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Acxiom presentation to Forrester Marketing Forum London Nov 2009. Identifies key steps to dramatically improved marketing & advertising. Contains many examples
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Tough Times Don’t Last. Tough Competitors Do.
Tim SutherSVP, Multichannel Marketing [email protected]
http://www.linkedin.com/in/timsutherhttp://twitter.com/timsutherhttp://www.slideshare.net/TimSuther
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Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
7% of disposable income is now saved – was 0%
3
Change May Be Necessary
4
Four steps to higher performing marketing & advertising
5
1. Data is the new black
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1. Data is the new black
30% of customers deliver the majority of profits
50% Add nothing
20% Cost companies money
SAS
The Differentiated Value of Customers
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Product propensities• Propensities across the conversion
funnel• Next best product to sell• Likelihood to recommend
Channel Preferences• Shopping pathway• Preferred buying channel• Preferred research channel• Preferred service channel
Interests & attitudes• Purchase intent by category• Recreational interests• Social Causes
Geodemographics• Age• Occupation• Gender• Location• Ethnicity• Family / size of household• Life stage / life event
Media Preferences• Media consumption• Explicit preferences• Implicit preferences• Context preferences• Contact/cadence strategy
Relationship Profile• Customer segment history• Product ownership history• Current & lifetime value• Share of wallet• Marketing budget by customer
Interaction History• Service history• Promotion history• Response history• Across channels
Brand Advocacy• Net Promoter Score• Degree of social influence• Brand metrics at customer level
Monetary Indicators• Income indicator• Wealth indicator• Discretionary spending• Real property indicators
1. Data is the new blackIt’s not about you. It’s about them.
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2. Create a 360̊ view
• Explicit & inferred preferences
• Wants & needs
• Motivations & attitudes
• Social influence circle
• Cross-channel behaviorhttp://www.youtube.com/watch?v=9hq5jZrFTbE
Remember every interaction and learn
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2. Create a 360̊ viewLift to Search
15%18%
24%
TV TV + Print TV + Online Display
Email Lift to Brand
12%
37%
7%
Brand Awareness Campaign Awareness Favorability
Display Lift to Conversions
65%
54%49%
46%
Week 1 Week 2 Week 3 Week 4
The interrelated and overlapping effects of media
Email Lift to Offline Purchase
42%
11%
Purchase within 12 mos Purchase 4+ times
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Awareness
Shopping & Consideration
Purchase
Up/Cross-sell
2. Create a 360̊ viewCombine who, when, and where…and you’ll know why.
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3. The confluence of insight & media
• With most media, you never know who you’re gonna get.
• Knowing who determines:– How much to invest…if anything– What to say…without guessing
• The typical marketing problem:– Over-invest in low value
relationships– Under-invest in high value
relationships
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3. The confluence of insight & media
Cadillac
AllstateHershey
American Express
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments
UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
A look at “who” at world class brands
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0
50
100
150
200
250
300
Shopped at Banana Republic
0
50
100
150
200
250
300
Ordered from BestBuy.com
0
50
100
150
200
250
300
350
Ordered Flowers online
0
50
100
150
200
250
300
350
Shopped at Ann Taylor
UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments
…and their shopping behavior3. The confluence of insight & media
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MSN96 MM UV’s
AOL70 MM UV’s
eBay56 MM UV’s
Yahoo148 MM UV’s
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments
UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
Acxiom, comScore
Profile of traffic is much different at major online sites3. The confluence of insight & media
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0
50
100
150
200
250
300
0
50
100
150
200
250
300
0
50
100
150
200
250
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UV
Inde
xU
V In
dex
UV
Inde
xU
V In
dex
PersonicX Consumer Segments PersonicX Consumer Segments
PersonicX Consumer Segments PersonicX Consumer Segments0
50
100
150
200
250
300
ABC
NBC
FOX
CBS
…and at major networks3. The confluence of insight & media
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80% of online advertising fails
to reach its intended audience
3. The confluence of insight & mediaTraditional media buy = FAIL on a massive scale
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Concentrate ad spend to drive 3-5x value improvement3. The confluence of insight & media
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3. The confluence of insight & mediaConcentrating ad spend requires trusted intermediaries
Portals
Adv CT
Acxiom Firewall
Acxiom Firewall
Adv CustomerDatabase
Online Print Social
Social
Cable Gaming
Cable Mobile
AppsMobile
Print Gaming Apps
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“… too many shortcomings to be seriously considered as a means of communication. The device is inherently of no
value to us.“
Western Union memo on potential for the telephone, 1876.
4. It’s about accountability & execution
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"We don't like their sound, and guitar music is on the way out.“
Decca Recording Co. rejecting the Beatles, 1962.
4. It’s about accountability & execution
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4. It’s about accountability & execution
1. Identify customer value
2. Invest proportionally
3. Engage accordingly
4. Measure customer value impact
So, now what?
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The Four Steps…summarized
1. Data is the new black
2. Create a 360̊ view
3. Confluence of insight & media
4. Accountability & execution
These are the lessons of direct marketingOptimize customer valueat every interaction in the buying cycle
Hidden in plain sight
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Live examples
4x “orders per thousand”– Connecting print & digital
3x applications; 5x online revenue; same head count– Connecting call center & digital
2x online bookings– Connecting outbound & website
7.5x website spend– Connecting mobile & email
17x response– Connecting TV & offline
$200M revenue / $4.5MOpEx savings – Connecting call center & digital
$100M/yr EBIT impact– Multichannel connection
9-figure/yr revenue impact– Multichannel connection
Optimizing customer value at every interaction in the buying cycle
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“How & Why” “The Benefit”
1) Use Relevance-X Display to concentrate online ad spend and then follow with Relevance-X TV.
2) Use Relevance-X Social to recognize socially active customers & prospects and implement and track your direct social media marketing initiatives
3) Use Impact-X Mobile integrated with Impact-X Email for likely halo effect
4) Identify high-volume drivers of calls proactively deliver relevant content to address needs that would have solved the reason for those calls.
5) Impact-X allows you to follow the digital footprints to recalibrate your outbound marketing initiatives
6) Email a branded transcript back to site visitors. Include buttons to “buy” or to “subscribe” to other services.
7) Identify opportunities to improve organic visibility, potentially reduce paid search.
8) Build / implement predictive models to screen out low value leads provided. Consider a test with Acxiom CoReg services and / or e-list rental.
9) Target and test content with Impact-X Site. Implement Relevance-X analytics tags to measure conversion funnel progress by lifestage segment.
10) Relevance-X Display Retargeting : 53% of shopping carts abandon. Remarket based on specific site behavior / lifestage.
1) 3-5X revenue / ad dollar at other clients Existing customers respond 17X to prospects to digital TV ads
2) Match against 500M socially active individuals (~60-70% of any email list)
3) Avg. mobile purchaser has higher income & spends 2X over Web-only.
4) $2M / year cost displacement & $200M / yr influenced revenue at another client.
5) 2X website conversions achieved at another client.
6) This is the highest performing email application at another client.
7) 72% of Google clicks are organic. A proper audit enables more free traffic
8) The bottom three deciles can likely be eliminated without impacting conversions.
9) Personalized site experiences drive 4–15X ROI.
10) Remarketing generates $4–10 revenue per ad dollar.
1) Reduce wasted ad impressions, concentrate spend on highest value consumers
2) Recognize & connect with social media influencers
3) Engage customers and prospects via mobile lifecycle messaging
4) Examine call center patterns, use email to pre-empt expensive personal support
5) Connect Web analytics with outbound messaging
6) When chat available on site, offer to send a branded transcript of the chat.
7) Perform an organic search audit
8) Implement lead scoring when receiving third party leads
9) Improve the site experience
10) Retarget site visitors that do not convert
“The Idea”
10 Easy Money Ideas
25
What could have been
Portable Music
owned
but couldn’t become
On-Demand Info
owned
but couldn’t become
Movie Inventory
owned
but couldn’t become
It’s not enough…A great customer baseA great productA great strategyA great team
Darwin always wins.
Will you?
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The global interactive marketing services company
Thank You
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