acxiom - forrester emea marketing forum 11-18-09

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Tough Times Don’t Last. Tough Competitors Do. Tim Suther SVP, Multichannel Marketing Services [email protected] 001-630-944-0416 www.acxiom.com http://www.linkedin.com/in/timsuther http://twitter.com/timsuther http://www.slideshare.net/TimSuther

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Tough Times Don’t Last. Tough Competitors Do. 

Tim SutherSVP, Multichannel Marketing [email protected]

http://www.linkedin.com/in/timsutherhttp://twitter.com/timsutherhttp://www.slideshare.net/TimSuther

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Living next to the train tracks

$112 billion of advertising is wasted each year in the US alone

$4 trillion excess brand valuation

22% of Americans feel advertising is credible…compared to 45% for talk shows

42% of consumer media consumption is online

7% of disposable income is now saved – was 0%

3

Change May Be Necessary

4

Four steps to higher performing marketing & advertising

5

1.  Data is the new black

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1.  Data is the new black

30% of customers deliver the majority of profits

50% Add nothing

20% Cost companies money

SAS

The Differentiated Value of Customers

7

Product propensities• Propensities across the conversion

funnel• Next best product to sell• Likelihood to recommend

Channel Preferences• Shopping pathway• Preferred buying channel• Preferred research channel• Preferred service channel

Interests & attitudes• Purchase intent by category• Recreational interests• Social Causes

Geodemographics• Age• Occupation• Gender• Location• Ethnicity• Family / size of household• Life stage / life event

Media Preferences• Media consumption• Explicit preferences• Implicit preferences• Context preferences• Contact/cadence strategy

Relationship Profile• Customer segment history• Product ownership history• Current & lifetime value• Share of wallet• Marketing budget by customer

Interaction History• Service history• Promotion history• Response history• Across channels

Brand Advocacy• Net Promoter Score• Degree of social influence• Brand metrics at customer level

Monetary Indicators• Income indicator• Wealth indicator• Discretionary spending• Real property indicators

1.  Data is the new blackIt’s not about you. It’s about them.

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2. Create a 360̊ view

• Explicit & inferred preferences

• Wants & needs

• Motivations & attitudes

• Social influence circle

• Cross-channel behaviorhttp://www.youtube.com/watch?v=9hq5jZrFTbE

Remember every interaction and learn

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2. Create a 360̊ viewLift to Search

15%18%

24%

TV TV + Print TV + Online Display

Email Lift to Brand

12%

37%

7%

Brand Awareness Campaign Awareness Favorability

Display Lift to Conversions

65%

54%49%

46%

Week 1 Week 2 Week 3 Week 4

The interrelated and overlapping effects of media

Email Lift to Offline Purchase

42%

11%

Purchase within 12 mos Purchase 4+ times

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Awareness

Shopping & Consideration

Purchase

Up/Cross-sell

2. Create a 360̊ viewCombine who, when, and where…and you’ll know why.

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3.  The confluence of insight & media

• With most media, you never know who you’re gonna get.

• Knowing who determines:– How much to invest…if anything– What to say…without guessing

• The typical marketing problem:– Over-invest in low value

relationships– Under-invest in high value

relationships

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3.  The confluence of insight & media

Cadillac

AllstateHershey

American Express

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

A look at “who” at world class brands

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0

50

100

150

200

250

300

Shopped at Banana Republic

0

50

100

150

200

250

300

Ordered from BestBuy.com

0

50

100

150

200

250

300

350

Ordered Flowers online

0

50

100

150

200

250

300

350

Shopped at Ann Taylor

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

…and their shopping behavior3.  The confluence of insight & media

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MSN96 MM UV’s

AOL70 MM UV’s

eBay56 MM UV’s

Yahoo148 MM UV’s

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments

UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

Acxiom, comScore

Profile of traffic is much different at major online sites3.  The confluence of insight & media

15

0

50

100

150

200

250

300

0

50

100

150

200

250

300

0

50

100

150

200

250

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UV

Inde

xU

V In

dex

UV

Inde

xU

V In

dex

PersonicX Consumer Segments PersonicX Consumer Segments

PersonicX Consumer Segments PersonicX Consumer Segments0

50

100

150

200

250

300

ABC

NBC

FOX

CBS

…and at major networks3.  The confluence of insight & media

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80% of online advertising fails 

to reach its intended audience

3.  The confluence of insight & mediaTraditional media buy = FAIL on a massive scale

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Concentrate ad spend to drive 3-5x value improvement3.  The confluence of insight & media

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3.  The confluence of insight & mediaConcentrating ad spend requires trusted intermediaries

Portals

Adv CT

Acxiom Firewall

Acxiom Firewall

Adv CustomerDatabase

Online Print Social

Social

Cable Gaming

Cable Mobile

AppsMobile

Print Gaming Apps

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“… too many shortcomings to be seriously considered as a means of communication. The device is inherently of no

value to us.“

Western Union memo on potential for the telephone, 1876.

4.  It’s about accountability & execution

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"We don't like their sound, and guitar music is on the way out.“

Decca Recording Co. rejecting the Beatles, 1962.

4.  It’s about accountability & execution

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4.  It’s about accountability & execution

1. Identify customer value

2. Invest proportionally

3. Engage accordingly

4. Measure customer value impact

So, now what?

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The Four Steps…summarized

1. Data is the new black

2. Create a 360̊ view

3. Confluence of insight & media

4. Accountability & execution

These are the lessons of direct marketingOptimize customer valueat every interaction in the buying cycle

Hidden in plain sight

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Live examples

4x “orders per thousand”– Connecting print & digital

3x applications; 5x online revenue; same head count– Connecting call center & digital

2x online bookings– Connecting outbound & website

7.5x website spend– Connecting mobile & email

17x response– Connecting TV & offline

$200M revenue / $4.5MOpEx savings – Connecting call center & digital

$100M/yr EBIT impact– Multichannel connection

9-figure/yr revenue impact– Multichannel connection

Optimizing customer value at every interaction in the buying cycle

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“How & Why” “The Benefit”

1) Use Relevance-X Display to concentrate online ad spend and then follow with Relevance-X TV.

2) Use Relevance-X Social to recognize socially active customers & prospects and implement and track your direct social media marketing initiatives

3) Use Impact-X Mobile integrated with Impact-X Email for likely halo effect

4) Identify high-volume drivers of calls proactively deliver relevant content to address needs that would have solved the reason for those calls.

5) Impact-X allows you to follow the digital footprints to recalibrate your outbound marketing initiatives

6) Email a branded transcript back to site visitors. Include buttons to “buy” or to “subscribe” to other services.

7) Identify opportunities to improve organic visibility, potentially reduce paid search.

8) Build / implement predictive models to screen out low value leads provided. Consider a test with Acxiom CoReg services and / or e-list rental.

9) Target and test content with Impact-X Site. Implement Relevance-X analytics tags to measure conversion funnel progress by lifestage segment.

10) Relevance-X Display Retargeting : 53% of shopping carts abandon. Remarket based on specific site behavior / lifestage.

1) 3-5X revenue / ad dollar at other clients Existing customers respond 17X to prospects to digital TV ads

2) Match against 500M socially active individuals (~60-70% of any email list)

3) Avg. mobile purchaser has higher income & spends 2X over Web-only.

4) $2M / year cost displacement & $200M / yr influenced revenue at another client.

5) 2X website conversions achieved at another client.

6) This is the highest performing email application at another client.

7) 72% of Google clicks are organic. A proper audit enables more free traffic

8) The bottom three deciles can likely be eliminated without impacting conversions.

9) Personalized site experiences drive 4–15X ROI.

10) Remarketing generates $4–10 revenue per ad dollar.

1) Reduce wasted ad impressions, concentrate spend on highest value consumers

2) Recognize & connect with social media influencers

3) Engage customers and prospects via mobile lifecycle messaging

4) Examine call center patterns, use email to pre-empt expensive personal support

5) Connect Web analytics with outbound messaging

6) When chat available on site, offer to send a branded transcript of the chat.

7) Perform an organic search audit

8) Implement lead scoring when receiving third party leads

9) Improve the site experience

10) Retarget site visitors that do not convert

“The Idea”

10 Easy Money Ideas

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What could have been

Portable Music

owned

but couldn’t become

On-Demand Info

owned

but couldn’t become

Movie Inventory

owned

but couldn’t become

It’s not enough…A great customer baseA great productA great strategyA great team

Darwin always wins.

Will you?

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The global interactive marketing services company

Thank You

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www.twitter.com/acxiom

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www.youtube.com/user/AcxiomCorporation

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