Customer Centricity in Action #IRCE17 · building emotional connections, therefore, improving business relationships with customers, assisting in ... Social Media Customer Call Center

#IRCE17

ECOMMERCE TECHNOLOGY WORKSHOPJune 6, 2017

Customer Centricity in Action

#IRCE17

Customer Centricity in Action

The When and How for a Physical Store

CRM & Loyalty: A Customer Journey Tool

Data: The Art & Science of Retail

IRCE 2017 Tech Workshop 2

Rob RoyerFounder and CEO

Mark FriedmanPresident of ECommerce

Ali WingFormer CMO and EVP Digital

#IRCE17What’s most important to your customers across all points of their shopping journey?

0%

14%

38%

48%

Personalized Products

Personalized Experience

Great Customer Service

All of the Above

Answers

Answers

#IRCE17

Customer Centricity should Drive Everything

IRCE 2017 Tech Workshop Customer Centricity in Action 4

Source: Accumulate.com

#IRCE17

#IRCE17

Choosing a sofa is a deeply personal experience

S E L F

E X P R E S S I V E

C E N T E R P I E C E

O F H O M E

H I G H LY

C O N S I D E R E D

I/D CAITLIN

#IRCE17

Existing furniture options didn’t measure up

C O O K I E C U T T E R O V E R W H E L M I N G Q U A L I T Y B E Y O N D R E A C H

R e t a i l : $ 1 0 , 0 0 0

S h i p p i n g : $ 3 0 0

IRCE 2017 Tech Workshop Customer Centricity in Action: The When and How for a Physical Store 7

#IRCE17

We set out to transform the way you shop for a sofa

C U S T O M

Every piece is handcrafted just for you, from the

shape and size to the fabric and legs.

S I M P L I F I E D

Personal attention, free delivery, and 365-day returns

leave you feeling relaxed, not overwhelmed.

A C C E S S I B L E

Digital-first, inventory-free approach

enables well-crafted designs at accessible prices.

I/D OWENS


#IRCE17

Our experience is built on a made-to-order,

inventory-free production approach

Order placed Built-to-order Quality controlled Shipped direct White glove delivered

Financing Available365-day Return

PolicyComplimentary White-

Glove Delivery


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Enabling unique customization & quality at an

accessible price

S I Z E + C O N F I G U R AT I O N

L E G S + F I N I S H E S

F A B R I C S

C U S H I O N F I L L

3 D c u s t o m i z a t i o n i n t e r f a c e


#IRCE17

I/D leads with a digital-first experience


#IRCE17

We opened a “Guideshop” in our first month

Original I/D location — great learnings, but disconnected from web experience with little tech.


#IRCE17

Today: tech-enabled Guideshops meld our online +

offline experience

3D Customization Tools


#IRCE17

What we’ve learned

1. There needs to be a clear connection

between the on- + offline experience.

2. When customers experience both,

a. Higher AOV

b. Increased basket size

c. Higher referral rates

3. In-store technology helps build

relationships, and ultimately increases

overall conversion

4. On- and offline experiences are

amplified with human connection

I/D Swatch Package


#IRCE17

What’s next

• Additional Guideshop locations

• Adding design specialists

• Evolved on- and offline

customization UX

• New mobile technology

SohoGuideshop


#IRCE17What Does CRM Mean To You?

• CRM is a business strategy that puts the focus on meeting the needs of your customers throughout the customers’ lifecycle with the company.

• Goal - Transformation of transactional interactions to building emotional connections, therefore, improving business relationships with customers, assisting in customer retention and acquisition, and driving sales growth.

• Achieved by utilizing advanced technologies to organize, analyze, automate, and integrate the marketing, sales, and customer service components of your business.

IRCE 2017 Tech Workshop 16

#IRCE17

IRCE 2017 Tech Workshop

Value Dynamics

Who are your most valuable customers?

Profitability

Who are your most profitable

customers?

Customer Potential

Which customers do we

focus on to grow?

Lifestyle Dynamics

What motivates my customers?

Goal: Improve Customer Lifetime Value

Know Your Customers First

Customer Centricity in Action: CRM & Loyalty - A Customer Journey Tool 17

#IRCE17Typical Marketing Challenges

Typical Internal Challenges

• Recognizing the business value of customer engagement, based on buying behaviors, habits and preferences

• Difficulty in obtaining a 360 view of the customer; and a single version of the truth

• Lack of data accessibility and integration within Marketing systems• Under utilization of customer data with Marketing & Merchandising efforts• Insufficient resources, technology and budget• Inability to personalize and target relevant offers/content• Inability to connect and personalize customer experiences with the brand

across multiple channels at the right time and place• Inability to improve marketing ROI• Inability to maintain/improve customer retention• Inability to monitor and report on KPIs

IRCE 2017 Tech Workshop Customer Centricity in Action: CRM & Loyalty - A Customer Journey Tool 18

#IRCE17

Close & Personal

Know the Customer Engage the Customer Deliver the Experience

360° View Customer

Whenever Wherever However

CRM + Customer Marketing Guiding Principles


#IRCE17

Personalize Your Engagement Across Touchpoints


#IRCE17Customer Engagement Workbench

CustomerEngagement

Strategies

Acquisi onEnrollment

Nurturing

Reten on

Targeted/RelevantPersonalized

Recogni onApprecia on

ConversionCross-Sell/Up-Sell

Predic ve

Win-BackDiminishing

Lost

Omni-Channel

POS/DigitalReceipts

Print/DirectMail

Email

Mobile

SocialMedia

Customer

CallCenter


#IRCE17

Awareness Consideration Purchase Service Loyalty

Customer Marketing - Transformation Framework

Goal:Get notice; generate traffic; inform & educate; get subscribers, i.e. email

Goal:Convince & transform visitors to customers

Goal:Close the deal; Convert visitors to add items to their carts & submit orders

Goal:Ensure every single subscriber is 100% satisfied w/the services the company provides

Goal:Transform customers to loyal-raging Fans (Advocates); Repetitive customers

Buyer’s Stage:Curious, Googling, Browsing, discuss with advocates

Buyer’s Stage:Interested, Research, Read customer Reviews, Decision Making

Buyer’s Stage:Purchase. Online or Offline

Buyer’s Stage:Usage & Ask Questions; Provides feedback, review, engages in conversation

Buyer’s Stage:Know who I am; Engage me, Personalize the CX; Advocacy

Key Factors:- Most attractive &

cost efficient way to generate traffic & awareness to my site.

Key Factors:- Kind of persuasive

info to provide- Value proposition- Hindrance from

buying

Key Factors:- Multi-channel to

interact & purchase- Cart abandonment.

Why?- Customer Support

Key Factors:- Well trained

customer support team

- FAQs

Key Factors:- Know my customers- Personalized

Engagement- Deliver the CX as

s/he expects


#IRCE17CRM & Loyalty Solutions

• Consolidate customer information, • such as personal information, purchase

history, preferences, feedback, concerns, etc.,

• across multiple channels into a single CRM Database.

• Profiling customers, • understanding their needs, and

• building relationships with them by providing the most suitable products and enhanced customer service.

• Benefits• Improve Customer Service Efficiency &

Effectiveness

• Increased Personalized Service or One-to-One Service

• Responsive to Customers’ Needs

• Improve Customer Knowledge

• Customer Segmentation

• Enhanced ability to target high valued & profitable customers

• Enhanced sales force efficiency and effectiveness

• Track & Measure Performance

IRCE 2017 Tech Workshop 23Customer Centricity in Action: CRM & Loyalty - A Customer Journey Tool

#IRCE17

• Focus on meeting the needs of your customers throughout the customers’ lifecycle with the company.

• Transform transactional interactions to building emotional connections.

• Improve business relationships with customers, assisting in customer retention and acquisition, and driving sales growth.

• Achieved by utilizing advanced technologies to organize, analyze, automate, and integrate the marketing, sales, and customer service components of your business.

CRM & Loyalty are Now ‘Must Haves’

24IRCE 2017 Tech Workshop Customer Centricity in Action: CRM & Loyalty - A Customer Journey Tool

Steve Madden on Bitmoji

#IRCE17

Ali M. Wingformer CMO, EVP Digital Channels

Maurices (Ascena Retail)

Summer 2017

Data: The Art & Science of Retail

Media Mix Return on Investment (MROI)Optimization & Measurement

31IRCE 2017 Tech Workshop Customer Centricity in Action: Data: The Art & Science of Retail

#IRCE17

HOME COMMUTE WORK COMMUTE RETAIL HOME BED

The path to purchase is increasingly complex

26IRCE 2017 Tech Workshop

#IRCE17

#IRCE17

There are no shortage of companies pitching incrementality

28IRCE 2017 Tech Workshop Customer Centricity in Action: Data – The Art & Science of Retail

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29

Activities & data progress in silosLegacy structures & processes limit alignment

stores

online

Different

Media Types

Drive Stores

vs. Online

Customer &

Transaction

Data is

Separated

Performance is

Measured in

Isolation

Channel

Ownership is

Divided

Traditional

media drives

store

performance

Store

EDW

Store KPIs

• foot traffic

• conversion

• ADS, UPT

• store owners

• marketers/

merchants

Digital media

drives

Ecommerce

performance

eCommerce

EDW

eCommerce

KPIs

•visits

•conversion

• ADS, UPT

•search

•display

•affiliate

• eCommerce

owners

• marketers/

merchants


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30

• organizations have limited visibility to

customer behavior/ marketing

performance

• industry pushes point solutions, all

being sold as silver bullets

• marketing, analytics, IT, etc. teams

work separately to resolve same

issues

• lack of alignment between measurement group & C-suite

• marketers don’t use available data or solutions

“I’m driving

customers across channels,

but I can’t measure their

response or the true

incrementality of any

marketing. HELP.”

The ResultToo much tech, too few insights & progress is slow


#IRCE17

Establish funnel attribution, merge with customer analysis

What to do?


#IRCE17Data “discovery analytics platform”

measure activate

unified customer view

revenue

new-to-webLTV

browse-influencedROAS

acquisition

KPIs

advanced analytics

transaction attribution

testingmedia mix

modeling

• tactical optimization

• contact strategy

• channel incrementality

• budget allocation

• ad syndication

• personalization

CRM

promo

digital pixel

cross-device

POS

product

data sources

-customer data

-tag management

-web analytics

-beacons

-etc.

measurement

-multi-touch attribution

-media mix modelling

-test & target

-cross-device, O2S maps

-segmentation, analytics

activation

-media mix

-digital asset

-channel

-campaigns

-offers

“data lake”

or

“data

production

environment”

IT financemarketing site operations

It’s not as simple as “implement attribution”

32IRCE 2017 Tech Workshop

#IRCE17

in briefmain

value add

main

weaknesstech

transaction

record

media mix

modeling

attribution

testing

daily or real-time,

unaltered source of truth

performance reporting in real

or near real-timeprovides no context as to

how revenue was generated

statistical analyses estimating

impact of marketing variables,

forecasting future sales

best approximation of

marketing’s true effect across

invested dollars on customer

behavior

lack of granularity;

difficult to use for daily

optimization

model for applying

conversion credit to

customer touchpoints

delivered at a level of

granularity to support

activation

limited scope;

measures correlation,

not causation

measures incrementality

(i.e., causation)difficult to scale

utilizes test/control format

to measure media impact

on customer behavior

Insights-to-action “rinse & repeat”Collect data, measure consistently, test & activate


#IRCE17

Q:

Q:

Q:

Which marketing channels are

most efficient at acquiring new customers?

Areas of inefficient spend and

opportunities for reallocation?

Combinations of media that works best

to accomplish varied business goals?

What we’re unlockingMarketing performance & customer behavior-based critical biz decisions


#IRCE17

35

TEXTADS

EcomROAS

New customers

1.0 0.9

45% 62%

AOV $79

$55

Learning: PLA’s have a 50% lower cost per new

customer than text ads

Action: increase mix of NTF search budget towards PLA’s

PRODUCTADS

Case Study #1: Acquisition MROIQ: What marketing channels are most efficient at acquiring new customers?


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Learning: brand search terms

NOT incremental on desktop;

mobile +21% incremental)

Action: $$$ annual spend

reallocated

Hypothesis: searching on

maurices brand navigational

terms is not 100% incremental

(e.g. maurices/maurices.com)

Test design: A/B geography split

▪ Geo A – brand nav terms on

▪ Geo B – brand nav terms off

Case Study #2: Device & Media Type MROI

Q: Can we reallocate areas of inefficient spend for optimization?


#IRCE17

Single production environment for ALL data is key

• limit external data impacts with a controlled data “house”

• single source of truth across all media touchpoints

• easy, flexible structure for updating/changing inputs

Keep your focus on patterns vs. precision

• use logic/rules that make sense for your business

• keep it simple & keep making progress

• find patterns & monitor shifts

Break into manageable parts, build it to keep evolving

• strive for short terms wins & building foundation for future

• evolve capabilities over time

• integrate with operational processes cross-functionally

• think in terms of sprints

Key learnings to date


#IRCE17

Q&A

Rob Royer

Interior Define

Mark Friedman

Steve Madden

Ali Wing

Formerly of Maurices

For additional questions:

[email protected]

38IRCE 2017 Tech Workshop Customer Centricity in Action

Documents

Customer Centricity in Action #IRCE17 · building emotional connections, therefore, improving business relationships with customers, assisting in ... Social Media Customer Call Center