The Future of Marketing:Seizing the Customer Experience

Mina SeetharamanSVP, Global Creative StrategyThe Economist Group

Chandar PattabhiramGroup VP, MarketingMarketo

ABOUT THE EIU 2

Founded in 1946 Global network of analysts and editors Rigorous editorial standards and independence

CORE QUESTIONS

Which technologies and trends will transform marketing organizations most by 2020?

What are chief marketing officers doing about it today?

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“The ability to be external-and future-oriented is no longer optional. You’ve got to have a point of view about the future if you’re going to be where it’s headed.”

Keith Weed, CMO, Unilever

A GLOBAL CROSS-INDUSTRY SURVEYConducted in Q1 2016:

499 senior marketing executives (>50% were CMOs)North America (27%)Europe (30%)Asia-Pacific (36%)Rest of World (7%)

Annual Revenue <US$500 million (48%)>US$500 million (52%)

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IN-DEPTH INTERVIEWS Chris M. Kormis, Associate Dean and CMO,

McDonough School of Business, Georgetown University

Kristin Lemkau, CMO, JPMorgan Chase

Jonathan Martin, CMO, Pure Storage

Hans Notenboom, Global Head of Digital, Philips

Keith Weed, CMO, Unilever

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Customer experience drives brand value.

CMOs own the customer experience full stop.

But marketing complexity is growing sharply.

Marketo: Top-Level Findings

Trend: The connected customer.

What are their expectations?

Page 8© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Tomorrow’s Marketing

Monologue Dialogue

Find

Win

Grow

Retain

MODELLING ENGAGEMENT 12

Personalization everywhere

Value for customers & organizations

PRESSURE ON CMOs

Find, win, grow, retain customers

A different model of brand building is taking hold with leading CMOs:

…a shift from “Big Ideas”

to “Big Capabilities” …

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“You want to understand their likes and dislikes. And then, you want to personalize your content to them.”

Chris M. Kormis, Assistant Dean & CMO, School of Business, Georgetown University

REQUIRES: A SINGLE, BEST VERSION OF CUSTOMER TRUTH

A single, best version of customer truth:

Harmonized from various data streams:Demographics/PsychographicsClickstream/PurchaseDevice/Location

Derived from analytic capabilities:

Uniqueness/PrivacyApplicability/Value

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“The key is connecting the different pieces of the puzzle and ensuring that the right data are exchanged at the right point.”

Hans Notenboom, Global head of digital, Philips

ENABLES: PERSONALIZATION EVERYWHERE

Personalization blends: Deep understanding of a customer’s

wants, needs and desires;

Timely and tailored delivery of relevant content, products and services;

The top three channels to the customer in 2020 will be social media (63% of respondents), the World Wide Web (53%) and mobile apps (47%).

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“You’re no longer marketing AT people. You’re influencing them in an environment where they’ve already had a chance to form a view.”

Kristin Lemkau, CMO, JPMorgan Chase

CREATES: A WINNING CUSTOMER EXPERIENCEEIU cross-referenced customer experience (CX) leaders with metrics around profitability, revenue growth and customer acquisition: Nearly one-half of CX leaders were

profitability leaders in their industry; Over 40% of revenue growth leaders

were CX leaders across industries;

CX leaders accounted for 43% of customer acquisition leaders.

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“If I can’t combine analytical and creative smarts, it’s virtually impossible to be an effective CMO.”

Jonathan Martin, CMO, Pure Storage

How will brands engage fragmented audiences across unlimited digital shelf space?

Marketers must master a personalized customer experience (CX);

CX requires a harmonized view of the customer --- a single, best version of truth;

These data are combined with technology and talent to drive personalized customer experiences across platforms and at scale.

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RESULTS IN: VALUE FOR CUSTOMERS AND ORGANIZATIONS

“The experience is the marketing and the experience is what drives performance.”

Kristin Lemkau, CMO, JPMorgan Chase

EXAMPLE 1: Unilever – “All Things Hair” 18

Unilever and Google analyzed 11 billion anonymous searches for salon styling and hair care;

Unilever derived relevant hair- & styling-related topics from the search data;

Unilever developed & curated custom tutorials and products about various hairstyles for a bespoke YouTube channel.

MAPPING THE FRAMEWORK“All Things Hair” 19

Challenge: cut through the clutter in a CPG product area that is saturated and where people perceive little product differentiation

Approach: Use search data to build a needs-based customer view.

Enablement: they are able to focus and create content that addresses specific user needs.

Experience: Capitalize on moment of need in the journey and serve the customer on whatever channel (search, desktop, mobile, social) they might want it.

Result: Value for the customer in contextually relevant utility; brand builds audience and relationship over time where every intersection point makes the brand play a useful role to their consumer.

EXAMPLE 2: Philip’s Approach to Healthcare

“Our direct buyers are only a small fraction of the ecosystem. But our solutions must create value for each and every member of the healthcare ecosystem if we’re to be successful.”

Hans Notenboom, Global head of digital, Philips

MAPPING THE FRAMEWORKPhilips Healthcare Approach 21

Trends: healthcare is moving away from hospitals into the home and daily life, leading to greater personal responsibility for health.

Data complexity: Exchanging personal data effectively and securely across a range of health stakeholders is crucial for next-generation healthcare.

Enablement: Connecting the dots, including things like real-time IoT data ensures the right data are exchanged at the right point in a stakeholder’s experience.

Experience: Healthcare marketers take holistic approaches to engage patients across medical, nutritional, physical fitness and community-oriented contexts to help them make lifestyle changes.

Result: Long-term, symbiotic relationship with all the stakeholders along the healthcare continuum to improve preventative measures and ensure better outcomes.

LOOKING AHEAD 22

Personalization everywhere

Value for customers & organizations

“Brands need to help people simplify life so we all don’t go mad as this world becomes more complex. I believe that people who focus on that will unlock the true power of data.”

Keith Weed, CMO, Unilever

Page 23© 2014 Marketo, Inc. Marketo Proprietary and Confidential

“If you’re still thinking of the CMO as chief megaphone officer, you’re stuck in the 1990s.”

-Jonathan Martin, CMO, Pure Storage

1. Create a single best version of customer truth

2. Shift from monologue to dialogue3. Drive toward personalization

everywhere

Customer Experience is increasingly the basis of competitive advantage.

Thank You!Mina SeetharamanSVP, Global Creative StrategyThe Economist Group

Chandar PattabhiramGroup VP, MarketingMarketo