be progressively optimized until you reach the point where targeting by user is
       appropriate and achievable. Your optimal offer or content can be delivered to segments which have been
       identified as the most valuable or important to your business. Optimize supports the delivery of a true
       one-to-one customer experience by targeting to the individual using a rules engine that turns tested
       results into continuous positive outcomes.




       CONCLUSION: PERSONALIZATION IS KEY TO GROWTH
       Providing the customer a customized experience is easily attainable. With the right technology and
       resources, organizations can take incremental steps to personalized digital optimization.

       With the arrival of a new generation of website management platforms, marketing is now able to create a
       customized experience for the consumer.

       For the consumer, this means a website that enables the visitor to quickly find the information they are
       looking for. For the organization, this means having the ability to align products and services to the
       consumers’ interest.

       By having the technology resources to effectively conduct multivariate testing and customize content ever
       easier to manage is critical to the success of an organization. To effectively take advantage of the
       technology,

       Consumers want a personalized experience. They want to know that companies are paying attention and
       can add value to their experience. It is time for Marketing to deliver.




WHITEPAPER / SITE OPTIMIZATION                                                                                        6
851 SW 6th Ave., Suite 1600		                   Webtrends Sales		   Europe, Middle East, Africa	                          For offices worldwide, visit:
Portland, OR 97 204			                          1.888.932.87 36		   + 44 (0) 1784 415 700		                               www.Webtrends.com
1.503.294.7025			                               sales@Webtrends.com	emea@Webtrends.com
fax: 1.503.294.7 1 30


About Webtrends Inc.
Webtrends is the global leader in mobile and social analytics. We help marketers create, measure and improve campaigns for more than 7,000 leading
brands including: The New York Times, Microsoft, BMW, RIM, China Telecom, China Mobile, CCTV, Tencent QQ, Hitachi, The Associated Press, HSBC,
Barclays, Vivo Cellular and Petrobras. Our leadership extends beyond the web analytics industry we founded to the measurement, optimization and
integration of all digital content and customer intelligence, including web sites, social media, mobile and paid-search advertising. Webtrends is a registered
trademark of Webtrends Inc. in the United States and other countries. All other trademarks and registered trademarks are the properties of their respective
owners.


WHITEPAPER / SITE OPTIMIZATION                                                                                                                               7

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Whitepaper taking controlwithmarketingoptimization-webtrends

  • 1. WHITEPAPER / SITE OPTIMIZATION Taking Control with Marketing Optimization Personalization is Key to Success
  • 2. INTRODUCTION Your company spends lots of money driving people to your site. Is your organization getting the most out of those people? Proper testing and targeting fuels a relevant, personalized web experience that results in more money for your company. Customers are asking for a personalized web experience. It’s time to listen, and deliver. This white paper examines why giving the consumer a personalized experience is no longer a choice but a mandate and how marketers are listening to consumers in order to improve their experience through digital marketing optimization. The move from a traditional pushed marketing message to a consumer pull strategy has fundamentally changed the way organizations look at marketing. For many consumers, their experience with a brand online is key to evaluation and perception which influences if they interact with that company moving forward. Providing an experience which feels personal and relevant to the individual is critical. Websites can provide a rich data environment, even in the absence of registration or log-in which can create a dynamic and valuable experience for both user and brand. Making that happen requires a combination of the right technology and a marketing process specifically designed to optimize the digital channel. WHITEPAPER / SITE OPTIMIZATION 2
  • 3. GETTING PERSONAL MEANS GETTING BUSINESS Consumers have choices. Whether it be the channel in which they make a purchase or the brand of product they choose, they have a choice. In this competitive landscape, how do organizations differentiate themselves? For brands, becoming a part of a consumer’s lifestyle is central to nurturing long-term customer relationships. Companies are adopting a personalized approach to marketing that has conditioned consumers to expect customized service anywhere they go online. From Amazon’s cohort marketing – presenting items that other people have bought at the same time as the product being considered – to the grocery store clubcards that reward loyalty with offers based on previous purchases, marketing as a personalized exchange based on known preferences, behaviors and demographics has become much more sophisticated. E-Commerce Scenario – From Store Front to Your Front Online retailers face even more of a challenge in getting new products noticed, especially in multi-line stores, because of the breadth of the proposition and the narrowness of the window of attention. One in four consumers do not notice new food products on the shelf when they are shopping, according to Datamonitor. And that is in the physical environment where the eye is able to roam across physical space and take in information rapidly. For high-inventory, “long tail” vendors, meeting the individual needs of visitors to their specialist outlet is essential to business success. Yet most of the focus has been on using the digital channel to gain advantages of distribution, supply chain ef ficiency and price comparison. Personalization has of ten been restricted to broad product categories based on previous purchases. Without the physical constraints, however, online retailing is better placed to pitch its merchandise and of fers – and so build a higher basket value per visit – provided it leverages the right data and technical infrastructure. That is what an optimized environment delivers. It allows an online retailer to begin personalizing the experience from the first visit, even before the identity of a visitor is known. Using referring data, such as search term or af filiate origin, a new visitor can be presented with marketing of fers and content based on business rules developed from historical data. By testing many combinations of these propositions, the of fers being served can be progressively optimized. Navigation paths through the site can also be used to define content dynamically, but not randomly, through the deployment of Next Best Of fer type models. Once a visitor has registered or transacted, the full richness of personal information can be brought to bear to provide a true, individual experience. WHITEPAPER / SITE OPTIMIZATION 3
  • 4. THE POWER TO KNOW The next step is to develop segment-based of fers and content. First generation technologies of ten restricted these targeted of fers to a few fixed areas on the site such as banners or skyscrapers, or lef t the process to external advertising networks to manage. As technology has advanced, websites can now combine multiple data sources to gain true intelligence about an individual while also supporting real-time multivariate testing of every element with which visitors interact. The knowledge gained with these new technologies progressively builds a rich, profile of the individual which can be leveraged as a highly ef fective marketing tool for the business. In a study of 6,474 users of a ringtone website, it was found that content matched to a user’s preferences not only gained higher levels of consideration than non-matched content by 25%, but that users downloaded more preference-matched ringtones (66.2%) than when presented with random selections (42.2%). (Source: Personalization and Choice Behaviour, Ho et al). Lead Generation Scenario – From Who to When? Rather than the old method of casting a broad net of prospecting messages then qualif ying the individual when they arrive at the website, a warm prospect can be pre-qualified through data gathering and profiling then delivered to the right touchpoint for conversion. The same data capture process used by external lead generation networks can now be deployed into the corporate website to allow for on-site qualification and marketing optimization. The starting point is to capture visitor characteristics and behavior from the clickstream. A wealth of important indicators can be picked up in this way from before the visitor comes to the website through search terms or from the origin of a clickthrough, data can also be geo-coded using the IP address. From these sources, segments can be created that clearly distinguish between dif ferent types of visitor and the way they act on site. Content is served based on these segment definitions – from marketing collateral to product assortment through to data capture surveys. Over time, patterns can be determined through testing that allow the site to be optimized for each segment and, ultimately as data integration becomes more extensive, down to the individual level. WHITEPAPER / SITE OPTIMIZATION 4
  • 5. HELPING CUSTOMERS HELP THEMSELVES The rise of digital media has given customers unprecedented ways of interacting with organizations. While keeping the cost of access low and creating a virtual 24/7 presence for the organization, online self-service fits well into a consumer’s busy lifestyle and compressed attention span. According to the annual NCR Self-service Survey, 86% of consumers say they are more likely to do business with a company that of fers a self-service option up from 77% the year prior. A majority (52%) say it gives them a more positive view of the provider’s brand to have this flexibility. While customers save time and organizations save on costs, there is huge potential for upside for an organization. Customers of ten use self-service facilities in a purely transactional mind-set, entering with a specific goal and looking to achieve that goal as quickly as possible. In other channels such a phone purchase, organizations can cross-sell and up-sell allowing the customer to feel understood and supported. Online, an optimized self-service site can make more dynamic use of their their of fer models. At registration, a customer can be served of fer A which is related to content or products they recently viewed, for example. If this of fer does not generate a click, of fer B can be introduced and so on through the course of the consumer’s visit. Not only does this open up every consumer visit as an upsell opportunity, it also enhances the customers’ experience by expanding their knowledge of the product and service range, pricing and of fers available. Since these messages are visible but do not interfere with the transaction itself, the negative impact is minimal to non-existent on visit duration for a customer who is not interested in these of fers. Self-Service Scenario - From Friction-Free to Stick-With-Me Bills and statements are an important contact point for any company that has an ongoing relationship with its customers involving recurring payments or service usage. For customers, this information has always been delivered on a schedule that suits the company. Opening up online self-service changes this dynamic by allowing customers to access account information at any time. It can also deliver an environmental benefit by eliminating the need for printed output. Many banks and telecommunications companies have used this to incorporate a marketing message to persuade customers to switch from printed statements to online. If the customer is able to log-in whenever they choose, then the organization should be ready to capitalize on this free advertising platform and promote additional products and services during that visit, otherwise it loses a valuable opportunity. Optimizing this channel with relevant real-time marketing content and service information is critical. In this approach, the system draws on detailed profile and history information as each customer logs in. This identifier should be the trigger for a system of rules that dynamically pull up the most appropriate messages for that customer and serve them in real-time within the self-service site. For the customer, this optimized visit will feel highly personal, even if the propositions have only been built at a segment level. The incremental revenue which can be driven in this way can be significant, especially if the of fers are closely aligned to the service action – for example, promoting travel insurance if a customer is ordering foreign currency online. WHITEPAPER / SITE OPTIMIZATION 5
  • 6. WEBTRENDS OPTIMIZE - A RELEVANT EXPERIENCE FOR EVERY VISITOR Personalized content can dramatically increase conversion rates. Reaching the point where the optimal content or offer is made to each customer during a website visit can be challenging for an organization if resources or budget are constrained. That is why Webtrends brings you Optimize - a self-service platform or full-service solution specifically designed to enable you to develop your digital content and match it to specific audience groups. Optimize provides a unified solution for the key dimension so f dynamic online marketing – testing, segmentation and targeting. As your ability and knowledge increases, Webtrends optimize scales and extends your digital marketing reach. Start with the uplift achieved from A/B or multivariate testing then progress to predictive analytics to decide which offer a visitor should receive in real-time. All using the same elegant technology platform. Optimize segmentation lets you focus your offers to specific visitor types, whether it be by geo-location, new visitors or returning customers just to name a few. Build a segment library for re-use across your online estate and within existing channels. As you would expect with Webtrends, you can access any available data for use within the segmentation process. Segmenting content can be progressively optimized until you reach the point where targeting by user is appropriate and achievable. Your optimal offer or content can be delivered to segments which have been identified as the most valuable or important to your business. Optimize supports the delivery of a true one-to-one customer experience by targeting to the individual using a rules engine that turns tested results into continuous positive outcomes. CONCLUSION: PERSONALIZATION IS KEY TO GROWTH Providing the customer a customized experience is easily attainable. With the right technology and resources, organizations can take incremental steps to personalized digital optimization. With the arrival of a new generation of website management platforms, marketing is now able to create a customized experience for the consumer. For the consumer, this means a website that enables the visitor to quickly find the information they are looking for. For the organization, this means having the ability to align products and services to the consumers’ interest. By having the technology resources to effectively conduct multivariate testing and customize content ever easier to manage is critical to the success of an organization. To effectively take advantage of the technology, Consumers want a personalized experience. They want to know that companies are paying attention and can add value to their experience. It is time for Marketing to deliver. WHITEPAPER / SITE OPTIMIZATION 6
  • 7. 851 SW 6th Ave., Suite 1600 Webtrends Sales Europe, Middle East, Africa For offices worldwide, visit: Portland, OR 97 204 1.888.932.87 36 + 44 (0) 1784 415 700 www.Webtrends.com 1.503.294.7025 sales@Webtrends.com emea@Webtrends.com fax: 1.503.294.7 1 30 About Webtrends Inc. Webtrends is the global leader in mobile and social analytics. We help marketers create, measure and improve campaigns for more than 7,000 leading brands including: The New York Times, Microsoft, BMW, RIM, China Telecom, China Mobile, CCTV, Tencent QQ, Hitachi, The Associated Press, HSBC, Barclays, Vivo Cellular and Petrobras. Our leadership extends beyond the web analytics industry we founded to the measurement, optimization and integration of all digital content and customer intelligence, including web sites, social media, mobile and paid-search advertising. Webtrends is a registered trademark of Webtrends Inc. in the United States and other countries. All other trademarks and registered trademarks are the properties of their respective owners. WHITEPAPER / SITE OPTIMIZATION 7