If you are like most marketers, you are facing an enormous headwind: you need to increase marketing returns at a time when conventional marketing techniques are increasingly ineffective and real-time dialogue is becoming a norm.

1. IBM Software Enterprise Marketing Management
Thought Leadership White Paper
Oh behave! How behavioral analytics
fuels more personalized marketing

2. 2 Oh behave! How behavioral analytics fuels more personalized marketing
If you are like most marketers, you are facing an enormous Behavioral web analytics: A gold mine for increasing
headwind: you need to increase marketing returns at a time marketing value
when conventional marketing techniques are increasingly Behavioral web analytics isn’t mere theory: many companies are
ineffective and real-time dialogue is becoming a norm. already applying it to improve their web marketing performance
and profitability. Amazon, who has long leveraged web
To improve returns, many marketers are focusing on optimizing behavioral data to make product recommendations, is one of the
their websites and social media properties to make them more best-known examples, but many other firms are also effectively
dynamic and relevant to their audience. Doing that requires leveraging behavioral web data to personalize interactions.
creating dynamic content that supports the interests and
preferences of their various visitor segments. For maximum • A leading online marketplace provides personalized suggestions
impact and return, marketers must go beyond segment marketing of available items that appeal to traders’ interests based on their
and click reporting and create a personal dialogue with each recent searches, bids, and purchases. This feature has led to
visitor. Behavioral web analytics can fuel this personalization substantial increases in click-through rates.
process by providing specific insights about each segment and • A leading online bank uses advanced behavioral web analytics to
individual. Uncover the gold mine that lies within behavioral data, identify customers that abandon an application process and
identify the specific nuggets to mine, and learn how to leverage then deliver a multi wave campaign that recaptures and
behavior data to increase marketing returns at every stage of the converts a significant number of leads. The strategy leverages
customer life cycle, both online and offline. event triggers that start a communication stream when the
online application is abandoned. It draws upon email, direct
Two uses of web analytics: Aggregate mail, and even calls from relationship managers. The program
has not only boosted conversion rates, but by eliminating
and individual-level insights
communication overlap and reducing contact fatigue, it has also
Conventionally, web marketers use analytics at an aggregate
enhanced customer loyalty.
level, reporting on the performance of their websites and
• A leading auto manufacturer has improved the way it prioritizes
online advertising, so they can adjust their efforts to improve
leads that originate on its websites. To prioritize leads more
the results. Analytics are a worthwhile application that can
effectively, the auto manufacturer profiles each prospect’s
deliver excellent return on investment (ROI).
interests based on site behavior and scores the prospect’s
However, if marketers do not also leverage web analytics as propensity for making a purchase. Leads marked as “hot” are
arch source of behavioral insights on visitor segments and twice as likely to close as “average” leads, and six times likelier
individual prospects and customers, they are squandering a to close than “colder” leads. Using this data, dealers can now
huge opportunity to improve marketing ROI. Web analytics can focus on their best opportunities to drive sales needed most.
play a far more direct role in engaging customers, improving
customer experiences, and increasing sales, by enabling companies
to deeply personalize their communications and interactions.

3. IBM Software 3
These insights can be transformed into targeted marketing
initiatives at every stage of the customer life cycle (see Figure 2).
Figure 1: A web analytics funnel report helps identify individuals you can
target with relevant marketing offers.
Identifying what nuggets to mine
Behavioral analysis can reveal actionable insights into
segments, individual prospects, and customers. For example:
• Individual personal preferences and current product or
content interests
Figure 2: Mapping life cycle stages and business goals to initiatives that can
• Where individuals stand within the buying cycle or be driven by behavioral analysis
customer life cycle
• When they are most susceptible to being persuaded, The Typical customer and visitor-level behavioral web
converted, or up-sold analytics triggers table on page 4 lists typical website session
• When timely action must be taken to retain them events to watch for in various industries.
• Which offers are most relevant and persuasive
• How much each individual is willing to spend

4. 4 Oh behave! How behavioral analytics fuels more personalized marketing
For example, a fashion retailer can use behavioral web analytics outbound communications or across inbound channels. For
to profile customers based on the price categories and clothing example, when a customer phones the call center to inquire
styles they are browsing. Marketers can then use these insights about a shipment, the company’s IVR or CRM systems could
to personalize emails with items that match these price levels suggest promotions that fit the same profile.
and styles. Similarly, you can leverage these insights in other
Typical customer and visitor-level behavioral web analytics triggers (by industry)
Retail Finance Telco Publishing B2B
Onsite behavioral targeting Product categories Products and Service details Content categories Products and
or features studied, educational content studied, example: preferred, example: educational content
example: clothes studied, example: regional coverage type of sports studied, example:
colors, styles, and IRA calculators maps web pages covering
price levels selected technical details
on a fashion retailer’s versus business
site benefits
Remarketing Contents of Abandoned online Cross-sell offers Subscription options When online lead
abandoned shopping forms for quotes or received by email or studied but not form is abandoned,
carts opening accounts on the site, yet not purchased capture company
clicked name through IP
address, and target
by mail, phone sales,
or both
On-boarding Bad review rating Missing or failed Same as Finance. After registration, Unsuccessful
given after completed events, example: Also, missing visitors don’t return searches in the self-
product purchase; or no or unsuccessful click-throughs from to site, or read few help knowledge base
failed site searches online registration, or marketing emails content categories or keywords used that
for accessories failed site searches indicate issues with
performed using the purchased
product
Cross- and up-sell Products viewed Account options Available service Articles read in a Products studied that
frequently together studied but not yet features studied on category that the customer does not
owned the site, example: reader doesn’t yet own
email access normally use
Retention marketing Fewer product Repeated reviews of Review of contract Fewer content Reduced frequency
categories viewed, loan payoff amounts duration period, or categories read, and/ of self-service logins
less frequent visits, click-throughs from or less frequent visits to the customer
or both sites that compare support area, or
competitors searches performed
in knowledge base
with no results found

5. IBM Software 5
Figure 3: Registered customers and their product and spending preferences Figure 4: Five steps to behavioral analytics
as exhibited on the website
Stage 1: Site analysis (Reporting)
Five steps to Personalized Marketing At most organizations, web analytics begins as a site analysis
success with behavioral analytics solution, intended to monitor site health, report on-site activity,
Many organizations, however, struggle to capture, organize, and prove ROI for the online channel. In this step, web analytics
and effectively leverage behavioral web data to drive marketing answers basic questions such as:
programs. IBM has outlined a five-step path to help marketers
progressively mature their capabilities and expand the use of web • How many visitors are coming to my site?
analytics from aggregate-level reporting to leveraging behavioral • How are visitors using it?
insights to fuel Personalized Marketing. • How are visitors finding it?

6. 6 Oh behave! How behavioral analytics fuels more personalized marketing
Stage 2: Site and advertising optimization • What content or promotional offers are best suited for
To begin generating substantial business value, web analytics must targeting each segment on the site?
evolve at least to Stage 2: site and advertising optimization. In this • How can I begin leveraging what I learn on my site to
stage, web analysts seek to identify bottlenecks; for example, web improve my other communications?
pages that aren’t performing well. Marketers experiment to
identify and assess opportunities for overcoming these bottlenecks Stage 4: Personalized Marketing (Online only)
and increase returns. Marketers are asking: While marketers who move to Stage 3 are laying crucial ground-
work for personalized, customer-centric marketing, they typically
• How can I improve our website’s structure and content to find ROI temporarily flattening out. There are limits to the
increase conversion rates? amount of value generated through segmentation. Reigniting
• How can I reallocate online advertising spend to attract improvements in business value requires innovation — and
more profitable customers? personalization.
Stage 3: Segment targeting In Stage 4, marketers refine targeting beyond the group level to
In Stage 3, marketers realize that there is no such thing as the individual visitor level. Marketers use individualized
an “optimized page.” That’s because different groups of visitors behavioral analysis to fuel Personalized Marketing; such as, to
come to the same page with different goals in mind. Therefore, in build a dialogue based on each visitor’s past and current behavior.
Stage 3, marketers use behavioral analysis to define their most To achieve this goal, marketers ask and answer questions such as:
valuable customer segments and identify the dynamic content
that’s most effective with each segment. For anonymous website • What is the most effective website, email, or SMS content
visitors, this content may be delivered on the site through for each individual based on prior site behavior?
behavioral targeting. Registered online visitors can also be • Should I reach out online to an individual customer right
targeted via personalized email or SMS. Questions that can be now with messages aimed at onboarding, cross-selling,
answered include: or retention?
• What are the most valuable visitor segments for my business,
grouped by common click behavior along with other
information I possess about them?

7. IBM Software 7
Figure 5: Using behavioral insights from web analytics to drive Personalized Marketing across offline and online channels
Stage 5: Personalized Marketing (Cross-channel) Whether interactions are outbound or inbound, behavioral
Finally, in Stage 5, marketers extend the Personalized Marketing analysis can answer questions like:
dialogue with identified cross-channel customers to include
offline as well as online channels. Supported by behavioral web • What is the best way for me to continue my ongoing sales
analytics, offline communications — for example, promotional dialogue with this individual?
offers delivered through a call center IVR system — build on all • Based on what I know about this individual’s prior
past and current customer behavior. In addition, insights from interactions and transactions across all channels, what is the
offline customer transactions are used in determining the web or best offer or communication I can make next?
email content deemed most relevant to each customer. • When do I make that offer?

8. 8 Oh behave! How behavioral analytics fuels more personalized marketing
Climb the five-step growth path “Click data is too much of a ‘fire hose’: you can’t make sense of
So how do you move up the behavioral analytics maturity model, every click.” Successful marketers have learned how to focus
rapidly and cost-effectively? The table on page 9 defines the their attention on a subset of key online events that are most
specific organizational know-how and technology requirements likely to drive actions important to their business. These events
you’ll need at each stage. include purchase intent, abandoned shopping carts, and clicks
that drive content sharing.
Make the most of the marketing team
“Web analytics is only interesting to the web team, not my team.”
you already have
Marketers that ignore behavioral web data are disregarding an
Many marketing organizations have virtually all the skills they
indispensable resource.
need to begin applying behavioral web analytics to their
marketing efforts. However, these capabilities are often spread
Online marketers also have their misconceptions:
across the enterprise in disconnected teams; for example,
separate teams for online versus relationship marketing. To
“Marketing is primarily about ‘acquire, convert, retain.’” These
succeed, marketing organizations must make it possible for these
misconceptions miss the urgent importance of growing each
siloed resources to work together. They must also overcome
customer’s Lifetime Value (LTV) — a concept that is incompletely
some widely held misconceptions about web analytics.
expressed by “retention,” and can only be achieved through a
more customer-centric approach.
For example, some relationship marketers still hold beliefs about
web analytics that might have been accurate years ago, but no
“I couldn’t possibly look at each individual visitor.” It can’t be
longer are:
done manually. But your company’s relationship marketers can
take advantage of technology that can automate analysis and
“Web analytics is summary-level data; it isn’t useful for behavioral
action at the level of individual customers.
data.” Today’s best web analytics solutions — notably the IBM
Enterprise Marketing Management (EMM) Suite — provides
behavioral profile data at the visitor/customer level in a readily
accessible web data mart.

9. IBM Software 9
Typical behavioral analysis based marketing triggers (by industry)
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Requirements Site analysis Site & ad optimization Segment targeting Personalized Personalized
(Reporting) Marketing online only Marketing online +
offline
Organizational maturity Define site and Set improvement Identify key segments Commit to Commit to a
marketing goals goals, and manage relevant to the personalization and customer-centric
clearly, so they toward them; prioritize business, and see relevancy as your business strategy that
can be translated testing above the company/website paradigm of doing encompasses and
into web analytics subjective opinions through the eyes of business online integrates all channels
Key Performance representatives from (versus ”spamming”)
Indicators (KPIs) each segments
Know-how and skills Measure what Design and run tests, Discover meaningful Link site visitors Link the identity of
matters, instead of understand their behavioral segments to their registered customers across
attempting to measure statistical significance, from click data and customer information online and offline
everything and act on the results visitor registration and identify the life channels and identify
by adjusting websites information using web cycle events that the life cycle of
or ad spend allocation analytics and data are actionable for actionable events for
accordingly mining techniques marketing marketing
Technology for customer Self-service access to A/B analytics for Segmentation Web data mart Web data mart for
awareness personalized metrics website and online analytics (Example: that provides open, online interactions,
for each role in the advertisements web analytics and secure access to as well as access
organization data mining solutions) granular data on each to offline history
for both click data and individual’s website of transactions,
registered customer interaction history campaigns, and
data responses
Behavioral targeting/ N/A Assign visitors Define business Select the most Choose the most
decisioning technology randomly to test rules for targeting effective content for effective marketing
groups segments, and each individual online communication or of
use self-learning customer in real time, fer for each customer,
mechanisms to refine reflecting past and reflecting past and
targeting current click data, current interactions
customer insights, and both online and offline
business rules
Technology for delivering N/A A/B test automation Deliver targeted Deliver targeted Cater targeted content
targeted content for site & content to each content to each to each individual,
advertisements segment via site individual via regardless of the
advertisements, personalized site inbound or outbound
recommended content, email, SMS, channel each
content or products, or other means interaction occurs in
email, SMS, or other
means

10. 10 Oh behave! How behavioral analytics fuels more personalized marketing
IBM can help you take the next step About IBM Enterprise Marketing
Our EMM suite helps companies drive business value by Management
optimizing their marketing relevancy for each segment and The IBM Enterprise Marketing Management (EMM) Suite is
individual customer or prospect. Our leading Personalized an end-to-end, integrated set of capabilities designed exclusively
Marketing solutions give marketing organizations the capability for the needs of marketing and related organizations. Integrating
to capture web behavioral data and then identify and act on and streamlining all aspects of marketing, IBM’s EMM Suite
insights to engage customers in a relevant dialogue. IBM knows empowers organizations and individuals to turn their passion for
what works and how to overcome the obstacles. If you are ready marketing into valuable customer relationships and more
to trans-form web analytics from a mere aggregate-level profitable, efficient, timely, and measurable business outcomes.
reporting tool into a powerful enabler of behavioral analysis and
targeting, it’s time to learn more about what IBM solutions can Delivered on premises or in the Cloud, the IBM EMM Suite
do to improve your marketing ROI. of software solutions gives marketers the tools and insight they
need to create individual customer value at every touch. The
IBM EMM Suite helps marketers to understand customer
wants and needs and leverage that understanding to engage
buyers in highly relevant, interactive dialogs across digital,
social, and traditional marketing channels.

11. IBM Software 11
Designed to address the specific needs of particular marketing and For more information
merchandising users, the IBM EMM Suite is comprised of five To learn more about IBM’s web analytics offerings, please contact
individual solutions. Digital Marketing Optimization enables your IBM marketing representative or IBM Business Partner, or
digital marketers to orchestrate relevant digital interactions to visit the following website: ibm.com/software/marketing-solutions
attract and retain new visitors and grow revenue throughout the
customer’s lifecycle. With Customer Experience Optimization
eCommerce professionals can turn visitors into repeat customers
and loyal advocates by improving the digital experience of every
customer. With Cross-Channel Marketing Optimization
customer relationship marketers can engage customers in a
one-to-one dialogue across channels to grow revenue throughout
the customer’s lifecycle. Price, Promotion and Product Mix
Optimization allows merchandisers and sales planners to make
price, promotion and product mix decisions that maximize profit
and inventory utilization. And with Marketing Performance
Optimization, marketing leaders, planners and decision-makers
can model and assess mix, and manage marketing operations
to maximize ROI.
Over 2,500 organizations around the world use IBM EMM
solutions to help manage the pressures of increasing marketing
complexity while delivering improved revenue and measurable
results. IBM’s time-tested and comprehensive offerings are
giving companies such as Dannon, E*TRADE, ING, Orvis,
PETCO, Telefonica | Vivo, United Airlines and wehkamp.nl
the power and flexibility required to provide their customers
and prospects with what they expect today — a more consistent
and relevant experience across all channels.

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