Resources

Definitions

Agile Marketing: Ability to track customer responses, adjust campaign and re-execute on near real-time

RFM: Recency, Frequency and Monetary

Transient: New or occasional shoppers, gifters, disengaged consumers, who are not conscious about retailer's brand. This segment is a huge opportunity for Retailers in acquiring new consumers. Industry standard shows 50% to 65% are transient customers.

Courtship: Second stage of the conversion cycle of customer acquisition. Customer Retention cycle starts from this segment. 20% to 30% fall under this segment based on retailer.

Engaged: Consumers in this segment have at least 1 year purchase history with rich RFM balance. They are brand conscious and activated rewards points.

Loyal: Loyal consumers are brand ambassadors and have maintained richest RFM in consecutive 2-3 years. Majority of those consumers in this segment are price sensitive and enjoy loyalty cards. 5% to 10% fall under this category.

Dynamic Segmentation: Every consumer can fall into different segmentation groups based on their purchase history, social and demographic behavior. The process of creating multiple personas of consumers for understanding their predictive behavior is termed as dynamic segmentation.

Segmentized Recommendation: Segmentized product recommendation profiles consumer's choice based on their grouping. This modeling explores techniques for matching people with similar interests and making similar recommendations.

Consumer Response Tracking: Predictive Modeling based on consumer's response towards marketing communication, social response and purchase behavior.

Personalized Recommendation: Individual product recommendation is based on analyzing individual consumer preferences, seasonal and transaction pattern.

Frequently Asked Questions (FAQ)

1. As a marketer, I am investing heavily on multi-channel. How can ConnectCust help me beyond Brick and Mortar?

ConnectCust would improve consumer segments and provide recommendations and meaningful target messaging for consumers irrespective of their preferred channels to buy. Our Marketing intelligence engine generates proper customized messages for individual consumer to impact their decisions on path to purchase. ConnectCust's mapping engine with its powerful linking logic connect the Multichannel consumer as single entity. Our cadence and content management engine transforms marketing campaigns through broadcasts based on consumer behavior and data science. So, we are in-line with multi-channel vision and strategy

2. How does ConnectCust integrate with channel specific promotion and personalization engines that I have?

ConnectCust promotion engine will import all promotions declared for different channels and our campaign process is capable of generating different campaigns for different channels and apply personalization while creating target messaging for specific campaigns.

3. How do you deal with recommendations for product sub-categories and how do you deal with product associations?

ConnectCust recommendation engine is using sub-category level associations and creating product basket for personalization

4. How do I measure effectiveness of your segmentation and recommendations?

ConnectCust has clear segmentations to show the engagement levels with consumers. Our Dashboard will display reports based on shift of consumers from one segment to another in the ladder through marketing intelligence recommendation engine. Reports will display performance of each segments and movement trends.

5. How do you deal with customizations to your product to handle dependencies on our IT systems?

ConnectCust needs:
Customer and transaction data from different channels
Links to image bank for each sub category and brand
Access to image links while declaring/importing promotions to ConnectCust promotion engine.

6. I am a multi-brand retailer, can ConnectCust help building cross-brand recommendations?

Definitely Yes. ConnectCust is maintaining relationship between Brand and Sub-categories. Each sub-category could be attached to multiple brands using this product and cross-brand recommendation is possible through that feature.

7. How do you deal with demographic preferences and competitor data?

Demographic preferences and competitor data analysis are available as add-on features. ConnectCust is capable of integrating demographic parameters and generating comparison reports with competitors.

8. What can you support in your email and text feeds? How about online coupons , QR codes etc?

ConnectCust engine will recommend name, campaign id and sub-category/brands list based on customers need . Our feeds will be for the email providers or text message providers. For text messages, we will provide a link which can be opened on a dynamic page [generated by ConnectCust SMS engine] in the mobile browser with the list of recommended product list exclusive for the consumer.

9. I am getting Product Recommendation in my digital channel. How is ConnectCust different from that?

Product Recommendation through digital channels are mostly generic and based on the last product purchased by the consumer. Market Basket is created without considering customer's profile. Connect Cust approach is top -down where we create Product Basket using different personas generated from dynamic segmentation.

10. Right now we able to generate key matrix (ADS[average daily sales], Visits, transactions )based on which we are able to understand customers needs. What is the value add ConnectCust Reporting?

ConnectCust's main objective is customer oriented marketing campaign. ConnectCust has divided customer's journey from transient to a loyal consumer in four different segments and showing how they are performing in each quarter. Instead of checking the health of entire consumer base, ConnectCust shows performance of consumer base at each level of engagement – it helps to track the lift in revenue due to compartmentalized customer engagement and to understand consumer health in a more accurate way.
Our company is not storing customer information. Can ConnectCust help me to create personas and target messaging?

11. Our company sale through dealers or franchisees, we don't have direct retail outlets and we do not have adequate consumer data. Can ConnectCust help us?

ConnectCust works on advanced analytical methodologies – where basic requirement is consumer/customer data. ConnectCust will not be able to create model without basic consumer data.

What's the Buzz?

1. 5% increase in customer retention can increase business profits by 25% - 125%
[Ref: Gartner Group and "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy]

World-class customer experience needs to be created at every point of contact. This is required to secure retailer's survival for future generations. They have no choice but to join the Big Data revolution.
[Ref: Gartner Customer 360 Summit 2014]

2. 68% of customers leave you because they perceive you are indifferent to them
[Ref: http://www.retentionofcustomers.com/Customer_Retention_Ideas_Report_DC_Version.htm]

3. 93% of adult Americans said that a company's reputation for honesty & fairness is extremely important to them
[Ref: Gallup poll for the Better Business Bureau 2007]

4. Companies that applied data driven outperformed peers by 85% in sales growth and more than 25% in gross margin during a recent one-year period (On control group of 10 companies)
[ref: Gallup research]

5. Companies that prioritize the customer experience generate 60% higher profits than their competitors
[Ref: Gartner Group and "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy]

6. Only 14% of marketing leaders deliver personalization across channel. There is huge potential of growth.
[Ref: Forester research]

7. 83% of the retailers believe that consumer behavior can be influenced by future marketing efforts focused on combination of mobile, websites, applications and social media channels.
[Ref: Forester research]

8. Email, call centers, and websites are the key customer interaction channels today. But future lies across all channel - interaction including Mobile.
[Ref: Forester research]

9. 86% of US & European consumers say their trust in corporations has declined over the last 5 years
[Ref: Cited in "A Complaint is a Gift" ]

10. Satisfied customers tell 9 people how happy they are
[Ref: http://www.allbusiness.com/sales/customer-service/1096122-1.html]

11. A commitment to customer experience results in up to 25% more customer retention and revenue than sales or marketing initiatives
[Ref: Gartner Group and "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy]

12. 80% of your future profits will come from just 20% of your existing customers
[Ref: Gartner Group and "Leading on the Edge of Chaos", Emmett C. Murphy and Mark A. Murphy]

13. Repeat customers spend 33% more than new customers
[Ref: Laura Lake]

14. Average dissatisfied customer will tell 11 others about their experience
[Ref: The Sydney Entrepreneur Centre]

15. Research shows that company spends on improved customer service, see a return on investment of 34% to a massive 400%
[Ref: www.sarocks.co.za]

16. A 5% increase in customer retention can increase a company's profitability by 75%
[Ref: http://www.bain.com/bainweb/Consulting_Expertise/capabilities_detail.asp?capID=102]

17. Most consumers are not pre-decided about their purchase and visit retail stores with ambiguity in mind. Their shopping habits influenced by 61 percent once they entered store. 32 percent of shoppers change their mind about purchasing items while researching via mobile while they are present inside store.
[Ref: Tradedoubler Research]

18. 80% of companies believe they deliver a superior customer experience, but only 8% of their customers agree
[Ref: Bain & Company from Harvard Management Update]

Marketers Must Overcome Personalization Challenges To Drive Results

Marketers consistently agree that increased personalization has the potential to drive revenue, conversion rates, and other key business metrics. However, they are not consistently able to personalize experiences across all channels.Furthermore, they are currently less capable of bringing personalization to newer channels such as mobile and social media. More specifically, they told us that:

Personalization has the potential to increase traffic, conversions, and average order value. Surveyed marketers currently believe that personalization capabilities can improve a variety of business metrics. More specifically,75% of respondents stated that personalization could have a significant or very significant impact on their customer retention rate, 75% said the same about lifetime customer value, and 71% gave the same rating to conversion rates (see Figure 1).

Technology constraints frustrate today's personalization. Survey respondents bemoaned the fact that customer-specified preferences and past interaction history alone drive current personalization capabilities. Specifically, 80% of marketers stated that they currently use only customer-specified preference data to personalize customer experience on some or all channels.

Marketing Leaders Long For Contextually Sensitive Personalization

Our respondents described their aspirations to offer more contextually sensitive real-time personal experiences in the next few years. We heard that senior marketing executives:

Focus current personalization initiatives on customer-specified preferences and past interaction history. Customer-specified preferences are the leading method of personalization; 80% of marketing executives currently use them in some or all interaction channels. In addition, 68% of marketers,personalize current customer interactions based on past customer interaction history. Other commonly used personalization methods used by nearly 60% of firms in some or all of their interaction channels are based on the time of day or day of the week of customer interactions.

Expect a huge rise in personalization using consumer's emotional state, social media sentiment, and context. Only 29% of respondents claim today to use inferences about the consumer's emotional state in some or all channels. But 53% expect to do this in two to three years' time. Only 52% of marketers currently use sentiments that consumers express in social media to personalize interactions today, but fully 79% expect to do this in two to three years. In addition, only 54% capitalize on the consumer's current contextual behavior, but 77% expect to do so in two to three years' time.