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Improving Shopper Experience

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Presentation on theme: "Improving Shopper Experience"— Presentation transcript:

1 Improving Shopper Experience
Is closing retail stores the best long term solution?

2 E-Commerce Threat Is Real But… Local Service Matters
Are they just buying jeans, or is it more than that? ? OR “What if I wanted a second opinion from someone who knows what I like based on actual purchase history?” “Can I look in the mirror and see how they fit?” “What premium will I pay for local convenience from someone I trust?” “What if there are defects? What is return policy?” “Can I return? How easy is the return process?

3 Online Trolling  Offline Purchase Is Real
Which of the following statements best describes your attitude to purchasing products online?1,3 Why do you browse brands/products on your mobile device but then buy through another channel (e.g., on a desktop/laptop, in a store, etc.?)1,3 I prefer to purchase products online on a desktop/laptop rather than my phone I have no preference on where I purchase products online I prefer to purchase products online on my phone rather than on a desktop/laptop It’s more difficult to buy it on my phone I have concerns about entering personal information on my phone I’d rather see the product in a store before I buy it How important is it for you that brands deliver seamless experiences across channels?2,3 How likely are you to engage with brands that you feel understand you or use your information to create better experiences for you?1,3 Very important Important Somewhat important Not important Not at all important Much more likely Somewhat more likely Would not change my behavior 1Base: 2,011 mobile shoppers in Austria, Germany, the U.S., and the U.K. 2Base: 2,011 mobile shoppers in Austria, Germany, the U.S., and the U.K. (Answers of “Don’t know” not shown) 3Source: A commissioned study conducted by Forrester Consulting on behalf of SAP Hybris, February 2017

4 What Is Customer Experience (CX)?
Customer Experience Management is the ability to track manage and optimize a customer’s journey across the following 12 stages of a product or service transaction Look Into the Shopper’s Mind … For the Desired Future Outcomes AWARENESS ADVOCACY FAMILIARITY LOYALTY CONSIDERATION TRUST PURCHASE INTENT SHARE RATE PURCHASE USE LIKE

5 Each Customer’s Journey Is Unique
1,000 PROSPECTS FAMILIARITY 3 ADVOCATES AWARENESS CONSIDERATION PURCHASE PURCHASE INTENT RATE USE SHARE LOYAL LIKE TRUST ADVOCATE 600 400 250 200 66 50 45 40 37 25 12 3 LEVEL OF PERSONALIZATION Numbers for illustration only.

6 The Economics of the Customer Experience Journey
At which stage would you rather spend $5,000 if you had that to spend? SEO/SEM BUDGETS: $2/Prospect * 2500 = $5000/Month CUSTOMER ADVOCACY PROGRAM COSTS: $5000/Advocate/Year MARKETING: $7/Lead * 714 Leads = $5000 Drip Marketing Campaign Look Into the Shopper’s Mind … For the Desired Future Outcomes AWARENESS ADVOCACY FAMILIARITY LOYALTY CONSIDERATION TRUST PURCHASE INTENT SHARE RATE PURCHASE USE LIKE SALES: $3000/Hot Lead – $200,000 Sales Executive (Chases 200 Leads A Year) CUSTOMER SATISFACTION: $100/user X $50 coupon = 5,000 Sample size 1000 prospects. Numbers for illustration only.

7 OSG’s Core Mission Is Based on Customer Centricity
Look Into the Shopper’s Mind … For the Desired Future Outcomes AWARENESS ADVOCACY FAMILIARITY LOYALTY CONSIDERATION TRUST PURCHASE INTENT SHARE RATE PURCHASE USE LIKE OSG’s is “The Catalyst for Customer-Centered Marketing. We… Help you understand WHAT your customers want and WHY Help you develop actionable insights Help you use these insights to innovate, and grow your business + =

8 Here is what micro-targeting does today…
SOCIAL IMPACT BRAND CONVENIENCE QUALITY PRICE ALL CUSTOMERS ….. ….. Micro segment profiles LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 Highly skeptical Low awareness Caucasian, females, college degree, active Face Book users Affordability thresholds LOW SEGMENTATION Baseline expectations of Product or Service Quality

9 OSG View…Securing Shopper Engagement in three steps
UNDERSTAND SHOPPER EXPECTATIONS IMPROVE SHOPPER EXPERIENCE SECURE SHOPPER ENGAGEMENT 1 2 3 OSG offers a three step process to patient engagement This process is based on step wise progression.. Expectations Experience Engagement OSG is the world leader in trade off analysis with its proprietary ASEMAP engine licensed from Stanford university. Over the last 10 years OSG has used its ASEMAP engine to demonstrate value in 600 Life Science projects specifically for patient engagement .. Patient Segmentation, brand awareness, target product profile design, message testing, price testing, etc. ASEMAP has delivered an average of 20% improvement in patient engagement, 16% improvement in top line revenues for some of our clients in over 30 diseases globally in life sciences, med devices and in 300 other engagements in retail, CPG, energy and financial services. We are bring this expertise to our behavioral analytics SaaS platform CAVII.. The Value Inference side of CAVII is powered by ASEMAP and the Cognitive Intelligence side is powered by IBM WATSON. CAVII is now running at scale in retail and life/health insurance projects We are here at Dpharm 2016 to showcase our capabilities to you Dpharm judges and the innovators in the pharma industry

10 CAVIITM SaaS Analytics Technology Platform
CONTINUOUS CAVIITM REPORTING CAVIITM’s Advantage for Clients Seamless integration and analysis of multiple data sources (primary, POS, social media, search history, etc..) Continuous analysis and reporting Real-time visualizations of findings SaaS – minimum burden to client IT CONSUMER PANELISTS CLIENT EXECUTIVES OSG DATA ASEMAPSM Engine NON OSG DATA Client Market POS (IRI/Nielsen) Market Panel (IRI/Nielsen) Store Loyalty Weather/Economic Social Media iBeacon Etc. ANALYTICAL METHODS IBM Watson Cognitive Behavior Analysis OSG Proprietary Predictive Models DemandTec Etc. ANALYTICAL MODULE VISUALIZATION TOOLS Dashboards Fixed Reports Interactive Reports Mobile Devices Etc. DATA INGESTION MODULE VISUALIZATION MODULE CAVII-RTM: Digital Customer Engagement Platform (SaaS)

11 Shoppers also could give access to social media, etc
Shoppers also could give access to social media, etc. for continuous identification of innovation Usage occasion probes ASEMAPSM Jobs trade-off exercise, in usage context + Brand Performance, Brand Choice Demographics Unstructured data analyzed by Example / Illustrative purposes only

12 Micro-targeting with OSG…mass personalization
HISTORY OF TRUST SOCIAL IMPACT BRAND CONVENIENCE QUALITY PRICE ALL CUSTOMERS ….. ….. Micro segment profiles LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5 LEVEL 6 Highly skeptical Multiple sellers, low trust Low awareness Caucasian, females, college degree, active Face Book users Affordability thresholds LOW SEGMENTATION Baseline expectations of Product or Service Quality

13 Loyalty Program Design for a Leading Retailer
Objectives Regional retailer planned to launch a loyalty program and needed to understand: Program viability What attributes the program should offer How best to leverage the program to retain important customers Determine the loyalty program ROI by market and store type Insights/Results The key target segment grew dramatically - 5 point lift Key target segments identified using OSG unique Future Response segmentation either met or exceeded revenue forecasts Approach OSG conducted a phased approach Online interview and store intercepts Focus groups for reactions to proposed program Outcome modeling to estimate migration potential and business impact Segmentation Landscape Migration analysis to understand the impact of the rewards program by target segment Retail – need? Lacking info Business Impact Revenue predictions are in-line for the majority of stores; no stores have seen a decline Forecasting accuracy of financial growth impact delivering at up to ~102% of prediction

14 Contact Us Giri Iyer EVP & GM, Analytics Phone: Dr. R Sukumar CEO Phone:


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