TABLE OF CONTENTS. Introduction...3. Driving Performance with Intelligent Content...8. About the Research...4

Transcription

1 Driving Cross-Channel Experiences with Intelligent Consumer Data An evolving approach to personalization throughout the customer journey

2 TABLE OF CONTENTS Introduction...3 About the Research...4 Improving Personalization with Intelligent Data...5 Realizing a single view across multiple channels... 5 Centralizing data from multiple marketplaces... 6 Achieving brand distinction in homogenous environments... 7 Driving Performance with Intelligent Content...8 Creating seamless experiences across channels and devices... 9 Evolving personalization throughout the customer journey Conclusion...10 Appendices About the Authors

3 INTRODUCTION In 2017, marketers are prioritizing spends so that they can understand how consumers are moving across devices, platforms, and publishers to consume information. Retailers narrative content needs to be attainable, intuitive, and immersive. Content needs to inspire consumers and be part of their lifestyle, while showing off the benefits of their products. New digital marketing is contextual it is based on the individual context of each customer. Increasingly, brands need to craft their digital marketing through customers perspectives to have meaningful interactions with them. Enterprise retailers deliver these great customer experiences by engaging customers at every touch point in a product s lifecycle. Those retailers can deliver relevant, personalized, and consistent content to shoppers across every channel using the latest digital formats, including interactive digital signage, augmented reality, and more. By building relationships through contextual commerce, brands can enhance their customer relationship efforts and uncover what consumers want as they drive sales. Brands can editorialize content to speak like their customers, and then create content that both entertains and educates. To succeed, they need to do this across channels and digital platforms including , video, blogs, social, mobile, and more. Retailers achieve better results across more of their channels when they have intelligent data, which helps them make the best decisions when it comes to their inventory. Retailers acquire this data using several different marketplaces and marketing channels simultaneously, then measuring orders and performance data through these channels to improve ecommerce decision making. A wealth of consumer data allows smart brands to surprise and delight their customers via personalized offers, based on their individual browsing and buying history. WBR Digital partnered with both ChannelAdvisor and ADAM Software, now an Aprimo Company, to conduct a study of 136 enterprise retailers ($500 million or more in annual revenue) at the 2017 etail West Conference to benchmark the industry s maturity in terms of content strategy, channel complexity, and personalization. The following report reveals the degree to which enterprise retailers are utilizing intelligent data to succeed in these areas. Changes in customer shopping behaviors and rising expectations are forcing a cultural shift in the way retailers think about traditional retail. PetSmart recently conducted a geo-targeted marketing campaign in a single city utilizing cross-channel marketing with a focused message covering in-store, buy online pick up in store, and at-home scheduled delivery service, and saw great success. Offering a range of ways for the customer to engage and shop when, where, and how they like is crucial today. -Ivy Chin, Divisional Senior Vice President, Digital at PetSmart 3

4 ABOUT THE RESEARCH What is your company type? 11% 4% 4% Multi- channel Pure- play online In- store only Other 81% Retailers are expanding into more channels; fortunately emerging technologies enable them to maintain control of their inventory while centralizing data from all of them. The majority of respondents in the study (81%) represent multi-channel enterprise retailers. Only 11% of respondents represent pure-play online retailers, and only 4% of respondents represented in-store only retailers. 4% of respondents represent other types of companies. These enterprise retailers are neatly divided in terms of which industries they represent. The largest segments were Specialty Retail (27%); Hardware, Electronics & Appliances (9%); and Other (13%). Together, these three large segments represent 49% of companies surveyed. What industry does your company represent? 3% 4% 4% 5% 6% 1% 1% 1% 2% 3% 7% 7% 13% 7% 9% 27% Specialty Retail Hardware, Electronics & Appliances Department Stores Standard Apparel Technology & Telecommunications Financial Services Beauty Products Sporting Goods Travel & Hospitality Healthcare & Pharmaceuticals Internet, Software & Analytics High- End Fashion Apparel Government & Non- profit Media & Entertainment Real Estate Other In each case, Department Stores; Standard Apparel; and Technology & Communications were represented by 7% of respondents. 6% of respondents represented Financial Services, and 5% represented Beauty Products. Only 4% of respondents represented either Sporting Goods or Travel & Hospitality; and only 3% represented either Healthcare & Pharmaceuticals or Internet, Software & Analytics. High-End Fashion Apparel (2%), Government & Non-Profit (1%), Media & Entertainment (1%), and Real Estate (1%) were the least represented verticals. As we will find, enterprise retailers are implementing CX strategies across multiple channels to drive customer engagement and loyalty. They are identifying what roles content will play within this proliferation of channels, and they are securing control over their content inventory with less technical work required. And while enterprise retailers are selling less to companies like Amazon, Walmart, and Target, they expect their share of sales to these channels to increase in the future. They are seeking out intelligent data solutions that give them a 360-degree view of their customers across multiple channels and marketplaces; and more retailers will opt for single-view and cloud-based solutions to manage customer data, content, and digital assets, driving contextual experiences for customers. 4

5 IMPROVING PERSONALIZATION WITH INTELLIGENT DATA Retailers achieve better results across more of their channels when they have intelligent data, which helps them make the best decisions when it comes to their inventory. Retailers acquire this data using several different marketplaces and marketing channels simultaneously, then measuring orders and performance through these channels to improve ecommerce decision making. A wealth of consumer data allows smart brands to surprise and delight their customers via personalized offers, based on their individual preferences and history. Understanding how enterprise retailers are acquiring and applying their customer data begins with a look at their marketing spends. As we will find, marketing spends are increasingly dominated by digital channels through which intelligent data can be both measured and implemented. Realizing a single view across multiple channels How are you planning to allocate your marketing budget in 2017? Please rank in order of highest amount of spend (1 = highest) SEO and SEM Marketing Direct Mail Radio & Television Print Advertising Online Display (Banner, Retargeting) Tradeshows & Events Social Media Marketing PR 31% 24% 13% 11% 6% 5% 5% 2% 1% 2% 21% 22% 10% 11% 16% 10% 6% 2% 2% 10% 5% 10% 9% 11% 14% 10% 12% 8% 11% 10% 4% 8% 4% 7% 6% 9% 18% 25% 9% 9% 9% 4% 8% 13% 14% 17% 16% 6% 4% 8% 22% 31% 16% 12% 4% 4% 3% 7% 4% 5% 6% 8% 9% 9% 11% 31% 10% 3% 14% 18% 30% 12% 11% 5% 7% 3% 3% 5% 10% 14% 18% 25% 14% 6% 2% As part of their marketing budgets, retailers prioritize digital channels through which intelligent data can be both measured and implemented effectively. This includes SEO, SEM, Marketing, Online Display, and Social Media. Other 13% 6% 4% 9% 6% 9% 47% According to the study, 31% of retailers rank SEO and SEM as their highest spend, while 24% rank SEO and SEM as their second-highest spend the greatest numbers in both categories. Marketing is also a high performer: 21% of retailers rank it as their highest spend, and 22% rank it as their second-highest. Very few retailers give either SEO and SEM or Marketing low rankings. These two categories represent the most targeted and the most measured digital channels available to retailers in the study. Online Display, also datadriven, is ranked by 22% of retailers as their second-highest, and 31% as their third-highest spend. Although it is also one of retailers high spends, it is the highest spend for only 8% of retailers. Social Media Marketing, though a top four spend for the majority of retailers, was the highest spend for only 3% of retailers, and the secondhighest spend for only 14%. 5

6 Realizing a single view across multiple channels (cont'd) Channels through which data can be neither significantly acquired nor applied represent the lowest spends among retailers. Direct Mail, while a top spend among 10% of enterprise retailers, performed similarly across rankings. Radio & Television, Print Advertising, Tradeshows & Events, PR, and Other channels had unsubstantial results. Having a single-view system across multiple channels is essential to any modern retail strategy. Achieving sales, inventory, and customer visibility across different channels allows merchants to retrieve valuable data and execute their omnichannel initiatives more effectively. Consumers today need relevant, high-value content that caters specifically to their needs in the moment to establish trusted relationships with retailers and brands. As an example, successful retailers are using a wealth of customer data to personalize product recommendations based on actions the customer has taken to determine relevance. Additionally, videos, blogs, and UGC specific to products and brands are injected into this behavior flow so that customers can have numerous touchpoints with different content that informs, educates, and entertains them across all channels. Gregory Rice, Marketing Manager at Newegg Marketplace Centralizing data from multiple marketplaces Enterprise retailers adoption of a single view across multiple channels is evident in their expressed relationships with Amazon, Walmart, and other such retailers where the retailing responsibility becomes Amazon s, within their own marketplace. What percentage of your inventory do you sell first-party to retailers (i.e. Amazon, Walmart, Target, and others)?* 74% 9% 6% 11% 0-25% 26-50% 51-75% % Most retailers sell 25% or less of their inventory firstparty to retailers like Amazon, Walmart, and Target, but over half of retailers expect that share to increase. *Do you expect this share to increase or decrease? 54% Increase 46% Decrease The majority of retailers (74%) sell 25% or less of their inventory first-party to retailers like Amazon, Walmart, or Target. The remaining 26% of retailers are stratified across the 26% - 100% range. But among all retailers, 54% expect their share of first-party sales to such retailers to increase. Why do a majority of retailers sell so little as first parties to these marketplaces, and why do almost half of retailers expect their share to decrease? In their recent white paper, Selling on Amazon: First Party or Third Party, Channel Advisor observes that because Amazon (and others) is so prevalent, enterprise retailers are likely either selling at least some of their product line via Amazon through a first-party relationship or are consciously refusing to do so for one or more business reasons. Among several pros and cons, a segment on Analytics stands in contrast to the single-view, crosschannel approach: For first-party sellers, Amazon Vendor Central provides basic reports on sales and inventory trends, including best-selling, worstselling and most-viewed items. There are also reports on units and styles shipped and returned. In addition to reporting, Vendor Central provides demand forecasting. Some brands indicate that this forecasting data is fairly accurate, while others report just the opposite. More detailed information is available in Amazon s Premium Analytics reports. These reports aren t available to all vendors and come with an additional cost. 6

7 Centralizing data from multiple marketplaces (cont d) Similarly, the majority of retailers (67%) -utilize drop shipping for only 25% of their business or less. The remaining 33% of retailers are stratified across the 26% - 100% range. What percentage of your business utilizes drop shipping?* 67% For most retailers, 25% or less of their business utilizes drop shipping, but a majority of retailers expect that share to increase. *Do you expect this share to increase or decrease? 57% 43% 17% 8% 8% 0-25% 26-50% 51-75% % Drop Shipping is increasingly associated with companies like Amazon, ebay, and others who incorporate it as practice and policy. Although allowing third-parties to fulfill orders may add a degree of separation between retailer and customer data, 57% expect that share of their business to increase. Increase Decrease Achieving brand distinction in homogenous environments So, why do most enterprise retailers expect the share of their inventory that they sell first-party to grow? There are solutions for retailers who want to incorporate Amazon, Walmart, Target, and others into a single-view, cross-channel approach. Even as they abide by the rules of selling through Amazon, they must continue to distinguish themselves from other brands. This means not only engaging consumers but inspiring them, personalizing their experiences and building relationships that evolve as retailers adapt them to new customer data. As more consumers gravitate towards centralized destinations for shopping, retailers must embrace those habits while incorporating those channels into their crosschannel data strategies. This new generation of omnichannel selling is driving retailers to adopt cloud-based solutions, which enable them to scale quickly, work from anywhere, and get real-time insights into all aspects of their business. Through qualitative and quantitative research, retailers can capture the shopping patterns and behaviors of our customers before we even market to them so we know what to say, when to say it, and how to say it. With the use of intelligent data, we are able to thoughtfully target the right customer with the right content to build more meaningful relationships; because when it comes to marketing, one message does not fit all. -Isamar Batista, Director of Marketing & CRM at ShoeDazzle (by TechStyle) 7

8 DRIVING PERFORMANCE WITH INTELLIGENT CONTENT 92% of retailers have seen an increase in their need for content, the majority of which have seen those needs increase significantly. Over the past year, how has your organization s need for content evolved? 59% It has increased significantly. 33% There has been some increase. It has remained the same. 7% It is limited or negligible. 1% 0% There has been some decrease. Content may not have been a top priority years ago, but today it is at the core of leading enterprise retailers marketing initiatives. As multi-channel content strategies develop, the vast majority of these retailers have an increased need for content versus the previous year. The most competitive enterprise retailers are becoming lean and curated in their showcased products and content. They are providing immersive, personalized experiences for customers to create a more exciting path-to-purchase. The majority of retailers (59%) claim their need for content has increased significantly over the past year, while another 33% claim there has been at least some increase. In other words, 92% of retailers have seen an increase in their need for content, the vast majority of which have seen those needs increase significantly. No retailer saw a decrease in its need for content. Consequently, retailers are adapting their content strategies to include more resources, in many cases among multiple business units both inside and outside of their companies. How many different departments or business units are involved in creating your content? 35% 19% 3 or more, both internal and external 3 or more, internal only 46% Fewer than 3, internal only Almost half (46%) of retailers have three or more business units involved in creating their content, both internal and external. 35% have fewer than three business units involved, all of which are external; and 19% have fewer than three business units involved, all of which are internal. In terms of utilizing external resources for creating content, those resources may be creative as well as supportive tools for managing and proliferating content. Successfully retailers utilize these resources while applying data to content generation, streamlining management and opening opportunities for better, more targeted content. Continuing to utilize customer data enables retailers to evolve their content and build relationships with customers by meeting their ever-changing demands. With proper management and content creation tools, retailers can look to their marketing channels and begin meeting customers demands at every touchpoint. 8

9 Creating seamless experiences across channels and devices Please rate your company s performance promoting its brand and product content across the following retail channels: Poor Below Average Average Above Average Excellent 24% 41% 24% 10% 1% Website 20% 36% 31% 12% 1% ecommerce 19% 35% 33% 11% 2% In-Store 16% 31% 36% 13% 4% Omnichannel 15% 25% 40% 16% 4% Print 13% 21% 46% 13% 7% Social Media 12% 31% 37% 18% 2% Mobile App 11% 22% 30% 22% 15% Multi-channel retailers are confident in their ability to create shopping journeys that are seamless across all devices. In fact, 40% of enterprise retailers rate their omnichannel performance as above average or excellent, while another 40% consider it average. Across channels, the majority of retailers consider their performance promoting brand and product content either average, above average, or excellent. This begins with half of retailers (65%) who consider their company s performance using to promote brand and product content to be above average or excellent, where almost a quarter (24%) consider it excellent. Over half of retailers (56%) feel their websites performances are above average or excellent and over half of retailers (54%) consider their ecommerce performance to be above average or excellent. Almost half of retailers (47%) consider their in-store performance promoting brand and product content to be above average or excellent, and another 43% consider social media performance to be above average or excellent. 34% consider print to be above average or excellent. Mobile Apps received the lowest ratings, where only 33% of enterprise retailers consider their performance above average or excellent, while 37% consider it below average or poor. Retailers are redesigning their online buying experiences to optimize all channels and reflect that, increasingly, consumers will visit them via multiple channels and devices. Campaigns must be activated on all devices and all properties fully tagged to leverage mobile and desktop, and to provide a frictionless shopping experience. Despite these positive marks, between 24% and 46% of retailers across channels consider their performance only average. And as we will find, enterprise retailers are less confident in their ability to personalize content for shoppers across the same channels. 9

10 Evolving personalization throughout the customer journey Please rate your company s performance personalizing content for shoppers across the following retail channels: Website ecommerce Social Media Mobile App Omnichannel In-Store Print Poor Below Average Average Above Average Excellent 19% 26% 31% 15% 9% 14% 20% 35% 21% 10% 11% 25% 32% 21 11% 11% 22% 38% 22% 7% 11% 14% 33% 27% 15% 10% 17% 39% 24% 10% 9% 13% 37% 25% 16% 7% 12% 41% 24% 16% Enterprise retailers are successfully personalizing shopping experiences across multiple channels. However, enterprise retailers responses are less positive when compared to their performance promoting brand and product content. From a multichannel approach, there is a clear disconnect in terms of performance across channels as well. For example, for every channel, less than half of enterprise retailers consider their performance personalizing content for shoppers to be above average or excellent. Retailers have rated all channels as Poor in the double digits, aside for Social Media. Mobile App has the poorest ratings, where 42% of retailers consider its performance either below average or poor. Meanwhile, has the best overall rating 19% of retailers consider their performance excellent, the most to do so in any channel; and 26% of retailers consider their performance to be above average, also the most to do so in any channel. Average remains a substantial median, so that there is hope for improvement among the majority of retailers. CONCLUSION Brands need to be specialized, faster, and more personalized. They must not only position themselves as experts with the products they offer; they must have competitive shipping plans, and deliberately showcase products that align with each buyer. The future of retail is the connectivity of content and data success can be realized only by using metrics and finding ways to connect customer engagement results to sales. By mapping out an ideal marketing approach built upon data and personas, retailers can build relationships with customers through every channel, then test and measure each buying channel to influence the customer journey. 10

11 APPENDICES About the Authors WBR Digital connects solution providers to their target audiences with year-round online branding and engagement lead generation campaigns. We are a team of content specialists, marketers, and advisors with a passion for powerful marketing. We believe in demand generation with a creative twist. We believe in the power of content to engage audiences. And we believe in campaigns that deliver results. Aprimo is a category-leading marketing operations platform that frees marketers and their teams to focus on smart marketing by managing the five essentials: planning, spending, creation, distribution, and performance. Aprimo s comprehensive suite improves time-to-market and maximizes a company s marketing investment to drive revenue. The Aprimo platform includes ADAM Software the leader in empowering enterprises to manage digital assets and product information. It s Smart Content Hub is used by global brands to create, manage, and distribute content for world-class, omnichannel customer experiences. Aprimo is headquartered in Chicago, with global R&D and customer support in Indianapolis, and international operations based in London. For more information, visit ChannelAdvisor has been on the front lines of e-commerce since 2001, helping retailers and branded manufacturers manage more listings, reach more consumers and sell more products than ever before. We ve grown from a small company in a young industry to an industry leader at the forefront of a global revolution with thousands of clients and billions of dollars in transactional revenue flowing through our platform every year. And the things that grew to define the ChannelAdvisor brand over the last 15 years constant innovation, leading technology, proven results and experienced people are still our guiding principles as we take retailers and brands into the future of e-commerce. We re here to connect your products to wherever you want them to go, but we re also here to connect you and your products to whatever comes next. That means being the first to integrate with new channels and new ways of shopping. It means connecting retailers and brands through shared data and insights. It means calming the chaos and helping you track, manage and grow your inventory and scale your business. 11