unlock the promise of customer data for effective personlization
TRANSCRIPT
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Unlock the Promise of Customer Data
for Effective Personalization
Featuring Guest Forrester Research Analyst, Emily Collins
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Today’s Speakers
Emily CollinsResearch Analyst Serving Customer Insights Professionals
Forrester
Reggie WidemanSenior Director of StrategyJanrain
© 2014 Forrester Research, Inc. Reproduction Prohibited 3
Agenda
›Empowered customers disrupt traditional marketing.
›Marketers struggle to keep up.
›Personalization requires connected customer insights.
›Recommendations.
© 2014 Forrester Research, Inc. Reproduction Prohibited 4
Age of the customer
A 20-year business cycle in which the most successful enterprises
will reinvent themselves to systematically understand and
serve increasingly powerful customers
In the age of the customer, individuals are always-addressable…
Source: July 22, 2013, “Mix Art And Science For Marketing Success” Forrester report
And they create data at every interaction point
But they reject traditional,
campaign-based marketing…
Marketing as we know it is experiencing a shift.
Source: April 2014 “The Power Of Customer Context” Forrester report
© 2014 Forrester Research, Inc. Reproduction Prohibited 9
Agenda
›Empowered customers disrupt traditional marketing.
›Marketers struggle to keep up.
›Personalization requires connected customer insights.
›Recommendations.
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
Janrain commissioned Forrester Consulting to evaluate the current state of personalization
Media and leisure
Agriculture, food, and beverage
Advertising or marketing
Travel and hospitality
Electronics
Telecommunications
Healthcare
Consumer product manufacturing
Other
Retail
Financial services or insurance
Business or consumer services
1%
2%
2%
3%
5%
6%
8%
9%
9%
17%
17%
22%
Which of the following best describes your industry?
16%
27%
24%
33%
In which country are you based?
France GermanyUnited Kingdom United States
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
We use machine-learning and artificial intelligence algo-rithms to personalize interactions across digital channels
We use real-time, self-learning analytics to drive personaliza-tion and targeting across digital channels
We use collaborative filtering techniques to personalize products, offers, and content on our digital properties
We use personalization and targeting based on simple business rules and triggers to execute campaigns across
digital channels
We use personalization and targeting based on broad seg-mentation and simple clustering techniques to execute
campaigns in individual digital channels
68%
78%
78%
83%
85%
22%
16%
17%
15%
12%
10%
6%
4%
2%
3%
“Please rate your level of agreement about your current use of targeting and personalization.”
Agree/strongly agree Neutral Disagree/strongly disagree
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
Many firms have basic personalization capabilities
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
© 2014 Forrester Research, Inc. Reproduction Prohibited 12
A/B and multivariate testing tools
Next-best offer technology
Real-time interaction management
Mobile analytics
Digital asset management
Recommendation engines
Cross-channel campaign management solutions
Data management platforms (DMPs)
eCommerce platforms
Dynamic content messaging tools
Customer decision management systems
Site optimization tools
Unified login/single sign-on infrastructure
Web content management systems
Customer profile data management
42%
38%
61%
47%
49%
53%
54%
56%
59%
60%
61%
62%
63%
67%
73%
29%
42%
22%
38%
39%
33%
34%
35%
32%
31%
30%
30%
27%
27%
22%
Use today Will use in 6 months
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
And, they are bullish on adopting personalization technologies
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
“What are your firm’s current or near-term plans for the following types of technologies to execute personalization and targeting?”
© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Yet, marketers struggle to evolve
› Conventional marketers continue to value traditional digital channels rather than emerging channels.
› The always-addressable consumer confounds traditional channel-based approaches to personalization.
› Infrastructure and organizational challenges impede marketers’ journey towards transformation.
© 2014 Forrester Research, Inc. Reproduction Prohibited 14
Storage
Collection
Distribution
Analysis
30%
43%
42%
44%
28%
26%
26%
27%
42%
30%
32%
28%
Very challenging/challenging Neutral Mildly challenging/not challenging
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
Data management challenges abound
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
“Please rank the level of complexity involved in the following customer data management activities.”
© 2014 Forrester Research, Inc. Reproduction Prohibited 15
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
Marketers leverage disparate and inconsistent data sources
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
Other
Contextual customer data
Media data
Syndicated research data
Panel data
Customer affinity data
Transactional/POS data
Social media data
Customer preference data
Demographic data
Customer interaction data
Voice of customer data
Campaign response data
Customer behavior data
1%
22%
22%
23%
25%
32%
34%
35%
38%
40%
40%
42%
43%
49%
Which of the following data sources do you use to plan and execute your digital marketing programs?
© 2014 Forrester Research, Inc. Reproduction Prohibited 16
Source: “It’s Time To Raise The Bar With Analytics,” Forrester Research, Inc., August 1, 2013.
They have an inflated sense of analytics maturity
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Agenda
›Empowered customers disrupt traditional marketing.
›Marketers struggle to keep up.
›Personalization requires connected customer insights.
›Recommendations.
© 2014 Forrester Research, Inc. Reproduction Prohibited 18
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
Enrich profiles and customer understanding with implicit data
Other
Contextual customer data
Media data
Syndicated research data
Panel data
Customer affinity data
Transactional/POS data
Social media data
Customer preference data
Demographic data
Customer interaction data
Voice of customer data
Campaign response data
Customer behavior data
1%
22%
22%
23%
25%
32%
34%
35%
38%
40%
40%
42%
43%
49%
“Which of the following data sources do you use to plan and execute your digital marketing programs?”
Start, but don’t stop, with the data customers
provide based on past interactions
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
© 2014 Forrester Research, Inc. Reproduction Prohibited 19
Source: A commissioned study conducted by Forrester Consulting on behalf of Janrain, May 2014
Make personalization more personal
Other
Contextual customer data
Media data
Syndicated research data
Panel data
Customer affinity data
Transactional/POS data
Social media data
Customer preference data
Demographic data
Customer interaction data
Voice of customer data
Campaign response data
Customer behavior data
1%
22%
22%
23%
25%
32%
34%
35%
38%
40%
40%
42%
43%
49%
“Which of the following data sources do you use to plan and execute your digital marketing programs?”
Base: 190 IT and digital marketing professionals with responsibility for personalized/targeted messaging and digital customer identity and recognition
Separate the “I
do” data from the “I am” data.
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
Mind the gap between cool and creepy
Consumers don't trust companies to keep their data safe
© 2014 Forrester Research, Inc. Reproduction Prohibited 21
Agenda
›Empowered customers disrupt traditional marketing.
›Marketers struggle to keep up.
›Personalization requires connected customer insights.
›Recommendations.
© 2014 Forrester Research, Inc. Reproduction Prohibited 22
Recommendations
1.Be honest about, and advance, your analytics maturity.
2.Prioritize customer identification.
3.Don’t be so territorial about your data.
4.Make the data work for you.
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Personalized Marketing: Who’s Doing it Right
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Universal Music segments emails using location and interests
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Samsung creates highly-targeted email campaigns
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Austin City Limits lets you manage interests and preferences from your profile page
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…and displays interests and preferences in common with your Facebook friends
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New Zealand Herald increases ad sales by targeting using customer profile data
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Smart Furniture delivers personalized recommendations
Alexandra Larralde
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NPR One Customizes the Listening Experience
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1. Customer data needs to be centralized.
2. Don’t be creepy.
3. Give to get.
4. Personalization isn’t a checkbox. It’s a strategy.
5. Don’t overlook the simple things.
Best Practices for Personalization