tag:econsultancy.com,2008:/topics/personalisation Latest Personalisation content from Econsultancy 2016-07-25T12:57:00+01:00 tag:econsultancy.com,2008:BlogPost/68099 2016-07-25T12:57:00+01:00 2016-07-25T12:57:00+01:00 Three ways UK retailers can utilise the post-Brexit GBP drop to target international customers Ido Ariel <p><a href="http://www.barilliance.com/brexit-sales-statistics-one-week-later/">An analysis by Barilliance</a> indicates that:</p> <p><strong>1.</strong> A higher number of consumers were browsing the retailers’ websites, with sessions increasing by 5.9%.</p> <p><strong>2.</strong> More visitors were converting and making purchases, leading to a 30% increase in sales.</p> <p><strong>3.</strong> Fewer consumers were abandoning their shopping carts prior to making a purchase; cart abandonment dropped slightly by 1.3%.</p> <p>In light of these findings, UK retailers should utilise specifically-targeted website personalisation tactics to entice international shoppers browsing UK retail sites, thereby increasing the conversion rates of non-UK leads.</p> <h3>Create a sense of urgency with prompts highlighting current low GBP rate </h3> <p>UK retailers can create prompts, such as banners, messages and pop-ups, highlighting the low GBP rate to non-UK website visitors.</p> <p>Geo-targeting consumers, using methods such as e-mail acquisition and sending out <a href="https://econsultancy.com/blog/67815-why-marketers-are-failing-to-make-the-most-of-automated-emails/">trigger e-mails</a>, can enable UK online retailers to promote post-Brexit currency shifts to their advantage, marketing ostensibly reduced prices to international customers accustomed to making transactions in other currencies.</p> <p>Furthermore, highlighting the current low GBP rate as a “limited-time opportunity,” likely to change at any given moment, UK online retailers can create a sense of urgency among non-UK website browsers, promoting conversion even amongst the most hesitant of shoppers.</p> <h3>Create targeted promotions to international website visitors to enhance personalisation</h3> <p>Creating geographically-targeted promotions to website visitors from foreign countries enhances personalisation and increases conversion.</p> <p>Retailers can create banners and popups targeted at specific countries or regions and segment these promotions by city, thus providing the consumer with a very personalised shopping experience.</p> <p>For example, a retailer could offer German customers a special coupon that is exclusively available to them - or that appears to be exclusive.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7284/germany_welcome_image-blog-flyer.jpg" alt="german promotion" width="470" height="311"></p> <p>Additionally, while the current GBP-foreign currency exchange rate may tempt website browsers to purchase from UK retail sites, the mere thought of international shipping and customs fees may be daunting enough to lead customers to abandon their carts and pay a heftier local product price.</p> <p>UK online retailers can create personalised website prompts announcing to international customers that the company provides shipping services to international addresses. Furthermore, they can offer free or reduced-cost international shipping to non-UK customers.</p> <p>Customers who do not have to worry about shipping hassles and costs are more likely to make international purchases, despite longer delivery wait times when compared to items bought locally. </p> <p>If the customer abandons the cart before completing their purchase, retailers can send geo-targeted email that highlight the free or low-cost and makes the purchase worthwhile.</p> <h3>Issue limited-time discounts or coupons to international customers</h3> <p>Presenting non-UK customers with promotional offers valid for a limited time can entice consumers to act immediately and purchase desired items at the reduced price.</p> <p>Internationally-geared limited-time discounts and coupons benefit the company’s overall revenues as well.</p> <p>UK companies feeling the post-Brexit economic pinch can vastly increase individual sales to international customers using promotional offers, despite the company’s profit-per-item rate being lower than originally projected.</p> <p>The discount offer value can be changed according to the cart value, enabling retailers to offer, for example, a 15% discount for carts up to £499 and a 20% discount for carts above £500.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7285/cart_content_over_100_pound-blog-flyer.png" alt="personalised voucher" width="300">  <img src="https://assets.econsultancy.com/images/resized/0007/7287/cart_content_over_500_pound-blog-flyer.png" alt="limited time offer" width="300"></p> <h3>In conclusion</h3> <p>UK online retailers should take advantage of the post-Brexit referendum low GBP rate and target non-UK website visitors utilising <a href="https://econsultancy.com/reports/website-personalisation-buyers-guide/">website personalisation</a> tactics.</p> <p>International customers benefit from the strengthening of foreign currencies against the GBP, while the UK retailers gain new customers, increased sales, reduced cart abandonment and a rise in overall revenues. </p> <p><strong><em>More on Brexit and ecommerce:</em></strong></p> <ul> <li> <a href="https://econsultancy.com/blog/68003-ecommerce-in-the-uk-post-brexit-positives-negatives-opportunities/">Ecommerce in the uK post-Brexit: positives, negatives &amp; opportunities</a> </li> </ul> tag:econsultancy.com,2008:BlogPost/67979 2016-06-23T14:27:54+01:00 2016-06-23T14:27:54+01:00 The five steps to an effective and repeatable sales process Shaun Haase <p dir="ltr">The most important thing to remember is to establish clearly defined goals early on to ensure that your sales team is on the same course of action as you.</p> <p dir="ltr">By developing and implementing a strategy that’s consistent across all of your customer segments and touchpoints, your sales team becomes a well-oiled machine that offers the same impeccable service and experience that is in line with your company’s bottom line.</p> <p dir="ltr">Here are five steps to help you get started:</p> <h3 dir="ltr">1. Segment your leads</h3> <p dir="ltr">Organizing your leads is the key to success. Business is done by people, and as such, there is enormous value in noting the unique attributes and preferences of each potential or existing customer.</p> <p dir="ltr">From the industry they’re in, to their communication preferences, remembering the specific needs of each lead helps establish your sales team as more personable, relatable and thoughtful.</p> <p dir="ltr">This level of <a href="https://econsultancy.com/blog/66576-why-make-it-personal-personalisation-vs-contextualisation/">personalization</a> can only be achieved by segmenting your customers, either based on their industry, opportunity or other variables.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/6380/segment.jpg" alt="" width="545" height="362"></p> <p dir="ltr">Lead segmentation can also help reduce the number of emails sent, increase the open rate for each message and help your sales team gain valuable insight into what does and doesn’t work.</p> <p dir="ltr">Sales teams will be able to cater to customers in a more personalized way, which can lead to higher conversion rates because they feel like a person is reaching out to them, not Mailchimp.</p> <h3 dir="ltr">2. Start with the full cycle in mind</h3> <p dir="ltr">Initiate the sales cycle with communication that’s warm and inviting.</p> <p dir="ltr">The first point of communication should bring awareness of your product to the customer; it’s certainly not the time for a hard sell, though the time for this will surely come.</p> <p dir="ltr">If you jump too early, you’ll be putting yourself at risk of alienating the potential customer even before they’ve had a chance to learn about what you have to offer. </p> <p dir="ltr">Use the first touchpoint to get to know the customer. When you better understand their desires and pain points, you’ll be able to craft a relevant message that speaks to their exact needs.</p> <p dir="ltr">More importantly, see this first step as part of a larger story that’s weaved together through multiple touchpoints.</p> <p dir="ltr">What is the key message you want to convey to this customer? Be brief, to the point and think carefully about a messaging tactic that will resonate with your target audience. </p> <p dir="ltr">You may also encounter customers who are familiar with your product and have already shortlisted you as a viable solution. Don’t be too pushy but do try to feel customers out.</p> <p dir="ltr">Give every customer the opportunity to take action with a simple call-to-action that empowers them to move forward if so desired. </p> <h3 dir="ltr">3. Utilize feedback to refine your pitch</h3> <p dir="ltr">Customer feedback can dramatically enhance the effectiveness of your messaging and communications.</p> <p dir="ltr">By analyzing email open and response rates from previous campaigns along with a customer sentiment audit, you’ll be able to uncover valuable insights on customer interest or lack thereof.</p> <p dir="ltr">If the messaging you’re using is not hitting your engagement targets, take the time to evaluate the issue and <a href="https://econsultancy.com/blog/64116-a-b-testing-software-recommendations-from-four-ecommerce-experts/">try A/B testing</a> different variations of your core message.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/6381/alphabet.jpg" alt="" width="750" height="472"></p> <p dir="ltr">You might even find that you need to expand your predefined customer segments to ensure that all customers are being ushered down the most effective sales path for them. </p> <p dir="ltr">Utilising existing feedback on your outreach is important when optimizing your sales strategy.</p> <p dir="ltr">You’ll quickly learn which types of messages and approaches work best on each group, and you’ll also be able to better identify which customer segments are proving to be the most valuable.</p> <p dir="ltr">By regularly monitoring and adjusting your communications, you’ll create a much more efficient and lucrative sales pipeline.</p> <h3 dir="ltr">4. Connect with your warmest leads</h3> <p dir="ltr">Once you get further along in your conversations, you’ll have a better sense of which leads are the most promising.</p> <p dir="ltr">It’s now time to connect personally with each of your warmest leads. Offer to connect over a phone call or in person.</p> <p dir="ltr">By doing so, you’ll be able to directly address any potential questions/concerns while creating a deeper connection with each lead.</p> <p dir="ltr">If you’re lucky enough to generate many warm leads and haven’t done so already, you need to be <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">utilizing a CRM</a> to track and manage these relationships.</p> <p dir="ltr">A CRM becomes increasingly important as the sales process progresses so it’s best you implement one early on.</p> <p dir="ltr">The right CRM will ensure that you are maximizing the conversion potential of your warmest leads. </p> <h3 dir="ltr">5. Don’t be afraid to use incentives</h3> <p dir="ltr">Now that you’ve established rapport with potential customers, it’s time to close the deal. Start by sending a follow-up reminder with the key benefits and solutions of your product/service.</p> <p dir="ltr">At this point, your lead should have all pertinent information about your product/service so keep it short, simple and to the point.</p> <p dir="ltr">If they’re still on the fence, try presenting them with a limited-time promotion to give them an immediate incentive to convert right then and there.</p> <p dir="ltr">Rather than dwelling on the lost revenue from the promotion, consider the potential lifetime value that customers can provide.</p> <h3>In conclusion...</h3> <p dir="ltr">Creating a scalable and repeatable sales process is a relatively straightforward endeavor but the true challenge is remembering to continually adapt your processes to the needs of your customers.</p> <p dir="ltr">When you have a clearly defined process in place, it becomes much easier to scale your sales team and keeps them focused on what they do best: close deals.</p> tag:econsultancy.com,2008:Report/4162 2016-06-21T11:05:00+01:00 2016-06-21T11:05:00+01:00 Digital Transformation in the Financial Services Sector <p>The <strong>Digital Transformation in the Financial Services Sector</strong> report looks at the challenges that companies within the sector are facing as they digitally transform themselves to compete in today’s changing market, seeking to understand best practice approaches, techniques and strategies that financial services companies are adopting to increase their chances of success.</p> <p>The report, which is an update on the 2015 research of the same name, aims to explore how marketers' responses to challenges have evolved and provide some updated recommendations on approaches to and opportunities related to digital transformation.</p> <h2>Methodology</h2> <p>We carried out a series of in-depth interviews with senior executives from across the financial services and insurance industries to understand how a range of organisations were responding to different opportunities and challenges.</p> <p>Companies interviewed included: Saga, MORETH&gt;N, RSA Insurance, LV, BlackRock, Alpha Financial Markets Consulting, Direct Line Group, The Co-operative Insurance, Barclays Bank, Lloyds Banking Group, Santander UK, Droplet, Nutmeg, AXA, JP Morgan Asset Management, Bibby Financial Services, Interactive Investor, Hargreaves Lansdown, Betterment and Scalable Capital.</p> <p>We also looked at sector-specific data from our <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends/">Digital Trends 2016</a> and <a href="https://econsultancy.com/reports/digital-trends-in-the-financial-services-and-insurance-sector-2016">Digital Trends in the Financial Services and Insurance Sector</a> reports, both published this year.<br></p> <h2>What you'll learn</h2> <ul> <li>The financial services industry is facing challenges from new business models and new players entering these markets, changing the ecosystem and making these sectors ripe for digital transformation.</li> <li>Companies in the sector see investment in digital and related skills as critical to success.</li> <li>Customer experience is a major focus for marketers.</li> <li>Having the right strategy and culture to deliver digital transformation is seen as essential.</li> <li>Data is perceived as being a huge part of the digital transformation journey.</li> </ul> <h2>You'll discover findings around:</h2> <ul> <li>How companies are looking to differentiate the customer experience and deliver value to their customers.</li> <li>Ways in which companies are putting the customer at the centre of decision-making.</li> <li>Practices companies are adopting to work in a more agile way.</li> <li>Encouraging a digital culture where digital is promoted throughout the organisation and is a part of everyone's job.</li> <li>Importance of re-platforming and moving away from legacy systems to be able to deliver on ambitions. </li> <li>Integrating data to understand customer journeys and behaviour to deliver more personalised and relevant communications.</li> </ul> <p><strong>Download a copy of the report to learn more.</strong></p> <p>A <strong>free sample</strong> is available for those who want more detail about what is in the report.</p> <h2>How we can help you</h2> <h2 style="font-weight: normal; color: #3c3c3c;"><a style="color: #2976b2; text-decoration: none;" href="https://econsultancy.com/training/digital-transformation" target="_self"><img style="font-style: italic; height: auto; float: right;" src="https://assets.econsultancy.com/images/resized/0004/8296/rgb_dt_logo-blog-third.png" alt="Digital Transformation" width="200" height="66"></a></h2> <p><a title="Digital transformation - Econsultancy" href="https://econsultancy.com/training/digital-transformation/">Digital transformation</a> is a journey that's different for every organisation. To enable delivery of your digital vision (or help you shape that vision) we’ve designed a comprehensive approach to tackle your transformation.</p> <p>Covering everything from strategic operational issues, down to specific marketing functions, we will work with you to achieve digital excellence.</p> <p>Talk to us about an initial, no-cost consultation.</p> <p>Contact our Digital Transformation Team on <a href="mailto:transformation@econsultancy.com">transformation@econsultancy.com</a> or call</p> <ul> <li>EMEA: +44 (0)20 7269 1450</li> <li>APAC: +65 6809 2088</li> <li>Americas: +1 212 971-0630</li> </ul> <p style="color: #6b6b6b;"> <iframe src="https://www.youtube.com/embed/2q_lWLm5qtg?wmode=transparent" width="560" height="315"></iframe></p> <p style="color: #6b6b6b;">video by <a href="http://www.londonvideostories.com/" target="_blank">LondonVideoStories</a></p> tag:econsultancy.com,2008:BlogPost/67889 2016-05-31T11:16:00+01:00 2016-05-31T11:16:00+01:00 How Waitrose is using personalisation to increase conversions Nikki Gilliland <p>Waitrose, a supermarket well known for its middle class ‘essentials’, is attempting to change this attitude with a new focus on <a href="https://econsultancy.com/reports/website-personalisation-buyers-guide/">digital personalisation</a>.</p> <h3>Creating incentives</h3> <p>Last year the company delved into patterns of consumer behaviour, discovering that if a customer shops online five times, their loyalty is more likely to be retained long-term.</p> <p>Using this insight, Waitrose <a href="http://www.monetate.com/customers/case-studies/#ufh-i-222542547-waitrose">worked with Monetate</a> to roll out a campaign in order to ensure customers reached the milestone.</p> <p>Sending unique codes every time a new customer placed an order, it offered an £80 discount spread over five separate shops, encouraging shoppers to return time again.</p> <p>The incentive clearly proved too good to resist - Waitrose saw a 24% increase in orders from new and early stage customers thanks to the campaign.</p> <p><em>For more on this topic, read: <a href="https://econsultancy.com/blog/66049-customer-acquisition-among-online-grocers-what-s-on-offer/">Customer acquisition among online grocers: What’s on offer?</a></em></p> <p><img src="https://assets.econsultancy.com/images/0007/5385/waitrose.jpg" alt="" width="780" height="477"></p> <h3>Greater targeting</h3> <p>Money-off motivation has not been the only tactic used by Waitrose of late.  </p> <p>Last year, data from the ‘MyWaitrose’ loyalty cards was utilised to ramp up personalisation.</p> <p>During the run up to the Christmas period, the supermarket discovered which card-holders had purchased a turkey the year before. </p> <p>By offering a 20% discount to those who were yet to make the same purchase in 2015, Waitrose was able to target shoppers in a unique and personalised way.</p> <p>The company subsequently saw a 20% uplift in conversion, proving that this type of tailored message is a big hit with regular shoppers.</p> <p><img src="https://assets.econsultancy.com/images/0007/5384/MyWaitrose.PNG" alt="" width="667" height="706"></p> <h3>Empowering consumers</h3> <p>Another example of Waitrose using personalisation to great effect is last year's 'Pick Your Own Offers' Scheme.</p> <p>Available to MyWaitrose card holders, it allowed them to choose specific items to save money on.</p> <p>In signing up to the scheme, customers were able to pick ten items with 20% off for a limited time.</p> <p>With the double incentive of both savings and greater control, this is an excellent example of how to effectively empower the consumer as well as improve general perception of the brand.</p> <p><img src="https://assets.econsultancy.com/images/0007/5383/Pick_Your_Own_Offers.PNG" alt="" width="780" height="453"></p> <p>As well as building on its online efforts, a similarly personal customer experience is set to be created in-stores.</p> <p>Having recently announced a partnership with point-of-sale specialists Ecrebo, the supermarket plans to complement its MyWaitrose scheme with tailored offers at the checkout.</p> <p>By printing out coupons based on the contents of their basket, the customer will be offered instant and personalised rewards.</p> <p>So, what next for Waitrose?</p> <p>Now enjoying a <a href="http://www.ibtimes.co.uk/aldi-lidl-continue-grow-while-big-four-supermarkets-suffer-sales-downturn-1558180">period of increased growth</a>, for the moment at least, it appears this is one supermarket that customers are more than happy to return to.</p> tag:econsultancy.com,2008:BlogPost/67891 2016-05-27T15:36:30+01:00 2016-05-27T15:36:30+01:00 Personalisation can lift push notification open rates by up to 800%: Study Patricio Robles <p><a href="https://econsultancy.com/blog/66851-five-tips-for-reducing-mobile-app-churn/">Push notifications can be an effective tool in the fight against churn</a>, and <a href="https://econsultancy.com/blog/65342-mobile-push-notifications-an-effective-but-underused-marketing-channel/">an effective marketing channel generally</a>, but cutting through the clutter can be tricky given the proliferation of apps using push notifications.</p> <p>Fortunately, <a href="https://segment.com/blog/push-notification-study-analysis/">according to</a> mobile marketing platform <a href="https://www.leanplum.com/">Leanplum</a>, marketers can increase their push notification opens dramatically by employing personalisation.</p> <p>By just how much? After analysing more than 1.5bn push notifications sent between January 2015 and March 2016 by apps large and small, <strong>the company found that certain kinds of personalisation can increase open rates by a whopping 800%.</strong></p> <p>Specifically, Leanplum looked at four different factors that seemed to impact push notification opens and suggested that:</p> <blockquote> <p>If you can personalize any combination of [these] factors...there’s a good chance you’ll see high user engagement.</p> </blockquote> <h3>Platform</h3> <p>There are significant differences between how push notifications work on iOS versus Android.</p> <p>For example, on iOS, push notifications disappear when a user unlocks the screen on her device.</p> <p>Whereas on Android, push notifications remain present until a user takes action to remove them.</p> <p>Additionally, on iOS, users must opt in to push notifications whereas on Android push notification permission is opted in to by default.</p> <p>Consequently, just 42% of iOS users opt in to push notifications.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/5399/leanplum1-blog-flyer.png" alt="" width="470" height="322"></p> <p>Likely because of these platform differences, push notifications are opened on Android at double the clip as iOS, but they aren't opened as quickly.</p> <p>In fact, on average, iOS push notifications are opened within 10 minutes compared to nearly 50 minutes on Android. Here too, differences between user experience on these two platforms likely drive different behavior among users.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/5398/leanplum2-blog-flyer.png" alt="" width="470" height="344"></p> <p>With these figures in mind, companies looking to maximise their open rates should explore segmenting by platform and seeing how specific personalisation techniques work on each platform.</p> <h3>Content</h3> <p>Not surprisingly, <strong>personalising the content of push notifications can deliver a 4x lift on open rates</strong>, boosting the 1.5% average open rate seen with generic notifications to a much more respectable 5.9%.</p> <p>There are numerous ways to add personalisation – incorporation of a customer's name, gender, an event or action that she took, etc.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/5400/leanplum3-blog-flyer.png" alt="" width="470" height="311"></p> <p>Interestingly, while personalised push notifications are much more likely to be opened, users will often wait longer to open them.</p> <p>The median time to open a generic message is over 25% higher, but as Leanplum notes, this isn't necessarily a bad thing:</p> <blockquote> <p>If a user receives a generic message at an inopportune time, they may dismiss it without a second thought. However, a user may react differently if they receive a relevant message tailored to an action they want to take, also during an inopportune time.</p> <p>That person may instead wait for a more appropriate time in their schedule to open the message.</p> </blockquote> <h3>Delivery Type</h3> <p>Timing is everything, and that's true when it comes to push notification open rates. Many companies schedule their blasts, but this fails to deliver the best results.</p> <p>Even when time zones are taken into account, cultural differences often mean that scheduled delivery doesn't maximise opens.</p> <p>Instead, according to Leanplum, companies that use machine learning algorithms "which accounts for users’ individual engagement patterns" produce far greater open rates.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/5403/leanplum4-blog-flyer.png" alt="" width="470" height="391"></p> <p>Not surprisingly, fewer companies are using such a sophisticated technique to time push notification deliveries.</p> <p>But applying an algorithm isn't the most effective approach.</p> <p>Leanplum says that distinction belongs to behavior-based delivery, which involves sending push notifications in response to specific actions users take.</p> <p>For example, a travel app might deliver a push notification when a customer books a flight, or a music app might notify a user when new music from a favorite artist becomes available.</p> <p>Less than 100m of the more than 1.5bn messages Leanplum analysed were based on behavior, but the open rate for these push notifications was 8% – <strong>a massive 800% greater than generic notifications sent immediately.</strong></p> <p>This suggests that companies taking advantage of behavior-based delivery may be able to realise an unfair advantage, at least for the time being.</p> <h3>Geography</h3> <p>Finally, Leanplum found that users in North America opened push notifications at a higher rate, and more quickly. The company notes...</p> <blockquote> <p>One theory for North America’s quick opens: the majority of North American apps send all push notifications at one time, rather than delivering them during localized times for users around the world. </p> </blockquote> <p>This is a reminder of the importance of personalisation that takes into account user locations despite the fact that notifications scheduled by time zone still underperformed compared to those scheduled by algorithm or behavior.</p> tag:econsultancy.com,2008:BlogPost/67876 2016-05-25T11:38:00+01:00 2016-05-25T11:38:00+01:00 Why Gousto’s CEO thinks recipe boxes are the future of grocery retailing Nikki Gilliland <p>A few days ago I spoke with CEO Tim Schmidt, to talk about how Gousto is intent on delivering more than just good ingredients.</p> <p><img src="https://assets.econsultancy.com/images/0007/5283/timo-schmidt-CEO-gousto.jpg" alt="" width="620" height="539"></p> <p>Here's what he had to say...</p> <h3>What would you say is Gousto’s unique selling point?</h3> <p>Customers shop by recipe, choosing whatever they like the look of, and we deliver the ingredients to anywhere in the UK.</p> <p>We offer a new menu of 12 meals to choose from each week, as well as extra goodies like wine and dessert.</p> <p>No other service gives this amount of choice or lets you have add-ons. If you don't like feta cheese... well, that's your prerogative.</p> <p>Alongside this, we think Gousto is the easiest way to cook healthy food. And our customers are busy people, so they really value that.</p> <p>Despite being certified organic and only using meat from British farms, we only charge from £3 per meal including free delivery. This also makes us the least expensive recipe box option in the UK for healthy meals. </p> <h3>Who do you see as your biggest competitor and why?</h3> <p>It's a £200bn grocery market characterised by no growth and no margin. But there are pockets of growth: the online channel is growing at 17% per year, moving £10bn in revenues from the store to online by 2020. That's a seismic shift. </p> <p>Plus, nobody want to waste two hours shopping every week when they can instead spend one-minute browsing online and get everything delivered for free, without any food waste.</p> <p>So in a way I really believe that supermarkets are our competitors. </p> <p>The supermarket model is out-dated. We think customers deserve better – and the response shows they agree. On Trustpilot we have a 9/10 score versus 3/10 for all supermarkets.</p> <p>As we continue building our proposition over the next 10 years, I expect mass adoption. This is amazing for farmers, customers and animals alike.</p> <h3>Some assume recipe boxes are for people who can’t or don’t like cooking – what is the benefit for the ‘foodie’?</h3> <p>First of all, 75% of Brits cook every single day. </p> <p>Take Rachel, a 40-year-old professional living outside of London with two young kids. She has to cook to provide a healthy meal, it's a real pain for her.</p> <p>It's not a choice, because she can't order pizza or heat up frozen food as its way too unhealthy for her kids. </p> <p>Customers like Rachel represent a huge proportion of the UK – our aim is to make their lives easier, better and more natural. </p> <p>We don't change their habits; we just help them. </p> <p>And rest assured I'm a hardcore foodie and I still love my four Gousto meals each week. It's incredibly nice to go on autopilot knowing you’re cooking something delicious every single time.</p> <h3>How do you maintain low levels of food waste in comparison to supermarkets?</h3> <p>We are the only grocery business that actually repackages food. We go to farmers, buy large quantities and repackage food ourselves. </p> <p>This, together with our centralised warehouse, guarantees our close to zero waste rate. The forecasting is 100% data driven and automated. </p> <p>In contrast, if you run 5,000 stores you get grey hair predicting demand, especially on short shelf-life produce. A leading supermarket just published that it is wasting 66% of fresh salad. That's just insane!</p> <h3>As a subscription service, how do you ensure customer retention?</h3> <p>We delight customers. That’s all there is to it. </p> <p>But seriously, we listen to feedback super carefully and obsess about our product. If you think about innovation in three stages - ideation, selection and execution - it's fair to say that we outsourced the first two to the customer.</p> <p>In other words, we listen to customers and then do whatever customers want. But not via a once-a-year focus group, in real time every hour. </p> <p>To give you some examples, just this year we launched express meals, we doubled additional products like dessert and wine, we launched iOS, Android and iPad apps and we increased recipe choice by 20%. </p> <p>Other companies in this space have done nothing at all. Our restless nature and desire to give customers what they want is how we will stay ahead.</p> <h3>What digital channels are most important for your business?</h3> <p>Television is dying and all acquisition is moving online. Our customers are extremely active on social media, and recipes are the most shared content on most platforms already. </p> <p>We of course use <a href="https://econsultancy.com/reports/email-census/">email</a> and other channels too. We have very high referral rates from happy customers and we also get lots of word of mouth which is nice.    </p> <h3>How does Gousto use personalisation to improve the customer experience?</h3> <p>I'm a geek at heart, so I really admire our data team. With PhDs in machine learning, computational chemistry and maths, we have some serious fire power when it comes to <a href="https://econsultancy.com/reports/website-personalisation-buyers-guide/">personalisation</a>.</p> <p>And we run a state-of-the-art AWS cloud micro-server infrastructure that allows us to process huge amounts of data, super-fast.  </p> <h3>What are your aims for Gousto in future?</h3> <p>As food shopping is moving online, we are building capabilities to capitalise on the rise of dietary requirements, convenience and mobile. </p> <p>In a decade we will have achieved true personalisation. That's a BIG proposition which will challenge supermarkets' existence. It just takes time. And buckets full of conviction. </p> <p><img src="https://assets.econsultancy.com/images/0007/5286/gousto-food-boxes.jpg" alt="" width="780" height="585"></p> tag:econsultancy.com,2008:BlogPost/67840 2016-05-23T14:29:29+01:00 2016-05-23T14:29:29+01:00 Highly targeted online ads don't work: Stanford researchers Patricio Robles <p>Eilene Zimmerman <a href="http://www.gsb.stanford.edu/insights/pedro-gardete-real-price-cheap-talk">explains</a>...</p> <blockquote> <p>In this case, the researchers were looking at cheap talk in retail, for example, an ad promising 'Lowest Prices in Town'.</p> <p>That can be credible when it’s used to draw in appropriate customers; in this case, those who are price sensitive.</p> </blockquote> <p>At the same time...</p> <blockquote> <p>They found that the most personalized ads were less effective because consumers worried they were being exploited.</p> <p>For example, says [Stanford Graduate School of Business professor Pedro Gardete], someone looking for a prom dress 'might get an ad from a retailer saying, "We have a wide selection of prom dresses! Click on this link!" The consumer clicks, and it turns out the retailer has dresses for all occasions but not specifically proms,' says Gardete.</p> <p>Those kinds of ads frustrate consumers and eventually become meaningless to them.</p> </blockquote> <p>Based on this, Gardete suggests that businesses might adopt a "less is more" approach in which less information is collected, information collection is more transparent, and targeting is used more sparingly. </p> <h3>Theory versus reality</h3> <p>While there's no doubt that a growing number of consumers are concerned about their privacy and how marketers are using information to track and target them, given the continued level of interest and investment in targeting tech and targeted ad offerings, does the researchers' model actually reflect reality?</p> <p>Obviously, a hypothetical retailer falsely promoting that it has a wide selection of prom dresses when it doesn't isn't likely to see good results, <strong>but this isn't how most experienced digital marketers are operating.</strong></p> <p>Instead, <a href="https://econsultancy.com/blog/64099-what-is-retargeting-and-why-do-you-need-it/">retargeting</a> (and <a href="https://econsultancy.com/blog/10194-the-roi-of-personalisation-infographic">personalisation</a>) are widely seen to drive ROI in the real world.</p> <p>As an example, AdRoll, a performance marketing platform provider, detailed <a href="https://www.adroll.com/sites/default/files/resources/pdf/case-study/AdRoll%20Case%20Study%20-%20Chubbies.pdf">in a case study</a> (PDF) how one apparel retailer used retargeting to deliver a 10.5x average ROI, 13% conversion lift and 33% lower CPA than average for other apparel retailers.</p> <p><a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences">Facebook Custom and Lookalike Audiences</a> have delivered similarly impressive results.</p> <p>Crowdfunding platform Tilt <a href="https://www.facebook.com/business/success/tilt">doubled</a> its conversion rate using Custom Audiences, and lowered its mobile cost per install by 30% using Lookalike Audiences.</p> <p>And Hospitality giant MGM <a href="https://www.facebook.com/business/success/mgm-resorts-international">realized</a> a greater than 5x return on spend using Custom Audiences.</p> <p>Needless to say, any specific marketer's mileage will vary, but on the whole, marketers are becoming more and more adept at targeting consumers online and doing so to good effect. </p> <p>That doesn't mean that marketers should rely on targeted ads exclusively, and the Stanford research is a reminder that targeted ads need to deliver what they promise to consumers.</p> <p>But targeted ads are here to stay because they work well enough of the time, even if <a href="https://econsultancy.com/blog/67830-young-users-aren-t-fans-of-targeted-social-ads-report/">many consumers say they don't like them</a>.</p> tag:econsultancy.com,2008:BlogPost/67851 2016-05-19T01:00:00+01:00 2016-05-19T01:00:00+01:00 How are Thai marketers personalising the customer experience? Jeff Rajeck <p>But how do marketers elsewhere feel about personalisation? Are they as enthusiastic as those Down Under? What steps are they taking to make personalisation happen?</p> <p>To find out the answer to these questions and more, Econsultancy invited dozens of client-side marketers in the Thai capital, Bangkok, to discuss CX at roundtable discussions in April of this year.</p> <p>The roundtables covered three CX-related topics and were moderated by subject matter experts from Econsultancy and our event sponsor IBM.</p> <p>Delegates brought experiences from many different companies and industries and they openly discussed their success stories and challenges with the group. </p> <p>Below is a summary of the main talking points taken from the Personalisation table.</p> <p><img src="https://assets.econsultancy.com/images/0007/4960/bangkok3.jpg" alt="" width="800" height="533"></p> <h3>What is personalisation?</h3> <p>Before diving in too deep, participants first wanted to get a understanding of what people meant when they talked about 'personalisation'.</p> <p>Among the suggestions: </p> <ul> <li>Speaking to a customer 'as a person'.</li> <li>Understanding a customer's perception of the brand.</li> <li>Anticipating a customer's needs.</li> <li>Segmenting messaging and adjusting communication.</li> </ul> <p>All of these are important, attendees agreed, but out of them all<strong> segmentation was probably the most important consideration.</strong></p> <h3>Why is segmentation so important to personalisation?</h3> <p>One participant pointed out that marketers can segment in many ways, such as: </p> <ul> <li>Demographics (e.g. gender, family composition).</li> <li>Lifestyle (e.g. credit card spend).</li> <li>Behaviour (looking at both what customers say they do and what they actually do).</li> <li>Purchase intent (through what they are currently researching).</li> </ul> <p> And each of these ways of segmenting provide useful 'building blocks' to help a brand deliver a personalised experience.</p> <p>That is,<strong> most marketing departments cannot deliver a personalised, 'market of one' service</strong> due to resource constraints, <strong>but they can improve their segments</strong> such that the service they offer feels personalised.</p> <p><img src="https://assets.econsultancy.com/images/0007/4961/bangkok5.jpg" alt="" width="800" height="533"></p> <h3>Reasons for personalisation</h3> <p>The table then asked the marketers why they would want to use personalisation.  </p> <p>Three reasons came up why personalisation should be in every marketer's toolbox. </p> <ul> <li>It helps creates an emotional bond between the customer and the brand. This helps to build the long-term relationship and increases engagement.</li> <li>It is a great way to offer product recommendations. Call it 'super-powered' marketing. When you get to know your customers well, you can use data to make predictive and intelligent offers to them.</li> <li>And finally, it also helps with delivering relevant content and engaging design. This, in turn, improves <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences/">the overall customer experience</a> by helping with branding as well as conversions. </li> </ul> <h3>So how do marketers use personalisation?</h3> <p>Participants then discussed ways in which they have actually used personalisation to increase conversion rates: </p> <ul> <li>Sent individual birthday emails.</li> <li>Created products for a specific segment (like special skiing insurance for ski-enthusiasts).</li> <li>Delivered special offers to the most profitable segments first.</li> <li>Intervened personally after a shopping cart abandonment - which worked much better than sending an automated email.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/4959/bangkok2.jpg" alt="" width="800" height="560"> </p> <h3>Getting started with personalisation</h3> <p>The marketers also offered some suggestions for getting started with a personalisation initiative.</p> <h4>CRM</h4> <p>Marketers who used personalisation agreed that for it to work, the CRM must be a priority for the marketing department.</p> <p>But many participants admitted that their CRM is still just an Excel spreadsheet. This makes it difficult, if not impossible to implement personalisation. </p> <p>Those who had already improved their CRM recommended a custom-made solution because:</p> <ul> <li>A custom-built CRM is more cost-efficient compared to the off-the-shelf solutions, in their experience, and, </li> <li>custom-made CRM solutions also provide more flexibility which is very useful when building custom segments.</li> </ul> <h4>Legal considerations</h4> <p>Finally, participants had a few things to say about the legal aspects of personalisation:</p> <ol> <li>Make sure you have permission to use customer data. Some data, such as financial data, cannot be used for marketing purposes in certain countries.</li> <li>Use common sense. Don't personalise using data that your customers may not know you have. This is an issue when using third-party data for your marketing.</li> <li>Don't be creepy. Personalisation works better when it is subtle, so use it sparingly to improve the experience.</li> </ol> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the client-side marketers who participated on the day and our sponsor for the event, IBM.</p> <p>We would like to extend a special thanks to the table moderator for the Personalisation table: Olga Gergenkop, ecommerce manager at CHi.</p> <p>We appreciate all of the helpful discussion points participants provided on the day and we hope to see you all at our upcoming Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/4962/bangkok4.jpg" alt="" width="800" height="533"></p> tag:econsultancy.com,2008:BlogPost/67854 2016-05-18T10:40:00+01:00 2016-05-18T10:40:00+01:00 Atom Bank: No branches, no legacy tech, fewer channels Ben Davis <h3>What does personalisation mean in banking? How do you ensure it is 'light touch' and not annoying?</h3> <p><a href="https://econsultancy.com/blog/66576-why-make-it-personal-personalisation-vs-contextualisation/">Personalisation</a> is about understanding the way in which customers want to interact with you and giving them the tools to tailor what you do to their own preferences.</p> <p>Everyone’s different, so you can’t second guess the way in which someone wants to use your services.</p> <p>In banking people generally don’t want over-familiarisation, but they do relate to a brand that connects with them and is on their side. </p> <p>Tone of voice can play an important part in terms of connecting with your customers and target audience.</p> <p>At Atom we’re taking personalisation a step further, demonstrating that we’re building a bank for our customers, not for ourselves – every one of our customers will get their own unique personalised brand when they register for our app.</p> <p>It’s their bank, not ours. This gesture in terms of personalisation is resonating highly with customers joining us.</p> <p><img src="https://assets.econsultancy.com/images/0007/4995/Screen_Shot_2016-05-17_at_10.36.53.png" alt="atom bank" width="160">  <img src="https://assets.econsultancy.com/images/0007/4994/Screen_Shot_2016-05-17_at_10.36.38.png" alt="atom bank" width="160"></p> <h3>What are the advantages and disadvantages of having no branches when it comes to customer-centricity?</h3> <p>We’re designing a truly joined up experience from the word go.</p> <p>We’re not having <a href="https://econsultancy.com/blog/67332-11-quotes-from-brands-on-multichannel-data-capture">to connect disparate channels</a> that hang off different systems and platforms, we are designing a connected experience with our app fully backed up with a 24/7 customer support proposition.</p> <p>Having a reduced number of channels makes things simpler, but it doesn’t stop you from offering a number of options to customers about how they want to connect.</p> <p>If a customer needs support, they have a number of choices and can shift from one channel to another in a joined up way.</p> <p>Not having branches does limit the number of people who’ll consider us as their bank, but we know we’re not for everyone and have a real focus on who we are for and shape our products and services around that audience.</p> <p>A significant advantage of having no branches is that we don’t have the cost associated with running a branch network. Lower costs for us means better value for our customers.</p> <h3>Your customers by nature are tech savvy. How does this affect product development?</h3> <p>Our potential customers are actually quite a diverse group – we’re targeting a mindset, not a demographic.</p> <p>We know they’ll be tech savvy, but more importantly they’re adopters of new ways of doing things, whether that’s tech or not.</p> <p>What it does mean is that they have high expectations and want to have a voice, having an active enthusiasm for all things new and different.</p> <p>From a product development perspective we’re keeping products simple, but adding value through the app experience we’re building to make sure it’s quick and easy to open an account and manage your money.</p> <p>Increasingly as we grow our customer base, we see customers working with us to feedback and help us <a href="https://econsultancy.com/blog/67500-what-is-digital-product-management">develop new products </a>and services.</p> <p>We want our customers to keep us honest and agile – having demanding customers means we have to keep one step ahead and our business model is shaped around this.</p> <p><img src="https://assets.econsultancy.com/images/0007/4996/Screen_Shot_2016-05-17_at_10.36.14.png" alt="atom bank" width="160">  <img src="https://assets.econsultancy.com/images/0007/4993/Screen_Shot_2016-05-17_at_10.35.51.png" alt="atom bank" width="160"></p> <h3>There's been a lot written about big corporate culture preventing digital transformation. Have you got any insight into this from a startup like Atom?</h3> <p>This comes back to having legacy systems that need significant amounts of investment to change and create a more agile infrastructure. In large organisations it’s not always easy to prioritise that investment.</p> <p>In terms of customer centricity, again <a href="https://econsultancy.com/blog/64771-customer-experience-issues-i-blame-legacy-systems">legacy hinders.</a></p> <p>Decisions to do the right thing for your customers often come with a price tag – existing banks have large customer bases that they’re making significant amounts of money from and a decision to implement a change for all customers then comes with a big income impact.</p> <p>That has a knock impact on profitability and shareholder value, so you can see why the big banks are slow to change.</p> <p>The beauty of a small business like Atom is we can make decisions about what we want to do and implement quickly.</p> <p>We haven't got layers of bureaucracy to cut through, or lots of people we need to convince. It’s a small team and the decisions we make are in our hands.</p> <p>We‘re focused on a low cost model so that we can share the value that creates back with both our shareholders and our customers.  </p> <h3>What's the next big thing when it comes to personalisation via mobile, at Atom and beyond?</h3> <p>Atom will be an ever evolving business and there’s plenty we’ve got up our sleeve in terms of personalisation, some of it we’re not giving away just yet!</p> <p>As we increase the sophistication of our app, we’re looking at how accounts and notifications can be much more tailored to your personal situation and preferences.</p> <p>We’ll learn from how customers are using the app and then mould the experience to their preferences and they’ll be able to set-up goals and alerts to help them manage and get closer to their money. </p> <p><em>The <a href="https://econsultancy.com/events/future-of-digital-marketing-london/">Future of Digital Marketing</a> takes place on June 7th 2016. </em></p> <p><em>In this video Econsultancy founder Ashley Friedlein summarises three kep topics we'll be covering at the event.</em></p> <p><iframe src="https://www.youtube.com/embed/nwh_g5mtnoA?wmode=transparent" width="560" height="315"></iframe></p> tag:econsultancy.com,2008:BlogPost/67820 2016-05-13T01:00:00+01:00 2016-05-13T01:00:00+01:00 How to optimise your personalisation efforts with segmentation Jeff Rajeck <p>Econsultancy recently held roundtable discussions in Jakarta, Indonesia about The Rise of Customer Experience &amp; Customer Journey, sponsored by IBM.  </p> <p>Client-side marketers brought experiences from many different companies and industries and they openly discussed their success stories and challenges with the group.</p> <p>One of the three tables discussed personalisation and arrived at an interesting way in which marketers can implement their customer experience strategy.</p> <p><img src="https://assets.econsultancy.com/images/0007/4686/1.jpg" alt="" width="850" height="567"></p> <h3>Why personalisation?</h3> <p>At the table, participants first discussed why companies were so interested in personalisation.</p> <p>They determined that one of the marketer's most important roles was to engage with customers through the whole customer lifecycle.  </p> <p>With so many communication channels available, though, it is hard for companies to grab and keep their customers' attention.</p> <p>Attendees agreed that by personalising communications, marketers were far more likely to be able to maintain a high level of engagements, so personalisation was a very useful strategy for marketers.</p> <h3>Barriers to personalisation</h3> <p>But in order to deploy a new strategy, marketers need to convince management of its value. </p> <p>One participant noted that it was particularly difficult to do this with personalisation as implementing it is resource-intensive and expensive.</p> <p>First off, personalisation requires creating a single view of the customer which means tackling the data silos in place at most organisations.</p> <p>Next, marketers had to do some channel automation so that the personalisation initiative could scale to their whole customer base.</p> <p>And finally, there is a non-trivial amount of data cleaning and testing required so that your efforts to greet your customer using their name does not fail spectacularly.</p> <p>Participants agreed that even simple email personalisation can be difficult to implement with a large customer base.</p> <p><img src="https://assets.econsultancy.com/images/0007/4687/2.jpg" alt="" width="850" height="567"></p> <h3>How to overcome barriers</h3> <p>One marketer described, in detail, their approach.</p> <p>First off, he suggested, marketers need to look at their customers in three segments which typically fall into a normal distribution, or bell-curve.  </p> <p>The horizontal access is the size of the customers typical order and the vertical is the total revenue you get from the customer.</p> <p>This allows you to segment your customers into three 'value areas' so that you can use the best strategy for that particular group.</p> <h4>Small customers: Content</h4> <p>Customers who only buy a small amount occasionally will on the left. Because their orders are small and infrequent, the revenue gained from them will also be small.</p> <p>Because of this, it is not worthwhile to spend extraordinary effort on marketing to them.</p> <p>Instead, as one participant noted, use a broad content strategy to keep them aware of the company and encourage them to buy more frequently.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4688/small-blog-flyer.png" alt="" width="470" height="252"></p> <h4>Bread-and-butter customers: Automation</h4> <p>Customers who makes significant purchases regularly will be in the middle. This is the largest group of customers and the strategy is to get them to stay where they are.</p> <p>Participants argued that offering discounts, offers, and special treatment were all useful ways to keep a company's mass market buying more.</p> <p>Another suggested that <a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">marketing automation</a> including recommendation emails based on past purchases are good strategies for this group.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4689/bread-blog-flyer.png" alt="" width="470" height="245"></p> <h4>Elite customers: Personalisation</h4> <p>Finally, on the right you have customers who have large orders, but only buy occasionally. </p> <p>Because they are not frequent buyers, the total revenue gained from them is not nearly as much as you get from bread-and-butter customers.</p> <p>When they do make purchases, though, they 'move the needle' on revenue and profit, typically.</p> <p>Participants noted that this is the group which should be the focus of personalisation initiatives.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/4690/elite-blog-flyer.png" alt="" width="470" height="255"></p> <p>Because one buyer's individual contribution makes a difference to the the top-line performance of your marketing, it is worth tackling the barriers to deliver a personal service to them.</p> <p>Initiatives can be as simple as including their name and other personal details on all communications and as extensive as offering a concierge service with a unique contact number and named representative.</p> <p>The purpose of personalisation for this group is to make the customer feel special, so extensive effort will need to be made to do so.</p> <p>The ROI of such strategies, one participant noted, must still be measured and considered, however.</p> <p><img src="https://assets.econsultancy.com/images/0007/4691/3.jpg" alt="" width="850" height="567"></p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the client-side marketers who participated on the day and our sponsor for the event, IBM.</p> <p>We would like to extend a special thanks to the table moderator for the Personalisation table: <strong>Heri Ardin, Strategy &amp; Planning Director at ADVIKA.</strong></p> <p>We appreciate all of the helpful discussion points participants provided on the day and we hope to see you all at our upcoming Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/4693/mod.jpg" alt="" width="850" height="567"></p>