The Modern Marketer Understanding data science and the - PowerPoint PPT Presentation

The Modern Marketer Understanding data science and the multi-channel, multi-device shopper Ben Glynn Managing Director, Emarsys SEA @Emarsys

The challenges all modern retailers face • Identifying more contacts, collecting more data • Reaching more contacts • Utilizing machine learning and crowd wisdom • Blending offline and online into one unified experience • Matching experience to the channel • Applying automation and decision-making • Discovering the most profitable customers • Maximizing investment efforts • Utilizing intelligence to maximize lifetime value @Emarsys

Broken Marketing Experience! DATA AND CHANNEL SILOS Activity Focused Marketing

REASON? Broken Customer Experience! Display Store SMS Push Web Email Social

Broken Marketing Experience! DATA AND CHANNEL CONSOLIDATION OUTCOME FOCUSED STRATEGY

Case Example: Singapore Customer Data Benchmark How to Achieve Average Open Rate 16.7% Average Click Rate 4.7% Ave order size SGD 120 Profit Margin 20% ( SGD24) Cost of Acquisition SGD 40 Profit on first time purchase SGD -16.00 Website Conversion Rate 1.66% Email Conversion Rate 3.43% Number of repeat vs first time purchasers Unknown Churn Rate Unknown LTV Unknown

The leaky bucket

Frequency Results (3 years of data) FREQUENCY REVENUE 28. • Recurring buyers First Time Recurring First Time Recurring 96 spend over 5X more than first time buyers % on average 22% • Convert first time 78% buyers to recurring customers to 71. significantly improve 04 revenue %

Recency Analysis (3 years data) RECENCY REVENUE 18. 11 • Majority of customers % 3% 31.1 are either lost or starting to lose 7% • 81% of the revenue 43 over last 3 years % contributed from lost/almost lost customers 46 • The business must 50. Active % Active acquire more than they Defecting Defecting 52 lose, or drastically Inactive Inactive change their strategy % to a retention focus

Monetary Analysis (3 years data) 300,000 • Managing customers 250,000 by their spending status is essential , 200,000 particularly for those few high spenders. 150,000 • Customer spend is 100,000 varied - a small group (14.93%) of customers contribute over 68% 50,000 of the total revenue 0 Low Normal Silver Gold Platinum Contacts Revenue

Emarsys Recommendations Increasing 1 st Defecting Segment by to 2 nd Spending customer Status/Loyalty prevention Purchase rate 11

Understanding the customer lifecycle INCREASE CUSTOMER LIFETIME VALUE REVENUE Engage & Grow ACTIVE CUSTOMERS Increase 2 TIME retention and win back inactive customers 3 Convert 1 more leads LEADS FIRST-TIME BUYERS ACTIVE BUYERS DEFECTING CUSTOMERS @Emarsys

Example – ‘Outcome’ focused Abandoned Shopping Cart Increasing 1 st to 2 nd Purchase rate

Select Our First time Buyers Segment

Finally made a purchase! Engaging Jane Not responding … Not responding... Jane

Engaging the first time buyer, Jane Check out your items with the discount before it expires! Check out your items with the discount before it expires! Forget something? Check out your special offer. Buy $15 1 get 1 free! DISCOUNT slide to view message

Engaging Jane when she’s not 1 st time Your Black Dress is running out of stock. Make sure you bring it Check out your items back home! with the discount before it expires! $10 OFF $50 $10 DISCOUNT DISCOUNT

Engaging Jane with mobile push notification First time Normal Jane buyer Jane Don’t forget to checkout Forget something! Check out your welcome special your Lovely Black Dress! It’s running out of stock! offer. Buy 1 get 1 free! slide to view message slide to view message

Engaging Jane with email First time Normal Jane buyer Jane Your Black Dress is Check out your items running out of stock. Make with the discount sure you bring it back before it expires! home! $10 OFF

Engaging Jane on Facebook First time Normal Jane buyer Jane Black Dress is running Check out your items out of stock. Make sure with the discount you bring it back home! before it expires! $10 $15 DISCOUNT DISCOUNT

Results overtime: Revenue impact by purchase stage (Before) Close to 80% of all revenues from single purchase customers

Results overtime: Revenue impact by purchase stage (after) Now (50%+) revenues generated from repeat customers & increasing

01 Omnichannel personalization – automate and personalize @Emarsys #TrustTheMachine

The Emarsys Approach Retention CAPTURE DATA UNIFY ANALYZE PERSONALIZE ACROSS AUTOMATE CHANNELS UNIFIED DATA SCIENCE PROFILE BASED ACTIONABLE INTELLIGENCE Personalization Layer COLLECT TRANSFORM EXECUTE Conversion

Take action across customer lifecycle 1. Customer 2. Known active customer 3. Known inactive customer BIRTHDAY / ANNIVERSARY 4. Lost customer STATEMENTS LOYALTY OFFERS CROSS SELL / UP SELL Brand interaction 2 2 2 2 WELCOME BACK NEWSLETTERS EARLY DORMANCY NOTIFICATION 1 SURVEY 3 2 RE-ACTIVATION PROGRAM 1 1 3 INTRODUCTORY OFFERS 1 3 LOST CUSTOMER SURVEY / OFFERS WELCOME PROGRAM 1 4 Time

Post Store Purchase Purchased offline Send email Include treatment / recs / near offers Revenue attribution

Abandoned Store beacon enabled Exit detected Did not purchase Send email Include treatment / near offers Revenue attribution

Returned goods recovery Returned goods Send email include treatment / related recs / near offers Revenue attribution

A personalized customer experience: Decathlon @Emarsys #TrustTheMachine

The Solution Data Integration + Purchase Analysis + Customer Lifecycle execution + Recommendation technology @Emarsys #TrustTheMachine

Automated Lifecycle Programs Post Purchase Birthday Welcome Abandoned Cart Win Back First Time Buyer Abandoned Browse @Emarsys #TrustTheMachine

How does that look on the lifecycle? 1. Customer BIRTHDAY / ANNIVERSARY 2. Known active customer 3. Known inactive customer STATEMENTS LOYALTY OFFERS 4. Lost customer CROSS SELL / UP SELL Brand interaction 2 2 2 2 WELCOME BACK NEWSLETTERS EARLY DOMANCY NOTIFICATION 1 SURVEY 3 2 RE-ACTIVATION PROGRAM 1 1 3 INTRODUCTORY OFFERS 1 3 LOST CUSTOMER SURVEY / OFFERS WELCOME PROGRAM 1 4 Time

The result 50%+ 120%+ 748% Total website revenue Increase in revenue ROI after five weeks Through retention channels from repeat purchases of implementation @Emarsys #TrustTheMachine

The Modern Marketer Understanding data science and the multi-channel, multi-device shopper Ben Glynn Managing Director, Emarsys SEA @Emarsys