Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps

Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps

Executive Summary In a 215 survey commissioned by FollowAnalytics and Gigaom Research and performed by Survata Research Partners, enterprise mobile marketers revealed the critical role that their mobile apps play in the lifetime value of the customer. Once brochureware or purely transactional, mobile apps have evolved and are now expected to deliver intelligent, personalized, 1:1 journeys providing consistency with all other channels such as web, email, in-store experiences. To do this, mobile apps must be synced with CRM and customer data sources such as Data Management Platforms (DMPs). Yet today, companies are overwhelmingly still working with siloed data, preventing information such as behavior and preferences in other channels from influencing mobile app experience. Respondents cited technical limitations, such as scarcity of IT resources and complex coding, as the number one obstacle to enabling data flow between systems. Marketing departments are already used to A/B testing and managing email campaigns without IT support, mobile app experiences should follow the same model, especially as they are integrated with other marketing tools. Outline A. Survey Methodology B. Findings a. Long-term customer value becomes the priority for app owners b. Omnichannel Marketing is the driver for pulling data for better integrating data c. Mobile Marketers know that disconnected data systems are limiting their success C. Recommendations a. Adopt mobile app strategies that focus on long-term customer value b. Make mobile the center of your omnichannel strategy c. Leverage technology that plugs into your existing systems without complex coding or disruption, and allows you to create personalized journeys d. Technical limitations are the major obstacle to achieving CRM integration FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 2

Survey Methodology During the second half of 215, FollowAnalytics and Gigaom Research commissioned a survey that was conducted by Survata Research Partners across 45 enterprise marketing leaders to explore their app marketing strategies, particularly around the adoption of CRM-integrated mobile marketing solutions. Respondents were marketing decision-makers from North American companies with over 5 employees, who have specifically invested in marketing their mobile apps. Below are the findings. 45 marketing decision-makers from companies with over 5 employees Findings A. Long-term customer value becomes the priority for app owners What s the primary purpose of your mobile presence? When asked the primary purpose of their mobile apps, 64% named reasons around prioritizing existing 171 (38%) customers (improving customer service was 38% and 15 fostering customer loyalty was 26%). 1 118 (26%) 18 (24%) This is a significant shift over even two years ago when enterprise brands saw their mobile presence as primarily transactional and for social sharing. The ability of the mobile app to play a much larger role in the lifetime value of the customer indicates a much higher potential for mobile ROI. 5 Improve customer service Foster customer loyalty Increase revenue 53 (12%) Extend the experience from the web Furthermore, when asked to rank the value of integrating CRM with their mobile marketing tools, their top three choices were 1) increasing customer loyalty 2) enriching customer experience through [mobile] context, and then 3) optimizing the customer journey. FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 3

The insurance industry has caught on to the value of mobile app as a customer service tool. While many now have apps that allow their customers to submit claims, in Europe, BNP Paribas Cardif s new H@bitat service enables a house to communicate with its owner through sensor technology. When sensors detect an emergency such as a fire, flood, power-outage or extreme weather, a notification is sent to the customer s phone and to a security center that can provide urgent assistance. The benefit is a win-win to both parties, improving the safety of homeowners and mitigating risk for BNP Paribas Cardif. Caring for the safety of your customers is an obvious and effective way to build loyalty and increase lifetime value. Please rank the following values of using your customer database or CRM to inform your mobile marketing Average ranking (Scale 1-5, 1 being highest) Increase customer loyalty 2.51 Enrich customer experience through content 2.73 Optimize customer journey 3.2 Uplift multi-channel customer experience 3.31 Deliver ultra-personalization 3.42 B. Omnichannel Marketing is the driver for better integrating data We asked our respondents why it was important to have mobile CRM in their marketing tool belts. The number one answer (5% of respondents) was to provide their customers with a seamless experience across multiple devices. Their second choice (27%) was to uplift digital marketing campaigns, for example, augment email programs. That means that 77% indicated the need for mobile to connect and play intelligently with other channels. Customers now expect 1:1, personalized interactions that are connected across devices and channels, meaning behavior and triggers in one place influences others. If a user opens an email about an offer, sending a push notification with the same message is not only redundant, but likely be annoying enough to cause them to opt out. In other words, the right hand must know what the left hand is doing. Why is it important to have a mobile CRM in your Marketing tool belt? 25 25 1 13 (23%) 225 (5%) Uplift my digital marketing campaigns Provide customers with a seamless experience across multiple devices Leverage up-to-date real-time data 12 (27%) Omnichannel transcends just digital touchpoints. The most savvy omnichannel practitioners are even connecting brick and mortar experiences with digital and mobile. Home Depot is among the many leading this new emergence of the connected store. Realizing the power of the smartphone to inform in-store purchase decisions, they have designed tools into their apps like barcode price scanners and beacon-powered notifications to assist buyers in locating items. Their consumer apps are in essence communicating with the store itself, to create better shopping experiences that drive return visits. FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 4

This channel-agnostic marketing is impossible if mobile data is isolated. Mayur Gupta, Global Head of Marketing Technology and Innovation for Kimberly-Clark, wrote in VentureBeat, Data fragmentation, [is] where you collect data on your customer on various different devices but have no way to merge all of that data into one, single view. This blocks you from delivering an omnichannel customer experience or even getting anywhere close to it. How important is it to update your customer database or CRM system with mobile data? 3 1 276 (61%) 161 (36%) For brands to realize the benefits of omnichannel marketing, they must connect mobile data to their customer systems of record. Extremely important Somewhat important 12 (3%) Neither important nor unimportant C. Mobile Marketers know that disconnected data systems are limiting their success If customer data from CRM or customer databases could be used to inform mobile campaigns, would your mobile campaigns be more successful? 25 191 (42%) 22 (49%) We asked respondents whether connecting customer data to their campaigns was important. 97% said extremely or somewhat important. (61% said extremely important and 36% answered somewhat important.) 15 1 5 37 (8%) We also asked whether their mobile campaigns would be more successful if CRM data were used to inform their mobile campaigns and 91% agreed. (A lot more successful: 42%, Somewhat more successful: 49%.) The bottom line is that marketers know that they need their mobile data to be connected to the same systems as the rest of their channels. The ability to create great customer experiences is drastically reduced as long as mobile remains isolated. A lot more successful Somewhat more successful Neutral/ l m not sure Steve Signoff, COO of Tangerine Lab, writes in TechTarget, when companies are saddled with siloed data and processes, customers are often forced to repeat or re-enter information when they switch channels rather than the company having a unified view of the customer s interactions... Similarly, sales, customer service and finance departments often work out of these data islands rather than joining their processes to capture a 36-degree view of the customer. Data silos get in the way of timely and comprehensive service. Companies who do not adopt mobile engagement solutions that integrate bi-directionally with CRM are not going to be able to effectively use omnichannel tactics to build long term customer value. FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 5

D. Technical limitations are the major obstacle to achieving CRM integration When asked what challenges respondents would expect to face while using customer data to inform mobile campaigns, 53% cited technical limitations as the issue. (36% said dependence on IT was too great, and 17% said it involved complex coding.) Quoting Cloudtags Omnichannel, Omnichannel success requires an underlying platform to act as the customer system of record and manage or facilitate all customer facing processes. For most organizations this will be the CRM system. So technical limitations or not, marketers who want success must find a solution. What challenges would you expect to face while using a customer database or CRM data to inform mobile campaigns. 15 1 5 162 (36%) 77 (17%) 5 (11%) 33 (7%) High dependence on IT for data integration Requires complex coding Legacy/not feasible Organizational silos 17 (24%) 17 (4%) Budget constraints I m not sure None of the above 4 (1%) First generation and home-grown mobile engagement solutions face unnecessary complexity caused by dependence on technical resources. The reality is that mobile engagement tools must reach the level of sophistication that other marketing suites and channel management solutions have had for years. CRM integration should be push-button, without the need for cumbersome, cross-departmental integration projects. Recommendations Based on the findings of this survey, brands who want to realize ROI from their mobile apps should do the following. A. Adopt mobile app strategies that focus on long-term customer value. While it may be tempting to focus solely on getting a single sale, app owners should be considering what continuing value their apps can bring the customer. Consider Nivea s wildly popular child locator bracelets which were included as waterproof tear-outs in magazines. They connected to an app allowing beachbound families to find missing children, indirectly boosting regional sales more than 6%. Louis Vuitton s City Guide app is another great example. While not directly linked to sales of luxury leather goods, the app elevates the brand and had over 1k downloads in its first day. What services can an app provide your audience that complement your brand? FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 6

B. Make mobile the center of your omnichannel strategy 1:1 personalization means more than just targeting and segmenting. Each customer now becomes a segment of one, and only one. A consumer s email experience with a brand or retailer needs to work with the in-store experience and their brand s mobile apps. Too often optimizing each will deliver great single channel results, but the consumer is (at best) confused, or annoyed. There must be connectivity and interplay between channels. Marketers must not look at their channels as separate entities but take a holistic view of the customer s entire experience. Since mobile is the most personal and contextually-aware of all channels, it makes sense that mobile connects the dots between the others as the center point. C. Leverage technology that plugs into your existing systems without complex coding or disruption, and allows you to create personalized journeys. Omnichannel marketing drives long term customer loyalty. But without connecting all channels to a single data source, omnichannel marketing is impossible. Mobile must plug into other systems for a 36-degree view of the customer and all of their touchpoints. Marketers who find solutions that circumvent technical dependencies on this will have a leg up on their competition in their ability to provide rich, integrated and personalized customer experiences that support the user throughout their relationship with your company. About FollowAnalytics FollowAnalytics is leading the charge for the next generation of 1:1 mobile engagement solutions that deeply engage customers. Powered by the first of its kind Contextual Analytics Engine and push-button connectors to customer data sources, FollowAnalytics does the heavy lifting for marketers, providing the intelligence and automation needed to create mobile moments and omnichannel experiences that delight customers. FollowAnalytics customers are industry leading brands including: AXA, Allianz, BNP Paribas, L Oréal, Renault, Voxeet and more. Founded in 213 by Samir Addamine, FollowAnalytics is headquartered in San Francisco with offices in Paris and Montreal. Learn more at FollowAnalytics.com or follow us on Twitter: @FollowAnalytics About Gigaom Research Gigaom Research is one of the industry s most respected sources for tech-related news, events, and research for business with a focus on emerging technologies in the Mobile, Social, and Internet of Things areas. Founded in 6, Gigaom Research was acquired in May 215 by Knowingly Corp., and now offers annual subscriptions, advisory services, presentations, sponsored content, and primary research to clients large and small including Google, Microsoft, Dell, and Samsung. For more information, please contact gigaom@gigaom.com. FollowAnalytics Why Rich, Omnichannel Customer Experiences Cannot be Created Without Connecting CRM to Mobile Apps 7