#CRMSummit2012 @jay_henderson © 2012 IBM Corporation
Marketing, Technology, and the Empowered Customer
Jay HendersonStrategy Director, Cross-Channel MarketingIBM Enterprise Marketing Management Group
@jay_henderson
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 2
But first, some introductions…
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 3
Generation C -Customer are connected and in control
4 in 10 Smartphone users search for an item in a store
70% of online consumers
trust peer recommendations
77% of B2B buyers check with peers before buying
140 million+ active Twitter
users each month
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How Generation C behaves
Customers and Prospects
Online
Mobile
Call center
Stores
Kiosk, ATM
Point of sale
Postal mail
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Marketer
One person behind all the
channels, guiding the dialogue
and relationship
Online
Mobile
Call center
Stores
Kiosk, ATM
Point of sale
Postal mail
What Generation C expects
Customers and Prospects
Customers and Prospects
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What Generation C often experiences
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Customers and Prospects
Online
Mobile
Call center
Stores
Kiosk, ATM
Point of sale
Postal mail
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
agenda
strategy
data
tech
Marketing
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But…you know all of this already…
How do I get there?
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Succeeding with Generation C means...
Marketing so good it feels like a service…
…and service so good it’s marketing
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Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 10
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
1. Customer centricity beyond marketing
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 11
EnergizeCustomersDelightedFansBroadcasters
Customer ExperienceQualityConsistencyConvenience
Customer
Demand GenerationConsideration
PreferenceTransact
Awareness
Prospects
Good Marketing is Service
Good Service is Marketing
Marketing must understand and influence the complete customer experience
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High-performance marketers champion the customer experience
Marketing at outperforming
companies is nearly 3X more likely to proactively lead
customer experience across all channels
Outperformers Rest of population0%
5%
10%
15%
20%
25%
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Only 22%
51%
Currently run social tactics as part of integrated campaigns.
79% Run social marketing in silos, discretely and on an ad hoc basis.
Of marketers don’t use social media data to inform decision about marketing offers and messages.
Own the operational process to influence social conversations
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Share customer information with other parts of the business
MarketBuy
Service Sell
Marketing must move beyond its silo and focus on business results
Marketing with merchandising
Marketing with on and off-line sales
Marketing with customer service
Marketing with the supply chain
Marketing with IT
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Creates and manages one-to-one marketing across all channels
Serves marketing messages during a purchase
Serves marketing offers and customer care messages during service and
support interactions
Provides input into supply networks based on consumer demand
72%
62%
53%
45%
59%
52%
40%
40%
Marketing’s influence
High-performance organizations leverage good
marketing across many functions
Outperformers Rest of population
High performing marketers are connected
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Beyond the boundaries of the enterprise with the network effect
Share customer information with partners, agencies and customer communities
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Customer centricity beyond marketing
Understand and influence the complete customer experience
Own the operational process to influence social conversations
Share customer information with other parts of the business
–for retailers: leverage consolidation between merchandising and marketing
Share customer information with partners, agencies and customer communities
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 18
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 19
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
2. A long term plan for a system of engagement
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 20
What is a system of engagement?
Collectdata that augments
each customer profile
Analyzeto indentify opportunities
and predict outcomes
Collectdata that augments
each customer profile
Managemarketing processes and
measure results
Decideon the best action, offer, content and/or channel
Deliverrelevant pricing, engaging messages, and capture reactions
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You can’t get there with this…
SMSMarketing
FilesFiles
FilesFiles
Files Customer Database
Files
Email Service Provider Web Analytics
Provider
Website Behavioral Targeting
Search Marketing Dashboard
Customer Insight ToolPredictive
AnalyticsMarketing Finance Mgmt
Digital Asset MgmtCall
Center/Inbound Decisioning
Marketing Operations
Mgmt
Lead Management
Local Marketing
Predictive Analytics
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation
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85% agreethat they need an integrated marketing suite.
Marketers agree that an integrated marketing suite is a key part of the solution
But 59%Believe existing systems are too disparate to integrate across channels.
And 71%think that this needs to be across all channels – paid, earned, owned.
Source: The State of Marketing 2012 IBM’s Global Survey of MarketersBase: Total Sample (n=362)
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IBM (and other large vendors) have embraced the idea of the EMM suite
A marketing technology category that supports the end-to-end marketing
function across all marketing disciplines
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EMM suites will simplify creating your system of engagement
• Not just any suite but best-of-breed suites (modular)
• You don’t have to buy everything from one vendor (shhh…)
• Balance practicality with definition of a suite
• Balance business agility with suite integration
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Develop a plan for….a system of engagement
Start with key pain points and work down the list
Integrate digital behavior with traditional data sources
Scale and support millions of relevant offers
Consolidate silos and introduce standards-based suites and hybrid suites
Introduce data syndication standards inside and outside the organization
Systems of engagement
ensure relevant and positive
customer experiences
across all touch points that are aligned with corporate character
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 26
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 27
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture3. The right marketing culture
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 28
Balance analytics and creative talents
Analytics Creative
+
Mix together the art of marketing and the discipline of science…
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Work with IT not around IT
Ownership and flexibility: IT IT really should own solution architecture, but…
– IT needs to earn credibility with marketing (know the business needs)
– IT needs to be sensitive to the need for significant change IT’s choice:
Be 100% standards-driven/inflexible and
influence 50% of marketing technology design
Be 20% flexible and influence 100% of
marketing technology design
OR
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High performing marketers work betterwith IT
Overall, marketing and IT work well together. Marketing and IT at high-performing
companies, however, work more effectively .
High Performers
51%
41%Lower Performers
Base: Total Sample (n=362)
Q. How well does marketing collaborate with IT?
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Digital Marketing
Traditional Marketing
Break down the marketing silos (and create bridges)
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Digital Marketing
Traditional Marketing
Break down the marketing silos (and create bridges)
Only 29%Of marketers are very effective at integrating channels.
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation
Digital Marketing
Traditional Marketing
Break down the marketing silos (and create bridges)
65% Less than 1 and 5Of respondents are
doing the basics by reporting and analyzing their online visitor data.
Only a third Use this data in targeting one-to-one offers or messages in digital channels.
Leverage online data to inform one-to-one offers in traditional channels.
33
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High performing marketers leverage their online data in other channels
Base: Companies that have online visitor data (n=351)
May 2012
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…finally…
Accept mistakes and learn from them, be agile enough
to iterate and improve
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Cultivate the right marketing culture
Create an organization that balances analytics and creative talents
Work with IT not around IT
Break down the marketing silos — digital and traditional marketing must consolidate and collaborate
Accept mistakes and learn from them, be agile enough to iterate and improve
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 37
Better marketing........requires a holistic approach
1. Customer centricity beyond marketing
2. A long term plan for a system of engagement
3. The right marketing culture
#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 38
Addressing CMO’s needs systematically and for the long term
Educating and influencing CIOs and CEOs to help improve marketing
Explaining and escalating CMO’s agenda in IT
Setting marketing standards through robust technology
Providing best practices, market insight and benchmarks
IBM is fulfilling the promise of connected marketing
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