Customer Interaction Model of the Future
How to Get Personal AcrossMulti-Channel Touchpoints
Michael R. HoffmanCustomer Experience Expert & Partner
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Presentation Goals
Make you more successful as measured by:
• Get you a pay raise
• Make you the envy of your peers
• Get you home on time
• Peaceful night’s sleep
• Unprecedented prestige and power
• Make your life easier
• And “Yes” Customers will love you!
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Get Personal Agenda
Why are we here again?
It’s a customer world – we just live in it
We all work for companies – now deal with it
Begin with the end in mind – if you had all the time and money…
Get personal across multi-channel touch points using a Customer Experience Framework
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The purpose of a company is “to create a customer…
The only profit center is the customer… Therefore the business has two—and only two—basic functions: marketing and innovation.
Marketing and innovation produce results: all the rest are costs.”
- Drucker
Company’s Purpose?
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We Do What for a Living?
“Each day, marketers expose Americans to some 12 billion display ads, 3 million radio ads, and more than 300,000 television commercials.”
The average U.S. consumer receives roughly 1 million marketing messages a year across all media, or about 3,000 messages per day…
From Net Worth, John Hagel III, Marc Singer
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Consumers & the “Instant Gratification Button”
“Today, the average American is exposed to 1,500 ads every day, ranging from traditional sources such as billboards, radio spots and newspaper classifieds to Web banners and pop-ups.”
- YOUR AD HERE
Sunday, April 09, 2006
Denise Trowbridge
THE COLUMBUS DISPATCH
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Radio
Internet Ads
FSPs
Direct Mail
FSIs
In-Store TV
Network TV
Newspapers
DVD Trailers
High Impact Product PlacementsRetailtainment
Outdoor Signage
Coupons
Movie Theater Ads
Customer Service
Content Implants
In-Store Sampling
Mega-EventSponsorship
Cable TV
Permission-Based E-mails
21 and just starting…
We Create Messages to Sell Something to Prospects and Customers
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Plan Marketing Goals and Budgets
Execute MarketingTactics
Analyze and MeasurePerformance
Collaborate acrossGroups
Capture and Deploy
Best Practices
How Long is Your Cycle Time?
In the Old Days, This Seemed Easier?
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The Need to Automate – Productivity, Relevance, Synchronicity
Old Time Current Time What’s Next?
Broadcast TV 6-9 Months 1 – 12 weeks YouTube, Cam2Web
Direct Mail 3-5 Months 1-2 weeks Direct to Print
Sales/Field Training 3-6 months 1-3 months SFA/CRM Tools
Newspaper Print 2-4 weeks 1-2 weeks Digital Press
Magazine 3-6 months 2-3 months Digital/V Press
Brochure 1-4 months 1-3 weeks Direct to Print
Signage 1-4 months 1-8 weeks Digital Signs, Web connected
Website 1-4 weeks Day parts Multi-party, Dynamic content
Email Weekly Daily Triggers, dynamic content
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DM Variables with Traditional % Performance Contribution
List 50%+
Targeting & Segmentation
Offer 20%
What’s the deal?
Creative 10%
Copy & Art
Media 20%
Sequence & Frequency
How many departments’ resources support advertising and marketing processes?
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Plan Marketing Goals and Budgets
Execute MarketingTactics
Analyze and MeasurePerformance
Collaborate acrossGroups
Capture and Deploy
Best Practices
How Long is each Cycle Time?
How Many Departments Go through This Same Process to Communicate with Customers?
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Marketing is a Whole New Game
Message obsolescence
Highly complex offers:
• Promises
• Delivery
• Payments
• Service
• Membership
Buyer sophistication: How many people have sold on ebay?
Transparency – SARBOX, blogs, review sites, documentation, partners web sites, wholesalers, specialty manufacturers and assemblers
Legal
Globalization - Buy and sell anywhere
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Radio
Internet Ads
FSPs
Direct Mail
FSIs
In-Store TV
Network TV
Newspapers
DVD Trailers
High Impact Product PlacementsRetailtainment
Outdoor Signage
Coupons
Movie Theater Ads
Customer Service
Content Implants
In-Store Sampling
Mega-EventSponsorship
Cable TV
Permission-Based E-mails
21 and just starting…
Through segmentation and permission practices we match product
and service attributes to customer needs, wants and interests.
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1960 – Mass Media Matures 2004 – Mass Media, RIP
TV channels per home:
5.7
Magazine titles: 8,400
Radio stations:
4,400
TV channels per home:
82.4
Internet broadcast stations:25,000+
Radio stations:13,500
Magazine titles:
17,300
4.4 billion pages
indexed by Google
Media Proliferation 2004 vs. 1960
% of Email Identified as Spam
June, 2003
July, 2004
49%
65%Source: Brightmail.com Aug. 2004
In addition to feeling constantly time-pressured, consumers are reeling from information overload, causing most to “blank-out” on all but the most personal or relevant messages:
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TelevisionWhile watching:
RadioWhile listening:
NewspapersWhile reading:
OnlineWhile connected:
74%Read the newspaper
57%Go online
52%Watch TV
62%Watch TV
66%Go online
47%Read the newspaper
50%Listen to the radio
52%Listen to the radio
18%Watch TV
20%Read the newspaper
Source: October 2003 BIGresearch SIMM survey
Media Multi-Tasking
Even when consumers do focus on media, more than 70% use different types of media simultaneously
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Radio
Internet Ads
FSPs
Direct Mail
FSIs
In-Store TV
Network TV
Newspapers
DVD Trailers
High Impact Product PlacementsRetailtainment
Outdoor Signage
Coupons
Movie Theater Ads
Customer Service
Content Implants
In-Store Sampling
Mega-EventSponsorship
Cable TV
Permission-Based E-mails
…Start here
Not One Voice – One Set of Ears, Eyes or Experiences
The Customer is the final arbiter of business success.
But how are you supposed to manage all these moving pieces, synchronize your tactics and respond to changing market and individual customer conditions all at the same time?
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Customer Experience Framework for Marketing Automation
Customer Perspective:
• Role of Channels & Media:
When I want “X” (product) I go to “Y” (channel) with “Z” expectations. The result of my interaction = my experience.
Experience is multiple paths and path combinations based on customers needs, tastes, preferences and values (segmentation)
Company campaigns and tactics at each interaction influence customer behavior (good or bad = binary)
Time series of activities and activity combinations used to predict outcomes and prompt tactics (very good for modeling).
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Map Programs to Lifecycle by Segment/Channel
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Marketing Architecture Needs an Overhaul
Drivers:
Privacy & intimacy
Partner issues
Time poor – customers, company, partners, regulators, influencers
Legal issues
• data sharing
• fraud
• traceability
Customers more sophisticated – You must differentiate experience to earn premium margin
Technology is available to handle customer experience management (You are here!)
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Welcome to Marketing 2010
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Automation: [aw-tuh-mey-shuh n]
1. the technique, method, or system of operating or controlling a process by highly automatic means, as by electronic devices, reducing human intervention to a minimum
2. a mechanical device, operated electronically, that functions automatically, without continuous input from an operator.
3. act or process of automating
4. the state of being automated
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Automation Benefits
Not ”do more with less” but “must do more to stay relevant” Transparency
• Promotes company, partner, customer, vendor collaboration
• Visualization for company-wide customer understanding
• Legal and financial Design Fitness
• Improves speed to market
• Reduces specialty knowledge dependence
• Integrates all contributors Elegant design required Prepares platform for continuous improvement Focus resources on areas for highest return Flexible resource deployment across all channels Imbeds key functions: Design, company, legal, production, execution,
measurement rules
What’s Left?
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10 Step Automation Program
Step 1: Decompile the customer experience by lifecycle
Step 2: Categorize marketing campaigns by life cycle
Step 3: Link channels to customer lifecycle
Step 4: Apply campaigns to channels & lifecycle – test for fitness
Step 5: Expose creative & offer combinations
Step 6. Add dashboards to reporting
Step 7. Measure performance by customer
Step 8. Continuous and automatic testing
Step 9. Bolt-down low maintenance/moderate value programs
Step 10.Set value based performance alerts
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Quick Campaign Attributes Review
List 50%+
List source, segmentation, predicted & historic values, performance metrics…
Offer 20%
price, terms, delivery, premium, time limit…
Creative 10%
copy, graphics, theme, interests…
Media 20%
Sequence, channels, frequency…
How many departments’ resources support advertising and marketing processes?
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Step 1: Decompile the Customer Experience by Lifecycle
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Special Offer
Sweepstakes
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Offers by Lifecycle Objective
Corporate Standard Templates: embed strategy & objectives
Step 2: Categorize Marketing Campaigns by Lifecycle
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Campaign Components
List = Lifecycle (further refined by sub segments)
Offer: Automated uses tactic templates in program library for core programs and sub-programs (i.e. non-response, inquiry follow-up, multi-channel orchestration); automate what works
Creative – Remains Variable, set dynamically combining “offer set” + “channel” + “list”
Media - Next slide
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Step 3: Link Channels to Customer Lifecycle
Email outbound
Email inbound
Household Mail
Phone - Outbound
Phone - Inbound
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Customer Perspective: “ When I want “X” I go to “Y” channel and have “Z” expectations
Direct – (sample adapted to business)
• Personal Email – inbound, outbound
• Business email – inbound, outbound
• Household email – inbound, outbound
• Mail box
• Special Courier
• Front door - Account representative, special courier, service call
• Home Phone – inbound, outbound
• Cell Phone – inbound, outbound
• In Statement
• Packaging
Digital (anonymous)
• Search
• Web site each section:
• Banner Ad
• Search
• Multi-media phone
• Kiosk
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Sample Additional Channel Categories
Location
• In store
• Kiosk - atm Geography
• Television
• Radio
• Television
• Billboards
• Events Third party
• Partner
• Magazines
• Resellers
• Experts
• Reviewers
Community
• Word of mouth
• Clubs
• Organizations
• Social networks
• PR
• Outreach
• Charities
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Email outbound
Email inbound
Household Mail
Phone - Outbound
Phone - Inbound
Special Offer
Sweepstakes
BOGO
XXXXX
Special Offer
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Special Offer
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Special Offer
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Special Offer
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Step 4: Apply Campaigns to Channels & Lifecycle – Test for Fitness
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Step 5: Expose Creative and Offer Combinations -Interface and Design will Relieve Marketers of Complex Logic and Stress Continuous Improvement
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Step 6: Add Dashboards to Reporting for Everyone’s Use
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Good Metrics – But How do they Relate?
# of impressions
Time on page
# of promotion imp.
# of unique visitors
# of registrants
# of registrants
Registration breakage
# Information given
Response rate
Opt out rate
Breakage
Time in program
Defection rate
LTV
RFM
Defection rate
Customer balance sheet
Awareness Registration Interaction Purchase
Measures
Customer life cycle
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Direct
Location
3rd Party
Community
Not One Voice – One Set of Ears, Eyes = One Set of Experience(s)
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Direct
Location
3rd Party
Community
Change/Month
Cost per Cust.
Revenue/Cust.
15% Growth
$1.5/Cust
+3% $ Rev
$16/Cust
$130 R/Cust
+11% $ Rev
$61/Cust
$715 R/Cust
+6% $ Rev
$23/Cust
$1630 R/Cust
+14% $ Rev
$31/Cust
$1119 R/Cust
Step 7: Measure Performance by Customer
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Rate Your Competition/Set Performance Goals
Us = Blue Competitor = Red
Direct B A A C A D A C C D
Location A C A C B A B A B A
3rd Party C C F B C C C C C C
Community A D A D F B F B F B
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Campaign
Offer B Offer A Default
Continuous Results
Feed
Control
If B > A Then B = A Then
New A
Step 8: Continuous and Automatic Testing
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Step 9. Bolt-down low maintenance/moderate value programs
Email outbound
Email inbound
Household Mail
Phone - Outbound
Phone - Inbound
Campaign
Offer B Offer A Default
Continuous Results
Feed
Control
If B > A Then B = A Then
New A
Campaign
Offer B Offer A Default
Continuous Results
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If B > A Then B = A Then
New A
Campaign
Offer B Offer A Default
Continuous Results
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New A
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Continuous Results
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New A
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Step 10. Set value based performance alerts
Set performance thresholds
• Low performance – triggers alert to highlight program, campaign and down stream impact for re-allocation of resources
• High performance triggers alert to increase investment, adjust down stream resources and expectations
Design aligns objectives, resources, systems, channels to direct alerts to responsible authorities.
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TECHNOLOGYCOMMUNICATION
PROCESSKNOWLEDGE
PEOPLECEM
Customer Experience Management Starts with PEOPLE
Prospect Acquire Convert Grow Retain Re-Activate
Technology is the Enabler - Not The Solution
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Pay Attention to Technology Developments
Business Process Management Concept (BPM): Every function can be reduced to a series of components and assembled as a process. (Great concept – Integration still the issue)
Service Oriented Architecture: Fluent operations across systems based on interoperability standards
Digital Asset Management (DAM): Every interaction should be treated as asset; catalogued & monetized (think what would Google do?)
Software as a Service (SaaS): Services/Functions by the glass or from libraries)
User Created Media – what are your guide lines? Should you host, threaten, observe, buy?
Voice
Customer Experience Simulation
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Summary
Automate what works
• Visualize Customer Experience for “customer perspective”
• Categorize interactions for unified management
• Manage tactics as programs
• Put standard programs on auto pilot and test key variables at tactics level
Spend your time Innovating
• Promote customer process transparency so everyone in company “get’s it”
• Use simple Matrix to brainstorm
• Drop competitors and new markets on Matrix and see what happens
• Create excellently choreographed customer experiences that grow margins and markets
• Customers will love your company (each segment for their own reasons)
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Please contact Michael Hoffman for additional information:
Michael Hoffman, 908.350.3012