This document discusses the journey of retailers like Kohl's to deliver omnichannel experiences to customers. It highlights the challenges of measuring performance across online and offline channels as consumer behavior changes. Retailers must align internal teams, improve measurement and analytics capabilities, and effectively manage campaigns at the speed required in retail to master the omnichannel experience. Kohl's approach involves setting aligned priorities across teams, soliciting feedback, and willingness to change processes rapidly as the consumer landscape evolves.
5. The digital of everything is
driving this retail journey
Executive Summary
The evolution and
revolution required to
master this journey is
evergreen and relentless
Mastery will be built on
data, measurement,
platforms and
technology…strategic
infrastructure to drive
strategic management and
engagement across
channels, screens and
platforms
7. Performics Journey
1998
Performics
launches network
to drive online
sales for catalogers
2001
Performics adds paid
search as distribution
channel
2003
Performics adds
organic search as
distribution
channel
2009
Performics adds social &
display as distribution
channels
2011
Analytics practice evolves to
address cross channel needs
(search to display and social)
Biddable Media Scale
& Efficiency
Technology
& Platform
Integration
Data-Driven
Content &
Optimization
2015
Attribution
Media Mix
DMP
Performics Omni-Channel Evolution
2012 - 13
Mobile reaches critical mass:
strategy, optimization and
measurement focus on cross
channel and online – offline
dimensions
2005
Performics initiates
analytics build out
focused on clicksteam
PROJECT
* Extra Resources Involved
* Digital Personas 1 3 4 1 0%
* Performance Content & Site Audit 1 1.5 2 1 0%
* Media Channel Audit 1 1.5 2 1 0%
* Consumer Digital Journey (CDJ) 4 3 7 1 0%
* Tech Stack Recommendation 1 1 2 1 0%
* Advanced KPI Development 7 1 8 1 0%
* Attribution - Recommendation 9 2 10 1 0%
* Opportunity Assessment 11 1 12 1 0%
* Partner Governance Strategy 11 1 12 1 0%
* B.I. Strategy 11 1 12 1 0%
Elevation Roadmap
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8. How Do We Avoid
Data Paralysis?
How Do We Create Fully
Connected Experiences?
Questions Our Clients Are Asking
How Do We Better Understand
Consumers?
9. NON-BUYERS BUYERS
acquisition of retention of
enjoy
aware
buy
unaware consider
Ultimately, How Do We Win in the Decision Point Battleground?
11. More Touch-points, Channels & Devices than Ever Before . . .
Stimulus
Awareness
TV, OOH,
Display
Zero
Moment of
Truth
(ZMOT)
Decision
before Store
Search,
Social, CSE
First Moment
of Truth
(FMOT)
In-Store
Product
Placement,
Packaging,
Signage
Source: Google/Shopper Sciences, Zero Moment of Truth Macro Study (N=5,003)
12. 72% said
physical stores
are important in
shopping
Compared with
67% who rated
the Internet
similarly
73% people
research online, then
buy in-store
PwC, Total Retail 2014 Survey
Physical & Virtual Shopping have Merged . . .
13. With Mobile at the Center . . .
Source: Google/IPSOS (May 2014)
15. Marketers Agree: Omnichannel is Key
• As consumers bounce from
device to device, brands are
trying to figure out how to track
them
• 67% of marketers state that
integrating all marketing
activities across channels is a
main goal
Econsultancy Cross-Channel Marketing Report 2014
16. But this Doesn’t Mean Marketers are Delivering It
Econsultancy Cross-Channel Marketing Report 2014
17. Major barriers to implementing
an omni-channel approach include:
Lack of appropriate
tools/tech
Available media options
not optimized
Lack of addressable
data sources
Substantive Obstacles To Be
Solved For
20. Focusing on the data that matters
Searches for store
increase by 33%
Average online
sale $45
Find her where
she’s active
Fall campaign ads drive 9
million impressions
Women aged
19-29 value
price over
brand
1,209 active SKUs on display
Recent searches
Coupon website
Leather jacket customer review
Top fall trends for 2014
21. Data that uncovers consumer intent
The largest marketing variable. It shapes queries, dictates
paths-to-purchase & mediates meaningful inter-actions with
brands regardless of channel, media or content type.
22. Our Work To Uncover Intent
The process of identifying
intent & applying that
insight toward improving
brand engagement to
drive measureable
performance
23. • Primary research
• Brandwatch
• SocialTools
• Benchtools
• eMarketer
• Forrester Research
Initial Intent
Hypothesis
Planning & Insights
Refined Intent
Hypothesis
Analytics +
Planning & Insights
Testing, Learning,
Scaling
Analytics
PlanAlytics
Outputs
Sourcesof
Data
• Glance
• Google Analytics
• CRM Data
• YouTube Analytics
• Bluekai
• Axiom
• Client Brief
• Draft KPIs
• Tech & Data Audit
• Content Audit
• Digital Maturity Plan
• CX Loop
• Audience Segmentation
• Learning Agenda
• Organizing Idea
• Brand Experience Map
• Performance Strategy, Activation & Optimization
Process
24. Digital Maturity Mapping: Four Strategic, Data Infused Areas
Business Intelligence
Fully Attributed Media
Audience-centric Advertising
Predictive Analytics
Deep integration with CRM and DMP systems
creates hyper-relevant customer experiences
Maximize return & scale through performance
budget allocation based on optimal spending
scenarios
Aligning with seasonality, new arrivals &
promotional events maximizes investment
Unified reporting provides omni-channel single
point of view of customers
25. Digital Maturity Mapping: Elevational Roadmap
Fully Attributed Assets
Business Intelligence
Multi-Channel
Reporting
Attribution & Budget
Planning
Flighting Strategy Based on
Attribution Findings &
Forecasts
CRM Enabled Search
Multi-Touch Attribution
Audience-centric Media
Predictive Analytics
Mobile Search
Geo-Specific &
On-Site User
Experience
GDN
Call Metrics Tracking
New Customer
Attribution
Site Design and
Conversion
Optimization
Integrate SEM +
SEO Reporting
Local PLA
Extension
YouTube
TrueView
Shared Media Plans
Report
Automation
Channel Specific
Regression Models
Dynamic Media &
Content Delivery
Customer Decision
Engines
Basics Competitive Standard Market Leading
Personalized
Experiences at Scale
All Channel Valuation
Media Mix
Driven
Activation
26. Business Intelligence
Automated omni-
channel reporting
provides
+50% reduction in
reports generation
Predictive Analytics
Predicating demand
based on seasonality
drives
+15% margin, -8%
spend in paid search
Fully Attributed
Media
Cross-channel budget
allocation finds that
Search + display
together drive 80%
more conversions
Audience-centric
Advertising
Using CRM to create
hyper-relevant
experiences wins
2X conversion
increase
Digital Maturity Mapping in Action
Tech
Retail
Tech
Tech
27. • Mobile drove significant traffic to stores
• 3.1X lift in-store visits over control audience (unexposed
group)
• 2.3X lift of the exposed audience vs. the general
population (consumers who may shop at retailer)
Planning for a Digitally-Bridged Store Future
We tracked store visitations as a
control vs. exposed context to prove
out a campaign’s true ROICapture device surrounding store
More and more shoppers doing both
29. Allow for in-person pickups
Centers in close customer proximity
Amazon: Digital Gets Physical
In Q1 2015, opened a pickup and
drop-off location on the campus of
Purdue University
Students could order everything from
textbooks to mac and cheese to pickup
31. 1999
Kohls.com
founded
2012
Launch of first
mobile apps
2012
Launch in-store
WiFi
2013
Re-platform
of Kohls.com
2014
Launch Ship
from Store
2014
Launch
BOPUS test
2014
New mobile
experiences – t.com
& mobile apps
2015
Full chain roll
out of BOPUS
2015
Launch multi-touch
attribution
Kohl’s Omni-Channel Evolution
Omni-
channel
planning
32. Omni-Channel
Measurement
Consumers, devices and
the changing media
landscape have added
complexity
Internal Alignment
Building consensus
and proving what we
think to be true
Merchandising
Marketing
Marketing’s success
and overall efforts
Omnichannel
Management
Combining
measurement,
alignment, and
execution to become
great
Today, Our Key Challenges Are . . .
33. Challenge #1: Measurement is More Complicated than Ever
Channel (both marketing &
shopping) performance is
measured separately, causing
gaps in visibility and limiting
optimization
The changing technology landscape makes ongoing
scrutiny and internal education necessary to stay ahead
Media is managed by diverse
partners without a completely neutral
source to measure success and
develop strategy
MEASUREMENT GAPS
A cross-channel
organization
requires more
resources and a
different type of
experience that
may not be
available
MEDIA SILOS LIMITED
RESOURCES
RAPID TECH ADVANCEMENT
34. Marketers Agree: Marketing Analytics are Contributing Less
• Contribution from marketing
analytics has stayed
relatively flat over the last 3
years
• This year, CMOs say analytics
are actually helping them
less now than they were in
2012
• Technology and data should
provide ways for us to solve
this
35. More Mobile, More Problems
Cross-Device Location
Accuracy
Offline & Online
Attribution
Mobile
Targeting Privacy
36. Mobile Is Still Not Integrated
Econsultancy Cross-Channel Marketing Report 2014
37. Measurement Approach A: Customer Matched Analysis
• Customers who engage with us digitally that we can track vs. similar customers that don't
Positive
Simple to execute & measure
Negative
Not a complete picture; hard to make media decisions. Limited by
what we can actually track.
Summary
Helps us directionally understand what digital is doing for our offline
business
38. Measurement Approach B: Market Test v. Control
• Increase spend in digital channels in distinct DMAs & measure vs. similar DMAs where we didn’t
increase spend
Positive
Helps understand how high is high, and how much impact we can truly
have on our store business
Negative
Doesn’t help us understand customer behavior or media impacts
Summary
Simple view but it satisfies the most important stakeholders (CFO,
CMO)
39. Measurement Approach C: Multi-Touch Attribution
• Accounting for ALL media touch-points & ALL customer sales (where we’re headed)
Positive
Best picture of how customers engage with media & accurately gives
credit to all channels. Enables quick decisions on specific KPIs.
Negative
Very hard to setup & track. Process has been 18 months+ in the
making. Reliant on tracking of customers
Summary
Go-forward best practice for most omni-channel brands
40. Challenge #2: Internal Alignment & Merchandising
• Market ourselves
• Showcase results
• Build trust
BUILD TRUST INTERNAL EDUCATION
• Explain to teams
• Overcome skeptics
• Prove what people
already know is true
REALLOCATE BUDGETS
• Take from print
• Explain why this is better
41. Major barriers omni-channel
success include:
Managing offers across
campaigns
Resources & coordination
across departments/brands
Adequate staff, IT, data
support
Marketers Agree: Omni-Channel is Difficult
• However, it is worthless
if we don’t put it to
good use by:
– Scaling it
– Effectively
managing at the
speed of retail
• What we’re building, and the analytics & data that we
manage will make us great
42. Importance of Omni-Channel Management
+80% of Online Purchases are multi-touch conversions
(Either same marketing channel or multiple channels)
of Online Purchases are multi-channel conversions
(Result of customer interacting with multiple channels, i.e. search/affiliate/social)
+70%
43. How Kohl’s is Approaching Omnichannel Management
Aligned Priorities
• All parties must have the same
goals:
• e.g. managing spend to
maximize sales/margin is
different than maximizing
to drive new customers
The speed at which consumers
change & interact with media
happens so fast. What took place last
month may change this month.
Willingness to Change
• Soliciting feedback from partners,
customers & associates
• They can help you understand &
get ahead of the changes
Strong Feedback
45. The digital of everything is
driving this retail journey
Executive Summary
The evolution and
revolution required to
master this journey is
evergreen and relentless
Mastery will be built on
data, measurement,
platforms and
technology…strategic
infrastructure to drive
strategic management and
engagement across
channels, screens and
platforms
47. Thank You!
Michael Kahn
Global CEO, Performics
Michael.Kahn@Performics.com
Chris Duncan
VP, Strategic Marketing, Kohl’s
Christopher.Duncan@Kohls.com
Hinweis der Redaktion
Timeline showing what we have delivered/been asked to deliver since we started in 1998.
Evolution of what PFX has been asked to solve, across channels & devices
By working with all these advertisers, there have been some clear challenge patterns that arise:
Brands often sit on too much or tool little data that is often not integrated into one place. This makes it difficult to establish FACTS and focus on the data that matters.
Lack of FACTS leads to an incomplete or inaccurate UNDERSTANDING of the customer’s intent
Without having accurate FACTS + UNDERSTANDING determined, it is impossible to put together an ACTION plan. This results in experiences that are not customized or connected.
The impact of these challenges gets magnified when taking into consideration the decision point journey that customers go through each day
It is complex and each decision point is a battleground between us and our competing brands
The key to wining each of these battles is to address these big challenges in order to match the customer’s intent at each decision point
We start by integrating your data and focusing on what matters to determine FACTS
This allows us to establish an UNDERSTANDING of the consumer’s intent
Enter: the concept of Planalytics, a proprietary framework we use at Performics. Often, planning teams and analytics teams work separately through a linear planning process, managing individual aspects of a plan. But in Planalytics, you have an integrated planning and analytics process from discovery (e.g. insight review, data collection), through insights creation, to measurement strategy, activation, measurement and optimization. Data is strategically applied to the planning process at the right time and place.
You can see the Planalytics process. First, establish your initial intent expectations/hypotheses by understanding your audience (e.g. their customer journey, intent, motivators, barriers, triggers, buying cycles, views of your brand), your competition, the media landscape and other factors (e.g. seasonality). The Planning Team creates strategic frameworks and audience and customer segments using primary qualitative and quantitative research, brand assessments and existing audience segments, like competitive social/search insights and third-party research like eMarketer and comScore, as shown on the slide.
Second, the Analytics Team takes center stage, leading the data collection and analytics processes to refine these intent expectations/hypotheses, using inputs like Google Analytics, CRM, etc. as illustrated on the slide. The team leverages expertise in data visualization, business intelligence, forecasting and attribution to uncover places where the initial expectations/hypotheses can be informed by data. Third is testing; the Analytics Team validates (or does not validate) these expectations with the right data points from the right sources. A new hypotheses may be formed based on (1) pre- and post-data analysis and (2) human understanding. You’re ready to use this data and human understanding to create a plan across paid, owned and earned media, including target audiences, content distribution and media buying strategy.
Most clients have plenty of data, but very little time and patience to sift through it looking for meaning and wisdom to make better decisions. Done right, though, data can be the most important partner to have at the planning table. It lays the foundation for ego-free strategy and participant-focused collaboration.
As a performance driven agency, your account team develops data driven strategies to identify opportunities for revenue growth and efficiency on an ongoing basis. They leverage a combination of frameworks and tools such as our S.A.T application to develop and analyze landing page tests. In addition, we have an advanced analytics team that integrates with the account team, driving incremental growth. Services include KPI development, Omni-Channel reporting & measurement, attribution, predictive modeling, data integration & personalization, and advanced testing.
Align business goals with measureable KPI's. We know you need to build your brand, drive intent, move consumers across devices, and create purchases in store and online. Analytics can help power the select of improved KPIs online, while technology solutions connect CRM & online data to improve attribution of measureable profit at a customer level. Real insights come from good data, and good data comes from a well designed technology stack. Build one that allows you to report & optimize an approach to marketing that is increasingly segmented & personalized.
Just as important – continue to monitor this technology stack to ensure data integrity, and stay on the cutting edge of the industry. Turn data into insight through intelligent reporting with GLANCE®. We combine human intelligence with automated decisioning to make marketing faster & more personalized.
Business Intelligence: BI solutions align business goals with measureable KPI's, while technology connects CRM & online data to improve attribution of profit at a customer level. This case study: creating one single report for a tech client (all channels, online and offline) gives us a better view of the customer, and also reduces the time taken to provide multiple reports on different channels, which are less valuable.
Predictive Analytics: Analytics-powered budget planning provides solutions that lead to better marketing decisions for optimal budget allocation and business results. Case study: if we can predict demand accurately for a retailer, we can better allocate spend. In this case, we predicated demand would drop based on seasonality. This allowed us to ease back (spend less) which drove better margins.
Fully-Attributed Assets: Integrated data across online/offline touch points provide a holistic view of media pathways, KPIs, reporting and ultimately planning and optimization. Case study (for tech client, Microsoft- channels play off each other in the purchase path. We found that running search and display together boosts conversions greatly, rather than running them separately in isolation. All about creating consistent experiences that aid the consumer to the eventual purchase.
Audience-centric Media: Reaching the right audience with the right message results in significant increases in engagement and conversion throughout the participant journey. Case study (for tech client Microsoft). Remarketing Lists: We created user pools. These pools included visitors that had previously clicked through to a product page, but did not initiate a trial of the product. Custom Messaging: Used copy that recognized that pool had already visited the site and were familiar with the product (e.g. “you learned about the product, try a download.” This was more relevant and led to more conversions.
MK- maybe ask Matt how he presented this, as it is complicated. This was done with the help of NinthDecimal. NinthDecimal’s Location Conversion Index measures actual increase from mobile to in-store visits to help marketers understand how their mobile ad spend influences in-store traffic. ZO has a partnership. Complicated, but simply way it works is:
NinthDecimal has a panel of users which they track from device IDs (not cookies, as cookies drop when people move between devices)
Kohl’s monitors its in-store traffic
NinthDecimal, in its panel, has an exposed group (people who have seen Kohl’s ad on mobile) and a control group (which has like demographics and behaviors as the exposed group, but not exposed to Kohl’s mobile ad)
Then measure the lift in in-store visits of control vs. exposed
Trend 1: The physical shopping experience is becoming digital.
Welcome and encourages guests to grow basket or divert them to high
Shorten perceived wait by entertaining shoppers
Demonstrations that inspire purchase
Influence impulse buys
Cross category sell/ load basket
Goal: Via Walmart Mobile App, help customers find items they need & make shopping easier & faster
Trend 2: the digital shopping experience is becoming physical.
Amazon’s Achilles heel likely to lead its downfall: shipping costs
Amazon received $3.1 billion in shipping fees & spent $6.6 billion on fulfillment in 2014
With consumers expecting products delivered to their store steps faster & cheaper than ever before, those margins are further squeezed
That is why Amazon is going physical
Amazon also has a 17-year lease on a 470,0000 square-foot building in Midtown Manhattan
Timeline showing Kohl’s journey
Measuring the effectiveness of marketing has always been a challenge
Now, even more complicated with the number of marketing channels amplified by the number of devices
The difficult part is trying to put all of that together and really understanding the relationships within channels (Intra channel) and across channels (inter channels).
We’re headed down the path to measuring a few different ways. From simplest to more advanced……
As marketers we some times need to be our own marketers. And ironically its one of the things we’re the worst at.
Now that we’ve developed these different methodologies, we must showcase the results - but more importantly show the capability to do this effectively and build trust by those that are impacted.
We’ve spent hours working with our teams explaining how we’re doing this, to get alignment. There will always be skeptics but showing the vision, and acknowledging the faults can help build confidence.
Most people know this shift is happening they just want to feel confident that what they believe to be true, actually is true.
Additionally – we are now a brand that is spending a sizable portion of our marketing on digital. That's a huge responsibility (and privilege) – an enormous one – and our marketing spend isn’t increasing. That money has to come from somewhere.
In our company its coming our of things like print (TAB and Direct Mail). This of course impacts people – people like Merchants/Buyers – who now lose space and in many ways control – over marketing their product.
This is undoubtedly the biggest challenge we have as marketers. We’re taking away something that has always worked, and always been a part of a buyers toolkit. We now owe it to them to explain what we’re doing and why its better for them.
What we’re building, and the analytics and data that we manage will make us great. Its one of the big differentiators for our company.
However, none of that is any good unless we do something with it and put it to good use.
And none of the measurement means anything unless we can scale it and effectively manage it at the speed of retail.
To effectively manage this we’re focused on a few key areas:
Aligned Priorities – this sounds so cliché, but this is so important. If all parties aren’t working towards the same priorities this can be detrimental to our business.
Managing our spend to maximize sales or margin is different than managing our spend to maximize new customers. Those will drive two very different results and take two different approaches.
Willingness to change – the speed at which consumers change and interact with media happens so fast. What took place last month may change this month.
Strong Feedback – soliciting feedback from partners, customers, and associates is so important. They can help you understand and get ahead of the changes so your organization is more prepared. One area we love to tap into is the store associate – they can be a wealth of knowledge in understanding what people are doing with technology and media. How they are interacting, how they shop differently, and how they interact socially.
To effectively manage this we’re focused on a few key areas:
Aligned Priorities – this sounds so cliché, but this is so important. If all parties aren’t working towards the same priorities this can be detrimental to our business.
Managing our spend to maximize sales or margin is different than managing our spend to maximize new customers. Those will drive two very different results and take two different approaches.
Willingness to change – the speed at which consumers change and interact with media happens so fast. What took place last month may change this month.
Strong Feedback – soliciting feedback from partners, customers, and associates is so important. They can help you understand and get ahead of the changes so your organization is more prepared. One area we love to tap into is the store associate – they can be a wealth of knowledge in understanding what people are doing with technology and media. How they are interacting, how they shop differently, and how they interact socially.