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INTERACTIVE MARKETING
Being Relevant to your Customers


Vladimir Mosewicz
IBM Enterprise Marketing Management
Customer experience : a top priority




     86                                                                                                   50
                   percent of companies                                      but less than
                   indicate that                                             percent have a
                   customer experience                                       clear customer
                   is a top priority…                                        strategy…




     80                                                                                                    8
                   percent of
                                                                            less than
                   companies believe
                                                                            percent of
                   they deliver a
                                                                            their customers
                   superior
                                                                            agree…
                   performance…

                                  Manning, Harley. Customer Experience Outlook For 2011
                       Allen, James. Closing the Delivery Gap: How to achieve true customer-led growth.



2
This happening…NOW !!



     The real life Like @ coca-cola Village - YouTube




3
This happening…NOW !!



     The real life Like @ coca-cola Village - YouTube



                                            MARKETERS
                                                        need to
                                                             EVOLVE !




4
ENTERPRISE MARKETING MANAGEMENT
               enables marketers
         to ENGAGE each customer and prospect
         in a CROSS-CHANNEL DIALOGUE that
     builds on their PAST AND PRESENT BEHAVIOR
    across inbound and outbound, online and offline, or
    traditional and emerging MARKETING CHANNELS




5
Key Challenge: Take Advantage of Inbound Marketing Opportunities




                                                                                  ?
                                                                               OFFER
                                    ?
                                  OFFER
                WWW




                                         Hold Time…
                                                                  Reason
                      ..Authentication
                                            ?
                                          OFFER       Greetings
                                                                  for Call
                                                                             Resolution     ?
                                                                                          OFFER

        CALL CENTER
How can technology help?

    Optimizing one-to-one interactions
    is like having a good conversation.

    Marketers need to:



                         LISTEN AND UNDERSTAND



                         DECIDE WHAT TO SAY NEXT



                         (only then) SPEAK
7
How can technology help?

    Optimizing one-to-one interactions
    is like having a good conversation.

    Marketers need to:



                         LISTEN AND UNDERSTAND
                         DECIDE WHAT TO SAY NEXT
                         (only then) SPEAK

                         …and repeat this over and over again across many channels
                         and even more customer relationships.

                         This is hard to do without help from technology!

8
Building an Integrated Marketing dialogue cross-channel



                  Awareness       Decisioning         Execution


                     Identify      Decide on the          Deliver
                  opportunities     best message        messages
                   and predict         or offer        and retain a
                    marketing        to extend,         memory of
                    outcomes       in any channel      interactions




                                   Operations
                      Facilitate cross-channel planning, design,
                             execution, and measurement


9
IBM Enterprise Marketing Management overview

                Ad Targeting
               Bid Management
                                             Online
     Search         Intelligent products
      Eng.
                                           Optimization
                     recommendation
                                                          Interactive Marketing
       Ad
     Serving

     Mobiles

     Social
     Media

     Email




                       Re targeting &                      Real-time offers
                     Personalized emails                  recommendation



10
IBM Enterprise Marketing Management overview

                Ad Targeting
               Bid Management
                                           Online
     Search      Intelligent products Optimization
      Eng.
                   recommendation                      Interactive Marketing
       Ad
     Serving

     Mobiles

     Social
     Media

     Email




                       Re targeting &                 Real-time offers
                     Personalized emails             recommendation


11
IBM Enterprise Marketing Management

        • Relevant and precise marketing that turns customer data into ROI
        • Increase cross & up-sell


                                                                                   IBM EMM
                                           BEST
                                        OFFER     ?                          •   Cross channel campaigns
                                                                             •   Multi-wave campaigns
                                       Free Shipping?                        •   Customer profile driven
                                                                             •   Up-sell, Cross-sell
                                         VIP event?                          •   Geo-location offers
          Lisa                                                   Marketing
                                      Fashion seminar?           Manager     •   Products recommendations
                                                                             •   Event driven campaigns
     • New Loyalty Member              10% discount?                         •   Digital Marketing optimization
     • Has already purchased > 65€                                           •   …
     • Went 3 times to the web site
     • Browsed for Tops




                               Consistency across all channels
12
Real Time Offer Recommendation
                                                   Real Time calls to IBM EMM
                                                   • customer info
                                                   • behavior data                       Lisa
                                                   • session data
                                                                                • New Loyalty Member
                                                                                • Has already purchased > 65€
                                                                                • Searched Tops in Google
                                                                                • Abandoned cart during last visit




           Personalization Segments                                                   ?
           • Customer segments
           • Loyalty member segments
           • Interests in products
     • Checks in real-time for offer eligibility
           • Seasonal events
     • Scores offers in real-time to define
           • etc.
       likelihood of acceptance
     • Self-learning decision engine
                                                                                                   ?

13
Real Time Offer Recommendation
                                                             Real Time calls to IBM EMM
                                                             • customer info
                                                             • behavior data                       Lisa
                                                             • session data
                                                                                          • New Loyalty Member
                                                                                          • Has already purchased > 65€
                                                                                          • Searched Tops in Google
                                                                                          • Abandoned cart during last visit




                                                                                                ?
     Eligible Segments            Eligibles Offers                Score
     Loyalty Members              Fashion Show Event Invitation    98
                                  Earn 50 Bonus Points today
                                  Free Fashion Magazine
     Lifecycle (customer/product) New account registration
                                                                   20
                                                                                                              ?
                                  New product launch               20
                                                                                                          A/B Testing
     Events based                 Abandoned cart offers            75
                                  X-mas specials offers
14
Real-Time location-based Marketing




              Lisa,
        We have a special                  Push personalized and relevant offers to
       coupon just for you !
                                           generate in-store traffic
       Hi Lisa, we’ve got a special
        offer available near you!
                                              • Advanced offer scoring rules driven by current
                                                location and location data associated with offers
                                       Real-Time offer
                      ?
     Coupon valid 5-20th March
     CustomerID: XYAZ1234
                                      recommendation
                                        to drive more
                                         in-store visit




16
Personalized Social Marketing




                                      Personalized
                                        wall post

             Lisa
     • New Loyalty Member
     • Has already purchased > 65€
     • Went 3 times to the web site
     • Browsed for Tops                     Real-Time
                                        recommendation
                                          based on HER
                                         personal profile
                                           & interests




17
Example: Using retargeting to reacquire a visitor who has shopped
but left the site without purchasing.


             Step 1                     Step 2                  Step 3


                                 Presented with          Carts an item,
    Potential customer           personalized product    but does not purchase…
    acquired via pay per click   recommendations based
    (PPC) Campaign…              on browsing history…
Example: Using retargeting to reacquire a visitor who has
shopped but left the site without purchasing.


                            Step 4
                            Step 4                     Step 5


    Views a display ad on                      Clicks through email and
    another site                               purchases product.




     Receives a follow-up
     email showing products
     related to carted item…


                Retargeting
Delivers Proven Results
                                                                                                      Order
      Product Pages                                   Pre-cart & Cart                                                        Email
                                                                                                    Confirmation
      9.1%                                                                                            0.2%
                                                          1.6%                                                       Up to 5% conversion
                                                                                                                     Compared to 2.6%
                                                                                                                     broadcast conversion




      Home Pages                                 Category Pages                                     Search Results        Call Center
  0.5%                                                                                              1.3%
                                                  1.7%


                                                                                                                              15% of call
                                                                                                                              center sales



  •   Data presented is average performance as observed across 23 Coremetrics clients selected
      across a range of revenues and industry verticals over the 9 months prior to April of 2011.
  •   Call center performance provided by IBM
Delivering Personalized Offers Across Channels in Real Time
           Challenge
 Outbound campaigns were ineffective – not taking
  advantage of customer initiated interactions
 Needed to create a single, cross-channel, relationship with
  each customer
 Disparate teams managed customer dialogs                                                                Inbound
                                                                                                          contacts
 Needed to reduce marketing costs through optimization


             Results                                                                        Outbound
                                                                                            response
 Dynamic web offers generated 4x as much revenue as a
  static offer
 Relevant, real-time campaigns drive higher response rates
       85M targeted offers served each day across 5 channels – direct mail,
        email, web, call center, and branches                                                          Customer Profile
       €20M increase in earnings expected
 Lowered direct marketing cost 35%
 Faster campaign cycle times: reduced from 26 weeks per                       One of the largest financial services
  campaign to just 4 weeks                                                     firms in Europe.
Orvis Increases Cross Sell Revenues by 70%

         Challenge
 Struggling to keep recommendations up to date for
  4,400 site products
 Drive additional sales and increase average order values


          Solution
 Tackled the challenge with Intelligent Offer, for timely,
  behavior-based product recommendations
 Orvis merchandisers like the strong controls that
  Intelligent Offer provides                                                         Customer Profile
                                                                Orvis is the longest-running mail order
                                                                business in the United States. In addition,
           Results                                              the company has more than 44 retail stores
                                                                in the United States and United Kingdom
 Site revenue from product recommendations increased           and more than 500 dealers worldwide.
  by 70%                                                        Orvis’ award-winning website offers not only
 Product recommendations on the product details page,          products but also content, including Orvis-
  as a percentage of total site sales doubled, rising from 3%   endorsed lodges information, free fly fishing
  to 6%                                                         tips, and expert articles.
MERCI



23

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Interactive Marketing – Being Relevant to your Customer

  • 1. INTERACTIVE MARKETING Being Relevant to your Customers Vladimir Mosewicz IBM Enterprise Marketing Management
  • 2. Customer experience : a top priority 86 50 percent of companies but less than indicate that percent have a customer experience clear customer is a top priority… strategy… 80 8 percent of less than companies believe percent of they deliver a their customers superior agree… performance… Manning, Harley. Customer Experience Outlook For 2011 Allen, James. Closing the Delivery Gap: How to achieve true customer-led growth. 2
  • 3. This happening…NOW !! The real life Like @ coca-cola Village - YouTube 3
  • 4. This happening…NOW !! The real life Like @ coca-cola Village - YouTube MARKETERS need to EVOLVE ! 4
  • 5. ENTERPRISE MARKETING MANAGEMENT enables marketers to ENGAGE each customer and prospect in a CROSS-CHANNEL DIALOGUE that builds on their PAST AND PRESENT BEHAVIOR across inbound and outbound, online and offline, or traditional and emerging MARKETING CHANNELS 5
  • 6. Key Challenge: Take Advantage of Inbound Marketing Opportunities ? OFFER ? OFFER WWW Hold Time… Reason ..Authentication ? OFFER Greetings for Call Resolution ? OFFER CALL CENTER
  • 7. How can technology help? Optimizing one-to-one interactions is like having a good conversation. Marketers need to: LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK 7
  • 8. How can technology help? Optimizing one-to-one interactions is like having a good conversation. Marketers need to: LISTEN AND UNDERSTAND DECIDE WHAT TO SAY NEXT (only then) SPEAK …and repeat this over and over again across many channels and even more customer relationships. This is hard to do without help from technology! 8
  • 9. Building an Integrated Marketing dialogue cross-channel Awareness Decisioning Execution Identify Decide on the Deliver opportunities best message messages and predict or offer and retain a marketing to extend, memory of outcomes in any channel interactions Operations Facilitate cross-channel planning, design, execution, and measurement 9
  • 10. IBM Enterprise Marketing Management overview Ad Targeting Bid Management Online Search Intelligent products Eng. Optimization recommendation Interactive Marketing Ad Serving Mobiles Social Media Email Re targeting & Real-time offers Personalized emails recommendation 10
  • 11. IBM Enterprise Marketing Management overview Ad Targeting Bid Management Online Search Intelligent products Optimization Eng. recommendation Interactive Marketing Ad Serving Mobiles Social Media Email Re targeting & Real-time offers Personalized emails recommendation 11
  • 12. IBM Enterprise Marketing Management • Relevant and precise marketing that turns customer data into ROI • Increase cross & up-sell IBM EMM BEST OFFER ? • Cross channel campaigns • Multi-wave campaigns Free Shipping? • Customer profile driven • Up-sell, Cross-sell VIP event? • Geo-location offers Lisa Marketing Fashion seminar? Manager • Products recommendations • Event driven campaigns • New Loyalty Member 10% discount? • Digital Marketing optimization • Has already purchased > 65€ • … • Went 3 times to the web site • Browsed for Tops Consistency across all channels 12
  • 13. Real Time Offer Recommendation Real Time calls to IBM EMM • customer info • behavior data Lisa • session data • New Loyalty Member • Has already purchased > 65€ • Searched Tops in Google • Abandoned cart during last visit Personalization Segments ? • Customer segments • Loyalty member segments • Interests in products • Checks in real-time for offer eligibility • Seasonal events • Scores offers in real-time to define • etc. likelihood of acceptance • Self-learning decision engine ? 13
  • 14. Real Time Offer Recommendation Real Time calls to IBM EMM • customer info • behavior data Lisa • session data • New Loyalty Member • Has already purchased > 65€ • Searched Tops in Google • Abandoned cart during last visit ? Eligible Segments Eligibles Offers Score Loyalty Members Fashion Show Event Invitation 98 Earn 50 Bonus Points today Free Fashion Magazine Lifecycle (customer/product) New account registration 20 ? New product launch 20 A/B Testing Events based Abandoned cart offers 75 X-mas specials offers 14
  • 15. Real-Time location-based Marketing Lisa, We have a special Push personalized and relevant offers to coupon just for you ! generate in-store traffic Hi Lisa, we’ve got a special offer available near you! • Advanced offer scoring rules driven by current location and location data associated with offers Real-Time offer ? Coupon valid 5-20th March CustomerID: XYAZ1234 recommendation to drive more in-store visit 16
  • 16. Personalized Social Marketing Personalized wall post Lisa • New Loyalty Member • Has already purchased > 65€ • Went 3 times to the web site • Browsed for Tops Real-Time recommendation based on HER personal profile & interests 17
  • 17. Example: Using retargeting to reacquire a visitor who has shopped but left the site without purchasing. Step 1 Step 2 Step 3 Presented with Carts an item, Potential customer personalized product but does not purchase… acquired via pay per click recommendations based (PPC) Campaign… on browsing history…
  • 18. Example: Using retargeting to reacquire a visitor who has shopped but left the site without purchasing. Step 4 Step 4 Step 5 Views a display ad on Clicks through email and another site purchases product. Receives a follow-up email showing products related to carted item… Retargeting
  • 19. Delivers Proven Results Order Product Pages Pre-cart & Cart Email Confirmation 9.1% 0.2% 1.6% Up to 5% conversion Compared to 2.6% broadcast conversion Home Pages Category Pages Search Results Call Center 0.5% 1.3% 1.7% 15% of call center sales • Data presented is average performance as observed across 23 Coremetrics clients selected across a range of revenues and industry verticals over the 9 months prior to April of 2011. • Call center performance provided by IBM
  • 20. Delivering Personalized Offers Across Channels in Real Time Challenge  Outbound campaigns were ineffective – not taking advantage of customer initiated interactions  Needed to create a single, cross-channel, relationship with each customer  Disparate teams managed customer dialogs Inbound contacts  Needed to reduce marketing costs through optimization Results Outbound response  Dynamic web offers generated 4x as much revenue as a static offer  Relevant, real-time campaigns drive higher response rates  85M targeted offers served each day across 5 channels – direct mail, email, web, call center, and branches Customer Profile  €20M increase in earnings expected  Lowered direct marketing cost 35%  Faster campaign cycle times: reduced from 26 weeks per One of the largest financial services campaign to just 4 weeks firms in Europe.
  • 21. Orvis Increases Cross Sell Revenues by 70% Challenge  Struggling to keep recommendations up to date for 4,400 site products  Drive additional sales and increase average order values Solution  Tackled the challenge with Intelligent Offer, for timely, behavior-based product recommendations  Orvis merchandisers like the strong controls that Intelligent Offer provides Customer Profile Orvis is the longest-running mail order business in the United States. In addition, Results the company has more than 44 retail stores in the United States and United Kingdom  Site revenue from product recommendations increased and more than 500 dealers worldwide. by 70% Orvis’ award-winning website offers not only  Product recommendations on the product details page, products but also content, including Orvis- as a percentage of total site sales doubled, rising from 3% endorsed lodges information, free fly fishing to 6% tips, and expert articles.