customer centricity in action #irce17 · building emotional connections, therefore, improving...
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#IRCE17
ECOMMERCE TECHNOLOGY WORKSHOPJune 6, 2017
Customer Centricity in Action
#IRCE17
Customer Centricity in Action
The When and How for a Physical Store
CRM & Loyalty: A Customer Journey Tool
Data: The Art & Science of Retail
IRCE 2017 Tech Workshop 2
Rob RoyerFounder and CEO
Mark FriedmanPresident of ECommerce
Ali WingFormer CMO and EVP Digital
#IRCE17What’s most important to your customers across all points of their shopping journey?
0%
14%
38%
48%
Personalized Products
Personalized Experience
Great Customer Service
All of the Above
Answers
Answers
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Customer Centricity should Drive Everything
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Source: Accumulate.com
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Choosing a sofa is a deeply personal experience
S E L F
E X P R E S S I V E
C E N T E R P I E C E
O F H O M E
H I G H LY
C O N S I D E R E D
I/D CAITLIN
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Existing furniture options didn’t measure up
C O O K I E C U T T E R O V E R W H E L M I N G Q U A L I T Y B E Y O N D R E A C H
R e t a i l : $ 1 0 , 0 0 0
S h i p p i n g : $ 3 0 0
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We set out to transform the way you shop for a sofa
C U S T O M
Every piece is handcrafted just for you, from the
shape and size to the fabric and legs.
S I M P L I F I E D
Personal attention, free delivery, and 365-day returns
leave you feeling relaxed, not overwhelmed.
A C C E S S I B L E
Digital-first, inventory-free approach
enables well-crafted designs at accessible prices.
I/D OWENS
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Our experience is built on a made-to-order,
inventory-free production approach
Order placed Built-to-order Quality controlled Shipped direct White glove delivered
Financing Available365-day Return
PolicyComplimentary White-
Glove Delivery
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Enabling unique customization & quality at an
accessible price
S I Z E + C O N F I G U R AT I O N
L E G S + F I N I S H E S
F A B R I C S
C U S H I O N F I L L
3 D c u s t o m i z a t i o n i n t e r f a c e
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I/D leads with a digital-first experience
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We opened a “Guideshop” in our first month
Original I/D location — great learnings, but disconnected from web experience with little tech.
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Today: tech-enabled Guideshops meld our online +
offline experience
3D Customization Tools
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What we’ve learned
1. There needs to be a clear connection
between the on- + offline experience.
2. When customers experience both,
a. Higher AOV
b. Increased basket size
c. Higher referral rates
3. In-store technology helps build
relationships, and ultimately increases
overall conversion
4. On- and offline experiences are
amplified with human connection
I/D Swatch Package
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What’s next
• Additional Guideshop locations
• Adding design specialists
• Evolved on- and offline
customization UX
• New mobile technology
SohoGuideshop
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#IRCE17What Does CRM Mean To You?
• CRM is a business strategy that puts the focus on meeting the needs of your customers throughout the customers’ lifecycle with the company.
• Goal - Transformation of transactional interactions to building emotional connections, therefore, improving business relationships with customers, assisting in customer retention and acquisition, and driving sales growth.
• Achieved by utilizing advanced technologies to organize, analyze, automate, and integrate the marketing, sales, and customer service components of your business.
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Value Dynamics
Who are your most valuable customers?
Profitability
Who are your most profitable
customers?
Customer Potential
Which customers do we
focus on to grow?
Lifestyle Dynamics
What motivates my customers?
Goal: Improve Customer Lifetime Value
Know Your Customers First
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#IRCE17Typical Marketing Challenges
Typical Internal Challenges
• Recognizing the business value of customer engagement, based on buying behaviors, habits and preferences
• Difficulty in obtaining a 360 view of the customer; and a single version of the truth
• Lack of data accessibility and integration within Marketing systems• Under utilization of customer data with Marketing & Merchandising efforts• Insufficient resources, technology and budget• Inability to personalize and target relevant offers/content• Inability to connect and personalize customer experiences with the brand
across multiple channels at the right time and place• Inability to improve marketing ROI• Inability to maintain/improve customer retention• Inability to monitor and report on KPIs
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Close & Personal
Know the Customer Engage the Customer Deliver the Experience
360° View Customer
Whenever Wherever However
CRM + Customer Marketing Guiding Principles
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Personalize Your Engagement Across Touchpoints
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#IRCE17Customer Engagement Workbench
CustomerEngagement
Strategies
Acquisi onEnrollment
Nurturing
Reten on
Targeted/RelevantPersonalized
Recogni onApprecia on
ConversionCross-Sell/Up-Sell
Predic ve
Win-BackDiminishing
Lost
Omni-Channel
POS/DigitalReceipts
Print/DirectMail
Mobile
SocialMedia
Customer
CallCenter
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Awareness Consideration Purchase Service Loyalty
Customer Marketing - Transformation Framework
Goal:Get notice; generate traffic; inform & educate; get subscribers, i.e. email
Goal:Convince & transform visitors to customers
Goal:Close the deal; Convert visitors to add items to their carts & submit orders
Goal:Ensure every single subscriber is 100% satisfied w/the services the company provides
Goal:Transform customers to loyal-raging Fans (Advocates); Repetitive customers
Buyer’s Stage:Curious, Googling, Browsing, discuss with advocates
Buyer’s Stage:Interested, Research, Read customer Reviews, Decision Making
Buyer’s Stage:Purchase. Online or Offline
Buyer’s Stage:Usage & Ask Questions; Provides feedback, review, engages in conversation
Buyer’s Stage:Know who I am; Engage me, Personalize the CX; Advocacy
Key Factors:- Most attractive &
cost efficient way to generate traffic & awareness to my site.
Key Factors:- Kind of persuasive
info to provide- Value proposition- Hindrance from
buying
Key Factors:- Multi-channel to
interact & purchase- Cart abandonment.
Why?- Customer Support
Key Factors:- Well trained
customer support team
- FAQs
Key Factors:- Know my customers- Personalized
Engagement- Deliver the CX as
s/he expects
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#IRCE17CRM & Loyalty Solutions
• Consolidate customer information, • such as personal information, purchase
history, preferences, feedback, concerns, etc.,
• across multiple channels into a single CRM Database.
• Profiling customers, • understanding their needs, and
• building relationships with them by providing the most suitable products and enhanced customer service.
• Benefits• Improve Customer Service Efficiency &
Effectiveness
• Increased Personalized Service or One-to-One Service
• Responsive to Customers’ Needs
• Improve Customer Knowledge
• Customer Segmentation
• Enhanced ability to target high valued & profitable customers
• Enhanced sales force efficiency and effectiveness
• Track & Measure Performance
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• Focus on meeting the needs of your customers throughout the customers’ lifecycle with the company.
• Transform transactional interactions to building emotional connections.
• Improve business relationships with customers, assisting in customer retention and acquisition, and driving sales growth.
• Achieved by utilizing advanced technologies to organize, analyze, automate, and integrate the marketing, sales, and customer service components of your business.
CRM & Loyalty are Now ‘Must Haves’
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Steve Madden on Bitmoji
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Ali M. Wingformer CMO, EVP Digital Channels
Maurices (Ascena Retail)
Summer 2017
Data: The Art & Science of Retail
Media Mix Return on Investment (MROI)Optimization & Measurement
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HOME COMMUTE WORK COMMUTE RETAIL HOME BED
The path to purchase is increasingly complex
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There are no shortage of companies pitching incrementality
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Activities & data progress in silosLegacy structures & processes limit alignment
stores
online
Different
Media Types
Drive Stores
vs. Online
Customer &
Transaction
Data is
Separated
Performance is
Measured in
Isolation
Channel
Ownership is
Divided
Traditional
media drives
store
performance
Store
EDW
Store KPIs
• foot traffic
• conversion
• ADS, UPT
• store owners
• marketers/
merchants
Digital media
drives
Ecommerce
performance
eCommerce
EDW
eCommerce
KPIs
•visits
•conversion
• ADS, UPT
•search
•display
•affiliate
• eCommerce
owners
• marketers/
merchants
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• organizations have limited visibility to
customer behavior/ marketing
performance
• industry pushes point solutions, all
being sold as silver bullets
• marketing, analytics, IT, etc. teams
work separately to resolve same
issues
• lack of alignment between measurement group & C-suite
• marketers don’t use available data or solutions
“I’m driving
customers across channels,
but I can’t measure their
response or the true
incrementality of any
marketing. HELP.”
The ResultToo much tech, too few insights & progress is slow
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Establish funnel attribution, merge with customer analysis
What to do?
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#IRCE17Data “discovery analytics platform”
measure activate
unified customer view
revenue
new-to-webLTV
browse-influencedROAS
acquisition
KPIs
advanced analytics
transaction attribution
testingmedia mix
modeling
• tactical optimization
• contact strategy
• channel incrementality
• budget allocation
• ad syndication
• personalization
CRM
promo
digital pixel
cross-device
POS
product
data sources
-customer data
-tag management
-web analytics
-beacons
-etc.
measurement
-multi-touch attribution
-media mix modelling
-test & target
-cross-device, O2S maps
-segmentation, analytics
activation
-media mix
-digital asset
-channel
-campaigns
-offers
“data lake”
or
“data
production
environment”
IT financemarketing site operations
It’s not as simple as “implement attribution”
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in briefmain
value add
main
weaknesstech
transaction
record
media mix
modeling
attribution
testing
daily or real-time,
unaltered source of truth
performance reporting in real
or near real-timeprovides no context as to
how revenue was generated
statistical analyses estimating
impact of marketing variables,
forecasting future sales
best approximation of
marketing’s true effect across
invested dollars on customer
behavior
lack of granularity;
difficult to use for daily
optimization
model for applying
conversion credit to
customer touchpoints
delivered at a level of
granularity to support
activation
limited scope;
measures correlation,
not causation
measures incrementality
(i.e., causation)difficult to scale
utilizes test/control format
to measure media impact
on customer behavior
Insights-to-action “rinse & repeat”Collect data, measure consistently, test & activate
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Q:
Q:
Q:
Which marketing channels are
most efficient at acquiring new customers?
Areas of inefficient spend and
opportunities for reallocation?
Combinations of media that works best
to accomplish varied business goals?
What we’re unlockingMarketing performance & customer behavior-based critical biz decisions
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TEXTADS
EcomROAS
New customers
1.0 0.9
45% 62%
AOV $79
$55
Learning: PLA’s have a 50% lower cost per new
customer than text ads
Action: increase mix of NTF search budget towards PLA’s
PRODUCTADS
Case Study #1: Acquisition MROIQ: What marketing channels are most efficient at acquiring new customers?
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Learning: brand search terms
NOT incremental on desktop;
mobile +21% incremental)
Action: $$$ annual spend
reallocated
Hypothesis: searching on
maurices brand navigational
terms is not 100% incremental
(e.g. maurices/maurices.com)
Test design: A/B geography split
▪ Geo A – brand nav terms on
▪ Geo B – brand nav terms off
Case Study #2: Device & Media Type MROI
Q: Can we reallocate areas of inefficient spend for optimization?
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Single production environment for ALL data is key
• limit external data impacts with a controlled data “house”
• single source of truth across all media touchpoints
• easy, flexible structure for updating/changing inputs
Keep your focus on patterns vs. precision
• use logic/rules that make sense for your business
• keep it simple & keep making progress
• find patterns & monitor shifts
Break into manageable parts, build it to keep evolving
• strive for short terms wins & building foundation for future
• evolve capabilities over time
• integrate with operational processes cross-functionally
• think in terms of sprints
Key learnings to date
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Q&A
Rob Royer
Interior Define
Mark Friedman
Steve Madden
Ali Wing
Formerly of Maurices
For additional questions:
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