creatinggp g sustainable competitive advantage in a ... · principles and approaches are often less...

Connected CRM

Creating sustainable competitive advantage in a g p gconnected world

Connected CRM

Unending changes in technology and their effect on customer behavior aren’t merely influencing the business of marketing. They are redefining it – anew, again, and at a accelerating paceaccelerating pace.

The unrest is pervasive and finds it source within an unprecedented upheaval across the full spectrum of marketing dynamics:

• Media Fragmentation

• Connectivity

• Consumer Dialogue & Response Optionsg p p

• High Consumer Expectations of Transparency

• The Multi‐Dimensional Marketplace

• Heavily Matrixed Marketing Departments

• Desire to Put Customer at Center of the Business Strategy

© 2010 Merkle Inc. All Rights Reserved. Confidential 2

Connected CRM

For marketers, the results of these revolutionary changes to traditional methods, principles and approaches are often less than welcome.

• Competing strategies across silos

• Inconsistent, even contradictory, messaging across touch points

• Ineffective targeting• Ineffective targeting

• Difficulty in measurement, attribution, budgeting

• Marketing spend inefficiency, even waste

• Confused, even dissatisfied, consumers

• Confused, even dissatisfied, employees

• Vag e marketing spend e al ation criteria• Vague marketing spend evaluation criteria

• Poor or underperforming results


Could this new connected world offer marketer’s t it t t l t i blan opportunity to create clear, sustainable competitive advantage?


Competitive advantage grows fundamentally out of th l fi i bl t t f it bthe value a firm is able to create from its buyers

that exceeds the cost of creating it.


What creates sustainable competitive advantage for marketersmarketers

• Ability to identify, serve and retain high value customers when compared to the competition

• Ability to MICRO target, customize and personalize media and channel interaction

• Ability to measure incremental impact of each marketing activity

• Ability to adjust to changes in consumer or marketplace behavior faster than the competitionthan the competition


Connected CRM – What is it

Objective Improve marketing effectiveness and return on investment

How By actively managing the key profit drivers of customer value; awareness, engagement, commerce and experience

Based on “Complete 360º View of the Customer”

Segmentation based on Attitudes, needs, and value

Media plans at the Segment level

Programs built to Maximize customer value (profit) over time

Campaigns that are Micro targeted, customized and personalized both inbound channel and outbound media

Supported by a Fully integrated attribution and measurement platform to optimize success

Enabled by Enterprise CRM KnowledgeCenter

Outcome Sustainable competitive advantage


What Connected CRM would look likeCustomer Centricity can enhance performance in other areas…

Generate demand by developing private label brands based on desired value proposition for targeted growing

Customer Driven Private

Label Cross-

Enhance forecasting and pricing

Generates traffic by targeting customers across categories

segments

Category Marketing

Merchandising

Offer OptimizationSupply Chain

Cross-

Audience to offer strategy, not vice versa

Improve Inventory management

CrossChannel

Marketing

Store Operations

Local assortment optimization would reduce cost of inventory of slow moving

Drive traffic from online to offline and vice versa

products and lowers the risk of out of inventory

8

The Challenge – Complexity of Connected CRM

How do we possibly inform all interactions and centralize decision

How do we grow and sustain share of wallet of customers while

Value Proposition

PromotionPrice

TV

making at every channel?

minimizing our costs?PromotionPrice

TV

Radio

Print

Mail

E il

Care

Store

ract

ions

Med

ia

PhoneEmail

Banner Ads

Other Web

Inte

rM

Partner

How can we increase brand value with innovative offers to differentiate to

Where do I buy media to reach the right audience, gain their consideration of our value proposition and

Brand

Product Presence

addressable market?our value proposition, and cause adoption?

9

It is going to take new thinking, new skills, h d t i ti l &new approaches, and strong organizational &

partner alignment to thrive in this new world.

10

Connected CRM

Awareness Engagement Commerce Experience

C t P tf li

Customer Acquisition

Customer Portfolio

Customer Cross Sell | Up Sell

Customer Retention | Loyalty

Understanding behaviors is the key to managing long term customer value


Integrated Customer Marketing™ Framework

Brand Interaction

The goal of ICM™ is to deliver strategic customer interactions that enhance business value through the optimization of the customer portfolio.

Brand InteractionNCE

SERVI

Customer Portfolio OptimizationLifecycle Management & Segmentation

FLUEN IC

E INMarketing Optimization

ES IN

NFLUE

Budgets & Forecasts

SAL

ENCE

Campaign OptimizationTargeting & Interactions

12

ICM™ Framework – Currencies

Segmentation Value MeasurementSE


ENCE

ERVIC

Marketing OptimizationBudgets & ForecastsN

FLU E

INF

Campaign OptimizationT ti & I t tiA

LES I

FLUEN

Currencies Enable Movement Across the Levels

Targeting & Interactions

SA C

E

13

and Business Units

ICM™ Framework – Functional Areas

ES

ER

IntegratedMedia

Optimization

IntegratedChannel

Optimization

UE

NC

RV

IC


NF

LU E

INF

Marketing OptimizationBudgets & Forecasts

LE

S I

FL

UE

Campaign Optimization

SA

L NC

EPromotion& Media

PurchaseExperience

Campaign OptimizationTargeting & Interactions

14

(Outbound)Experience(Inbound)

Thank You

David WilliamsChairman & CEO

[email protected]


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