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Optimizing for Customer Loyalty

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Optimizing for

Customer Loyalty

Hazjier Pourkhalkhali

Senior Strategy Consultant

Help clients develop

comprehensive CRO strategy

Advise on best practices in

Optimization Management

Problem solve complex

optimization challenges

The Need for

Personalization

I purchase more from retailers who… Strongly / Somewhat agree

SOURCE: MYBUYS 7th Annual Consumer Personalization Survey (2015, e-Tailing Group)

The traditional consumer decision journey

SOURCE: McKinsey Digital, 2015

UK: Mobile and Tablet Users Online only shoppers 1 in 3 users say they visit

fewer stores

Price conscious 2 of 3 mobile shoppers are

4x more likely to buy

lower priced items on mobile

Delivery tracking is twice as valued as getting

tailored recommendations

App retention 49% stop using apps for

stores where they don’t

regularly shop

Deal-driven 52% look for deals

promotions, versus

<30% for rich content

SOURCE: McKinsey Digital, 2015

SOURCE: McKinsey Digital, 2015

Early Learnings from

Personalization

38%

52%

15%

38%

BABY BOOMERS

MILLENIALS

Text Messages

Social Media

Most effective means of being reached after e-mail

Millennials

Baby Boomers

SOURCE: Accenture 2015

74%

58%

BABY BOOMERS

MILLENIALS

Expect automatically credited coupons and loyalty

rewards in exchange for log-in

Millennials

Baby Boomers

SOURCE: Accenture 2015

30%

68%

BABY BOOMERS

MILLENIALS

Appreciate if drug store automatically notifies them

that new medicine can conflict with prior purchases

Millennials

Baby Boomers

SOURCE: Accenture 2015

Personalization aims to

better communicate with

and guide users based off

shared traits

Context: What’s unique about the visitor right now

Browsing on her

mobile phone

today

In Utrecht

Clicked on

Facebook ad

Behavior: Actions taken on your websites and apps

Viewed 5

different

shoes in

past 3 days

Left shoes

in cart

yesterday

Demographic: What do we know about her

Using an

iPhone 6

Plus

Single

female

, 25-34

Loyalty program

member

Predictive: How do we expect to see her behave

High customer fit

for custom

shoes

High discretionary

spend

Likely

social

influencer

Behavioral retargeting produces 4x ROI

Personalized campaign

Used behavioral targeting to show buy-one-get-one tire

promotion to customers who had viewed tires.

Results

• 21% increase in overall site sales

• Sold out of tire stock 2 months before expected

• 4x return on investment in Optimizely and solutions

partner services

+26% SIGNUPS

PERSONALIZED ORIGINAL

+24% Click to Sale

+30% Add-to-Cart

+210% Conversions

Case Study: Obama Contribute Form

Unregistered

Users

Registered

Users

Returning

Donors

0.0%

+2.3%

-27.8%

+15.2%

+8.5%

0.0%

+27.8%

N/A

-24.6%

+2.9%

0.0%

+16.3%

N/A

+11.9%

+18.4%

• Acquire and retain customers

Business Objective:

• Increase leads at the top of the funnel

Goal:

Experiment:

Results:

• Does adding steps to the sign-up flow

increase or decrease new leads

generated?

• 150% increase in new customer

acquisition, millions of dollars in annual

revenue

+150% NEW LEADS

28

29

30

31

32

THANK YOU

statistical significance

number of visitors over time

95%

traditional statistics stats engine

100

% Trust

Measure Lift

Learn which changes

work, measure your impact

5% 95%

A B

A B

A B