Marketing Darwinism - by Paul Dunay
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Home
Bio
Books
Press
Speaking
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Photos
Awards
Abstracts
Testimonials
  • Home
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  • Webinars
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Marketing Darwinism - by Paul Dunay
Advertising, Behavioral Targeting, Big Data, Business Intelligence, Commerce, Content Marketing, Conversational Marketing, Conversion Optimization, Customer, Customer Experience, Inbound Marketing, Influencer, Interactive Marketing, Lead Generation, Lead Nurturing, Leadership, Online Advertising, Online Testing, Optimization, Strategy, Thought Leadership

CMOs Win When High-Value Customers Are Treated Personally Online

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With constant access to a growing list of channels and devices, today’s connected customers are no longer satisfied with vanilla, one-size-fits-all experiences and offers. To stand out in the increasingly crowded and competitive marketplace, many C-level executives from the world’s most iconic brands are not content with just “Keeping Up With the Joneses.” Instead, they are actively seeking opportunities to better understand their high-value customers across every channel and device.

The reason for this is simple: These customers are more often than not brand loyalists and willing to persuade others to become regular brand purchasers if they’re kept happy and engaged consistently in every single place they are interactive with brands. But the task of keeping brands happy and engaged beyond one big “win” isn’t easy. It requires CMOs and the entire business, for that matter, to combine their internal resources with technology that’s both powerful and agile enough to boost customer engagement and revenue long term. And a brand’s success today, in this hyperconnected and digitally dependent environment we live in, depends heavily on leveraging digital to reward high-value customers. Rather than spout out a to-do list of tactics that show high-value customers they’re appreciated, here are some specific benefits instead that can be derived from deep and sophisticated forms of segmentation:

Don’t confuse high-value customers for high-volume customers.

In the less digitally savvy days, brands and their teams of analytics “experts” would navigate through Excel spreadsheets with massive amounts of data. In those days, there was sometimes confusion and lack of knowledge as to what constitutes a high-value customer. As a result, high-volume customers would often be mistakenly categorized, and subsequently treated, as high-value customers. But the reality was, and still is today, that people who interact with a brand frequently aren’t necessarily going to be the ones that have the most value from the perspective of consistent engagement, conversions and sales across multiple channels – from being inside a physical store to making a last-minute purchase on their mobile devices or shopping from their PCs. So it was common for those brands to see a huge surge in traffic for a short burst of time, but after the excitement faded, so did the engagement and ROI.

Marketers today need to adopt a more realistic and accurate definition of value that’s based on “the combination of opportunities to convert and increase potential order value, and maximizes both, while at the same time, yields your highest value customers.” But identifying the best customers online and serving them the content they need is easier said than done. The key to obtaining a 360-degree view of high-value customers means personalizing and differentiating every message by offering an array of online content to drive maximum conversion and revenue uplifts.

To get there, the modern brands of today must, and I repeat must, push beyond the basic forms of personalization – think product recommendations or ads that chase you around on the Web. Instead, these brands are likely to be best served by leveraging the power of technology, real-time data and automated segmentation to effectively profile individuals who are in actuality high-value customers. That identification is the first hurdle that brands need to overcome. From there, it’s all about extending personalization across every device and channel to delight and please consumers with the most humanly relevant, easy-to-navigate and engaging offers.

Tap into the beauty of data to boost cross-channel ROI.

The urgency to identify high-value customers online is being fueled by a number of factors. First, the online channel represents the biggest growth opportunity for most brands. According to a new Forrester Research global eCommerce report, e-commerce revenues are going to continue to grow in 2014 as customers’ online buying habits evolve. Meanwhile, a new study released by IBM in 2014 reveals that brands stand to lose $83 billion due to poor customer experiences.

When you think about it, that’s a lot of revenue that could be left on the table if brands don’t put every segment of their customers first. For example, brands are able to gather intelligence on channels shopped — including Web, tablet, mobile phone or store — and then integrate data from a CRM system, POS, DPM or other source to help augment customer profiles. By combining intelligence on shopping history, search history and Web behavior, this combined intelligence can help brands identify when to offer an in-store promotion, extend a seasonal offer or make a product recommendation. If brands are able to identify their high-value customers, then they can scale the business more efficiently and ensure that every decision and action they make is focused on delivering the right actions defined by the right data.

Discover unique attributes of unique markets.

One common challenge that today’s brands face is a tendency to make decisions based on data points as opposed to data profiles. In these instances, it’s not that uncommon for brands to use pre-existing data models to identify their buyer personas as well as the content and offers they deliver on their websites and mobile sites.

By using automated segmentation and targeting, brands should be able to detect segments unique to their brands and industries. This process turns traditional targeting on its head because buyer profiles and offers are all determined by real-time intelligence gathered against real-time customer behavior. One example of such a data profile could be a “weekend shopper” persona. Based on their digital behavior and purchase activity, these shoppers may spend significantly more money (at multiple channels) than mid-week shoppers. So it’s more than likely these shoppers would be frustrated and intolerant of being shown irrelevant and mismatched offers that would better suit mid-week shoppers. That is where many brands today realize that even with all the benefits of technology, they have made shoppers that much less tolerant and patient with poor experiences.

Move away from campaign analysis; bring it back to the customer.

One of the ways brands have traditionally gathered intelligence on customer behaviors is through basic A/B testing of different content and offers. Building on the quantifiable value of testing, many innovative brands are now shifting from campaign-driven analysis to a more holistic and accurate customer-driven analysis. By doing so, marketers can get a more robust and humanistic view of every single customer segment, as well as being able to identify which segments are performing better than others. With businesses – across all teams – being challenged to consistently demonstrate ROI, this ability to gauge the value of high-value customers and appropriately target them with the best content on the best devices at the best times and places, is especially critical to success.

March 13, 2014by Paul Dunay
Innovation

Your Marketing Strategy Needs to Keep Pace with Digital Culture

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In a company, the term “culture” is often defined by qualities such as an organization’s business values, overarching mission statement, operational style, working languages, technology and operating systems, personality traits and in-office habits. Basically I tend to think of a company’s culture as the delicate balance among those inexplicable qualities that make your employees do the things they do. It’s those traits that cannot always be written down on paper that often make employees and their company culture stand out amidst a crowd of “so-so” performers. And it’s often what keeps customers happy and coming back year and after.

Take, for example, a global footwear brand. This brand’s primary foothold may have been from brick-and-mortar stores around the U.S. But as consumers quickly ditch in-store shopping in favor of the speed, ease of use, convenience and massive array of product options made possible by online and mobile devices, a brand’s digital marketing culture matters, a lot. It can make all the difference in customer engagement and loyalty on one level. But most important, it can also very drastically impact actual sales figures and revenue across multiple channels. So let’s look at some of the prevailing digital “values” that could either help or hurt a brand’s bottom line.

The “other” dominates our attention. We spend our marketing dollars and resources in search of ways to “one-up” our competitors.

We see this a lot among brands. The marketplace is highly competitive these days. Consumer budgets are drastically lower, since the 2008 financial collapse. Attention spans and free time are often very limited. Consumers, in turn, demand much more from their experiences with brands, regardless of where these experiences occur and what devices they are using.

Because of these challenges, we often see brands looking to digital marketing to move the engagement and revenue needles in the right direction. But then they get stuck because their digital focus becomes all about showmanship and facing off in a tit-for-tat competition with others in their same space. What good will that approach do? Not much. It will only make your customers feel more frustrated, less appreciated and more unlikely to interact with your brand. If you can’t make every single interaction and experience customers have with your brand a positive, engaging and intuitive one—whether it’s in-store, online, mobile, social or email—you should expect to say goodbye to them relatively quickly.

We can no longer envision “big ideas” and creative marketing without the support of big data.

There once was a time when the “creative” process of branding and marketing was left solely to agencies and their teams of art directors, creative designers, copywriters and everyone else who spent a good portion of their days drawing and sketching out brand concepts and stories. On the other side of the proverbial “brand” table sat the numbers and analytics “geeks,” as they were often called. These teams would crunch numbers, run hundreds of equations, and compile long and arduous Excel® sheets.

Well, that divisive line between creative and data is no longer existent. To be a brand that’s challenging the status quo, inspiring consumers to smile, laugh, cry and even debate what’s acceptable, as well as getting consumers to spend more time and more money with them, we have to use data to support those “big ideas.”

No two consumers will ever want an identical experience, so we continually test and learn.

A recent poll by Korn/Ferry among senior executives indicates that 53 percent of them believe their companies should allocate budget to explore new marketing channels through a “test-and-learn” approach, in order to remain competitive; but half of the respondents feel that their marketing departments do not receive enough budget to do so.

Can chief marketing officers transform the way they market by simply employing a test-and-learn philosophy? Well, yes and no. Let me explain. If a brand is simply going to try a bunch of random “tactics” without any real reason or purpose behind them, there won’t be much value in it. Just look at how many brands these days are jumping headfirst into the responsive-design game. They’re doing it because they are being told by either the C-level executive team or the board of directors that mobile is where they need to be. So they go after a quick fix and rush into responsive design without any real thought, strategy or testing behind it. That’s a big mistake.

On the other hand, the real value of a test-and-learn digital culture lies in being patient, spending the time to analyze all of the data available (CRM, online, mobile and social), and identify what’s working and what’s falling through the cracks. That allows you to formulate a very calculated and strategic hypothesis and then test against that, until you can create an experience—be it online or mobile or social—that’s as relevant, seamless, easy to use and engaging as possible.

December 8, 2013by Paul Dunay
Behavioral Targeting, Big Data, Customer Experience, eCommerce, Personalization

Using Big Data To Target The Right Consumers With The Right Offers

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Should every visitor to your website be treated the same? Should each customer see the exact same offers, options, products and pages?

The more forward-thinking online marketers recognize that “personalizing” each customer’s experience on their site can make a dramatic difference in ultimate sales, customer loyalty and long-term profitability of the business.

Fact is, in many markets, customers have actually come to expect individually tailored offers and experiences—based on who they are, what they’ve bought before or even how they have come to the site.

But exactly what should you personalize on the site? Which offers, products or promotions should you present to which customer? And how can you tell what each type of customer will respond to best?

When you know what you want to accomplish, you will be able to identify the right combination of technology, tools and strategy for personalizing each customer’s experience. Here is where to start:

Harness the Power of Big Data, Big Testing

The notion of big data holds great promise for finding ways to personalizing the Web experience for individual customers. The vast amounts of data on customer behavior and history that can be captured via the Web and be invaluable in making decisions about how the website should work, what customers respond to, and understanding the discrete segments in your customer base.

Marketers who can harness the power of big data will be able to make decisions based on evidence, rather than guesswork—giving them a distinct advantage over the competition.

Of course, making sense of huge volumes of data, which may be in different forms and come from different sources, is not so easy. What’s more, it’s also difficult to translate that information into “personalizations” that are meaningful and compelling to your customers.

That is where today’s more advanced tools come in.

The aggregation and use of big data are crucial to segmenting and targeting your individual customers with the appropriate experiences. It requires employing predictive behavioral targeting and optimization techniques to remove the complexity. Your systems need to make real-time digital decisions for the masses—anytime, anywhere.

Love Your Loyalty Programs

For most marketers, loyalty programs provide a wealth of personalized data on your most desirable customers. But once you’ve enrolled customers, what should you do with the data?

This data isn’t just for tracking points and past reservations. It can be used to digitally personalize the experience for each customer in real time. Initiatives like offers, promotions, calls to action, special prices—whether on your website, mobile site or app—can all be preselected or promoted based on each visitor’s unique profile. This tactic ensures visitors see content relevant only to their loyalty level and behavior. A better experience leads to higher loyalty.

With each loyalty program visitor who comes to your website comes their unique “virtual profile” that can—and should—be used to tailor their experience on your site, in real time. Insight on behaviors such as previous products researched, frequency of purchases, the nature of past purchases, and ads or offers they’ve clicked can inform what content and offers you should make available to each individual, and precisely when in the process.

Don’t Upsell or Cross-Sell Too Soon 

One mistake marketers often make is automatically tagging on extras, such as upsells, options or accessory products, as their customers enter the booking funnel. The customer who already had a price in mind suddenly sees that number increase just as it’s time to purchase. By forcing these add-ons at the wrong time, you’re more likely to elevate annoyance levels than average sales.

With recommendations, upselling and cross-selling, timing is everything. Don’t be pushy up front; instead, leverage CRM and personalization data to get the right offer in the customer’s face at the right moment.

Ditch the Rules; Get Automated

While rules-based targeting may work, it won’t get you very far when you’re trying to personalize offers for millions of site visitors. It is virtually impossible to manually create rules that can handle the thousands of combinations of behaviors, products and promotions, for every single person.

The next best option (and next big idea) is automated personalization solutions. Advanced predictive models can dynamically serve content and offers based on a user’s current and past online behavior. This way, your visitors will always have the most relevant and appropriate experience on home pages, landing pages, search engine results pages, the booking funnel and every page in between. In the case of repeat visitors to your site, for example, you might retarget them with an offer based on their last purchase, or their last search, all in real time.

Making sure these tools are on hand can ultimately help the business build consumer-centric promotional strategies.

Sync Your Channels

Your customers don’t think in channels; they think in brands. So they expect the same personalized experience they get on your site to be on their smartphones, in their email and even on Facebook. Customer experience is the number one ticket to prolonged brand loyalty and engagement.

How does your brand look across channels? Is it 100 percent consistent, optimized and personalized? If not, you could be missing a golden opportunity to improve hotel, call center, direct mail, social and mobile experiences. No matter where they visit you, your brand experience should be ready. Thanks to automated technologies, you can more accurately predict a customer’s next interest and follow up with optimized, targeted messaging, no matter how, or through which channel, they access your brand.

Combining this data with CRM data in real time to drive sales and customer retention is the future. CRM practices were born and bred in the offline world, but today marrying offline, online and mobile consumer data through new technologies can help you achieve better CRM and multichannel marketing outcomes: more precise targeting, personalization and consumer connections across all media channels, and delivered at the time most appropriate to increasing conversion—a very important factor in online marketing.

Imagine being able to target your consumers across the various phases of purchase with different messages at research, selection, shipping and the like. Not only can you dramatically enhance and personalize their experience with your brand, but increased retention, loyalty and customer lifetime values also result from a truly connected multichannel experience.

Remember, personalization isn’t just marketing hype. It’s a complex concept that really can live up to its billing. But first, marketers must identify what personalization really means in their business—and what it means to their objectives, target customers and buying cycles.

When it comes to their websites, mobile sites, apps, social media and CRM platforms, the online industry must realize that only through a customized combination of multivariate testing, optimization and personalization best practices can they truly begin to reach consumers with personalization that is effective and full of impact. There are no easy answers or instant solutions for creating personalization that works. It’s about evolution rather than revolution.

August 10, 2013by Paul Dunay
eCommerce, Optimization, Personalization

It’s Time For CMOs To Tap Into The Power Of Personalization

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According to Forrester Research, U.S. e-commerce sales are expected to hit $370 billion by 2017 – that’s 10 percent of retail sales. These are some pretty staggering figures that brands and their CMOs cannot afford to ignore. More than anything, it’s a harsh reminder of just how much revenue they stand to lose if they get the online experience wrong.

Consumers today are finicky and want what they want, now. Some place the highest premium on loyalty and trust in a brand or product. Others, bound by the unstable economy, prefer deep discounts and bargains. And then there’s the ever-growing population of consumers who are always connected and always on, thanks to their smartphones and tablets. As different as consumers are, they all want to feel like the brands and products they use are tailored specifically for them. By providing personalized, relevant and unique content in line with consumers’ likes and dislikes, purchase behaviors and demographic profiles, they’ll increase eyeballs to their online or mobile sites, boost traffic and, most important, drive short-term and long-term sales. Here are five reasons why CMOs cannot ignore the power of personalization any longer, or they may soon be shutting their doors.

Make data your best friend.

It’s unfortunate, but a lot of brands these days are still guessing their way through their website design and e-commerce strategy. As smart and creative as most brands think they are, the numbers don’t lie. Data can be one of the most inexpensive and smart listening tools a brand can have in its arsenal. I can’t stress enough the importance of brands analyzing what works and what’s missing the mark with all of their design changes through A/B and multivariate testing. That kind of data is more apt to deliver real insights into who their audience is, what types of content and information they want, and where they are making those purchases. All of those learnings, in turn, can result in increased clicks, higher conversion rates, more revenue and happier customers.

Reach the right audience.

What is the demographic profile of your primary customers? Are a significant portion of your online customers also smartphone and tablet owners? Does product pricing influence the purchase decisions of your customers? The identity of your customers, their demographic profiles, what types of information they value as well as when and where they are making purchases are all insights that can help you reach the right audience at the right time with the right content – whether it’s in the form of emails, product recommendations or social promotions. So doesn’t it make sense to test and optimize your website to reach the right audience at the right time with the right content?

Be relevant, unique and indispensable.

One of the best ways to attract and retain customers is to make your brand and products so relevant, unique and indispensable that they would suffer if they went elsewhere. According to Forrester’s 2012 North American Brand Performance Study, being indispensable commands greater preference, and that means a higher likelihood that customers are going to keep spending their hard-earned dollars with your brand across multiple channels. One way to satisfy consumers’ high standards is to make product recommendations as personal and strategic as possible. Showing the right products in the best way on the right pages can result in higher site traffic, longer engagement times on landing pages and more sales. That’s a win-win for both brands and consumers.

Smartphones and tablets drive e-commerce growth.

If you think investing the time, resources and dollars into testing and optimizing your site for smartphones and tablets isn’t that urgent, think again. According to eMarketer, 15 percent of online retail sales this year will take place via mobile devices, which is up from 11 percent in 2012. Overall, U.S. retail m-commerce sales are predicted to reach nearly $39 billion in 2013, up 56.5 percent from 2012 and almost triple the amount spent in 2011.

But not every smartphone and tablet is the same; each device type, model and platform comes with its own unique set of features and functions. Failing to optimize and personalize your website for the smaller screen could very well mean the difference between being profitable and going bankrupt.

Forge meaningful social relationships.

Social media has forever changed the way we use the Internet and consume information. Once considered to be a new “fad,” social media is now an integral part of consumers’ daily lives. A study by Forrester Research found that 45 percent of people on social networks have interacted with a brand through social media over the previous three months. It’s especially interesting to see that 71 percent of online adults are accessing social networking sites at least monthly.

Despite how popular and “cool” it’s become for brands to have a social presence on sites like Facebook, Twitter, Instagram and Pinterest, many have done so without any real strategy or testing behind them. How often do you hear brands bragging about reaching 1 million fans or “likes” on their Facebook page? But these metrics aren’t tied in any way to ROI and sales. Incorporating social data into your overall personalization program can convert those actions into leads and revenue. Isn’t that what really matters to your business?

 

July 18, 2013by Paul Dunay
Behavioral Targeting, Business Intelligence, Conversion, Conversion Optimization, Customer Experience, Interactive Marketing, Internet, Search, SEO, Strategy, User Generated Content

How to Make the Zero Moment of Truth Work for You

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When faced with multiple products, the time it takes for a shopper to make a purchase decision between them is usually three to seven seconds. These critical moments are known as the First Moment of Truth (or FMOT), and they determine whether or not all the advertising and promotion marketers have invested will pay off. Thanks to the Internet, another critical moment for consumer/brand interactions is also getting attention: the Zero Moment of Truth (or ZMOT). ZMOT encompasses the time between consumers’ first exposure to advertising for a product and the ultimate purchase decision—with emphasis what happens in between those two things: online research of the product.

According to a study by Google (who came up with the ZMOT concept), before deciding whether or not to buy:

  • 50% of shoppers used a search engine to get more information on a product or brand
  • 38% comparison shopped online
  • 36% checked out the brand/manufacturer’s website
  • 31% read online endorsements, reviews or recommendations

These behaviors have redefined the way marketers now plan for online shoppers—causing a tremendous shift away from the way they used to plan their campaigns.  Marketers who sell high-end goods like electronics, furniture or cars are no strangers to these shopping patterns, but these days, customers apply them to practically everything they buy. Having a good product and a solid awareness campaign is no longer enough; now there’s a more informed and discerning customer base to cater to. They check in with their trusted third-party sources, and expect your message to be consistent from desktop to mobile to tablet and back again. It’s a tall order…but not an impossible one.

Here are some ideas to help win at the Zero Moment of Truth:

Mobile Optimization

Back in the day—uh, about 10 short years ago—marketers knew more about their products than their consumers did, and had the luxury of acting as the gatekeepers of brand information. These days, consumers aren’t as passive; they’re active, engaged and are likely to know as much about what’s being sold as the people selling it to them (if not more). When they have something to say about a product, they’re not just saying it to the company that sold it to them, they’re talking to each other, at an exponential rate.

Mobile tech and devices are crucial to this process. On the go, customers search for store locations, compare prices and features, and call family and friends to get opinions. At home, they’ll respond to a TV or radio ad by firing up search engines on their second screens. So optimizing company websites for mobile is a no-brainer.

Here are some things to consider when doing so:

  • Improve page load speeds by leaving out huge graphics and Flash content.
  • Make sure your site design translates to smaller smartphone screens as well as it does to larger tablet and desktop ones.
  • Use A/B and Multivariate testing on as many site elements as possible—namely, content, design, shopping cart process—to see what gets your mobile audience excited.
  • Don’t be afraid to track mobile marketing separately from other web campaigns; according to Google’s study, mobile-only campaigns perform 11.5% better than hybrid desktop/mobile ones.

Brand Credibility

You already know people are talking about your brand on the Web, so you need to do your utmost to embrace and be a part of that conversation.

If people are searching for your brand online with questions, you’d better have useful and engaging answers for them—because if you don’t, your competition surely will.  Product reviews and recommendations are major resources for consumers doing research; make sure they’re prominently displayed on the product pages of your website.

Don’t be nervous about opening up your site to user comments and feedback, because honestly…most reviews are good reviews. According to a Bazaarvoice study, 80% of online reviews on a given retail site are written by the top 20% of the site’s most committed and loyal customers. Even the occasional thumbs-down is a good sign; shoppers see negative reviews as proof of an unbiased, truthful environment.

Video is another crucial aspect of ZMOT; product showcases, how-to demonstrations, B2B case studies…whatever your market, customers will want to see what you have on offer before opening their wallets. Shoppers love to send videos to each other via email, post them to social networks or embed them in their blogs or personal websites, so make sure your videos are easy for customers to share. Try adding a YouTube channel to your social media arsenal. Increase the reach of your TV advertisements by posting them online.

Brand Consistency

If there’s no stylistic connection between your company’s main website, your social media pages, and your offline marketing campaigns, shoppers are bound to get confused or challenge the legitimacy of your online presence. Keep branding elements and logos consistent between all your marketing channels, so consumers trust that they’re exactly where they need to be and know precisely who they’re dealing with.

Don’t just pay attention to style—your content also has to be consistent across channels and campaigns. Shoppers are using various pathways to find you; if they see conflicting product descriptions or huge price discrepancies between channels, they’re likely to lose confidence in your brand and look elsewhere. Also, it’s important to keep your online content fresh and updated. If customers keep seeing the same old commentary on your main site, or your social media sites haven’t been updated in months, they might think you’ve gone out of business—and you’ll lose their business.

Personalization

A huge part of succeeding at ZMOT is being able to define and understand your target audience, in order to provide them with specific experiences attuned to their needs. Not only are consumers seeking information about your products, but their searches also allow you to gain insight that helps you give them exactly what they’re looking for.

Use information gathered from website behaviors to create user profiles that can be segmented by various attributes: geography, time of day, viewing device, media channel, web browser, etc. This personalized approach can be as simple (one or two collected insights) or as complex (mathematical algorithms that dynamically adjust and predict displayed content) as your specific campaigns require.  Once created, these profiles provide better, more relevant customer engagement.

Product reviews and recommendations come back into play here, because when consumers engaging in ZMOT use them, they’re not thinking of them as opinions from strangers—instead the reviews and recs are perceived as coming from people like themselves, who’ve been in the same situation and had similar questions. Personalization helps online marketers connect consumers with the product advice most suited with their particular need, which can lead to a desired purchase. Those customers can then post their own reviews or recommendations, informing other consumers undergoing their own ZMOT…and the beat goes on.

ZMOT is a fantastic way to gain awareness on customer interest and satisfaction; putting these various methods to work for you will keep your brand in the forefront of shoppers’ minds and attentions, giving you the ability to trounce your competition and make the sale.

June 5, 2013by Paul Dunay
eCommerce, Personalization

4 Ways E-commerce Can Drive Conversions From Green Initiatives

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Going green, online—is it worth it? The short answer is yes. Many marketers may not realize that catering specifically to this type of consumer can actually increase conversion rates, while maintaining your image as a green-friendly organization. And when applying some personalization to the mix, can also help keep your green friends very, very loyal.

Whether retail or hospitality, certain brands are continuously striving to maintain relevancy for a certain subset of eco-conscious customers—both offline and off. So, if you want your brand to be top-of-mind with the green-friendly, your website needs to follow a certain aesthetic—just like your products and physical locations.

1. Use your navigation to your advantage.

When green visitors hit your homepage, they should be able to immediate route themselves to a section that meets their eco-friendly requirements. This doesn’t mean that you have to dedicate an entire green banner on the homepage for every visitor to see. Simply highlighting and building in a green section into the navigation will get visitors up and clicking on the products they are interested in.

2. Highlight products and categories with green options.

A recent study published in the International Journal of Hospitality Management found that the level of willingness to pay a premium for green initiatives is significantly different depending on hotel type. Test out highlighting hotels that invest in green initiatives in the search results and hotel details page. By watching the results on conversions and bookings, you’ll be able to nail down who your green travelers are, and what they are looking for most.

On the flip side, retailers can easily highlight products on category pages to effectively call-out environmentally sound products. Using tricks such as a “green dot” or a “green leaf” icon identifies an eco-friendly product in an otherwise crowded page.

3. Be detailed and explanatory.

For those extra-inquisitive customers, explaining why a product or room is green is a necessary step to getting the conversion. Using “rollovers” is a great way to quickly explain what makes the product eco-friendly before the visitor clicks on it. This helps not only keep the visitor engaged on the path to purchase, but instills a level of trust with the site, since you took that extra step to keep consumers on the up and up.

4. Get (environmentally) personal.

It’s been shown when degree of environmental concern and other demographic factors remain constant, luxury and mid-priced hotel customers show, on average, a higher willingness to pay a premium for the green initiatives than economy hotel customers. On the same token, repeat visitors to your retail site who have shown interest in green products in the past, should not have to search around to find their desired products.

So how can you play that up? Personalization.

With personalization, conscious green visitors are immediately acknowledged and other visitors become aware of additional product offering—but aren’t necessary pushed for it. A technique such as behavioral targeting can help automatically syphon off non-green or unknown visitors, and promote green items, options or offers to those who are. By using a predictive, mathematical model, this allows your site to offer the right product, to the right visitor, at the right time. No matter how much merchandise you have, your customers will be targeted appropriately.

It’s important to remember that green consumers are just like everyone else out there—fickle, picky and demanding. As e-commerce marketers, it’s up to us to ensure we’re always catering to all our customers wants and needs—otherwise losing our green-friendly image is the least of our worries. It’s the customer loyalty that will be at stake.

March 21, 2013by Paul Dunay
Behavioral Targeting, Customer Experience, eCommerce, Mobile, Social Media

10 Ecommerce Predictions for 2013

Thanks to smarter marketing, better technology and consumers speaking out, 2013 just might be the year we see a real shift in how close customers and companies can really get.

We know the deal—people are spending, and continuing to spend, more and more online. Every year, Cyber Monday will beat out the last. Mobile and tablet revenues will continue to increase. And bricks-and-mortar retailers will scramble to keep pace with a digitally driven world.

The truth is, consumers are demanding optimized and personalized sites to offer them a richer, more relevant online experience. It’s no longer an option for marketers—it’s a must-have. In 2013, expect to see:

  1. Testing (Finally) Becomes a Must-Have – Companies big and small have dabbled in this for a decade. But now, everyone has to get serious about it. Companies that don’t test won’t get anywhere near providing the best online experiences for their audience.
  2. True, Real-Time Personalization, for Everyone – Now that this complex technology is made easily available to the masses, we’re going to see major industries like finance, travel and media lead the charge—but also expect businesses in other industries, such as gaming and charity, to take advantage of personalization solutions to offer more custom experiences.
  3. Consumers Get Over the Privacy Debate – Because consumers are getting on board with personalization, they should expect to see more of the general information they share online used by companies. Everything from age, geography and life stage, incorporating social profiles (e.g., married versus single) will play a part in offering a more relevant, more valuable ecommerce experience.
  4. Retailers Start to Love Loyalty Programs – It’s not just for frequent fliers anymore. Now businesses across industries (retail, finance, etc.) are launching loyalty programs—and integrating data into comprehensive customer profiles—to offer the next level of personalization and service.
  5. Mobile Gets Personal Too – As consumers adapt to living their lives from their mobile phones and tablets, they’ll expect platform-specific offerings that offer a better shopping experience, geo-specific content, special offers and other elements that complement and enhance life on the go.
  6. Responsive Design as the Rule – A site that’s designed for optimal viewing no matter which mobile or tablet device is being used is the new norm. Gone are the days of resizing, scrolling and otherwise struggling to view a site depending on the size of your computer or device screen.
  7. The Rise of Cross-Channel Experiences – Consumers don’t think in channels, they think in brands. So a completely seamless ecommerce experience no matter where they are —at their desktops, on their smartphones and tablets, or on social pages and sites—is a must-have.
  8. Companies Get a Handle on Big Data – Most businesses have an abundance of useful data, however, very few are using this data to provide targeted individual experiences at the right time to respond to savvy consumers’ needs. In the coming year, expect to see more brands getting a handle on this to offer customers more targeted offers across all channels in real time.
  9. Social Media Grows Up – For far too long, marketers have treated social media as an island from the rest of their strategy—and, in turn, have not reaped any benefits of it being a useful sales tool. Going forward, we’ll see more brands using social data to personalize experiences on their websites, as well as applying testing and personalization to their own Facebook pages.
  10. B2B Catches Up to B2C  – When it comes to testing and personalization, consumer-facing businesses aren’t the only ones catching on. B2B companies—and their customers—crave a great online experience too.  More and more B2B sites will use testing and personalization to create well-optimized and targeted sites based on user behaviors.

As a consumer and a marketer, I’m looking forward to getting online in 2013.

 

January 16, 2013by Paul Dunay
CRM, eCommerce, Personalization

Personalizing With Purpose

Most e-commerce sites still struggle to leverage the growing wealth of customer data to which they have access. This failure to integrate customer relationship management (CRM) activities with online visitor behavior is wasting a significant opportunity to transform CRM into Customer Relationship Marketing.

During the last economic downturn, the Web was the only sales channel that grew, while brick-and-mortar businesses contracted significantly. The Web is now such a powerful, commanding route to market that in some pre-Internet sectors, more than 90% of business is now done online. Moreover, this year Cyber Monday sales alone hit $1.98 billion.

One of the best examples of this growth in e-commerce is the airline industry, which was once dominated by call center activity. Today, JetBlue now handles more than 80 percent of its reservation transactions online. Yet, while Internet businesses have made great progress in catching up with more traditional sales outlets in terms of the breadth and sophistication of their product offerings and how they are presented online, they have failed to integrate their CRM activities, which limits their impact as they try to personalize promotional offers.

Following the Leaders

Amazon.com certainly set the gold standard for best practices in personalization—with its unparalleled ability to recognize and deftly exploit consumers’ online browsing and buying habits. But, it also has the advantage that its route to market was 100% Web-based. Certainly, many ecommerce shops attempt to mimic Amazon’s highly successful interactions with returning customers (“You were interested in XYZ, so you may enjoy ABC,” etc.) — but most companies are not going far enough, allowing customers to slip through the cracks. For instance, an insurance business may not realize that the person making a call center inquiry about auto insurance was just browsing life insurance offers on the Web the day before calling.

Going for Cross Channel Optimization

However, the website is just one of several channels—and consumers don’t think in channels, they think in brands. So, as hard as some have worked to blend their operations and business data across their brick-and-mortar, call center and Web operations, many gaps still exist.

Disjointed marketing and sales practices are leading to frustrated and disgruntled customers when they are forced to rehash the same details whenever they switch between channels. This scenario is one that causes many customers to abandon their inquiries and take their business elsewhere.

Consider financial services as an example. A bank, which might use its CRM system and propensity modeling to address gaps in a customer’s portfolio of products, may suggest a new account upgrade, an improved insurance policy, or a more favorable home equity line through the customer’s local branch or a direct mail offer. But what if that same bank knew that a customer had visited its mortgage calculator facility when last visiting its website? This would present an ideal opportunity to make a timely, customized offer. Even more compelling would be to have the offer serve as the primary landing page content presented the next time the customer goes online to transfer money or pay a bill.

The ability to adapt online content for customers and prospects based on their known preferences is a powerful way to build and strengthen relationships, particularly if dovetailed with offline activities.

The Path to CRM Nirvana

he potential impact of personalized marketing over the Web is undisputedly enormous. E-business owners have about seven seconds to capture the attention of an online visitor and engage their interest. If this opportunity is lost, the customer will move to a competitor. And if that competitive experience provides more relevant, personalized content and a pertinent offer, the customer may never come back — despite previous loyalty to the brand.

Imagine if it were possible provide real-time targeting your visitors while they were still browsing your site, therefore able to influence their final purchase— no hoping for the next visit, no lost opportunities. Instead, you seize the moment, right when it matters. Imagine the possibilities and the revenue potential it could bring.

It is imperative that companies integrate customer data across all channels. Understanding what customers have been doing across channels can make every interaction an extension of what they may have begun elsewhere — creating a more personal, relevant and rewarding experience for both the customer and the business.

While the majority of organizations appreciate the value of personalization (Forrester Research notes that organizations have wanted to personalize their Web marketing for the past 15 years), only a small minority have actually followed through.

The building blocks exist to get e-businesses started — organizations can model what customers do as they navigate a site’s Web pages, and they can segment this data so it can be used for tailored promotions both on the Web, during a current or future session, or across other channels. Nirvana is a fully integrated CRM solution that feeds into specific online offers.

By waiting to see what the competition does first, companies risk losing the advantage — and customers. Use the personalization capabilities available today to move swiftly, offer a killer deal, and potentially gain a lifelong customer.

December 19, 2012by Paul Dunay
Behavioral Targeting, Personalization

Why Digital Marketers Need to Get More Personal

What does personalization really mean? You’ll be forgiven if you have absolutely no idea. As trendy catchwords go, “personalization” has become a go-to term for websites and online marketers, laden with all the possibilities of connecting with individual consumers and a departure from the limitations of a one-size-fits-all approach.

Nearly every online marketing vendor touts some form of personalization as the secret sauce for helping to target customers.

It makes sense. The potential of personalized online marketing, when done well, is enormous—and for that reason, it’s a compelling sell. The problem is, it hasn’t been done successfully thus far. And thanks to vendor hype and overpromise, just mention the word “personalization,” and most have learned to greet it with a healthy dose of skepticism.

But personalization isn’t just marketing hype. It’s a complex concept that really can live up to its billing. However, retailers, in tandem with their marketing vendors, must first identify what personalization really means—and what it means to their business and target customers.

Furthermore, when it comes to their websites, mobile sites, apps and CRM platforms, major e-commerce players need to realize that only through a customized combination of multivariate testing, optimization and personalization best practices can they truly begin to reach consumers with personalization that is effective and full of impact. There are no easy answers or instant solutions for creating personalization that works. It’s about evolution rather than revolution.

Defining Personalization

A truly personalized customer experience—what amounts to a custom website for every consumer—has been the Holy Grail of marketing for over a decade. Yet the very concept is conflicted, fragmented and confusing. Ask 10 marketers to define personalization and you’ll get 10 answers. You’ll also find that despite all the hype, the bar has been set low; most of these same marketers are hoping for nothing more than a few product recommendations or more effective targeting.

Even the experts don’t give us a whole lot of direction on personalization. According to Forrester, Web personalization is “creating experiences on websites or through interactive media that are unique to individuals or segments of consumers.” Just about as vague as every other definition.

In reality, every specific piece of information you can gain about your customer—from search information to online behavior and purchases—can be used to create a personalized experience. That means that your approach to personalization can be as simple (using one or two collected insights) or complex (a detailed formula based on multiple insights) as you want it to be.

With the right combination of technology, research and testing, e-commerce businesses can now deliver a personalized online experience that far exceeds anything that can be delivered in store—short of hiring a dedicated personal shopper. With the right personalization strategy and tools, companies can create an online equivalent of a brick-and-mortar store, where anything a consumer might want is located in a single aisle.

Technology Is So Personal

It goes without saying that your marketing team is comprised of geniuses, but a lack of imagination—and technology—may be limiting their vision when it comes to personalization.

Yes, they’ve thought about segmentation, recommendations and retargeting, but these techniques are only a fraction of what technology now allows. New sophisticated real-time automated SaaS solutions empower marketers to create personalized experiences that far exceed what was previously possible. With SaaS solutions working in tandem with strategy and implementation, companies can begin to move toward complex forms of personalization—and achieve online what is already being done offline with propensity modeling and other business analytics.

Really, knowing about low-cost SaaS solutions—and how to use them to take advantage of opportunity—might just be the most significant indicator of marketing genius.

Getting Started with Personalization

Once the right technology is in place, one of the best ways to employ personalization is with a set of “rules” that define parameters. These rules establish conditions for a specific visitor experience; for every insight gleaned, you create a more and more personalized experience.

Of course, rules don’t exist in a vacuum. When defining them, you must take into account known consumer behaviors, including the various stages that shoppers go through when making any kind of purchase and the fact that they may visit your site several times before actually pulling the “buy now” trigger. While this knowledge might seem to complicate your rules in the immediate term, it can be used to your advantage.

Sure, go ahead and create rules for first-time visitors, but you can and should also devise more complicated formulas that incorporate insights and data from previous visits and apply them to future visits. So, for example, retarget repeat visitors based on the last product they searched for during their last visit. This rule path can then be enhanced with complementary content or offerings, whether for discount on the searched product or an up-sell on similar items. It’s personalization that gives customers what they want and shows them that you value them—a must for creating relationships and loyalty online.

Keep in mind, however, that while targeting with rules is effective and often a great place to start, it does have its limitations.

Marketers will find it nearly impossible to manually define rules for expansive websites that have vast and diverse daily traffic. In this case, technology needs to be partnered with sophisticated behavioral targeting through mathematical models that enable you to predict the most compelling content and offers based on known insights and data points about each visitor. This type of model learns and adjusts dynamically over time to optimize visitor experiences with content that yields the highest conversion rate. This approach is also better for the broader range of content (product types, specific brands or destinations) that each individual receives based on unique predictive attributes.

Using Product Recommendations the Right Way

Want to see great personalization in action? Amazon continues to set the gold standard for best practices in personalization. The site has an unparalleled ability to recognize and deftly exploit consumers’ online browsing and buying habits. (Of course, it also has the advantage of customer interactions living entirely online, while most retailers have offline presences that dilute their ability to gather insights.)

Because of Amazon’s clear success, almost every major e-commerce site has taken steps to mimic Amazon’s highly successful interactions with returning customers. (“You were interested in XYZ, so you may enjoy ABC,” etc.)

But that doesn’t mean they’re getting it right. Everything from competing recommendations (you want shoppers to buy more, not different) or recommendations for products that are out of stock to a lack of testing and product reviews means that many recommendation programs are falling flat or, even worse, are counterproductive.

To offer successful personalization through recommendation, focus on the essential elements.  Product recommendations should be placed on category pages, product pages and the shopping cart or basket page, with each page type getting its own recommendation formula and approach. This approach allows for more targeted recommendations and for segmented testing and optimization of recommendations. Recommendation content, placement on the page and the design of a promotion all play a role in the success of recommendations. Segmenting and measuring the conversion impact of every detail (e.g., images, fonts, colors, the number of recommended products, the placement on pages, and the recommendation model used) can help you identify the approach that yields the highest conversion rates for your visitors.

With a program for monitoring and improving recommendations, you improve the shopping experience for each customer—and potentially increase revenue and cart sizes.

Maximizing the Opportunity  

Companies that have already successfully leveraged new SaaS solutions along with optimization and personalization strategies have achieved, on average, a double-digit increase in conversions. And with these programs becoming more common, consumers are going to be expecting a sophisticated level of personalization.

The good news is that with the SaaS-based model, companies can have personalization programs up and running immediately. Add in multichannel data from call centers and stores or branches, and they can create an organization-wide, cross-channel approach to personalization within a quarter.

There is no doubt that, after years of hype and hyperbole, we’ve finally found the holy grail of online marketing: Personalization.

November 14, 2012by Paul Dunay

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Welcome to my blog, my name is Paul Dunay and I lead Red Hat's Financial Services Marketing team Globally, I am also a Certified Professional Coach, Author and Award-Winning B2B Marketing Expert. Any views expressed are my own.

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