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Leverage Social Networking and The Internet of Things to Drive Personalization and Engagement
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Commerce’s New Connections Leveraging Social Networking and The Internet of Things to Drive Personalization and Engagement
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Competition for Consumer Attention Continues to
Grow…
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
500/Day 5,000/Day
Image Courtesy: Wikipedia Image Courtesy: Wikipedia
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
30,000 marketing messages per day
Today consumers encounter almost
-Yankelovich Consumer Research
Image Courtesy: Wikipedia
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Spray & Pray Marketing
Hence the Fate of Most Marketing Messages…
1 – Silverpop e-Mail Marketing Benchmarks Study
2 – Clickz
83% Retail e-Mail Open Rate1
Unopened…
One-to-One Personalization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Spray & Pray Marketing
Hence the Fate of Most Marketing Messages…
1 – Silverpop e-Mail Marketing Benchmarks Study
2 – Clickz
97% Retail e-Mail Click-Through Rate1
Ignored…
One-to-One Personalization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Spray & Pray Marketing
Hence the Fate of Most Marketing Messages…
1 – Silverpop e-Mail Marketing Benchmarks Study
2 – Clickz
66% "unsubscribed from e-mail
that I had opted into because it wasn't relevant”2
or Worse.
One-to-One Personalization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
And Meaningful Loyalty Remains Elusive
Source: – Colloquy
$48 Billion loyalty rewards distributed annually
36% Effective in earning repeat shopping visits
$32B essentially
wasted
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
So…What’s Missing?
PERSONALIZATION
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
59% believe personalized offers have a
noticeable influence on their spend - Infosys
Image Courtesy: Wikipedia
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
40% buy more from retailers that personalize the shopping experience consistently across all channels - eTailing Group
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
78% are more likely to be repeat customers of retailers with
targeted, personalized offers
- Infosys
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retailers See That Personalization Can Pay Big
Potential Value of New Marketing Opportunities
Better Targeting via More
Detailed Customer Preferences
Real-time Personalized Offers
58%
50%
39%
47%
Highly Valuable Somewhat Valuable Source: Retail Systems Research
97% find value in both
improved targeting and
personalization
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
75% of Netflix views come from personalized recommendations --McKinsey & Co
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: Aurelijus Valeiša
35% of purchases on Amazon are the result of personal recommendations --McKinsey & Co
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Loyalty Program Data
Acxiom Data
Purchases
Website Clickstream
Abandoned Shopping Carts
Service Requests
Returns
e-Mail Opens, Clicks
The Good News? Marketers Have More CRM Data than Ever Before
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Loyalty Program Data
Acxiom Data
Purchases
Website Clickstream
Abandoned Shopping Carts
Service Requests
Returns
e-Mail Opens, Clicks
The Problem? More CRM Data Has Not Led to More Insight
27% strongly agree that their
company knows who their best customers are
Only
4% strongly agree that they are proficient at target
marketing across channels
Only
?
Source: Retail Systems Research
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Traditional CRM Segments Added Value in their Day
Image Courtesy: XDesktopWallpapers.com
Donald F. Draper Creative Director
Sterling Cooper Draper Pryce 1271 Sixth Avenue New York, New York 10000 Klondike 5-5356
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Traditional CRM Segments Added Value Even 5 Years Ago
Image Courtesy: Alpha Coders
Geographic • Demographic • Lifestyle • Purchase Behavior
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
However, Traditional Segments Are No Longer Enough
71% of leading retailers indicate that fragmenting customer segments make it harder to reach their customers Source: Retail Systems Research
They Tell Us Whom/Where to Target, But Three Key Questions Remain Unanswered…
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
What Motivates Them?
Image Courtesy: Wikipedia
1
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: Wikipedia
How Do We Engage Them? 2
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: Charles Starrett
What Do They Want?
“Any customer can have a car painted any color that he wants so long as it is black”
Self-Fulfilling Assortments
3
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Balance of Power has Shifted
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retail, Upside Down
“Sell What We Have” Has Become…
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retail, Upside Down
Sell What We Have “Sell What They Want”
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: Gabriel Saldana
Strategic Actions by Best-in-Class Retailers
Product strategies based on deeper customer segmentation
Coordinate product placement with customer behavior
Establish quantifiable methodologies for measuring customer activity
Increase online ad relevance with search criteria
36%
29%
24%
24%
Source: Aberdeen Group
Top
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Linking Assortments and Offers to Customer Data is Mandatory
Analysts All Agree…
Image Courtesy: Rick Harris
The best way retailers can deliver a unique, exceptional shopping experience is to personalize brand
interactions to individual shoppers and groups that share similar preferences and/or demands.
“ ”
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
CONNECTIONS hold the key to customer relevance
PEOPLE MACHINES
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Degrees of Separation
1.9B PEOPLE
Source: We Are Social
4 Social
140B CONNECTIONS
Source: Facebook
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Private traits and attributes are predictable from digital records of human behaviour
Going Beyond Likes
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Going Beyond Likes
The Cambridge Study Revealed that People Who Like Onion Rings have Above Average Intelligence…
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Going Beyond Likes
…and that People Who Like The “Sliding on Floors with Socks” Facebook Page Typically Do Not Use Drugs
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: picstopin
Many People Like Alcohol (and boy do we talk about it on social media!)
But Few People ‘Alcohol’
Discovering Passions Hiding in Plain Sight
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The $64K Question
How Do We Monetize These Insights?
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Kraft Dips into Data to Uncover Advocates
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
BEFORE the Shortage • CRM-Driven Consumer Analysis
• Occasional Usage (1-3x/year)
• Slow Growth Product
• Being Milked for Profits
AFTER the Shortage • Added Social Data to CRM Analysis
• Heavy Usage Among Advocates
• 10% Buyers = 40% Sales, 50% Profits
• Lots of Growth Headroom
• New Marketing Approach
Source: Advertising Age
Sales Share Ad Efficiency
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Walmart Labs: Social Sells More Stuff
Semantic analysis of a huge data store of real-time social
media streams to inform marketing and commerce
The Social Genome Project
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
FRIENDS
MENTIONS
FAN PAGES
PROFILES
EVENTS
CRM
Worth Its Salt for Walmart?
OMG! I love salt!!!!
02:12 PM • May 05, 2010
@Natasha95
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- C
ON
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Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Walmart.com searches informed by
the Social Genome see
10-15% higher
conversion rates
Image Courtesy: HDWpapers.com
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Loyalty Program Data
Acxiom Data
Purchases
Website Clickstream
Abandoned Baskets
Service Requests
Returns
e-Mail Opens, Clicks
Consensus: Social Insights Lead to More Targeted Segments
Loves J.K Rowling Novels Guilty Pleasure: Downton Abbey
Practices Yoga Drives a Prius
Dodger Fan Climbs Mountains
Sagittarius Vegetarian
52% of marketers credit social data
with helping them identify new business opportunities
46% indicate social analytics help
define customer personas and market in ways that resonate
Source: eConsultancy 2013 Source: eConsultancy 2013
?
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Next Frontier in Personalization?
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Rise of the Machines
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Internet
of Things “Equipping all objects
in the world with minuscule identifying devices or machine-readable identifiers”
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
1000 devices connected to
the internet in 1984
,
Image Courtesy: NXE Wallpapers
Source: Cisco
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Image Courtesy: MovieWallpapers.com
12B devices connected to the internet today Source: Cisco
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
50B devices connected to the internet in 2020 Source: Cisco
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Connected Home
By 2022 the average household with two
teenage kids will own
Internet connected devices Source: Reuters 50
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
220M Smart connected cars will be sold by 2020 --GSMA
The Connected Auto
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
The Connected Human
Fitness Activity Trackers grew
in 2013 and analysts expect
in 2014
Source: Canalys 300% 9M
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
zettabytes Source: Tibco
2.8
Imagine the Possibilities
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
connections in our daily lives
With the growing number of
we will all become more in tune
with our data and expect more relevance
from retailers and brands
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Retailers and Brands Must Be Prepared to Complete The Trust Equation
Personal Data + Respect
Trust = Tailored Offers, Deals & Interactions
Thank You
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