DMA 2013 Transforming Your Customer Experience

Transforming Your
Customer Experience:
4 Steps and
49 Actions Items
Prepared by
Ernan Roman Direct Marketing
October 12 &1 13, 2013

Ernan Roman
President
Ernan Roman Direct Marketing Corp. (ERDM)
Recognized as a marketing thought leader. Inducted into the Marketing Hall of

Fame for creating three transformational methodologies: Voice of Customer
(VoC) Relationship Research, Opt-In Marketing and Integrated Direct Marketing.
Named by Crain’s B to B Magazine as one of the “100 most influential people in
Business Marketing”.
ERDM specializes in conducting Voice of Customer research to identify

Ernan Roman
Customer Experience strategies that generate significant increases in response
President,
and revenue. Clients include IBM, MassMutual, QVC, NBC Universal, Microsoft,
Ernan Roman
and Symantec Corp.
Direct Marketing
As a leader in providing VoC research-based guidance, ERDM has conducted
Corp. (ERDM)
over 10,000 hours of interviews with client’s customers and prospects to gain
ernan@erdm.com
an in-depth understanding of their expectations for high-value relationships.
www.erdm.com
Ernan’s latest book on marketing best practices is titled, “Voice of the Customer
Marketing: 5-Step Process to Create Customers Who Care, Spend, and Stay”.
Ernan writes the widely read and Huffington Post published blog, “Ernan’s
Insights on Marketing Best Practices”.
His other books include “Opt-in Marketing” and “Integrated Direct Marketing”.
2
Presenters
Kris Gates
Vice President, Customer Experience Marketing, MassMutual Retirement Services
kgates@massmutual.com
Eric V. Holtzclaw
Vice President & General Manager, PossibleNOW, Preference Management Consulting
ehotzclaw@possiblenow.com
Douglas Stein
President, HMS National
dstein@hmsnational.com
Bob Nanna
Marketing Manager, Threadless
bobn@skinnycorp.com
3
Kris Gates
VP, Consumer Experience Marketing
MassMutual Retirement Services
Kris Gates joined MassMutual in 2006 and is currently VP of Marketing, focused

on the consumer experience for the Retirement Services Division.
His responsibilities include development, execution, and measurement of
marketing strategies designed for employees of companies offering MassMutual
retirement and insurance products.
Kris Gates
VP, Consumer Prior to assuming his current role, Mr. Gates served as AVP, Customer & Interactive
Experience Marketing, where he was responsible for the touch points making up the
Marketing distribution, plan sponsor and participant experience. Before that, he spent
MassMutual 3 years focused on the distribution marketing of retirement plans.
Retirement
Services Prior to joining MassMutual, Mr. Gates spent 2 years as a Marketing Manager in
the HR consulting industry, where he developed employee marketing campaigns
and programs for Fortune 500 clients. Before that, he spent 5 years as an
Institutional Product Administrator at JP Morgan Investor Services.
Mr. Gates holds a Bachelors Degree in Business from Western New England
College.
www.massmutual.com
4
Workshop Agenda
• Saturday, 10/12:
Part 1; 10:00 - 12:30
Step 1, How to Use Voice of Customer (VoC) Insights to Drive Your
Customer Experience Strategies
 Speakers:
Ernan Roman, President, ERDM
Kris Gates, VP, Customer Experience Marketing, MassMutual
 Break: 11:15 - 11:30
Lunch: 12:30 - 2:15
Part 2; 2:15 - 4:30
 Step 2, Create Powerful Preference-Based Databases With Customer’s
Self-Profiled Information
 Speakers:
Eric Holtzclaw, VP, PossibleNOW
 Break: 3:15 - 3:30
5
Workshop Agenda
• Sunday, 10/13:
Part 3; 10:30 - 11:20
 Step 3, How to Use the 5 Principles of Multichannel Marketing
 Speakers:
Douglas Stein, President, HMS National
Lunch: 11:20 - 12:50
Part 4; 12:50 - 1:50
Step 4, Increasing the Relevance and ROI of Your Online and
Social Media Marketing
 Speakers:
Bob Nanna, Marketing Manager, Threadless
6
Overview
7
8
Per ERDM VoC, 4 Challenges for Companies
Over the past 12 months, 4 key challenges have emerged from research:
1. Given increasing attrition rates due to competition, new focus

on retention and reducing churn, versus traditional emphasis
on acquisition.
2. Critical element of retention strategies: provide much higher levels of

personalization. Applies to communications, offers, and experiences.
3. Learn how to engage customers to opt-in and provide detailed

preference data, thereby enabling true personalization.
4. Achieve frictionless, high-value, customer engagement across the

entire online and traditional multichannel mix.
9 Overview
Amazing Opportunities for Engagement
Business Insider 5/17/12

10 Overview
Samuel Adams Crowd-Craft Project:
Customers created “B’Austin Ale”
 Invited Sam's Twitter, Facebook, and Google+ friends to
provide their preferences to help create a new beer
 Asked to make their choices about the beer's malt profile,
hops selection, yeast type
 Per Steve Greenlee, at 99 bottles:
“Man is it good”
New York Times 7/30/12
11 Overview
Time to Stop Doing It Wrong
WSJ 3/19/12
12 Overview
Impact of Poor Customer Experiences
“...failing to deliver a high-quality customer experience can

result in a staggering erosion of a company’s customer base;
loss of as much as 50 percent over a five-year period.”
Accenture, 3/12
13 Overview
Consumers Trust Self-Selected Content
More Than Push Communications
Per Forrester US & European research:
 Only 10% of consumers trust advertising
 Between 85% and 90% of consumers don’t trust posts by companies or brands
on social networking sites.
 Self-selected digital pull content rules the roost with up to 70% of consumers
affirming that they trust brand recommendations from friends.
 Brand-led advertising online and offline has lost its allure.
Today’s consumers decide where, when and how they want to engage
with brands.
B2C, 3/22/13
14 Overview
B2C, 3/22/13
15 Overview
Time to Get it Right
Treat customers the way we want to be treated…
…and generate double-digit increases in response and revenue
16 Overview
Goal for this Workshop
Help you achieve the success of innovators such as:
17 Overview
Achieve Consistent Double-Digit Results
Microsoft’s success:
Opt-in rates up to 95%
Open rates greater than 50%
Response rates performing in the double-digits
Volume license revenue from those in the VoC-

driven program is 2x greater than the control
18 Overview
“When HP uses the Voice of Customer

methodology, our marketing campaign results
improve dramatically: response rates improve
3x to 10x, sales increase 2x or more, and we
can spend far less to get great results.”
-- Gary Dawson, Hewlett-Packard

Americas Advertising and
Direct Marketing Manager
19 Overview
HMS National, Inc. Life Line Screening

25% 50%* increase in 50% 85%* growth in
average renewal rates returning customers
*updated 8/15/13 *updated 8/15/13
20 Overview
The VoC-Driven CEM Process
CEM is a process Companies who

Goal is to achieve implement the CEM
that
in-depth process consistently
values, and is
relationships based achieve double-
guided by, the
on understanding digit increases in
insights of
how customers and response, revenue
customers
prospects define and retention.
and prospects.
their expectations Includes Microsoft,
for relationship, NBC Universal,
relevance and IBM, HP,
engagement . and mid-size
companies.
21 Overview
4-Step Voice of Customer-Driven
CEM Process for Achieving
Consistent Double-Digit Results
Step 4: Step 2:
Online and Opt-In
Digital Engagement
Step 1:
VoC
Research
Step 3:
Multichannel
Marketing
22 Overview
Step 1
• How to Use Voice of Customer
(VoC) Insights to Drive Your
Customer Experience Strategies
• Definition: Specialized depth
research to understand
customer/prospect needs, Step 1:
decision making process and VoC
Research
expectations of the optimal
experience via web, digital,
email, offline media and
customer service call centers.
• These insights enable
development of customer
driven Engagement Strategies
and Action Plans.
23 Overview
Step 2
• Create Powerful
Preference-Based
Databases With
Customer’s Self-Profiled Step 2:
Information Opt-In
Engagement
• Definition: VoC-driven
process for engaging Step 1:
customers/prospects to VoC
Research
Opt-in and self-profile their
preferences, thus creating
uniquely accurate Opt-in
databases.
24 Overview
Important!
Opt-in is not
about
passively
agreeing to
receive
email.
It’s about actively opting-in to a

relationship and self-profiling your
preferences and aversions.
25 Overview
Step 3
• How to Use the 5 Principles
of Multichannel Marketing Step 2:
• Definition: VoC-driven Opt-In
process for deployment of Engagement
the social and traditional
multichannel media mix, Step 1:
VoC
per individual preferences. Research
Step 3:
Multichannel
Marketing
26 Overview
Step 4
• Increasing the Relevance
and ROI of Your Online
and Social Media Step 4: Step 2:
Marketing Online and Opt-In
Digital Engagement
• Definition: Digital media
represents not a means
Step 1:
for direct selling, but a VoC
means for creating or Research
improving relationships.
• Selling is a by-product of
Step 3:
the quality and mutual Multichannel
benefit of those Marketing
relationships.
27 Overview
Step 1: How to Use Voice of
Customer (VoC) Insights to
Drive Your Customer Experience
Strategies
Step 1:
VoC
Research
28 Step 1: VoC Research

JC Penney;
Consequence of Ignoring the Customer
By early fall 2011, Mr. Johnson was tackling Penney’s pricing,

which he thought used too many discounts.
He ignored a study Penney had just completed on customer
preferences, and gave merchants a one-sheet grid explaining
what prices they could use.
“Ron’s response at the time was, just like at Apple, customers
don’t always know what they want,” said an executive who
advocated testing. “We’re not going to test it — we’re going
to roll it out.”
NYT, 4/9/13

Result of Arrogance

Global CMO Survey:
For 42% of CMOs:

“…representing the voice of the customer
is one of the most critical factors in ensuring
personal success as a marketer”.
“CMOs and their peers understand that the real challenge is

…to become the experts of the customers…They must
understand what customers represent for the whole
organization to help shape the strategy for the overall
business.”
-- Luca Paderni, VP and Principal Analyst, Forrester.
Heidrick & Struggles and Forrester Research, 1/23/12

Don’t The economy and
re-engineer social media have
profoundly changed
your relationship
buyer’s priorities and
marketing expectations.
strategies from
If you have not
the isolation fundamentally
of your recalibrated
conference strategies within the
room. . . past 12 months, you
are out of sync with
your customers.

VoC Learnings from Clients Including:

How Consumers Define “Customer Experiences”*
1. Improve the customer experience across every point of

contact with your organization.
2. Applies to all elements of the media mix and all departments

in your organization.
3. High quality experiences must be maintained throughout the

relationship “not just when you are selling or renewing”.
*Definition is based on 10,000 + hours of VoC research conducted by

Ernan Roman Direct Marketing, 5-26-13

How Consumers Define “Customer Experiences”*
4. Customer experiences must be driven by my individual

preferences regarding: message, timing, frequency, and
media mix.
5. Preferences must drive high quality personalization of

communications and experiences.
Privacy of preference information is essential.
*Definition is based on 10,000 + hours of VoC research conducted by

Ernan Roman Direct Marketing, 5-26-13
Per VoC: Customer
Experience
Requirement # 1
Significant gap between what
customers/prospects consider a great
customer experience and what marketers
are providing.

Per VoC Research Findings
Across the last 6 months, a consistent trend:
Consumers expect companies to use
Consumers have their preferences to deliver
shifted from being increasingly personalized offers,
passive recipients communications, and experiences.
of ‘push’
marketing, to
selecting Your Opportunity:
companies which How much more can
engage, listen to, and you be doing to
act on, input from engage and empower
customers and your customers and
prospects. prospects?

VoC Learnings
Question Answer
Which has more impact on Engagement/Relationship
retention and repeat strength has 12 times more
purchases; influence on retention and
Customer Satisfaction or repeat purchases than
Customer Satisfaction.
Engagement/Relationship?
Satisfaction is a minimum
expectation.

VoC Learnings
Question Answer
Which is a more significant Engagement/Relationship
driver of word of mouth strength has 18 times more
recommendations; influence on word of mouth
Customer Satisfaction or recommendations than
Engagement/Relationship? Satisfaction.
This has profound implications
for re-allocating greater
budget for Retention/
Relationship building.

VoC Learnings
“The fastest way

to be forgotten is
“We buy. You disappear to buy from you.”
without a trace.
Oh, except for the
monthly bills.”
“Relationship?
You guys are about
‘buy and die’!”

Smart Engagement

Smart Engagement

Another Powerful VoC
Finding:
Opportunity
To Transform
Your Marketing!
Cited so
Voiced by B2B frequently and
and B2C clearly that we
customers and call this:
prospects Reciprocity of
Value Equation

Reciprocity of Value Equation:
Recognition by consumers that to receive or access increasingly

relevant information, they must provide information regarding their
preferences. Applies to B2B and B2C.
If they trust the brand and receive a useful value proposition,

consumers will opt-in to sharing increasingly detailed preference
information in exchange for the marketer’s promise to deliver
relevant information and offers.
This reframes data privacy concerns!

Reciprocity seen as a valuable exchange of information which
improves the customer experience.
This information will constantly change, grow, and be enriched,
through ongoing interactions with consumers.

Reciprocity of Value Equation:
As a result of these preference-based interactions, consumers are

more willing to respond to communications and offers.
This customer-driven information exchange results in uniquely

accurate databases which consistently achieve 25% to 50% increases
in revenue.

Double-digit Results from Microsoft’s
VoC-driven Customer Engagement Programs
Response
Open rates rates Revenue
Opt-in rates 2x greater
greater than performing in
up to 95%. than the
50%. the double-
digits. control.

Per VoC: Customer
Experience
Requirement # 2
Differentiate your company by providing
personalized experiences, communications,
and offers.

Customer Experience Requirement #2:
Per VoC findings, customers and prospects view personalization as

the next step in a company’s commitment to service excellence.
Personalization is viewed as a service and benefit, not just a sales

tool.
They also look to personalized follow-up emails as value-added

triggers to go online and evaluate relevant products.
Online shoppers view personalization as a necessary requirement

for engagement.

BUT, consumers are very clear in defining personalization as much

more than “those old-fashioned” transaction-based communications.
Representative VoC research quotes:
“I want more than just

buying history-based
emails”. “With today’s technology, I expect the
experiences and emails to reflect my
preferences”.

VoC Learnings
Customers who have shown an interest in Tools &
Home Improvement might like to check out our top
deals on top brands, as well as great gift ideas.
“Communications
should be relevant to
my interests and
preferences.”
“Email may be the base

of your communications
with me, but I’m getting
too much junk. If it’s really
important, send it to
me by mail.”

Double-digit Results from Songza’s
Personalized Music Concierge:
Results since
implementing
VoC-driven Monthly Time on site
personalized Retention has has increased
tripled. active users
experiences: has tripled. by 75%
(from 40
minutes to
over 70)
Selected among TIME Magazine's

50 Best Websites of 2012

Per VoC: Customer
Experience
Requirement # 3
Deliver on the expectations of improved
customer experiences across every point of
contact with your organization.

53 Step 2: Opt-In Engagement
Today’s shopper is multi-dimensional;

multi-channel and multi-purpose.
Many report using multiple media,
often at the same time.
Per a recent VoC:
"I take pride in being a smart shopper.
I might see something on TV, or hear
an ad on the radio.
I’ll text some of my fellow FrugalMom$
friends to check it out.
Then I’ll browse the website. If the
item interests me, I’ll put it in my cart.
When I’m finished browsing, I’ll print
out the cart.
Then, I call Customer Service to have
them answer
my questions, and place the order.”
54
VoC Learnings
“Self-serve makes
“Don’t just sell me it easy for you, not
the service. Provide the customer.”
ongoing value at key
times.”
“Email blasts
“The quality of your do not equal
service is key to ‘relationships’.”
how we judge you.”

VoC Insight re: Customer Service
“The CSR had a great attitude and spoke

as if she was smiling.
Made me feel like this was my time and she
would spend the time necessary.
This told me a lot about the company”.

Web “Call Me” Option Resulted in Great Service
Experience
This is Grace from Amazon. Thank you for giving me the chance to assist
you today.
I’ve created an authorized return label that may only be used for the return
of this item. Follow the link below to print your mailing label.
Also, I’ve waived the $8.99 shipping charge for your recent order,
Order ID: 107-0409587-9302640
Did I solve your problem?

YES NO

Service as a Driver of Shareholder Value
AmEx views Customer Service as a major driver of market valuation

and shareholder value.
“For every servicing transaction we ask, ‘How can we

get the customer to feel better about American Express
and recommend it to a friend?’. That’s a promoter.”
“For a promoter…we see a 10% to 15% increase in

spending and four to five times increased retention,
both of which drive shareholder value.”
Jim Bush,
Customer Service Czar
American Express
Fortune, 4/19/12

Per VoC: Customer
Experience
Requirement # 4
Provide high quality experiences throughout
the customer lifecycle, (not just during
Acquisition & Renewal).

Customer Experience Requirement # 4:
Per VoC, the Entire Customer Experience must be integrated.
How effectively are you integrating each of these experiences?
Acquisition
Renewal Conversion
Integrated
Customer
Experience
Retention/Ongoing
On-boarding
Engagement

New Customer Onboarding:
Per VoC, customers want MSC to
learn their needs at the beginning of
their Lifecycle.
 VoC-based Onboarding Program:
 Show customers that MSC cares; they are more than “just a sale”.
 Take Step1 in the preference profiling process by determining what
products, services, and communications are most relevant.
 Determine which channels will be most effective to deepen the
relationship with each individual customer.
 Results:
 20% lift in response rates.
 Over 20% lift in revenue per customer.

Post Sale Engagement…Sort Of:
From: Ford <ford@email.fordvehicles.com>
Reply-To: Ford <myford@customersupportctr.com>
Date: Monday, September 9, 2013 10:35 AM
To: Ernan Roman <ernan@erdm.com>
Subject: Please verify your email subscription.
As part of the Ford Motor Company family, we recently received

your email address – and to help keep you informed we'd like to
send you emails with news on the latest technologies, events,
owner benefits, service coupons and more. Simply confirm that
you would like to receive email updates and you'll be in the know.
As part of the Ford Motor Company family, we recently received your email address –
and to help keep you informed we'd like to send you emails with news on the latest
technologies, events, owner benefits, service coupons and more. Simply confirm that
you would like to receive email updates and you'll be in the know.
62
Wasted Opportunity to Learn My Preferences:
Thank you!
Your Ford Motor Company email subscription has been confirmed. Look for more emails in the
future.
Check out our See all the

vehicle lineups: benefits of ownership:
63
10 Insights to Gain from Your VoC Research
1. How to change from transactions to engagement based on a deep

understanding of customer's needs.
2. The critical issues facing decision makers in this economy, as they

evaluate your product or service.
3. How consumers identify the key steps in their decision making process.
4. What information and offers are most effective at each step, and
via what mix of channels.
5. Who consumers identify as the decision makers and the empowered

influencers.

10 Insights to Gain from Your VoC Research
6. How your customers define a value-added and competitively

differentiating relationship with your company.
7. Effective value propositions for engaging customers in an Opt-In

relationship, so they will trust you with their detailed self-profiled
preferences.
8. What initial preference information will they provide and how can this
be enriched/expanded in the course of progressive profiling.
9. The optimal role for: web, digital, email/mail, inside sales, field sales,
tech, stores.
10. This information will populate your Opt-In database with uniquely
accurate information.

VoC Helps Transform Your Marketing…
• From “CRM” and “managing” • To “CMR” and “customer-

customers... which has had a to managed” relationships.
high failure rate...
Per Disney:
“The term ‘CMR’ reinforces the notion of the guest
being the one who is driving the experience.”

Transforming the Customer
Experience
A Case Study
__________
Transforming the Customer Experience
MassMutual Retirement Services (MMRS)
• A division of MassMutual Life Insurance Company, Fortune 94.
• Leading provider of employer sponsored retirement plans including 401k, 403b, 457,
pensions, etc.
• Help the American worker to be better prepared to fund their retirement.
• Distribute to employers through 3rd party financial advisors. Once the B2B sales
process is complete, the product is available to consumers (employees).
By the Numbers: Our mission is consumer

• 3 million+ consumers (plan participants) retirement readiness, defined by
• 40,000 employer relationships their ability to generate 75%
• Avg. consumer age = 42 replacement income during
• Avg. consumer account balance = $43k retirement, so the American
• Avg. savings rate = 5.50% worker can retire on their own
terms.
?
How can we accomplish this?
__________
Transforming the Customer Experience 2
Currently in a Position of Strength
• Record plan sales for 4th year in a row – 15% sales increase year over
year
• Record plan retention, 96% – Industry average 91%
• Record client satisfaction – highest in company history
• Consumer communication & education experience ranked #1 by Financial
Advisors
So, what’s the value of a Voice of Customer (VoC)

investment now?
To sustain our competitive advantage!
__________
Despite our efforts, the majority of Americans are
not prepared to fund their retirement.
Will not be retirement

ready by age 67 On track for retirement
(replacing 75%+ of
current income)
Will reach 60-80% only

with social security
included
can make adjustments

76% now that will allow them
to retire by age 67.
__________
Abundance of quantitative data, but it’s not driving
real change
Here’s why:
• Various interpretations of the same data
• Questioning the sources/methodology
• “Yeah, but our customers/we are different”
• Not providing in-depth insight regarding what is not optimal

and how customers want us to improve
__________
Consumers needs are changing faster than ever before.
Are we prepared to meet them?
Consumer Debt
Personal Savings
__________
So, why do a VoC program?
• We want to do better for our customers • Answer “why/how?” questions
• Qualitative vs. Quantitative Insights • Test ideas prior to any investment
• Actionable in-depth guidance • Protect our market leadership position
Things to consider before launch:
• Include the right • Interview length, sample size • Difficulty and cost of
stakeholders, get buy-in recruiting
• Sample mix, does it mirror
• Internal or external your customer base/target • Customer Data…it’s never
execution markets. as good as you think.
__________
The VoC Process
Determine Set budget and Determine your

objectives timeline audience
Analyze findings
Develop key to identify
Conduct interviews
questions strategy/action
plan
__________
The VoC Objectives
Learn what tools, Find out how

Determine barriers for consumer segments
retirement planning at services, and
information would define deeper
various ages relationships with
make financial literacy
and action easier. MassMutual at key
points in their lifecycle.
Why are How do we create

What else can a customer for
workers not
we do to help? life?
prepared?
__________
Three VoC Research Efforts to date
Distribution
Channel
(163 Interviews)
B2B
Decision
Makers
(107
Interviews)
Consumer
(156 Interviews)
__________
Selecting Your Audience
Corporate Group 1 Group 2 Group 3 Group 4 Group 5 Group 6
Consumer
(156 Interviews) Age 18-34 35-54 55+ 18-34 35-54 55+
Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days
Status Employed Employed Employed Employed Employed Employed
Total 10 10 10 10 10 10
Hospital Group 7 Group 8 Group 9 Group 10 Group 11 Group 12

Age 18-34 35-54 55+ 18-34 35-54 55+
• Who is our existing customer?
Tenure 1-2 years ~5 years ~10 years 0-90 days 0-90 days 0-90 days
• How does that align to our sales Status Employed Employed Employed Employed Employed Employed
strategy? Total 8 8 8 8 8 8
Union Group 13 Group 14 Group 15 Terminated Group 16 Group 17

• How many?
Age 18-34 35-54 55+ Age 35-54 55+
• By product line, demographic?Tenure 1-2 years ~5 years ~10 years Tenure N/A N/A
Status Employed Employed Employed Status Terminated Terminated
• Any 3rd party considerations? Total 7 8 7 Total 13 13
• Incentives?
• How good is the data?
__________
Develop Key Questions Key VoC Question
Funnels
Brand
Image?
• Limit to major topics to
3 Things
allow for in-depth probes MM should
Relationship
with MM?
prioritize
& discussion within the 60
minutes.
• Develop/Review Interview
Positive
Guide. Incentives
Driven by
Retirement
for Savings MM Planning?
Priorities
• Evolve based on Goals?
learnings.
Personalizatio Information
n & Tools?
New
Welcome
Program
__________
Conduct Interviews
• 156 one hr. interviews.
• All by phone with a professional interviewer.
• Interviews recorded; “best of” listened to by

management team.
• Debriefs for strategy ideas and revised areas

for probing.
__________
Key Learnings
Our customer service experience is very positive.
Overall engagement is low.
Customers want more proactive and customized

communications.
Segmentation by needs and life stage, is relative to the support

and guidance they expect from MM.
Few customers were adequately prepared for retirement.
__________
VoC Driven Action Items
Based on VoC learnings and specific customer suggestions, the recommended
action steps address communications and programs through key life stages.
STEP 3
STEP 1 STEP 2 STEP 4 STEP 5
Proactive,
Enrollment/ New Customer Ongoing Annual Review/ “Next Steps”
Transfer Process Welcome Touches Anniversary Plan
Program Program (Terminated)
Upon Job
Immediate 2-3 Weeks Later Throughout the One Year Change
Year
__________
Step 1
VoC-Based Enrollment/Transfer Process
Making the
enrollment/transfer
process as inviting,
memorable and
user-friendly as
Offer more educational assistance to possible will be
customers during the enrollment/transfer key, and customers
process, as some have trouble offered specific
understanding even the basics of asset suggestions to
allocation and selecting a savings amount. help.
Conducting a Needs Providing an

Assessment will help overview of the
to target appropriate “Next Steps”
lifestage information process during this
and education. initial phase will
CRM target better prepare them.
appropriate set of
customers
__________
Step 2
VoC Insight
Interacting shortly after enrollment will
“make me feel like they care whether or not I’m their
customer.”
A New Customer Welcome concept was tested, and

respondents’ feedback greatly enhanced it.
New Customer Welcome Program
Initial “Meeting” with Follow-up On-site, in-

scheduling MassMutual person visits
rep Information
call
Customers Customers Customers Customers
wanted to be able wanted to specify reported that they wanted to be able
to schedule a call how they “met” would appreciate to meet in a group
to ensure with MM: via having written setting, followed
convenience and phone, online materials for by the option to
give them time to chat, text, email, reference. meet individually.
prepare. or even Skype.
__________
Step 3
VoC Insight
Most customers would welcome occasional touches by MassMutual.
These touches should focus on offering education and information about their accounts,
MassMutual processes and policies (i.e. how to change their savings amount) and retirement
planning.
Proactive, Ongoing Customer Touches

MassMutual must offer multiple levels of educational assistance in a variety of formats.
Retirement Retirement Intro to your Webinars Help reading

101 201 retirement statements
__________
Step 4
VoC Insight
Lack of engagement with both MassMutual and their retirement planning is a considerable
barrier for customers.
Reaching out annually with an offer of a personal meeting will help break through the
inherent apathy and forge a stronger connection between MassMutual and its customers.
It will also remind customers, at least annually, about MassMutual and their retirement
account.
Annual Review/Anniversary Program
Representatives will offer to meet to: This program was

•Review the last year’s performance. recommended by
•Set goals for the upcoming year. customers during
the VoC. It was
•Answer any questions. validated and
•Offer help with consolidating other plans. refined in real time
during the balance
•Update their needs assessment and preferences.
of interviews.
•Remind them there is a “Next Steps” (Terminated)
Plan.
__________
Step 5
VoC Insight
Respondents no longer with the company that initially provided their retirement plan
reported being very confused about what they were supposed to do during the transition.
Many cited feeling “lost” and “alone” and unsure about what to do with their account.
This is a significant opportunity to cement a relationship with customers who find themselves
at a critical, emotional time, perhaps looking for a helping hand to guide and reassure them.
Providing support will deepen engagement and create a connection to MassMutual.
“Next Steps” (Terminated) Plan
Initial “Meeting” with Follow-up

scheduling call MassMutual rep Information
Allow the Customer Send a

customer to should be able summary of
to select the
schedule a channel they
the meeting
meeting at prefer: phone, for reference.
their Skype, online
convenience chat, etc.
__________
Post VoC Implementation Example – The SMARTVIEW
• Mock talk show with a cast of 3
discussing personal financial issues
• More humorous than serious
MassMutual’s Smart
• Provided actionable takeaways View
Webisode Email Pilot
• Season 1: 9 episodes over 18

weeks
• Season 2: Starting September 2013
__________
Post VoC Opt in Email Pilot
By opting-in, participants receive
proactive communication when new
episodes are ready.
Results: Opt-in vs. Control Group
94% 1,062% Zero 100%

Higher open Higher video Unsubscribes Deliverability
rate views
__________
How We Segment Our Customers
PAST
One size fits all
PRESENT
Persona based
FUTURE 3 million
One-on-one
__________
Improving Customer Experiences 360°
View
Targeting for Relevancy and Engagement

34 Years Old
Age Groups: 3 Female

6
Gender: 2
18 Unsure
Attitude: 3
90
Behavior: 5 401k
∞
Product Mix: 7 ∞ Attended ‘Gen Y’
Webinar
Preferences ∞
Call Center
__________
Holistic Process Customer
Provided Data
for Scaling CEM
Preference
Customer Customer
Service Intelligence &
Analytics
CRM
Sales Channel Personalized
Integration Communication
Events and Personalized

Webinars Web
Experience
__________
Preference Driven Integrated Multi-Channel Experience
Postcards Web Banners

Phone Calls Group Meetings
Higher
Preferences Engagement
Marketing Tools (Targeting Filter) Better
Webinars
Transactional Mailings Outcomes
Emails
__________
3 Customer Experience Action Items
• Measure and test everything. Customer outreach should be at

the frequency and in the channel your customers prefer.
• Set up organized “listening posts” with client facing areas of the

business for real time voice of the customer feedback.
• Analyze how you are onboarding (welcoming) your new

customers. Invest in this touch, it may end up saving you long
term.
__________
Thank You
__________
Your Top 3 Takeaways?
1.
2.
3.

Step 1:
Step 1: Summary
VoC
Research 4 Steps in the VoC-driven Customer
Engagement Marketing Process:
1. Use Voice of Customer Research to Truly Drive
How to Use Voice Your Engagement Strategies
of Customer (VoC) 2. Create Powerful Opt-In Databases to Drive High
Insights to Drive Impact Personalization Strategies
Your Customer 3. Use the 5 Principles of Multichannel Marketing
Experience 4. Increase the Power of Your Online and Digital
Strategies Media Marketing.
Step 1: VoC Research

96
Step 1:
Step 1: Summary
VoC
Research VoC-insights help you transform your marketing
from “CRM” and “managing” customers to “CMR”
and “customer-managed” relationships.
How to Use Voice Use VoC research to help you understand and pre-test
of Customer (VoC) how to change from a relationship based on just
transactions to a deeper engagement based on a
Insights to Drive broader understanding of customer needs.
Your Customer
Experience Use VoC to engage customers to Opt-In and self-profile
Strategies their preferences. This information will populate your
Opt-In database with uniquely accurate information.

Step 2:
Create Powerful Preference-Based Databases
With Customer’s Self-Profiled Information.
Drawing for 2 Autographed Books:
98
Step 2: Create Powerful
Preference-Based Databases With
Customer’s Self-Profiled
Information
Step 2:
Opt-In
Engagement
Step 1:
VoC
Research
99
Eric Holtzclaw
Vice President & General Manager
PossibleNOW Preference Management Consulting Org.
Eric V. Holtzclaw, Vice President and General Manager of

PossibleNOW’s Preference Management Consulting Organization, has
spent 20+ years creating opportunities through the practical
application of emerging technologies and trends to business.
Eric Eric leads a multi-disciplinary team of seasoned experts that advise the
Holtzclaw world’s leading brands on strategic investments in technology,
Vice President & compliance oversight and operational best practices to maximize
General Manager investments made in marketing and customer experience.
PossibleNOW
Preference Eric's book, Laddering: Unlocking the Potential of Consumer Behavior,
Management
is scheduled for release in July, 2013 and his column, Lean Forward,
Consulting Org.
on entrepreneurship and emerging trends appears weekly on Inc.com.
eholtzclaw@possiblenow.com
www.possiblenow.com

Traditional “Spray and Pray” Marketing
Isn’t Working So Well…

Creepy or Helpful?
Hey, we noticed you looking at digital

cameras on Amazon.com and thought you
might be interested in today’s Woot deal:

Simple Web Visit Leads to Email & Phone
Harassment…
I hope that you don’t view my persistence

as being pushy.
103 Step 3: Multichannel Marketing

Opt-Out is the US Standard
• More than 76% of U.S. adults have registered for the National
Do-Not-Call (DNC) Registry (Harris Interactive).
Average Presidential election voter turnout: 50%
• As of 9/13, over 221 million phone numbers listed on the DNC.
Twelve million new numbers registered over the last 18
months.
• The DMAChoice mail opt-out program has served over 12
million consumers over the past 15 years.
• In the 1st year, 1 million consumers opted out via the
Digital Advertising Alliance’s AdChoices Icon, on
behaviorally-targeted ads.
• Pending Canadian law: electronic commercial messages,
including email, texts, and messages via social media,
going to, through, from Canada without prior consent,
could bring severe penalties.
NY Times 4/29/12
• Italian government banned all unsolicited mail, phone, e-mail,
fax, mobile communications without affirmative consent.

Empowered consumers are questioning why the Opt-Out burden is
on them... versus marketers competing to engage them with value
propositions that motivate them to Opt-In
Unfortunately, Frustration is House re Verizon;

Opt-Out The message: growing. "While we
marketing policies If you don’t like understand the
these practices On 8/9/12, the FTC
are the norm. benefits of
the burden fined Google
tailoring
is on you $22.5 mill. for Safari
They allow advertising to
to privacy violations.
marketers to send customers, we
Opt-Out. Largest FTC civil
offers believe that they
penalty, “…if you’re
and use on-line should be in
going to hold
information control of the
people’s most
to target their sharing and
private data, you
marketing. disclosure of
have to …honor
their personal
privacy
information
commitments”
through an
Bur. Cons. Protection
Opt-In process.”

The Alternative…
Powerful and Socially Responsible Opt-In Relationships
Respect customers and
prospects. Ask them
to define their individual
requirements in
response to meaningful
value propositions.
As a result, they will
populate your database
with uniquely detailed,
actionable information.

Important!
Opt-in is not
about
passively
agreeing to
receive
email.
It’s about actively opting-in to a

relationship and self-profiling your
preferences and aversions.
VoC Learnings
Advice from C-Level Executives
• “You think because I’m the CIO, you have to send all your marketing
communications to me. That’s not how decisions
are made here.”
• “You’re using me as an
executive mailroom and
I don’t appreciate it.”
• “It’s in my interest to
tell you who you
should communicate
with, what information
they need, when and
via what medium.”

Privacy Must be Honored

Complex Privacy Settings

The Ever-Expanding Privacy Policy
In the last five years, Facebook’s privacy policy has grown to 5,830 words today, from 1,004 in
2005. In addition, Facebook offers an in-depth Privacy FAQ page, with 45,000 words.

The Opt-In Process
1. VoC learnings drive strategies for customer engagement so they

Opt-In to a deeper level of engagement.
2. Customers profile: needs, decision making process, offer, message,

timing and media preferences. This detailed information builds your
uniquely accurate preferences database.
3. Customers are actively engaged in contributing to, and defining their

relationship with your company.

The Opt-In Process
4. Per VoC Research, Opt-In is based on Reciprocity of Value:

• Recognition by consumers that in order to receive or access
increasingly relevant information, they must share increasing
amounts of information regarding their preferences.
• If they trust the marketer and see a useful value proposition,
consumers will opt-in to sharing increasingly detailed personal
preference information in exchange for the marketer’s promise
to deliver relevant information and offers.
• As a result of these interactions, consumers are more likely to
open, engage with, and respond to, communications and offers.
5. Without this preference data, true personalization driven marketing

cannot happen. Traditional transactional data is not enough!

Keep in Mind. . . This Process Requires:
Operational precision
in managing offers
and communications
per individual
customer
requirements.
Challenging to
implement!

5 Ways to Earn Consumer Opt-In
Results from 130+ VoC research efforts conducted by ERDM indicate that consumers
have 5 criteria for determining whether to Opt-In to sharing in-depth information:
• Trust that the company will adequately safeguard their information and use it in a responsible way.
1.
• “Responsible” = consumers believe that their information will not be rented or sold to third parties.
2.
• “Honor my preferences”; expectation that their “Opt-In” self-profiled preferences will be used to drive
3. increasingly targeted communications and offers... and suppress those that are not relevant.
• The value consumers receive in exchange for providing in-depth information must be obvious and
4. compelling. If the value is not obvious, they will assume you betrayed their trust.
• Consumers must see proof that the company will be able to deliver on requirements 1 through 4,
5. not just once, but consistently over time.

Case Study
VoC-Driven Small Business
Relationship Marketing
Program

A majority of Microsoft sales
in the SMB segment come
through a channel partner
(Value Added Reseller,
Retailer, OEM).
Customers feel they have no
relationship with Microsoft.
SMB customers are mostly
transactional; gather
information, trial, purchase,
and disengage.
Previous Small Business
VoC indicated that most
customers would welcome a
relationship with Microsoft.
Hence the need for a relationship program.

As a result of the first Small Business VoC, Microsoft
developed the SB+ Relationship Program.
6 digit
membership
3.7x more
responsive
SB+ Relationship
Marketing Opt-Ins
1.3x more
revenue
20 points
more
satisfied

How to Approach the Diverse SMB Segment?
Based on the success of SB+, Microsoft wanted to scale
to midmarket companies (size: 100-150 employees) .
Key questions Program Goals

• Will the online resource appeal to • Increase customer satisfaction
midmarket IT and business scores.
decision makers? Will they opt-in?
• Increase licensing renewal rate.
• What are key enhancements that
can help deepen customer • Improve customer engagement.
engagement? • Deliver the most relevant content
• Can results continue to exceed and communications.
results of house file? • Improve marketing efficiencies.

VoC Helped Answer Key Questions
For 1-500 employees, what
type of training, support,
community and
communication can drive
deeper engagement?
How to improve the value
and usage of training.
How to improve the
support offerings to
provide greater value.
How customers define a
value-added community.
How the communications
strategy should be
improved.

VoC Learnings
Relationship Program Value Must Be Obvious and Differentiated
Make it easy Keep it focused Deliver ‘wins’

Must provide easy site Online Resource Make the initial
navigation. Center (ORC) value: interactions engaging
by offering a
Use lay terms and user One stop, convenient
‘quick training.’
friendly (non-tech) key resource for SMB
word searches. customers. Help users by providing
Clearly different from industry, business and
Provide access to technology info.
information and other resources.
business solutions Every facet of the Partner with non-
from every part of user experience Microsoft experts
Relationship Program. must prove this. for valuable content.

Learnings
Personalize the Experience Per Business Needs,

User Level, Size, Industry and Products
Focus on needs Support Satisfy Different

Needs
Develop from the Alleviate pain by using
user’s perspective, simple terms as self- Target content based on
not Microsoft’s. help key words. start-up, segment,
Highlight common business needs and user
Request user feedback
problems and provide level.
at every touch point.
quick access to Offer ways for three
Use feedback to solutions. different user types
evolve the experience,
Leverage peers for (Learners, Connectors,
provide relevant
additional support. Collaborators) to
content/
engage.
communication.

Learnings
Tie Training, Support and Community

Into a Differentiating Relationship
Training Support Community

Peer interaction must
As a key benefit, users Alleviate pain by using
be facilitated across a
should be introduced simple terms as self-
variety of demographic
to training early on. help key words.
and business areas.
Follow-up training to Highlight common
problems and Points of interaction:
encourage the next
ORC interaction. provide quick Level of knowledge.
access to solutions. Common problems.
Offer user-defined
categories for Leverage peers for Forums.
easy access. additional support. SMEs/Moderators.
Make training
easy to share.

Launched the Microsoft Business Resource Center

Asked 14 questions,
The Value of Opt-In Preferences such as:
Name
Email
FUTURE: Apply a progressive profiling strategy, reducing
Primary role in
the need to ask all questions at once. Keep improving the
company (i.e. Sales,
relevance of questions and the value exchange.
Marketing, Finance)
Microsoft software
usage/ownership
Number of employees
Opt-In Value Industry
Relevance
Profile Exchange Primary customer
business need
Customers actively engage expecting Opt-in data will help
What is the biggest
something of equal value in return. achieve greater challenge facing their
relevance, marketing organization today?
efficiency, and
increased lifetime Number of PCs
value. Number of servers

SMB Relationship Program At-a-Glance
For Customers: For Microsoft:
Personalized
Preferences
service
Customized Click/usage
Relation-
information behavior
ship desk
Ease of use Tier 1 Purchase
intent
Cross-sell
Relevance
Trigger-based opportunities
database e-marketing
Tier 2
Web: Business Resource Center
Newsletter
Tier 3
Web Resource: Microsoft Business Resource
Center Overview Phone #
Personalization
unique for
Personalized Experience cue
Tier 1 and 2
• Telephone customer service
(Tier 1 & 2 only)
• Support
 Free online chat tech Communities
recommended,
support Dynamics, Vista
• Training
I’m a volume
 Software training and license
customer
computer-based
I own/use
training is key Dynamics,
• Community Office
• Library (information)
• Dashboard Training for
Office
Articles,
tips for me.
OV, APO

Customized Communications
Customized communications
based on opt-in data
• Welcome e-mail
• Monthly personalized e-newsletter
• Ongoing e-mails

Benefits of the Reciprocity of Value
Exchange
Customer Benefits Microsoft Benefits
• Personalized service • Opt-in profile information drives
relevance in web site content
• Customized communication and communications
and information
• Ability to analyze click and usage
• Ease of use behavior
• Relevance • Improved Marketing ROI:

• Cross-sell/upsell opportunities

Results
RM
Response RM Volume
Receiving license
Open rates rates very customer
Opt-in rates performing volume revenue
greater positive from those
up to 95% in the license
than 50% customer in the VoC-
double- renewal
digits feedback driven
rate is
8 points program is
higher than 2x greater
non-RM than the
customers control

Case Study
Today’s Customers Expect
Preference-based, Personalized and
Relevant Experiences

Introduction
• Today’s discussion is about:

 The extra dimension of proactive, relevant, and
personalized engagement customers want.
 Customer’s recognition that in order to receive highly
personalized experiences, they need to provide
increasingly detailed information to drive the
personalization.
 How Norton consumers define the Personal Data
Reciprocity of Value Equation.
 Trust as a prerequisite for this level of engagement,
and how customers today define the elements of
trust.

Delivering Customer Centric Engagements
Two-way and
marketing performance and customer value
cross-channel
Integrated data,
channels and
technology
Conversational
Target customer
groups and
personalise
“Spray & Data-Driven
Pray”
Segmented
Broadcast
sophistication in capabilities Source: CACI, 2012
© 2012, No reproduction, reuse, or distribution without the explicit

written consent from Symantec 133 Step 2: Opt-In Engagement
What is the value of permission?
Over 40% of respondents said they want to be

rewarded for sharing their personal data
© 2012, No reproduction, reuse, or distribution without the explicit Source: Aimia Survey, 10/05/2011
written consent from Symantec 13
4

It’s no longer “nice to have”
• Customers expect that you
will obtain permission
before you use their
information.
• This expectation is amplified
if they are paying for the
product or service.
• We tend to think that we
have the answers and
customers naturally want to
hear what we have to say…
• Are we really listening…or
just talking?

written consent from Symantec

About Norton
• Significant number of customer touch points
• Norton protects the

• 135+ million active users
Stuff that matters to • #1 consumer online backup provider
consumers, across all • $2+ Billion in annual revenue
aspects of their
digital lives.
• Shipping on 60%+ of Windows-based consumer
PCs
• Norton provides a
range of security
solutions including
technologies for PCs
and mobile devices,
live tech support
services and online
backup.


How do you get customers to opt in?
You can’t ask a

customer “do you want
to receive more
emails?”
And, given that Norton

is a provider of pop-up
and spam prevention,
we can’t annoy, at any
cost.
Can you?
We need to listen to the customer to determine requirements.

written consent from Symantec 13
7

Reciprocity of Value
Key Takeaway
This reframes data privacy concerns!
Reciprocity seen as a valuable exchange of information which
improves the customer experience.
This information will constantly change, grow, and be enriched,
through ongoing interactions with consumers.
Source: “Voice of the Customer Marketing”

Ernan Roman

Listening powered by customer signals
Outbound Inbound
• Support (calls, web,
• E-Mail
Communications chat)
• Desktop Messaging
• eCommerce
• In Product Messaging
• Websites
• Upsells / Cross-sells • Information / Notifications

Communications
Strategies • Delight • Advisory
• Education • Transactional
• Analytics • Behavioral inferred

Customer Signals preferences
• Customer volunteered
preferences • Triggers


VoC Research
• Norton approach:
 2 Phases
 Engage in one-on-one in-depth interviews to dive into details
 Run quantitative surveys to identify and fine tune statistical significance
• Phase 1:
 In-depth qualitative interviews
across segments, (80
interviews)
• Phase 2:
 Quantitative customer surveys
(1-2K) across segments

Phase 1 VoC Research Summary
Methodology Objectives
• How different customer segments define deeper
• 80 in-depth hour-long interviews across key relationships
segments, purchase channel, and product value
(NAV vs. NIS /N360) • Expectations and requirements to drive willingness
to Opt-In
• Gain customer-driven understanding of customer
experience that will be perceived as personal and • Self-profile preferences based on expectations of
relevant increasingly relevant communications and offers.
• Will follow with quantitative survey • Customer receptiveness to proactive personalized

outreaches
Retail Online
Product value: Low Med-Hi Low Med-Hi Total
Group 1: Constantly Connected 5 5 5 5 20
Group 2: Secure and Loyal 5 5 5 5 20
Group 3: Tech DIY 3 8 2 7 20
Group 4: Hand Holders 5 5 5 5 20
Total 18 23 17 22 80

VoC Findings


A reinforcing cycle built on trust
• Trust is the foundation and basis for obtaining deeper engagement with customers.
• Trust opens customer to Reciprocity of Value: a meaningful exchange
of value.
• For pertinent value, customers are motivated to

provide opt-in and a wide range of Preferences
for receipt and suppression of information.
• These preferences enable Personalization

that delivers the targeted and relevant
communications customers requested.
• The improved Customer Experience reinforces

trust which enhances trust.
• Which will motivate them to provide additional

information, thereby engaging them in a deeper level of
Reciprocity . . . and the cycle continues.

Trust
• Research identified four
dimensions of trust that
build upon each other.
• Key areas to build trust:
 Alleviate privacy concerns by
explaining the reasons
behind data requests.
 Multiple assurances of the
privacy of their data and
Symantec’s commitment to
keeping their information
safe.
 Receiving only the
information they are
interested in, based on their
specified preferences.

Preferences
Technology level preference
Above-average
Casual user Average user Expert user
In addition to user
“standard
Product purchased
preference” Internet Norton Mobile
settings, 360
Security
AntiVirus
Utilities Security
Anti-Theft Back-up Ghost
customers had
had remarkably Security- New
Content preferences
Product Partner Virus/
E-news- Birthday
specific Tips related
topics
product
trials
offers/
discounts
offers/
discounts
letter
security
alerts
message
preferences…
Communication preferences
Desktop
Email Texts Online chat Skype Social Media
messaging
Frequency preferences
When
Daily Weekly Monthly Quarterly Annually
appropriate
© 2012, No reproduction, reuse, or distribution
without the explicit written consent from Symantec

An integral part of the broader journey
• Learnings from the VoC
are key to shifting from Customer
Signals
transactional
communications. Reciprocity of
Value
• Combined with Infrastructure
(acquiring
opt-in)
infrastructure and
customer signals (the Relevant,
triangle), we expect to Personalized
Engagements
deliver on our goals:
 Collect preferences and
permissions
 Deploy truly personalized
communications.
14
6

Parting thoughts
• The three “pillars” are
integral to delivering
customer expectations
Privacy
 Must be done together to
achieve and sustain trust.
• Must change thinking
Personalization
 From “how does this
benefit us?” to “how does
this benefit the customer?”
Preferences
© 2012, No reproduction, reuse, or distribution without the explicit 14

7

4 Actions…
• Customer insights are a privilege, not a right.

• Trust is easily lost, but hard to gain, especially when
dealing with personal information and relationships.
• Don’t ruin the hard fought gains for short-term
bookings.
• Remember that customer delight results in customer
loyalty, advocacy, and sales.
© 2012, No reproduction, reuse, or distribution without the explicit 14

8

The Art of
Listening to Your Customer
Eric V. Holtzclaw
@eholtzclaw
149
150
151
Allow customers
It would be nice to to control the message
get my newsletter
in the mail.
I would like to
receive news on I wish I could
Facebook. receive offers
through email.
152
“Just Ask”
your customer
“I love getting these “Please don’t send

daily deal emails.” me text messages.”
of consumers
say companies should let
“I would like to hear them decide how they can
about your other products.” contact them.
153
Take advantage of different
channels for different programs.
154
Only ask for
what you need.
155
Only ask for
what you need.
156
Only ask for
what you need.
157
Use it
to learn.
158
Centralize customer
data across the organization.
159
Allow your customer
to correct the conversation.
160
BONUS
Compliance
161
Preference Centers
Past & Future
162
Opt-in / Opt-out
163
Opt-down
164
Multi-Channel
165
Support Social-Media
166
Support All Customer Touchpoints
167
Take Advantage of All Communications
168
Take Advantage of All Communications
169
170
Eric V. Holtzclaw
@eholtzclaw
Questions?
171
Additional VoC Lessons
Opt-In Preference-Based
Personalization as a
Competitive Differentiator

Even among loyal The bar has been raised dramatically for
customers,
online and offline marketers:
expectations of
marketers have • Good customer service is expected and
changed due to: is a powerful competitive differentiator.
Tough economy
• Increased expectations for value at
Growth of many competitive prices.
appealing online and
offline options: • Better shipping and handling terms.
• Personalized offers and experiences based
on their individual interests:
“I welcome the targeted

“When I go to the emails, suggestions,
Amazon site, I feel like recommendations. They are
they know what I like.” working to send me only what
I told them was relevant.”

As a result,
customers and
prospects view • Personalization is viewed as a service and
personalization as benefit, not just a sales tool.
the next step in a
company’s • Online shoppers view personalization as a
requirement for their preferred shopping
commitment to
venues, rather than as simply a perk.
service excellence.
• Many BtoB decision-makers use Amazon
as their point of reference regarding
expectations for BtoB personalization.
• BtoB and BtoC marketers have to at least

match Amazon!

Meaningful Personalization
• Customers want personalization to be

more than just transaction-based.
“I expect more than just

‘we’ve looked at everything
you’ve bought over the last X
years and this is what we think
you’ll like’.
With today’s technology, I expect
much more than that!”

Safeway: Multichannel Personalization
• Personalized offers and

prices based on shopper’s
behaviors, habits and profile
information.
• “Though use of personal
shopping data might raise
privacy concerns, retailers
are counting on most people
accepting the trade-off,
Safeway employee signing up a shopper for
if it means they get a better custom offers.
price for a product they
want”.
New York Times 8/9/12

1.
2.
3.

Step 2:
Opt-In
Engagement
Step 2: Summary
Step 1:
VoC Research Opt-in is not about passively agreeing to receive email.
It’s about actively opting in to a relationship and self-
profiling your preferences and aversions.
Create Powerful Your VoC-based opt-in database should include at least,

Preference-Based the following information regarding individual’s:
Databases With • Needs
Customer’s Self- • Decision making process
Profiled • Offer
Information • Message
• Timing
• Media Preferences.
Set as your goal: Opt-In rates ranging from 80% to 95%.

Step 2:
Opt-In
Engagement
Step 2: Summary
Step 1:
VoC Research Five Ways to Win Consumer Confidence:
1. Consumers have to trust that the company will
adequately safeguard their information and use it
Create Powerful in a responsible way.
Preference-Based 2. “Responsible” means that consumers must believe
Databases With that their information will not be rented or sold to
Customer’s Self- third parties.
Profiled 3. “Honor my preferences” reflects the expectation
Information that their “Opt-In” self-profiled preferences will be
used to drive increasingly targeted communications
and offers... and suppress those that are not
relevant.

Step 2: Summary
4. The value consumers receive in exchange for
providing preference information must be obvious
and compelling.
Consumers must see an obvious improvement in
Create Powerful relevance. This expectation of relevance applies
Preference-Based both to their online and offline experiences.
Databases With
Customer’s Self- 5. Consumers must see ongoing proof that the
Profiled company will be able to deliver on requirements
1 through 4 above, not just once, but consistently
Information over time.

Workshop Agenda
• Sunday, 10/13:
Part 3; 10:30 - 11:20
 Step 3, How to Use the 5 Principles of Multichannel Marketing
 Speakers:
Douglas Stein, President, HMS National
Lunch: 11:20 - 12:50
Part 4; 12:50 - 1:50
Step 4, Increasing the Relevance and ROI of Your Online and
Social Media Marketing
 Speakers:
Bob Nanna, Marketing Manager, Threadless
181
182
Step 3: How to Use
the 5 Principles of
Multichannel Marketing
Step 2:
Opt-In
Engagement
Step 1:
VoC
Research
Step 3:
Multichannel
Marketing
Douglas Stein
President
HMS National
Douglas Stein is a respected industry leader with a reputation for creating

effective marketplace strategies and generating significant business growth.
As president of HMS, he is responsible for driving B2B/B2C marketing and sales

Douglas Stein success. He has been instrumental in positioning HMS as the warranty of choice
President for millions of homeowners, and as a valuable business partner to the most
well-respected real estate companies.
HMS National
Doug led VOC-inspired loyalty efforts that helped earn HMS the coveted Echo
Award from the DMA in 2012.
He is a compelling public speaker and has presented on customer insights and

marketing strategies at numerous conferences.
www.hmsnational.com

Online and offline Entire Customer Experience must be integrated:

are inseparable.
• Acquisition
Must encompass:
• Conversion
Message • On-boarding
• Retention
Media mix • Renewal
Organization Employee Customer Experience must be integrated:

• Performance metrics
And…the
• Compensation
Customer • Training
Experience

Online and offline If Integration is so logical…why are so few doing it well?

are inseparable. • Turf
Must encompass: • Politics
Message • Fear of change
Media mix
How can you be the agent of change?
Organization
And…the
Customer
Experience

Let’s Define “Multichannel Relevance”
1. Right message.
“Per the DMA,
93% of marketers 2. Right time.
using multiple
channels have 3. Right person.
attempted to
integrate their
4. Right media mix.
messaging.
5. Delivered per individual’s preferences.
Only 27.4% of these
said their efforts
are ‘effective’. . .”
Integrated,
DMA Report, “Rowing
multichannel
as One: Integrated
Marketing Today,” 4/11
irritation!
Without #5, all we
have achieved is. . .

Requires precision timing and synchronization of both

online and offline.
Must be accessible everywhere and any time.
Per individual’s opt-in

preferences. . .
IDM® is a registered trademark of Ernan Roman Direct Marketing.

5 Principles of Multichannel Marketing
5
4
3
2
1 1: Start with the Customer (VoC).

Per VoC Findings
Today’s shopper is multi-dimensional;

multi-channel and multi-purpose.
Many report using multiple media, often Per a recent VoC:
at the same time. A customer described
how she likes to watch
the TV shows while
browsing the website.
As she finds items to
Alert! purchase, she puts
The channel used for the purchase is often them in her shopping
not indicative of their shopping habits. cart, prints it, and…
Most use multiple media to shop, calls Customer Service
and often, to purchase. to place
the order.

“. . . Multichannel customers spend Per VoC;
two to three times more than preference based
single-channel shoppers. . . multichannel communications
Consumers who engage with the are a competitive
company across three or more differentiator.
channels spend six times more
than the average customer.” “If I got the information that
focused on the stuff
Glen Senk, CEO of Urban Outfitters I was interested in,
it would be easier
than sorting through
all their products.
It would be so much faster,
more convenient and make
my shopping easier.”

5
4
3
2: Capture feedback from your digital / social channels and
2 your sales / service reps. This will provide ongoing qualitative

and quantitative VoC guidance.

VoC Guidance from CSRs
• Based on VoC feedback • Results:

from CSR’s, Nordstrom’s  Immediate customer
upgraded their website and adoption.
inventory integration so any  8% higher sales.
item in any store (not just
 Fewer markdowns.
warehouses) is shown on
their website and shipped  Better inventory control.
to the customer’s nearest  A boost to customer loyalty.
store, with a notice to the  More add-on store sales.
customer.

1. Enter your
search criteria
2. Select your
item and
method
of delivery
3. Select your
location for
pick-up or have
it shipped!

5
4
3 3: Synchronize your multichannel mix with
precision and value.
2: Create processes for generating feedback from your social
2 media channels and your sales and service reps. This will
provide ongoing qualitative and quantitative VoC guidance.

QVC, 9/23/12

QVC Priority: Deliver Competitively Differentiating
Multichannel Customer Experiences

Multichannel / Multimedia Customers
Per QVC VoC research, today’s customers are uniquely
Multichannel.
Keep in mind:
• Be accessible when and where the customer chooses.
• The multi-platform approach must be seamless, frictionless,
and agnostic, i.e., every channel must provide a good
customer experience.
• An integrated multi-platform strategy can drive an
11X increase in sales.
QVC, 9/23/12

Precision Integration: Response Compression
Response
Traditional Compression
Phone
Response
Response
Phone
E-mail /
Mail
E-mail / Mail
Time: 1 – 2 Weeks Time: 1 – 24 Hours

Precision Sequencing and Timing
Web and digital synchronized with beginning of Publicity and continues
Print Email #1/ Outbound Email #2/

Publicity
advertising Mail #1 Calls Mail #2
1 week 1 week 1-24 Per opt-in

hours preferences
after
receipt

Multichannel
Success Factors Email:
• “Email may be the base of your communications with
Unless you obtain me, but I’m getting too much junk.”
opt-in message and
media preferences • “Make it relevant and timely!”
and aversions. . . • “And, if it’s really important, send it to me by mail.”
You’ll simply be
engaging in
multichannel
irritation!

75% of Email Names are Inactive
Per Marketing Sherpa, about 70-75% of your email list is inactive, (Email Summit).
List hygiene is not just about removing undeliverable emails,
bounces and unsubscribes.
It is also requires re-engaging inactive subscribers and the tricky
task of asking subscribers if they still want to receive your emails.
Scary…but necessary!
4 Tips:
1. Start your email relationship by inviting engagement with
a quality welcome series.
2. Test to determine the most important areas of interest.
This should drive engaging content and subject lines.
3. Segment and personalize your emails so you deliver the
greatest relevance to each individual subscriber.
4. Analyze inactive users and begin sending re-engagement emails.
• Use catchy subject lines:
“Are You Breaking Up With Us?”
“Are we still friends?”
“Are You Mad at Us?”
Clever Re-engagement Email
Subject: We have to say good-bye.
This is your last change to receive email updates.

We haven’t heard from you, and as the owner of one of our
vehicles, we don’t you to miss out on the latest from Ford Motor
Company. By clicking the link below, you’ll continue to be one of
the first to receive sneak peaks at new technologies, exclusive
offers, coupons, sweepstakes and more. If you choose not to click
the link below, this will be your last email from us.

New Email Deliverability Rules
Gmail, Yahoo, Hotmail and AOL have implemented new
algorithms for email deliverability based on “engagement”:
• If your emails are not triggering sufficient
interaction, they are likely not to be delivered.
• New algorithm calculates deliverability using a
combination of CAN-SPAM rules plus new
“engagement” factors: open rates, clicks,
unsubscribes, and complaints.
• With these new “human behaviors” factored
into the equation of deliverability, emails you
send may be considered SPAM or not delivered,
even to subscribers who signed-up to receive
your emails.
• If enough recipients click the ‘spam’ button on
your email, the providers assume that no one
else would want that email either.

New Email Deliverability Rules
5 Tips:
1. Adhere to basic list management best practices, i.e., keep your list opt-in
only, honor unsubscribe requests and remove undelivered emails from your
list. Use double opt-in to improve engagement metrics.
2. Motivate new customers to engage with you. Targeted welcome emails
are effective.
3. Combine behavioral data and RFM (Recency, Frequency, Monetary) and,
per VoC, overlay opt-in preference data.
4. Use personalization and dynamic content. Leverage the enhanced
preference data to create highly personalized communications.
These should also include customer appreciation messages, “surprise and
delight” communications, birthdays, post purchase “thank-you’s”, and
dropped cart messages.
5. Reward email actions like opens, clicks, and shares. Southwest
Airlines is experiencing success tracking subscriber’s interactions and
awarding loyalty program points.

VoC-Based Messaging
There’s still so much more to enjoy.

You’ve helped make this past year amazing, but
it’s only the beginning. We have even more
brands, products, and special events coming up
that we’re sure you’re going to love.

Keeping Your Community Engaged
You’re just a few reviews away

from your Top Contributor badge,
so don’t stop now.

Multichannel Direct Mail:
Success Factors • “Mail should be specific to my role, to what I do all
day long.”
Unless you obtain • Direct mail should be used as a highly personalized
opt-in message and and relevant communication.
media preferences
and aversions. . . • Direct mail format should reflect value and include:
personalized letter, impact addressed envelope and
You’ll simply be live stamp.
engaging in • Post card mailings are the
multichannel antithesis of this and
irritation! generate low ROI.

Direct Mail Versus Email
Finite Universe of Prospects: 50,000

Profit per unit sold: $200
Direct Mail v2 Direct Mail v1 Email

Cost per solicitation $5.00 $1.50 $0.05
Response rate (sales %) 10% 2% 0.13%
Cost per sale $50.00 $75.00 $38.46
Total # of sales 5,000 1,000 65
Profit $1,000,000 $200,000 $13,000
Can you run a business with 65 sales?

Confusing Jargon
We have good news to share with you. As a result of a

positive loss experience in 2009-2011, enclosed you will
find a refund to your DBL premium for 2009 - 2011

Executive Outreach
Even though we haven’t seen you in a while, you’re far from

forgotten. We miss you – and I would like to personally take a
moment to invite you back to Banana Republic.

Personalized Card from Online Marketer

Multichannel Customer Engagement:
16 August 2013
Hello, Senior Contributor!
Congratulations on your many reviews on

TripAdvisor! Thank you for being such an
active member of our community.
It’s my pleasure to send you this TripAdvisor

tote, an exclusive for frequent reviewers like
you. It’s just the right size to fill with souvenirs
from your travels. I hope you’ll tote it with
pride.
Yours sincerely,
Steve Kaufer
Co-founder and CEO
216
• In Step 4, How to Increase the • Field sales: Must be trained in

Power of Your Online and Digital disciplined Pre-Call Planning and
Marketing, we’ll have a detailed Relationship Selling.
discussion of the following:  Must be integrated with your
 Web other contact points for
 Digital media, including: maximum responsiveness
and cost-effectiveness.
• Twitter
• Facebook.
• Inbound calls: Highest value,
highest conversion medium.
• Outbound calls: Proactive,
service-oriented calls to opt-in
lists increases responses 500% -
700%.

5
4
4: Re-conceive Inbound as a high value customer interface.
By definition, Inbound callers are more qualified and
likely to spend.
3 3: Synchronize your multichannel mix media with


Inbound Calls Should Provide High Value
However, when inbound

customers call, what they
frequently encounter
are human robots!
Customers have become
conditioned to poor service.

High Value Inbound Calls
What does it cost you in

marketing and promotion
dollars to generate an
Inbound call?
What do your customers
experience when they
call your 800#?

Inbound as a High Value
Experience
Increased sales
Targeted
outbound call
Calls
Personalized
fulfillment
Via email, mail or fax.
Proactive, highly
trained reps

5
5: Customer Lifecycle Marketing: 1) Communications must be
deployed at appropriate points in the buying cycle, and
2) Contacts should be driven by opt-in preferences.
4
4: Re-conceive Inbound as a high value customer interface.
By definition, Inbound callers are more 1) Qualified, and
2) Likely to spend.
3 3: Synchronize your multichannel mix with


Three Key Phases of the Customer
Lifecycle
Pre-Sale
• VoC-driven integrated multichannel
contacts.
• Must gather opt-in preferences.
Sale
• Not a “close.” Instead, it’s the
beginning of proactive, value-based
relationship development.
Growth and Retention

• Requires ongoing proactive engagement, i.e. “How can we better serve you?”
• Ongoing value-added justifies price premium
• Proactive generation of repeat sales.

Are You Investing Enough in Your Customers?
Top Marketing Investment

producing
customers Top producing customers
Good
customers Good customers
Dormant
Dormant customers & customers &
Qualified prospects Qualified
prospects
Suspects Suspects
Marketing Segmentation
Case Study
How Voice of Customer Insights
Helped Change Our Culture,
the Customer Experience...and
Increased Renewals Over 50%
226
The warranty provides coverage against
mechanical failures for many major systems and
appliances, coverage that is not provided by most
homeowners’ insurance policies.
30+ year old privately
held company.
The term of the warranty is typically one year.
Market and sell home Traditionally, Home Warranties cover many
warranties through systems and appliances, including:
real estate agents.
• Air conditioning and heating systems
Use direct marketing
to renew home • Refrigerators
warranties when the • Water heaters
one year contract, • Washers/dryers
initiated during
purchase of the • Ovens/ranges
home, is approaching • Electrical systems
expiration. • And more. . .
227
HMS Customer Journey
228
3-Steps:
Goals Of the VoC

Know much more about our customer’s needs. . . and
use this to drive our marketing.
Significantly
improve renewal
rates.
Establish meaningful opt-in preference-based
relationships.
Improve the
customer
experience across Deploy our multichannel mix customer preferences.
channels.
229
VoC Research Objectives
Step 1 • Stimulate greater renewal rates
Sample
• Identify what home warranty means to
customers Customers who
Know Much renewed
• Determine how customers define the
More About value of HMS Customers who did
Our not renew
• Evaluate claim experiences; strengths
Customer’s and weaknesses Segments:
Needs. . . And • Home buyers
• Understand level of satisfaction with HMS
Use This to who purchased
• Analyze perception of marketing home warranty
Drive Our communications
Marketing • Home sellers
• Determine willingness to opt-in and who purchased
self-profile preferences to drive targeted home warranty
communications
• Filed claim/Did
not file a claim
230
Voice of Customer Research Learnings
Regardless of The customer Real estate

Customers often
who purchased experience, not agents often
calculate the
the warranty, just the amount drive the
value of the
(i.e. home seller of claims paid, customer’s
warranty if
or home buyer) significantly perception of
they consider
engagement impacts renewal the value of
renewing.
is low. behavior. renewing.
Service
enhancement Customers
Customers are
opportunities expect HMS to
receptive to
identified: be proactive
self-profiling
focus on the throughout the
their interests
end-to-end claims handling
and preferences.
customer process.
experience.
231
Reciprocity of Value
Step 2
Establish
Meaningful
COMMUNICATION
Opt-In PREFERENCES
Preference- Claims, Renewal &
Based Billing:
Relationships Email
Text
Voice Notifications
Phone - CS Rep
232
VoC-Driven Strategies
Step 3 VoC learnings helped develop more effective strategies for:
• How to engage customers throughout the customer lifecycle
including during the renewal process, e.g. telemarketing, direct
Deploy Our marketing, auto renewal.
Multichannel • Which product to offer, e.g. cross-sell or up-sell.
Mix Per Opt-In
• What additional information to offer regarding home repair and
Preferences maintenance.
Phased implementation began in 2009,

with expanded implementation in 2012.
Ongoing improvements in 2013 through
2014.
233
Implementation Per VoC Research
234
Pre-VoC, our initial touch point with customers was informational
without being engaging.
Previous fulfillment kit:

Transactional delivery of
warranty documents
235
Pre-VoC, our initial touch point with our customers was informational
without being engaging.
Truncated first page of
warranty agreement
Terms and Conditions

made up bulk of the initial
customer touch point.
236
Post-VoC, we are leveraging this early touch point to immediately engage
each customer.
Added
personalization
New tonality
focused on engaging
the customer
237
To successfully engage customers, several elements are incorporated from
VoC learnings.
Welcome
page
238
New - Implementation Per VoC Research
Per the VOC, this call has to feel “arm around the shoulder”
and consultative.
239
New - Implementation Per VoC Research
1. Leverage Virtual Hold Technology
2. Closed Loop Process
3. Customer Claims Survey
4. VoP – Voice of Partner Research

240
HMS Customer Journey
241
Pre-VoC, our renewal solicitation touch points:
• Started 90 Days prior to expiration

• Single Channel – Direct Mail 4 Touch Points
• Very little customization due to in-house
development and fulfillment
• Dated look and feel
• Copy Heavy
242
VoC Driven Multi-touch Results
Personalized
Communication
Thank You
Alert
243
Highly
Customized
Pieces
244
Post-VoC, our renewal solicitation communication:
Short Format
Bolded Text
Benefit
Explanation
Customization:
Property Info
Claim Benefit
Coverage
245
VoC driven Multi-touch Results
Added Visual
Benefit
Component
246
Oversized
Impending
Expiration
Non-renewal
Risk
247
Confirm Receipt
Address Questions
Renew Customer
248
Post Expiration
Offer
249
Customer engagement through a relationship-oriented

outbound call
Post-VoC, piloted service-
• Pre-VoC, the renewal process was oriented telemarketing with
direct mail driven. focus on certain segments and
the results were as positive
• In the VoC, customers expressed receptiveness, as the VoC projected.
desire for, a dialogue with HMS.
• The VoC drove development of Noteworthy results from
an interactive, multi-channel strategy. the calling initiative – a
20% increase – was quickly
• Cost of telemarketing is several times realized, with far greater
higher than mail, but the incremental lift in certain segments.
sales offset the expense and optimized
profitability.
250
Results
Since implementation of VoC-driven programs,
the results are impressive:
• Achieved over a 50% increase in renewal rates.
• Additionally, enhanced product offerings justified

a 20% price increase.
• HMS is now using a VoC-driven

multichannel mix and continually
improving strategies with
ongoing VoC research.
251
Multichannel Marketing Self-Check
Optimal deployment of media should be driven by VoC
learnings to ensure both relevance and effectiveness.
Key elements of the multichannel mix must be deployed per

the individual opt-in preferences of customers and prospects.
Multichannel mix must provide customers/prospects with

choices so they can communicate via their preferred mix of media.
Mix must meet requirements 1 through 3 above, per the timing

and frequency determined by individual’s opt-in preferences.
The mix must offer a completely integrated experience.

Each medium must complement and support each other, and
send coordinated messages to customers and prospects.
The media mix must be responsive. If the organization alienates

or abuses a consumer, they can expect to hear about it in a very
public forum.

1.
2.
3.

Step 2:
Opt-In Step 3: Summary Without this, we
have achieved
Engagement “Integrated,
Step 1: Customer’s definition of relevance: Multichannel
VoC Research irritation”!
• Right message.
Step 3: • Right time.
Multichannel • Right person.
Marketing
• Delivered per that individual’s media preferences.
How to Use the 5 Principles of Integrated Direct Marketing:

5 Principles of 1. Start with the customer (VoC).
2. Create processes for generating feedback from your sales
Multichannel and service reps. This will provide ongoing qualitative and
Marketing quantitative VoC guidance.
3. Synchronize media with laser precision.
4. Re-conceive inbound as a high-value customer interface.
5. Customer Lifecycle Marketing: Communications must be
deployed at appropriate points in the prospect/customer
lifecycle. Should be driven by opt-in preferences.

Step 2:
Opt-In Step 3: Summary
Engagement
Step 1: Four powerful opportunities for communication
VoC Research
during the lifecycle:
Step 3: • Prospect
Multichannel • Pre-sale
Marketing
• Sale
How to Use the • Growth and retention.
5 Principles of
Multichannel
Marketing Ask yourself: Are you spending enough on
your high-value customers?
Probably not!

Step 4:
Increasing the Relevance and ROI of Your
Online and Social Media Marketing.
256
Step 4: Increasing the Relevance
and ROI of Your Online and Social
Media Marketing
Step 4: Step 2:
Online and Opt-In
Digital Engagement
Step 1:
VoC
Research
Step 3:
Multichannel
Marketing
257 Step 4: Online & Digital
Bob Nanna
Marketing Manager
Threadless
Bob has been crazy about Threadless since he started as a temporary

warehouse worker in 2005. 8 years later, as marketing manager, Bob
channels his passion for the brand into Threadless’s social media, product
line marketing, email management, and site promotions.
Bob’s previous unconventional work experience includes touring worldwide

Bob Nanna for over 10 years as a professional musician and part-time journalist for local
Marketing Chicago publications.
Manager,
Threadless When he’s not tweeting as @threadless, you can find him as @heybobnanna
or updating his upcoming events at bobnanna.com.
bobn@skinnycorp.com
www.threadless.com

• Provide you with 7 VoC-based
Social Media Takeaways.
• Review best-in-class case studies,
including:
In this
section we
will…

Takeaway 1
Consumers Want Empowered Relationships:
• Where marketers trust the needs and wisdom of customers to drive
engagement, communications, offers and customer experiences
across all points and channels.
• Consumers have shifted from being passive recipients of “push” marketing
to creating and managing information and experiences from selected,
value-added resources.
• High quality VoC -driven engagement goes straight to the bottom line.
• Has been proven to achieve consistent 25% to 50% increases in response
and revenue.
• Question:
How much more can you do to engage and empower your customers and
prospects?

Customer Driven Experience
2009 1st Anniversary Gift

263
Check it out. I designed this at NIKEiD.com.

Get a total customization experience at NIKEiD.com. You
can customize colors and materials for a totally unique take
on kicks, T-shirts and more. Start customizing now at
www.nikeid.com.
264
2013 Baby Shower Gift
265
Here at Gilt, we spend a lot of time brainstorming ways to improve your shopping experiences,
and I’m very excited to announce some new changes. After listening carefully to all your
feedback, we’ve come up with a new and improved shipping-and-returns policy that I think you’re
going to love. Here’s an overview of the changes we’ve made:

Takeaway 2
Per VoC, you must think multichannel/multimedia:
"I take pride in being a smart shopper.

I might see something on TV, or hear an ad on the radio.
I’ll text some of my fellow FrugalMom$ friends to check it out.
Then I’ll browse the website. If the item interests me,
I’ll put it in my cart.
When I’m finished browsing, I’ll print out the cart.
Then, I call Customer Service to have them answer
my questions, and place the order."

QVC, 9/23/12

Multichannel Means More Opportunities to
Shop
Per ERDM VoC, widespread usage of mobile devices increased multichannel
shopping, which resulted in increased spending.
Constant connection and… portability of mobile devices means More opportunities means more more
more opportunities to shop. time spent shopping and… money spent
“It’s just so much easier to shop now.

I shop on the train, while waiting at appointments, and out on the deck.
While I buy things we need, I have the time and the ability to find
things I just didn’t want to waste time trying to find before. It’s so easy now – just type
in what I’m looking for, check out who has it, and decide which one to click [to buy.]”

More Multichannel Shopping Translates to More Informed
Purchases
Per VoC, greater access via mobile devices translates to more informed purchase
decisions. Shopping with mobile devices enables them to comparison shop and take
the time necessary to make well-informed decisions.
These factors serve to empower the consumer.
“If I am in the store and see something I want, I will just

Google it, and I use the shopping section – Google Shopping.
And then it will come up with different prices,
and I can see where I can get it the cheapest. Usually, it’s online.
So anywhere I am where I can buy something, I usually do
compare prices, using my phone.”
“I think shopping on my
mobile allows me to make
more informed purchases and
get better deals!”

Takeaways for you per Adobe study and
ERDM VoC:
• Engage customers and prospects to define their media, message and channel
preferences. Tablets and smartphones are distinct interaction channels.
• Create experiences which are unique to each of those preferences
and channels:
 Smartphone usage often occurs

as part of a retail experience, so
plan messaging and in-store
promotions accordingly.
 Tablet-optimized web sites
should be created which are
different from traditional sites
for smartphones or desktop
computers.
These media are not used in isolation…they are a part of the
customer’s ever changing and multi-dimensional, multichannel mix!
Takeaway 3
Per VoC, consumers want a three-dimensional web experience:
• Websites must now provide a three-dimensional experience that engages
the customer and abandons the current one-dimensional, corporate,
“me”-oriented web experience.
• Per VoC research, the three dimensions of experience, in order of
importance:
 Provide access to peers, for the
most trusted information.
 Provide access to relevant subject
matter experts.
 Provide easier and faster access to
the corporation.

Web:
“Per Forrester…only 3% of sites earned a passing score in terms of the user
experience.
3 Reasons:
1. Content and functionality…which are not…based on deep customer
research. “It’s incredibly important to understand your target users…and
how you can help them on your site.”
2. Menu names aren’t clear and people don’t know where to go.
3. Text legibility and clearly detailed privacy statements. Recommend using
10 to 12 point dark Sans Seraph font against a light background.
Per findings by Bronto Software: Poor site usability…among 100 online retail
brands results in an average 70 percent cart abandonment rate.
1 to 1 Media, 5/28/12

Customers and prospects are consistently
disappointed by their web experiences.
Reasons for dissatisfaction include:
• The expectation of the company “brand experience” is missing from the web
experience, thus creating an uncomfortable disconnect.
• Frustration that they cannot “connect” with the company on the website due
to the impersonal/ transactional/generic experience.
• Lack of meaningful personalization which further fuels alienation.
• Expectation that customer-oriented web experiences will allow for opt-in
profiling to indicate their preferences.
• Lack of usage of their opt-in preferences to drive targeted, relevant follow-up
email communications and offers.

Customers and prospects are consistently
disappointed by their web experiences (cont’d).
• Easy access to content, with few clicks.
• Make it easy to share content, i.e. Facebook, LinkedIn, and
Twitter.
• Make it easy to engage via mobile.
• Feature blogs and communities.
• Make it a visual experience.
“Make your site a

destination I want
Make your
to return to!”
site fun!

Takeaway 4
Social Media Raises the Stakes for Customer Service.
American Express ® Global Customer

Service Barometer, 5/2/12

American Express ® Global Customer
Service Barometer, 5/2/12

Takeaway 5
Per IBM’s 2010
VoC-Based Social Media Overview:
CEO Study:
• Success is achieved as the result of a series of
“57% of companies personal conversations, and points of engagement
with consumers and prospects.
that have invested in
social business tools • Social media tools represent not a means for
have outperformed direct selling but a means for creating or improving
their peers, citing relationships with consumers.
collaboration as • Selling becomes a by-product of the quality and
having a direct mutual benefit of those relationships.
impact on their
organizations
growth.”

Unless we learn how to engage per customer’s
Bad news: preferences and expectations. . .
The addition of social and digital media
Social/digital
media are not
will only result in multimedia irritation.
“the answer”. . .
Email:
They will not Granted. . . we will have 2.8 million are sent every
make it all better! new and improved second and 100 trillion
emails have been sent over
multimedia irritation. . . the course of the year!
But the end result

will still be the same
consumer alienation.

• Facebook is …“one of the most
powerful branding mechanisms in
the world, but it’s not an
advertising mechanism.”
Martin Sorrell, Chief Executive,
WPP
• “…rather than simply providing traditional

ads…Facebook encourages companies to
engage with users by telling them stories.
• …Home Depot, Wells Fargo and Merck
have a presence on Facebook…they are
focused on fashioning content to build
brand loyalty, rather than creating
targeted advertising.”
New York Times

5/16/12

Ford’s Fiesta Movement Scorecard in
2010:
• 4.5 million YouTube views.
• 3.5 million Twitter impressions.
• 80,000 “hand raisers” who asked to be kept up to date on the U.S. launch of
the Fiesta, 97% of whom did not own a Ford vehicle.
• 1,000 people who reserved a Fiesta online
(informally, with no purchase commitment).
• 37% Fiesta brand awareness among
Generation Y members, roughly equal to
the awareness levels of the traditionally
promoted Fusion and Flex models.

Ford Fiesta 2012: Doug the Sock Puppet
• Goal: 10,000 total Facebook fans
• Actual: 35,650 Facebook fans in four weeks
• Goal: 2.5 million YouTube video views
• Actual: 1.7 million views, or 67% of the goal
with several months to go.
More Stats:
• Facebook post views: 725,000
• Facebook “likes” and comments: 7,019
• Facebook demographics: 70% of status updates reach Ford’s target
18 – 24 year-old audience
• Digital display ads 25% of ad budget for 2012, (USA Today, 5/17/12).
“Plus, 41% of all the online conversation about the 2012 Focus is related to Doug
and the campaign. We definitely see this as a successful measure of driving
incremental conversation about Focus by using Doug” - Scott Kelly
Mashable.com
5/18/11
Doug the Sock Puppet
284
Takeaway 6
Learn from Coke’s 3 Facebook Best Practices
Coca-Cola edged out Hyundai as the most popular brand on

Facebook, according to a study by Covario.
Coke has more than 72 million Facebook fans; each comment the
beverage producer posts on its page generates over 200
comments!
What is Coke doing right on Facebook? At least three things.

Coke’s Best Practice #1
Coke’s default setting is “Talk To Us.” User-generated
content gets posted automatically (as opposed to being
filtered or edited first). On Coke’s page, inappropriate
messaging is removed, but only after it has been posted.
Coke’s relationship with its fans is solid enough
to make this work.

Coke’s Best Practice #2 Coke’s Best Practice #3
Coke Wants You To Upload Coke’s Driving Facebook
Images To Its Photo Album Principle is “Collaborate”
This makes perfect sense, given the The page itself was founded by two
iconic, collectible status of the brand. Coke fans. . . and later embraced by
Many users want to show off branded the company! It is truly a shared
Coke images they have acquired (or undertaking with Coke fans who
created), and many others want to spend time on Facebook, not
show off as they consume the something imposed upon them
product! Coke supports both groups. from the outside.

Facebook Takeaways
Conduct a comprehensive review of your branding and social media strategies.
Develop strategies which enable you to answer “yes” to the following questions.
Do you trust your brand enough to:
• Trust your customers?
• Give Facebook users an
open forum?
• Encourage and facilitate
collaboration with your
customers?

Takeaway 7
Per VoC Most Preference Centers Aren’t Useful:
“I’m a prospect who
• BtoB and BtoC Preference Center Insights: inquired. They are only
 Misleading; focused on the company’s asking what and when
sales goals, not on learning the customer’s I will buy. God forbid
preferences.
they should ask about
 “They’re not focused on my preferences. my needs!”
The focus is on the stuff they want to sell
my company.”
“I would pay attention to a company that asks

about my needs, and only sent me relevant and
personalized information. They would stand out
from the pack.”

Takeaway 7
Per VoC Most Preference Centers Aren’t Useful, (cont’d):
• Doesn’t satisfy the need for a single place which is:

 Customer focused
 Provides comprehensive choices and options
 Easy to find
 Easy to use
 Easy to change, “so I can easily revise it as my needs change”.
 Allows for Progressive Profiling.

BOB NANNA
COMMUNITY
• Voting
COMMUNITY
• Voting
• Meetups (Family Reunions)
COMMUNITY
• Voting
• Meetups (Family Reunions)
• Participation
“So, what do you guys think of this idea?”
BE A PART
DISASTER?
SOCIAL
• Twitter
SOCIAL
• Twitter
• Facebook
SOCIAL
• Twitter
• Facebook
• Tumblr
SOCIAL
• Twitter
• Facebook
• Tumblr
• Instagram
BE AUTHENTIC
ARTISTS
•$
ARTISTS
•$
• Info on every tee
ARTISTS
•$
• Process / Inspirations
Process slide
ARTISTS
•$
• Process / Inspirations
• MADE
CAUSES
AND
PARTNERSHIPS
BE SUPPORTIVE!
2005 STATS
• 180 printed designs
• $90,000 awarded to artists
• 500 submissions per week
• 100,000 members
• 0 Twitter followers, 0 Facebook likes
(wink wink)
2013 STATS
• 5,200 printed designs
• $8,774,411 awarded to artists
• 2,100+ submissions per week
• 2,596,311 members
• 2,194,126 Twitter followers
• 759,042 Facebook likes
*BE A PART *BE AUTHENTIC
*BE SUPPORTIVE
THANKS!
Bob Nanna
bobn@threadless.com
@heybobnanna
1.
2.
3.

Step 4:
Online and
Social
Step 2:
Opt-In
Step 4: Summary
Engagement
Step 1:
VoC Research
Unless we engage per customer’s preferences, the
addition of social and digital media will only result in
Step 3: multimedia irritation.
Multichannel
Marketing 7 Digital Media Takeaways:
1. Consumers want empowered relationships where
Increasing the marketers trust the needs and wisdom of customers to
drive: engagement, communications, offers, and
Relevance and customer experience across all points and channels
ROI of Your 2. Must think multichannel/multimedia and integrate online
Online and Social and offline. This applies to mobile as well.
Media Marketing “. . . Multichannel customers spend two to three times
more than single-channel shoppers. Consumers who
engage with the company across three or more
channels spend six times more than the average
customer.”

Step 4:
Online and
Social
Step 2:
Opt-In
Step 4: Summary
Engagement
Step 1:
VoC Research
3. Consumers want a three-dimensional website
Step 3:
Multichannel
experience. In order of importance:
Marketing • Provide access to peers, for the most trusted info.
• Provide access to relevant subject matter experts.
Increasing the • Provide easier and faster access to the corporation.
Relevance and
ROI of Your 4. Social Media has raised the stakes for Customer Service:
Online and Social • Social Media Users are willing to spend more with
Media Marketing companies they believe deliver great service.
• They are far more vocal about all service experiences.

Step 4:
Online and
Social
Step 2:
Opt-In
Step 4: Summary
Engagement
Step 1:
VoC Research
5. Social media tools represent not a means for direct

Step 3:
Multichannel selling but a means for creating or improving
Marketing relationships with consumers. Selling becomes a
by-product of the quality and mutual benefit of those
Increasing the relationships.
Relevance and 6. Facebook – Learn from Coke’s 3 Best Practices:

ROI of Your • Coke’s default setting is “Talk To Us.” User-generated
Online and Social content is posted automatically (as opposed to being
filtered/edited).
Media Marketing • Coke wants you to upload images to its photo album.
• Coke’s driving Facebook principle is “Collaborate.”

Step 4:
Online and
Social
Step 2:
Opt-In
Step 4: Summary
Engagement
Step 1:
VoC Research
7. Most Preference Centers Aren’t Useful:
Step 3:
Multichannel
• Doesn’t satisfy the need for a single place which is:
Marketing  Customer focused.
 Provides comprehensive choices/options
Increasing the  Easy to find
Relevance and  Easy to use

 Easy to change, “so I can easily revise it as my
ROI of Your
needs change”
Online and Social
Media Marketing

Additional Information for You
• Presentation PowerPoint
• 14 Step Checklist For Breakthrough
• 7 Marketing Mistakes You Need to
Avoid
• Case Studies
• Blog: Ernan’s Insights On Marketing
Best Practices
To receive this information, email:
ernan@erdm.com
353
354
Presenters
Kris Gates
Vice President, Customer Experience Marketing, MassMutual Retirement Services
Eric V. Holtzclaw
Vice President & General Manager, PossibleNOW, Preference Management Consulting
ehotzclaw@possiblenow.com
Douglas Stein
President, HMS National
Bob Nanna
Marketing Manager, Threadless
bobn@skinnycorp.com
355
Course Leader
Ernan Roman
President
Ernan Roman Direct
Marketing
ernan@erdm.com
356

DMA 2013 Transforming Your Customer Experience

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

DMA 2013 Transforming Your Customer Experience

Caricato da

Copyright:

Formati disponibili

Transforming Your

October 12 &1 13, 2013

Recognized as a marketing thought leader. Inducted into the Marketing Hall of

ERDM specializes in conducting Voice of Customer research to identify

Kris Gates joined MassMutual in 2006 and is currently VP of Marketing, focused

1. Given increasing attrition rates due to competition, new focus

2. Critical element of retention strategies: provide much higher levels of

3. Learn how to engage customers to opt-in and provide detailed

4. Achieve frictionless, high-value, customer engagement across the

Business Insider 5/17/12

New York Times 7/30/12

“...failing to deliver a high-quality customer experience can

Treat customers the way we want to be treated…

…and generate double-digit increases in response and revenue

Help you achieve the success of innovators such as:

Opt-in rates up to 95%

Open rates greater than 50%

Response rates performing in the double-digits

Volume license revenue from those in the VoC-

“When HP uses the Voice of Customer

-- Gary Dawson, Hewlett-Packard

HMS National, Inc. Life Line Screening

CEM is a process Companies who

It’s about actively opting-in to a

28 Step 1: VoC Research

By early fall 2011, Mr. Johnson was tackling Penney’s pricing,

29 Step 1: VoC Research

30 Step 1: VoC Research

For 42% of CMOs:

“CMOs and their peers understand that the real challenge is

-- Luca Paderni, VP and Principal Analyst, Forrester.

Heidrick & Struggles and Forrester Research, 1/23/12

31 Step 1: VoC Research

32 Step 1: VoC Research

33 Step 1: VoC Research

1. Improve the customer experience across every point of

2. Applies to all elements of the media mix and all departments

3. High quality experiences must be maintained throughout the

*Definition is based on 10,000 + hours of VoC research conducted by

34 Step 1: VoC Research

4. Customer experiences must be driven by my individual

5. Preferences must drive high quality personalization of

*Definition is based on 10,000 + hours of VoC research conducted by

36 Step 1: VoC Research

37 Step 1: VoC Research

38 Step 1: VoC Research

39 Step 1: VoC Research

“The fastest way

40 Step 1: VoC Research

41 Step 1: VoC Research

42 Step 1: VoC Research

43 Step 1: VoC Research

Recognition by consumers that to receive or access increasingly

If they trust the brand and receive a useful value proposition,

This reframes data privacy concerns!

44 Step 1: VoC Research

As a result of these preference-based interactions, consumers are

This customer-driven information exchange results in uniquely

45 Step 1: VoC Research

46 Step 1: VoC Research

47 Step 1: VoC Research

Per VoC findings, customers and prospects view personalization as

Personalization is viewed as a service and benefit, not just a sales

They also look to personalized follow-up emails as value-added