November 19, 2014 | Written by: Elizabeth Magill
Categorized: Customer Analytics | Marketing
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Today’s consumers are interacting with brands in more ways than ever, with online, mobile, in-store and call center channels all in the mix. According to IBM’s “Greater Expectations: Consumers are asking for tomorrow, today” report, 81% of consumers are using social, local and mobile technologies to do some combination of browsing, researching and buying products.
Those omni-channel habits extend to the holiday season, with consumers interacting with brands across a wider spectrum of touchpoints than ever. For example, IBM’s “2013 Holiday Benchmark Report” showed double-digit percentage increases in Black Friday mobile and tablet sales, smartphone traffic and push notifications versus the prior year. And, based on IBM’s predictions for this holiday season, we can expect this growth to continue.
With consumer engagement coming fast and furious across so many channels and devices — and with it millions of pieces of related data — it can be challenging for marketers to understand customers’ behaviors and anticipate their needs. But with consumer expectations higher than ever, using customer insights to deliver an improved experience is vital for companies looking to drive revenue during the holiday season – and beyond.
To that end, leading companies have been finding new ways to harness the power of customer analytics to better make sense of consumer data, engage customers and drive revenue. IBM’s new eBook, “Learn from the best: How customer understanding and analytics grow revenue and deepen loyalty,” looks at the ways 10 marketing, e-commerce and service teams have used customer insights to enhance the buyer journey.
Here are three ideas from the report for how businesses can use analytics to improve marketing performance:
1) Retarget with data-driven via ads and email
In today’s fast-paced, multichannel world, consumers regularly engage with companies multiple times before a conversion. Yet many retailers lack the ability to effectively capture these interactions, process them, and reach out in a timely fashion with relevant content aimed at converting contacts who have abandoned shopping carts or browsing sessions.
The largest retailer in the Netherlands, wehkamp.nl was one such company. It sees well over 100 million site visitors browsing its extensive product selection, and it wanted to enhance its efforts to recover lost sales due to cart abandonment. Using the IBM ExperienceOne Understand Your Customers solution to track digital behavior and use it to retarget via email and display ads to retarget shopping session abandoners with personalized messaging.
The individualized retargeting efforts drove engagement and revenue, with wehkamp.nl’s retargeting emails seeing a 68% higher click-through rate and 271% higher sales-per-send ratio than its standard promotions. The personalized retargeting ads were also a success, netting 15 times greater ROI than generic display ads.
2) Employ behavioral data to help drive cross-sell revenue
Providing product recommendations is a smart way to increase engagement. But delivering relevant, up to date recommendations can be a time-consuming, challenging process for companies with thousands of product on their website.
Outdoor gear and apparel retailer Orvis was facing a similar challenge as it looked to increase cross-sell revenue. Its manual approach to providing recommendations was proving costly in terms of both hours lost and subpar results. So, it decided to leverage the data it had collected using IBM Digital Analytics through IBM Product Recommendations to improve productivity and precision.
By moving to a more automated, targeted approach to product recommendations, Orvis is saving eight to 10 hours a week in manual work and has seen a 70% gain in revenue from these recommendations.
3) Use customer insights to optimize the website experience
According to IBM’s 2014 “The Digital Customer Experience” survey, less than half of U.S. adults said their experiences using websites on desktop/laptop computers was excellent. The results were even bleaker on mobile devices: Only 25% said their experiences using websites or mobile apps on tablets were excellent, and the figure plummeted to 18% on smartphones.
Travelocity, the second-largest online travel agency in the United States, wanted to gain a better understanding of website issues so it could more effectively identify and resolve these issues, help reducing site abandonment, customer dissatisfaction and revenue loss. It adopted IBM ExperienceOne Understand Your Customers solution, with a focus on IBM Tealeaf to gain complete visibility into the actual user experience, enabling them to identify complex website issues and quickly correct these problems.
As a result of Travelocity’s improved visibility into website issues and its enhanced ability to swiftly address them, it was able to recapture $1 million in revenue. In addition, it was able to better understand user behavior and optimize site design and navigation.
To read more real-world stories of how leading companies have used customer analytics to driver better experiences and revenue, plus get strategies and tactics you can apply to your business to enhance your holiday marketing programs, download IBM’s ebook, “Learn from the best: How customer understanding and analytics grow revenue and deepens loyalty.”