5th RICHMOND MARKETING FORUM
5th RICHMOND MARKETING FORUM GRAND RESORT BAD RAGAZ 29TH JUNE – 1ST JULY 2017
5th RICHMOND MARKETING FORUM
PERSONALIZATION AS DRIVING BELT FOR DIGITAL TRANSFORMATION? A Reality Check. Dr. Thomas Walter Senior Principal Consultant, Namics AG
5th RICHMOND MARKETING FORUM
PERSONALIZATION AS DRIVING BELT FOR DIGITAL TRANSFORMATION? A Reality Check. Dr. Thomas Walter Senior Principal Consultant, Namics AG
5th RICHMOND MARKETING FORUM
Googling for „personalization in marketing“ will lead you towards „information“ like the following:
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My Perception.
Personalization is like teenage sex. – Everyone talks about it.
– Nobody really knows how to do it.
– Everyone thinks everyone else is doing it.
– So everyone claims they are doing it.1
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Contrary, you are ...
– In marke/ng for some years. – Decision makers with own budgets. – Reluctant to hear yet another sales presenta/on. – Used to sweet-‐talk of providers, so,ware companies, agencies, etc. – Aware of panic-‐mongering studies that ‘proof’ that you definitely have to invest know.
– S/ll curious what is really behind the issue of ‘personaliza/on’ and the if, the why and the how you should tackle it.
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Mee5ngs
Keynotes Reports
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
TYPICAL SCENARIOS
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Reality Check (1/4).
Myth “Personaliza/on is about the ‘segment of one’, a totally individual offering to each client.”
Reality
?
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Basic idea: Good personalization does the job of a client advisor.
Understanding the context: 1) Our new showroom 2) They checked out model i5 3) We close in 20 min
Understanding the segment: 4) male, 30-‐35, European 5) cloths/ style speak of wealth 6, 7) a couple, but not married
Knowing the customer: 8) His Name is Thomas, he lives nearby and he bought an Z3 only two years ago. 5
7
4 6
3
2 1
8
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The challenge: Finding a sweet spot for the amount of personalization somewhere between 1:n and 1:1.
2) But if “1:1“ means managing and producing individual experiences for every customer, our costs in marke/ng would explode. Then again, there is no u/lity for us.
1) A watering-‐can approach is no longer accepted by the customer. Hence, any ini/al invest in personaliza/on will take us away from 1:n and hence, gain our u/lity for marke/ng.
3) A sweet spot of personaliza/on the amount where you get the most u/liza/on for your marke/ng, a point where marginal gains reach zero.
* let’s say X = personaliza/on
2 1
3
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Example: The sweet spot for the car salesman/ client advisor might be, to consider 4 segments.
Configure your convertible now!
Website
Test-drive this limousine around
your neighborhood
Website
Test-drive your recently configured
i5 model now!
Website
These suplements for your Q5 help to avoid winter-risks.
Website
Segment: «fun-Lover»
Segment: «comfort lover»
Segment: «converted: model
configured»
Segment: «connected: model
purchased»
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From insight to action. First step: Deepening our understanding about the customer.
Exemplary user journeys of cinema visitors based on mul5ple qualita5ve interviews (32 interviews a 45’ conducted). First insights (exemplary): • The unique atmosphere of the cinema is central to the overall
cinema experience. • The cinema experience is a shared experience. • … Derived hypothesis (exemplary): • The customer journey is determined by the context of the visit.
Therefore, the context is essen/al for segmenta/on. • …
INSPIRATION & CONSIDERATION EVALUATION CONFIGURATION & PRIMARY TRANSACTION PREPARATION & SECONDARY TRANSACTION MOVIE EXPERIENCE BONDING & ADVOCACY
ACTUAL USER JOURNEYOPTIMAL USER JOURNEY
ACTUAL VS. OPTIMAL USER JOURNEYUSER JOURNEY - EXPERIENCE SHARER
Movie Phase
1
4
3
External trigger (e.g. radio movie evaluation, TV ad or friends talking about a particular film)
6
Tickets
Arrival at the theater
Pathé.ch is checked
- watch the movie
2
- visits Pathe.ch on mobile- goes straight to Pathé Dietlikon Programm page
Find fitting time, place and movie-Alignment with family and friend(s) using Whatsapp
- buy tickets at the counter
Contextual Activities5
Acitivties afterwards
no movie found
no interesting things to share
Concessions are purchasedhas a seat with a person in front of him
weather is good
- buy tickets online and print them at home
In the mood to go outwith friends(going to the cinema is a lead option)
Google Research- remembers several movie names- checks further information about the movie on Google (focuses on results appearing first)- interested in ratings and pictures
- checks Pathé webpage again for movie schedule
Weather is bad
- goes to Pathe.ch directly for movie schedules as it is his favorite cinema
Checks Pathé.ch
Tickets3
- go for food close to the theater- go shopping- go for drinks
- buys popcorn and a drink
7 8
no convenient time, place or movie are being found
F-08 Group recommendations- Movie recommendations for groups based on their profiles (preferred movies, directors or actors)
F-12 Date, place and movie alignment- Integration of Whatsapp: Export text and links to Whatsapp- Finder-functionality (e.g. Doodle) on website - Organisator gets reward
F-07 Groups- Adding friends to the profile- Invite friends to the website- Group promotions
Movie Phase
1 4
3 7Tickets
Arrival at the theater
Pathé.ch - watch the movie
2
- goes straight to the movie overview page
Find fitting movie, time and place- Alignment with family and friend(s) using Whatsapp
- buy tickets at the counter or vending machine
Acitivties afterwards- enjoy the theater atmosphere- sharing the theater visit on Social Media- talk about the movie with group/friends/co-workers- further activities with group (e.g. go clubbing)
Concessions are purchased- buy tickets online
In the mood to go outwith friends(going to the cinema is a lead option)
Tickets5
8 9
Contextual Activities
6
- go for food close to the theater- go shopping- go for drinks- sharing the theater visit on Social Media
F-14 Share Ticket- Share tickets and reservations with friends/groups using Mail or SMS
F-15 Split the bill- Paymit integration
F-17 Movie rating- Push notification (Whatsapp, Mail, SMS):Step 1: How did you enjoy the movie?Step 2: Whats next
External Research- Cineman, Google- Checks further information about the movie (trailers, plot, rating etc.)
- forwarded directly to the respective movie detail page
Pathé.ch
Weather is bad
F-16 Share activities- Branded photo-corner with speech bubbles, movie utilities or movie charactersOption A: Selfie-stick/Pathé employeeOption B: Photobox- Gifarator
- enjoy the theater atmosphere- sharing the theater visit on Social Media- talk about the movie with group/friends/co-workers- further activities with group (e.g. go clubbing)
F-13 Free view- Possibility to temporarelyreserve the seat in front of you as well (until the auditoria is bookedto a certain point)
F-01 Newsletter- Weather (rainy or hot) or season based- Time based special offers- Loyality program
F-04 Drive to online- Incentives through loyality program and promotions
F-04 Drive to online- In case of line suggest to use the online channel
INSPIRATION & CONSIDERATION EVALUATION CONFIGURATION & PRIMARY TRANSACTION PREPARATION & SECONDARY TRANSACTION MOVIE EXPERIENCE BONDING & ADVOCACY
ACTUAL USER JOURNEYOPTIMAL USER JOURNEY
ACTUAL VS. OPTIMAL USER JOURNEYUSER JOURNEY - EXPERIENCE SHARER
Movie Phase
1
4
3
External trigger (e.g. radio movie evaluation, TV ad or friends talking about a particular film)
6
Tickets
Arrival at the theater
Pathé.ch is checked
- watch the movie
2
- visits Pathe.ch on mobile- goes straight to Pathé Dietlikon Programm page
Find fitting time, place and movie-Alignment with family and friend(s) using Whatsapp
- buy tickets at the counter
Contextual Activities5
Acitivties afterwards
no movie found
no interesting things to share
Concessions are purchasedhas a seat with a person in front of him
weather is good
- buy tickets online and print them at home
In the mood to go outwith friends(going to the cinema is a lead option)
Google Research- remembers several movie names- checks further information about the movie on Google (focuses on results appearing first)- interested in ratings and pictures
- checks Pathé webpage again for movie schedule
Weather is bad
- goes to Pathe.ch directly for movie schedules as it is his favorite cinema
Checks Pathé.ch
Tickets3
- go for food close to the theater- go shopping- go for drinks
- buys popcorn and a drink
7 8
no convenient time, place or movie are being found
F-08 Group recommendations- Movie recommendations for groups based on their profiles (preferred movies, directors or actors)
F-12 Date, place and movie alignment- Integration of Whatsapp: Export text and links to Whatsapp- Finder-functionality (e.g. Doodle) on website - Organisator gets reward
F-07 Groups- Adding friends to the profile- Invite friends to the website- Group promotions
Movie Phase
1 4
3 7Tickets
Arrival at the theater
Pathé.ch - watch the movie
2
- goes straight to the movie overview page
Find fitting movie, time and place- Alignment with family and friend(s) using Whatsapp
- buy tickets at the counter or vending machine
Acitivties afterwards- enjoy the theater atmosphere- sharing the theater visit on Social Media- talk about the movie with group/friends/co-workers- further activities with group (e.g. go clubbing)
Concessions are purchased- buy tickets online
In the mood to go outwith friends(going to the cinema is a lead option)
Tickets5
8 9
Contextual Activities
6
- go for food close to the theater- go shopping- go for drinks- sharing the theater visit on Social Media
F-14 Share Ticket- Share tickets and reservations with friends/groups using Mail or SMS
F-15 Split the bill- Paymit integration
F-17 Movie rating- Push notification (Whatsapp, Mail, SMS):Step 1: How did you enjoy the movie?Step 2: Whats next
External Research- Cineman, Google- Checks further information about the movie (trailers, plot, rating etc.)
- forwarded directly to the respective movie detail page
Pathé.ch
Weather is bad
F-16 Share activities- Branded photo-corner with speech bubbles, movie utilities or movie charactersOption A: Selfie-stick/Pathé employeeOption B: Photobox- Gifarator
- enjoy the theater atmosphere- sharing the theater visit on Social Media- talk about the movie with group/friends/co-workers- further activities with group (e.g. go clubbing)
F-13 Free view- Possibility to temporarelyreserve the seat in front of you as well (until the auditoria is bookedto a certain point)
F-01 Newsletter- Weather (rainy or hot) or season based- Time based special offers- Loyality program
F-04 Drive to online- Incentives through loyality program and promotions
F-04 Drive to online- In case of line suggest to use the online channel
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Next: Testing our hypothesis reveals two essential factors why people actually go to the cinema. Movie Passion: „I go the cinema because movies are a passion of mine“
Average Visitor Count: „How many people accompany
you to the cinema?“
Visit Frequency: „How often do you go to the movies?“ Experince Sharing:
„I go to the cinema to spend time with others.“
Leisure Routine : „Cinema is part of my leisure routine“
Cherry Picking: „I prefer to watch certain movies at the cinema“
Atmosphere Affinity: „I go the cinema to enjoy the special atmosphere“
Source: Pathé Online Customer Survey 2015, n = 9980, CH-DE/CH-FR
Mov
ie &
Cin
ema
Focu
s
Social Focus
Based on mo/va/on for cinema visit (6 items), visit frequency & group size.
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An additional cluster analysis allows us to define statistically relevant customer segments.
Social Focus
Movie &
Cine
ma Focus
Source: Pathé Online Customer Survey 2015, n = 9980, CH-DE/CH-FR SocExg.= Social Exchange (“I like to talk with others about movies and share my opinion”), SocInfl. = Social Influence (“It is o,en my idea when I go to the cinema with others”)
Movie Passionate 15 % SocExg.: 80 IDX SocInfl.: 91 IDX
Social Movie Passionate 35 %
SocExg.: 111 IDX SocInfl.: 122 IDX
Experience Sharer 38 %
SocExg.: 110 IDX SocInfl.: 108 IDX
Cherry Picker 12 %
SocExg.: 81 IDX SocInfl.: 87 IDX
Social Focus
Movie & Cinem
a Focus
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Further analysis detects, that those segments correlate with customers locality.
Social Focus
Movie & Cinem
a Focus
Movie Passionate
15 % Social Movie Passionate
35 %
38 %
Cherry Picker
12 %*
Source: Pathé Online Customer Survey 2015, n = 9980, CH-DE/CH-FR *High probability underrepresentation due to sample bias (Newsletter, Website, Social Media)
Rather located in the german speaking parts of Switzerland
Rather located in the french speaking parts of Switzerland
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Personalization means: If customers are that different in requirements we need to personalize our offering.
Exemplary challenge: How do people want to select a movie, pick the cinema, the date and the /me, … ?
OPTIMAL USER JOURNEY
F-08 Group recommendations- Movie recommendations for groups based on their profiles (preferred movies, directors or actors)
F-12 Date, place and movie alignment- Integration of Whatsapp: Export text and links to Whatsapp- Finder-functionality (e.g. Doodle) on website - Organisator gets reward
F-07 Groups- Adding friends to the profile- Invite friends to the website- Group promotions
Movie Phase
1 4
3 7Tickets
Arrival at the theater
Pathé.ch - watch the movie
2
- goes straight to the movie overview page
Find fitting movie, time and place- Alignment with family and friend(s) using Whatsapp
- buy tickets at the counter or vending machine
Acitivties afterwards- enjoy the theater atmosphere- sharing the theater visit on Social Media- talk about the movie with group/friends/co-workers- further activities with group (e.g. go clubbing)
Concessions are purchased- buy tickets online
In the mood to go outwith friends(going to the cinema is a lead option)
Tickets5
8 9
Contextual Activities
6
- go for food close to the theater- go shopping- go for drinks- sharing the theater visit on Social Media
F-14 Share Ticket- Share tickets and reservations with friends/groups using Mail or SMS
F-15 Split the bill- Paymit integration
F-17 Movie rating- Push notification (Whatsapp, Mail, SMS):Step 1: How did you enjoy the movie?Step 2: Whats next
External Research- Cineman, Google- Checks further information about the movie (trailers, plot, rating etc.)
- forwarded directly to the respective movie detail page
Pathé.ch
Weather is bad
F-16 Share activities- Branded photo-corner with speech bubbles, movie utilities or movie charactersOption A: Selfie-stick/Pathé employeeOption B: Photobox- Gifarator
F-13 Free view- Possibility to temporarelyreserve the seat in front of you as well (until the auditoria is bookedto a certain point)
F-01 Newsletter- Weather (rainy or hot) or season based- Time based special offers- Loyality program
F-04 Drive to online- Incentives through loyality program and promotions
F-04 Drive to online- In case of line suggest to use the online channel
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Example: Personalized decision making process for the segment “Social Movie Passionates”.
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Additionally, personalization means using the customers context.
The customer’s allocated segment (like “social movie passionates”) can be defined by the customer’s loca/on or a recently selected cinema. Based on such segment a feature (like the movie-‐sheduling) might be more visible in western Switzerland than in eastern.
Addi/onally, the move-‐scheduling-‐feature adopts the customers context, defined by the used technology. Hence, the feature offers to use Whatsapp if the customer uses a mobile device and Doodle if the customer uses a laptop.
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Reality Check (1/4).
Myth “Personaliza/on is about the ‘segment of one’, a totally individual offering to each client.”
Reality -‐ If your product doesn’t allow 1:1
personaliza/on, the idea of having a “segment of one” is a myth (e.g. cinema, car, banking).
-‐ Personaliza/on o,en works best on the basis of segments.
-‐ Therefore it is key to understand you customer’s needs.
-‐ Try to define your sweet spot between 1:n and 1:1 and start crea/ng personalized experiences for each segment.
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Keynotes Reports
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
TYPICAL SCENARIOS
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Reality Check (2/4).
Myth “Personaliza/on is too complicated for us and we ain’t got the organiza/on for that.”
Reality
?
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How complex is personalization and how do we start to personalize? We suggest to consider the following aspects in order to start with your personaliza/on project.
Business goal framework Data basis Customer
segments Customer journeys 1 2 3 4
Goals Sucess-Factors Digital
Activities
Performance Metrics Key Performance Indicators
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Typical goals that are set for personalization endeavors.
Fostering Online Sales
Strengthening customer loyality
Generating leads
Becoming „Top of Mind“
Becomeing more efficient
Knowing our customers
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Essential step: Finding and defining your data sources that are the basis for personalization.
Technical Context • Device-‐Type (Tablet) • Device (iPhone 6) • Browser (Firefox) • Carrier (Vodafone) • Connec/on (3G)
Local Context • Geo-‐IP (city country) • GPS (near POS) • Wlan (indoor) • Beacons (indoor) • Weather @user
Time Context
• Time at the customer • Day of week (Mo-‐So) • Season (holiday) • Visit dura/on • Time on page • Avg. /me/ page
Customer Behavior
• Referrals as Links, URLs, Campaign-‐IDs, Social Plaqorm, internal Blog, etc.
• Likes, clicks, views, Usage of services (booking, configurators, etc.)
Customer Loyality • Returning (y/n) • Visit # (2.,5., etc.) • Involvement (clicks) • # pages/ session • Video watched • Newsar/cle liked
Defined Customer Segment
• Private customer • Corp. Ins/t. Clients • Young Families • Moved recently • Internal user • Mult service user
CRM Informa5on
• Name (Login) • E-‐Mail • Company • Last Contact • Slaes history • Topic interest
Market specific informa5on • Market size (#user) • Market share (%) • Opponents (URLs) • Demographics (age) • Historical development
3rd party -‐ Informa5on
• External Segment-‐Info from 3rd party cookies
• Traits like „father,, car fana/c, interested in funds, reads NYT, Sport lover, ...“
Company Specific Informa5on
• Point of Interest (POI) • Opening /mes • Client advisors/ POI • PIM (Product-‐ Info) • PIM (categories) • Discount & Promo/ons
Social CRM Informa5on • Topic interests • Likes, shares, tweets • Social Engagement • Social Graph • Social Rank • Family situa/on
Unstructured Data
• Mails (Text) • Comments (Text) • Clicktale and browser usage (App usage)
• Feedback (Text)
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Defining the output channels, spots where you want to offer and deliver personalization. Webseite/ Elements • Page types (Home, spez.
Topic Home, About-‐us-‐Page, etc.)
• Components (Text/ Image, Teaser Download, Contact-‐Info, etc.)
Custom Web-‐App • Search/ Input field • Extended search • Search results incl.
Images, tables • Promo-‐Teaser • Watchlists • Configurators
Customer Portal • Login-‐page • Home • Bookmarks • Navigator Apps • Customer center • Easyorder • Logout-‐page
Newsleher/ Mail • Gree/ngs/ Welcome • Text/ Image • CTA (Buvons) • Deeplinks to Pages • Avachements (pdfs) • ...
Mobile App • Search/ Input field • Promo-‐Teaser • Watchlists • Configurators • Push-‐No/fica/ons
Mobile Portal • Login-‐Seite • Home • Push-‐No/fica/ons • Bookmarks • Navigator Apps • Customer center • Logout-‐page
Social Media • Facebook • Twiver • Instagram • LinkedIn • Xing • etc.
Shop • Home • Product finder • Teaser/ Promo • Basket/ checkout • Search results • Register-‐page • Logout-‐page
Digital Signage • Screen (total) • Text/ Img • Welcome-‐Message • Loca/on-‐specific device • Teaser
Company Specific Informa5on
• Point of Interest (POI) • Opening /mes • Client advisors/ POI • PIM (Product-‐ Info) • PIM (categories) • Discount & Promo/ons
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Crossing data basis with output channels creates a nice playground for brainstorming.
Let’s consider the car-‐selling example: How might we make the customer experience more personal using the Hero visual teaser, if we already know that the customer is within the “fun seeking” segment?
?
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Personalization means creating more content and thinking about texts, images, videos, etc. in different shape, style or tonality.
Element: Hero Visual
on Home
Text element & picture element
Situa5on
Segment
Default Journey Stage 1
Journey Stage 2
Journey Stage 3
Default
Segment 1
Segment 2
Imagine you want to personalize the homepage hero visual for 3 specific segments and 4 stages within a defined customer journey: Instead of 1x you’ll now need to create 12x text & image.
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Typical counter-argumentation at that point: “Ok, but we do not have all that information to create those segments.” Simple trick: Enhance your data basis and ask.
hvps://www.namics.com/project/swiss-‐life-‐themenfinder/
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Another one: “Ok, but it will take ages to implement and test all those personalized experiences, and we ain’t got people, time and money for that. Simple trick: Use the right tool.
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Final one: “Ok, so who can do the job? My analytics guy or the SEO guy or the content guy or who? Consulting answer: It depends.
Personaliza5on (3)
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Reality Check (2/4).
Myth “Personaliza/on is too complicated for us and we ain’t got the organiza/on for that.”
Reality -‐ Execu/ng personaliza/on is not too
complex, but it takes some effort. -‐ We suggest to start with following your
business goals and then finding the best possible personalized experiences based on your data
-‐ Everyone has data, no user is really anonymous nowadays
-‐ Create a central role within the marke/ng department and also invest in tool-‐handling.
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Keynotes Reports
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
“86 % of all marketers say that personaliza5on is the
key to more sales.”
“Personaliza5on is too complicated for us and we ain’t got the organiza5on
for that.”
TYPICAL SCENARIOS
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Reality Check (3/4)
Myth “86 % of all marketers say that personaliza/on is the key to more sales.”
Reality ?
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Where do statements like that come from and do they even make sense?
It is easy to create a link between a personalized offering and the wishful scenario that economists call perfect price discrimina5on. Best example: A bartender offers beer based on a customers preferences but also defines the prize of each bovle individually based on age, context and journey stage, e.g. 1st beer: CHF 10 as a customer might look rich and thirsty enough, 2nd beer CHF 7, 3rd CHF 7 again as the bartender knows that the customer is always having a 4th one for that price, etc. un/l he reaches his reserva/on price.
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At best, personalization is aligned with the aims of price discrimination.
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Basis argumentation: You will boost your conversion funnel due to a personalized offering.
Multi-Funnel w/ personalized offerings
Won Won Won Won
Funnel w/ unpersonalized offering (1:n)
Lost Lost Won
?
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Basis for all ROI calculations. Understanding of the customer journey and the conversion funnel.
Contacted dealer
Product detail page
Signing up purchase
First visit to website
Car configrator
Saved configuration Test drive
Customer Relationship Management
Customer
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Calculations are usually based on a standardized conversion funnel (reach to conversion).
Funnel w/ unpersonalized offering (1:n) How it is calculated: Effect and costs of all marke/ng ac/vi/es will scale by the basic reach. Example: If 10.000 website visitors (reach, R) result in 50 test-‐drives (conversion, C), then the conversion rate (cr) is 0,5%. Hence, if the cr remains stable, 20.000 visitors will result in 100 test-‐drives. Co
nversio
n
Reach R
C
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Our goal: Convert a passerby into signing-up for a test-drive (ultimate online conversion).
Passerbys
1. Website visit
Default Experience Wide target group message (suitable for multiple segments), default teaser.
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Our goal: Convert a passerby into signing-up for a test-drive (ultimate online conversion).
Explorers
Configurator
Default Experience Visitor saves configuration (stored in cookie, w/o login).
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Our goal: Convert a passerby into signing-up for a test-drive (ultimate online conversion).
Experience with personalized hero visual + test drive options highlighted
Stage: Consider
Involved
Returning visit
Personalized visual
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Our goal: Convert a passerby sign up for a test-drive (ultimate online conversion).
Location based dealer finder.
Leads
Händlersuche
Geo-Targeting
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Personalization calculated like process automation: Same reach, but higher conversion.
How it is calculated: Personaliza/on works like automa/on, e.g. prefilled forms, remembering user input, etc. based on known data. Addi/onal costs vs. argumenta/on for a higher cr (C to C’ for the same reach R). Example: If 10.000 website visitors (R) result in 50 test-‐drives (C) for default visual, but in 100 test-‐drives (C’) for personalized visual. The cr is boosted by 100%.
Reach R, R’
Personalized funnels based on process automation.
Conversio
n
C’
C
personaliza5on
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Our goal: Convert a passerby into signing-up for a test-drive (ultimate online conversion).
Involved
Visit 3rd party pages
Ad w/ config. model Retargeting on 3rd party pages with configured model.
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Our goal: Convert a passerby into signing-up for a test-drive (ultimate online conversion).
Leads
Saved config.
Mail w/ config. model Personalized mailing with configured model. Invitation to test-drive at local dealer.
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Personalization calculated like targeting segments: Smaller, but more precise reach, higher conversion.
How it is calculated: Personaliza/on works like precise targe/ng, e.g. only addressing customers who are most likely to buy. Addi/onal costs (e.g. predic/ve analy/cs), but the hypothesis is that a way higher percentage of customers will buy. Example: If 10.000 website visitors (R) result in 50 test-‐drives (C) for default visual, but 2000 personalized mailings (R’) in 35 test-‐drives (C’). The cr is boosted by 12.5%.
Multi-Funnel w/ personalized offerings
Conversio
n
Reach R’
C
C’
personaliza5on
R
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Results of all activities: Significant leverage of the online conversion.
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But on the other hand: What did it it take to “produce” a personalized offering? – The ideas – The so,ware – The people – The processes – The rollout – The management – The overhead – The nerves – …
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Reality Check (3/4).
Myth “86 % of all marketers say that personaliza/on is the key to more sales.”
Reality -‐ Be careful with statements like these: Some
are made based on a lack of understanding (it is not about monopoly returns)
-‐ In most cases we see indirect effects on sales revenues
-‐ But it is always super hard to determine effects exactly
-‐ Please do not mashup sales revenues with ROI
-‐ Most important: Focus on goal measurement. At best, measure the success for each single step of the customer journey.
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Nellix are top of class when it comes to personaliza5on
– do it like them to be successful.”
Reports
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
“86 % of all marketers say that personaliza5on is the
key to more sales.”
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
TYPICAL SCENARIOS
5th RICHMOND MARKETING FORUM
Reality Check (4/4).
Myth “Neqlix are top of class when it comes to personaliza/on – do it like them to be successful.”
Reality ?
5th RICHMOND MARKETING FORUM
Second: Did Netflix totally reinvent personalization or recommender engines? No.
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Third: Does Netflix care about personalization or recommender engines? Yes, a lot!
5th RICHMOND MARKETING FORUM
Fourth: Are they best in class? Well, the question is: Who decides who’s best in class?
5th RICHMOND MARKETING FORUM
In fact, the algorithm had to fight a so called cold start problem, building up all customer profiles. Example: Thumbs up for “The Hangover” + “The Hangover 2” results in a 68% matching for “The Hangover 3”, but a 92% matching for “The Lion King”?
5th RICHMOND MARKETING FORUM
But more importantly, does Netflix think they will ever be “finished” with personalization? No!
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Current open job positions for issues like “recommendation” or “personalization”.
5th RICHMOND MARKETING FORUM
Final question: Do we need to do it like Netflix?
– Are you ren/ng movies or providing a video plaqorm? – Are you opera/ng online-‐only? – Is your business model based on subscrip/on fees? – Are you a VC-‐financend, US-‐based company with an aggressive growth strategy? – Is your target customer segment simply everyone between 20 and 55 years of age? – Does your marke/ng department include 40 people working on a single algorithm?
5th RICHMOND MARKETING FORUM
Reality Check (4/4).
Myth “Neqlix are top of class when it comes to personaliza/on – do it like them to be successful.”
Reality -‐ Neqlix is top of class, but also they can
can fail -‐ There is no impera/ve of doing it like
Amazon, Neqlix or Spo/fy -‐ It is not the “what they do” but the
“how they do it” where we can learn the most
-‐ Neqlix again shows us the importance of tes/ng.
-‐ Never underes/mate effects of “serendipity” while looking for best prac/ces in the silicon valley.
5th RICHMOND MARKETING FORUM
Nellix are top of class when it comes to personaliza5on
– do it like them to be successful.”
Reports
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
“86 % of all marketers say that personaliza5on is the
key to more sales.”
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
TYPICAL MYTH
5th RICHMOND MARKETING FORUM
Reports
Nellix are top of class when it comes to personaliza5on
– do it like them to be successful.”
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
“86 % of all marketers say that personaliza5on is the
key to more sales.”
No, it’s not.
“Personaliza5on is about the ‘segment of one’, a
totally individual offering to each client.”
I don´t think so.
No, it’s not.
Not the point.
CONCLUSION
5th RICHMOND MARKETING FORUM
Don’t believe in impera5ves. There never has been a collapse due to the lack of personaliza5on. Look behind the scenes.
Reports
Pursuit your individual sweet spot, the amount of customer segments that you
can handle in marke-‐ 5ng.
Look at the issue step by step within the
customer journey that you strive for. Measure, but do not mash up conversion
rates and ROI.
Remember your business goals, take a look on your
data and channels, make a concept, select a tool
and start.
ADVICE
5th RICHMOND MARKETING FORUM
Don’t believe in impera5ves. There never has been a collapse due to the lack of personaliza5on. Look behind the scenes.
Reports
Pursuit your individual sweet spot, the amount of customer segments that you
can handle in marke5ng.
Look at the issue step by step within the
customer journey that you strive for. Measure, but do not mash up conversion
rates and ROI.
Remember your business goals, take a look on your
data and channels, make a concept, select a tool
and start.
STRATEGY