The Art and Science of Customer Acquisition

DMA (Northern California) Presentation

Pritham Krishnan

Agenda

• Meta themes that are disrupting marketing

• Customer Acquisition– Focus on knowing your prospects– Role of brand– Designing and executing an integrated

acquisition program

• Overview of business development

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It’s a great time to be a marketer!Five meta themes that are collectively disrupting marketing

ChannelsChannels

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11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

• Significant change unfolding within each area

• Cumulative impact of change = significant disruption

• Significant disruption = Opportunity

• Marketing, as a function

• Companies, in how they engage with their customers and prospects

• You, as a marketing professional!

Marketing platformsMarketing platforms

It’s a great time to be a marketer!Increasing number of channels, increasingly interconnected, to engage consumers

ChannelsChannels

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Paid

OwnedEarned

11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

Marketing platformsMarketing platforms

It’s a great time to be a marketer!Marketers increasingly orchestrating all parts of the customer experience, across more touch points

ChannelsChannels

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11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

Marketing platformsMarketing platforms

It’s a great time to be a marketer!Rapidly evolving marketing technology landscape offers a variety of solutions, with the promise of

more to come

ChannelsChannels

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11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

Marketing platformsMarketing platforms

Source: Lumascape

It’s a great time to be a marketer!

“Moneyball marketing”

ChannelsChannels

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•Volume, Velocity, Variety

•Structured, Unstructured

11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

Marketing platformsMarketing platforms

Evolving data capabilities to deal with

The Data Deluge

Source: Economist - graphic

It’s a great time to be a marketer!Nimble, rapid and data driven approaches to go to market

ChannelsChannels

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11

ExperiencesExperiences22

33

DataData44

ProcessesProcesses55

Marketing platformsMarketing platforms

Source: ChiefMartech

Where do we begin?Focus on the customer –who do we target and what are their needs?

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• Qualitative and quantitative primary and secondary research, to identify:• Needs and pain points

• Media consumption

• Identification of needs that can credibly be met

• Informs messaging, and articulation of emotional/ rational benefits

Who do we target?

• Triggers & engagement

• 20+ touch points, most are not “paid” or “owned”

• Role of influencers at different stages

• Shopping/research treadmill –how to short circuit?

What are their needs?

Segmentation of prospect universe…

• Iterative process with internal and external data to arrive at key target segments

• Demos, assets, investing behavior

• Alignment with all key internal stakeholders to prioritize budget and resources

Households (US) Value

Target segments are <1/3 of US HHs, and have 90%+ of value

All US HHs

Target segments

Highly desirable

sub-segments

Developing personas Understanding shopping journey

Target segments

…allows for a focused approach

The role of brand in acquisition

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• Schwab is a classic disrupter

• Democratized investing for the masses

• On the side of the individual investor

• Extremely strong brand -continue to evolve the “big idea” to connect emotionally with prospects:

• Continue to challenge the industry on breadth & sophistication of offers, pricing and transparency

• Up against • Investor cynicism, lack of trust, inertia• “Sea of sameness” among competitors• Macro economic conditions

• Marketing mix modeling & optimization: What did we get for our advertising spending and how much (more) should we spend?

• Cumulative impact vs incremental spend in one year, media vs promotions, spend by segment, channel, geo, etc.

• Marketers have a seat at the table but 70% of CEOs have lost faith in marketers ability to deliver growth from existing or new customers

• 69% of B2C CEOs believe B2C marketers too focused on creative and social media

• 71% of B2B CEOs believe that B2B Marketers are focused on the latest marketing technologies to generate customer demand but don’t deliver

OR

(AND)More magic / less logic ….moving beyond “arts and crafts”?

Total spend

KP

I

Illustrative

Source: Fournaise Marketing Report

Integration: Gap between marketers’ & consumers’ perception of integrated delivery

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51%

3%

19%

6%

19%

2%

Development & execution of

integrated marketing programs

None

Less than half

About half

Most brands, products & services

Don’t know, not sure

All brands, products & services

Sources: 1. ANA research; 2. 4th annual consumer Insights survey (Star Group, 2011)

Inside-out view:

Marketers’ perception of own integrated marketing programs1

Outside-in view:

Shoppers want integration, retailers and marketers not delivering it2

36%

6%

16%

36%

6%

Quality of integrated marketing programs

Unsatisfactory

Fair

Good

Excellent

Very good

Consistency in shopping experience across channels

Consistency in marketing messages across channels

Integrated campaigns can span a spectrum of complexity

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“The Draper”

• Big idea, matching luggage

• Develop big idea for TV, translate for other media using same look and feel

1 2 3

2-3 marketing channels complimenting each other

e.g. paid search and social, or paid search and organic search

Unified “seasonal” or umbrella theme

Individual campaigns run independently

Large scale multi channel integrated prospect experience, under an umbrella campaign, targeting a specific audience

Integrated cross-channel campaign to drive target segments to offline events, thereby increasing conversion

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Branches in

multiple markets

Branches in

multiple markets

Branch Event(Thematic Workshop)

Speaker Event

Educational Resources(support branch & speaker events)

Awareness & Consideration (online/offline) Engagement (offline)Follow up and

Conversion

Lead Capture

Follow-Up

Consultation

Geo targeted approach to drive quality leads to branchesProvide multiple opportunities to engage with experts

and financial consultants Ensure follow up to drive conversion

DigitalPrint

Search

PR

Outbound Phone teams

Branch personnel

Branch merchandising

Website

Email

Direct Mail

• One central message theme each quarter

• Themes based on research insights into target segment needs and pain points

Landing pages

Phone teams

Branch registration

Work with functional leads on workshop themes, content, speaker

selection, schedule, collateral

Program performance tracked at each step of the process

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Prospects/Clients

Attended Workshop

Conversion FundingFollow

Up Activities

FSI

Banner Ads

Paid Search

WebsiteRegistration

FormLanding

Page Registrations

Call phone team*

Outbound Calls

(clients only)

Inbound call team

Media Plan

(prospects & clients)

Demand Gen Activities

Email (clients

only)

PR

Client focus -

outbound

Integrator role coordinated across 17 groups to design, launch and track all program efforts

Call phone team*

Branch walk ins

Client focus - inbound

•Dedicated phone numbers allowed for tracking from various demand gen efforts, from each geographic area•Note: not all channel s represented in illustration

Significant analytics required to set up and execute the program, and determine overall success

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Differencebefore

marketing

Difference after marketing

Difference due to marketing

Time

KPI

Matched Control Branches

Test Branch• Demand

Generation Related

• Lead nurture• Key business

outcomes

During campaign

• Across Full Campaign

• By Market• By Branch

• Geo Targeting

Post campaign lift analysis

Market and branch selection for media and events , based on access to and presence of

target segment

• Propensity models

Identifying target audience

Pre-launch

Weekly TrackingClient Prospect Total

BannersSearch

OBCInbound (PDT)

Registrations#% of registrantsPhone callsBranch visitsOtherPhone callsBranch visitsOther

Total # people followed up withConversions #

% of attendees# in WH# in adviceTotalAverageMedian

Monthly AnalysisNNAAnnuitized assetsNew accounts (NTF)New accounts (existing clients)

Return on Investment

Lift Analysis (against control markets)

NNA (to end 90 days post campaign)

Key Metrics

Attendees

Follow up activity (w nonattendees

Follow up activity (w attendees )

Clicks (#, CTR)

Calls (#)

Landing page visits

Emails (oX clients only )

Challenges with executing on large integrated programs can be mitigated via various tools, practices and process

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Insufficient marketing budget

Existence of functional silos

Lack of strategic consistency across communications disciplines

Developing the big creative idea to leverage across all marketing disciplines

Inability to collect & analyze customer dataLack of standard measurement processLong lead times required for some elements of program

Lack of skill set among marketing staffAmount of time devoted to coordinating various agency efforts

Lack of executional consistency

Stakeholder alignment

Roles & responsibilities

Process & deliverables

Project management

• Integration starts at the top

• Sr. executive alignment (incl sales) commitment to resources, prioritization

• Alignment on insight, positioning and brief drives all execution

• Integrated program lead

• Level of integration needed across functions (and within functions)

• RACI

• Multiple processes, given complexity and number of functions/teams involved

• Define, communicate and align clearly

• Project plan with agreed upon timeline, milestones, deliverables and owners

• Weekly status check ins – live + email

• Know the long poles in the tent, bottlenecks, critical paths

Challenges Potential approaches/practices

Source: ANA

Partnerships as a marketing channel

Partnerships can bring brands together to create mutually beneficial relationships that help in achieving both partners’ business objectives.

Partnerships can meet various organizational

goals

Access to a distinct new audience

Distribution through distinct a new channel

Gaining access to new markets

Filling gaps in a companies offerings

Creating innovation in emerging growth categories

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McDonalds & Coca Cola

American Express &

CostCo

AT&T & DirecTV

Starbucks & Apple

Star Alliance

Walmart & American Express

Potential relationships are sourced within relevant categories, and are subject to significant due diligence

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Financial Services *

Life Event based

Affinity based

Content distribution

Require relationships of increasing size

Other relationships(Interests - travel, sports)

Partner Categories/relevance scale

* in adjacent spaces

Evaluation Criteria

• Brand alignment• Economics: lower cost channel• Scale • Growth• Target audience and access• Contextual relevance• Deal structure • Infrastructure needs• Compliance & Regulatory related:

• Adverse events• Advice/Client Experience• Disclosures• Privacy

One size does not fit all, and each relationship requires a lot of nurturing

Financial Services Partners

Highly engaged

• Affiliate relationship

• Joint content development and events

• Licenseing technology/tools/widgets

Life Event Partners

A a specific financial need exists

• Target with contextually relevant message

Affinity Based Partners

Endorsed by a trusted name

• Multi channel test and learn via print, digital, direct mail, live (workshops, large events)

Content Partners

Distribution channels for content

• 3rd party content distribution

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RationaleCategories Type of relationship

Thank you for coming!

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