forrester webinar - individualization versus personalization
TRANSCRIPT
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Empowered customers have given rise to a new era
Age of manufacturing Mass manufacturing makes industrial powerhouses successful
• Ford • Boeing • GE • RCA
Age of distribution Global connections and transportation systems make distribution key
• Wal-Mart • Toyota • P&G • UPS
Age of information Connected PCs and supply chains mean those that control information flow dominate • Amazon • Google • Comcast • Capital One
Age of the customer Empowered buyers demand a new level of customer obsession
• Macy’s • Salesforce.com • USAA • Amazon
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Customers Are empowered › Before, organizations
owned the experience and the commerce tech.
› But tech in customers hands has given them more choice and more control.
› Customers now demand experiences along their journey that work them.
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Delivering On All Five Market Imperatives Is The Key To Success In The Age Of The Customer
Drive business growth with privacy
Turn big data into business insights
Embrace the mobile mind shift
Accelerate your digital business
Transform the customer experience
Age of the
customer
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Each time a customer is exposed to an improved shopping experience, their
shopping expectations are reset to a new higher level.
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Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience Is A Significant Factor In Every Shopper’s Journey
68% “I am unlikely to return to a
website that does not provide a satisfactory customer experience.”
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Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience is a significant factor in every online shopper’s journey
7%* of consumers agree
with statement “Email offers are usually well timed with my needs.”
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Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience is a significant factor in every online shopper’s journey
7%* of consumers agree
with statement “Email offers are usually well timed with my needs.”
* In 2015, it was 9%!
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Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 ‘15
Source: Forrester's Q2 ‘16 Global eBusiness And Channel Strategy Professional Online Survey
77% of consumers have chosen,
recommended, or paid more for a brand that provides a personalized
service or experience.
89% of eBusiness and channel strategy
professionals plan to invest in personalizing the customer experience in 2016/2017.
Personalization is being prioritized due to its impact on customer experience
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Personalization is a Top eBusiness priority
Base 196 eBusiness And Channel Strategy Professionals Source: Forrester’s Q3 2015 Global eBusiness And Channel Strategy Professional Online Survey
“Of the tech you will be investing in during 2016, please identify your top priorities?”
1. Responsive Web Design 2. Personalization Technology 3. Customer Relationship Management Tools 4. Mobile App and Engagement Platform 5. Product Recommendations 6. eCommerce Platform 7. Site, Payment, System Security Compliance/Protection 8. Big Data 9. Site Search 10. Customer Insights and Analytics Tools
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75%
55% 49% 44%
32% 28%
Content on the website
Promotions/product offers
Product recommendations
Reminders and alerts
Content on the mobile app experience
Screen layout
What parts of the experience are you personalizing? (click all that apply)
Investments in online personalization now go beyond product recommendations
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26%
33%
34%
44%
51%
54%
54%
59%
72%
0% 20% 40% 60% 80%
Making the store easy to browse for customers
Ensuring that we always have competitive prices
Providing self service technologies for shoppers
Improving the knowledge of associates
Making it convenient to purchase (short checkout lines, curbside pickup, buy online and pick up in store)
Ensuring that we always have the products customers want
Making it easy for customers to find the products they are looking for
Making the store more engaging
Personalizing the customer experience
For your organization / company, what are the main opportunities for improving the customer experience at your company's stores? (Please choose your top 5 only.)
Source: Base: 61 eBusiness and Channel Strategy professionals Source: Forrester's Q2 2016 Global eBusiness And Channel Strategy Professional Online Survey
In an omnichannel world, in-store personalization also ranks top of the list
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Leading luxury retailers are recognizing the gap that segmentation creates for
personalizing customer experiences
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Other Products
Me
Product
Product Segmentation
Personalization has historically been driven by segmentation
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Other Products
Personalization has historically been driven by segmentation
Me
Product
Product Segmentation
Personalization based on segmentation
provides the “wrong” experience for most of
your customers.
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Depth
Reach
Relationship
E XPLOR E
US E
AS K
ENGAGE DIS C OVER
BUY
Single data points are often used to personalize the entire customer journey
Me
XSingle data point
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Depth
Reach
Relationship
E XPLOR E
US E
AS K
ENGAGE DIS C OVER
BUY
Single data points are often used to personalize the entire customer journey
Me
XSingle data point Just because you know
one thing about the customer doesn’t mean
you know everything about the customer.
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Organizations too quickly check the box on delivering “personal” experiences
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Organizations too quickly check the box on delivering “personal” experiences
It is a waste of everyone’s time to personalize
experiences that provide no real value to a
customer’s journey.
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Retailers must be careful to understand and respect personal boundaries
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Golden Rule: be overt about collecting personal
data, but covert about communicating what you know about the customer.
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eBusiness leaders must help organizations prepare for the next evolution of personalization, which will rely more on the pillars of individualization rather than segmentation.
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Q1: How Successful Are You When You Get Personalization Right?
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Q2: How Successful Would You Be If You Got Personalization Right More Often?
Q1: How Successful Are You When You Get Personalization Right?
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To start: You can only truly personalize experiences for consumers you recognize
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Today’s social-sharing customers are looking for brands to understand them.
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Email & mobile phone # (for
SMS) are both simple ways to
consistently identify
customers
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Retailers must utilize digital across the entire customer journey using two systems
Capture & Understand Communicate & Automate
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A solid individualization strategy is built upon key technology investments that have
four unique characteristics.
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1. Customers are identified and treated as a segment of one using rich customer profiles.
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2. Customer data is assessed in real-time and dynamically calculates intent.
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3. Personalized content is delivered equally across every screen and channel.
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4. Connected technologies enable far richer and more relevant engagements.
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What should I be doing today?
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Not a revolution . . . but rather an evolution
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. . . it is a business strategy that drives tactics and affects every part of an organization.
Individualization is not a tactic . . .
Security and risk
Enterprise architecture
eCommerce
Application design
Merchandise planning
Marketing
Customer insights
Customer experience Individualization:
engaging customers as a segment of one in real
time by listening, capturing, measuring,
assessing, and addressing intent across
every enterprise touchpoint.
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What are the first steps for building an individualization strategy?
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› Consolidate customer data from both internal databases and external partners into a single customer data repository.
Strategic opportunities for improved personalization
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› Consolidate customer data from both internal databases and external partners into a single customer data repository.
› Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions.
Strategic opportunities for improved personalization
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› Consolidate customer data from both internal databases and external partners into a single customer data repository.
› Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions.
› Design each digital touchpoint to both use and collect customer data.
Strategic opportunities for improved personalization
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› Consolidate customer data from both internal databases and external partners into a single customer data repository.
› Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions.
› Design each digital touchpoint to both use and collect customer data.
› Take off blinders and consider the kind of customer data that can be captured in one touchpoint for creating personalization in others.
Strategic opportunities for improved personalization
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› Consolidate customer data from both internal databases and external partners into a single customer data repository.
› Identify digital gaps in the ability to deliver personalization throughout the customer journey, and fill those gaps with digital solutions.
› Design each digital touchpoint to both use and collect customer data.
› Take off blinders and consider the kind of customer data that can be captured in one touchpoint for creating personalization in others.
› Be overt in collecting data (explain why), covert in delivering personalization (provide great experiences without explaining).
Strategic opportunities for improved personalization
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Individualization done right doesn’t look like personalization…
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Individualization done right doesn’t look like personalization…
…it just looks like a great experience.
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Individualization Use Cases & Results
Doug Berg CEO, MyAlerts
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Sites Doing Individualized Alerts
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Marketing Needs To Change
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Let Consumer Design / Own Their Marketing
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Types Of Individualization
Availability FavoritesWishListAlerts SaleAlerts NewProducts
ReviewAlerts RegistryAlerts PrivateOffers ReminderAlerts DemandInsights
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Captures Passive Intent For Future
• Minimal Same Day Visitor/Buyer Drop
• Captures All Future Intent For Each Product
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Recaptures Past Interest & Reduces Erosion
• 6,400+ Customers Signed Up
• 4,164 Returned To Site
• Pull’s Forward Past Interest
• Reduces Margin Erosion
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Visibility & Interaction With Intent Graph
921K Active Customers $113M In Future Potential
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Turn Frustration Into Future Sales
As High As 40% Of Customers Will Opt-In To Hear About
Future Product Availability
• 3,600+ Average Users Per Day • $216K Average Future Rev Per Day
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Delights Customers & Recaptures Interest
As High As 50% Return To Purchase
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More Strategic Merchandising & Planning
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Product Pre Release Alerts
Captured thousands of customers ahead of the
product launch
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Gain Demand Visibility
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Chat Bots For In Store Capture
Text “Alert” To 855-
ALERTS5
Alert
What product do you want alerts for?
The DJI Phantom Drone Accessory Kit
Is this it? Polar Pro Filters DJI Phantom 4 Accessory
Kit for $37.99
Yes
I see it’s out of stock, would you like a SMS or
Email alert when it’s back?
SMS
OK We’re On It! We’ll Text you when it’s available
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Let Customers Tune In To What They Want
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Deliver Relevancy They Want (Me-Mail)
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Learn What Your Customers Want
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Captures & Drives Future Intent
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Making Every Customer A Segment Of 1
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Customer Designed Alerts
Turns Navigation Into An Opt
In Menu
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Delivering Nearly 100% Relevancy
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Drives Social Media Levels Of Engagement
Multiple Visits Per
Week
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Easy User Controls At Interest Levels
Get Away From This
To Product, Category, And Brand Level
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Wish List > Watch List
Adds Alerting Capabilities To Any Wish List
Every Product Added To List Becomes Alert
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Wish List > Watch List
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Wish List > Watch List
Before Alerting After Alerting
• Nearly 10X Higher Engagement Rate • 40% Return To Site Monthly
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Reminder Alerts
Allow Customers To Set Reminders
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Move From Historical To Future Focused
![Page 73: Forrester Webinar - Individualization Versus Personalization](https://reader031.vdocuments.net/reader031/viewer/2022022419/58ecc2141a28ab16388b4601/html5/thumbnails/73.jpg)
Capture Future Revenue
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Automated Monitoring & Messaging Engine
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Capture Intent On Every Visit
![Page 76: Forrester Webinar - Individualization Versus Personalization](https://reader031.vdocuments.net/reader031/viewer/2022022419/58ecc2141a28ab16388b4601/html5/thumbnails/76.jpg)
How Individualization Compares
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Individualization Benefits
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Brendan Witcher [email protected] +1 617.613.6315
Doug Berg [email protected] +1 952.200.4233