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Using  Human  Data  And  Reciprocity  Of  Value  For  CX  InnovationErnan Roman,  President,  ERDM  Corp.

David  Page,  SVP,  Brand  Strategy  &  Research,  Rent  The  Runway

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Ernan RomanPresident, ERDM Corp.Author, Voice of the Customer Marketing

Inducted into the DMA Marketing Hall of Fame based on the results companies achieve with ERDM's VoC research-based CX strategies.

ERDM conducts specialized VoC research to identify CX strategies that generate significant increases in revenue. Clients include IBM, MassMutual, Gilt, QVC, HP, Microsoft and Norton AntiVirus.

His influential blog Ernan's Insights on Marketing Best Practices appears in Forbes, Huffington Post, CMO.com, CustomerThink, CRMC and Business2Community.

Named by the Online Marketing Institute as one of the Top 40 Digital Luminaries and by Crain's B to B Magazine as one of the 100 most influential people in Business Marketing.

Ernan's latest book is titled Voice of the Customer Marketing.His other books are Opt-in Marketing and Integrated Direct Marketing.

ernan@erdm.comwww.erdm.com@ernanroman

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David PageSVP, Brand Strategy & ResearchRent the Runway

David has 20 years experience in advertising as a Strategist, working in both London and the U.S..

During that time he has worked for a number of major agencies, including Crispin Porter & Bogusky, Anomaly, DDB, BBDO, Havas, and Ogilvy in both London and New York.

Clients have included Kraft Foods, Ford, Reckitt Benckiser, Jaguar, Unilever, Coca-Cola, Mars, Volkswagen, Microsoft, Intercontinental Hotels, Barclays Bank and Intercontinental hotels. His work has been recognized with effectiveness awards from both the IPA and the Effies; along with creative awards from Cannes, One Show and the Andy's.

He joined Rent The Runway in 2015.

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Agenda

VoC research findings;How you should use human data to achieve effective personalization and transform your CX.

How Rent the Runway, the world’s largest designer fashion rental business, is using customer data and personalization to innovate many aspects of its Customer Experience.

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Learnings from 15,000+ hours of VoC Interviews:

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VoC; Current CX & Personalization

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VoC; Current CX & Personalization

“What we receive is not smart

personalization. They aren’t

personalizing the things that matter to

me!”

“What they consider

personalization is so

old-fashioned.”

“I want more than just buying

history-based emails.”

“With today’s technology, I

expect emails to reflect my

interests and preferences.”

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CMO of a Fortune Company;

“We are using new CRM technology to automate old bad behaviors…not guided by how customers define

improved CX. Result; high tech, irritating and brand damaging spray and pray.”

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VoC; Transformational Findings

In spite of increased privacy concerns (Apple/NSA/Snowden)…

BtoB and BtoC customers are willing to provide trusted brands with deep business and personal information in exchangefor more personalized offers and communications.

This fundamentally reframes data privacy concerns because of reciprocity of value!

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VoC-based Reciprocity of Value Equation

Consumer Reciprocity

Recognition that; to receive true personalization, must provide deep personal or business preference information.This marks the shift to explicit vs implicit personalization.

BusinessReciprocity

Commitment by marketers; to provide “smart” personalization. To be truly personalized, must be based on more than transactional, overlay and inferential data.

+

“Human Data” BtoB or BtoC opt-in self profiled information: • Key issues, needs,

expectations • Decision-making process• Messaging and media

preferences • Self-described personality

types, attitudes, life stages.

+

CX Innovation

=

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Transforming the Customer Experience

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MassMutual; VoC Insights

“I don’t want marketing when it comes to these major issues. You can market bread and laptops and cellphones and Toyota

Camrys, but this is my life you’re talking about! I’m not looking to be marketed to.

I’m looking to make life decisions.”

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Self-defined Human Data; Driving New Value Propositions

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Results from Human Data Personalization

Year 11 Segment

Year 224 Segments

Year 324 Segments

Segm

ents

Target

Response  rate

198  K

2%

365  K

4%

350  K

8-­‐10+%

One  segment,  generalized  messaging  for  all

Personalized  imagery  by  age,  gender,  channel,  language

Truly  personalized&  segment  specific  

content  and  imagery

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VoC-based Opt-in Email Pilot

Discussed financial issues identified in VoC. Combined humor and recommendations.

Tested providing episode updates based on Opt-in preferences vs. Control population.

Created online “edutainment” talk show, SmartView. Ongoing episodes.

Results: Opt-in vs. Control

94%Higher open

rate

1,062%Higher video

views

ZeroUnsubscribes

100% Deliverability

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VoC Research: Explicit, Proactive Personalization

The Problem: Customers want explicit and proactive personalization.

The Solution: Empower customers to drive their personalization

• Example; use dialogue boxes to engage customers in explicit personalization

• Make the customer feel heard by asking for feedback on helpfulness• Ask, but don’t interrupt the shopping flow• Distinguish between same brand, similar brand, similar product, etc., to

account for the intricacies of user preferences

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VoC: Explicit, Proactive Personalization

• Contextual Brand Favoriting• Ask at the right touch points in the customer cycle• Allow customers to explicitly tell Gilt when they like a brand,

rather than guessing• Use these preferences to personalize the experience site wide

We’ve added this to your Waitlist.7 for all MankindThe Skinny Distressed JeanColor: Authentic OceanSize: 06

Great! We will now let you know when this brand is back on Gilt.

ü Favorite Brand Love this brand? Add it to your favorites and be the first to know when it’s on sale. Manage your

favorites in your profile.

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VoC: Explicit, Proactive Personalization

Filter for Me• Engage shoppers to customize their experience –

based on a compelling value proposition

• Example; By adding sizes in their profile, they can filter sales to show only what’s in stock that will fit

The Takeaway: Customers understand personalization. They don’t fear it; they embrace it. They want to it to be appropriate and they want to customize it.

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“Smart” Personalization works!

Personalization drives engagement by increasing order conversion rates, return visits, overall engagement and decreasing email unsubscribe rates.

Long-­‐term  A/B  test  for  email  Personalization8%

7%

6%

5%

4%

3%

2%

1%

0%

-1%

-2%

-3%

1 2 3 4 5

Conversion lift Unsub Rate Delta

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Agenda

VoC research findings;How you should use human data to achieve effective personalization and transform your CX.

How Rent the Runway, the world’s largest designer fashion rental business, is using customer data and personalization to innovate many aspects of its Customer Experience.

Start with the customer…

The danger is to ask “what data do we need?”

And then go about finding a way to get it.

But if you start with the customer, the potential benefit to them will be more readily apparent.

Their knee jerk reaction won’t be,“why should I tell you that?”

You might be surprised at what they reveal…

…it will make life a lot easier

Rent the Runway Reviews Platform

Rent the Runway Reviews Platform

Not just good and bad reviews.

But reviews from women like them, with pictures, and their statistics.

Searchable by “women like me”.

Helps them decide if a dress will suit them, and fit them.

Women sharing data to pay it forward and help other women.

3X CONVERSION ON PRODUCTS THAT HAVE REVIEWS COMPARED TO PRODUCTS THAT HAVE NO REVIEWS

What’s good for the customer, is good for the business.

Make the most of what you have!

Rent The Runway Personalization Approach

Ask yourself, “what do we already know about each customer?”Building personalization strategy primarily with existing data:—Date searched—Product views—Short Lists/Hearts—Previous ordersWe know what people are looking at, liking and renting…

10XCONVERSION

8XCLICK THROUGH

Which allows us to do a lot…from a simple personalized email

+5%CONVERSION

+60%CLICK THROUGH

…when we add personalized recommendations

Ask yourself, what can take it from a marketing tactic,

to a business strategy?

We don’t know why they’re looking, liking and renting…

We need to know the “event.”

It connects all the other data, it helps us make sense of all the other data.

So this is the only piece of new information we are seeking.

We’re missing one critical piece of information…

This can transform our customer experience strategy

ONBOARDING

DYNAMIC HOMEPAGE

EVENT HUBS

SELF-SERVICE

REFERRALS

REVIEWS

TRENDING EVENTS

SHOPPING BAG

RECOMMENDATIONS

DATE

VIEWS

EVENTS

NAME

PURCHASES

INSPIRATION

LOOKING

RENTING

PRE–EVENTEVENT

POST–EVENT

ADVOCATE

Digital experiences are resetting analogue expectations.

Carry personalization into every channel

If we “recognize” them online, we need to do the same in-store.

As Beacon technology becomes more commonplace, customers will expect it even more.

Customer Service can’t act like it is the first time you’ve spoken.

As shift from “case-based” model to “customer-based”, true CRM model.

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Additional Information for You

• PPT & 12 Point CX Innovation Check List

• Ebook; 8 Essentials for Effective Online Communities

• Ebook; 5 Ways to Use Human Data to Drive Deep Engagement

• Ebook; 5 Strategies for Transforming Your Customer Experience

• Case Studies

• Blog: Insights On Marketing Best Practices

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CX Innovation Check List

3 strategies for delivering on customer expectations;

• Capture individual preferences

• Use preferences to drive true personalization

• Establish guidelines for safeguarding data privacy.

1Don’t ruin the hard fought gains by sending “spray and pray” blasts which disregard preferences in hopes of generating extra sales.

2Find the right mix between implicit and explicit data: using only implicit data is not enough to power true personalization.

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CX Innovation Check List

Consumers define personalization as much more than “those old-fashioned”transaction-based communications;“Communications should reflect my individual preferences”.

4Change company culture and thinking; • From “how does this

benefit us?” to “how does this benefit the customer?”

5Insights from customers are a privilege, not something you are entitled to.

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CX Innovation Check List

Understanding the Seller’s Journey (your sales channels) is as critical as knowing the Buyer’s Journey.

7Enable preference-based personalization across every channel.

8Motivate/incent customers to provide ongoing feedback about the relevance of your offerings and communications.

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CX Innovation Check List

To drive Change, shift focus from E (Expense) to R(Revenue).

10Ensure that every department and channel uses and respects, customer preference information.

11Create programs that recruit your best customers to drive social engagement.

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