New commerce and communication channels are emerging faster than ever before. As a result, data is being generated at a rapid pace, leaving retailers scrambling to collect, measure and leverage it effectively.

1. Using
Engagement
Data
To
Drive
Mul4channel
Relevancy
#mul%channel
Webinar
Sponsored
by

2. #mul%channel
Follow
The
Webcast
On
Twi;er
#mul4channel
@RTouchPoints

3. #mul%channel
About
Retail
TouchPoints
ü Launched in 2007
ü More than 25,000 subscribers
ü Provide executives with relevant, insightful
content
ü Free Resources such as White Papers, E-book,
Webinars, Research and Podcasts
www.RetailTouchPoints.com

4. #mul%channel
BrightTALK

5. #mul%channel
Today’s
Panelists
Alicia Fiorletta
Associate Editor
Retail TouchPoints
MODERATOR
Ken Blake
Senior Vice President, Analytic
Consulting Group
Harte-Hanks, Inc.

6. USING ENGAGEMENT TO DRIVE MULTI-CHANNEL
RELEVANCY
KEN BLAKE, SENIOR VICE PRESIDENT
HARTE-HANKS ANALYTIC CONSULTING GROUP
BIG DATA BRIDGES THE GAP BETWEEN GUT MARKETING AND TARGETED CUSTOMER
ENGAGEMENT PROGRAMS THAT GENERATE MEASURABLE ROI

7. 7

8. 8
CHANGING LANDSCAPE
Consumers seek a quality/price value equation – makes meeting individual needs challenging…
…There’s a multitude of communication channels to choose from
How consumers interact with these platforms is dynamic — and trends are constantly shifting…

9. 9
Automated Pre-Processing
of Standardized Files (ETL)
Custom Data Management
Processing
(see next slide for details)
Post CDM & Transaction
Processing in the ODS
(Operational Data Store)
Daily Processing for Fulfillment
and Thank You Emails
for Hand-raisers
Weekly Trigger Files:
§ Welcome DM
§ Welcome Email
§ Thank you Email
Quarterly Cross-country Extract
Weekly High Mileage Extract
Ad-hoc MPN Email Notification
Weekly Sirius File
Analytic Users
User
Authentication
THE NEW NORMAL
Email Response Data
Web
Events
Call Center
Survey
Sales Data
Vendor
Firewall
PGP
HH
Firewall
Email Blasts
Reporting
Direct Mail Campaigns
Ad-Hoc Extracts
FTP
Service Data
CRM a methodology and discipline to manage interactions through the application of technology that
organizes and automates marketing processes
— offers a truly effective means to navigate these new dynamics and execute against the
fearless pursuit of the consumer

10. 10
AN APPROACH LEVERAGING NEW TECHNOLOGIES
Making it easier for customers to share opinions…
CRM
Methodologies
Consumer
Enthusiasm &
Brand Love
…applying what is learned to engage directly and meet individual needs
Customer
Relationship
Marketing

11. 11
SIGN OF CHANGE - 1990S
FROM DANCING…

12. 12
SIGN OF CHANGE – 2010+
… TO CAPTURING
AND SHARING

13. 13
WHY BIG DATA
It’s about the 4 V’s…
VOLUME VELOCITY VARIETY
…AND ABOUT DOING IT AT SCALE
VERACITY

14. 14
BIG DATA FOR MARKETERS
DATA
ONBOARDING
Ease
and
efficiency
of
integra%ng
raw
data
and
turning
it
into
insight.
Transforming
raw
data
into
%mely
insight
is
the
core
of
a
good
BI
strategy.
AGILE
ANALYTICS
Faster
Insight,
Be;er
Decisions
through
high
speed
analy%cs
via
high
quality
data
and
solid
data
management
techniques.
ANALYZING
DATA
AT
SPEED
AND
SCALE
Be;er
business
performance
by
analyzing
large
volumes
of
accurate
data
in
a
shorter
amount
of
%me.
SELF
SERVICE
EXPLORATION
PuOng
data
explora%on
tools
&
drill-­‐down
capabili%es
directly
in
the
hands
of
end
users
allows
for
quickly
answering
ques%ons
and
removes
the
burden
from
IT.

15. 15
Content Consumption Browsing Behavior
Product Spend
ReviewsSales Transactions
Abandoned Carts
Social
ENGAGEMENT IS THE KEY

16. 16
OBSERVING A TREND
Top
RFM
Segments
Recent
Buyers
Top
Model
Scores
Most
Recently
Engaged
Our best purchasing segments had the best
engagement rates
Engaged customers spend 2-4x more than unengaged

17. 17
SINCE ENGAGEMENT IS TIED TO SALES
Then we will:
• Expand our universe of potential buyers
• Develop contact strategies to create and then increase engagement (in addition to
sales)
• Track and migrate customers across more interactions
If we can…
Make the
unengaged
consumer
engaged
Make the less
engaged more
engaged
Generate more
engagement
points to
supplement
purchase
Keep selling but
also focus on
engaging

18. 18
ENGAGEMENT MODEL CONCEPT
JAN 2011 DEC 2011
JAN 2008 DEC 2011
A response model works well when purchases are
frequent…
…but many brands are purchased infrequently due to the nature of their products
For a High Frequency brand, this is an Attriter
For other brands, this could be a Best Customer
Difficult to tell an Attriter from a Best Customer

19. 19
ENGAGEMENT CAN BE HIGHLY PREDICTABLE
The top decile exhibits a level of engagement 2.5 times higher than the average
The lift ratio from the top to bottom decile is 15 times
Average = 1.08%
.00
.50
1.00
1.50
2.00
2.50
3.00
1 2 3 4 5 6 7 8 9 10
LevelofEngagement
Decile

20. 20
DATA ACQUISITION STRATEGY
• Start small and do it well – if you aren’t effectively using the basic data you have,
adding more is rarely the answer
Registration
Data
Data Today
Promotion
History
Segments, Geography,
Tenure, Opt-in
Desired Data
Promotion History
# of contacts
# click/opens
# registrations
Purchase History
RFM, 1st purchase , tenure, source of
purchase, migration paths, time between
purchase , purchase based segmentation
schemes and predictive models
Web Browsing Behavior
Last session, categories/products browsed,
number of sessions in past month
Models
Custom
built
3rd Party
Data
Engagement
Registrations, preference center
completion and updates,
customer care, social
engagement
Mosaic
Clusters
Control
Groups
Camp
and
Frozen
Social Data
Segmentation
RFM, Lifestage,
Engagement,
Cross-shop
Research/NPS/
Reviews
Longitudinal Studies, share
of wallet, did you eat, NPS

21. 21
THE RIGHT MESSAGE AT THE RIGHT TIME
Using
enhanced CRM
principles,
marketers will
better…
Develop and
execute plans to
interact with
consumers in a way
that delivers what
they need, when
they need it and
how they want it
Apply the right
staff
resources,
business
process,
technology and
data content
Understand and
predict current
and potential
customer needs
& behavior
patterns across
all channels
Transform
data and
analysis into
business
intelligence
Leverage the
channel mix to
most effectively
interact with
consumers at
points of
exploration,
consideration &
decision

22. PUTTING ENGAGEMENT DATA INTO ACTION
Real World Applications of Big Data

23. 23
APPLICATION 1:
LEVERAGING A HOLISTIC VIEW OF CUSTOMER BEHAVIOR
Customer Product
Engagement Score (PES)
Category
Purchasing
Sum of
Total Net
Spend in
Product
Category
Total
Number of
Product
Items
Purchased
Total
Number of
Transaction
s that
Contain
Product
Category
Web
Browsing
Total
Number of
Days that a
Product
was
Browsed
Total
Number of
Times that
a Product
was
Browsed
Category
Online
Abandon
Cart
Total
Number of
Times a
Cart is
Abandoned
that
Contained
Product
Total
Number of
Products
Items
Abandoned
Category
Post
Reviews
Total
Number of
Positive
Products
Reviews
50% of the
Total
Number
with
Negative
Reviews
SEEING A CUSTOMER’S FULL SHOPPING
EXPERIENCE CAN OFTEN BE MORE
VALUABLE THAN SEEING ITS OUTCOME

24. 24
APPLICATION 2:
OPTIMIZING THE PURCHASE DECISION CONTINUUM
A CUSTOMER’S LOCATION ON THE DECISION CONTINUUM IS CRITICAL FOR
DETERMINING THE APPROPRIATE MESSAGING STRATEGY
Learning Evaluating Deciding Buying
Strategy:
Provide information, keep
warm, monitor
Strategy:
Establish comparative
benefits
Strategy:
Provide stimulus to act
Strategy:
Reinforce decision,
facilitate the transaction

25. 25
APPLICATION 2:
OPTIMIZING THE PURCHASE DECISION CONTINUUM
BIG DATA CAN BE CAPTURED AND MODELED TO SEAMLESSLY & CONTINUOUSLY PLOT
CUSTOMERS ALONG THE CONTINUUM
Learning Evaluating Deciding Buying
Engagement
Activity
Transaction
Activity
Content
Consumption
Social
Activity

26. 26
APPLICATION 3:
DRIVING RELEVANCY AND MAPPING THE BEST ENGAGEMENT PATH
AT EACH SUBSEQUENT STAGE OF THE CONTINUUM THE PICTURE OF THE CUSTOMER
BECOMES MORE CLEAR AND, THEORETICALLY, OUR ABILITY TO SPEAK TO THEM
RELEVANTLY SHOULD IMPROVE...
Learning Evaluating Deciding Buying

27. 27
APPLICATION 3:
DRIVING RELEVANCY AND MAPPING THE BEST ENGAGEMENT PATH
…HOWEVER, IT IS CRUCIAL TO UNDERSTAND HOW THE CONVERTED CUSTOMER IS
MOVED ALONG THE CONTINUUM – AND HOW THIS MOVEMENT CAN BE FOSTERED WITH
A POSITIVE BRAND BIAS
Learning Evaluating Deciding Buying
How does their
engagement differ?
What can we impact?
Customer purchases
a competitive brand
Customer purchases
the brand

28. 28
APPLICATION 4:
DRIVING LOYALTY AND ADVOCACY
THE CONCEPT OF “BEST” ENGAGEMENT PATH CAN ALSO BE USED TO FOSTER POSITIVE
MOVEMENT ALONG A PATH TO LOYALTY OR ADVOCACY
First
Time
Customer
Repeat
Customer
Loyal
Customer Advocate
Customer becomes a
brand advocate
Customer’s progression
stops short of loyalty
How does their
engagement differ?
What can we impact?

29. 29
Dedicated and skilled employees
ROADMAP TO SUCCESS An organizational culture that values fact-based research and
decision-making
Successful data management strategies include the
following crucial elements
Ultimately striving for faster and more agile analytics
Starting with the data you have and grow it over time
Technology tools to ensure large volumes of data are
accurate, consistent and easily accessible
An organizational willingness to test and learn
Management support and adequate support

30. 30
THANK YOU
Ken Blake
Senior Vice President, Analytic Consulting Group
Harte-Hanks, Inc.
ken_blake@harte-hanks.com

31. #mul%channel
Q&A
//
Submit
Your
Ques%ons

32. #mul%channel
Thank
You
For
Joining
Us!
Download
the
slides
from
this
presenta4on:
http://rtou.ch/multichannel-web