cross-channel marketing and message convergence

aThe Dollars & Sense of Cross Channel Marketing and Message Convergence

DMA 2011, Ask the Expert Round Table

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We’ve become a wired, multi-tasking society

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Technology is changing ourcommunication patterns and behaviors

Freedom of choice is driving ourinstant gratification and heightened

expectations

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We’ve become a ‘Short Burst Society’ *

Everyone is always ‘on.’ Everything is shorter, faster, happening now. Attention deficit is pervasive, chronic.

* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved

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50% of us skip commercials.



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550 million have Facebook profiles. Over half apply updates every day.



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200 million use Twitter with 300,000 new sign-ups each day. We send 95 million tweets each day.



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200 million use Twitter with 300,000 new sign-ups each day. We send 95 million tweets each day.

72% of U.S. consumers have SMS plans, 203 million. Text messaging is up 400% in past 4 years with trillions sent each year.



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Where is digital messaging headed?

Individualized - one-to-one communications where relevant, preference-driven messaging is the norm and customer expectation.

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Real time – in the moment communications where the message and response, action and reaction occur right now.

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Interactive – two-way communications where active dialogue (not passive monologue) is the key to engagement; where it’s more about the conversation than the initial message.

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Multi-channel – cross-channel communications where customers use multiple channels and fluidly move between them; where channel choice, brand consistency and coordinated messaging truly matter.

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Multi-channel – cross-channel communications where customers use multiple channels and fluidly move between them; where channel choice, brand consistency and coordinated messaging truly matter.

Converged – melded communications where message types blur (marketing, service); where channels become incidental as interactions that begin in one channel are consummated in another.

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HUGE CHANGE

Customer Behaviors & Expectations

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ConvergedDevice

ConvergedInbox

Now add-in customer control

Brand A

IM

Customer cross-channel control of messages and messengers – where some brands get access and some don’t. Access is earned.

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ConvergedDevice

ConvergedInbox

Brand B

IM

Now add-in customer control

Brand A

IM

Customer cross-channel control of messages and messengers – where some brands get access and some don’t. Access is earned.

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So what will the future look like?

Highly individualized, two-way conversations occurring in the moment. Customers moving fluidly between channels; interactions initiated in

one channel being consummated in another. Customers controlling both the messages they get and messengers

they choose to hear from.

Right message. Right channel. Right now.

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What should brands expect?

Either trend would cause serious business disruption happening solo.

Happening together will magnify the disruption, and pose unusually big opportunities for some brands; big risks for others.

Customer Behavior & Expectation

Changes

Customer Ownership &

Control Changes

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Why the BIG opportunities and risks?

Today’s Reality:Message Confusion

Messaging siloed by channels and/or company business units

Messaging conducted by disjointed point solutions

Gap between customer messaging preferences and company capabilities

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Why the BIG opportunities and risks?

Today’s Reality:Message Confusion

Messaging siloed by channels and/or company business units

Messaging conducted by disjointed point solutions

Gap between customer messaging preferences and company capabilities

Tomorrow’s Requirement:Message Convergence

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What are the implications?

Serious disruption to current business models:╸ Changes to marketing and sales cycles, such as real time data

management and message decision making, and managing of message flows vs. channels

╸ Consolidation and revamping of communication and business processes

╸ Implementation of new customer care standards so all touch points count

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Reorder of market leader rankings; some brands will thrive as others struggle to survive

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Mad scramble to invest in right-minded people, solutions and especially enabling technologies

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BIG risks in loss of vital customer connections for communication and commerce for brands that don’t respond or respond wrongly

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BIG risks in loss of vital customer connections for communication and commerce for brands that don’t respond or respond wrongly

BIG rewards for brands that get it right

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What does ‘getting it right’ mean?

Customer Behavior & Expectation

Changes

Customer Ownership &

Control Changes

MESSAGECONVERGENCE

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What is Message Convergence?

Message Convergence is a customer engagement strategy for the new communications norm where brands …

╴ Know their customers’ preferences, needs and wants

╴ Act on what they know to actually coordinate their messaging

╴ So meaningful content is delivered at the right time

╴ And in the channel that’s most contextually relevant

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Message Convergence is about customer-adaptive messaging.

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Message Convergence is about staying connected with customers across multiple channels – channels now controlled by customers where access is a privilege extended to brands who earn it.

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Message Convergence is about staying connected with customers across multiple channels – channels now controlled by customers where access is a privilege extended to brands who earn it.

Message Convergence is about capitalizing on the opportunities – winning – and avoiding the risks.

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Where to start?

1. Start with technology; close your capabilities gap. Find a messaging technology solution to mimic customer behavior in your communications, stay connected with them, and follow their conversations across channels.

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Where to start?


Why technology?

╴ Changes in customer behaviors/expectations driven by technology; solution rooted in technology too

╴ Message Convergence is a technology-enabled customer engagement strategy; without it you get no where

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Where to start?


Why technology?



2. Get your email under control. First place to apply new messaging technology in consolidating and coordinating email.

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Where to start?


Why technology?



2. Get your email under control. First place to apply new messaging technology in consolidating and coordinating email.

Why email?

– Widest deployed form of digital messaging; easily understood

– Biggest positive impact on customer experience and bottom line

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What to look for in your technology solution?

1. Single solution. Find a single platform solution specifically built for the ‘new norm’ – not cobbled together, channel-specific point solutions – for coordinated, cross-channel messaging. It should:

– Serve as central integration layer for all digital messaging in enterprise

– Connect with different data sources, applications, systems and business processes across enterprise – horizontal integration

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What to look for in technology solutions?

2. Capable solution. Find a technologically advanced solution that’s capable of meeting future messaging needs – individualized, real time, interactive, multi channel, converged. It should be:

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╴ Powerful and reliable – support business-critical communications; scalable to success

╴ Interoperable, inherently open – extensible framework; always keep partner options open

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╴ Agile and future proof – infinitely flexible, responsive; rules-based policy engine

╴ Visibility on demand – know what’s happening; convert knowledge into marketplace advantage

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╴ Agile and future proof – infinitely flexible, responsive; rules-based policy engine

╴ Visibility on demand – know what’s happening; convert knowledge into marketplace advantage

╴ Configurable and usable – no one size fits all; customize to unique needs; capability is more critical than interface

╴ Safe and secure – ensure customer confidence; protect and grow brand

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3. Total business solution. Find a solution that can deliver Message Convergence tactically in your daily operations first, then refine and roll-up to realize higher order business vision and value. Solutions that don’t tie directly to the business processes are of limited use.

42 Copyright © 2011 The Relevancy Group, LLC All Rights Reserved

Message Convergence drives greater effectiveness and efficiency

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Technology Management

Marketing is integrated across channels to deliver relevant, contextuallycorrect content consistent with customer needs and circumstances. Integration is key.

Copyright © 2011 The Relevancy Group, LLC All Rights Reserved


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People Management Technology Management

Marketing is integrated across channels to deliver relevant, contextuallycorrect content consistent with customer needs and circumstances. Integration is key.

Process and people coordination.

Marketing is driven by a coordinated customer centric

organization where business success is

measured by the value of customer

experience.

Copyright © 2011 The Relevancy Group, LLC All Rights Reserved


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But most companies are organized in silos

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Marketers in silos don’t connect across the enterprise

Few Organizations Connect Customer Centric Practices, Data, Measurement Across Silos

Customers & Prospects

Field MarketingSales Management

Customers & Prospects

Loyalty MarketingProduct Marketing

Press and OthersCorporate/Brand

MarketingInvestor Relations

Marketing Silos, Lack of Connected Marketing, see www.CMF4.com For The Connected Marketing Framework Source: The Relevancy Group, LLC

http://www.cmf4.com/

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Few organizations practice ‘connected marketing’ creating a disjointed, chaotic competitive culture

Question Asked: Please select the statement or statements that best represent how your marketing organization operates? (select all) Source: The Relevancy Group Executive Survey, n=368 5/11, United States Only

None of the above

The marketing team is rewarded with common personal incentives

Use attribution to ensure that offline response is attributed back to the correct channel

Our marketing programs are tightly coordinated across all marketing channels

We manage contact frequency across all channels

There is central ownership of marketing across all channels

Our marketing department shares common goals

0% 20% 40% 60% 80% 100%

7%

14%

16%

28%

29%

33%

51%

Marketing Organization Operational Culture

Marketerroles are

segregated.The majoritylack sharinga universalconnectionof processand goals.

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Role segregation and lack of connected marketing produces disjointed/incomplete view of customer

Customer Connected Marketing, when driven by coordinated connected marketing roles versus disparate marketing roles that serve only channels, see www.CMF4.com For The Connected Marketing Framework

Source: The Relevancy Group, LLC

http://www.cmf4.com/

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Centralizing for complete customer view remains elusive

MobileSocial

Inventory

Web-behavior

CRM systemSearch

Loyalty

Customer scoresPurchase

Demographics psychographics

29%40% 42% 46% 48% 49% 51% 57% 58% 65%

36%36%

20%33% 26% 20% 22%

27% 19%20%

35%24%

38%21% 26% 30% 26%

17% 23% 15%

Systems & Data Integrated into Central Marketing Database

Currently integrated Plan w/in 12 months No plans to integrate

Question Asked: For each of the following systems and data sources, please indicate your plans for integrating to them into a centralized database for use in marketing efforts? (select one for each)

Source: The Relevancy Group Executive Survey, n=368 5/11, US Only

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Email as most widely deployed channel awaits convergence with other channels

Question Asked: Which marketing channels do you actively market in? (select all)

Source: The Relevancy Group Executive Survey, n=368 5/11, United States Only

CatalogsDigital Mobile Apps (iPad, etc.)

Mobile MarketingLoyalty Programs

Location Based MarketingOnline Video, e.g. YouTube

Paid Search MarketingField or Event Marketing

Online Display AdsSocial Marketing

Print Direct MarketingEmail Marketing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

24%33%

38%42%42%44%

50%56%

63%65%

69%77%

Marketing Channels Deployed

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What does a converged capability look like?

Today:Message Confusion

Convergence is about consolidating and integrating data, systems and business processes on single platform

It’s not about insource/outsource – can still point to ESP or other cloud provider

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What does a converged capability look like?

Today:Message Confusion

Tomorrow:Message Convergence

Convergence is about consolidating and integrating data, systems and business processes on single platform

It’s not about insource/outsource – can still point to ESP or other cloud provider

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Message Convergence drastically reduces total cost of ownership

Single platform solution that supports Message Convergence improves effectiveness and creates efficiencies: Optimize Opportunity Costs Reduce Labor and Admin

Costs Decrease Power Consumption Lower Mobile Message Costs

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In simplest example, savings increase through Message Convergence

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Designate a Champion to realize the value of Message Convergence

Appoint a champion to drive Convergence initiative forward

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An individual who can bridge several worlds — IT, Marketing and Customer Care

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They must represent the customer experience as the end user sees and defines it

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Champion should be CMO or come from/report to CMO’s office

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Act as liaison across all of the individual corporate silos in documenting their needs and integrating them into an overall action plan

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Act as liaison across all of the individual corporate silos in documenting their needs and integrating them into an overall action plan

Tasked with seeking out the proper technology infrastructure to facilitate Message Convergence, and in doing so illustrate the cost and effectiveness benefits

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Convergence whitepapers with prescriptive advice

Messagesystems.com/prepare4convergence

Messagesystems.com/DollarsAndSense

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Questions

cross-channel marketing and message convergence

Business

moment communications

digital messaging

right channel

right message

melded communications

preferencedriven messaging

coordinated messaging

channel choice