personalization 2.0: the move to individualization
TRANSCRIPT
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Empowered customers give rise to a new era
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Empowered customers have given rise to a new era
Age of manufacturingMass manufacturingmakes industrialpowerhousessuccessful
• Ford• Boeing• GE• RCA
Age of distributionGlobal connectionsand transportationsystems makedistribution key
• Wal-Mart• Toyota• P&G• UPS
Age of informationConnected PCs and supply chains meanthose that controlinformation flowdominate• Amazon• Google• Comcast• Capital One
Age of the customerEmpowered buyersdemand a new level ofcustomer obsession
• Macy’s• Salesforce.com• USAA• Amazon
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The past…
Information
Price Location
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Then…
Information
Price LocationTech
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Today…
Information
Price Location
Tech
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Welcome To The New Normal: Hyper-adoption
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…and “hyper-abandonment.”
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Your business needs to dramatically change in the age of the customer or risk
being disrupted out of business.
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Delivering on all five market imperatives is 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 online 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 Business Technographics® Global Priorities And Journey Survey, 2015
Business leaders are prioritizing customer experience in 2016
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Personalization is a #1 eBusiness priority
Base 32 eBusiness And Channel Strategy ProfessionalsSource: Forrester’s Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey
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Agenda›Breaking away from segmentation as a solution for personalization
›Defining the four key pillars that enable Personalization 2.0: Individualization
›Recommended steps for delivering the next wave of personalization
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There is a significant gap between belief and reality with personalization
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Me
Product
Personalization has historically been driven by segmentation
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Customer Segmentation
Me
Product
Personalization has historically been driven by segmentation
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Me
Product
Product Segmentation
Personalization has historically been driven by segmentation
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Me
Product
Product Segmentation
Personalization has historically been driven by segmentation
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Other Products
Me
Product
Product Segmentation
Personalization has historically been driven by segmentation
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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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Dept
h
Reach
Relationship
EXPLORE
USE
ASK
ENGAGE DISCOVER
BUY
Single data points are often used to personalize the entire customer journey
Me
XSingle data point
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Dept
h
Reach
Relationship
EXPLORE
USE
ASK
ENGAGE DISCOVER
BUY
Single data points are often used to personalize the entire customer journey
Me
XSingle data pointJust 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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Be careful to understand and respect personal boundaries
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Proceed with caution: be overt about collecting 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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Agenda›Breaking away from segmentation as a solution for personalization
›Defining the four key pillars that enable Personalization 2.0: Individualization
›Recommended steps for delivering the next wave of personalization
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of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.
Source: Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2015
77%
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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 for everyone?
Q1: How successful are you when you get personalization right?
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But before we begin . . .
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You cannot truly personalize experiences for consumers you cannot recognize
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> Customer data = > Effective personalization
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Email is a simple way to consistently identify customers…
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…and to learn about customers!
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The Story of Oakley
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An individualization strategy is defined by key technology investments that enable
four unique characteristics and differentiate it from a segmentation strategy
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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 enables far richer and more relevant engagements.
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It’s easy to think about personalizing experiences in ways we’ve done before
Me
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Individualization is seamless customer engagement across an ecosystem
Call center
Text messages
In-store online accessOnline content
Social engagements
Direct mail
Mobile web
Web search
Apps
Online checkout
Retargeting
Associate engagement
Chat
Virtual agents
Smart TV
PLPs
Homepage
PDPs
Packaging
eReceipts
Digital signage
Product reviews
Site search
Outbound callingMe
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Can you give me an example?
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John Lewis uses mobile location tech to optimize offline customer experience
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Package is ready for customer on arrival
Customer is sent notification asking if they would like to collect package
Stock Room is notified of customer arrival and starts to pick the order
App directs customer to collection desk
Discreet plastic “beacons” around the exterior of the store, activate when
customer is 70m away.
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› Experiences are built on each customer’s data and used to engage them as a segment of one.
› Engagement technologies capture, measure, and assess dynamically and in real time.
› Engagement is based on current behavior of the customer in the context of past behavior.
› Personalized experiences are seamless across screens, channels, and — most importantly — the digital touchpoints that exist across the enterprise.
Individualization is not segmentation!
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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 experienceIndividualization:
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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Agenda›Breaking away from segmentation as a solution for personalization
›Defining the four key pillars that enable Personalization 2.0: Individualization
›Recommended steps for delivering the next wave of personalization
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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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Recommendations
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Recommendations1. Identify the gaps in your company’s ability to deliver
individualization.
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The North Face learns the “why” of customers shopping instead of the “what”
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Recommendations1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every part of the customer journey.
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Sephora captures in-store engagement through digital, personal experiences
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Recommendations1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every part of the customer journey.
3. Design each digital touch point to both use and collect customer data.
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Starbucks app is not for payments, it is a customer data capturing machine
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Recommendations1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every part of the customer journey.
3. Design each digital touch point to both use and collect customer data.
4. Focus on creating great customer experiences and avoid crossing boundaries unnecessarily.
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Hudson Bay captures personal information in exchange for value without being creepy
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Recommendations1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every part of the customer journey.
3. Design each digital touch point to both use and collect customer data.
4. Focus on creating great customer experiences and avoid crossing boundaries unnecessarily.
BONUS Leverage partnerships with digital experts.
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Nordstrom expedited digital transformation by partnering with Shoes of Prey
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Personalization Maturity Checklist1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every part of the customer journey.
3. Design each digital touch point to both use and collect customer data.
4. Create exceptional customer experiences without crossing personal boundaries unnecessarily.
5. Leverage partnerships with digital experts.
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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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How Can Bluecore help deliver this individualized experience?
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Consumers Feel email Offers most individualized experience from retailers
Think about retailers that send communications to you that feel individualized, based on your previous purchases and interactions
with their brand. What’s the most personal way these retailers engage with you? (select only one)
Text
In Sto
re
Face
book
Online
AdsOth
er
YouTu
be
Insta
garm
Pinter
est
Twitt
er0%
10%20%30%40%50%60%70%80%
Source: Bluecore / Blue Nile Research Brand Digital Messaging Survey, 2016
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demo
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Want to learn more?
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Announcing…
Bluecore Explore summit 2016
Thursday, September 15, 2016Current, Pier 59 Chelsea Piers
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Featured keynotes
Brendan witcherPrincipal analyst,
forrester
Kit yarrowPhd Consumer Psychologist
& Author
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Request an invite atBluecore.com/summit
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Thank you