Professional Documents
Culture Documents
Symphony RetailAI EIQ Personalized Marketing 360 03092018
Symphony RetailAI EIQ Personalized Marketing 360 03092018
Personalizing the
path to purchase
Results from survey of marketing
executives at leading U.S. retailers
www.symphonyretailai.com
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
1. Introduction
A plethora of online and offline media is giving the modern shopping With poorly executed initiatives, retailers risk bombarding, alienating,
journey many moving parts. But maximizing the customer’s experience- confusing customers or losing their interest. To be successful, personalized
and a retailer’s ROI- requires that messages and marketing vehicles be promotions must be supported by a robust customer data model to track
seamlessly integrated, consistent and personalized. sales behavior, a Customer Relationship Management (CRM) platform to
gather customer profiles and machine learning. The latter analyzes large
The challenge is to determine which message and medium- and amounts of data from multiple sources using rule-based algorithms that
combinations thereof work best. Through embracing the right 21st century identify patterns and trends for developing personalized marketing initiatives.
technologies, successful retailers are achieving this goal.
The survey focuses on the challenges faced by retailers in planning
A Deloitte Digital survey1 of 3,000 U.S. consumers, found that 39% spend and acting upon customer intelligence, omni-channel marketing, and
more when receiving a personalized coupon, promotion or recommendation. personalization programs in the U.S. This report summarizes the
Almost one in three indicated that spending increases when digital is part of findings from a 50-retailer survey of leading grocery, do-it yourself and
the shopping process. According to the CMO Council2, 94% of retailers said consumer electronics retail chains.
Omni-channel marketing is “important or critical” to their goals.
1
“Navigating the New Digital Divide”, Deloitte Digital Survey 2015
1
2 “Navigating the Missing
Omnichannel’s New Digital Divide”,
Link”, Deloitte November
CMO Council Digital Survey
20162015
2
Omnichannel’s Missing Link”, CMO Council November 2016
www.symphonyretailai.com 2
2. Enhancing the Customer
Journey Through
Personalized Marketing
Today, many retailers employ data-gathering and customer
communications tools like email, social media, apps and POS.
But when it comes to melding the internal data they gather and then
layering on outside data across online, in-store and other channels to
pinpoint customers with specific offers, they frequently come up short.
Many still rely on spread sheets and other manual tools. But the rise
of mega chains, international power houses like Walmart and digital
channels (e.g. Amazon), along with diversifying demographics, has
fostered a need for more sophisticated execution.
www.symphonyretailai.com 3
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Despite advancements made by retailers in gathering and using shopper insights for precision
marketing, according to this survey, 4 in 10 retailers are still unable to integrate Omni-channel
customer data effectively to create a single version of truth.
The main hurdles in creating holistic customer intelligence and Retail marketers, suppliers and their agency partners’ measure
personalization include but are not limited to the fact that retailers social and digital marketing program effectiveness as such customer
are encountering siloed marketing operations, lack of clean data, behavior data is easier to collect, update and analyze. On the other
legacy solutions and inadequate resources. The other top business hand, however, in-store and mass marketing ROI measurement by
challenges faced by a third of retailers are the inability to measure store, time of day or by demographic group is still a laggard process
marketing ROI and lack of data science applied towards marketing for a majority of retailers due to lack of focus or technical expertise for
programs. detailed transaction log data, wallet share and other types customer
segment or market share analysis that can be used to improve
customer offers and marketing precision.
42% cite a lack of data integration 34% are unable to measure ROI
of marketing activities and lack data
across multiple marketing channels.
based marketing campaigns.
Retailers spend their marketing dollars on brand awareness, mass Other reasons for inefficiencies include:
marketing, in-store marketing, direct mail marketing, email marketing,
social and other tactical digital promotions. For the most part, retailers 18% Lack tools/software.
carry out ROI measurement in a piece-meal manner as data models 16% Lack high end technology.
for accurate measurement are either not yet implemented or currently
such processes are non-empirical.
www.symphonyretailai.com 4
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Both large and mid sized retailers cite inadequate data backed insights for marketing campaigns
as their third major challenge. Others have gathered hordes of data but do not possess the
technology- or technological expertise- to process it and put it to work.
Retailers with revenue >$1 billion: Retailers with revenue <=$1 billion:
33% say they are unable to measure/ 35% indicate an absence of data
integration across multiple marketing
prove ROI of marketing activities.
channels.
www.symphonyretailai.com 5 5
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Five years ago, most data came from POS systems, loyalty cards and outside data companies.
These sources are still invaluable. But now, in addition to structured data sources such as POS
systems, valuable consumer insights can also be collected through unstructured data sources
such as beacons, Wi-Fi and store video intelligence.
Financial services companies that issue credit and debit cards have When it comes to internal systems data, 80% garner data related
also improved data insights related to retail purchase behavior to a to purchase/shopping transaction history, 66% collect demographic
fair extent. This has lowered entry barriers, letting retailers of all sizes information, 62% gather financial information and 46% accrue location
orchestrate better marketing and promotional decisions by combining information.
all resources.
Top 3 areas of customer provided data:
www.symphonyretailai.com 6
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Internal systems data helps drive long-term customer loyalty and lifetime value down to the
customer-level based on loyalty, basket and trip frequency insights. Customer provided and
purchased data is assisting retailers in creating more personalized and precision marketing
campaigns to help support bounce back and new customer acquisition strategies.
www.symphonyretailai.com 7
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
According to the survey, key business objectives for retailers to be met in 2018 includes increase
profitability and customer retention, enhance customer acquisition and build focus on customer
satisfaction/net promoter scores (NPS).
While all these objectives can drive profitability and customer focus,
80% of retailers consider increasing effective price promotions and loyalty offers are one of the oldest and
most popular strategies for driving basket size, customer retention
profitability as the top most business and customer traffic. To be effective in today’s highly competitive,
objective to be achieved in 2018. technologically charged landscape, retailers must use them creatively
to drive sales without seriously eroding profits and margins. A fifth of
In order to achieve profitability per customer purchase or order, among retailers said they want to increase effectiveness of pricing and
other operational techniques, retailers need to apply a bigger focus price promotions.
on achieving precision sales, marketing and customer personalization
within and outside the store.
One third of retailers consider
customer retention as a key business
One third of retailers are also hoping objective to be achieved in 2018.
to attain offline and online customer
recency, frequency and monetary Pinpointed price promotions can also increase customer loyalty.
Offering cat litter at a reduced price in a general sale, for example,
objectives in 2018. may draw customers and create some add-on sales of other pet and
non-pet items. Micromarketing to repeat shoppers who own three
This will help them keep on track as far as both top-line and or more pets, though, will generate more add-on sales and repeat
bottom-line target or budget attainment. And a similar number of traffic among a group who is serious about pets and always seeking
retailers would like to achieve customer nirvana through customer a deal. But retailers need tools and data to learn who these multi-pet
satisfaction surveys and net promoter scores. consumers are to target them.
www.symphonyretailai.com 8 8
3. Building customer
profiles: A deep dive
Both physical and online retailers are challenged by an
increasingly fragmented media market. Historically, retailers relied
on local radio, network TV and major print publications.
www.symphonyretailai.com 9
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
With numerous ways emerging to reach customers, marketing methods targeting customers
across different communication channels is being currently used by 9 out of 10 retailers.
Targeting customers based on their preferred shopping channels and in real-time are upcoming
methods to be used.
Over the next 12 to 24 months, many retailers plan to increase use of personalized marketing tools. Top initiatives include:
48%
Target customers
48%
Target customers
42%
Target customers
40% Targets
based on their in real-time based on “Remind customers based
preferred shopping me” option on demographics
channels
www.symphonyretailai.com 10 10
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Digital advertising is the most popular omni-channel medium among retailers, followed by
corporate web sites, mobile and social media. But two decades ago, digital advertising was just a
bunch of (often annoying) banners placed prominently on web sites. Today, there are myriad forms
of digital advertising, based on target audience, web content and call to action.
Priority spend channels for reaching customers (High) Assessing the customer reach capabilities (High)
“We have shifted more and more outside of TV, where digital makes up over 50% of our media buy.
If a product is targeted at Millennials, we know they are less tuned in to traditional TV and are on their
phone, tablets and streaming services. We make sure we have the right location as well as the amount
of breadth and are speaking to them consecutively.”
-S enior Manager, Brands, major confectionery company
www.symphonyretailai.com 11 11
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
1. Social Media Machine learning can be used to schedule emails based on behavioral
triggers and audience segmentation. for e.g., “We saw you tried to
Fueled by smart phone and wireless Internet technology growth, social order that item last week in the store and it was out of stock. But we
media has become an essential customer service and sales channel have it online and will give you 10% off for the inconvenience.”
over the past six years. Facebook has around two billion monthly
users, with five new profiles created every second. Photo uploads
total 300 million daily. And one in five page views in the U.S. occurs on 3. Pinpointed Mobile Messaging
Facebook3.
In-store mobile messaging has probably received more press than
86% of retailers invest heavily in social media marketing. Since users action. But as more retailers employ beacons (introduced about two
join using their name and other personal information and choose to years ago) use and effectiveness could improve. According to the
“follow” certain companies, social media can reach specific individuals survey, one-third of the retailers feel that mobile messaging has a low
and track their activities. level of effectiveness.
3
Facebook
4
Closing the Loop, the Last 1,000 Feet of the Shopping Experience, Forbes, March 2016)
www.symphonyretailai.com 12
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
5. Recommendation Engines
“Offline is quickly becoming online; just give it another
three years. Even with networks you will be able to change Amazon is a pioneer when it comes to recommendation engines.
messaging based on area. If you want to use the traditional Products displayed after a user logs onto the site are based on his/her
definitions, T.V. vs. digital budget would be in the usual 65- unique purchasing and browsing history. Twenty-five percent of Amazon’s
35%.” sales are estimated to come through recommendations. Today, Amazon
is marketing its easy-to-use, highly scalable search and other machine
-V P of Brand Marketing, leading beverage company
learning technologies to outside companies. Among other retailers, 50%
can personalize content based on web history.
5
Market Track Shopper Insight Survey, January 2017
www.symphonyretailai.com 13
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
2. Building customer profiles: A deep dive
To maximize ROI, most retailers must personalize marketing for large numbers of customers. To
do this, 60% prioritize use of marketing automation, while 52% are enhancing customer loyalty
programs. These are among the top capabilities among retailers surveyed.
Other high priority personalized marketing capabilities By combining CRM data with machine learning, 360°profiles can be
include: created involving preferences, past purchases, weather, return history,
complaints and other factors. By breaking down contact point “silos,”
retailers learn which domains or events to prioritize and how they can
34% Improving enterprise CRM systems. link back to positive or negative outcomes.
34% Revising customer strategy, segmentation & contact planning. Using different platforms, retailers can also curate social media
content that targets particular consumers. They can even decipher
28% Optimizing CPC/supplier funding of offers. consumer comments beyond just picking up key words, allowing them
to gain valuable feedback. In addition, algorithms can be trained to
18% Optimizing SEM/SEO practices. recognize language patterns. For example, a post regarding Tide
detergent (e.g., “Tide cleaned my clothes”) would not be categorized
with one discussing beach resorts (“high tide at noon”). Conversations
1. CRM and Machine Learning/AI can be further dissected to identify happy and unhappy Tide
CRM systems collect data across contact points, including online, via customers. In addition, algorithms can be trained to exclude spam, like
telephone, live chat, direct mail, in stores or via social media. AI and posts about winning free Tide.
machine learning gives machines access to data and lets them “learn”
for themselves. This involves rule-based algorithms and computers This type of data-activated marketing can boost total sales 15% to
that identify patterns and trends by automatically analyzing large data 20% and improve ROI on marketing spent across channels, said
quantities. McKinsey & Co. Among retailers with revenue >$1 billion, 40% want
to improve enterprise CRM systems.
www.symphonyretailai.com 14 14
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
www.symphonyretailai.com 15
4. Customer 360
Obtaining a 360-degree understanding of what customers need
has long been regarded as the Holy Grail among retailers in that
it results in better tailored offerings that address specific shopper
requirements.
www.symphonyretailai.com 16
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
28%
of retailers gather inputs related to customer satisfaction/
NPS and data from every channel to generate customer
profiles based on a single identifier. Attribute data from
every channel to
customer profiles
based on a single
identifier
Close to one fifth of retailers either
have none or inadequate information to
generate customer profile based on a 26%
Real-time
single identifier. customer behavior
tracking
14%
Attribute data from
Net Promoter Score (NPS) is a metric for assessing shopper one or two channels
loyalty for a brand, product or service. Many companies use to customer profiles
NPS as part of their CRM strategy because the metric is easy based on a single
to calculate. identifier
2%
happiness, or how a customer feels regarding a service or
product. Unlike NPS, it does not address how a customer
feels about a company overall. Do not have
a single
customer
view
www.symphonyretailai.com 17
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
20%
Customer
bounce
rate
www.symphonyretailai.com 18 18
5. Recommendations
www.symphonyretailai.com 19
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5
Introduction Personalized Marketing Customer Profiles Customer 360 Recommendations
Recommendations
efine the evolution of your customer
D Eliminate loyalty initiatives that need active
1. segmentation and customer focus in line with
corporate objectives of this year.
6. reminders, engagement and that only use
physical cards.
Explore use of beacons for targeting in- Compile inputs related to customer satisfaction/
3. store customers via their mobile phones with
announcements and offers.
8. NPS and data from multiple channels to create
shopper profiles based on a single identifier.
Establish a clear purpose for all marketing In addition to bricks/clicks tie-ins, explore
initiatives- are they intended to drive brand cross promotions across multiple banners
4. awareness, appeal to a new customer group or 9. and businesses when applicable (e.g., grocery,
introduce a new product or line? fuel, pharmacy and discount formats).
www.symphonyretailai.com 20
About Symphony RetailAI
https://www.symphonyretailai.com/marketing-manager-retail/
www.symphonyretailai.com 21