Understand Customers to Drive Growth @IBMExpOne

Understand Your
Customers
or be Left Behind
@IBMExpOne | #smartercommerce
Best practices to influence your customers buying
cycles using analytics.

Sameer Khan
Senior Product Marketing Manager
IBM Customer Analytics
@sameerkhan
Blog: Smartercommerblog.com
Blog: Keywebmetrics.com

3
 Availability. References in this presentation to IBM products, programs, or services do not imply that they will be available in all
countries in which IBM operates.
 The workshops, sessions and materials have been prepared by IBM or the session speakers and reflect their own views. They are
provided for informational purposes only, and are neither intended to, nor shall have the effect of being, legal or other guidance or
advice to any participant. While efforts were made to verify the completeness and accuracy of the information contained in this
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 All customer examples described are presented as illustrations of how those customers have used IBM products and the results
they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Nothing contained in
these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in
any specific sales, revenue growth or other results.
Acknowledgements & Disclaimers:

UNDERSTAND:
To know the meaning of (something, such
as the words that someone is saying or
a language)
To know how (something) works or happens
To know how (someone) thinks, feels,
or behaves

To know how (someone) thinks, feels,
or behaves
Your
customer
Digital
activity
Purchase
decisions
:/ ;p
Feedback

@IBMExpOne | #smartercommerce Source: https://flic.kr/p/anHyXn
What channels
your customers
interact with?

How do you
customers access
your digital
properties?
this?
this?
OR all of
these
devices?? this?

Who are your
customers?
Mark – The
Innovator : Risk
taker & affluent
buyer
Pete – The Early
adopter- quick
decision maker
who needs less
info about products
Jack – The Early
Majority – needs
social references
from friends and
family
Mary – Late
Majority – does
tons of research
on and off site

There is not “one
view” to who your
customers are and
how they are
going to behave

This makes it
difficult to
measure your
customer’s true
digital journey

Let’s look at the
problem with a
different angle…

.
We are experts
at Nano
Analytics

.
But we forget the
macro measurements

We also tend to
find insights that
don't exist
If you torture the data long enough, it will confess – Ronald Harry Coase

@IBMExpOne | #smartercommerce https://flic.kr/p/5cMBti
UX Analytics Marketing
Then… Organizational Silos
BI IT Product Sales Social

Actions Taken After Having a ‘Poor’ or ‘Very Poor’
Experience Using a Web Site or Mobile App on
their Smartphone
50%
29%
8%
8%
7%
36%
1%
Left the web site or app
Decided to use another web site or app that offered
similar products/services/content
Contacted the company directly (e.g. using contact
form, email, chat or telephone)
Shared my experience on social media (e.g. Facebook,
blog, Twitter, review sites, etc.)
Posted a comment on the company's website
None of the above
Don't use a Smartphone
Q6. Which of the following actions have you taken after having a “poor” or “very poor” experience using a
web site or mobile app on your Smartphone? (Select all that apply)
Base: Smartphone Users r (n=1,114)

And yet…our customers are becoming increasingly
digital savvy
* Econsultancy - 2013
92%
of consumers research online
and seek opinions via earned
media before a purchase
They are always connected…. have easy access to information…
high expectations…
70%
of consumers have stopped
doing business with a brand
following a poor customer
experience
and are fickle.
5 minutes
the response time users
expect from a company once
they have contacted it via
social media
84%
of smartphone users check an
app as soon as they wake up

Lots of Data, Not Enough Answers
The Departmental Analytic Approaches of the Past are Insufficient
Only 26% of
companies have a well-developed
strategy in
place for improving
customer experience.*
58% of companies
have limited or no
understanding of which
usability issues affect
conversion*
91% of companies
have limited or no
understanding of why
people leave their site
without converting*
* Econsultancy - 2013

What should
we do?
1. Customer at the front and
center of analysis

The discipline of marketing is changing
TIMELESS
Marketers have always
been responsible for knowing
the customer.
Marketers have always been
responsible for defining what to
market, and how to market.
Marketers have always
protected the brand promise.
2012
Understanding each customer
as an individual.
Creating a system of engagement
that maximizes value creation
at every touch.
Designing your culture and brand
so they are authentically one.
2014
Know each customer in context.
Innovate and scale personally
relevant and rewarding experiences.
Co-create with customers,
employees and partners.

Empowers marketing,
merchandising, commerce and
service leaders to engage customers
in context at scale
Provides solutions by business
outcomes based on proven patterns
of outperformers
Ignites innovation with expertise
from IBM and our extensive
ecosystem of partners

Understanding your customers holistically requires
putting the customer ahead of the analysis
 Future Buying Insight
‒ Predicts outcomes and behavior
using all data
‒ Integrates predictive intelligence at
the point of impact to drive optimized
interactions
‒ Reduces churn, improves CLTV
Anticipating Customer Actions
 Social Media Insights
‒ Prevailing sentiments
‒ Affinities and correlations
‒ Share of voice
‒ Relevant relationships
‒ Potential risks
Mapping Attitudes & Opinions
 Quantitative Insight
‒ Web site and mobile traffic data
‒ Customers in purchase funnel
‒ Completed transactions
‒ Conversion metrics
Measuring Results Understanding Behavior
 Qualitative Insight
‒ Surface customer struggle on digital
channels
‒ Session replays to understand actual
customer journey
‒ Identify impacted customers

What should
we do?
center of analysis
2. Integrate tools

Web Analytics & Customer Experience Analytics
complement each other
Quantitative insight by
capturing website and mobile
interaction data showing:
• Purchase funnels
• Real-time sales data
• Traffic flow through site
• Conversion benchmarks
Capture, replay and analyze
individual web and mobile
interactions:
• In-page context (including
dynamic, personalized
experiences)
• Error messages displayed
• Identify affected visitors
Digital Analytics
WHAT IS HAPPENING?
Behavioral Analytics
WHY IT IS HAPPENING?
360 CUSTOMER EXPERIENCE ANALYTICS SOLUTION
 Improve customer experience  Increase lifetime value  Reduce operational cost
 Increase loyalty and profitability

Understanding Your Customer is a key component
to IBM’s ExperienceOne portfolio

What should
we do?
center of analysis
2. Integrate tools
3. Cross-functional SMEs

Cross-Functional SMEs
Skills
Business
Analytics +
UX
UX + Web
Analytics
Designer +
Analytics
Developer +
Analytics
Social Media +
Analytics
Web
Analytics +
UX
Qualitative
Quantitative

Hard Things
Possible
Complex Things
Easier
Simple Things
Quickly
The industry’s most comprehensive portfolio

Customer Case
Study

Wehkamp.nl
98% brand awareness
72% female buyers
51% new customers < 35 years
>129 M visits
17.2M products sold
7.1 <M packages delivered
590M sales - RFS Holding
>180.000 different articles
150.000 reviews

Wehkamp.nl
1. Improve Customer Experience
2. Recover Lost Revenue
3. Solve Technical Problems
4. Reduce Fraud

Search for all
customers that
struggled from the
home page
IBM Digital Analytics
IBM Tealeaf
2
Identify impact on
conversion rates
or discover trends
& anomalies
Enables rich new ad-hoc analysis: segment by
Drill down to understand why any attribute of the experience without tags
Why are there low
conversions from
the home page?
1 IBM Digital Analytics
View Individual Customer
Experiences to understand why
2 IBM Tealeaf
IBM Digital Analytics – Tealeaf Integration:
1

Wehkamp.nl
1. Improve Customer Experience
 10% improvement in conversion for specific segment
2. Recover Lost Revenue
 40K in recovered sales
3. Solve Technical Problems
 Technical fix saved millions in cart revenue
4. Reduce Fraud
 Twice as much fraud detected and prevented

Questions?

Next Steps & Resources
Resources:
 IBM ExperienceOne:
http://ibm.com/experienceone
 IBM Customer Analytics (CA):
http://ibm.com/customer-analytics/
 IBM Tealeaf (TL) product details:
https://ibm.biz/CEM-Tealaef
 IBM Digital Analytics (DA) product details:
https://ibm.com/digitalmarketing
 IBM Social Media Analytics (SMA) product details:
https://ibm.biz/socialanalytics
 IBM Predictive Customer Intelligence (PCI) product details:
https://ibm.biz/predictiveintelligence

© IBM Corporation 2014. All Rights Reserved.
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Other product and service names might be trademarks of IBM or other companies.
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