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10 Mar
2016

The NectarOM Road to Omni Channel

By Bryon Morrison, Commissioner of The 2016 NectarOM Road to Omni Channel Tournament

Every year March introduces a special kind of “madness” for basketball fans, but this year ushers in a new kind of competition for advanced marketers. 2016 is the inaugural year of The NectarOM Road to Omni Channel Tournament where some of America’s most recognized traditional brick and mortar marketers will be competing against each other to show their prowess in Omni Channel Marketing and how they are evolving in a digital world.
This tournament will have many similarities with that other tournament. A wide field of brands from more than 30 industry categories, also known as their “conferences” (i.e., Specialty Retail, Telco, Electronics Retailers, CPG, etc.) will be evaluated. The eight most qualified companies will compete in their respective industry categories, as well as in cross-category match ups. Each team’s professional audit score for how they respond to prospects and customers online, in mobile and in outbound messaging channels will dictate their “score” and ability to move up in the brackets.

The Need For Omnichannel
A company’s ability to serve their customers in all possible channels has become table stakes thanks to “digital brands” like Amazon, Netflix, Apple and Google. Those companies created in the last 15-20 years were built on the assumption that customers and data are of paramount value. They already know they can make a greater business impact by offering a seamless, holistic experience across all channels. Anyone that’s bought something on Amazon will attest to the superior experience associated with their understanding of your needs and preemptively introducing solutions that just seem to fit every situation.
So what about the predecessors to those digital brands – those large companies that are the foundation of American commerce? Those industry icons have spent years investing in brick and mortar locations or spent endless time and resources driving consumers to a physical location. Most of these companies deal with batched data or backward looking analytics for insights so their foundation is infinitely different than their more digital contemporaries. As a result, the pace of change has been much more difficult for them to manage. Case in point, the internet and ecommerce required a game of catch up and before they perfected things their reality shifted again with the introduction of mobile and social.

The New Reality
The evolution of brick and mortar oriented companies is a requirement and they know it. While store sales dominate those of e-commerce that is changing. As an example, ecommerce outpaced physical store sales 5-to-1 last year. In addition, the companies struggling with surrounding a prospect or customer and serving them in their preferred channel are watching $41 billion in sales move to a competitor due to poor customer service. And sales don’t necessarily get them back in the door since 64% of consumers choose their favorite brands based on experience over price.
The future for companies that cannot embrace this change is bleak. Smart companies are committing resources to make their customer experience seamless online and off. Unfortunately, the reality is more companies are talking omnichannel rather than providing it. Digital competitors, unencumbered by expensive physical infrastructures, are prone to rapidly test and execute against omnichannel strategies while traditional marketers often use it as a soundbite for stockholder meetings.

The Competition and the Brackets
The NectarOM Road to Omnichannel Tournament will show which companies are truly investing in and delivering a superior experience across all channels for existing and potential customers. We will see who has put together the best channels (i.e., “players”) and who is achieving a high level of execution in each channel (i.e., “player stats”).
The competitors included in the tournament this year will be introduced on Selection Monday, March 14. To follow the team selection process, the games updates and stats you can…

Click here and watch for updates on our blog
Follow the tournament on Twitter with #TR2O and #MarchMadness
Sign up for email alerts by signing up here

See which brands made the cut: //nectarom.com/selection-monday-let-madness-begin/

22 Feb
2016

New Year’s Resolutions – Two Months Later

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A Plea for Omnichannel Support from Brands

By Bryon Morrison

I purchased my first, and last, piece of workout equipment almost about five years ago. It was one of those pull up contraptions you hang over a door in seconds and it changes your life forever. Several weeks before I made the purchase, my email was swamped with retailer ads for exercise equipment, the latest Nike cross trainers and fitness apparel. The online coupons and retail discounts for these items wouldn’t stop – clearly the tire around my waist somehow made me a prime target.

January 1st was right around the corner. It was now or never. I had no choice, but to follow through and make that life-changing purchase! My equipment arrived and I was ready to embark on my journey towards fitness I go on every couple of years. Long story short, a month and a half later, the pull up bar became a coat rack and towel hanger.

A month or two later, what happens? In the dark ages, before apps and OmniChannel, there was very little support to carry us beyond the first couple of “honeymoon” months. Gradually, we’d tiptoe back to our old bad habits and couch potato lifestyle. Today I think we need to ask for help. Not from the personal trainer at the gym, but from the brands that surround us everyday.

OmniChannel Personalization – Your New Accountability Coach

Companies are turning to hyper-personalization and tech to help people meet their New Year’s Resolution goals. Technology now gives you the ability to connect your phone, wearable activity trackers and apps to your gym’s equipment and that treadmill at home. You can compare yesterday’s workout with today and share your progress on social sites like Facebook. You’re able to keep track of your daily activity, food intake, weight and sleep. You get suggestions for that perfect piece of gear or accessory based on what stage you’re at in the journey. For those of us working our way into bad shape we’re going to see meal replacements and Gatorade Chews. We’re hopefully spared the ads for toenail loss and bleeding nipple solutions that our marathoner friends are receiving (I’m still amazed by you folks).

Today, the digital support system is personalized to fit your lifestyle whether you’re getting into shape or sharpening your time management skills. For me, and the majority out there, that’s the key to success. Whatever bit of digital assistance or support that streams to my device should fit me like a custom tailored suit.

Mar-Tech Platforms Make It Possible

In order to get that custom fit, you need measurements. Well, in the world of OmniChannel, you need data. Personalization Platforms like NectarOM take that concept to another level. NectarOM constantly thinks about the online and offline relationship a brand has with shoppers and blends that marketing channel data with transaction data to provide the best content recommendations possible. The content could come in the form of a new product recommendation, but it could just as easily be a recipe, a social comment, an inspirational message to help you overcome that 21-day slip, or a one-to-one discount to help you choose better grocery items. This omnichannel data is pulled from every channel including logins, social sites, email, websites, purchases, browse history, etc., to understand your specific needs. NectarOM stitches all of those data points together to create a 360-degree profile of a specific customer’s needs.

That profile is what separates you from the millions of others out there. It also tells a brand when you could use that nudge to follow through on your New Year’s Resolutions which comes in the form of automated emails, app push messaging, a personalized website and one-to-one marketing campaigns presented in real-time.

The Road to Success

These Mar-Tech platforms put a new bonus on brands. My profile can’t be something viewed in the context of a promotion or a campaign, but rather my entire life. As an example, my profile has to reflect my daily routine. Let’s face it, as the day progresses, my needs and wants change. I’m not the same person at the office as I am at home. I don’t need a ton of reminders or a motivational boost at 2 p.m. during a meeting. I’m going to need those five hours later when I’m at home debating whether I should spend half an hour trying to get an ROI on that pull up bar or wallow in a heavy dose of Netflix. At the same time, when I stumble on major life changes, I want my digital world to keep up. If my schedule changes, so does my fitness routine.

Omnichannel personalization is necessary for sticking to those New Years Resolutions. We will continue to provide information about ourselves and our journey, but brands need to become our new personal trainer and an improved source of accountability. New Balance is now our cheerleading squad.

Avocados From Mexico is a part of our squad of dieticians. Under Armour matches us to others who are striving towards the same goals and keeps us connected. These are the new hands that swipe the pint of Chunky Monkey ice cream from our hands and keep us focused. If the brands don’t do their part then treadmills sit dormant collecting dust, the pull up bar moves to the closet and we all say, “Well, I’ll do better next year.”
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14 Feb
2016

Has Eliminating the Human Factor Backfired?

By Bryon Morrison

We are living in the era of convenience. Companies, big or small, are making strides to facilitate customer demands, and Omni Channel Marketing is leading the way. From integrating customer data and marketing automation to predictive analytics and digital strategy, companies are fine tuning their process of making the entire spectrum of the shopping experience virtually effortless. With only a few clicks or taps, you can order flowers while stuck in traffic or purchase a new pair of heels during lunch hour. A lot of this convenience can easily be attributed to wiping out the human factor on the customer’s end.

In the long run, has eliminating the human factor backfired?

Let’s go back in time to the mid 90’s when approximately 15% of convenience stores started offering pay-at-the-pump. The time it took to put gas in your vehicle was drastically reduced because you no longer had to venture inside and wait in line to pay. Back then, this feature was monumental. By 2002, the percentage of convenience stores offering pay-at-the-pump jumped to over 80%.

The customer experience, as a whole, was more personalized, however, behind the scenes, something else was happening.

In-store sales were spiraling downward. The pay-at-the-pump feature eliminated the customer’s need to go into the store. The decline in customers resulted in lost sales. Since then, convenience stores have altered their approach and began offering perks. The most popular are the cash-only discounts. Pay with cash and your price per gallon of gas is cheaper than if you paid at the pump.

On a larger scale, in the past decade, online shopping has soared through the roof. The internet has revolutionized how we shop. Companies have the tools to win customers and grab their attention through personalized marketing campaigns. By integrating customer data, targeted ads are sent in real time. Without leaving our home, we can browse, compare prices, shop ‘round the clock, and make purchases. It’s like having all of the world’s malls at your fingertips.

However, with the spike of online shopping and eliminating the human factor, the impact on retailers has, at times, been challenging. While retailers have kept up with customer demands and trends, there was a noticeable decline in sales. Retailers were forced to take a few steps back and face these challenges head on.

Could retailers reintegrate the human factor without infringing on the convenience of online shopping? Is it possible to reap the benefits of Omni Channel personalization in its entirety by doing this? Yes. By collecting customer data and creating a 360 degree profiles, companies became aware their customers wanted choices.

For starters, retailers needed to take a close look at how customers defined convenience. For some, it was ordering online and opting for ship-to-home. However, a percentage of customers preferred the Buy Online Pick Up in Store option. Why pay for shipping and have to wait for delivery when you could pick up your order after work?

With this in mind, retailers began shifting strategies making it easier for customers to buy online and pick up in store. It didn’t take long for in-store traffic and sales to increase.

Retailers jumped on board and began accommodating this trend. Apple launched their Personal Pick Up Program. Walmart provided their customers with an extended selection of products available for same day pickup. Last year, Macy’s rolled out their Buy Online, Pick Up In Store program. A handful of retailers, including Nordstrom and Macy’s, added a feature that combines online and offline inventories to offer their customers a larger selection.

Across the board, these retailers have taken in-store pickup to the next level by offering designated parking spots for in-store pickup, email and text notifications when your order is ready, Friends and Family pickup, and apps to arrange for curbside pickup.

Where will be a decade from now? Omni Channel is already paving the way. For the most part, we can only speculate. As we advance and leap forward in personalizing the customer experience, redefining the term “convenience” and customer relationship management, it’s important to keep in mind that completely extracting the human factor isn’t always going to work. When all is said and done, it’s all about balance.

29 Jul
2015

3 Killer Abandoned Cart Strategies

Marketers have found that on average, 67.45% of online shopping carts are abandoned before customers check out. That’s a huge number of missed sales, and that’s why abandoned cart remarketing was developed.

Traditional abandoned cart platforms operate on a simple logic: Set a trigger when customers leave your website without finishing their purchase. Trigger an email with product info. Rinse, repeat ad nauseum. This basic trigger is pretty much a ground floor requirement for eCommerce websites, but most of them are highly limited in their logic and don’t don’t utilize data from CRMs or Customer Data Management Platforms. They’re missing out on valuable opportunities to reach customers with compelling reasons to revisit their abandoned carts.

Here are three ways you can reconnect your customers with their carts by tapping into your customer data sources:

1. Trigger messages on previously abandoned items that go on sale.

Surveys report that the top 3 most common reasons for shoppers to abandon their cart are related to the price of their items. When you let your customers see an item that they’ve previously considered has gone on sale, it’s just another reason for them to reconsider their purchase.

Example: Trisha abandoned a pair of blue suede shoes 3 months ago, but now these shoes are on sale. We’ll send her a triggered message alerting Trisha that her shoes are on sale.

Requirements: customer purchase/abandon history integration, sales category for products for trigger

2. Product recommendations in abandoned cart emails

Example: Jasmine purchased a grey backless dress and abandoned her cart before checking out. Our software will send her a triggered message with her abandoned item along with additional products that may interest her, just in case she’s decided that the dress didn’t match her needs.

Requirements: depends on the complexity of recommendations…simple recommendations can simply be built from product hierarchy modeling (grey dress is in same category as several other dresses), more complex variations will need software capable of predicting customer needs by combining lifecycle, purchase, lifestyle, clicks, etc

3. Trigger abandoned cart emails to users that are anonymous

Example: Sarah has made an account before, but is browsing the website anonymously. She puts an item in the basket and abandons the cart. The system recognizes her unique ID and triggers an email.

Requirements: 1:1 digital tracking service required to attach unique id to known profiles, automation system to connect the dots, validate confidence, and fire message.

With a powerful enough system, you could probably pull off all 3 mentioned abandoned cart strategies for increased ROI. There’s still time for brands to utilize abandoned cart remarketing to the fullest, and newer, tested technology enables companies like NectarOM to build the capabilities needed for marketing personalization across the omnichannel frontier.

15 Jun
2015

Personalization: Making Customers Feel Like a Diamond in the Rough

Everyone loves feeling special.

This is obvious across almost all aspects of life. In the past few years, we’ve seen this concept strongly resonate with one group of people:

Marketers.

In the past three years, the idea of personalizing shopping experiences – both in stores and online – has taken off. Generalized messages and cold, impersonal marketing are in the past. Personalization is an integral part of CRM.

And for companies in the jewelry industry, personalizing is more important than ever. Because of a shift in purchasing power and increase of technology, today’s jewelry retailers must incorporate personalization into their marketing strategies if they want to make a strong impression on potential buyers. With personalization, jewelers can make their customers feel special – like a diamond in the rough. Without personalization, jewelers run the risk of becoming overshadowed by their tech-savvy, relevant competitors.

Why personalize now?

Most industries have already integrated personalization in their marketing strategies. But now, more than ever, is the best moment for leaders in the jewelry industry to start personalizing if they have not already. There are three key reasons that jewelers should be personalizing their marketing.

Today’s consumers expect marketing personalization. Millennials, the largest purchasing power, require their shopping experiences to have relevant content. According to an article in Entrepreneur, “Millennials want to know a company is paying attention to their specific needs.” The publication also stresses that, when it comes to marketing, “one size does not fit all” – size being a particular product. Companies need to give this powerful consumer group what they want; otherwise, shoppers will take their business elsewhere.
Everyone else is doing it. With nearly every industry catering to a specific customer’s needs, companies lacking the ability to personalize will stand out in the worst way possible. Companies with generalized marketing content do not resonate with consumers the same way that personalized marketing can. Personalization has the ability to speed up the purchasing process by providing relevant content and customer recognition. Think about it – if two jewelers offer similar products in quality and price, a consumer is more likely to purchase through the retailer that provides relevant content via personalization.
Jewelry sales need as much help as they can get, as consumers allocate their expenditures elsewhere. While diamonds and pearls used to be the sole representations of status and wealth, today’s consumers are using other types of products to make a statement. It’s no coincidence that jewelry sales have decreased while technology sales increase (think: smartphones, Apple Watches, et all). Jewelry is traditionally gifted to loved ones; however, today’s consumers now give the latest tech to their loved ones. While personalization may not stop consumers from purchasing products in other industries, it can still seriously improve a jeweler’s ROI. Aberdeen reports that personalized emails improve clickthrough rates by 14% and conversion rates by 10%, and 40% of consumers buy more from retailers that personalize a shopping experience across channels. Implementing personalization cannot prevent customers from buying new technology; however, it can attract more attention to the company and its products.

Personalizing in the Jewelry Industry

There are several ways retailers should implement personalization into their marketing. The following must-have features can make a customer feel like a company genuinely cares about their needs. And, when a customer feels this way, their loyalty to the brand increases.

High-end retailer Neiman Marcus offers shoppers a variety of recommended products to browse.

Relevant recommendations: One of the easiest ways to woo and win customers is to provide relevant recommendations. Janrain & Harris Interactive found that 74% of online consumers get frustrated when websites offer content that has nothing to do with their interests. In the digital sphere, marketers can use algorithms based off past purchases and clicks to determine what a customer may be interested in. A display of the potential buys can be displayed via email or on a website. When executed correctly, these recommended products show the customer you can cater to their specific tastes.
Nordstrom sends shopping cart abandonment emails to redirect traffic back to its site.

Shopping cart abandonment: With the ability to browse several ecommerce sites at once, it can be easy for customers to get distracted and forget about items in their shopping cart. According to Business Insider, approximately $4 trillion in merchandise will be abandoned in online shopping carts this year. Shopping cart abandonment emails can be the reminder or the final push a consumer needs to make a purchase.
Digital salespeople: Jewelry can be a tricky sell over the Internet. Sizing and fit is always a challenge when shopping online, and returns can be a hassle. To avoid losing customers across digital entities, companies can consider employing digital “salespeople” that can answer customer inquiries. These salespeople – or, rather, robots – have systematically generated responses to commonly asked questions from shoppers. Accessibility and transparency is important in any company, and digital platforms are no exception.
Seamless omnichannel: Retailers cannot personalize across one channel and completely ignore another. Synching customer profiles across all channels creates an ideal, omnichannel shopping experience. Consistency is integral to creating a convenient shopping experience. For example, if a customer starts shopping online and hopes to continue browsing while on the go via mobile device, a retailer should make this transition as easy as possible. Consider the format of retailer Revolve, which stores and synchronizes a customer’s favorites online and on mobile app.

Intrigued by the powers of personalization? Learn about NectarOM’s omnichannel personalization, or why we call personalization a long term investment.

09 Apr
2015

The Leaders in Beautifully Designed Smartphone Apps

When it comes to marketing across mobile, companies range in success. From poorly optimized web pages on mobile, to sites that take too long to load, some companies undoubtably struggle when shifting from brick-and-mortars or website to mobile devices.

However, some companies are leading the forefront of omnichannel efforts through their Smartphone applications. Through convenient apps that personalize shopping experiences, today’s strongest marketers are providing an enjoyable mobile shopping experience for customers.

We have evaluated today’s best Smartphone apps from some of today’s top marketers. Read on to learn who we’ve deemed Good, Better and Best in omnichannel marketing.

Good

Taco Bell: the right idea with questionable execution

Taco Bell is legendary – not just because of its cheap tacos, but because of its world renowned marketing, PR, and advertising strategies.

The most recent addition to Taco Bell’s marketing campaign is its highly publicized smartphone app. The app combines personalization and omnichannel marketing to make ordering a breeze for its patrons.

The app lets users find a Taco Bell closest to them with GPS. Users can order through the app – customizing any part of their meal, of course – and pick up their food in the store or drive-thru. Along with each menu item, a photo of the food is displayed. This gives users that added, necessary dimension to preview what they order before they actually receiving the item.

One of the strongest benefits of the app is that users can place and pick up a customized order on their own time at a location of their choosing. This makes the process convenient.

However, Taco Bell struggles with the “seamless” element of a truly omnichannel approach. When I used the app to order from my neighborhood Taco Bell, it took more than 10 minutes to receive the food I had ordered. At this rate, standing in line and placing my order “traditionally” would have been a faster option. An ideal Taco Bell app experience would eliminate unnecessary wait times.; otherwise, the Smartphone app loses its convenience and becomes pointless.

Better

Neiman Marcus: strong convergence of digital platforms

Neiman Marcus is not only a leader in luxury fashion, but in omnichannel marketing as well. Their new app Snap. Find. Shop. helps users find shoes and handbags with digital imagery. Users can take a photo of an item and use the app to find styles that are similar and available at Neiman Marcus. Photos can be taken of printed or “real-life” images. The app has been compared to a personal stylist, and shoppers love its convenience and efficiency.

Neiman Marcus is the first luxury retailer to use visual search technology. This new technology has helped the retailer drive traffic to physical store locations. The app is also particularly useful in ecommerce and mobile app purchases. When a shopper uses Snap. Find. Shop. on their mobile device, he or she can make their purchase in just a few more taps to their phone screen. These steps shave a significant amount of time off of the traditionally long shopping process. The efficiency that comes paired with Snap. Find. Shop. is memorable and groundbreaking.

Best

Walgreens: the unexpected winner of Smartphone apps

Walgreens is not the first company that comes to mind when thinking “omnichannel.” However, a look at their Smartphone app shows that Walgreens is a pro at utilizing multiple platforms seamlessly.

Several different functions in their app fuel a seamless mobile to brick-and-mortar experience. The app lets users refill prescriptions through their mobile, which is done by a quick scan of the prescription’s barcode. Shoppers can then run down to their nearest Walgreens to pick up their meds. App users can also set refill alerts to remind them to refill prescriptions if need be.

The Walgreens app also has a store locator, showing the user where they can find the nearest Walgreens. Once the customer is inside the store, he or she can use an item locator feature to find the exact location of a product. In the case that a customer does not want to walk about the store, he or she can opt for the web pickup or home delivery options.

With its variety of personalization elements and incorporation of multiple channels, Walgreens has one of the best apps for an omnichannel shopping experience. As consumers steadily depend more on mobile for making purchases, Walgreens is setting itself up for success.

Want to learn more?

Inspired by these innovative omnichannel pros? Learn how to go omnichannel over social media for even more great marketing ideas.

03 Mar
2015

Top Trends in Data

It’s 2015, and companies are finally getting the hang of data.

Big data has been around for years so it’s about time! More and more companies are using data to profile their customers to generate relevant products and marketing strategies. A study by Forbes and Teradata found that 78% of marketers are incorporating data into their marketing.

As companies explore the possibilities behind data analytics, we have noticed a few trends in the datasphere. Companies that choose to incorporate these trends in their marketing strategies may notice an increase in ROI and an edge over their competitors.

Unsiloing data

Companies are beginning to break down barriers in data sharing. Un-siloing data allows different departments to combine different data sets. A company’s entire stock of customer information may be stored in one simple Data Management Platform. This storage system makes finding, organizing and sharing information an easier, more efficient process.

For example, a company’s IT department may have an impressive set of internal customer information. That same company’s marketing department may have a large collection of CRM data. Companies that unsilo data pool together both sets of information, creating a single in-depth consolidation of data.

The larger data pool is beneficial to both IT and marketers, as the departments will have access to a more complete profile of their customers. This will help both departments provide a more accurate understanding of their customers, generating a more personalized, relevant shopping experience.

Privacy

Over the past year, information security and privacy has been a growing concern amongst the public. With big security breaches like the Sony hack and the iCloud celebrity photo scandal, privacy is a growing concern for many.

In response to public concern about security, companies must employ data protection and safeguarding into their data management. Companies that cannot confidently ensure that a person’s private information will stay private, the likelihood of data sharing will decrease.

Nordstrom clearly outlines its privacy policy to build trust between buyers and itself.

Additionally, easy-to-access privacy policies can increase trust between customers and a company. Provide an in-depth statement informing customers of their privacy rights can increase likelihood of sharing personal information.

Other than putting the public at ease, companies with protective measures in data management will have less risk at security breaches. Data encryption, multiple passwords and security audits may take a little extra and effort. But investing time into safeguarding customer information is vital to prevent big scandals and data breaches.

Data in Real-Time

Companies are beginning to use data in real-time to engage and connect with consumers. In the past, data has been used to create content for consumers, and is set to be viewed at a certain point in time.

Today’s marketers are integrating data and marketing strategies in real-time, to offer content that is even more current and relevant. This real-time marketing is commonly seen across social media platforms.

Nissan UK creates relevant messages by integrating real-time events into its social media marketing — Nissan UK also creates relevant messages by integrating real-time events into its social media marketing.

Google’s Fifa World Cup campaign is a prime example of real-time data integration. By analyzing Google’s search engine, data experts curated sharable images and facts for its users. This later fueled more discussion about relevant topics for Google users. This real-time analysis helps businesses understand why their target audiences share, engage and spread content.

As data analytics becomes increasingly popular, we expect that companies will employ a real-time data/marketing strategy similar to Google’s. Companies will begin to utilize social media more often, allowing their customers to share, engage and spread content easier.

More Personalization

Personalization has been a hot topic since data was first introduced to the marketing world. And, as more companies grow friendlier with data, feelings toward personalization are sure to follow suit.

Personalization increase also directly correlates with the shift of millennials as the largest purchasing power. As millennials are generally more open to sharing personal information, companies can adjust marketing to incorporate a more personalized, 1:1 marketing feel. A global study by SDL found that 46% of millennials are willing to provide personal information to businesses, in order to get rid of irrelevant marketing.

Netflix personalizes content by providing recommendations based off past interests. — Netflix – a millennial favorite – personalizes content by providing recommendations based off past interests.

As data continues to evolve, understanding where data is headed can be a big asset to companies. Anticipating changes in data and adjusting strategies accordingly can help your company stand out amongst competitors and remain a consumer favorite.

26 Feb
2015

Marketing Personalization: A Long Term Investment

With 94% of marketers agreeing “personalization of the web experience is critical to current and future success,” we know that personalization is an investment that yields impressive results.

However, personalizing content can take more effort than producing generic, robotic marketing content. Getting to know a customer’s habits and preferences can take time, and analyzing customer behavior may require a few extra resources from the marketer’s toolbox. Nevertheless, personalization is an investment worth making, as a 1:1 shopping experience yields dramatic increases in ROI.

How is personalization a “long-term investment”?

Companies might need to wait several months before seeing a significant payoff in any type of long-term investment. The time it takes for personalization to pay off varies, based on the amount of interaction a shopper has with a company. For example, the pay off for a consumer that purchases purchases from a company a few times each year is longer than the payoff of a consumer who buys from that same company a few times each week. The brand will subsequently have more opportunity to gather data about the frequent purchaser based on his or her purchases and will be able to use the applicable personalization techniques over time to increase revenue on the customer. The more you know about your customer, the better the payoff.

Why does personalization yield results?

Customers prefer personalization. Tailored content enhances a shopping experience and makes a customer feel special. 1:1 marketing improves loyalty, strengthens business-consumer relationships, generates leads, and attracts shoppers. This all leads to an increase in sales and ROI. With all of these potential benefits, marketers should be more than willing to invest a little effort into personalizing content for shoppers.

How do you get that payoff?

Investing in personalization is a three-step process. Marketers should practice the following steps for maximum ROI.

Collect customer data: Data is the backbone for a personalized marketing campaign. Companies can collect customer data with a Data Management Platform (DMP), and make adjustments to marketing strategies based on what customer data tells them. Companies can retrieve data by offering exclusive customer membership accounts, promising an exchange of personal information like name, address, and birthday, for special offers and discounts. Companies can also collect data from customers’ past searches or purchases in-store or online. After compiling this information, marketers can then…
Analyze customer data: Customer data analysis shows whether a marketing strategy is working or failing. By evaluating specific metrics, marketers can figure out their customers’ preferences. Each interaction between a consumer and a business contributes to their 360-degree customer profile. The more interactions a consumer has with a business, the more complete their customer profile will be. Complete profiles allow businesses to adjust their marketing strategies and provide relevant content for customers. With a customer profile, marketers can proceed to…
Create content based off of analysis and customer profiles: Once a company figures out which marketing messages their customers prefer, marketers can begin drafting personalized, relevant content. This tailored content may include products similar to past purchases, or special offers based on birthdays or location. Data analysis is reflected in every aspect of customer content – from a personalized subject line of an automated email to a list of recommended products on a website.

The collection, analysis and content development process should be a never-ending cycle. If companies slack on collecting customer data, marketers could miss important changes in customer preferences. This could lead to an inaccurate data analysis. Mistakes in data analysis – or neglecting to analyze data at all – can taint marketing content. And failure to adjust marketing messages can lead to a drop in sales, as nearly 75% of consumers dislike irrelevant content. Interested in learning a little more about marketing personalization? Check out some of personalization basics here.

22 Jan
2015

Overcoming Stress with Marketing Personalization

Marketing has never been easy, and 2015 is no exception. This year, marketers in every industry will face several new challenges and stressors. However, today’s marketers should banish all anxiety and confidently embrace these challenges head on with a marketing personalization strategy.

We have determined three common stressors for today’s marketers, which can all be solved by implementing marketing personalization techniques.

Adjusting to big shifts in target audience

For decades, the largest generation has been the baby boomers. Boomers have held the most purchasing power and have been primary targets in marketing campaigns. However, as Millennials begin to outnumber the boomers, there will be a shift in purchasing power. This shift might be stressful, as marketers will be forced to change marketing strategies to remain relevant to Millennials.

However, marketing personalization is the key to pleasing this new purchasing power. Personalization is one of the most important elements that Millennials want when being marketed to.

A Forbes article explains, “Millennials today are looking for relevancy…they want to develop relationships with brands that deliver a personalized, customized experience.”

While the shift in purchasing power might be unnerving for businesses, marketing personalization is exactly what businesses should implement to gain favor with Millennials.

Keeping up with technological advances

When it comes to making sales, marketing and technology go hand-in-hand. Over the past century, marketing has evolved with technology from simple print ads to broadcast and radio, broadcast and radio to the Internet, and Internet to mobile and social media. With several changes in a short span of time, marketers may be stressed about using the latest marketing technology to attract customers.

Embracing marketing personalization is the key to a successful transition into the newest development in marketing technology.

The newest development in marketing technology is the marketing cloud. Marketing clouds will connect engagement channels and create an omnichannel experience for customers.

An article from Forbes lists several ways that businesses can be the winners when using the marketing cloud. Personalization appears several different times, through recommendations like “map the end-to-end decision journey for each persona,” and “build and manage personalized experiences and campaigns across key touch points seamlessly.”

As businesses introduce the cloud into their marketing strategy, implementing marketing personalization will make this technological adjustment easier and more effective.

Meeting goals

Marketers stressing about meeting their businesses’ goals may be at an advantage when considering personalization strategies.

In 2014, a CMO report found that the top four marketing priorities for 2014 were customer acquisition, personalized experiences, customer engagement, and loyalty. With the implementation of a personalized marketing approach, successfully meeting these priorities should be easy.

Implementing marketing personalization obviously meets the personalized experience priority. However, personalization also plays a strong role in meeting the remaining three goals.

With the average human attention span approximately 8 seconds, companies have a small window of time to attract consumers. A personalized, tailored message can quickly grab a consumer’s attention – and keep it. Companies can also improve customer engagement by presenting relevant, personalized merchandise based off their past purchases and demographics. After continuously presenting relevant products to buyers, companies can expect brand loyalty to increase, as “most consumers (60 percent) expect businesses to know their preferences and understand their needs,” according to a CMS Wire article.

So if your business or marketing team is feeling stressed, ask whether you are using marketing personalization to its fullest extent.

If you feel like you could use a little marketing personalization help, learn how to get started and check out personalization strategy from the experts.

15 Jan
2015

Using Marketing Personalization to Tap into the Disconnected Consumer

Today’s consumers are bombarded with marketing. For consumers, the never-ending onslaught of marketing messages across digital and traditional marketing channels is a desensitizing experience, and customers quickly learn to ignore and filter marketing that does not instantly resonate with their needs.

Marketing personalization helps cut through the noise by smartly combining state of the art marketing tech with traditional marketing know-how. By personalizing a customer’s experience, disconnected customers quickly turn into engaged, loyal brand advocates.

Marketing personalization is the most important capability for marketers in years to come. 74% of consumers get frustrated with content that doesn’t appeal to their interests. Customers simply don’t have the time or attention span to sift through hundreds of marketing messages that aren’t personalized for them. Studies consistently show that personalized marketing increases various KPIs by significant amounts. One research brief found that personalized marketing improved clickthrough rates by 14% and conversion rates by 10%. Personalized content that targets an individual is more likely to receive attention and, as a result, increase revenue.

So, how can companies reach out to disconnected customers with a marketing personalization strategy? Companies can adjust their marketing strategies based on how personalization would be most effective for each individual customer. In most cases, personalized marketing either acts as an initial introduction to new products or is the final push a customer needs before finalizing their purchase.

Initial Introduction

I often receive emails from my favorite retailers announcing new products and special offers. Oftentimes this content is specifically tailored to my past purchases and buying behaviors. For example, consider the following email I received from Nordstrom. At the bottom of a confirmation email for new shoes I had recently purchased, Nordstrom listed other items that I might be interested in.

Nordstrom's recommended products for me, based off that first purchase — Nordstrom’s recommended products for me, based off that first purchase

Before receiving this email, I had no plans for shopping with Nordstrom in the near future. I was disconnected from the retailer. However, upon seeing the recommended apparel, I was intrigued. I had become reconnected with Nordstrom. And, a couple weeks later, I drove down to Nordstrom for a closer look at one of the products that had been recommended, which I later ended up buying.

Personalized birthday emails are another way to introduce disconnected customers to the retailer. A timely birthday email with special offers can create an opportunity for the birthday guy or gal to spend recently acquired gift money or gift cards on the retailer.

Final Push

Personalization can also be the final push a disconnected consumer needs when he or she has not completed a transaction. Abandoned cart emails are a perfect example of this. When a customer strays from a website leaving behind a shopping cart full of products, an automated email that checks in with the customer can lead to a completed sale.

Cart abandonment emails are a must-have for any online retailer. According to Salecycle, nearly half of all cart abandonment emails are opened and 1 out of 3 clicks result in a purchase made on site. These emails prod disconnected customers back to the website, reconnecting them with the retailer.

A Final Note

When considering disconnected customers, implementing omnichannel strategies is a must. Marketing personalization can appear across a variety of platforms. A customer who is inactive on email may be disconnected from a company via email. However, this customer may be accessible via SMS or social media networks. A customer that is not responsive to a certain channel should not be regarded as “disconnected,” as this could simply be a matter of channel preference. An omnichannel strategy can help distinguish truly disconnected customers.