Monetizing Data From the Digital Customer Journey
Consumer insights from a DMP can be integrated with other analytics, planning tools, and processes to develop a bottom-up view into consumer buying trends and market-basket analyses. Companies that have already begun to deploy these new functions and technologies are seeing many benefits, including marketing return on investment (ROI) improvements of between 20 and 40 percent, doubling of email marketing effectiveness, and double-digit marketing spend improvements.
When companies consider embarking on new digital initiatives to keep up with customer expectations, they need to address five categories of questions:
- Digital touch points. Are we capturing content along every touch point of the customer journey? Do we have a strong social presence? Does our website offer a personalized shopping experience?
- In-store touch points. Is the store integrated with m-commerce and e-commerce? Is the shopping experience frictionless? Are we effective at exchanges and returns?
- Customer care. Should we move interactions from transactional to conversational? How have we integrated CRM in stores and online? How can we use chatbots to better serve our customers?
- Data and analytics. Can we use artificial intelligence to predict customer needs? Can we use customer data for marketing and personalized experiences?
- Tools and technology. Will our customers find value in the new technology? Have we considered the depth and complexity of our technology infrastructure? Do we build our technology infrastructure in-house or outsource it to a third party to manage it?
Every customer touchpoint as an opportunity to strengthen the brand relationship and meet customer expectations. The more accurately and consistently a company delivers relevant goods and services, the more likely the customer will trust the brand and have the confidence to return for additional purchases and, perhaps more importantly, to share personal information.
Innovation Is Not Standing Still
Futurists see a digital world where the pantry, closet, and car are all aware and make purchases on the consumer’s behalf. This vision is fast becoming a reality. Taking the consumer out of the equation by letting devices do the shopping is already happening with the Amazon Echo and Google Home. In addition, the in-store experience is evolving from transactional to experiential, and expectations for a high degree of personalization are becoming the norm.
As the consumer experience evolves and more connected consumer-facing devices emerge, consumer data will grow in depth and breadth. This growth offers a significant opportunity for businesses willing to invest in the technologies and processes required to capture, store, and monetize the data. Giving business users easy access to consolidated customer data and transforming it into practical insights will be vital for creating compelling personalized experiences, improving the customer experience, and optimizing marketing.
Isaac Krakovsky is a partner within A.T. Kearney’s Consumer Products and Retail Practice. Isaac works with his clients to deliver large technology transformations, digital and technology strategy initiatives, and due diligence and post-merger integration projects. His expertise includes retail business processes, leveraging technology to drive performance improvement, project and change management. He is based out of A.T. Kearney’s New York office.