The marketer s guide to personalization
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1 The marketer s guide to personalization Improving customer engagement in a digital world 2013/2014
2 Table of contents 02 Introduction to personalization in a digital world 05 The buyer journey: converting anonymous visitors to customers 08 Turning customers into advocates 09 Actionable insights to accelerate your journey 10 Personalization examples 13 Evaluating your personalization strategy 14 Conclusion 1
3 Introduction to personalization in a digital world Who doesn t enjoy that feeling of walking into a shop and being recognized, welcomed and treated as an individual? We can all think of examples of great personalized service in the offline world: a restaurant offering a favorite drink or dessert to a customer on their birthday, or a local trader upselling to a loyal customer using insight gained from previous purchases. When this happens, we feel welcome and keep going back for more. 2
4 ADOBE PERSONALIZATION GUIDE Increasingly, customers have come to expect a consistent, personalized service across all touch points: in-store, online, on mobile wherever and whenever they choose to engage. It s up to you to ensure you are providing your customers with a service that makes them feel welcome. A good personalized web experience is smooth, non-intrusive and relevant to the customer. The information and content they are presented with should meet their needs and encourage them to interact with your site, deepening the engagement. As the customer starts to interact, they generate data that can be used to enhance their experience in future situations and validate the impact of the programs that you put in place. Personalization is the use of data to deliver a relevant and engaging experience to a consumer across channels and devices. 3
5 The numbers consistently support personalization as a key strategy for improving ROI and generating additional business. Companies that are personalizing web experiences and are also able to quantify the improvement (in the context of online sales or their key website performance metric) are seeing, on average, a 19% uplift in sales 1. Personalized s deliver on average a 14% greater click-through rate than non-personalized versions, and perhaps more significantly, a 10% higher conversion rate 2. 19% Uplift in sales 19% Uplift in sales 14% Click-through rates rates 14% Click-through 10% Conversion rates rates 10% Conversion 14% Lift in RPV 14% Lift in RPV One Adobe customer, Lenovo, saw a 14% increase in sales as a result of implementing a cross-channel personalization strategy. 1 Forrester CIO/CMO Survey 2013 ( The CMO And CIO Must Accelerate On Their Path To Better Collaboration ) 2 Aberdeen 4
6 ADOBE PERSONALIZATION GUIDE The buyer journey: converting anonymous visitors to customers When a prospective customer first comes to your site, you don t know a great deal about them, but you can begin to find out: Where they are based using geo-targeting, either through a lookup or by asking them for their location through the browser. Which social network they subscribe to, based on the use of social plugins to share the product information they researched. Whether they are a first-time or returning visitor. Possibly the search terms they have used to reach your site. Which device and browser they are using. This knowledge is still hugely valuable already you can start to personalize and enhance the user s experience based on the data that s available. Awareness 5
7 When the customer or prospect starts to explore your site, you can start to build a better picture of their interests, allowing you to serve relevant content to them. Even if the customer leaves the site, there may be an opportunity to serve relevant advertisements based on their interests, as opposed to a generic banner advertisement. This is more likely to draw them back to complete the purchase. Consideration 6
8 At the point the customer identifies themselves, a massive amount of data points become available. This can be used to personalize the experience across a variety of channels: for example, a tailored lead nurture program customized to their specific interest area. When the visitor clicks through on an offer, for example by downloading an app, you have further opportunities to serve relevant content and offers. Customer identifies themselves 7
9 Turning customers into advocates Once a customer has signed up, continuing to deliver a personalized and relevant service is just as important. By this stage, you ve gathered enough information about them including how and when they prefer to be communicated with to enable you to target them effectively with relevant offers, or indeed via other channels. Using this information to personalize the user experience helps you to deepen the customer relationship and create advocates for your brand. Cross-Sell/Up-Sell Advocacy 8
10 Actionable insights to accelerate your journey CRAWL WALK RUN Start simply web or optimization offers big uplifts in engagement and revenue, often without massive investment. Test and optimize your web pages. Segment your audience and personalize landing pages based on their profile. Use a variety of data sources web, CRM, social, even second and third party data, to develop the customer profile. Use data and content to personalize the experience for your prospects and customers. Serve content and offers that are targeted to the user s needs. Use automated recommendations and test to see where they are most effective. Use behavioral data to trigger targeted s at the right time. Look at automated behavioral targeting software to predict user behavior and match to content. 9
11 Argos uses personalization offsite and beyond Personalization is not limited to your owned properties such as web and mobile apps. You can also serve targeted advertising to the right audience based on first-, second- and third-party data. Audience management and modeling allows you to target advertisements based on look-a-like profile and user behavior data captured on your website. You can optimize and personalize display advertisements in real time using techniques such as retargeting and A/B testing practices. Using onsite behavior to trigger retargeting s is an incredibly successful and easily implemented technique as demonstrated by Argos, the UK multi-channel retailer. Argos achieved tremendous results from this approach, which combined algorithmic and rules-based targeting with personalization. Result Maximised value of some campaigns to deliver an ROI of 1,500% to 7,000% 10
12 Groupe FLO increases customer loyalty through personalization The umbrella brand for more than 300 restaurants around the world, Groupe FLO is a leading restaurant group and commercial caterer. Groupe FLO uses Adobe products to provide a single platform to manage its marketing database and points calculations, and to execute all loyalty program communications. It has also integrated the cash-register as a 1:1 communication channel, providing members with personalized messages and offers via their receipts. More than 450,000 customers registered for the loyalty program after launch, and the company has determined that members spend 30% more than nonmembers. As a result of the program, Groupe FLO has increased knowledge about its customers using data they ve collected over time. Overall, Groupe FLO registered a 50% conversion rate for distributed loyalty cards. Result Members increased their visits by 4% Members spend 30% more than non-members 11
13 SAP increases conversion through personalized digital experiences For SAP to reach its goal of one billion users by 2015, the company will require focused digital marketing that provides audiences with the right message, at the right time, on the right device. SAP used Adobe solutions to help measure complex interactions throughout the conversion funnel and across channels in order to better understand customer engagement across the sales cycle. The company found that personalization drives 300% more conversions than one-off campaigns, shaping digital strategies. Adobe Marketing Cloud allows us to create a digital experience that delivers relevant information to our customers at all times by industry, by LOB, by geography, and more. Shawn Burns, Global Vice President, Digital Marketing, SAP Result 300% more conversions than traditional digital 12
14 Evaluating your personalization strategy How do you / your clients measure the impact of personalization on ROI and engagement? It s crucial that any digital marketing initiative is measured so that the impact on the business can be captured and understood. For many organizations, it can be as simple as measuring the additional revenue generated by serving personalized experiences and messages to users and customers. But it s not always that simple. The goals of your business and digital presence should drive your evaluation it might be capturing leads for a B2B organization, or exposing visitors to more advertising (by keeping them on site longer and serving more pages to them) for a media business. This chart from the Adobe Quarterly Digital Intelligence Briefing on personalization shows the many ways that organizations are evaluating the impact of their personalization strategies. Above all, it s important that you define your goals in advance and know how you can measure them. 80% 70% 60% 50% 40% 30% 20% 10% 0% 70% 61% 50% Increased More time conversions spent on site 38% Positive feedback (e.g. social media mentions) Impact on ROI Source: Adobe Quarterly Intelligence Briefing 34% 36% 33% 32% 33% Lower More visitors bounce rate Absolute ROI figure ($/ ) Impact on engagement 11% 11% We/they don t measure 7% 4% Other 13
15 Conclusion In summary, data plus content create the moment of relevance that turns a faceless prospect into an engaged, unique individual and a customer. There is no wrong time to start personalizing the experience for your customers. The Adobe Marketing Cloud solutions can assist you at every step of your personalization journey. Marketers finally have a complete, integrated solution for all their marketing efforts. You can benefit from analytics, social media optimization, targeting, web experience management and now cross-channel campaign management with Adobe Campaign. Learn more at Key Takeaways 1. Optimizing the experience for the unknown customer widens the funnel. 2. Orchestrating the conversation with known customers creates advocates. 3. Personalization creates competitive advantage Adobe Systems Incorporated. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.
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