POP QUIZ: DOES YOUR DIGITAL MARKETING MAKE THE GRADE?
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1 POP QUIZ: DOES YOUR DIGITAL MARKETING MAKE THE GRADE? Do you plan to allocate significant marketing dollars to digital next year? Can you identify your prospects and customers across channels? Do you know which of your marketing efforts have the biggest influence on shopper behavior? Are you effectively reaching shoppers via mobile devices? Are you effectively reaching shoppers via social media advertising? Can you attribute sales to specific channels? Is your advertising personalized and relevant for each customer who sees it? Can you measure overall marketing impact across all channels, online and offline? GIVE YOURSELF A GRADE. HOW DO YOU RATE YOUR MARKETING EFFORTS? Copyright 2015 Neustar, Inc. All Rights Reserved 1
2 MAKING THE DIGITAL MARKETING GRADE IN AN OMNICHANNEL WORLD the e-tailing group
3 Thank you for attending today s webinar!» Conferencing Issues Check the volume on your speakers. Audio is provided via VoIP. For additional help topics, click the Question Mark icon at the bottom of your screen.» Submit Questions for the Q&A Click the Q&A widget at the bottom of your screen to submit questions Neustar, Inc. // All Rights Reserved
4 TODAY S SPEAKERS Jamie Ray Executive Director, Retail, Neustar Lauren Freedman President, e-tailing group Copyright 2015 Neustar, Inc. All Rights Reserved 4
5 THE VOICE OF CROSS-CHANNEL MERCHANDISING STRAIGHT TALK FROM IN-THE-TRENCHES ONLINE MERCHANDISING EXPERTS 20 years e-commerce consulting Author, It s Just Shopping 50+ years traditional retail and catalog experience Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging Projects spanning retail landscape with global coverage Proprietary research studies on mystery shopping, merchandising, mobile, omnichannel and consumer behavior Copyright 2015 Neustar, Inc. All Rights Reserved 5
6 METHODOLOGY & DEMOGRAPHICS 1020 consumers 25-question online survey in 2Q 15 50% female/50% male Spent at least $250 online Purchased online at least 4X annually Owned a smartphone AGE ANNUAL HOUSEHOLD INCOME % Under $25,000 10% % $25,000-$35,000 $35,001-$50,000 11% 19% % $50,001-$75,000 24% % $75,001-$100,000 16% % $101,000-$200,000 More than $200,000 2% 15% Prefer not to answer 2% Prefer not to answer 3% Copyright 2015 Neustar, Inc. All Rights Reserved 6
7 HOW RELEVANT DO YOU FIND DIGITAL MARKETING? ONLY 7% OF CONSUMERS GAVE YOU AN A A=the majority of the retailer marketing I receive is on target/relevant 7% B=most of the of retailer marketing I receive is on target/relevant 24% C=half of the retailer marketing I receive is on target/relevant 36% D=some of the retailer marketing I receive is on target/relevant 24% F=most of the retail marketing I receive is not on target/relevant 9% Copyright 2015 Neustar, Inc. All Rights Reserved 7
8 THE RETAIL MARKETING DILEMMA Shoppers are channel agnostic Retailers need to accurately track their evolving customer journeys? SO Copyright 2015 Neustar, Inc. All Rights Reserved 8
9 JUST LOOK AT TODAY S CUSTOMER JOURNEY Top Influencers on a Customer s Decision to Shop Friends/Family In-store visits Coupons/Discounts 78% 76% 76% TV/Radio 65% Direct Mail Newspapers and magazines Personalized s Generic s Social Media Ads Search Engine Ads 55% 55% 54% 50% 46% 46% Banner Ads on Content Sites Billboards SMS from Retailers Mobile Ads Ads that follow you from site to site 33% 30% 29% 28% 28% Copyright 2015 Neustar, Inc. All Rights Reserved 9
10 MARKETING SUPPLIES AND BUDGETS SHOULD BE ORIENTED TOWARDS THE ALWAYS ON DIGITAL CUSTOMER $ DIGITAL SPEND Digital spend is on the rise up 5% between October 14 and June 15 (Standard Media Index) READING ADS Retailers will spend nearly twice as much as any other industry on mobile advertising in 2015 (emarketer; 2015) VIEW RETAIL ADS Customers will read and click on more ads online as 1 in 5 shoppers plan to view more retail advertising in the coming year Copyright 2015 Neustar, Inc. All Rights Reserved 10
11 TO ACE MARKETING, RETAILERS MUST MASTER 5 KEY SUBJECTS Copyright 2015 Neustar, Inc. All Rights Reserved 11
12 1. START WITH FUNDAMENTALS PUT DIGITAL DOLLARS WHERE CUSTOMERS ARE Most consumers say they read at least 26% of advertising when it s present These numbers get a bump if we re talking about millennials 2x 3x 2x 2x Ads seen multiple times get TWICE as many clicks. Personalized ads can get as much as THREE TIMES the number of clicks. TWO TIMES as likely to look at ads shown TWO TIMES more millennials plan to view more advertising on a mobile device Copyright 2015 Neustar, Inc. All Rights Reserved 12
13 2. ALWAYS ON MARKETING: THE KEY TO RAISING YOUR GRADE Be Where Customers Are Be Speedy Retailer Advertising Receives Strong Attention 2/3 1/3 1/5 2 out of 3 U.S. smartphone users check their phones within 15 minutes of rising and going to bed Shoppers quickly make purchases (often within hours or the same day) 1 in 3 shoppers clicked on a retailer's ad 1 in 5 shoppers plan to view more retail advertising in the coming year Copyright 2015 Neustar, Inc. All Rights Reserved 13
14 3. DO THE MATH: MOBILE MATTERS. Which Research Device is MOST Important to You? Where is the Last Advertising You Look at Before Making a Purchase? Laptop/PC/Desktop 43% Desktop/Laptop 52% 64% Smartphone/Tablet 37% Mobile 26% 24% Television 15% 7% 14% Low Consideration Print (Newspapers, Magazines, Catalogs) 5% Social 8% 5% High Consideration Copyright 2015 Neustar, Inc. All Rights Reserved 14
15 MOBILE MATTERS (CONTINUED) Thinking About the Last Three Months, How Often Did You do Each of the Following via a Mobile Device (e.g. smartphone or tablet)? Researched Products on Your Mobile Phone Prior to Visiting a Store 42% Searched for a Retail Coupon for Purchase Online 38% Searched for a Retail Coupon for Purchase in the Store 37% Researched Products and Alternatives on Your Mobile Device During a Store Visit 33% Copyright 2015 Neustar, Inc. All Rights Reserved 15
16 MOBILE MATTERS (CONTINUED) Thinking About the Last Three Months, How Often Did You do Each of the Following via a Mobile Device (e.g. smartphone or tablet)? Researched products on your mobile device prior to visiting a store Searched for a retail coupon for purchase online Searched for a retail coupon for purchase in the store 38% 37% 42% Researched products and alternatives on your mobile device during a store visit Clicked on a retailer's ad Clicked on a retailer's ad and subsequently visited their physical store Opened an from retailers on your mobile device and made a purchase in store Purchased products on your mobile device Opened an from retailers on your mobile device and made a purchase on your mobile device Purchased products as a result of a text message sent by a retailer Purchased products on your mobile device during a store visit 33% 30% 25% 24% 24% 22% 18% 17% Almost 1 in 3 shoppers have clicked on a retailers ad Retailer ads drive omnichannel behavior for 1 in 4 consumers Copyright 2015 Neustar, Inc. All Rights Reserved 16
17 THINK IN TERMS OF DIGITAL INFLUENCE What Channel is Influential on a Customer s Decision to Research a Product? 46% SOCIAL MEDIA ADVERTISING 50% GENERAL Copyright 2015 Neustar, Inc. All Rights Reserved 17
18 4. UNDERSTAND OFFLINE IMPLICATIONS 75% 25% 3 in 4 shoppers rank in-store visits as being very influential in prompting research on a product. 1 in 4 consumers who click on a digital ad subsequently visit the advertiser s physical store. Want customers to share their location with you when they re near stores? Start by offering inventory information and discounts/promotions online. Copyright 2015 Neustar, Inc. All Rights Reserved 18
19 5. MAKE YOUR ADS RELEVANT, OR RISK LOSING YOUR CUSTOMERS 69% OF CONSUMERS SAY RETAILERS ADS ARE NOT RELEVANT OR ON TARGET. So how do marketers get to that A? Copyright 2015 Neustar, Inc. All Rights Reserved 19
20 IF YOU JOINED US LATE, PLEASE TAKE A FEW MINUTES TO ANSWER THE FOLLOWING QUESTIONS. WE LL BE SHARING RESULTS AT THE END OF THIS WEBINAR. Do you plan to allocate significant marketing dollars to digital next year? Can you identify your prospects and customers across channels? Do you know which of your marketing efforts have the biggest influence on shopper behavior? Are you effectively reaching shoppers via mobile devices? Are you effectively reaching shoppers via social media advertising? Can you attribute sales to specific channels? Is your advertising personalized and relevant for each customer who sees it? Can you measure overall marketing impact across all channels, online and offline? GIVE YOURSELF A GRADE. HOW DO YOU RATE YOUR MARKETING EFFORTS? Copyright 2015 Neustar, Inc. All Rights Reserved 20
21 THE $2.2 TRILLION QUESTION: Why is Omnichannel Marketing So Hard? Copyright 2015 Neustar, Inc. All Rights Reserved
22 #1 THE MARKETERS IDENTITY CRISIS 1. CONSUMER INFORMATION IS 2. MASSIVE INCREASE IN THE QUANTITY CHANGING FASTER OF DATA 75 MILLION 45 MILLION 16 MILLION Change phone carrier Change phone number Relocate annually 126 MILLION Americans shop online 5.8 Touchpoints per purchase 1.4 BILLION Smart devices In North America 85 % Of smartphone time spent in apps 2.1 name MILLION Legally change 500 MILLION Tweets per day Copyright 2015 Neustar, Inc. All Rights Reserved 22
23 #1(CONTINUED) CHANNEL PROLIFERATION ADDS TO IDENTITY CHALLENGE CALL CENTER Most marketers can only Only identify 40% 35% of of Marketers their customers have an OmniChannel and prospects Strategy across channels WEBSITE IVR IM SOCIAL IN STORE MOBILE Copyright 2015 Neustar, Inc. All Rights Reserved 23
24 #2 SILOES OF DATA DIFFERENT KINDS OF IDENTIFIERS COLLECTED & STORED IN MULTIPLE SYSTEMS YIELD MULTIPLE CHALLENGES Use different identifiers for the same people Systems are not integrated Rely on out-of-date PII Limited information about noncustomer Copyright 2015 Neustar, Inc. All Rights Reserved 24
25 #3 CUSTOMERS NON-LINEAR PATH TO PURCHASE Store Website KNOWN INTERACTIONS Direct Mail CHALLENGE: CAN T CONNECT ACROSS CHANNELS Mobile Social Desktop ANONYMOUS INTERACTIONS Call Center TV Copyright 2015 Neustar, Inc. All Rights Reserved 25
26 #4 RELEVANT MESSAGING A Comprehensive Portrait of the Consumer: Cross-Channel & Cross-Device TAKE NEUSTAR IDENTITY TURN INTO A RICH CUSTOMER PROFILE Consumer Attitudes Lifestyle Patterns Digital PERSISTENT ID Purchase Behaviors Demographics Offline Reach right customer at right time Target High Value Customers Increase Customer s LTV Copyright 2015 Neustar, Inc. All Rights Reserved 26
27 #5 AND AT THE END OF IT ALL, YOU NEED TO MEASURE EFFECTIVENESS Connect digital exposure to online sales regardless of device or browser Bridge digital media exposure to offline sales with powerful campaign insights and audiences Accelerate impact of digital media with an accurate view into online and offline synergies Neustar, Inc. / Proprietary and Confidential 27
28 THE SOLUTION: IDENTITY, ACTIVATION, MEASUREMENT Knowing your customer and prospect? Understanding their channel use Lines between offline and online are blurring Connecting the Dots in real time so you can measure and attribute results Psychographic Data Demographic Data Behavioral Data Geo-location Data Copyright 2015 Neustar, Inc. All Rights Reserved 28
29 IT ALL STARTS WITH IDENTITY PERSISTENT ID IDENTIFIERS AGREGATE & RESOLVE IDENTITY Name, Address, Phone, , Mobile AdID, IP Address, Website, DeviceID People, Businesses, Places, Things Copyright 2015 Neustar, Inc. All Rights Reserved 29
30 UNLOCK DEEP CONSUMER INSIGHTS Copyright 2015 Neustar, Inc. All Rights Reserved 30
31 SCALE: REACHING THE RIGHT AUDIENCE Maximize reach to your highest value customers or prospects Remove PII Match to HH Display Ads Activation Social Build Custom Profiles Media Partners Mobile Audience Extension for new customer acquisition Direct Mail Copyright 2015 Neustar, Inc. All Rights Reserved 31
32 DELIVERING THE RIGHT MESSAGE CRM CRM Data Onboard data Leverage Data Online Target Audience Personalize offer Offer A Offer B Offer C Neustar, Inc. / Proprietary and Confidential 32
33 CLOSED LOOP MEASUREMENT C1 C2 C3 D1 D2 Identity PII Known & Linkage Made PID XYZ123 Unique Household PID Linked to Unique Cookie & Device IDs. Targeting can be performed at both levels. C4 C5 C6 D3 D4 PII
34 CLOSED LOOP MEASUREMENT: A CLOSER VIEW 1 Customer sees ad; Neustar s action tag fires and establishes a cookie 4 Advertiser sends Neustar sales data from all channels, covering the period of the ad campaign. Neustar matches PII to PIDs PID PID PID PID PID 2 Neustar ties cookie to household (PID) Sales database PID 3 Build database of households exposed 5 Neustar matches ad exposure and sales databases to understand overlap PID PID PID Ad exposure database PID 6 Conversion rate (across all channels) for HHs exposed to ad campaign is calculated Neustar, Inc. / Proprietary and Confidential 34
35 FOUNDATION TO DELIVER A SUPERIOR OMNI-CHANNEL CUSTOMER EXPERIENCE To Connect Marketing Across Known Interactions Store Direct Mail Call Center Media Efficiency Message Control CONSUMER Balance Customer Journey Anonymous Interactions Website Mobile Social Desktop TV Persistent ID Entity Resolution Neustar Identity Unifying Taxonomy Single Truth You Need A Single Lens On The Consumer Copyright 2015 Neustar, Inc. All Rights Reserved 35
36 OMNICHANNEL BRINGS RESULTS Higher sales Increased conversions and acquisition More personalized and satisfying customer experiences 78% currently realize or expect to realize a lift in sales of between 6% to 12%, with retailers on the high end. 50% anticipate higher conversion and customer acquisition rates. 58% are counting on omnichannel strategies to improve each customer contact. Copyright 2015 Neustar, Inc. All Rights Reserved 36
37 MAKE THE GRADE KEY DELIVERABLES Understand how marketers can recognize and engage with customers across channels, online and offline. Get in front of the consumer via the right touch points. Focus on relevant and timely advertising in order to exert influence. Mobile s always on status makes it your best bet for staying top-ofmind. Start using digital influence to get customers into stores Use digital insights to drive more effective campaigns online and offline. Speak to your shoppers. Today s consumers want to be reached based on their interests, behaviors, and social groups. Be prepared for moving targets. Copyright 2015 Neustar, Inc. All Rights Reserved 37
38 READY FOR RESULTS? Digital Marketing Self-Assessment Results Copyright 2015 Neustar, Inc. All Rights Reserved 38
39 Q&A THANK YOU Lauren Freedman Jamie Ray Executive Director, Retail Sales Copyright 2015 Neustar, Inc. All Rights Reserved 39
40 1. While we know that shoppers are omnichannel, it seems easier said than done to measure this behavior. What tips would you suggest to really nail this? 2. Where do you see mobile s impact headed and how can we best prepare for the likely changes? 3. Our customers tend to be older, so how should we reconcile these findings being sure to address both social and mobile while still keeping our customers in mind? Copyright 2015 Neustar, Inc. All Rights Reserved 40
41 DELIVERING THE RIGHT MESSAGE IS HARD Top challenges to creating a Single Customer View Data verification is becoming harder Across increasingly complex touch points 43% Poor quality data 45% consumers change phones every year 39% Siloed departments? 37% Lack of relevant technology Publicly available information for U.S. households has declined 78% 30% 34% Inability to link different technologies Sources: Neustar internal data U.S. Census Bureau Consumer information noted on an annualized basis. Copyright 2015 Neustar, Inc. All Rights Reserved 41
42 FOUNDATION TO DELIVER A SUPERIOR OMNI-CHANNEL CUSTOMER EXPERIENCE Known Interactions Store Direct Mail Call Center Media Efficiency CHALLENGE: NO Message WAY Control TO CONNECT ACROSS CHANNELS CONSUMER Balance Customer Journey Anonymous Interactions Website Mobile Social Desktop TV Challenge is that today there is no way to connect across both worlds. Marketers are effectively blind in the offline channels and have only limited visibility across online activities. Marketers must be able to build a consistent view of their consumer to effectively manage their engagement across multiple channels, offline and online. Copyright 2015 Neustar, Inc. All Rights Reserved 42
43 FOUNDATION TO DELIVER A SUPERIOR OMNI-CHANNEL CUSTOMER EXPERIENCE Known Interactions Store Direct Mail Call Center Media Efficiency Message Control CONSUMER Balance Customer Journey Anonymous Interactions Website Mobile Social Desktop TV Consumers engage with your brand in both the offline (PII) and online (anonymous) worlds. Marketers want to control delivering the right message at the right time while optimizing media efficiencies across the customer journey. Copyright 2015 Neustar, Inc. All Rights Reserved 43
44 RELEVANT MESSAGING A Comprehensive Portrait of the Consumer: Cross-Channel & Cross-Device TAKE NEUSTAR IDENTITY TURN INTO A RICH CUSTOMER PROFILE Consumer Attitudes Lifestyle Patterns Digital PERSISTENT ID Purchase Behaviors Demographics Offline Reach right customer at right time Target High Value Customers Increase Customer s LTV Copyright 2015 Neustar, Inc. All Rights Reserved 44
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