using data to design personalized customer experiences cx

© 2015 Merkle. All Rights Reserved. Confidential1

Using Data to Design Personalized Customer Experiences

NEDMA Conference, Bentley UniversityMay 27, 2015

#WholeBrainMktg@AileenCahill

@Merkle


Whole-Brain Marketing Requires Both!

Art Science

Big DataBranding

Ad TechnologyMarketing Technology

aka. “Big Blender”

© 2015 Merkle. All Rights Reserved. Confidential3 3

“Blending Science with

Whole-Brain Marketing – Using Data To…

…. Create Personalized, Memorable & Valuable Customer Experiences

ART


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 withRelevant, Value-Added Content & ToolsYou’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”

SocialMedia Platforms

Open Web(DMP)

Ecommerce & Publisher Networks

AddressableTV

Future Expansion OptionsActively BuildingToday

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=MSQ3OjKUKAQdjM&tbnid=Ry7EL33kmGVngM:&ved=0CAgQjRwwAA&url=http://www.toxel.com/design/2010/06/09/24-cool-logos-with-hidden-symbols/&ei=CMoSUuFW4uHgA7_HgPgP&psig=AFQjCNEAGO3jgkX9mFVbNukR9X_4kuNcDQ&ust=1377049480066726

http://www.google.com/url?sa=i&rct=j&q=bluekai+logo+image&source=images&cd=&cad=rja&docid=TQjK-tbW3qCOhM&tbnid=GqnyPI-cnwH5CM:&ved=0CAUQjRw&url=http://www.gssmedia.com/?attachment_id=1364&ei=JskSUt-4EY3A4APIvoCABw&bvm=bv.50768961,d.dmg&psig=AFQjCNE6aievL__DqQQPlzC6YYe9BDEwgg&ust=1377049250548046

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=3w60r4VEI3DMlM&tbnid=ldd5p4fFlxz9qM:&ved=0CAgQjRwwAA&url=http://cloudtimes.org/2012/04/25/adobe-creative-cloud-new-standard-creative-professionals/&ei=HcUSUvZZtfngA4XQgdgF&psig=AFQjCNENH_KSi8BuYYGhAHXHyfPnH4XVGw&ust=1377048221053444


AAS

© 2015 Merkle. All Rights Reserved. Confidential13 © 2014 Merkle. All Rights Reserved. Confidential13

It’s what you dowith AAS that’s important!

© 2015 Merkle. All Rights Reserved. Confidential14 © 2014 Merkle. All Rights Reserved. Confidential14

We MakeAddressable 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 offlineInefficient agency and business process

Pull marketing activity, primarily digitalUpdated 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

ValueExchange

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

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=yIzmAsQnDPjnUM&tbnid=u7zPkpCAO6beCM:&ved=0CAUQjRw&url=http://www.makepovertyhistory.com.au/&ei=TedwU7LQH8WbyASGzYLoDw&bvm=bv.66330100,d.aWw&psig=AFQjCNGVbQ-vzZaz_wf8WYeGT-p_AfEnvQ&ust=1399994237955329


More Data and Tools Than Ever to Complete This Picture

Her search query

Her past behavior onyour site

Her history with your brand online and offline

Her social network and activity

All of her online activity

All of herpurchase 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

ExamplesPurchases, Usage;

Communication, Lifestyle

Satisfaction, Events Competitor Actions,

Online Behavior

Contact, Size, Socio-Economic, SIC, Demographics

SourcesInternal 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 toSuccess

Completeness CreativityAccuracy

PurposeUnderstand Customer’s

Behavior

Understand Motivations & AttitudesUnderstand Customer

Types of Customer Information

Have a Customer Information Strategy

Increasing Difficulty & Value


And a Data Strategy – 360 Consumer View

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

STANDARDDATA CAPTURE

ENHANCEDDATA 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

Facebook1st Party Data

+

© 2014 Merkle. All Rights Reserved. Confidential

Addressable Consumer Experiences Create Competitive Advantage


Ad Tech & Marketing Tech Make Personalization PossibleM

AR

KE

TE

R

CO

NS

UM

ER


3 Fundamental Layers

DATA MANAGEMENT

ANALYTICS & ORCHESTRATION

MEDIA & CHANNEL EXECUTION

CO

NS

UM

ER

MA

RK

ET

ER


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 CRMDM, EM, Re-Targeting

Unknown

High-value customer

Unknown

High-value customer

Low-value customer

The Expanded Mid FunnelSingular 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 bringthe two together

in media and channels


A Connected Customer View is Essential

Social

Print

Direct Mail

Display

Search TV/Video

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

Traditional Vehicles, plus:

Display Re-Targeting

Facebook Custom Audiences /Twitter Tailored Audiences

Geo-Fenced Mobile Display / In-Store Beacons

SMS

RLSAs


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: AImage Text: A

Post Text: ALink Title: A

Link Description: A

Image: AImage Text: B


Link Description: A

Image: AImage Text: C


Link Description: A

Image: BImage Text: 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


Merklewww.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 & Optimiz

e

4. Execute

& Deliver

SPEEDPROCESSMETRICS

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

FullyIntegratedExperience

• 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 MediaIntegration

Digital MediaIntegration

Email and DM

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

CRM Database


MERKLE - Experts in the Mid Funnel!

CONSULTINGDATA

MANAGEMENTPERFORMANCE

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

[email protected]@AileenCahillSlideShare

mailto:[email protected]

using data to design personalized customer experiences cx

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