Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer
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1 FOR: Interactive Marketing Professionals Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer by Ari Osur, April 25, 2012 key TakeaWays Brand Messages are Frequently sprinkled across Channels Without any Unique Customer Consideration Lack of direction weakens a brand s prominence in the mind of the consumer and unnecessarily lengthens the time to conversion. an integrated Targeting strategy delivers Messages That increase a Customer s likelihood To Convert Marketers can shorten the path to conversion and increase conversions by delivering time-sensitive and relevant information to consumers on an individual level. oreck implemented an integrated Targeting strategy and generated a positive Roi For its Media spend By aggregating past data and connecting the digital dots to create universal profiles for customers, Oreck was able to effectively retarget off-site, personalize the Oreck website at a user-level, and send behavior-triggered s, increase media spend by up to five times on a monthly basis, and generate a positive ROI. Forrester Research, Inc., 60 Acorn Park Drive, cambridge, MA UsA Tel: Fax:
2 April 25, 2012 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer by Ari Osur with Emily Riley and Elizabeth Komar Why Read This Report Oreck decided it was time to get smart about impression delivery across multiple channels. Working with partner Knotice, Oreck created a unified view of the customer to effectively target and deliver brand messages with improved relevance to each unique customer across multiple channels. Table Of Contents Oreck Targets Across Channels To Increase Media Spend ROI Oreck Needed To Integrate Channels To Increase Online Conversions Oreck Consolidated Data To Target Customers Across Channels Notes & Resources Forrester interviewed Oreck and Knotice. Related Research Documents The New Messaging Mandate January 9, The Results: An Integrated Approach Delivers Increased ROI What s Next: A Fully Customer-Focused Integrated Messaging Strategy 2012, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please clientsupport@forrester.com. For additional information, go to
3 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 2 Oreck Targets across channels To increase media spend roi Oreck, a midmarket manufacturer of vacuum cleaners and other cleaning appliances, conducts a large percentage of its sales via its website. Oreck s digital business is driven by five objectives: to acquire new customers, increase the number and quality of brand impressions, engage consumers and retain existing customers, guide consumers stuck in product consideration further down the purchase path, and to drive conversions. Oreck needed to integrate Channels To Increase Online Conversions Oreck wanted to improve its conversion rate by focusing on better coordination and measurement across digital channels, particularly display, , and paid search. Though Oreck treated its digital practice with channel agnosticism, the content of each impression was created, formatted, and approved for each channel individually. Impression placement lacked orchestration and the data informing each impression was based on a customer identity in a given channel only. Personalized targeting was difficult to achieve, and customer touchpoints lacked focus. Oreck partnered with service provider and on-site targeting vendor, Knotice, to understand the behaviors of online customers amid Oreck s digital ecosystem and figure out how to better target them across channels. Path level behavior proved that a positive relationship existed between the number of impressions served to a customer and the likelihood of that customer to convert. Even more significant was the lift achieved when consumers accessed these impressions brand messages across three or more digital channels. For example, the likelihood of consumers who accessed three brand messages via , display, and paid search to convert was 32%, versus the 4% likelihood of consumers accessing three brand messages on one channel alone. Oreck Consolidated Data To Target Customers Across Channels Realizing the relationship between number of channels and impressions to a customer s likelihood to convert, Oreck decided it was time to get smart about impression delivery across multiple channels. Oreck abandoned its channel-based efforts and took a unified view of the customer to effectively target and deliver brand messages with improved relevance to each unique customer across multiple channels. Oreck undertook the challenge in three phases. Phase One: Aggregate Past Data And Set Up The Infrastructure To Serve Future Needs The first phase of Oreck s journey involved studying past consumer behavior, examining the existing data and inputting it into Knotice Universal Profile Management System, Concentri. There were two key milestones in this phase (see Figure 1):
4 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 3 Aggregate and examine existing customer data. Oreck mobilized its internal IT team, web analytics provider, Abobe SiteCatalyst, and its interactive attribution provider, ClearSaleing, to assemble and scrutinize all existing data. This exercise enabled the Oreck team to re-examine the path-level behavior of its customers, identify the role of search in digital conversions, and prepare existing data for unification. Examining the data also helped Oreck determine the most effective messaging content for any specific customer-brand interaction. Unify data and connect the digital dots. Oreck and Knotice integrated all existing customer information, from order history to site behavior and activity, into Knotice s Universal Profile Management System, Concentri. During this step, Concentri codified existing customer data into known profiles and erected the infrastructure necessary to weave together anonymous individual consumer data into unknown profiles. By matching the data of existing customers to that of consumers who digitally touched the Oreck brand, the company created a robust warehouse of profile-centric consumer data. This, in turn, allowed it to break free from the fragmented channel-centric data organization structure that impedes the success of any integrated messaging initiative. Perched in a position to uniquely view each customer, Oreck then focused its efforts on integrating display, search, and , the three channels most important for driving traffic to the center of Oreck s digital ecosystem: the Oreck.com website. Figure 1 Knotice Inputs Existing Customer Information Into Universal Profiles Visited oreck.com twice for 34 page views. Spent 17 minutes on site, Last visit on Dec. 20. Did Google search for owner s manual for oreck orboter on Dec. 9. Gary from Tucson (Real Oreck customer) Received and opened 7 s. Last open on Dec. 20. Clicked 3 times overall. Engaged with Firefox on Windows XP. Made purchase for $96.87 on Dec. 20 Universal profile management Received 48 ad impressions. Last impression viewed on Dec Source: Forrester Research, Inc.
5 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 4 Phase Two: Focus Initial Efforts On Customizing The Ecosystem s Central Hub One of Oreck s most important digital objectives is to drive traffic to the company s website. The brand s site is its digital marketplace this is where the vacuums are sold and the loop is closed. Therefore, customizing the brand marketing experience on the site was a critical milestone in the journey. Oreck personalized the site in a number of different ways: Automated the personalization of each consumer s website experience. Oreck set up automated processes defined by specific user-level business rules and was able to personalize its website for each unique visitor. The site experience automatically changed as a result of the customer source, customer past behavior, on- and off-site behavior, and position in the path. Customized landing pages based on search terms and path position. Knotice helped Oreck establish content zones on the pages and applied display rules to manage the best messaging for each established segment. For example, if a consumer searched for an upright vacuum, the landing page of the Oreck.com website was personalized based on the search terms used. Offering this content via on-site display as opposed to through the site s content management system allowed Oreck and Knotice to cherry pick messaging content at a user level and in real time (see Figure 2).
6 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 5 Figure 2 Oreck Targets Consumer With Real-Time Relevance 2-1 Organic search yields many options for customer, customer selects sponsored ad Source: Google.com Source: Forrester Research, Inc.
7 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 6 Figure 2 Oreck Targets Consumer With Real-Time Relevance (Cont.) 2-2 Landing page is customized based on customer source Oreck s landing page is customized based on customer source, search terms, and past browsing behavior. Source: Oreck.com Source: Forrester Research, Inc.
8 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 7 Figure 2 Oreck Targets Consumer With Real-Time Relevance (Cont.) 2-3 Customer is retargeted across the web based on previous behaviors Source: Eater.com Source: Forrester Research, Inc.
9 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 8 Phase Three: Integrate Off-Site Touchpoints And Orchestrate Messaging Flows With a personalized site experience in place, Oreck s next challenge involved weaving together all off-site digital touchpoints and getting smarter about its messaging flows. By applying a quid pro quo mindset to impression delivery, consumers interacted with specific brand messages when particular conditions were met. There were two key steps in the third phase: Deliver display ads based on consumer s path position. The customer-focused approach gave Oreck the ability to successfully retarget display ads to specific consumers with improved relevance. Working with display vendor, TruEffect, and behavioral retargeting provider, mediaforge (see Figure 3). Oreck was able to use cookies to serve retargeted display ads to consumers based on their unique path position, search, and on-site behaviors, such as cart abandonment and products viewed. Rollout triggered campaigns. Oreck sent triggered s based on consumers display and search behaviors. The message and offer presented within the will vary based on where the customer abandoned the Oreck website and what products were left in the customer s cart upon leaving. If the customer abandoned the site at checkout, they would receive an offer right away. If abandonment was before checkout, the customer would receive a series of s highlighting the products they spent the most time researching and browsing. Figure 3 Oreck s Personalized Targeting Strategy Required Collaboration Across Vendor Categories Vendor category Company Vendor s role Web analytics provider Adobe SiteCatalyst Tracks browsing behaviors and provides customer insights. Interactive attribution vendor service provider and on-site targeting vendor ClearSaleing Knotice Measures the contribution of channels and marketing sequences on conversions, and helps drive search term bidding decisions. Integrated data and managed profiles. Responsible for customer segmentation, content decisioning, assembly and delivery, and on-site display targeting. Display vendor TruEffect Manages Oreck s display activity and spend. Uses first party cookie technology to build lookalike models. Behavioral retargeting provider mediaforge Retargeted consumers with display ads cross channel. Able to customize in -ad messaging, offers, and design Source: Forrester Research, Inc.
10 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 9 The Results: An Integrated Approach Delivers Increased ROI After the shift to a more customer-focused approach, Oreck s integrated digital strategy proved valuable across qualitative and quantitative measures. The shift has enabled Oreck to: Generate a positive ROI. Oreck.com has generated 10 times more revenue since implementing the initiatives described in phase two and phase three. In addition, Oreck can now optimize its media spend more efficiently. Since May 2011, Oreck increased media spend by up to five times on a monthly basis and still maintained a positive return. In fact, monthly ROI was as high as 184% compared to the baseline. Improve processes. By partnering with Knotice, Oreck was able to minimize campaign complexity with automation and fewer messaging partners. The company s digital messaging campaign strategy is refined and nimble in its execution. Streamlining messaging platforms under one messaging partner enabled Oreck to improve campaign optimization, maintain a higher degree of data fidelity, and view the customer from one vantage point. Improve the customer experience. Messages and impressions are targeted cleverly and delivered with the customer in mind. Since May 2011, the time to close a lead has decreased significantly and there has been a decrease in abandoned shopping carts. The customer finds what she is looking for with improved alacrity and ease. What s Next: A Fully Customer-Focused Integrated Messaging Strategy Oreck plans on improving and building on the unified view of its customers to not only effectively target them, but to implement the customer-focused integrated messaging framework. 1 The CFIM framework will enable Oreck to coordinate communications across channels and platforms, driving desired behaviors, improving outcomes, and maximizing value for customers and marketers. Planned initiatives along the journey to CFIM include: Optimize, improve, and amplify entries in universal profile storehouse. Oreck will continue to create unified profiles for all leads and add data to existing profiles to view its customers with real-time relevance. Utilize preference center data to further customize messaging delivery. Oreck will offer multiple channel delivery options in its preference centers that will allow customers to pick a messaging experience that complements their own digital consumption and device usage. Oreck will leverage that data to customize each customer s messaging experience. Bake cross-channel testing into everyday operations. To optimize the messaging experience in real-time, Oreck will continue to work with Knotice to improve its cross-channel testing processes. The goal is to automate and execute cross-channel testing to determine and deploy winning versions without significant manual intervention.
11 Case Study: Oreck Improves Media Spend ROI By Taking A Unified View Of The Customer 10 Endnotes 1 For more about the customer-focused integrated messaging (CFIM) framework, see the January 9, 2012, The New Messaging Mandate report.
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