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The Future of Customer Engagement

               Rusty Warner, Vice President
                         Product Marketing
                                    Alterian
The Future of Customer Engagement

           Where Is Marketing Headed?
               How Do We Get There?
                Who Is Doing it Right?
     What Happens if You Get it Wrong?
       How Do You Measure Success?
Where Is Marketing Headed?



• Social Changes & Customer Demands are Driving Marketing
  ̶   Requirements: Customer Understanding at an Individual Level
  ̶   Goals: Right Customer, Right Message, Right Channel, Right Time
  ̶   Risks: Fickle Nature of Brand Loyalty & Competitive Disruption
  ̶   Trends: Customer Desire for Interaction & Collaboration



                   Traditional Marketers
                      must become
                  Engagement Managers
Where Is Marketing Headed?



       Customer Engagement Management
                Relationship




                      Marketing
How Do We Get There?



• What We All Want To Do:
  –   Derive Maximum Value from Customer Engagement
  –   Deliver High-Velocity Campaigns using Data Driven Insight
  –   Make Marketing Resources More Effective
  –   Increase Response Rates and Drive Revenue Objectives
• How Do We Do It?
  – Build an Enterprise View of Customer Information
       • Merge Deep History with Current Behaviour
       • Single, Consistent View versus Single Database
  – Utilise Customer Intelligence Analytics
       • Data Exploration for Personalisation
       • Predictive Modelling for Scoring and Propensity
  – Leverage Best Practices and Apply Governance
  – Synchronise Efforts with Business Operations
Who Is Doing It Right?



• Organisations who...
   –   Value Engagement versus Processes or Management
   –   Understand the Relationship between On-Line and Off-Line
   –   Treat Customers Consistently across Channels
   –   Measure the Business Impact of Marketing Activities

• Best Practices
Customer Retention & Development



• Challenges
   – Pressure on Marketing Budget Allocation
   – Rising Customer Recruitment Costs
   – Increasing Channel Complexity
                                               “Both marketing productivity
• Objectives                                        and efficiency have
                                                increased. We look forward
   – “Put the Customer First”                  to creating further innovative
   – Execute based on Customer Insight               customer insight
                                                    programmes… and
   – Achieve Significant ROI Improvements              continuing to
                                                      maximise ROI.”
• Results                                          - Head of Customer Knowledge &
                                                                         Planning
   – Reduced Direct Marketing Costs by 30%
   – Doubled the Annual Number of Cross-Sell Customers
   – Increased Average Product Holdings per Customer by 15%
Customer Profiles and Preferences



• Challenges
   – “One Size Fits All” Direct Marketing
   – Limited Customer Analysis
   – Disparate Data Silos
• Objectives
                                             “With the implementation of
   – Increase Customer Intelligence          the database, Eurostar have
                                             been able to create targeted
   – Improve Relationship-Building            communications based on
   – Support Operational Execution              traveller behaviour and
                                            profiles. The results have been
• Results                                     far beyond expectations.”

   – Open-Rates Increased by 100%
                                                    - Customer Database Manager


   – Click-Throughs Increased by 50%
   – Average Revenue Increased by 400%
One-to-One Relationships



• Challenges
   – Selling to Companies BUT Marketing to Individuals
   – Millions of Contacts from Various Sources
   – Limited Customer View via Indirect Channel
• Objectives
   – Identify the Right Contacts for Campaigns
                                                      “Tremendous potential
   – Develop a Single Global View for Local Use           for gaining new
                                                        insights has been
   – Re-Activate Dormant Contacts                     unleashed…Today we
• Results                                              can perform analysis
                                                      tasks around 30 times
   – Consolidated Database                             quicker than before.”
      • 20M+ Marketing & 18M+ Support Contacts           - Global Database Marketing
                                                                            Manager
      • 100M+ Dun & Bradstreet Companies
      • 25M+ Survey Responses
   – Contact and Purchase History for Up-Sell and Cross-Sell
   – Predictive Modelling for Propensity and Potential Value
Email Integration




              •   Improve Customer Engagement for Loyalty Programme
              •   Treat Individuals as Unique Users for Email & Web
              •   40% Increase in Click-Through Rates
              •   540% Rise in Loyalty Point Redemption
              •   30% Overall Return on Investment



 • Emails with Dynamic Content for Individuals
 • Complex Analytics for Massive Film Library
 • Suggestions based on Selections, Similarities, etc.
Web Integration




 • Analytics on .com Site for Targeted Campaigns
 • Loyalty Card Feeds from Every Machine Played
 • Pan-European Communications and Promotions




                  • 5+ Million Web Visitors Daily
                  • “Related Item” Suggestions on 60+ Million Artefacts
                  • Accessibility for British Sign Language & Audio
Social Media Integration




            • Starbucks
               – Analyse Purchase Decisions
               – Understand Consumer Behaviour
               – Determine Impact of Bottled Drinks




• Mountain Dew
   – Support Launch of New Voltage Flavour
   – Increase Awareness and Drive Trials
   – Convince Web Influencers to Advertise
What Happens If You Get It Wrong?



Examples from Personal Experiences…
(Names Hidden to Protect the Guilty!!!)

1. When You Can’t See the Forest for the Trees
   – Marketing Not Aligned with Customer Demands
   – Processes & Metrics Matter More than Customers
2. When You Rob Peter to Pay Paul
   – Marketing Not Aligned across Business Units
   – Customers Defect while You Figure Out Who They Are
3. When You’re Your Own Worst Enemy
   – Marketing Not Aligned with Operations
   – Customers Engaged, but You Can’t Service their Needs
How Do You Measure Success?




• Define Agreed, Quantifiable Metrics
   – Reduction in Spend per Channel
   – Campaign Uplift for Open, Click-Through, etc.
   – Revenue Results Directly Impacted
• Apply Business Performance Benchmarks
   – Business Problem Solved
   – New Business Opportunity Realised
   – Tangible Advantage over Competitors
• Don’t Forget Internal Goals and Objectives
   – Users Satisfied and Asking for Additional Functionality
   – Project Delivered on Time and on Budget
   – Created an Agent of Change within the Organisation
The Future of Customer Engagement




                    Rusty Warner, Vice President
                              Product Marketing
                                        Alterian
                      rusty.warner@alterian.com
info@alterian.com

             www.alterian.com

             www.EngagingTimes.com
Stay
Connected…   www.youtube.com/user/EngagingTimesLive

             @Alterian

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The Future of Customer Engagement - Rusty Warner

  • 1. The Future of Customer Engagement Rusty Warner, Vice President Product Marketing Alterian
  • 2. The Future of Customer Engagement Where Is Marketing Headed? How Do We Get There? Who Is Doing it Right? What Happens if You Get it Wrong? How Do You Measure Success?
  • 3. Where Is Marketing Headed? • Social Changes & Customer Demands are Driving Marketing ̶ Requirements: Customer Understanding at an Individual Level ̶ Goals: Right Customer, Right Message, Right Channel, Right Time ̶ Risks: Fickle Nature of Brand Loyalty & Competitive Disruption ̶ Trends: Customer Desire for Interaction & Collaboration Traditional Marketers must become Engagement Managers
  • 4. Where Is Marketing Headed? Customer Engagement Management Relationship Marketing
  • 5. How Do We Get There? • What We All Want To Do: – Derive Maximum Value from Customer Engagement – Deliver High-Velocity Campaigns using Data Driven Insight – Make Marketing Resources More Effective – Increase Response Rates and Drive Revenue Objectives • How Do We Do It? – Build an Enterprise View of Customer Information • Merge Deep History with Current Behaviour • Single, Consistent View versus Single Database – Utilise Customer Intelligence Analytics • Data Exploration for Personalisation • Predictive Modelling for Scoring and Propensity – Leverage Best Practices and Apply Governance – Synchronise Efforts with Business Operations
  • 6. Who Is Doing It Right? • Organisations who... – Value Engagement versus Processes or Management – Understand the Relationship between On-Line and Off-Line – Treat Customers Consistently across Channels – Measure the Business Impact of Marketing Activities • Best Practices
  • 7. Customer Retention & Development • Challenges – Pressure on Marketing Budget Allocation – Rising Customer Recruitment Costs – Increasing Channel Complexity “Both marketing productivity • Objectives and efficiency have increased. We look forward – “Put the Customer First” to creating further innovative – Execute based on Customer Insight customer insight programmes… and – Achieve Significant ROI Improvements continuing to maximise ROI.” • Results - Head of Customer Knowledge & Planning – Reduced Direct Marketing Costs by 30% – Doubled the Annual Number of Cross-Sell Customers – Increased Average Product Holdings per Customer by 15%
  • 8. Customer Profiles and Preferences • Challenges – “One Size Fits All” Direct Marketing – Limited Customer Analysis – Disparate Data Silos • Objectives “With the implementation of – Increase Customer Intelligence the database, Eurostar have been able to create targeted – Improve Relationship-Building communications based on – Support Operational Execution traveller behaviour and profiles. The results have been • Results far beyond expectations.” – Open-Rates Increased by 100% - Customer Database Manager – Click-Throughs Increased by 50% – Average Revenue Increased by 400%
  • 9. One-to-One Relationships • Challenges – Selling to Companies BUT Marketing to Individuals – Millions of Contacts from Various Sources – Limited Customer View via Indirect Channel • Objectives – Identify the Right Contacts for Campaigns “Tremendous potential – Develop a Single Global View for Local Use for gaining new insights has been – Re-Activate Dormant Contacts unleashed…Today we • Results can perform analysis tasks around 30 times – Consolidated Database quicker than before.” • 20M+ Marketing & 18M+ Support Contacts - Global Database Marketing Manager • 100M+ Dun & Bradstreet Companies • 25M+ Survey Responses – Contact and Purchase History for Up-Sell and Cross-Sell – Predictive Modelling for Propensity and Potential Value
  • 10. Email Integration • Improve Customer Engagement for Loyalty Programme • Treat Individuals as Unique Users for Email & Web • 40% Increase in Click-Through Rates • 540% Rise in Loyalty Point Redemption • 30% Overall Return on Investment • Emails with Dynamic Content for Individuals • Complex Analytics for Massive Film Library • Suggestions based on Selections, Similarities, etc.
  • 11. Web Integration • Analytics on .com Site for Targeted Campaigns • Loyalty Card Feeds from Every Machine Played • Pan-European Communications and Promotions • 5+ Million Web Visitors Daily • “Related Item” Suggestions on 60+ Million Artefacts • Accessibility for British Sign Language & Audio
  • 12. Social Media Integration • Starbucks – Analyse Purchase Decisions – Understand Consumer Behaviour – Determine Impact of Bottled Drinks • Mountain Dew – Support Launch of New Voltage Flavour – Increase Awareness and Drive Trials – Convince Web Influencers to Advertise
  • 13. What Happens If You Get It Wrong? Examples from Personal Experiences… (Names Hidden to Protect the Guilty!!!) 1. When You Can’t See the Forest for the Trees – Marketing Not Aligned with Customer Demands – Processes & Metrics Matter More than Customers 2. When You Rob Peter to Pay Paul – Marketing Not Aligned across Business Units – Customers Defect while You Figure Out Who They Are 3. When You’re Your Own Worst Enemy – Marketing Not Aligned with Operations – Customers Engaged, but You Can’t Service their Needs
  • 14. How Do You Measure Success? • Define Agreed, Quantifiable Metrics – Reduction in Spend per Channel – Campaign Uplift for Open, Click-Through, etc. – Revenue Results Directly Impacted • Apply Business Performance Benchmarks – Business Problem Solved – New Business Opportunity Realised – Tangible Advantage over Competitors • Don’t Forget Internal Goals and Objectives – Users Satisfied and Asking for Additional Functionality – Project Delivered on Time and on Budget – Created an Agent of Change within the Organisation
  • 15. The Future of Customer Engagement Rusty Warner, Vice President Product Marketing Alterian rusty.warner@alterian.com
  • 16. info@alterian.com www.alterian.com www.EngagingTimes.com Stay Connected… www.youtube.com/user/EngagingTimesLive @Alterian www.slideshare.net/Alterian LinkedIn Groups: Alterian www.facebook.com/AlterianFB