If you’re an avid cyclist looking for components, clothing, or even a shiny new set of wheels, online searches will eventually take you to ChainReactionCyles.com. A business that started as a local bike shop in Northern Ireland in 1984 now runs the world’s biggest online bike store.
According to e-commerce head Mark Lilley, the site presents over 500 brands with 70K SKUs. Since they sell globally, they have to support multiple languages and present different products to different regions of the world. In short, very big and very complicated.
The challenge has been trying to get a deeper understanding of their customers, so they could provide a better online experience to shoppers and improve conversion rates. That led them to look for a “better tool set,” says Lilley, to provide real-time customization to their repeat customers, while working collaboratively with their existing Oracle e-commerce platform.
Enter Qubit, a relatively new MarTec player focused on real-time personalization. Founded in London in 2010, Graham Cooke (now CEO) and three other ex-Googlers saw an opportunity for a customer-centric fusion of marketing and commerce. After the initial launch of a survey tool, Qubit turned its sights to what it how calls “adaptive targeting,” a key feature of its recently upgraded Digital Experience Management (DXM) platform.
I was happy to see Qubit using the term DXM, an acronym I suggested three years ago in a post about SDL, a Web Content Management (WCM) promoting itself as a complete Customer Experience Management (CXM) provider. With the CXM market so diverse (and not just about tech, BTW), those focused on digital experiences would be wise to differentiate, as Qubit has done, using “DXM.”
In any case, Qubit has identified a weakness in the current crop of monolithic content-oriented vendors — including Adobe, Oracle, Sitecore, etc. — to provide a real-time personalization layer that can be easily implemented. Prominent VCs want in, including Goldman Sachs which led a $40m “C” round in February.
1:1 Marketing, Finally?
It’s been 20 years since Peppers and Rogers published their seminal book The One to One Future, where they proposed a simple and powerful idea. Instead of organizing marketing around products, why not build relationships around customers, one at a time?
Personalization was off and running, but progress has been slow due to a number of number of issues including: getting senior execs on board with the strategy, having the right systems in place, collecting the right data in a form that was usable, and dealing with customer privacy concerns. Oh, and of course, is the payoff worth the effort?
A recent CustomerThink webinar poll found that 7 out of 10 believed personalization was “very important” to delivering a great customer experience. Yet a full 50% said they were doing no personalization at all. Wow. Of a whole host of obstacles, technology-related issues was tied for No. 1.
A 2016 study with marketing execs (The path to 2020: Marketers seize the customer experience) by The Economist Intelligence Unit found that “top marketing channels are those that
lend themselves to personalising the customer experience,” such has social, web, and mobile. But marketing complexity is a big concern, due to the “accelerating pace of technology change, mobile lifestyles and an explosion of potential marketing channels.”
So it seems to me that, while improved technology is not the only answer, it’s one key element to help marketers that want to personalize digital experiences, but lack the time to get it done using existing tools. Qubit’s ability to fit into a MarTech ecosystem is key, as is its ability to quickly define segments and put them to use.
To shift gears and increase your pace towards a 1:1 marketing future, take the advice of Mark Lilley: “Ask your data the right questions, and start experimenting.” Your customers are waiting.
Disclosure: This post is part of my independent coverage of technology industry developments. No endorsement is implied for any companies mentioned in this post.