Delivering Omnichannel Insights: How Customer Analytics Drive Success

Delivering
Omnichannel:

From
The
Back-‐End
To
The

Front-‐End
And
Beyond

Presented by

Session sponsored by

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@RTouchPoints

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About
CCS
2013

ü 5 Webinars, 4 Days
ü Sessions covering Store
Ops, X-Channel, Loyalty,

ü Featuring industry
analysts and consultants

ü Free for Retail executives

Big Data & more

www.retailtouchpoints.com/special-connected-consumer-series-2013

#CCSeries13

Welcome
Webinar
A1endees

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One
Giveaway

Enter to win an Xbox One by attending at least two
sessions from this week’s webinar series!

#RetailCCS

*Visit the contest rules page for more information.

About
Retail
TouchPoints

ü Launched in 2007
ü Over 28,000 subscribers
ü To provide executives
with relevant, insightful
content across a variety
of digital medium
#RetailCCS

Panelists

Casey Shea

Larry Freed

Retail Business Development
Manager
UXC Eclipse

President & CEO
ForeSee
MODERATOR

#RetailCCS

Debbie Hauss
Editor-In-Chief
Retail TouchPoints

INNOVATING ANALYTICS:
COLLECTING & INTEGRATING THE DATA
TO SUCCEED IN OMNICHANNEL
RETAILING
Larry Freed, President and CEO, ForeSee

Larry.Freed@ForeSee.com
t: @larryfreed

Leveraging Customer Experience for Business
Success

Increase the Velocity of Growth
► 
► 
► 

Customer Retention
Customer Upsell
Acquire New Customers
►  Through marketing
►  Through word of mouth

Allocate finite resources with higher
precision, bigger impact and
minimum waste
Win more business than competitors
Innovating Analytics

@LarryFreed

The Evolving Consumer

Lower Switching Costs
Consumer in Charge


@LarryFreed

If you aren’t measuring Customer Experience…

Poor investments and missed
opportunities

• 

Disappointing channel outcomes
at the expense of overall brand

• 

You risk:

• 

Internal disconnects exposed to
your customers

The CUSTOMER EXPERIENCE
86% of leaders place
has emerged as the single most
Customer Experience as
important aspect in achieving
their TOP strategic priority.
success for companies across all
industries.
--Forrester
--Peppers and Rogers Group

59% of large companies have
ambitions to be industry
leaders in customer
experience within three
years.
--Temkin Group
@LarryFreed

STATUS QUO IS NOT ENOUGH


@LarryFreed

Tracking behavior is backward looking

Status Quo:

Next Generation:

Behavioral data

Voice of Customer


@LarryFreed

Listening to feedback alone can be misleading
► 
► 

► 

Social
Social media chatter and feedback
feedback companies receive
directly via e-mails or phone
calls is focused on the ends of
the spectrum

chasing ‘squeaky wheels’ &
ignoring the ‘silent majority’

Feedback direct to the
company and via Social is
dominated by extreme
opinions

► 

This results in chasing the
squeaky wheel and
ignoring the silent majority

Status Quo:

Next Generation:

Behavioral data
Opt-in Feedback

Voice of Customer
VOC Measurement


@LarryFreed

Siloed metrics provide limited insight

Traditional
Metrics are
Single Channel
only
Consumers are
multi-channel,
multi-device

Status Quo:

Next Generation:

Behavioral data
Opt-in Feedback
Siloed, Single Channel

Voice of Customer
VOC Measurement
Integrated, Multichannel @LarryFreed

THE NEXT GENERATION CUSTOMER
EXPERIENCE ANALYTICS

►  Multi-channel

Integration
Innovation

@LarryFreed

The Multi-Channel Customer Experience

m.
m.
app
site

48%
Multi-Channel

52%
Single Channel
Data Source: ForeSee Q3 Top Brands Research

@LarryFreed


m.
app

48%

m.
site

Multi-Channel

Data Source: ForeSee Q3 Top Brands Research

@LarryFreed


Eric Feinberg
Check it out! Just got a great deal on a Samsung 46 in LED
Smart TV at Target! Just in time to enjoy #BowlGames
Retweeted by Sarah Allen-Short


@LarryFreed



@LarryFreed

False Positives, False Negatives
Behavioral
►  Natural

Web Search

►  Cart Abandonment

Reality
►  Successful

Social Media Recommendation
►  Successful

Research Experience
►  Mobile

Site
Abandonment

►  Successful

Mobile Companion Experience

SUCCESSFUL MULTI-CHANNEL, MULTI-DEVICE EXPERIENCE

@LarryFreed


Multi-channel
►  Integration
Innovation

@LarryFreed

Next Generation
Customer Experience Analytics: Integration

Integrated Metrics
= Better Metrics
= Better Business Decisions
= Better Customer Experience
= Better Corporate Performance


@LarryFreed


Multi-channel
Integration
►  Innovation

@LarryFreed

Innovation:
Introducing the
Word of Mouth Index
The Next Generation of Net Promoter Score (NPS)


@LarryFreed

Success

► 
► 
► 

Customer Retention
Customer Upsell


@LarryFreed

Success

► 
► 
► 

Customer Retention
Customer Upsell
à Net Promoter Score (NPS)


@LarryFreed

What is NPS
How likely are you to recommend us to a friend or colleague?

0

1

2

3

Detractors

4

5

6

7

8

Passives

9

10

Promoters

NPS = % Promoters - % Detractors

@LarryFreed

NPS Positives

►  The

importance of the customer

►  The

power of positive word of mouth

►  Easy

and simple for company leaders to
understand

►  Rallying

the entire organization around the
importance of the customer …low hanging fruit


@LarryFreed

NPS Fundamentally Flawed:
Assumes Non-recommenders = Detractors

0

1

2

3

X

Detractors


4

5

6

7

8

Passives

9

10

Promoters

@LarryFreed

Word of Mouth Index (WoMI)

Likelihood to
recommend

Likelihood to
discourage

Positive Word of Mouth
True Promoters®

Negative Word of Mouth
True Detractors®


@LarryFreed

True
Promoters®

NPS =

Recommend %
of 9s and 10s

Discourage %
of 9s and 10s

Promoters

WoMI =

True
Detractors®

Detractors

Recommend %
of 9s and 10s

Recommend %
of 1s - 6s

@LarryFreed

Implemented new question:

“How likely are you to discourage
someone from doing business
with this company?”
November 2011 to May 2013

1,600,000
275
427

Harris Poll:
Confidence in Congress
Stays at Lowest Point in
Almost 50 years

2,060
April 9-17, 2012
Pew Poll:
Big Generation Gap at the
Polls is Echoed in Attitudes
on Budget Tradeoffs

2,511
Nov. 28 to Dec. 5, 2012
Gallup Poll:
Fewer Americans Now View
Their Income Taxes as Fair

1,005
April 4-7, 2013

@LarryFreed

NPS Overstates Detractors

On average, NPS
overstates detractors:

780%
Data Source: ForeSee Q3 Research

@LarryFreed

NPS Overstates Detractors
Computers/Electronics Manufacturers
Consumer Packaged Goods
Retail

Financial Services

1143%
810%

B2B

759%
561%

Automotive

479%

309%


@LarryFreed

WoMI True Detractors vs NPS Detractors
overstatement

overstatement

900%

2100%

NPS-Defined
Detractors:

NPS-Defined

10%

WoMI-Defined
True Detractors:

Detractors:

22%

WoMI-Defined

1%

True Detractors:

1%

overstatement

overstatement

900%

467%

NPS-Defined
Detractors:

NPS-Defined

10%

WoMI-Defined
True Detractors:

Detractors:

17%

WoMI-Defined

1%

True Detractors:

3%


@LarryFreed

WoMI + NPS = Better Metrics


@LarryFreed

Next Generation
Customer Experience Analytics

Utilizing multi-channel predictive analytics
in the measurement and analysis
of the customer experience
radically changing the way
critical investments and decisions
are made, leading to a
competitive advantage
Founded in 2001, a heritage of technology, innovation and scientific rigor

@LarryFreed

ForeSee cx360 Platform

Voice of Customer
Measurement

Predictive
Analytics
Prioritization
Visualization

COMMUNICATION

VISIBILITY

ForeSee Customer Experience Analytics Platform

Benchmarking
Integration


@LarryFreed

Some of the Companies We Measure
Over 700 customers ● Over 1000 active measures
Over 95 million surveys collected ● Over 80 industry benchmarks

1/2 of the Fortune 100 ● 1/2 of the Top 100 Retailers
6 of the Top 10 Banks ● Over 90% Customer Renewal

@LarryFreed

Takeaways
1. 

You cannot manage what you
do not measure

2. 

If you’re not measuring the
customer experience you’re
operating in the dark

3. 

Measure from the customers’
perspective – not just the
organization’s

4. 

Consumers are multi-channel,
your measurements and
analytics need to be

5. 

Keep innovating and moving
forward in order to stay ahead


@LarryFreed

Larry Freed
President & CEO
ForeSee

(734) 205-2555
Larry.Freed@foresee.com
Twitter: @larryfreed
www.foresee.com

Unless conventional merchants adopt an entirely new
perspective – one that allows them to integrate disparate
channels into a single, seamless omnichannel experience –
they are likely to be swept away.
Successful companies will engage customers through
omnichannel retailing: a mashup of digital and physical
experiences.
Harvard Business Review, Dec. 2012

Why Microsoft in Retail?
Greater than the sum of its parts
Enabling Retailers to
deliver the complete
shopping experience

Realize the
future of
retailing
today

The Complete Shopping Experience
Personal

Seamless

Differentiated

from mass
merchandise to
personal merchandise

from the company’s
channel to my channel

from standard
to standout

Connected without
compromise

Personally Relevant

Agile &
Opportunistic

What they want –
how, when, and
where they choose

Increase employee
productivity &
effectiveness

Anticipate Trends &
Capitalize on
Opportunities

Microsoft Dynamics AX for Retail
Consumers

Corporate Accounts

Kiosk
Catalog
Stores

Web
Mobile

Omni-channel Retail

Brick and Mortar, eCommerce (incl. Storefront, 3P marketplaces, search and social) and mCommerce

Store

Social

Front

3P MP

( FIS / FAST)

Searc
h

MPI / Sites

Store Systems / POS

Store Server

eCommerce

Dynamics for Retail

Customer
Phone

Product
Catalog /
Omni Channel
Enrichment

Merchandizing /
Assortments /
Pricing
Promotions /
Targeting

Web Service Interface

Retail Server

Customer
Loyalty
Management

Supply Chain
Management
Warehousing
Logistics

Core
Operations
BI / Data Mining

Intro to UXC Eclipse
Quick
Facts

Revenue

}

•  Established
in
1986

•  Leading
AX
for
Retail
Microso
partner

}

•  1
of
the
top
3
Microso
Dynamics
partners
globally

•  Inner
Circle
member
for
Microso
Dynamics
(Top
1%)

•  Over
400
staff
supporMng
1,400
global
customers

•  Publicly
owned,
UXC
Limited

}

Service
is
the
differen.ator
that
sets
us

apart.
We
offer
our
customers
genuine

}

respect
and
invest
.me
in
understanding

their
business
goals
and
strategies.

David
Weiner

CEO,
UXC
Eclipse
North
America

FY
02

FY
13

Service
and
Support

•  Customer
service
focus
is
to
exceed

expectaMons

•  “Customer
for
life”
philosophy

•  24
x
7
x
365
support
from
dedicated
team

•  Focused
Account
Management
team

•  97%
customer
retenMon
rate

Howard Tafler, Chief Financial Officer, DAVIDsTEA speaks about the decision to choose
Microsoft Dynamics AX 2012 for Retail:

“We needed an efficient end-to-end system that could help us better
integrate our retail processes, as well as provide accurate, store level
data to facilitate better decision-making. The solution also had to offer
sustainability and scalability to accommodate our growth.”
Howard Tafler
Chief Financial Officer – DAVIDsTEA

Read the full DAVIDsTEA case study at www.uxceclipse.com

Retail Customer Case Study
DAVIDsTEA
is
a
US
and
Canada
mulM-‐channel
retail
organizaMon
focused
on
the
sale
of
tea

and
tea
related
products.

Since
their
opening
in
2008,
the
business
has
expanded
to
over
80

stores,
and
they
plan
to
end
the
year
2012
with
upwards
of
140
stores.

Tea
and
accessories

are
available
in
store
locaMons
across
Canada,
online
and

select
locaMons
in
the
United

States.

Customer
Business Challenge
• 
• 
• 

Rapid growth in
multiple countries
No single source of the
truth
Inability to forecast
demands, product and
people

Customer
Results/Benefits

Solution

• 
• 
• 
• 

Microsoft Dynamics AX
for Retail
Integrated OmniChannel E-Commerce
Advanced Demand and
Allocation Planning
Advanced Workforce
Management

• 
• 
• 
• 

Ability to rapidly expand
into new markets
Increase customer
visibility
Ability to forecast and
budget enterprise needs
Faster growth

Kick-off NRF in style by
attending the Opening
Night Reception at the
Marriott Marquis Times
Square

More Modern
More Mobile
More Global

Sunday Jan 12
5:30 – 7:30 pm

Visit Booth # 2703 to
learn more

BIG !deas Session:
Become a Dynamic
Retailer and Make Sure
You’re Ready for What’s
Next

Follow all the action live on
Twitter and Facebook

Monday Jan 13

@msretail
FB.com/MicrosoftforRetail

3:15 – 4:15 pm

Help
us
Support
RetailROI
at
NRF
this
year…

Schedule
a
meeDng
with
UXC
Eclipse
at
NRF
and
aIend

it,
and
UXC
Eclipse
will
donate
$25
to
RetailROI.

The
Purpose
of
the
Retail
Orphan
IniMaMve
(RetailROI)
is

to
raise
awareness
and
provide
real
soluMons
for
the

more
than
400
million
vulnerable
children
worldwide.

Visit
www.retailroi.org
for
more
informaMon.

To
schedule
a
meeMng,
send
an
email
to

araines@uxceclipse.com
with
the
subject
line
NRF

MeeMng.

#RetailCCS

Q
&
A
//
Panelists

Casey Shea

Larry Freed

Retail Business Development
Manager
UXC Eclipse

President & CEO
ForeSee
MODERATOR

#RetailCCS

Debbie Hauss
Editor-In-Chief
Retail TouchPoints

Xbox
One
Giveaway

Enter to win an Xbox One by attending at least two sessions
(live or on-demand) from this week’s webinar series!

#RetailCCS

*Visit the contest rules page for more information.

Thank
You

For
Joining
Us

This
marks
the
end
of
this
Connected
Consumer
Series!

Download
and
view
all

on-‐demand
sessions
at:

www.retailtouchpoints.com/special-connected-consumer-series-2013

#CCSeries13

Delivering Omnichannel Insights: How Customer Analytics Drive Success

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