2014 Holiday Connected Consumer Series session presented by Merkle #HolidayCCS

1. 10
Ways
To
Personalize
The
Holidays
Presented by Sponsored by

2. About
Holiday
CCS
2014
ü 7 Webinars, 4 Days
ü Sessions covering Store
Ops, X-Channel, Loyalty,
Big Data & more
#HolidayCCS
ü Featuring industry
analysts and consultants
ü Free for Retail executives
ccs.retailtouchpoints.com/holiday-2014

3. Follow
The
Webcast
On
Twi=er
#HolidayCCS
#HolidayCCS
@ConnectConsumer
@RTouchPoints
@merkleCRM

4. About
Retail
TouchPoints
ü Launched in 2007
ü More than 28,000 subscribers
ü Provide executives with relevant,
insightful content
ü Free Resources such as White
Papers, E-book, Webinars,
Research and Podcasts
www.RetailTouchPoints.com
#HolidayCCS

5. #HolidayCCS
BrightTALK

6. Today’s
Panelists
#HolidayCCS
Alicia Fiorletta
Senior Editor
Retail TouchPoints
MODERATOR
Arif Damji
Senior Director of Strategy &
Development,
500friends
Zimm Zimmermann
Vice President, Personalization,
Merkle

7. 10
Ways
to
Personalize
the
Holidays
Zimm
Zimmermann
VP,
Personaliza0on
Merkle,
Inc.
© 2014 Merkle. All Rights Reserved. 7
Confidential
Arif
Damji
Senior
Director,
Strategy
&
Development
500friends,
Inc.

8. Merkle|
We
recognize
the
complexity
in
PersonalizaRon
© 2014 Merkle. All Rights Reserved. 8
News Feeds
Integrated Channel
Confidential
And Media
Miscellaneous
Social
Networks
Reviews
In-Store
Experience
Email Television
Personal
Relationships
Text,
Mobile Web
Newspaper Ads,
Articles
Website, Online
Mentions, Ads

9. Our
definiRon
of
“PersonalizaRon”
© 2014 Merkle. All Rights Reserved. 9
Confidential
LTV Segment
Print Social
DM &EM
Display
Search
TV/Video
Mobile
Site
Product
Demographics
Life Events
Call center
Meetings
Personalization manages the
conversation and experience of
optimized content / data relevant
to the customer journey.
• Integrates Channel and Media
• Explicit (customer provided) and
implicit (market derived) data
• Converses with anonymous and
known customers
• Leverages all relevant data, models
and other Personalization
Methodologies
• Obvious and Obscure
Personalization Tactics

10. From
Anonymous
to
IdenRfied:
Companies
should
target
and
personalize
the
experience
from
the
very
beginning
The Addressability Spectrum
Identification: Anonymous Partially Identified Identified
Personalization:
Knowledge: Unknown Some Knowledge Well Known
Addressability uses customer data (anonymous or identified) data to increase the
targetability and relevance of marketing impressions and experiences
© 2014 Merkle. All Rights Reserved. 10
Confidential
Channels & Media:

11. Merkle
Understands
the
Value
of
Growing
a
PersonalizaRon
Program
Channels
© 2014 Merkle. All Rights Reserved. 11
Confidential
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
Personalization requires aligning people, process,
technology and data to effectively move from
campaigns to viewer centric conversations.
Revenue Impact
Characteristics
& Tactics
• Basic "Batch" List
Targeting
• Campaign Management
• Base Segmentation
• No Optimization
• Email or Print
• Single Message for
everyone
• “Dear Harry”
Personalization
• Business Rules based
Segmentation
• Campaign Management
• A/B Testing
• Email tied to Site
Landing Page
• Email Champion
message delivered to
everyone
• Tag Personalization
• Model Defined
Segmentation
• Campaign
Management
• Multivariate
Optimization
• Email tied to Site
Landing Page
• Optimization within
Email and landing page
• Tag Personalization
• Automated
Segmentation
• Interaction Management
• Persona Driven
Interactions
• Automated Modeled
• Optimization
• Channel and Media
Integration
• Best Message / Best
Product Offer
• Personalized with
viewer / product
attributes
• Automated Self-
Learning Segmentation
• Consumer Journey
Based
• Interaction Management
• Conversion Messaging
• Automated Predictive
Optimization
• Channel and Media
Integration
• Next Best point within
the conversation /
relationship
Static
Campaign
Rules Based
Campaign
Model Based
Campaign
Integrated Viewer
Centric
Viewer Centric
Conversation
- 3% 10% 20% 60% 120%

12. Countdown
to
the
Holidays
–
Make
every
interacRon
personal
10 9 8
Use identifiable
information more
than once?
© 2014 Merkle. All Rights Reserved. 12
Confidential
source: Adobe
Localize the
experience
Personalize More
Than the Email
Content!
Hey, Joe
Welcome Back, Joe
Joe! Look at this one!
@ @
From:
HolidayHelper@retail.com
Subject:
Texas Chingding Specials!
Locations:
Hours:
Two in five say they buy more from brands that send them personalized emails

13. Countdown
to
the
Holidays
–
Create
value
from
purchase
history
7 6 5
@ @
© 2014 Merkle. All Rights Reserved. 13
Confidential
Continue the
Conversation
Create Value-Add
Emails
Sneak Peak Sales
Just For YOU!
You left some items
in your cart and we
found a few extras
you might like.
Santa’s Helper has
dropped your
package off at
Mom’s front door.
Just For You!
10% off two items
in still waiting for
you in the cart.
@
source: Adobe
One-third of con-sumers want greater personalization in their ecommerce experiences.
Nearly two-thirds of loyalists - consumers with strong brand relationships and affinities -
cited “shared values” as their core reason for deep engagement.

14. Countdown
to
the
Holidays
–
Personalizing
the
Anonymous
4 3 2
© 2014 Merkle. All Rights Reserved. 14
Confidential
Obscure
Personalization
Build a
conversation with
a survey
Change tactics for
non-responders
It’s Snowing!
Have you seen our
online specials?
@ If you had to choose one
of the following as a gift,
what would you choose?
@
JUNK
Subject: Product
Subject: Product
Subject: Product
source: Adobe
Sixty percent of shoppers like when an ecommerce site remembers that information.

15. Make
your
Holidays
count
…
From
personalizaRon
to
loyalty
© 2014 Merkle. All Rights Reserved. 15
Confidential
1
Present Related
Relevant Products Loyalty
“Hi Mary, we’re getting
in a new shipment
of your favorite
designer brand
shoes. “
@
• Increased Customer Satisfaction
• Heightened Brand Perception
• Longer Customer Lifecycles
• Optimal Customer Lifetime Value
Benefits of
Personalization:

16. © 2014 Merkle. All Rights Reserved. 16
Confidential
Poll
QuesRon
If
you
implemented
all
of
the
<ps
presented
here
today,
in
which
personaliza<on
stage
do
you
believe
you
would
fall?
Answer
the
poll
ques0on
and
3
lucky
people
will
receive
“Connected
CRM:
Implemen0ng
a
Data-­‐Driven,
Customer-­‐Centric
Business
Strategy,”
wriPen
by
Merkle
CEO,
David
Williams
q Stage
1
–
StaRc
Campaign
q Stage
2
–
Rules-­‐based
Campaign
q Stage
3
–
Model-­‐based
Campaign
q Stage
4
–
Integrated
Viewer
Centric
q Stage
5
–
Viewer-­‐centric
ConversaRon
16

17. How loyalty drives
holiday
personalization
ARIF DAMJI, Senior Director of Strategy & Development
arif@500friends.com

18. To power personalization, you need to provide
customers with a reason to identify themselves
a
Email Desktop In-Store Social Mobile

19. That’s why everyone wants a loyalty program these
days; it incentivizes customers to say who they are.

20. Loyalty then becomes the hub for all customer data…
a

21. ...and paints a vivid picture of each and every member
ONLINE
SOCIAL
IN-STORE
COMMUNICATION
• Gives new product 5 stars
• Visits e-shop every Tuesday
• Filled in preference profile
• Likes Mad Men
• Referred dress to friend
• Always looking for new styles
• Bought product last week
• Referred dress to friend
• Asked an associate about
dress availability
• Called customer service about a prior
order
• Responds to emails about ladies’ shoes
• Doesn’t respond to generic discounts

22. Dermalogica is an example of how a brand can
incentivize members to share information

23. You could take this information to personalize offers to a
member based on products mentioned by friends…
a

24. … and personalize redemption options to ensure a
higher “implied value”
a

25. Also remember, loyalty intelligence can also boost
your ROI for new customer acquisition
a
Can pay more to acquire customers with high lifetime value.
Lifetime Value Paid Search Bid
WITHOUT loyalty data $250
(average member) $1.00
WITH loyalty data $1,000
(elite member) $10.00

26. So use the holidays as an opportunity to build and
nurture loyalty relationships over the entire year
a
Summer:
Summer Skin SOS
Thanksgiving:
Thanks GIVEaway
New Year:
Resolve to Relax

27. #HolidayCCS
Q&A

28. Today’s
Panelists
#HolidayCCS
Alicia Fiorletta
Senior Editor
Retail TouchPoints
MODERATOR
Arif Damji
Senior Director of Strategy &
Development,
500friends
Zimm Zimmermann
Vice President, Personalization,
Merkle

29. Thank
You
For
Joining
Us
#HolidayCCS
The next session in this series…
Embrace
The
Mobile
Retail
Store
Of
The
Future…Now!
2PM
ET
/
11AM
PT
ccs.retailtouchpoints.com/holiday-2014