Brendan Witcher, Principal at Forrester and Bernard Chung, SAP Hybris share best practices and the latest trends in contextual marketing and personalization. Examples shown include ASICS, Under Armour, NHL and more.

1. The Contextual
Marketing Imperative:
Rethinking Your
Personalization Strategy
May 25, 2016

2. Welcome to today’s webcast,
“The Contextual Marketing Imperative: Rethinking Your Personalization Strategy”
For audio participation, please turn up the speakers on your system.
Tweet about today’s event: @SAPhybris , @brendanwitcher , @marketingissues , #contextualizedmarketing
Guest Speaker:
Brendan Witcher
Principal Analyst
Forrester
Bernard Chung
Sr. Director,
Solution Marketing
SAP Hybris
Featuring

3. Featuring Guest Speaker
Brendan Witcher
Principal Analyst

4. Empowered customers have given
rise to a new era.

5. © 2016 Forrester Research, Inc. Reproduction Prohibited 5
Empowered customers have given rise to a new era
Age of manufacturing
Mass manufacturing
makes industrial
powerhouses
successful
• Ford
• Boeing
• GE
• RCA
Age of distribution
Global connections
and transportation
systems make
distribution key
• Wal-Mart
• Toyota
• P&G
• UPS
Age of information
Connected PCs and
supply chains mean
those that control
information flow
dominate
• Amazon
• Google
• Comcast
• Capital One
Age of the customer
Empowered buyers
demand a new level of
customer obsession
• Macy’s
• Salesforce.com
• USAA
• Amazon

6. © 2016 Forrester Research, Inc. Reproduction Prohibited 6
The past.
Information
Price Location
Tech

7. © 2016 Forrester Research, Inc. Reproduction Prohibited 7
Information
Price Location
Tech
Today.

8. © 2016 Forrester Research, Inc. Reproduction Prohibited 8
Organizations must focus on four market
imperatives to meet the needs of customers
Transform
the customer
experience
Embrace
the mobile
mind shift
Become
a digital
disruptor
Age of the
Customer
Turn big data
into business
insights

9. Your business needs to dramatically
change in the age of the customer or risk
being disrupted out of business.

10. By 2019 there will be 3.5 billion
smartphones in the world.
Source: “Global Business And Consumer Tablet Forecast Update, 2013 To 2017,” August 5, 2013, Forrester Research, Inc.

11. © 2015 Forrester Research, Inc. Reproduction Prohibited 11
Source: “Forrester Research Web-influenced Retail Sales Forecast: 2015 To 2020 (US),” September 15, 2015, Forrester Research, Inc.
Image Source: (media.pathfinder.gr/cman_img_f/9549445219531437587.jpg)
of 2016 store sales
will be web-influenced
In the US,
38%

12. © 2016 Forrester Research, Inc. Reproduction Prohibited 12S ource: Forrester R esearch Web0Influenced R etail S ales Forecast, 2015 To 2020 (US )
US retail s ales
($ billions)
$376 $415 $452 $488 $523
$1,290
$1,366
$1,445
$1,530
$1,618
$1,706
$1,710
$1,715
$1,721
$1,728
2016 2017 2018 2019 2020
Online sales
Web0influenced
offline sales
Offline sales
49% 51% 53% 54% 55%
$ billions
In 2016, 49% of all US retail sales will either
be influenced by or occur online
Source: “Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (US),” September 16, 2015, Forrester Research, Inc.
Online and web*
influenced offl ine
sales as0a0percent
of total retail sales
$3.4T

13. © 2016 Forrester Research, Inc. Reproduction Prohibited 13
Similarly, B2B buyers expect to utilize
online buying to a greater degree
Base: 930 B2B buyers at organizations in Canada, US, UK, France, and Germany
Source: A commissioned study conducted by Forrester Consulting on behalf of Accenture and hybris, August 2014
52%
of B2B buyers expect to make
half or more of their work
purchases online in 3 years

14. Each time a customer is exposed to an
improved shopping experience, their
shopping expectations are reset to a
new higher level.› Image source: Wikimedia Upload (https://upload.wikimedia.org/)

15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15
Experience is a significant factor in every
online shopper’s journey
Base: 4,485 US online adults (ages 18 and over)
Source: Forrester’s North American Technographics® Customer Life Cycle Survey 2, 2015
Image Source: https://www.flickr.com/photos/83633410@N07/7658225516
68%
“I am unlikely to return to a
website that does not
provide a satisfactory
customer experience.”

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Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015
Business leaders are prioritizing customer
experience in 2015

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Personalization is a #1 digital priority
Base 32 eBusiness And Channel Strategy Professionals
Source: Forrester’s Q1 2014 Global eBusiness And Channel Strategy Professional Online Survey

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Personalization in B2B tops the list as
well
Base: 526 B2B sellers at organizations in Canada, US, UK, France, and Germany *Base: 176 B2B sellers in the US
Source: A commissioned study conducted by Forrester Consulting on behalf of Accenture and hybris, November 2014

19. © 2016 Forrester Research, Inc. Reproduction Prohibited 19
Agenda
› The broken state of marketing and
personalization today
› Defining the four pillars of
personalization 2.0
› Recommended steps for delivering the
next wave of personalization

20. MARKETING IS BROKEN
Marketers bombard customers with
irrelevant messages. Not targeted, not
relevant
of online ads are ignored
Source: Google Display Benchmark Tool
99.94%
Email click through rate
Source: Getresponse
3.57%
All digital channel response rate
Source: DMA Response Rate Report 2015
0.62%

21. MARKETERS
Source: Forrester Research “The Contextual Marketing Imperative”, Oct, 2015
rate their personalization
efforts at “very good”
or “excellent”
companies are consistently
delivering personalization,
cross channel experience
66% 31%
CUSTOMERS
GAPS IN DELIVERING PERSONALIZATION

22. LACKING KEY CAPABILITIES
91% Of Marketers are
prioritizing customer experience
through personalization1
16% only have the capability to
capture customer intent and
respond in real time1
80% Don’t know much about
their customers2
Source 1: “The Contextual Marketing Imperative”, Forrester Oct 2015
Source 2: “Marketer Stuck on Basic Data for Personalization”, eMarketer June 2015
Source 3: “Mastering Adaptive Customer Engagement”, CMO Council 2014
Only 28% deliver a
personalized experience
across channels3

23. EVOLUTION OF PERSONALIZATION
Rely more on the pillars of individualization, rather
than segmentation

24. © 2015 Forrester Research, Inc. Reproduction Prohibited 24
of consumers have
chosen, recommended, or
paid more for a brand that
provides a personalized
service or experience.
Base: 4,549 US online adults (18+)
Source: Forrester’s North American Consumer Technographics® Brand Compass Survey, Q1 2015
Image source: (https://imagine.magento.com)
62%

25. eBusiness leaders must
help organizations prepare
for the next evolution of
personalization,
which will rely more on the
pillars of individualization
rather than segmentation.

26. © 2016 Forrester Research, Inc. Reproduction Prohibited 26
There is a significant gap between
belief and reality with
personalization
Image source: Customer Communications Insights (http://customercommunications.com/)

27. © 2016 Forrester Research, Inc. Reproduction Prohibited 27
Marketers today are prioritizing a
capability they are not able to fully deliver
on
Base: 200 advertising and marketing professionals in the US, EMEA, and APAC
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015
91%
Of marketers are prioritizing
improving customer experience
through personalization over the
next year.
16%
currently have the capability to
capture customer intent and deliver
real-time, behavior-based
marketing across all channels.

28. © 2016 Forrester Research, Inc. Reproduction Prohibited 28
Other Products
Personalization today is often driven by
single data point segmentation
Me
Product
Product
Segmentation

29. © 2016 Forrester Research, Inc. Reproduction Prohibited 29
Other Products
Personalization today is often driven by
single data point segmentation
Me
Product
Product
Segmentation
Personalization based
on segmentation fails to
deliver on its promise
with most of your
customers.

30. © 2015 Forrester Research, Inc. Reproduction Prohibited 30
11
Base: 200 advertising and marketing professionals in the US, EMEA, and APAC
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015
Image Source: https://www.youtube.com/watch?v=u-6hRFssmbc

31. © 2015 Forrester Research, Inc. Reproduction Prohibited 31
11
Base: 200 advertising and marketing professionals at organizations with 500 or more employees. US, EMEA, and APAC.
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP/hybris, June/July 2015
Image Source: https://www.youtube.com/watch?v=u-6hRFssmbc
Digital strategy is not
channel strategy –
companies must build
and deliver connected
customer experiences.

32. © 2016 Forrester Research, Inc. Reproduction Prohibited 32
D
epth
Reach
Relationship
E XPL OR E
US E
AS K
E NGAGE DIS C OVE R
BUY
Single data points are often used to
personalize the entire customer journey
Me
X
Single data point

33. © 2016 Forrester Research, Inc. Reproduction Prohibited 33
D
epth
Reach
Relationship
E XPL OR E
US E
AS K
E NGAGE DIS C OVE R
BUY
Single data points are often used to
personalize the entire customer journey
Me
X
Single data pointJust because you know
one thing about the
customer doesn’t mean
you know everything
about the customer.

34. © 2016 Forrester Research, Inc. Reproduction Prohibited 34
Organizations too quickly check the box
on delivering “personal” experiences

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Organizations too quickly check the box
on delivering “personal” experiences
It is a waste of everyone’s
time to personalize
experiences that provide
no real value to a
customer’s journey.

36. Be careful to understand and respect
personal boundaries
Source: Soul Mate of the Moment (https://soulmateofthemoment.files.wordpress.com/)

37. Source: Soul Mate of the Moment (https://soulmateofthemoment.files.wordpress.com/)
Proceed with caution: be
overt about collecting
data, but covert about
communicating what you
know about the customer.

38. © 2016 Forrester Research, Inc. Reproduction Prohibited 38
As a result, most marketers mistakenly
believe they are delivering personalization
Base: 200 advertising and marketing professionals at organizations and 200 advertising and marketing professionals in the US, EMEA, and APAC
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015
66%rate their efforts at
personalization at
“very good” or
“excellent”
31%companies are
consistently delivering
personalized, cross-
channel experiences
40%
most promotions don’t
deliver anything of
interest to them
Marketers Consumers

39. © 2016 Forrester Research, Inc. Reproduction Prohibited 39
Agenda
› The broken state of marketing and
personalization today
› Defining the four pillars of
personalization 2.0
› Recommended steps for delivering the
next wave of personalization

40. © 2016 Forrester Research, Inc. Reproduction Prohibited 40
Q1: How successful are you when you
get personalization right?
Image source: StaticFlickr (https://c1.staticflickr.com/)

41. © 2016 Forrester Research, Inc. Reproduction Prohibited 41
Q2: How successful would you be if you
got personalization right more often?
Image source: StaticFlickr (https://c1.staticflickr.com/5/4036/4420875996_a354a88130.jpg)
Q1: How successful are you when you
get personalization right?

42. But before we begin . . .
Image source: (https://extrasport.be)

43. 43© 2016 Forrester Research, Inc. Reproduction Prohibited
You cannot truly personalize experiences for
customers if you cannot recognize them
Image source: Blog Cabin (https://blog.kabinata.com)

44. Prerequisite: The ability to recognize your
customer, regardless of device or channel
Image source: Zona IT (https://zonait.tv/)

45. > Customer data =
> Effective personalization
Source: Zona IT (https://zonait.tv/file/2015/06/META.jpg)

46. © 2016 Forrester Research, Inc. Reproduction Prohibited 46
The transaction with the customer must
be their information in exchange for value
Base: 1,200 consumers in the US, EMEA, and APAC
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015
70%
of consumers are aware that
companies use personal
information to send them
targeted offers.
DataValue

47. © 2016 Forrester Research, Inc. Reproduction Prohibited 47
Customer data under a single database
improves personalization capabilities
Base: 200 advertising and marketing professionals in the US, EMEA, and APAC
Source: A commissioned study conducted by Forrester Consulting on behalf of SAP hybris, July 2015
Image Source: https://pixabay.com/en/computer-database-network-server-156948/
# of
customer
databases
Data is useful for
creating single view
of the customer
52% 70%

48. © 2015 Forrester Research, Inc. Reproduction Prohibited 48
An individualization strategy is defined by
key technology investments that enable
four unique characteristics and differentiate
it from a segmentation strategy
Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

49. 1. Customers are identified and treated as a
segment of one using rich customer profiles.
Image source: (https://http://media2.trover.com/T/53bf5905d809d82508000388/fixedw_large_4x.jpg)

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2. Customer data is assessed in real-time
and dynamically calculates intent.Image source: OnPoint DMS (http://www.onpointdms.com/)

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3. Personalized content is delivered
equally across every screen and channel.

52. 4. Connected back-end systems enable
seamless experiences across the enterprise.
Image source: WallpapersCraft (https://wallpaperscraft.com/)

53. BEST PRACTICES
EXAMPLES
Bernard Chung
Sr. Director, Solutions Marketing

54. © 2016 Forrester Research, Inc. Reproduction Prohibited 54
OBJECTIVE SOLUTIO
N
BENEFITS
• Move from retail- to consumer-centricity
• Create central golden consumer profile
across multiple channels, incl. Foot ID
• Flexible and extensible omni-channel
marketing platform
• Personalize merchandising online
stores
• Engage directly with consumers
• SAP Hybris Commerce
• SAP Hybris Marketing
• SAP CAR
CUSTOMER
CENTRIC
ENGAGEMENT
• Simplified architecture, maintenance and user adoption
• Single platform to manage data and analytics capabilities
• Guiding sales with what activities to perform at each store

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OBJECTIVE SOLUTION
BENEFITS
• Consolidate customer information into
one “Under Armour Record”
• Connecting 38 million people via digital
platform
• Provide personalized messages at the
best times
• SAP HANA
• SAP Hybris Commerce
REAL-TIME
CUSTOMER
INSIGHTS
• Launched “Connected Fitness” program to capture real-time insights
• React to customer’s needs even before they realize the need
• Improved customer experience and brand advocacy

56. © 2016 Forrester Research, Inc. Reproduction Prohibited 56
OBJECTIVE SOLUTIO
N
BENEFITS
! Engage with 30M fans in real-time
! Consolidate dozens of data sources,
from merchandise and tickets to paid
subscriptions and fantasy hockey
! Target fans based on their favorite
teams, players and sentiment
• SAP Hybris Marketing
• SAP HANA
PERSONALIZED
FAN ENGAGEMENT
• 25% increase in visitors to the site – subsequent to campaigns
• 45% higher engagement with fans
• Better personalization across different channels

57. © 2016 Forrester Research, Inc. Reproduction Prohibited 57
OBJECTIVE SOLUTIO
N
BENEFITS
• Establish end-to-end marketing process
• Create 360 golden customer profile
• Provide high-speed segmentation
• Real-time data feeds for highest level of
accuracy
• SAP Hybris Marketing
• SAP CRM powered by HANA
PUTTING THE
CUSTOMER AT
THE CENTER
• Engaging with consumers in a smart way
• Better customer experience
• Higher return on marketing investment (ROMI)

58. © 2016 Forrester Research, Inc. Reproduction Prohibited 58
It’s easy to think about personalizing
experiences in ways we’ve done before
Me

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Individualization is about creating personal
experiences across your ecosystem
Email
Call center
Text messages
In-store online access
Online content
Social engagements
Direct mail
Mobile web
Web search
Apps
Online checkout
Retargeting
Associate engagement
Chat
Virtual agents
Smart TV
PLPs
Homepage
PDPs
Packaging
eReceipts
Digital signage
Product reviews
Site search
Outbound calling
Me

60. © 2016 Forrester Research, Inc. Reproduction Prohibited 60
1. Experiences are built on each customer’s data and
used to engage them as a segment of one.
2. Engagement technologies capture, measure, and
assess dynamically and in real time.
3. Engagement is based on current behavior of the
customer in the context of past behavior.
4. Personalized experiences are seamless across
screens, channels, and — most importantly — the
digital touchpoints that exist across the enterprise.
What is individualization?

61. Evolution…not Revolution

62. . . . it is a business strategy that drives tactics
and affects every part of an organization.
Individualization is not a tactic . . .
Security
and risk
Enterprise
architecture
eCommerce
Application
design
Merchandise
planning
Marketing
Customer
insights
Customer
experienceIndividualization:
engaging customers as a
segment of one in real
time by listening,
capturing, measuring,
assessing, and
addressing intent across
every enterprise
touchpoint

63. © 2016 Forrester Research, Inc. Reproduction Prohibited 63
Agenda
› The broken state of marketing and
personalization today
› Defining the four pillars of
personalization 2.0
› Recommended steps for delivering the
next wave of personalization

64. © 2016 Forrester Research, Inc. Reproduction Prohibited 64
Recommendations

65. © 2016 Forrester Research, Inc. Reproduction Prohibited 65
Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.

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The North Face learns the “why” of
customers shopping instead of the “what”
Image source: https://www.fluid.com/news/the-north-face-ibm-and-fluid-launch-new-interactive-shopping-experience-using-artificial-intelligence-ai

67. © 2016 Forrester Research, Inc. Reproduction Prohibited 67
Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.

68. © 2015 Forrester Research, Inc. Reproduction Prohibited 68
Sephora captures in-store engagement
through digital, personal experiences

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Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design each digital touch point to both use and collect
customer data.

70. © 2015 Forrester Research, Inc. Reproduction Prohibited 70
Image source: http://www.engadget.com/2015/10/01/starbucks-app-uk-mobile-order-pay/
Starbucks app is not for payments, it is a
customer data capturing machine
Image source: http://www.engadget.com/2015/10/01/starbucks-app-uk-mobile-order-pay/

71. © 2016 Forrester Research, Inc. Reproduction Prohibited 71
Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design each digital touch point to both use and collect
customer data.
4. Focus on creating great customer experiences and
avoid crossing boundaries unnecessarily.

72. Hudson Bay captures personal information
in exchange for value without being creepy
http://www.thebay.com/webapp/wcs/stores/servlet/en/thebay/content-view/true-fit#
Can Brendan
present this slide?

73. © 2016 Forrester Research, Inc. Reproduction Prohibited 73
Recommendations
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design each digital touch point to both use and collect
customer data.
4. Focus on creating great customer experiences and
avoid crossing boundaries unnecessarily.
BONUS Leverage partnerships with digital experts.

74. © 2015 Forrester Research, Inc. Reproduction Prohibited 74
Nordstrom expedited digital transformation
by partnering with Shoes of Prey

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Personalization Maturity Checklist
1. Identify the gaps in your company’s ability to deliver
individualization.
2. Take off your eCommerce blinders and consider every
part of the customer journey.
3. Design each digital touch point to both use and collect
customer data.
4. Create exceptional customer experiences without
crossing personal boundaries unnecessarily.
5. Leverage partnerships with digital experts.

76. Personalization done right doesn’t look like
personalization…
Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png

77. Personalization done right doesn’t look like
personalization…
Image source: http://earthcarwash.com/wp-content/uploads/2015/01/Happy-Customers-resized-600.jpg.png
…it just looks like a great experience.

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For a deep dive into today’s discussion…
The Contextual
Marketing Imperative:
The Evolution Of
Personalization From
Push Messaging To One-To-
One Personal
Customer Experiences

79. THANK YOU
Bernard Chung
email: bernard.chung@sap.com
follow @MarketingIssues
Brendan Witcher
email: bwitcher@forrester.com
Follow: @BrendanWitcher
Featuring

80. Questions?

81. Thank You.
Contact us to learn more:
Visit us at hybris.com
@hybris_software