Webinar How To Use Forrester’s Touchpoint-Impact Framework To Drive Purchase Gina Sverdlov, Analyst Cory Munchbach, Analyst April 29, 2013. Call in at 10:55 a.m. Eastern time @gsverdlov @corinnejames

Agenda Understanding consumer behavior in the customer life cycle Introducing Forrester’s touchpoint- impact framework Using the framework: how companies are successfully driving conversion Key takeaways and recommendations

Agenda Understanding consumer behavior in the customer life cycle Introducing Forrester’s touchpoint- impact framework Using the framework: how companies are successfully driving conversion Key takeaways and recommendations

Image source: Wikimedia Commons (http://upload.wikimedia.org/)

Marketing today isn’t linear Consumer journeys have fragmented. We are in the age of the customer. The brand experience is more important than ever.

Source: January 22, 2013, “Embed The Customer Life Cycle Across Marketing” Forrester report

Customers’ relationship with a brand as they continue to discover new needs, explore their options, make purchases, and engage with the product or service experience Source: January 22, 2013, “Embed The Customer Life Cycle Across Marketing” Forrester report

The customer life cycle should ground marketing strategy The customer is at the center of marketing, forcing a new approach to the business. Marketing goes beyond traditional activities and considers the whole brand experience. Loyalty and retention efforts rise to long- deserved prominence.

Discover phase Trigger: comfort, connection, variety, and uniqueness PEOPLE IDENTIFY PRODUCTS AND SERVICES TO MEET THEIR FUNDAMENTAL NEEDS Trigger: comfort, connection, variety, and uniqueness Method: active versus passive discovery Key question: “Does my brand positioning convey how the brand meets needs?” Key action: Align product and marketing strategy to capture and convey the need met.

Traditional methods are most common in the “Discover” phase

Explore phase Trigger: review of options available to meet needs CUSTOMERS EXPLORE BRANDS — YOURS AND THE COMPETITION’S Trigger: review of options available to meet needs Method: online and offline information channels Key question: “Do you know what stops along your customer’s path-to-purchase are key conversation events?” Key action: Prioritize marketing collateral according to those influential interactions.

Buy phase Trigger: expressed intent to complete purchase CUSTOMERS SEEK TO COMPLETE A PURCHASE VIA NUMEROUS CHANNELS Trigger: expressed intent to complete purchase Method: most convenient channel available Key question: “Do you provide a seamless purchase capability from the channels used in the explore phase?” Key action: Unify sales channel groups to ensure a consistent experience and collect multichannel data.

In the Buy phase, the traditional store continues to close the sale Source: August 2012 “The Role Of Digital In The Path To Purchase”

Engage phase POST-PURCHASE ENGAGEMENT TAKES PLACE WITH CUSTOMERS TO BUILD LOYALTY AND REMAIN TOP OF MIND FOR FUTURE DISCOVERY Trigger: effort to connect with company post- purchase for feedback and support Method: customer service channels, community forums, and review sites Key question: “Do you support and learn from channels that customers use to interact with your brand?” Key action: Capture customer service data, solicit reviews, and identify new needs.

The top reason for consumer-brand engagement is to get deals… Source: September 2012 “Brand Engagement The Consumer Way”

…but consumers also engage to find out about product and service offerings

How do marketers link consumer behavior in the explore phase with outcomes in the buy phase?

Agenda Understanding consumer behavior in the customer life cycle Introducing Forrester’s touchpoint- impact framework Using the framework: how companies are successfully driving conversion Key takeaways and recommendations

Consumers use many resources to research the brands and products they buy.

Most consumers make informed purchase decisions 57% of consumers research a brand and/or product thoroughly before making a purchase 64% of consumers like to shop around before making a purchase. 50% of consumers like to browse and research products or services online, but prefer to purchase them offline Base: US online adults Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle (Explore Phase) Survey, Q4 2012 (US)

Marketers must support customers wherever they are in their journey REACH DEPTH ENGAGEMENT Source: June 29, 2012, “Power Your Brand Ecosystem With Social Media” Forrester report

Different channels offer various benefits Reach Depth Engagement TV Radio Print Banners Search Word of mouth Your website Your store Social profiles Mobile apps Email SMS Explore Buy Discover Engage

Two key questions for marketers 1. Which channels drive consumers’ purchase decisions? 2. Which channels have the strongest impact on the price they pay?

What do consumers say drives their purchase decision? Top three sources 1. 2. 3. 1. 2. 3. Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

Two key questions for marketers 1. Which channels drive consumers’ purchase decisions? 2. Which channels have the strongest impact on the price they pay?

Introducing the touchpoint-impact framework Weak impact on price premium, high market penetration Strong impact on price premium, high market penetration Weak impact on price premium, low market penetration Strong impact on price premium, low market penetration Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

T-I framework for consumer electronics Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

T-I framework for grocery Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

T-I framework for clothing Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

Use the T-I framework for your category, and optimize channel efficiency Source: April 9, 2013, “Asses The Impact Of Touchpoints Along The Consumer Path-To-Purchase” Forrester report

Agenda Understanding consumer behavior in the customer life cycle Introducing Forrester’s touchpoint- impact framework Using the framework: how companies are successfully driving conversion Key takeaways and recommendations

RadioShack drives conversion with mobile search Search and store have a strong impact on spend for consumer electronics. The CE retailer analyzed traffic to its mobile site from search that led to a store visit. 85% of those who went into the store made a purchase.

Safeway’s Just For U program integrates shopping touchpoints For grocery, the store, retailer communication, social media, direct mail, and manufacturer communication positively affect spend. Safeway created Just For U as a loyalty program and then expanded it into a multichannel, highly personalized experience.

Under Armour targets women with its ‘What’s Beautiful’ campaign In the clothing category, social media, TV, and retailer websites lift spend. To grow its women’s business, UA created the “What’s Beautiful” campaign — a combination of community and social marketing and more traditional outbound messaging. Between March and October 2012, female perception of the brand reached the highest levels in four years.

Agenda Understanding consumer behavior in the customer life cycle Introducing Forrester’s touchpoint- impact framework Using the framework: how companies are successfully driving conversion Key takeaways and recommendations

Key takeaways Consumers have extremely high expectations when it comes to their experience interacting with brands across touchpoints and devices. Make sure that your customers have the resources they need to make informed purchase decisions at each touchpoint. Consumers want to get close to the information source. Reliance on mobile will only continue to grow. The T-I framework will help you map out your consumer’s unique research path.

Recommendations Review budget allocations against your consumers’ T-I results to ensure you’re investing in the most valuable interaction points.

Recommendations (cont.) Prepare for the next wave of web interaction with more robust features and opportunities to engage. Image source: Sharpie (http://www.sharpie.com/)

Recommendations (cont.) Redesign your mobile and tablet experiences to compete in an era of mobile mind shift. Source: April 19, 2013, “Marketing Strategy For The Mobile Mind Shift” Forrester report

Questions? Image source: DukeGroups Hosting Program (http://dukegroups.duke.edu/)

Gina Sverdlov +1 617.613.6445 gsverdlov@forrester.com Twitter: @gsverdlov Cory Munchbach +1 617.613.6534 cmunchbach@forrester.com Twitter: @corinnejames