transforming the customer - silverpop

Transforming the Customer Experience: Increase Engagement and Drive

Revenue for Retail & Ecommerce

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About Retail TouchPoints Launched in 2007

More than 28,000 subscribers

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Today’s Panelists

Andrew GaffneyPublisher

Retail TouchPoints

MODERATOR

Stephen DumasProduct Marketing Director,

Enterprise and Retail SolutionsSilverpop, an IBM company

Transforming the Customer Experience: Increase Engagement and Drive Revenue for Retail & Ecommerce

IBM Industry Cloud SolutionsCopyright 2014 IBM Corporation

Copyright 2014 IBM Corporation

Agenda

• Learn how consumer trends are driving retail marketing changes

• See how consumer behaviors are affecting campaign outcomes and driving revenue

• Learn how automation technology optimizes the customer life cycle

• See examples of great informed contact strategies retailers are using today


TRENDSConsumer Trends Driving Retail


Retailers are among the lowest benchmarked open and click rates for email, but are one of the top industries among click to open rates.

Retail consumers know what they like.

17.9%2.4%

12.5%

OPEN RATE

CLICK RATE

CLICK TO OPEN

1/3 lower than top verticals

50% lower than top industries

Consistently a top vertical


Shoppers love to be …rewarded.

…recognized.…retained.

Retail marketers are embracing the prevalence of useable marketing data through CMOs & CIOs, Platform Investments and Analytical People.

$232 Billion

BIG DATA

of executives say they need to embrace data to succeed

75%

will drive

in spending through 2016

70%of data is created by individuals 80%

is managed and stored by Enterprises

Copyright 2014 IBM CorporationSource: April 10, 2013, “The Customer Life Cycle: A Blueprint For Customer-Obsessed Enterprises” Forrester report

Gone is the linear view of thinking through a consumer purchase journey.

Customer activity is constant and can informa new lifecycle strategy.

…in the right context.

It’s just not that simple anymore.

36%of firms are

developing sensor based technology

Context is now the imperative.

62%of marketers will grow digital budgets in 2014.

Activity is being captured in real time

on location.

Audience paradigm vs. Conversational paradigm


CONSUMER BEHAVIORSEffectively Using Consumer Behaviors to Drive Engagement

Likely more than 50 different behaviors


$$ ROICH

URN


Understands Behaviors


Explicit Data


Implicit Data

“What customers do is far more important than what they say”


CRM

ECOMMERCE

INVENTORY

WEB ANALYTICS

System Data


Connects the Dots

Connect all the ways that each customer interacts with your brand

SINGLE IDENTITY


1

1

2 6

3

4

5

7

8

Subject Line PersonalizationFirst name personalization

Personalized Content Name and contact info for each customer’s personal rep

Dynamic Subject LinesThe subject line changes based on the type and duration of club membership

Individualized Content ListsFor any customer who has purchased two or more items in the last 90 days, list each purchase with review links

E-commerce-driven PersonalizationDisplay totals and other engaging content to drive follow-on purchases.

Website-driven ContentDirectly track each customer’s web activity and prompt them to visit new areas of the site.

Send Time OptimizationThe message arrives in each individual’s inbox at precisely the time that individual is most likely to check email.

Data-driven Dynamic ImageImage is selected based on demographic and profile info

Score-driven Dynamic OfferDiscounts/prices vary by social influence and time since last purchase

1

2

3

4

5

6

7

8

Truly Individualized Email Messaging

21


AUTOMATED TRIGGERSOptimize Customer Lifecycle Marketing

Automate completely personal one-to-one interactions that drive customers down the path to conversion.

Automates Interactions

Hey Jim!

Don’t miss the Cycling Expo coming to Atlanta!

INTERACTION ENGINE


Abandon Cart/Welcome /Browse Retargeting

BILL“the cart

abandoner”

GENDER

SOURCE

AGE

22M

the new customer

the cart abandoner

the browser

CATEGORY VIEWS

PREFERENCES

CART DATA

LOCATION


Post Purchase/Loyalty/ReplenishmentJANE

“the new customer”

GENDER

INTERESTS

PURCHASE HISTORY

AGE

26F

the new customer

the cart abandoner

the browser

PREFERENCES

LOCATION

88%

12%VolumeBroadcastAutomated

70%

30%

RevenueBroadcastAutomated

Low volume, high ROI

Automated Emails4 years ago = 2% volume / 1% revenue

Today Volume = 6X; Revenue = 30X


ENGAGEMENT MARKETING

Browse Abandon• 20% - 50%

conversion rates lifts

SentDelivered

Opened

Clicked

Product Views

Cart Additions

Checkouts

Orders

Revenue

Units

WEB

Cart Abandon• 87% of consumers

abandon carts• …75% say they will return

to complete the purchase.• Following up with

abandoners by email yields up to 50% conversion.

Welcome!

Onboarding Email(s)

• Dynamic based on specific category items browsed

• 3-5 emails series• Top

sellers/recommendations

• Ends with “best offer”


Repeat Buyers are key to Growth & Sustainability

• Study of online retailers doing retention marketing:• Generated 55% of their 2012 eCommerce revenue from the 31% of

customers who were Repeat Buyers.• Increased their number of Repeat Buyers by 47% vs 2011.

From www.windsorcircle.com/2013-retention-marketing-report

http://www.google.com/url?q=http://www.windsorcircle.com/2013-retention-marketing-report&sa=D&sntz=1&usg=AFrqEzf2O9DR4TO68KkWdu-yfLuBhuGvoQ

Incorporates

• Offer based on loyalty status, LCV, new customer

• Specific category items browsed

• Top sellers/recommendations

Best Buyer


RFM Analysis Primer

F = Frequency: Number of purchases made

R = Recency: Time since last purchase

M = Monetary Value: Amount spent by a customer


Churning Customer Segment: “R4F1M1”

Engagement segments

Impact on purchases


Loyalty Example

GOALS Stonyfield has two main objectives with its email, and overall, digital marketing efforts. Those include: • One-to-one relationships with each customer• Building customer loyalty and engagement

RESULTS • The first 30 days: 42 percent open rate • Campaign average open rate: 33 percent


Dynamic offer:• Loyalty status• LCV• New customer• Never purchased

Birthday Email 2.0

Autoship Reminder Email• Reminds customer of upcoming SmartPaks

order• Allows customer time to make changes

before order is processed• Top revenue generating triggered email

The results:• 36% open rate• 13% click-through rate• $1.39 revenue-per-email• 18%+ conversion rate

Real time products based on purchase behavior

Copyright 2014 IBM Corporation39

Welcome & Thank

Manage Latency

Intention Marketing

Listen & Learn

Deepen Relationship

Recommend on Affinity Contests & Gifts

Segment & Personalize

Surprise & Reward

Win Back

Keys to Retention Marketing Success:

1. Leverage Customer, Product, & Purchase History Data

2. Ongoing RFM (Recency, Frequency, Monetary) Analysis

3. Automate Retention Marketing to Maximize Conversions & Value throughout the Lifecycle

The Keys to Retention


CROSS CHANNEL STRATEGIESMobile, SMS and Transactional


What if You Could:


Right message, Right medium

4


In-store• Great informed in store services• Pick-Up In store, order online• Order in-person, have shipped or email follow-ups• Social sentiment and customer service• SMS notifications and store or service awareness

and delivery

• Jake Rawlins• Online & Offline

customer• Mobile app user

Mobile App + Geo-fencing + Universal Behaviors

Sales associate engages customer based on purchase

behavior and LCV

Buyer alert triggered by geo-fencing and use of mobile app


Dynamic Rewards

Personalize

Behavior Scoring


H&M now

ONLINE EXCLUSIVE!Straight from the Paris runway, pre-shop our much anticipated Paris Show Collection today!

AMC Theatres now

AMC: Show AMX Stubs in theaters today & receive $10 Bonus Bucks instantly for snacks…

Allergy now

Remember to Log Your Allergies: Gain insight into what helps and what doesn’t.

OK: BroadcastMessage all app users

GOOD: NarrowcastMessage some app users

based on rules & segments

GREAT: 1:1 CastMessage individual users

based on user preference, behaviors and location


• Alerts & Promotions• Coupons• Store Locator• New Products• Sale Events• Birthday Specials• Gifts• Free Online Shipping

Acme: Just for you – extra 25% off your $100 purchase! Details:

http://bit.ly/ArArAl Use promo code SPRING &

shop now: www.acme.com/mobile.

Rply STOP to quit.Acme: Happy Friday! Get Buy One, Get One FREE

today 3/25 from 3-5pm. Not valid w/ other offers.

Only 1 offer per text. Reply STOP to quit.

Acme: Get your coupon for 20% off 1 item. Click http://bit.ly/ACMg6C for offer. Reply STOP to end.

Msg&data rates may apply.

Acme: One Day Sale. Great limited-time deals + FREE shipping every day!

Visit acme.com/mobile for details. Rply STOP to quit.

Retail

http://bit.ly/ArArAl

http://www.acme.com/mobile

http://bit.ly/ACMg6C


One-to-One on the Web


CASE STUDYExamples of How One Retailer Is Leading the Way


Wedding Campaign

The first email in campaign asks if customers are shopping for themselves or for a friend


Campaign Logic

Email topic breakdown:

Your Wedding• Wedding

Invitations• Wedding essentials• Wedding favors• Bridal party gifts• Thank you cards

Friend’s Wedding• Bridal shower invites• Shower tableware• Bachelorette invites• Bachelorette tableware• Wedding gifts


Email track: Your Wedding


Email track: Friend’s Wedding


Wedding Campaign Results

Combined, these targeted emails have resulted in:

• Open rate: 244% increase over average email send in 2012• Click rate: 161% increase• Revenue per mailing: 330% increase


Data in Silos

Fragmented picture of

customers

Lack of Control

Lack of control

over data

RelevantContent

Inability to customize content

Right Channel

Get customer’s attention

Real-time Execution

Inability to execute in real-time

Lack of Insight

How individuals

interact with your

brand

What business challenges does Silverpop solve?


The Silverpop Marketing Platform

UNIVERSAL

BEHAVIOR

Capture Every Action

Captures and manages

behavior across every digital and offline channel to build

unparalleled insight into

each individual

SINGLE IDENTITY

Connect The Dots

Connects every

customer touch point into a single

view

MULTI-CHANNEL

Communicate Across

Platforms

Sends personalized

messages everywhere

each customer prefers to connect

BEHAVIORAL

INSIGHTS

Understand Path To

Revenue

Discovers customer

preferences by analyzing data from all devices and channels

MARKETING DATABASE

Manage Behaviors At Scale

Manages everything about each

customer, easily and at scale

INTERACTION ENGINE

Automate Communications

Gets personal with each customer, one at a time and in real-

time

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Submit Your Questions // Q&A

Type question here

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Q & A // Panelists

Andrew GaffneyPublisher

Retail TouchPoints

MODERATOR

Stephen DumasProduct Marketing Director,

Enterprise and Retail SolutionsSilverpop, an IBM company

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Thank You For Joining Us!

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