Omni-channel marketing

Transcription

1 IBM Software Thought Leadership White Paper IBM ExperienceOne Omni-channel marketing

2 2 Omni-channel marketing Contents 2 Marketing organizations face unprecedented change 3 Three shifts have fundamentally changed the marketing landscape 4 Customer dialogues are like real conversations 5 Enabling a dialogue with the customer 5 Understand 6 Engage 8 Optimize 10 How IBM enables omni-channel marketing 10 Brand benefits from IBM s omni-channel marketing 10 Conclusion 11 About IBM ExperienceOne Marketing organizations face unprecedented change Marketers recognize that they are facing rising complexity and change. Many, however, are responding by simply doing more of what they ve been doing: shouting out their messages as broadly and loudly as possible. As marketers turn up the volume, buyers are tuning out: marketing costs are rising, and returns are declining. In the US alone, $83 billion is lost each year as a result of poor customer experiences. 1 However, today s environment also offers opportunities for marketers who understand that the changes taking place provide new ways to reach and engage customers and prospects. In a recent survey 2 of more than 500 marketing professionals worldwide, across more than fifteen industries, IBM found that there is a group of marketers, the top 20%, who are doing better than others and belong to companies that outperform (Figure 1). The difference: those marketing leaders are proactively influencing the customer experience across channels and using marketing technologies. Currently do it across some or all channels Adoption of omni-channel optimization technologies Currently do not do it 80 % Not a proactive leader in owning CE across channels 20 % 20 % Ownership of the customer experience A proactive leader in owning CE across channels 20% Leading marketers Leaders proactively influencing the customer experience across channels and using marketing technologies. 80% All others Trail the leaders in either adoption of technology, influence of the customer experience, or both. Figure 1: Marketers that proactively influence the customer experience across channels and use marketing technologies significantly outperform those that do not.

3 IBM Software The bottom-line results are dramatic, with that 20% realizing a 1.8x greater three-year gross profit growth, a 3.4x greater three-year net income growth, and a 2.4x greater three-year stock price growth over the other 80% of marketers (Figure 2). 3-yr Gross Profit Growth 7.8% 1.8x 13.8% 3-yr Net Income Growth 7.0% Leading Marketers 3.4x 23.5% All Other Marketers 3-yr Stock Price Growth 5.5% 2.4x Figure 2: Leading marketers belong to companies that are financially outperforming their rivals. 13.0% Next, we discuss how omni-channel marketing makes it possible to coordinate customer interactions across all channels and devices outbound and inbound, digital, mobile, and traditional letting you engage in real dialogues with customers and prospects, deepening relationships and yielding better marketing results. You will learn how optimizing omni-channel marketing can help you engage each customer in a two-way, interactive dialogue that: Builds upon past behavior Adapts based on current behavior and context, and each customer s reaction to each new message Consistently delivers the most useful and compelling message to each customer in the right channel for the individual and at the perfect moment. Three shifts have fundamentally changed the marketing landscape Old marketing channels have faded, new channels have arisen, and all channels are becoming more personal and addressable. Meanwhile, customers have gained immense power, and they are leveraging it to the fullest. Three key shifts are fundamentally impacting the marketing discipline: 1. Marketing channels are evolving at an unprecedented pace. Let s face facts: mass media channels have lost their reach. Events like the Olympics that are successful at reaching mass audiences have become exceedingly rare. Furthermore, as consumers gain more personalized choices and access to technologies that help them exercise choice, they are simply tuning out mass advertising. Traditional outbound direct channels are also suffering from plummeting response. Meanwhile, highly personal direct channels from mobile to inbound call centers are poorly suited to traditional push strategies. With an enormous and increasingly sophisticated audience to draw upon, online has become a rich, social medium. Finally, mobile as a device to access online and as its own channel has moved from nice-to-have to a must-have part of any omni-channel marketing strategy. 2. Virtually every marketing channel is becoming more addressable. We are moving toward a time in which nearly all marketing channels will support targeted or individualized communication with customers. On the Internet, most sites can already address consumers either personally by name, or individually by cookie. Search sites capture detailed personalized information for both contextual and individual ad targeting. Subscription-based online channels such as podcasts or RSS are inherently addressable, as are emerging location-based online marketing services. Traditional print media is becoming addressable as delivery shifts from print to online. Even stubbornly mass channels are becoming addressable. For example, the US cable industry is developing set-top boxes to deliver targeted ads based on taste and lifestyle. By mastering today s addressable channels, you also position yourself to profit from those that exist tomorrow.

4 4 Omni-channel marketing 3. Customers are empowered and they re using their power to behave in radical new ways. The Internet and mobile have given users unprecedented access to independent information about companies offerings, claims, service, pricing, and approach to marketing. The result? Your customers have gained control over the marketing relationship and the flow of information often, at your expense as a marketer. Social media gives customers a powerful soapbox that can shape brands. Customers today feel completely comfortable crossing channels at will. For considered purchases, they may move between online and offline channels several times before making a buying decision. For commodity purchases, they ll buy wherever is most convenient at the moment. It s no longer enough to simply deliver consistent messages across channels: you need strong omni-channel awareness of how each individual customer has responded to each of your messages in every channel, and to predict what they need in the current interaction. Customer dialogues are like real conversations The changes just mentioned are systemic and permanent. All parts of your business are being challenged to work together toward improving the customer s experience and enabling customers to do business with you seamlessly when they want to, where they want to, and how they want to. But to accomplish this, your marketing must become fully integrated and cross-channel: capable of engaging each customer and prospect in a personalized dialogue across channels that builds upon his or her past and current behavior. To achieve omnichannel marketing, you must move away from traditional marketing to real-time, event triggered, inbound, multi-stage, multi-channel tactics. Specifically, this means adopting new tactics that: React to customer inputs or changes in behavior Identify the best treatment strategy in real time, based on knowledge of the customer and the context of the inbound interaction Link discrete interactions into a dialogue that lasts over time Cross channels, and carry the dialogue forward by leveraging a memory of the conversation and the context of the current interaction Omni-channel marketing requires the entire marketing organization to work together seamlessly. That s a tall order that cannot be achieved without the help of technology. According to The State of Marketing 2013, IBM s Global Survey of Marketers, the top 20% most successful marketers have adopted omni-channel marketing optimization technologies across all channels at a rate of 5.6x that of their laggard peers (Figure 3). Figure: Integration of Inbound/Outbound and Offline/Online Marketing Programs Q. How integrated are your inbound/outbound and offline and online marketing programs? Currently integrated across all channels Not currently integrated 8% 12% 35% 39% 23% difference 31% difference Base: Leading Marketers (n=102), All Other Marketers (n=410) Adoption of omni-channel optimization technologies across all channels 8% 37% 45% Leading Marketers All Other Marketers Figure 3: The most successful marketers have adopted omni-channel optimization technologies across all channels.

5 IBM Software Technology is clearly a game changer. But the reality is that most broad marketing software solutions were designed to support traditional outbound marketing. In addition, niche channelcentric marketing solutions simply can t achieve the interactivity required as customers traverse channels. So what does it take to coordinate marketing in this way, creating personalized customer dialogues? Think about what it takes to carry on a normal conversion with a real person. You need to: 1. Listen and understand what the person is saying to you 2. Decide what to say next 3. Speak (say what you ve decided to say) 4. Start listening again 5. Repeat steps 1-4 as the conversation continues This is easy to do in a real conversation. However, it s hard to do this as a marketer with thousands or millions of customers at the same time, across many communication channels and customer touch-points. You need the right technology to help you do the same things you would when talking to a friend. Enabling a dialogue with the customer Of course, we have to translate each of these aspects of a real conversation into marketing terms. Actively listen in the marketing world translates to understand the customer and customer data. Decide what to say next translates to optimize the interaction with the most relevant offer or message in that channel. Speak translates to engage the individual with the message In addition, the most effective cross-channel marketing optimization solution will also help marketers optimize their internal operations and processes, to increase efficiency. Understanding, optimizing and engaging are three key marketing processes that are essential to enabling the transition to omni-channel marketing. Let s take a look at how omni-channel marketing technology enables these three important processes. Understand The key to listening is the ability to capture what a customer is saying both explicitly and implicitly. What do we mean by implicit behavior? We mean capturing not just a customer s purchase behavior, but also how the customer responds to the marketing messages that you are extending, as well as his or her non-monetary behavior and interactions like those on your website, mobile app or on social media. Your opportunity is to process all of this information to determine what to say next. This requires a technology solution that can leverage and process both a customer s history and present situation, identify actionable customer insights, alert you when potential customer opportunities arise and predict marketing outcomes. The most effective omni-channel marketing optimization solution will include digital, mobile and social sentiment data to improve customer targeting. Whenever a customer visits your website, mobile app or other digital property, the solution would capture exactly what that person looks at, how they interacted with the digital properties and what they think about your brand. The solution would then make that information available to help you understand each customer better, especially their wants and needs.

6 6 Omni-channel marketing Engage Once you ve listened to the customer and decided what to say next, you can engage with the customer and speak to them with the right message in context of the interaction. That s why the ability to carry on a continuing dialogue over time and across channels is fundamental to the shift to omni-channel marketing. The most effective omni-channel marketing optimization solution enables you to think before you speak to your customer, and speak based on a complete memory of your conversation with the customer to date. This is essential to engaging customers in an effective dialogue. Even the best analysis in the world is useless if you can t take action on it. Look for a solution that employs the tools and capabilities to enable marketers to decide what message or offer each customer should be presented with next, and through what communication channel it should be Presented. For example: Outbound campaign management that enables marketers to deliver the right message to thousands or millions of customers across all outbound channels. Marketers should be able to quickly and cost-effectively design and execute campaign strategies across all of their channels, online and offline, and build an effective, ongoing dialogue with their customers or prospects. Real-time inbound interaction management that personalizes the individual s experience during live customer interactions, such as on websites, in call centers, on mobile properties, at the POS, ATM, or kiosk, and more. Powerful behavioral targeting analytics combined with marketer-defined business logic can enable marketers to deliver the optimal marketing message to each individual customer in each channel. The 2013 IBM Survey of Marketers found that leading marketers take advantage of this ability, adjusting real-time offers based on context by a factor of 2.6 versus their peers (Figure 4). Many of them do so across a number of different channels, including call centers, websites, social media sites and even kiosks. Leading marketers leverage individual behavior and context to make the most of every interaction % currently delivering personalized messages in real time by channel Customer service / Call center Website Face-to-face (i.e. in-store, branch) Social Media (i.e. Facebook, Twitter, blogs, review sites) Mobile channels (i.e. SMS, mobile /web sites, applications) Kiosk / ATM Leading Marketer All Others Leading Marketer All Others Leading Marketer All Others Leading Marketer All Others Leading Marketer All Others Leading Marketer All Others 85% 63% 85% 67% 76% 62% 71% 50% 62% 43% 43% 23% Base: Those who know what their company is doing in the area (Leading Marketers=91-101, All Other Marketers= ) Adjusting real-time offers based on context 24% 15% 39% % adjust real-time offers based on context across all channels Leading Marketers All Other Marketers Base: Leading Marketers (n=102), All Other Marketers (n=410) Figure 4: Leading marketers leverage individual behavior and context to make the most of every interaction.

7 IBM Software Finally, you have to deliver the message to the customer. In today s environment there are many places that a part of the dialogue may occur: on a printed page, on a screen, over the phone or in person. The most effective omni-channel marketing solution can deliver the coordinated dialogue across all of the channels and devices with which the customer may engage: Mobile engagement is no longer nice to have with today s continuously connected customer. It s a must have. Your customers expect you to create better experiences for them via their mobile device when they re in your store, interacting with your app, visiting your mobile website, checking or providing them with useful information or offers. The best omni-channel marketing solutions provide mobile message design and delivery via SMS, simple and rich notifications, apps, mobile websites and notification inboxes. delivery and deliverability that help you design and measure the efficacy of your digital marketing messages. Marketers should be able to determine how their message will look across any device, if their IPs are on any blacklists, and if their s land in the inbox or spam folders. Lead routing and monitoring to enable marketers to more effectively notify and deliver leads to sales teams and qualified agents, monitor their disposition and measure results from leads passed. Such a tool would improve the end-to-end lead routing and monitoring process and fill the critical gap between marketing and sales, increasing lead close rates and improving the ROI of lead generation marketing investments. Integration with other channels: To provide outbound fulfillment to support list creation for delivering mail-ready files to letter shops and fulfillment houses, high-volume execution, and smooth integration with third-party vendors for fulfilling to any outbound channel To enable inbound integration to capture real-time contextual information from customer touch points like websites, inbound customer service interactions, kiosks, and even face-to-face points-of sale and forward offers or messages to be presented immediately during a current interactive session This functionality within a omni-channel marketing optimization solution should also deliver messages to or plug into other channels, such websites, mobile apps, call center apps, print shops for direct mail, call lists for telemarketing, and more.

8 8 Omni-channel marketing Optimize Of course, what good is collecting customer and prospect data from every interaction if you can t gain insights from it and decide how to respond in the context of the conversation? An omni-channel marketing solution should include a variety of tools and capabilities, like those below, to help marketers analyze their customer data across online and offline channels and continually optimize each interaction with the customer: Predictive analytics to make it easy for users to segment markets; predict response, cross-sell and improve lifetime value; and decide on the next best action for the individual in the context of the interaction Event detection to monitor each customer s transactional behavior patterns and set off triggers when meaningful changes occur that suggest opportunities companies can reap if they act fast Visual exploration to provide marketers with a visual analysis of customer behavior, preferences, and opportunity, and permit selection of customer groups for easy inclusion in targeted marketing initiatives moving quickly from questions to insight to action, without programming or technical support Contact optimization to ensure customers receive the most relevant and profitable offers while satisfying the needs of individual business areas and minimizing customer contact fatigue Attribution of marketing efforts across channels and touches to understand how each touch has influenced the customer In fact, the 2013 IBM Global Survey of Marketers found that the most successful marketers employ similar tactics turning insight into action into revenue by a factor of more than two when compared to their peers (Figure 5). Figure: Ability to Turn Insight into Action Q. How well do you turn insight into action to improve your customer experience? % of 4/5 ratings on a scale of 1 to 5, where 1 means not well at all and 5 means extremely well. Conduct root cause analysis and determine revenue impact Automatically detect transaction struggles and take corrective action Identify individual customers to target revenue recovery 33% 27% 36% 68% 35% difference 60% 60% 47% difference 36% difference Base: Leading Marketers (n=102), All Other Marketers (n=410) Systematically determines monetary value of website and mobile app customer experience 32% 31% 63% Leading Marketers All Other Marketers Figure 5: Leading marketers actively analyze their customer data, turning insight into action into revenue, more often than others. Using these capabilities, marketers can mathematically determine the best communications for each customer based on the customer s interaction history, offer details, channel preferences, time frame, business constraints and rules, and marketing objectives.

9 IBM Software With the pressure on marketing to deliver more leads, conversions, and content through more channels while dealing with reduced budgets, marketers also need to streamline the efforts of the marketing team and maximize the marketing spend. In most companies, implementing an omni-channel marketing strategy requires you to manage multiple moving parts and collaborate smoothly across many disparate groups throughout the marketing organization. The best omni-channel marketing solution will facilitate this by simplifying collaboration and cross-channel planning, design, execution, and measurement. It will achieve these goals by supporting a spectrum of marketing functions and capabilities through one unified interface and integrating seamlessly with other tools you may already own. Such a solution would enable marketing organizations to effectively manage: Plans and budgets in order to provide universal visibility, top-down budget allocations, and full tracking of forecasts and expenses People and processes, including a master marketing calendar to track programs and maximize their visibility; as well as tools for assessing resource availability, assigning jobs and tasks, driving project schedules, managing reviews, and improving collaboration Data and assets, through tools that capture reusable information and work, manage project and campaign data, and provide secure access to all creative assets Measurement and performance, through easy-to-use reports to full-fledged dashboards for interactive monitoring and drill-down investigation The 2013 IBM Survey of Marketers found that leading marketers were more active than their peers when it came to analyzing and quantifying the impact of their efforts on overall net increase in sales, increase in customer retention, increase in brand perception, customer lifetime value, and increase in purchase intent. 62.0% 17% 79.0% % that have the ability to coordinate and automate decisioning process 44.0% 23% 67.0% 58.0% 12% 70.0% 40.0% 23% 63.0% Online Display Online Video Social Media Mobile Apps Mobile Display Leading Marketers All Other Marketers Base: Leading Marketers (n=102), All Other Marketers (n=410) 36.0% Figure 6: Big differences appear between leading marketers and others when it comes to quantifying their impact. 22% 58.0%

10 10 Omni-channel marketing How IBM enables omni-channel marketing IBM understands the needs and challenges of marketers designing or implementing an omni-channel strategy. IBM ExperienceOne customer engagement solutions empower marketers to attract, delight and maximize the lifetime value of customers with analytics to better understand their customers and automation to dynamically turn that intelligence into meaningful dialogues. IBM ExperienceOne makes this type of personalization possible at scale: across thousands of clients and millions of customers all using multiple devices and channels. IBM ExperienceOne makes customer engagement faster and easier with proven solutions that easily connect to leave no customer-facing team or customer behind. Conclusion Today s customers demand more personally relevant messages than ever before, and every marketing channel is evolving to support that. Marketing organizations need to leverage these changes proactively and, if they do, they can gain a powerful competitive advantage. Conventional marketing must become omni-channel marketing that senses virtually every customer opportunity and automatically delivers the most compelling message to each customer, in the best inbound or outbound channel, at the perfect moment. IBM s omni-channel marketing solution has been designed specifically for this purpose, making omni-channel marketing quickly achievable for today s marketer. Brands benefit from IBM s omni-channel marketing Marketers using IBM s omni-channel marketing solution have realized dramatic results that greatly impact their marketing success. Typical results include: Customer life-time value, retention and loyalty up 10-20% Response rates up from 10-50% Marketing ROI up 100% or more Marketing costs cut by 25% Cycle times cut by 75% These are just a few; there are many more interesting results we could report.

11 IBM Software About IBM ExperienceOne IBM ExperienceOne helps you attract, delight and grow the loyalty of customers by enriching the ways you engage each of them. IBM ExperienceOne provides a set of integrated customer engagement solutions that empower marketing, merchandising, commerce and customer service teams to identify the customers and moments that matter most, and to rapidly apply those insights to develop and deliver personally rewarding brand experiences. IBM ExperienceOne ignites innovation by leveraging patterns of success from more than 8,000 client engagements, original industry research, and products consistently recognized as industry leaders in major analyst reports. IBM ExperienceOne solutions are delivered in cloud, on premises, and in hybrid options. For more information To learn more about IBM ExperienceOne, please contact your IBM representative or IBM Business Partner, or visit the following website: ibm.com/experienceone.

12 Copyright IBM Corporation 2015 IBM Corporation Software Group Route 100 Somers, NY Produced in the United States of America March 2015 IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANT- ABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NONINFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided Research Study by Datamonitor/Ovum 2 The State of Marketing 2013, IBM s Global Survey of Marketers Please Recycle ZZW03257-USEN-03