future is now webinar series recap & strategic planning for 2015

The Future is NOW!

Joel Book

Principal, Marketing Insights

Salesforce Marketing Cloud

@joelbook

How Smart Brands are Using the Salesforce Marketing Cloud to Acquire, Onboard, Serve and Retain Customers

Safe Harbor

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First Visit Hand-Raise Purchase

Buying Cycle

Sales Cycle

• Online Research

• Exploring Brands and Products

• Narrowing of Options

• Making the decision

• Justifying Decision

• Ordering

The B2C Buying Process has Changed!

Online Research

“Before ever entering a store, 62% of shoppers already know what they want to buy through prior online research.”Bazaarvoice: "Social Trends Report 2013"

Buying Cycle

Sales Cycle

The B2B Buying Process has Changed!

Online Research

“70% of the B2B buying cycle is complete before the buyer engages with Sales”Source: Sirius Decisions

First Visit Hand-Raise Purchase

• Online Research

• Exploring Brands and Products

• Narrowing of Options

• Making the decision

• Justifying Decision

• Ordering

Source: Google – “Zero Moment of Truth”, 2012

The average consumer consults 10.2 sources of information before making a purchase.

{In 2010, it was 5.3}

of all shoppers use the Internet to research and purchase products and servicesSource: Cisco Internet Business Solutions Group

"Catch and Keep Digital Shoppers" 2013

By 2018, 58% of the US population will access the Internet via a connected TV.

Source: eMarketer, June 2014

of consumers rely on social networks to guide their purchase decision.Source: SproutSocial, 2014

73% of US mobile phone users are smartphone owners. Source: comScore MobileLens, October 2014

Consumers are Mobile First

of consumers use their mobile phone to research products in store.Source: Cisco Internet Business Solutions Group study: "Catch and Keep Digital Shoppers“ January 2013

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The Connected Consumer

More Informed.

More Empowered.

More Demanding.

1

Customers expect a

across channels!

The Customer Life Cycle

Business Getting Business Keeping

Brands Must Deliver Relevant Content through Every Channel at Every Stage of the Customer Life Cycle

78% of consumers are more likely to be a repeat customer if a brand provides them personalized offers.Source: Infosys

The Good News

54% of consumers would consider ending their relationship with a brand if they are not given tailor-made, relevant content & offers.Source: CMO Council

The Bad News

+

Channels Applications

Email Email Marketing

Retail Store

Website

Print Advertising

Social Media

Dealer/Agent

Broadcast

Mobile

Mobile Messaging

CRM

E-Commerce

Call Center

Billing

Service

Warranty

Product Needs, Interests, Preferences

CampaignResponse History

Analytics and Engagement Score

Product /ServicePurchase History

CustomerDemographics

Email AddressPhysical Address

Customer Data

Event Attendance History

Data is The Money Ball of 1:1 Marketing

Explicit Data (Reported) + Implicit Data (Observed)

2

“Data-driven companies are 5% more productive and 6% more profitable”

Source: Gartner, Inc., “Forecast Analysis: Enterprise Application Software, Worldwide, 1Q14 Update”, April 29, 2014

Brands Must Have a Multi-Channel Strategy for Observing,

Acquiring and Storing Customer Behavioral DataMelissa Smith Email: msmith@gmail.com

Age 32 Twitter: @MelissaSmith01

Chicago, IL Facebook Friend & Email Subscriber

Twitter Interaction

Triggered by

Published

Content

Email Signup

via Facebook

Welcome Email /

Request for

Needs & Interests

Site Browsing &

Guided Exposure

to Content

Email 1

Triggering

Mobile App

Download

Email 2 & Invitation

for Mobile Push

Sign up

Progressive Profiling Enables Brands to Learn about the Customer’s Interests and Predict what Offers, Information and Service are Relevant and Timely

Pro

gre

ss

ive

Pro

fili

ng

Twitter:

@MelissaSmith01

Melissa Smith

Postal Address

Email:

MSmith@gmail.com

Preferred Retailer

Birth year

Mobile Phone Number

Personal Profile Data

Browsing Behavior

Product Interests

Promotion Participation

Mobile App Downloaded

Product Purchase History

Requested Push Notifications

Customer Service History

When customer data is used to predict and deliver relevant content, Conversion Rates increase 6 – 9%!

Personalized Content Drives Higher Conversion

Source: 2014 Salesforce Marketing Cloud

Benchmark Report

Email

Mobile

Online

Journey Management

3

Customer Experience

is the key to delivering a great

Source: McKinsey & Company

The buyer considers an initial set of brands, based on brand perceptions and exposure to recent touch points.

1

The buyer adds or subtracts brands as he evaluates what he wants.

2

Ultimately, the buyer selects a brand at the moment of purchase.

3

After purchasing a product or service, the buyer builds expectations based on experience to inform the next decision journey.

4

The Customer

Decision Journey

Source: McKinsey & Company, 2013

Customer Journeys span all stages of the Customer

Experience, from buying the product to actually using it

Increases revenue by up to 15%

Improves customer satisfaction 20%

Lowers the cost to serve by up to 20%

Source: McKinsey & Company, 2013

Automating and Optimizing Customer Journeys Produces Impressive Results

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Acquire Onboard Engage Retain

1:1 Digital MarketingBest Practices for Building Profitable Customer Relationships

Acquire Onboard Retain

1:1 Digital MarketingBest Practices for Building Profitable Customer Relationships

Engage

AUDIENCES ARE YOUR ASSETS

HABIT #1: THINK LIKE AN ASSET MANAGER

Academy Sports is adding 15K+

email subscribers per week

($450K value/wk)

Pei Wei Uses In-Store Signage to Promote Special Offers and

Acquire New Email Subscribers

Pei Wei uses in-store signage to invite guests to text and receive a buy-one, get-one free coupon each time a new entrée is introduced.

Bar-Coded Email Coupons Drive

Consumers to StoresCampaign Results:

• In two weeks, Pei Wei generated 18,000 new email subscribers!

• Produced coupon redemption rates of 20%!

Acquire Onboard Retain

1:1 Digital MarketingBest Practices for Building Profitable Customer Relationships

Engage

Source: Live / Work Intelligence: “The Critical First 3 Months of Being a Customer” September 2014

Engaging New Customers in the First 3 Months is Critical

One-third of customers who defect to another brand do so after

encountering a situation in the early stage of the customer life cycle.

No Single Channel is More Effective than Email for Welcoming New Customers

The Customer Life Cycle

Business Getting Business Keeping

Email is #1 for Onboarding

Why this Works:

Set expectations for new

Mint.com users. Reinforces

value of using Mint.com

Effectively introduces newly

registered users to the Mint.com

site and the services it provides

Provides five clear steps on how

to proceed

Mint.com onboards new users with a series of four emails.

Subsequent Mint.com onboarding messages are delivered at +7 days, +14 days, and +35 days after the initial Welcome.

Acquire Onboard Retain

1:1 Digital MarketingBest Practices for Building Profitable Customer Relationships

Engage

of B2C marketing professionals rank eNewsletters Most Effective.2015 Content Marketing Trends – North America

Content Marketing Institute / MarketingProfs

Email is the Backbone of Dreamfields Growth and Success

Dreamfields is a client of HyperDrive Interactive

In 7 years, Dreamfields has . . .

- Grown its consumer email subscriber base to 614,000+

- Grown its healthcare professionals email subscriber base to 48,000+

- Increased sales 7X from 3M pounds/year to 22M pounds/year

Dreamfields’ “Brand Fans” are its Best Marketers!

Dreamfields’ “Brand Fans” are its Best Marketers!

Each year, Dreamfields

“brand fans” invite

130,000+ friends to try

Dreamfields

That’s 130,000+ trial

coupons in the hands of

potential customers

These coupons have a

30% Redemption Rate!!

"At RBC, the future is digital. When you combine the passion of our 80,000 employees with the strength of our digital channels, that is what will make us win in the future."

Mark Atkinson

Vice President, Digital Marketing & Sales

Royal Bank of Canada

RBC is Using Mobile to Improve the Quality

and Timeliness of Customer Service

RBC Email Alert

RBC Text Alert

RBC customers set up email alerts, text alerts, and push notifications.

Acquire Onboard Serve Retain

1:1 Digital MarketingBest Practices for Building Profitable Customer Relationships

Beyond The Rack is a Leading

eCommerce Flash Sale Retailer

• Members-only access• Unique sales every day (9am & 5pm)• Limited Time (48 to 72 hours)• Limited Inventory• Deep Discounts (up to 85% off retail)

of online shoppers are willing personal preferences to receive more relevant email.Source: Harris Interactive, 2014

BTR sends over 2.5 million unique email versions daily!

Personalization attributes include:

• Individual shopping behaviour

• What brands the shopper prefers

• What products the shopper likes

• What offers they don’t respond to

Personalization of email content delivers a 12-18% revenue lift!

Email is Responsible for Driving 66% of Revenues for Beyond The Rack

of Beyond The Rack Emails are Opened on a Mobile Device!

Beyond The Rack uses MobilePush to send daily push notifications to members notifying them of the special sales for the day.

Results• 60% of Beyond The Rack mobile app

downloaders have opted-in to receive push notifications.

• 75% of Beyond The Rack mobile app downloaders have signed into their account in the mobile app, allowing Beyond The Rack to learn more about individual customer preferences.

Jessica Alba

Actress and Founder of The Honest Company

CONFIDENTIAL 62

Metric Lifecycle Average Overall Average

Opens 39% 17%

Clicks 5% 3%

Conversions* 6x Overall Average

*Any click that ends up on the Order Confirmation page is considered a conversion

Lifecycle (Winback) Marketing Campaigns are

triggered by member purchase behavior. These

campaigns are the best performing of all email

campaigns for The Honest Company.

Lifecycle Marketing Campaigns

12/4/2014 CONFIDENTIAL 63

Lifecycle Marketing Campaigns – Lapsed Shoppers

Day 75 since last purchase Day 89 since last purchase

34% Open Rate

5% CTR

12/4/2014 CONFIDENTIAL 64

Lifecycle Marketing Campaigns – Canceled Members

7 Days After Trial Cancel 14 Days After Trial Cancel

31% Open Rate

5% CTR

12/4/2014 CONFIDENTIAL 65

Lifecycle Marketing Campaigns – Cart Abandoned

Email #1Sent 1 day after cart abandon

Email #2Sent 3 days after abandon if no

purchase since Email #1

36% Open Rate

3% CTR

Triggered Abandoned Cart Emails Capture Sales that Would Otherwise Be Lost

of online shoppers DO NOT complete purchase after placing item(s) in their shopping cart.Source: SeeWhy, 2014

of all abandoned cart emails are opened.

of clicks lead to purchases back on site.Source: SaleCycle, 2014

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The New Email Marketing Paradigm

Understand the needs, interests and behavior of individual customers and use this insight to predict and deliver

personalized content that aids the acquisition, onboarding, serving and

retention of customers.

The New Email Marketing Paradigm

Understand the needs, interests and behavior of individual customers and use this insight to predict and deliver

personalized content that aids the acquisition, onboarding, serving and

retention of customers.

The New Email Marketing Paradigm

Understand the needs, interests and behavior of individual customers and use this insight to predict and deliver

personalized content that aids the acquisition, onboarding, serving and

retention of customers.

Power the Customer Journey Text “JOURNEY” to 56237

Tips | Strategies | Trends

*Msg&Data Rates Apply. Get 1msg/week. HELP for help. STOPto Stop. T&Cs avail at http://pages.exacttarget.com/etsmshelp/

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Joel BookPrincipal, Marketing Insights

Salesforce Marketing Cloud

jbook@ExactTarget.com

@JoelBook

Thanks!

www.linkedin.com/in/joelbook/