institutionalizing the addressable advantage - how to create long-term competitive advantage

Institutionalizing the Addressable AdvantageHow to Create Long-Term Competitive Advantage

Presented by Ed Forman, SVP, Digital Analytic Innovation at Merkle, Inc.

There are plenty of examples of one-off solutions or manual processes showing organizations a glimpse of the possibilities that

addressable marketing offers.

The real trick to long-term competitive advantage is creating a scalable infrastructure and processes that can be repeated and

optimized over time.

In this presentation, we cover key enablers for performance marketing and discuss the opportunity that exists in rationalizing your current and future investments in your marketing technology

stack to create addressable experiences.

Watch this presentation in Merkle’s Performance Marketing for Financial Services

video series.Introduction

http://bit.ly/1MVizuk

Define and leverage an enterprise measurement

strategy

1

Key Enablers

Resolve data gaps and use insights to drive

execution

2

Implement a modern marketing technology

stack to manage addressable experiences in a scalable environment

3

Institutionalizing the Addressable Advantage to Achieve Performance Marketing Success


video series.



strategy

1

Key Enablers


execution

2



3


video series.Institutionalizing the Addressable Advantage to Achieve Performance Marketing Success


• Enables you to measure engagement, identify addressable audiences, and track on-going performance of your addressable marketing initiatives

- Gets you focused on outcomes

- Determine what’s working / what’s not working

- Answer what value marketing and sales efforts drive within the business

• Allows you to establish a baseline of performance by which to further optimize performance and be accountable to goals

• Serves as a guiding strategic blueprint for your data strategy (holistic customer view) and the build out of your enabling technology solution

- Fact is you can’t do performance marketing at scale without technology

- You get the most out of technology by embedding the measurement strategy

Key Enabler 1: Define and Leverage an Enterprise Measurement Strategy

Why?


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Measurement is an enterprise-wide currency that should consistently measure the value of consumer interactions with the brand therefore it should be broad in scope.

Driving insights at the senior executive level for the Business

Measurement insights that drive Program enhancements

Operational metrics to provide timely Campaign Metrics by Media & Channel

Measure the effectiveness of specific marketing tactics

• Fact Based• Longitudinal View - YOY/QOQ• Quality of accounts

Analyze the drivers of performance and customer engagement:

• Program Performance Deep Dives• Consumer/customer profiles and

behaviors• Competitive environments

Provide insights into portfolio and program strategies which would drive business impact (revenue and return on investment).

Baseline

Descriptive

Insights


video series.Key Enabler 1: Define and Leverage an Enterprise Measurement Strategy


Banking Example: Align the Measurement Framework to the Business

KPIs and Metrics defined across all levelsAbility to drill up or down to get to desired level of insight

Refreshed frequently to provide timely support to optimization efforts

Baseline

Descriptive

Insights

Consumer Business

Customer Segments Portfolio

Customer Marketing Programs Acquisition Programs

Media/Channels

Channels (Inbound) Media (Outbound)

Existing Customer Management Portfolio Management

High Value Mid Value Low Value Cards Lending Checking

Cards X-sell TriggersCustomer Prospect Private

Banking

ITA PS Customer PS Pros Small Bus.

Web Call Center Branch DM EM TM Digital

1

2

3


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• Track for known and anonymous audiences• Calculated at the individual level (customer ID or cookie level/device)• Stored over time for longitudinal tracking (i.e., rolling 3 months)• Ability to slice by campaign, geography, time• Lead with measurement strategy; sets the stage for data and tech enablement

Accounts in Force

FinancialsSize of Book

Portfolio Acquisition Cost

QualityIndex

Quality of Book

KPI Examples

Products per HH

Deposits / Spend

ROICost per Account

Share of wallet

Program Impact

Program Effectiveness

Retention Programs

Acquisition Programs

Incremental response / booked

Cost per AccountMonth to payback

Channel Ops. Metrics Media Ops. Metrics

Web

Call Center

Branch

Mobile Mass MediaEmail

Direct Mail Paid SearchDisplay

Natural SearchSocial

Video

Site visits (web)Contact rates (CC)

Monthly Active Users (mobile)

Click through (display)Open rates (email)Play rates (video)


video series.Banking Example: Align the Measurement Framework to the Business



strategy

1

Key Enablers



3


execution

2




Key Enabler 2: Resolve data gaps and use insights to drive execution

…there is a mass of complexity required to bring those data assets together to see the entire customer experience.

The depth of challenge is often not realized until you look below the surface.

Brand, media and channel data can be obtained but…

While addressability is the new driver of competitive advantage, it extremely important to understand how consumers engage with your

brand across all media and channels


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The goal is to operationalize this complexity

The reality: Optimizing behavior through addressable experiences has become increasingly complicated as channels and media options grow.


video series.Key Enabler 2: Resolve data gaps and use insights to drive execution


Drive toward data frameworks that leverage your measurement strategy and insights generation. Once in place, leverage analytics to generate insight to drive execution (e.g., cross-channel attribution).

Day 8-30 Day 1-7 Day 0-1

Actual Experience

New Customer

Direct or Rules Based

Credit over applied to bottom of funnel

touches. Other touches often ‘invisible’

Creates flawed financial

view of performance

Model-adjusted interaction

Most accurate and actionable

100%

3% 14% 3% 5% 5% 5% 15% 5% 5% 30%5% 5%Modeled

TV

Mass and Offline Digital

Direct Mail Alt. Media Display Email Web Paid Search Click




Client Example: Live Event Stream & Attribution Example

One Event Pattern: Direct Mail > Magazine > Bulletin > Direct Mail > Paid Search

Modeled Attribution Allocation %

Rules Bases AttributionAllocation %

Direct Mail 59% 0%

Magazine 6% 2%

Bulletin 7% 1%

Paid Search 28% 97%

• Resolve data gaps to enable more actionable analytic frameworks (attribution in this example)• In the case, the client was able to make a significant shift in media allocation• Further pattern analysis found they were under-spending in TV and over spending in Paid

Search; course correction resulted in significant incremental conversions

3/11: Searched a paid search term and responded / converted

3/9: Received a Direct Mail

3/5: Received a Bulletin

2/8: Received an Branded Magazine



~30k households experienced this pattern before they clicked on a paid search ad and responded

in MarchFor example: Household 00000012345678


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The result…• Consolidated view of the consumer

across all touchpoints

• Allows you to analyze your programs in context of the whole picture

• Valuable insights on consumer behavior, attitudes, and behaviors

• Attribution – provides foundation for effective measurement

• Multi-media, multi-channel optimization based on facts

Social

Print

Direct Mail

Display

Search TV/Video

Mobile

Site

Product

LTV Segment

Demographics

Life Events

Call center

Meetings

Email





execution

2


strategy

1

Key Enablers



3




Key Enabler 3: Modern marketing technology stack

Goal is to create a fully integrated suite of people-based marketing services

DatabaseID Management

AnalyticsCMSDMP

CampaignLoyalty

Program & Campaign Planning

Measurement

Content

Media Activation• Search• Display• Paid Social• Email• Direct Mail

• Website• Mobile• Native App• Social• Call Center• In Store

• Measurement Strategy• Attribution• Marketing Mix• Forecasting & Simulation• Testing

• Creative Development• Content Development• User Experience

Channel Activation

• Lifecycle Strategy• Offer & Value Prop Development• Audience Plan• Experience Plan• Media Plan• Test Plan

Operating Strategy• Engagement Model• Change Management• Technology Blueprint• Supply Chain Management• Governance

Customer Strategy• Market Sizing• Segmentation• Portfolio Strategy• Journey Mapping & Capability

Strategy


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An addressable marketing operating system that

integrates capabilities and competencies to deliver

value

PeopleProcess

Technology

Or stated another way: Platforms + Services

WO

RK

FL

OW

Measurement of programs and development of insights

Content personalization and orchestration of people-based audiences

across channels and media

Aggregation of valuable CRM data sources into audiences and

development of people-based campaigns

Execution of people-based campaigns across performance media…

Dat

a M

anag

emen

t C

loud

Insi

ghts

Orc

hest

ratio

nA

ctiv

atio

n


video series.Key Enabler 3: Modern marketing technology stack


Services

• Attribution • Site Analytics• Media Mix Modeling• Forecasting & Scenario Planning• Cross-channel Reporting

• SEM/SEO• Programmatic Display• Paid Social• Retargeting• Email/Direct Mail• Lead Nurture Services• User Experience• Performance Content/Creative

• Audience Planning• Experience/Content Planning• Media Planning• Content/Ads Creation• Addressable Targeting

Decisioning• Content Personalization

Decisioning• Testing Strategy

• Marketing Database• DataSource• Data Eval & Sourcing• Systems Integration• Connected Recognition• Data Hygiene/Processing

Reporting & Insights

Attribution Analytic Tools

Planning

Tag Management

Dynamic Creative Content Management

Mobile Apps

Retail/StorePremium Pubs

Onboarding

DMP

Data Enhancement Data Sourcing

Identity Management

Marketing Database

Decision Management

Twitter

Facebook

Email

Direct Mail

Other

LinkedInAddressable TV

WO

RK

FL

OW

PERSONPLATFORMS

DSP

SSP

RSLA

Ad Server

COOKIE PLATFORMS

Platform

Call Center

Mobile Apps

Site

Retail/Store

CHANNELS

Campaign Management

Dat

a M

anag

emen

t Clo

udIn

sigh

tsO

rche

stra

tion

Act

ivat

ion

Leverage current investments and layer in the missing components




WO

RK

FL

OW

Platform

D a t a M a n a g e m e n t C l o u d

O r c h e s t r a t i o n

A c t i v a t i o n

I n s i g h t s

Real-time Media and Content Delivery Platforms

Key Themes:

• Coordinated services activities

• Enabled by a modern solution stack

• Embedded insights for informing execution and tuning for on-going, improved performance




Thank You!Ed Forman

SVP, Merkle Marketing [email protected]

443-542-4599

Define and leverage an enterprise measurement strategy1

Implement a modern marketing technology stack to manage addressable experiences in a scalable environment

3

Resolve data gaps and use insights to drive execution 2




Watch this presentation in Merkle’s Performance Marketing for Financial Services video series

Get up to speed on how the industry's top-performing financial services brands are using addressable audience platforms to see great results with Real World Success with Performance Marketing. There are five presentations, each taking an in-depth look at how one brand celebrated huge wins:

• Video 1: Disruptive Marketing Trends in Financial Services

• Video 2: Transforming to Compete in the Age of the “Always Addressable Customer”—From vision to reality

• Video 3: Go Your Own Way: The many paths to addressable marketing

• Video 4: Turning Execution into Impact• Video 5: Institutionalizing the Addressable

Advantage


http://www2.merkleinc.com/l/47252/2015-11-18/2chzhz