Epson’s Journey Towards Data-Driven Customer Centricity

Epson’s Journey Towards Data-Driven Customer Centricity

Chris Nickel, Epson AmericaGraham Gunst, Acxiom

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State of the Industry

THINGS HAVE CHANGED BEFORE OUR EYES

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The Traditional Buying Model Is Dead

1898 – 2005ish

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Opinions Run High on the New Model

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Regardless…Marketing’s Role Must Evolve

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Broadcast Direct Mail Store Internet Call Center

Become Aware

Consider

Transact

Service

More than 75% of consumers today use more than one channel to make a purchase decisionSource: Unica

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StoreCall Center

DirectMailMobile

Device

Email

Website

WebAds

SearchEngine

CHANNELS AND CUSTOMERS ACT AND FEEL DISJOINTED

Brand Disharmony

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Measurement Cross-Channel Exposure

Omni-Channel Sales

Test / Control Intensive

Cross-Channel

DataPurchase History

DemographicsInterest & Intent

Propensity

Targeting Individual-Level

Customers Demand Precise Ads Individualized to them

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More Often Than Not the Data Isn’t Centralized

But Not at EpsonAbiliTec® ID: d232ad8saePerson: Max BernsteinPortrait: 20 (Millennial)Personicx®: Collegiate Crowd Propensity: MobileProduct: Web ID: 923746

AbiliTec ID: d694cd2csbPerson: Angela MartinsPortrait: 37 (Gen-X)Personicx: Surf’in Sophisticates Propensity: DisplayProduct: Web ID: 438636

AbiliTec ID: d496cf3aefPerson: Allison WilliamsPortrait: 42Personicx: Click-to-BuyPropensity: DisplayProduct: Web ID: 14115

AbiliTec ID: d334dk6becPerson: Joel MadisonPortrait: 42Personicx: Big Country, Big StorePropensity: Direct MailProduct: Web ID: 748613

AbiliTec ID: d272eq3abfPerson: Becky ZugPortrait: 51Personicx: City SearchersPropensity: SocialProduct: Web ID: 10835

AbiliTec ID: d945cf3ynmPerson: Adam LiebermanPortrait: 42Personicx: Real-time RuralsPropensity: PhoneProduct: Promo Code: LUV

AbiliTec ID: d782cb2cbiPerson: Benjamin BittmanPortrait: 33Personicx: eCom FamiliesPropensity: SearchProduct: Campaign ID: 231

AbiliTec ID: d678de2mxaPerson: Joan SweeneyPortrait: 42Personicx: Non-Tech CountryPropensity: StoreProduct: Web ID: 826475

AbiliTec ID: d561ac8byuPerson: Joyce CommerfordPortrait: 78Personicx: No-surf SeniorsPropensity: PhoneProduct: Web ID: 63268

AbiliTec ID: d678de2mxaPerson: Alyssa NortonPortrait: 42Personicx: Funding the FamilyPropensity: StoreProduct: Web ID: 846883

PUT THE CUSTOMER AT THE CENTER OF ALL DECISIONS10

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Epson’s CDW Enables a Single Customer View

What is the Customer Data Warehouse (CDW)?• A state of the art Customer Database that

provides an enhanced, singular view into Epson customers

– Golden Record

Why did we need a CDW?• Replacing an unstable legacy system• Decentralized customer view hinders

strategic marketing approach• Linking of data “Islands” in an effort to

get a full view of a customer• Additional insight / analytics on areas /

customers (i.e., Pro Imaging)

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The Goal: “One Epson”

A single view of the customer.A consistent customer experience across channels.

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Project Overview

• Database design architecture focused on flexibility and scalability

• Enhanced matching for better customer aggregation and analytics

• Normalized data to increase flexibility and ease of application of data to Epson’s business needs

• Significantly reduced the complexity of SQL inquires • Data marts will allow for rapidly gained insights• Leverages the expertise within Epson and Acxiom while

reducing need for Acxiom technical support resources• Deep discounts on demographic and lifestyle data appends

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Step One: Define Epson’s ‘Right’ Customer and Prospect

Epson Before: 15 Different Silos of Data across the Organization

• Many views of a customer• Could not act on data• Low response rates and

duplicate mailings• Weeks to pull together data

needed for a campaign• Impossible to measure

results across channels• Unstable legacy ePiphany

system

CustomerSupport

Product Reviews

Canada

Leads

ProductRegistrations

Warranty

Partners

Contact Mgmt.

ESP

Estore(Epson)

Support Downloads

Usage Data

Ad Hoc

Rebates

Online Behavior

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Data Complexity

SIMPLIFYING COMPLEX, DISPARATE DATA SOURCES THROUGH AGGREGATION

The Journey to “One Epson” Begins with the CDW

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DISCOVERHow will the customer

become aware of a product?

AdvertisingEmail Marketing

Search EngineIndustry PublicationsP.R. / Word of Mouth

ENTICE / ENLIGHTENWhat will help the customer

best understand what the product has to offer?

What will make the customer want to learn more?

Marketing / WebDemos / Tutorials

Product InformationPersonalized Workspace

ACTIONWhat do we ultimately want

the customer to do?

Register as Epson CustomerCommunity Participation

Purchase Product Increase Product Usage

RELATIONSHIP & RETENTION

What will help maintain an ongoing dialog between the

customer and Epson?What levels of service will the

customer consistently feel comfortable with?

Get Expert AdviceSupport

Receive Newsletters Loyalty Programs

Research

Find Product

Preview Product

PurchaseSet Up Product

Use Product

Get Support

Give Feedback

CUSTOMER TOUCH POINTS

Solid Customer Data – Key Benefits

Get to Know your Customer• Their Behaviors• Their Likes• When they like it• How often to want it• What “triggers” work• Keeps them coming back

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Epso

n St

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Customer Touch Points

Research / Shopping Buying Using

ProductGetting

HelpCustomer Activities

Marcom Product Mgt.eBusinessSales ServiceEpson

Department

Customer Experience

CRM – Key BenefitsConsistent end customer experience support brand position

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Data Elements

MORE CUSTOMER INSIGHTS THROUGH DATA ENHANCEMENT

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Step Two (A): Determine Best Message and/or Offer to

Best Audience

AbiliTec ID: d232ad8saePerson: Max BernsteinPortrait: 20 (Millennial)Personicx: Collegiate Crowd Propensity: MobileProduct: Web ID: 923746

AbiliTec ID: d694cd2csbPerson: Angela MartinsPortrait: 37 (Gen-X)Personicx: Surf’in Sophisticates Propensity: DisplayProduct: Web ID: 438636

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Step Two (B): Determine Who Not to Target

AbiliTec ID: d561ac8byuPerson: Joyce CommerfordPortrait: 78Personicx: No-surf SeniorsPropensity: PhoneProduct: Web ID: 63268

AbiliTec ID: d272eq3abfPerson: Becky ZugPortrait: 51Personicx: City SearchersPropensity: SocialProduct: Web ID: 10835

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Marketing – Email

• Data is used to:– Analyze customers

• Buying behaviors• Needs• Interests

– Automate / trigger emails

Browse - Printer

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Step Three: Initiate Lead Generation and Repeat

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Marketing – AdvertisingData can be mined for: Geo targeting | Behavior targeting | Lifestyle targeting

Higher Ed

Prepress – Proofing

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Step Four: Measure and Optimize

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ResultsData Consolidation• In just 90 days, the company eliminated duplicates and reduced the size of its database by

60%

Faster Time to Market• Marketing teams can sort and segment the database instantly – so campaigns go out

weeks sooner• Marketing reduced the time to prepare queries for campaigns from days or weeks to less

than an hour

Higher Response Rates• More relevant offers and communications drive up response rates• With targeting, Epson increased email CTO in one vertical by 100% and RPE by 800%

Reduced Campaign Costs• Significantly cut the cost of its marketing and eliminated double mailings to customers

Revenue Up• Across all campaigns, revenue per email is well above plan, exceeding more than 62% year

over year

ResultsIncreased Team Productivity • The company’s database specialist doubled her productivity

Better Customer Experience• Fewer mailings• No duplicate mailings• More relevant mailings• Communicating different with consumer vs. business customers

Testing• Continually testing creative, messaging, segmentation, etc.

Analyzing• Studying the results of each campaign, each test, each tweak

Tweaking• Across all campaigns, revenue per email is well above plan, exceeding more than 62%

year over year

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Obstacles

• Legacy system• Cost concerns• Resource concerns• Expertise concerns• Offsite data warehousing

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Lessons Learned

• Make sure Exec Team is on board– Get an executive sponsor– Shop the idea around– Get budget approval

• Partner with someone who can mesh well with your in-house team and other third-party providers

• Allocate appropriate time for– Discovery – this was KEY in an effective – Build a common vision– SYNC all teams, IS, Marketing, third-party providers

• Designed for scalability and flexibility• Allocate time and some budget for continued tweaking

– Will find “stuff” you want done to improve even more – I promise you!

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