Redefining Commerce in the Age of the Empowered Consumer

Presenter: Steve Wilkins, Vice President Marketing, IBM Growth Markets Region

THREE IMPERATIVES

An emerging point of view on the future practice of marketing

Part 1: The changing professionA glimpse of the future of marketing as illustrated by a recent article in The New York Times

Part 2: Introduction to the three imperativesA point of view on the new roles and responsibilities of the marketing function

Part 3: Deeper dive into the imperativesA closer look at the imperatives and what it takes to make it a reality.

Part 1: The changing profession

In February of 2012, The New York Times published an article that gave us a glimpse of the future practice of marketing.

Part 2: Introduction to thethree imperatives

As we look to the future role of marketing, we must remember the timeless responsibilities of the function.

The timeless responsibilities of our marketing profession

Marketers have always been responsible for knowing the customer.

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

The three imperatives of a new profession

Marketers have always been responsible for defining what to market, and how to market.

Marketers have always protected the brand promise.

Understanding each customer as an individual.

The three imperatives of a new profession

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Marketers have always protected the brand promise.

The three imperatives of a new profession

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

Part 3: Deeper dive into thethree imperatives

Imperative 1: Understanding each customeras an individual

Let’s start with a story…

Have you ever felt that a company is

grouping you with a population thatyou don't relate to?

Individuals are demanding that we know them as more than a transaction, more than a demographic, more than a segment.

Imperative 1: Understanding each customer as an individual

The best brands are very strategic about which touchpoints get instrumented and what data about individuals emerges as a result.

Imperative 1: Understanding each customer as an individual

What is our instrumentation strategy to learn more about customers as individuals?

Transactions

Orders

Paymenthistory

Usage history

Purchase

stage

E-mail / Chat

Call center notes

Web click-

streamsIn-person dialogs

Opinions

Preferences

Desires

Needs

Characteristics

Demo-graphics

Attributes

Demographicdata

Transactiondata

Interactiondata

Behavioraldata

The great leap is into all the data that lies outside our enterprise—and into the new insights that data offers.

What is our strategy for attracting data from beyond our borders?

Imperative 1: Understanding each customer as an individual

Imperative 1: Understanding each customer as an individual

• Understand the complete customer experience

• Integrate digital behavior with traditional data sources

• Leverage customer insight in all parts of the business

‒ Leverage customer insight to increase department to department collaboration

‒ Leverage customer insight with partners,agencies and customer communities

• Listen to social conversations

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Imperative 2: Creating a system of engagement that maximizes value creation at every touch

Imperative 2: Creating a system of engagement that maximizes value creation at every touch

Offer

Network

Advice

Product

Knowledge

Companies that think systemically are able to provide the right offering at the right touchpoint—and to motivate greater engagement with a brand.

Imperative 2: Creating a system of engagement that maximizes value creation at every touch

• Create marketing so good that it feels like a service

• Scale and support millions of relevant offers

• Execute holistically based on standards-based suites and hybrid suites

• Introduce data syndication standards inside and outside the organization

Leverage systems of engagement to ensure relevant and positive customer experiences across all touch points that are aligned with

corporate character

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Imperative 2: Creating a system of engagement that maximizes value creation at every touch

Offer

Net-work

The most successful systems of engagement are defined broadly—they include products, but also expertise, new peers, connection and advice.

Knowledge

Product

Net-work

Product

What will we put into that system of engagement?

A system that drives competitive advantage is:• Individualized• Scalable• Inspiring for the future portfolio

Future portfolio of products, services, knowledge and experiences

Digital analytics Customer segmentation

Attribution modeling

Business intelligence

Customer predictive analytics

Which of these three points do we need to work on?

Imperative 2: Creating a system of engagement that maximizes value creation at every touch

Imperative 3: Designing your culture and brand so they are authentically one

THE TWEET THAT KILLED MY COMPANY

The three imperatives of a new profession

Designing your culture and brand so they are authentically one.

Creating a system of engagement that maximizes value creation at every touch.

Understanding each customer as an individual.

@stevewilkins_ibm.com/smartercommerce/au

Thank You