Table Of ContentThe CMO Guide to Omnichannel Personalization
CMO Club and Industry Experts Weigh In
The CMO Guide to Omnichannel Personalization
CMO Club And Industry Experts Weigh In
1. What Is Omnichannel
Personalization?
Pic
2. How Do I Effectively Engage
Customers?
Ashley Lauri Kien Fred Susan
Sheetz Kotcher Neil Shields 3. What Are The Critical Enablers?
GameStop Godiva Home Depot Jamba Juice
4. Future… Customer Experience?
5. Keys To Success
6. Who’s Doing It Well?
October 2013, Written by 5one & Revionics
Shannon Paula Kim Elisabeth
Smith Puleo Feil Charles
JCrew Michael’s OfficeMax Petco
Nadine Dietz Karen Dutch
Don Denise Jennifer Susan
Hamblen Incandela Dominiquini Lintonsmith
Trish Ferguson Sheridan Stavac Kathy Beck Dick O’Brien
Roundy’s Saks Fifth Sears Quiznos
Supermarkets Avenue
Executive Summary
Today’s CUSTOMERS ARE FIERCE. NO! The game has simply changed.
They are savvy, demanding, impatient and unforgiving. And the customer power shift is in full swing. To win
Long gone are the days of “loyal” customers because mindshare, retailers (and manufacturers and service
you’ve given them a loyalty card or an interesting providers) both need to shift from a one-way monologue to a
promotion. Today’s customers are loyal to no one but two-way dialogue. Instead of hoping, pushing, forcing them to
themselves and to win their business, you need to win listen to you, you need to listen to them… T alk with them, not
their minds. Although share of wallet is still a common at them. Understand them. Engage them. Excite them.
measure for evaluating loyalty, the new predictors for Reward them in the way that resonates with their needs.
gaining loyalty, or preventing attrition, are focused around Provide to them a consistent fulfilling experience at every
MINDSHARE. touchpoint to ensure they not just “like” you…they love you!
They interact with you. They care about you. They talk about
you. They recommend you.
So WHAT DOES THAT MEAN for retailers,
brands, any business interested in engaging
And if they don’t?
customers?
Well, then you’ve got to work even harder. Because unhappy
What the heck is “mindshare”? How in the world do you customers are more powerful than happy ones!
gain it? It sounds so complicated… why bother to reach
out to those pesky customers at all if they aren’t listening
to you? Is it better to simply stop spending against loyalty
building initiatives and hope those customers decide to
still buy from you? Take away the cards, cancel
promotions, stop the emails, lose their phone numbers,
close the call centers, withdraw from the social network?
datasciencesseries.com
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Overview Of Content
“Create a single
This guide provides insights from CMOs for CMOs.
view of the
truth”
A must read, it provides rich peer examples and industry perspective on
how best to engage your customers through omnichannel personalization. “Our consumers
It is not intended to be a comprehensive guide on every marketing activity, are passionate and
rather a collection of relevant actions that showcase how CMOs are we consider
responding to today’s powerful customers and some tips on how to enable them brand
success within your organization. ambassadors”
“Seamless
We have aggregated feedback from 12 CMO Club
experience
members and fellow industry experts to: “Have to stop across all
talking to brands”
ourselves and
• Provide a peer definition of omnichannel personalization, make a start talking to
customers
case for it and identify influencers
instead’ “To activate
shoppers before
• Demonstrate how to shift interaction with customers from one-way
they walk
monologue to a two-way dialogue in any channel
in...through social,
mobile, digital
• Identify critical enablers for execution and efficiency
• Provide a future outlook on the Customer Experience
• Summarize keys for success and peer nominated “best-in-class”
retailers who are delivering the Customer Experience with excellence “I don’t want to be
just liked, I want
to be remarkable”
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Table of 1 WHAT IS OMNICHANNEL PERSONALIZATION?
Contents 2 HOW DO I EFFECTIVELY ENGAGE CUSTOMERS?
3 WHAT ARE THE CRITICAL ENABLERS?
4 FUTURE…CUSTOMER EXPERIENCE?
5 KEYS TO SUCCESS AND WHO’S DOING IT WELL?
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Foreword, By Bill Bishop
Taking Advantage of the New Realities
Consumers are always the first ones to experience changes in The concept of personalization flows directly from the digital capabilities that
the market and retailers are the first line of business to “read are an integral part of the lives of omnichannel shoppers.
and respond”. This can get complicated when changes
threaten to disrupt the market and undermine long held Properly executed, personalization increases the relevance of a retailer’s
competitive positions. Too often those who “own” the business offer and improves the probability of purchase. This is done through
are unable to accept that they’ll have to make major improved shopper engagement which is the focus of a major part of this
adjustments or face irrelevance and eventual loss of their report.
dominant position.
As the report shows, there’s a lot of art involved in delivering the appropriate
The rapid emergence of the omnichannel shopper creates this levels of engagement at every touchpoint. The good news, however, is that
type of disruption. One indication is that traditional marketing when it’s done well this extends the notion of path to purchase to “couch to
and merchandising tools begin to lose their effectiveness. counter”.
Another is that new frequently unique types of competitors
come onto the scene and begin to win market share from
traditional retailers. This was called “the wheel of retailing” and In this omnichannel environment branding has never been more important,
it’s important not to miss the rest of the story. Sooner or later but marketing is more challenging because consumers control whether or
these new competitors also begin to saturate the market. As not they will accept the messages. Thought leaders in marketing are
this happens, their costs go up and shoppers again begin the grappling with the problem, but some like Professor Bobby Calder at Kellogg,
search for other retailers who can better satisfy their needs. see the “road through the mountain” as combining marketing to lifestyle
It’s an ongoing process. segments along with a recognition that the right emotional appeal can help
break through the clutter.
Today we’re at a point on the wheel of retailing where
omnichannel shoppers are now aggressively searching for The content of this report provides CMOs with an up-to-date picture of where
better ways to serve their 21st century needs. It’s exactly leaders in the field are heading as they operate within the uniqueness and
what would be predicted by the wheel of retailing model; i.e. lots constraints of their own companies to embrace omnichannel personalization.
of competitors are auditioning to play that role. It’s important to recognize, however, that this is still “a work in process” which
means that it’s important to quickly apply this new learning since it won’t be
long before there’s a need to revisit the topic. This is truly an opportunity for
This report provides experience-based insight and guidance first mover advantage.
from leading CMOs, 5one and Revionics and presents it in a
way that will help all CMOs better navigate these challenging Bill Bishop, Chief Architect
times. brickmeetsclick
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• What is it?
• Why do it at all?
• How does it differ by vertical?
• Where do I focus?
OMNICHANNEL PERSONALIZATION
What Is Omnichannel Personalization?
Omnichannel personalization is about CUSTOMERS, NOT What CMOs are Saying
channels. Based on feedback from CMOs and industry
experts, we offer the following definition:
‘Single view of the truth from a
customer’s perspective’
‘Right message, right time, right
• an evolving practice to effectively engage customers across all customer’
touchpoints through relevant interactions that uphold a consistent
brand identity but are tailored to meet customers’ unique preferences
‘Channel agnostic is a given.
Personalization critical’
• ongoing dialogue, evaluation, measurement and refinement to ensure
interaction is current, relevant and engaging
‘Seamless experience across all
• focused on gaining customer’s mindshare in a world where they are brands’
demanding to be heard, engaged, serviced and appreciated; defying
commonly defined boundaries of channels built on technological or ‘To reach customers in a relevant,
infrastructure constraints consistent, intelligent manner’
• the execution vehicle driving a common customer engagement
‘To activate shoppers before they walk
strategy which requires organizations to break down internal
in...through social, mobile, digital…’
boundaries and re-align forces to execute
• a commitment to move from product/service driven business ‘It’s Magic’
practices to customer-centric driven business practices, where the
customer defines the way in which you will engage them
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WHY Do Omnichannel Personalization?
For the BOTTOM LINE. Industry Perspective
Customer retention is much more
“A million shoppers are a lot to lose in a
profitable than acquisition. year’s time …but the numbers become
even more sobering when you consider
how much potential revenue JC Penney
let slip from its grasp. An estimated
“Bain found an average company loses 20% to 40% $745 million in potential revenue has
of customers every year. Reducing attrition by 5% walked out of JC Penney’s women’s
can improve bottom line profits by 25% to 85%. department over the past year – that’s
a big share of purse, if you will.”
Also, increasing loyalty by 1% reduces costs by 10%.”
Pam Goodfellow, Forbes
JC Penney's Million Women Walkout
Source: Loyalty 360: Making Every Interaction Count
“McKinsey claims that 55% of the
current marketing budget is spent on
new customer acquisition and only
12% on customer retention. However,
according to ‘Leading on the Edge of
Chaos’, you have only a 5-20% chance
of selling to a prospect. The probability
55% of selling to an existing customer is
Marketing M1a2rke%ting So WHY do companies between 60 and 70%. So money spent
budget spent budget spent spend more on on preventing churn, is better spent
on customer on customer than that which is invested in
retention
acquisition acquisition? acquisition.”
ANALYZING CUSTOMER BEHAVIOR
www.datascienceseries.com
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How Do We Retain Customers?
Engage, Engage, Engage! What CMOs are Saying
Engaged shoppers spend more than
‘I don’t want to be just liked, I want to
non-engaged. And the more positive
be REMARKABLE‘
the engagement the higher the spend!
‘Be relevant at the moment of touch’
Source: Bain, Putting social media to work
EARN THEIR MINDSHARE by becoming part of their lives. ‘Build relationships and create a
WOW experience to inspire on-going
Become “REMARKABLE”.
loyalty’
Know who your A Corporate Executive Board study found 64% of people ‘Have to stop talking to ourselves and
customer is, and with a strong brand relationship cited ‘shared values’ as start talking to customers instead’
the primary reason
what they value
‘Go where the customer is - she is on
her phone, she is in her car, she is
mobile and active, she is social’
Tap into their Per Nielsen, 92% of consumers rely on
networks recommendations from people they know above all else! ‘Bring down the barriers to purchase
- -tell them how to get started, how to
get better, how to do it at all.....’
64% of Retailers interviewed in a brickmeetsclick survey
‘Tell the customer you care about
agreed that shoppers are more willing to share personal
Personalize! them and are listening to what they
data today, but the exchange will be personal data for
personalized offers say’
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