nordan consulting. agenda: who we are benefits of our product challenges, impact you can expect to...
TRANSCRIPT
Nordan Consulting
Agenda:
• Who We Are
• Benefits of our product• Challenges, Impact you can expect to your business
• How are we different – How it works• Multi-Channel impacting messaging and offer
• Estimate on Level Of Effort / Client Time Required
Nordan Consulting
Our team makeup is the ideal skills mix for optimal delivery
Advanced Leadership Consultant - MBA
Harvard Grad
Chief Technology Officer – Retail
Solutions
Enterprise Architect – Retail Strategy and
Marketing
Advanced Analytics Scientist – Artificial
Intelligence PhD
Nordan Consulting
Today’s tech and consumer changes are producing many tough marketing challenges that are leaving marketers struggling to respond
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20 40 600
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Financial constraints
Decreasing brand loyalty
Growth market opportunities
ROI accountability
Customer collaboration and influence
Privacy considerations
Global outsourcing
Regulatory considerations
Corporate transparency
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Data explosion1
Social media2
Growth of channel and device choices3
Shifting consumer demographics4
Mean
Marketing Priority Matrix
Factors impacting marketing
Under-preparedness
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1011
Source: 2011 Global Chief Marketing Officer Study industry
Nordan Consulting
How effective is your organization in the key metrics of delivering customer life time value? Forrester report on “The State Of Retailing Online 2013: Key Metrics And Initiatives”
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Source: http://www.forrester.com/The+State+Of+Retailing+Online+2013+Key+Metrics+And+Initiatives/quickscan/-/E-RES89902#/The+State+Of+Retailing+Online+2013
Nordan Consulting
Not all marketing dollars are returning equal results. Its easier said then done to figure the ROI on your marketing dollars so you can do more with less
No Previous Purchase One Previous Purchase Multiple Previous Purchases
Revenue
59%
41%
Visitors
92%
8%1. Is it allocated correctly?
2. Is it producing the expected results
3. Does it have growth focused marketing attribution
How is your Marketing Budget Performing?
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-marketing-to-existing-online-customers.html
Nordan Consulting
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Source: http://www.kaushik.net/avinash/analytics-tips-complex-data-simple-logical-stories/?utm_source=social-media&utm_medium=twitterfbgp&utm_campaign=aktw
The way consumers reach purchasing decisions is constantly changing and this requires vigilance with ongoing innovative marketing execution
Nordan Consulting
Shoppers want retailers to provide personalized promotions and recommend relevant – based on IBM Global Study across 14 countries with 23,466 respondents
8From Transactions to Relationships: Connecting With a Transitioning Shopper Global View
Interest in retailer offers
Use my prior purchasing to offer me promotions
55% 43%Use my prior purchasing to recommend new products
Invite me to events
43%Involve me in new product ideas
36%
Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
Nordan Consulting
According to Forrester, the US retail marketing budget is disproportionately allocated. Effective marketing analytics can provide the necessary alignment
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-marketing-to-existing-online-customers.html
Nordan Consulting
Effective use of data enables marketers to target customers with the highest profitability potential, i.e. for 1% of shoppers returning = ~10% increase in revenue
US Email Marketing Spend, 2011 To 2016
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-marketing-to-existing-online-customers.html
http://www.forrester.com/US+Interactive+Marketing+Forecast+2011+To+2016/quickscan/-/E-RES59379#/US+Interactive+Marketing+Forecast+2011+To+2016/fulltext/-/E-RES59379
Shopper Conversion Estimates
52%54%84%60%
Nordan Consulting
Analytics based marketing actions and/or offers can tap into the five times higher conversion rates of the top two quartiles with the right and effective capabilities
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-marketing-to-existing-online-customers.html
Capabilities needed to convert profitable purchasers
Customer Insights
Trend Spotting
Customer Value Management
Highly Targeted Campaigns
Nordan Consulting
Based on our experience we expect our marketing analytics to increase by 50% on the results of current marketing solutions
The biggest impact to conversion in the first 12 hours of remarketing
Macy’s uses psychological triggers for increased conversions
Source: http://www.seewhy.com/conversion-academy.htm
No eMail Re-Marketing With eMail Re-Marketing
Nordan Consulting
Nordan is able to deliver results by applying the experience and skills from the dimensions critical to today’s business needs of engaging customers
Nordan Markting Analytics Solutions
Capabilities
Execution
Industry Insights
Analytics Accuracy
Nordan Consulting – Product Suggestion Engine
Consumer purchasing patterns are changing slower than implied by the media hype
Nordan Consulting – Product Suggestion Engine
Traditional Product Suggestion
Customer views a product
The system finds the items with the highest view rate when other customers have viewed this product
Nordan Product Suggestion
CustomerA
CustomerB
CustomerC
70% Similar
30% Similar
CustomerD
80% Similar
Nordan looks at the complete view of the customer – browsinghistory, purchasing history, and demographic data
Nordan then identifies products that customers B, C, and D havePurchased and makes suggestions for the next best offer.
Nordan Consulting
The patterns and trends you notice in your market sector can dictate the approach you take towards higher RMI
Leverage Point 5:Advocate Compensation Use platforms like Pinterest
to complement marketing efforts through the help of the extreme loyalist
Leverage Point 6:Application To Person Use of the mobile platform
to send intelligent, timely & location focused messages to mobile users
Nordan Consulting
What is the anatomy of your customer’s experience and how do you maximize this experience by capturing, analyzing and executing on all the possible info?
Transacting / Interacting Involved / LoyalAware / Engaged
Doing
Thinking
Experience
Feeling
• Communication Sources
• Process Flows• Data Extracted
• Transaction points• Process Flows• Data Extracted
• Ongoing conversation
• Process Flows• Data Extracted
• Triggering thoughts • Intuitive experience • Realized value
• Triggering Feelings • Supporting messages• Positive
experience
• Initial Experience • Visual assistance• Continuous
engagement
Image Source - http://www.percepta.com/regions/europe/resources/blog/2012/03/30/owns-social-media-customer-service/
Nordan Consulting
Marketing effectiveness driven by business value results drives much higher returns than traditional digital activity metrics
Activity Based Approach Value Based Approach
- Key Issues + Key Benefits
• Exhausts customers
• Encourages discount hunting / low profitability customers
• Lost opportunity to move a profitable customer to the next segment
• Low Margins
• Possible customer retaliation from spamming effects
• More relevant to the customer – increase probability of engagement and/or purchase
• Lower marketing spend – fewer messages, better timed, and personalized
• Increased margins – pattern detection on moving customers up the profitability segemnt
• Create advocates for your brand
• Reward profitable customers with the right incentive for advocacy and future spend
Nordan Consulting
The Level of Effort estimate for a 2 month POC – the process flow and LOE will be customized based on the project scoping effort in the Project Kickoff phase
Client LOE Impact
PhasesPhases
Project KickoffProject Kickoff
Solution SetupSolution Setup
Results AnalysisResults Analysis
Results PresentationResults Presentation
ExecutionExecution
Establish scope of the solution (Category, Product, approach, data to be used, project plan creation)
Business – 5 hrsTech – 10 hrs
Task requiring assistanceTask requiring assistance LOE (in hrs)LOE (in hrs)
Business Alignment Matrix, Data Extracts, Analytics Models Customized, Solution Automation Setup
Business – 5hrsTech – 10 hrs
Analytics results validation, campaign execution, technical resolutions to issues
Business – 5 hrsTech – 5 hrs
Track execution, run reports, validate results
Business – 2 hrs
Review results with the business and establish next steps
Business – 1 hrs * total attendees
Nordan Consulting
2. Capture Shopping Data
RFM
1st Time
Coupon
Sale Items
Brand
1. Select Key Shopping Features 3. Create Analytical Data Clusters
Luxury
Unengaged
High PotentialProfitable
4. Create Analytical Campaign Models
Profitable
Luxury
High Potential
Unengaged
Cluster Offer
5. Execute Tagged Campaign 6. Track Campaign Results