26
April 2020Driving Engagement in a “Broken” Funnel
2 • Merkle Inc
Agenda
• The “Ordinary” Customer Journey
• COVID-19 Chaos
• Analytics as the Move Forward Foundation
• How Does Media Fit In?
• Looking Ahead
3 • Merkle Inc
In the “Room”
Beth SanvilleSVP Customer Analytics
Shirli ZelcerCOO Merkle Analytics
Jordan CardonickVP Performance Media
Analytics
4 • Merkle Inc
We help the best brands in the world createcompetitive advantage through people-based marketing.
We believe in marketing to people not proxies.
We believe the future of marketing is personal,informed by data, powered by technology,
and delivered through creativity.
5 • Merkle Inc
Our Global Analytics Organization Delivers Industry Leading People Based Insights
450+ Advanced Statisticians
10,000 Analytic Models Annually
870,000People Based Insight Reports Annually
Statisticians and Mathematicians
Platform Activators
Business and Marketing Partners
Audience Experts
Integrate, manage, and analyze audience data for worlds best brands
Drive value through our fluency and use of marketing technology
Industry vertical knowledge to bring best practices to business and marketing problems
Deliver predictive models and create advanced segmentation to target the right audiences
6 • Merkle Inc
The customer journey is weaving together the data points that determine how a customer behaves and why they do it.
The “Ideal” Customer Journey
Awareness Inspiration Connection Shopping Conversion
Visit SiteSee Ad Create Account Saved Cart
Purchase
EducateEmphasize Value Proposition
Push Offer
Encourage SharingOffer Add-ons
Trigger Saved Cart Message
7 • Merkle Inc
The Customer Journey in the WildThe customer journey is weaving together the data points that determine how a customer behaves and why they do it.
KNOWN TOUCHPOINTS UNKNOWN / UNMANAGED
EM
?
?
?
?
?
?Week of 12/27/159:15AM E.T1 EM delivered
EMWeek of 1/3/157:23AM E.T3 Ems; No Opens
1/14-12/1475 EM / 1 open;13 DM; No Purchases
Week of 1/17/159:33 AM E.T3 Ems; No Opens
Week of 1/10/151 DM
DM
Week of 1/10/152 Display Ads
Week of 1/10/15Paid Social Ad
EMWWW
Week of 1/17/15Web Engagement
Week of 1/17/154 Display Ads
EM
Week of 1/24/154:00 PM ET3 Emails
WWW Week of 1/24/153 Web Interactions
? Week of 1/24/155 Display Ads
Week of 1/31/151 DM
Week of 1/31/15Paid Social Ad
EMWeek of 2/7/152:41 PM ET2 EMOPENED
Week of 2/7/153 Web Interactions
WWW
$$$
Week of 2/7/15Purchased
RID: 500000538523614Name: Jason AdamsLocation: Elkridge, MarylandAge: 25-35Income: 75-100kSegment: Young UpcomingLast Purchase: Inspiron Laptop
Week of 1/17/15Other (unidentified interaction)
Week of 2/7/15Other (unidentified interaction)
?DM
8 • Merkle Inc
Marketers must use analytics as a tool set in accommodating the altered customer journey
COVID-19: Now What?
9 • Merkle Inc
The customer journey is weaving together the data points that determine how a customer behaves and why they do it.
Reshaping Customer Journey: The Role of AnalyticsSa
mpl
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etric
s
Awareness Inspiration Connection Shopping Conversion
Visit SiteSee AdCreate Account Saved Cart
Purchase
EducateEmphasize Value Proposition
Push Offer
Encourage SharingOffer Add-ons
Trigger Saved Cart Message
Site VisitsOpen Rates
CTR
Account CreationPage Views
Page ViewsSaved Carts
ConversionARPU
ARPUShares/Likes
Content Downloads
Experience/Category Education
Broad Brand
Customer Narrative
Continued Customer Narrative
More Focused Brand
Light Product Focus
Triggered WelcomeHelpful Hints
Path to Conversion
Product SuggestionsOffers
Cross SellUp Sell
Anticipatory/Next Best ProductSa
mpl
e C
omm
unic
atio
ns
10 • Merkle Inc
Empathy is the underlying business strategy
Adjust Peak Recover
Needs
Strategy
Tactic
11 • Merkle Inc
Specific Challenges within Industry VerticalsVertical Challenge
Insurance Retaining Premiums and contactless business models
Nonprofit Raising funds during these uncertain times with cancelation of physical events, consideration of virtual events, shift in givingpriorities to local charities and decrease in charitable giving
Pharma/Healthcare Loss of in-person sales call opportunities with doctors, cancellation of face-to-face events (speaker programs, conferences) requiring alternative communications platforms
Rapidly shifting customer base as individuals fall off group employer plans and have high uncertainty about individual health care coverage. Conflicting messaging confusing Medicare patients concerned about coverage during pandemic
Automotive Dealer-less selling
CPG Align supply chain disruption to brand building opportunities
Retail Shift in brick and mortar
Travel & Entertainment Indefinite suspension of conversion coupled with murky audience upon return
High Tech Loss of retail channel partners due to store closing creating a need to engage directly with end-consumers
Concerns over technology bandwidth due to massive increase in need for in-home technology support for virtual meetings and online schooling
12 • Merkle Inc
While different industries will have specific challenges common macro factors are driving overall change and thus the solution framework
Challenges Rooted in Common Themes
Deliver rich experiences in absence of human contact
and/or for an extended amount of time
What is critical for customers? What is critical
for the business?
Optimize every aspect of return
Cut costs Respond to rapidly changing conditions
ENGAGEMENT EFFICIENCY AGILITY RE-PRIORITIZATION RE-LAUNCH
Work/ Study from Home
Cost PressuresConsumer
Sentiment
Increased Importance on Digital Experiences
Changing Media
Consumption
New Product Proliferation
13 • Merkle Inc
Using Analytics: Staying Top of Mind in an Elongated Funnel
Put plan in place for narrative/content based messaging over next two quarters to be structured around an elongated “nurture” play
Use segmentation to guide cadence/frequency/messaging, etc.
Use engagement monitors/scores to quickly assess what is and is not working.
Use site analytics/decisioning processes to let the organic customer journey unfold. Now is the time to enable personalized experiences via CDPs/DMPs
Adjust existing KPIs/dashboards to increase focus on engagement KPIs in order to establish new benchmarks–
Loyalty accumulation in light of less earning opportunities
Use Value Model/proxy to determine best members to offer to (i.e—may be low loyalty but predicted high value); eventual play to identify “switching” behavior
14 • Merkle Inc
Ø Develop methodology to track demand using various different proxies (brand perception, google keywords, site traffic/activities, campaign engagement, etc.) to ensure brands can double down when demand starts to come back. Be leery of false positives!
Ø Re-evaluate targeting based on changing customer profiles. Profile/model early and often.
Meet Your Customers On the “U” Curve
The Slow Welcome Back
15 • Merkle Inc
Analytics will help marketers optimize new COVID trends emerging as permanent A MOMENT IS AN ORGANIC INTERACTION DRIVEN BY CONSUMER DECISION
BE PREPARED TO MANAGE THE MOMENT
A New Normal
Vertical Potential Enduring Opportunity
Insurance New lead management/distribution hybrids
Nonprofit Online segments for (cheaper) virtual events
Pharma/Healthcare Identification of no-rep segments
Automotive “No dealer” segment for traditional players
CPG Retaining customers acquired during a “must have” time (example: DIY beauty). Mine customer data.
Retail True merging of online and brick & mortar customers
Travel & Entertainment Expansion into previously peripheral audiences
16 • Merkle Inc
The customer journey is weaving together the data points that determine how a customer behaves and why they do it.
Reshaping Customer Journey: The Role of MediaSa
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etric
s
Awareness Inspiration Connection Shopping Conversion
Visit SiteSee AdCreate Account Saved Cart
Purchase
EducateEmphasize Value Proposition
Push Offer
Encourage SharingOffer Add-ons
Trigger Saved Cart Message
Site VisitsOpen Rates
CTR
Account CreationPage Views
Page ViewsSaved Carts
ConversionARPU
ARPUShares/Likes
Content Downloads
Experience/Category Education
Broad Brand
Customer Narrative
Continued Customer Narrative
More Focused Brand
Light Product Focus
Triggered WelcomeHelpful Hints
Path to Conversion
Product SuggestionsOffers
Cross SellUp Sell
Anticipatory/Next Best ProductSa
mpl
e C
omm
unic
atio
ns
17 • Merkle Inc
Organizations are making media budget decisions based on a number of dynamics:
• Callousness of marketing during a pandemic
• Overall revenue decreases
• Inability to service or deliver products
• Reinvestment of funds to other areas of the business
However, individuals are still engaging with companies to gather information even if normal search and device trends have been impacted
Performance Media: It’s So Quiet Around Here…Should it Be?
020406080
100120
GO
OG
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EARC
H IN
DEX
US-Based Search Demand: toilet paper
Source: Google Trends; last 5 years by week
18 • Merkle Inc
Organizations that are looking at their engagement information and assessing performance are able to succeed in this marketplace through:
• Decreased CPMs that allow for greater reach and exposure
• Funneling to support Organic activities like Search Engine Optimization to increase visibility
• Making adjustments to site content and flow to increase ease of navigation and use
Therefore, while customer funnel’s may be disrupted from typical norms, organizations still have the ability to optimize and drive engagement during this time.
Performance Media: It’s So Quiet Around Here…Should it Be?
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00
$10.00
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
CPC and CPM
CPM CPC
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
$0
$100
$200
$300
$400
$500
$600
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
CVR
Cost
Per
Acq
.
CVR and CPA
All-In CPA CVR
Source: Performance for Retail Electronic Product
19 • Merkle Inc
Performance Media: Unleashing the HoundsNow is a good time to put focus on audience and channel analytics to help in navigating recovery and setup for long-term health.
• By prioritizing the best audiences for your business and effective channels, you’ll be able to target your dollars to drive the biggest quick return and put forth the right messaging / customer experience to make every dollar count.
• As we return to normalcy many businesses will be looking to fast track their marketing inflating CPCs / CPMs and focusing on reach and frequency of the market.
• On top of that we have a 2020 Presidential Election in Q4, which will make CPMs and marketing inventory further strained.
20 • Merkle Inc
The customer journey is weaving together the data points that determine how a customer behaves and why they do it.
Reshaping Customer Journey: Generating Actionable InsightsSa
mpl
e M
etric
s
Awareness Inspiration Connection Shopping Conversion
Visit SiteSee AdCreate Account Saved Cart
Purchase
EducateEmphasize Value Proposition
Push Offer
Encourage SharingOffer Add-ons
Trigger Saved Cart Message
Site VisitsOpen Rates
CTR
Account CreationPage Views
Page ViewsSaved Carts
ConversionARPU
ARPUShares/Likes
Content Downloads
Experience/Category Education
Broad Brand
Customer Narrative
Continued Customer Narrative
More Focused Brand
Light Product Focus
Triggered WelcomeHelpful Hints
Path to Conversion
Product SuggestionsOffers
Cross SellUp Sell
Anticipatory/Next Best ProductSa
mpl
e C
omm
unic
atio
ns
21 • Merkle Inc
Takeaway: The Power of Insights (Economic Resilience the Macro Impact)
Understanding the impact of COVID-19 against how economically solvent a particular region or area of the country was entering into the crisis can help guide an understanding of the customer mindset during recovery
22 • Merkle Inc
Takeaway: The Power of Insights (Economic Resilience the Micro Impact)
Although economies will be re-opening at a state level, understanding the unique customer mindset at a more granular level will help to guide an effective and empathetic marketing strategy
23 • Merkle Inc
Takeaway: The Power of Insights (Economic Resilience the Micro Impact)
A comparison of two of the most affluent counties in the country point to the extreme impact of the virus on similar population setsFairfax County, VA and Westchester County, NY had similar solvency coming into the crisis, however the impact of the virus has been dramatically different on the two counties pointing to a need for a strategy as each state’s economy re-opens
24 • Merkle Inc
Questions?Please contact us for more information:
Suggested reading:
https://www.merkleinc.com/blog/using-analytics-fuel-your-recovery-strategy
