Transcript Sample presentation slides (Blue with white bar design)

Nordan Consulting
Nordan Consulting
Agenda:
• Who We Are
• Benefits of our product
• Challenges, Impact you can expect to your business
• How are we different – How it works
• Multi-Channel impacting messaging and offer
• Estimate on Level Of Effort / Client Time Required
Nordan Consulting
Our team makeup is the ideal skills mix for optimal delivery
Enterprise Architect –
Retail Strategy and
Marketing
Chief Technology
Officer – Retail
Solutions
Advanced Leadership
Consultant - MBA
Harvard Grad
Advanced Analytics
Scientist – Artificial
Intelligence PhD
Nordan Consulting
Today’s tech and consumer changes are producing many tough marketing
challenges that are leaving marketers struggling to respond
Marketing Priority Matrix
4
Data explosion
Social media
Growth of channel and device choices
Shifting consumer demographics
5
Financial constraints
6
Decreasing brand loyalty
7
Growth market opportunities
8
ROI accountability
9
Customer collaboration and influence
10
Privacy considerations
11
Global outsourcing
12
Regulatory considerations
13
Corporate transparency
1
Underpreparedness
2
3
1
70
2
3
4
60
5
6
11
10
7
50
9
8
12
13
Factors
impacting
marketing
40
0
20
40
60
Mean
Source: 2011 Global Chief Marketing Officer Study industry
Nordan Consulting
How effective is your organization in the key metrics of delivering customer life time
value? Forrester report on “The State Of Retailing Online 2013: Key Metrics And
Initiatives”
Source:
http://www.forrester.com/
The+State+Of+Retailing+
Online+2013+Key+Metric
s+And+Initiatives/quicksc
an/-/ERES89902#/The+State+
Of+Retailing+Online+201
3
5
Nordan Consulting
Not all marketing dollars are returning equal results. Its easier said then done to
figure the ROI on your marketing dollars so you can do more with less
How is your Marketing Budget
Performing?
Visitors
8%
41%
1. Is it allocated correctly?
2. Is it producing the expected
results
92%
59%
3. Does it have growth focused
marketing attribution
No Previous Purchase
Source: http://www.cmo.com/articles/2012/9/11/the-roi-frommarketing-to-existing-online-customers.html
Revenue
One Previous Purchase
Multiple Previous Purchases
Nordan Consulting
The way consumers reach purchasing decisions is constantly changing and this
requires vigilance with ongoing innovative marketing execution
Source: http://www.kaushik.net/avinash/analytics-tips-complex-data-simple-logical-stories/?utm_source=social-media&utm_medium=twitterfbgp&utm_campaign=aktw
7
Nordan Consulting
Shoppers want retailers to provide personalized promotions and recommend
relevant – based on IBM Global Study across 14 countries with 23,466 respondents
Interest in retailer offers
55% 43%
Use my prior
purchasing
to offer me
promotions
Use my prior
purchasing to
recommend new
products
43% 36%
Invite me to
events
Involve me in
new product
ideas
Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
From Transactions to Relationships: Connecting With a Transitioning Shopper
Global View
8
Nordan Consulting
According to Forrester, the US retail marketing budget is disproportionately
allocated. Effective marketing analytics can provide the necessary alignment
Source: http://www.cmo.com/articles/2012/9/11/the-roi-frommarketing-to-existing-online-customers.html
Nordan Consulting
Effective use of data enables marketers to target customers with the highest
profitability potential, i.e. for 1% of shoppers returning = ~10% increase in revenue
Shopper Conversion Estimates
US Email Marketing Spend, 2011 To 2016
52%
54%
84%
60%
Source: http://www.cmo.com/articles/2012/9/11/the-roi-frommarketing-to-existing-online-customers.html
http://www.forrester.com/US+Interactive+Marketing+Forecast+2011+To+2016/quickscan//E-RES59379#/US+Interactive+Marketing+Forecast+2011+To+2016/fulltext/-/E-RES59379
Nordan Consulting
Analytics based marketing actions and/or offers can tap into the five times higher
conversion rates of the top two quartiles with the right and effective capabilities
Capabilities needed to convert profitable purchasers
Customer Insights
Trend Spotting
Customer Value Management
Highly Targeted Campaigns
Source: http://www.cmo.com/articles/2012/9/11/the-roi-frommarketing-to-existing-online-customers.html
Nordan Consulting
Based on our experience we expect our marketing analytics to increase by 50% on
the results of current marketing solutions
The biggest impact to conversion in the first 12 hours of remarketing
No eMail Re-Marketing
With eMail Re-Marketing
Macy’s uses psychological triggers for increased conversions
Source: http://www.seewhy.com/conversion-academy.htm
Nordan Consulting
Nordan is able to deliver results by applying the experience and skills from the
dimensions critical to today’s business needs of engaging customers
Industry Insights
Capabilities
Nordan
Markting
Analytics
Solutions
Execution
Analytics Accuracy
Nordan Consulting – Product Suggestion Engine
Consumer purchasing patterns are changing slower than implied by the
media hype
Nordan Consulting – Product Suggestion Engine
Traditional Product Suggestion
Customer views a product
Nordan Product Suggestion
Nordan looks at the complete view of the customer – browsing
history, purchasing history, and demographic data
70% Similar
Customer
B
Customer
A
The system finds the items with the highest view rate
when other customers have viewed this product
Customer
D
Customer
C
30% Similar
80% Similar
Nordan then identifies products that customers B, C, and D have
Purchased and makes suggestions for the next best offer.
Nordan Consulting
The patterns and trends you notice in your market sector can dictate the approach
you take towards higher RMI
Leverage Point 5:
Advocate Compensation
Use platforms like Pinterest
to complement marketing
efforts through the help of
the extreme loyalist
Leverage Point 6:
Application To Person
Use of the mobile platform
to send intelligent, timely &
location focused messages
to mobile users
Nordan Consulting
What is the anatomy of your customer’s experience and how do you maximize this
experience by capturing, analyzing and executing on all the possible info?
Aware / Engaged
•
Communication
Sources
Process Flows
Data Extracted
Transacting / Interacting
•
•
•
Transaction points
Process Flows
Data Extracted
Doing
•
•
Thinking
•
Triggering thoughts
•
Intuitive experience
Feeling
•
Triggering Feelings
•
Supporting messages
Experience
•
Initial Experience
•
Visual assistance
Image Source - http://www.percepta.com/regions/europe/resources/blog/2012/03/30/owns-social-media-customer-service/
Involved / Loyal
•
•
•
Ongoing
conversation
Process Flows
Data Extracted
•
Realized value
•
Positive
experience
•
Continuous
engagement
Nordan Consulting
Marketing effectiveness driven by business value results drives much higher
returns than traditional digital activity metrics
Activity Based Approach
Value Based Approach
- Key Issues
+ Key Benefits
•
Exhausts customers
•
More relevant to the customer – increase
probability of engagement and/or purchase
•
Encourages discount hunting / low
profitability customers
•
Lower marketing spend – fewer messages,
better timed, and personalized
Lost opportunity to move a profitable
customer to the next segment
•
Increased margins – pattern detection on
moving customers up the profitability
segemnt
•
Create advocates for your brand
•
Reward profitable customers with the right
incentive for advocacy and future spend
•
•
Low Margins
•
Possible customer retaliation from
spamming effects
Nordan Consulting
The Level of Effort estimate for a 2 month POC – the process flow and LOE will be
customized based on the project scoping effort in the Project Kickoff phase
Client LOE Impact
Phases
Task requiring assistance
Project Kickoff
Establish scope of the solution (Category,
Product, approach, data to be used,
project plan creation)
Business – 5 hrs
Tech – 10 hrs
Solution Setup
Business Alignment Matrix, Data Extracts,
Analytics Models Customized, Solution
Automation Setup
Business – 5hrs
Tech – 10 hrs
Analytics results validation, campaign
execution, technical resolutions to issues
Business – 5 hrs
Tech – 5 hrs
Execution
Results Analysis
Results Presentation
LOE (in hrs)
Track execution, run reports, validate
results
Business – 2 hrs
Review results with the business and
establish next steps
Business – 1 hrs *
total attendees
Nordan Consulting
Appendix
Nordan Consulting
1. Select Key Shopping Features
2. Capture Shopping Data
Coupon
1st
Time
3. Create Analytical Data Clusters
Profitable
Sale Items
High Potential
Luxury
Brand
RFM
Unengaged
4. Create Analytical Campaign Models
Cluster
Profitable
Luxury
High Potential
Unengaged
Offer
5. Execute Tagged Campaign
6. Track Campaign Results
© 2012 IBM Corporation