Using Data to Meet Customer Expectations David M. Raab, CDP - PowerPoint PPT Presentation

Using Data to Meet Customer Expectations David M. Raab, CDP Institute September 25, 2019 Technology for Marketing

What do customers want?

What do customers want? Personalize my experience!

What do customers want? Personalize my experience! 78% are more loyal to brand that understands what they’re looking for 63% expect personalization as standard 90% will trade data for cheaper and easier shopping

What do customers want? Personalize my experience! Protect my privacy! 78% are more loyal to brand that understands what they’re looking for 63% expect personalization as standard 90% will trade data for cheaper and easier shopping

What do customers want? Personalize my experience! Protect my privacy! 78% are more loyal to brand that 86% are understands concerned what they’re about looking for data privacy 63% expect 90% fjnd personalization targeted as standard mobile messages annoying 90% will trade data for 79% say cheaper and brands easier shopping

Consumers are more willing to share personal data for no reason than to get personalized experiences. % would share data for generic vs personalized experience 100% 93% 91% 90% 90% 86% 85% 83% 82% 79% 79% 79% 78% 77% 77% 80% 76% 76% 76% 68% 70% 66% 63% 59% 58% 60% 56% 54% 51% 50% 40% 33% 33% 32% 31% 31% 31% 31% 30% 30% 27% 30% 26% 26% 22% 20% 20% 10% 9% 10% 0% generic Source: 2 nd Annual ARF Privacy Study, 2019

Consumers want personalized service, not personalized advertising Control Value Recommend

Use customer data to give customers what they want. Value Control Recommend

Great ultimately service is indistinguishable from great marketing.

Both need great data.

Uses for Customer Data Marketing • Targeted discounts • Product/ofger selection • Promotion timing • Channel preference • Privacy compliance

Uses for Customer Data Marketing Service • Targeted discounts • Tailored search result • Product/ofger selection • Streamlined purchase • Promotion timing • In-stock alerts • Channel preference • Proactive support • Privacy compliance • Easier returns

Uses for Customer Data Customers get: better experience Companies get: higher revenue, lower costs, greater loyalty

Getting Great Customer Data

Few Companies Have Great Data Customer Technology Approach 46% 27% 18% Source: Adobe/Econsultancy , 2019 Digital Trends 9%

Customer Data Requirements Sources • CRM • Email • Web site • Mobile • Orders

Customer Data Requirements Sources Types • CRM • Attributes • Email • Purchases • Web site • Behaviors • Mobile • Promotions • Orders • Consents

Customer Data Requirements Sources Types Quality • CRM • Attributes • Complete • Email • Purchases • Accurate • Web site • Behaviors • Current • Mobile • Promotions • Orders • Consents

Customer Data Requirements Sources Types Quality Process • CRM • Attributes • Complete • Ingest • Email • Purchases • Accurate • Clean • Web site • Behaviors • Current • Unify • Mobile • Promotions • Enhance • Orders • Consents • Share

Customer Data Requirements SOURCES PROCES DECISIONS DELIVERY SING Predi Load, Clean CRM CRM Meas ct Transf WEB ure Person Link orm WEB Orchest alize Data Aggre ORDERS MOBILE Budg rate gate Expo et Conte EXTERNAL se Segme DMP nt nt

Customer Data Requirements SOURCES PROCES DECISIONS DELIVERY SING Predi CRM CRM Meas ct Customer WEB ure Person WEB Data Orchest alize ORDERS Platform MOBILE Budg rate et Conte EXTERNAL DMP nt

Customer Data Requirements SOURCES PROCES DECISIONS DELIVERY SING CDP Predi CRM CRM Meas ct Features • All sources WEB ure Person WEB • All detail Orchest alize • Store ORDERS MOBILE indefjnitely Budg rate • Unifjed profjles et Conte EXTERNAL DMP • Open access nt • Real time • Identity

Customer Data Requirements SOURCES PROCES DECISIONS DELIVERY SING RealCDP Predi CRM CRM • All sources Meas ct • All detail WEB ure Person • Store WEB indefjnitely alize Orchest • Unifjed ORDERS MOBILE Budg profjles rate • Open access et Conte EXTERNAL DMP nt

Customer Data Best Practices

Best Practices Defjne needs based on goals.

Best Practices Check source & delivery systems. Biggest Obstacles to Better Customer Data Utilization Can't assemble unifjed customer data 63% Can't apply unifjed customer data in delivery systems 54% Can't extract data from source systems 47% Marketing stafg lacks time or skill 36% T echnology stafg lacks time or skill 34% Poor cooperation across organization 34% Budget is inadequate 26% Source: CDP Institute, 2019

Best Practices Consider a CDP (see www.cdpinstitute.org). CDP Status vs Martech Satisfaction 4.20 3.85 3.41 3.23 Source: CDP Institute, 2019

Best Practices Address organizational issues. Greatest Obstacles to Making Personalization a Bigger Priority Lack of personnel 46% Lack of budget 43% Lack of knowledge/skills 38% Lack of organizational alignment 32% Access to data 30% Poor technology solutions 28% IT department constraints 25% Too many technology solutions 24% Low quality data 23% Lack of executive sponsorship 20% Source: Researchscape International/Evergage, 2019 Trends in Personalization

Best Practices Deploy incrementally. Benefjts Expected From a CDP Create unifjed customer view 86% Improved predictive modeling and recommendations 59% Improved message selection and personalization 49% Improved orchestration of customer treatments across channels 49% Less reliance on IT resources 40% Access to otherwise-unavailable data 40% Improved data analysis and segmentation 39% Less time spent on data management 29% Improved message delivery 27% Faster response to changing data management needs 25% Source: CDP Institute, 2019

Best Practices Measure against long-term metrics. Primary Personalization Metric vs ROI 3x ROI 44% 31% 29% 22% 19% % Companies Using this Metric 11% 11% 11% 11% 9% Source: Monetate, 2019 Personalization Development Study increase customer loyalty increase customer lifetime value increase average order value increase conversion reduce bounce rate

Is It Worth the Trouble?

Great Data Makes a Real Difgerence Customer Technology Approach 46% All T op performers 30% 27% 18% 17% 13% Source: Adobe/Econsultancey , 2019 Digital Trends 9% 9%

Remember This Customers want great experience, not great marketing. reat experience requires great data. Great data is hard to fjnd. Best practices can help. So can CDP . It’s worth the efgort.

Thank You! David M. Raab draab@cdpinstitute.org www.cdpinstitute.org