Operating in a Platform World 

Michelle Killebrew | Digiday Platform Summit | August 2014

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Michelle Killebrew@shellkillebrew

Program Director, Strategy IBM Social Business

Contributing WriterClickZ.com

Digital Marketing | Marketing Technologist | Demand Generation

The Rise of theEmpoweredCustomer

#1

Social is now the top use of the internet. Americans spend an average of 37 minutes daily on social media, a higher time-

spend than any other major Internet activity, including email.

@shellkillebrew

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The Need for People-Centric Engagement

of CEOs in outperforming organizations make customer collaboration a top priority

of smartphone users check an app as soon as they wake up

of individuals are willing to exchange personal information for a personalized offering

of CEOs intend to operate their organization in a more open manner in the next 3-5 years

84%of millennials and 70% of boomers say social and user-generated content has an influence on what they buy

80%

84%

56%

72%

Sources: 84%, 70%, 84%, 2/3, 80%: IBM 2013 Annual Report72%, 56%: IBM Institute for Business Value, Reinventing the rules of engagement: CEO insights from the Global C-suite Study, 2014

@shellkillebrew

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Digital technologies are playing a large part in the emergence of engagement strategies as they foster relationships between organizations and their customers

of MOBILE users keep their devices within arm’s reach

90%

of of web traffic will be VIDEO by 2014

90%of businesses today are using web ANALYTICS

84%

of purchasers get advice from their SOCIAL NETWORK

81%

@shellkillebrew

66

Customer experience is driving shareholder value

Source: The Watermark Consulting 2013 Customer Experience ROI Study– April 2, 2013

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Customers are demanding engagement, NOT marketing

Customers demand engagement versus marketing – IWATA CMO POV points

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.

2014Timeless 2012

Co-create with customers, employees, and partners.

Innovate and scale personally relevant and rewarding experiences.

Know each customer in context.

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.

@shellkillebrew

Customer Interactions• In 2012, 57% of CEOs expected digital

channels to become one of their company's key means of interacting with customers within the next five years. In 2013, 52% of CxOs say they are already there.

• CxOs say this trend will continue: 88% say they will interact digitally with customers even more in the next three to five years.

@shellkillebrew

@shellkillebrew

EmpoweringPutting the customer in charge

CompellingMatching and exceeding expectations

ConsistentRegardless of your device

RelevantKnows who you are and what you’re doing

To Engage Customers Today, Digital Experiences Must Be…

Higher Win Rates

60%more online sales conversion

85%conversion rate using web tools

Shorter Time to Market and Delivery

84%faster time to find experts

61% faster service delivery to new customers

Lower Operational Costs

62%customers didn't need to call

2xincrease in self-service transactions

More Satisfied Customers

30%higher rating for web self service vs. help desk

30%increase in referrals

Market Leaders Are Getting Exceptional Engagement & Results

@shellkillebrew

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Personalized Experiences Drive Revenue

Up to 1/3 of all consumer spending is influenced by social interactions.

That’s $940 billion annually!

Let’s look at how some brands are winning with their customer engagement strategies.

Content Marketing

@shellkillebrew

Know your audience and

create stories that will entertain and

engage them.

@shellkillebrew

Crowdsource & Co-create

Include your community in

crowdsourcing innovation

- Jakob Nielsen

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Build Mass Participation

Mobilize your community around a shared interest that ties back to

your product

Employee Advocacy

Include your employees in

expressing and advocating for

your brand.

Tammy Nelson, CMO

@shellkillebrew

Customer Service

Face to face service should be a

hallmark of your brand experience. Empower & train your employees.

@shellkillebrew

Storytelling Allow your audience to

participate in the story. Listen to their

feedback for storyline direction.

@shellkillebrew

@shellkillebrew

Creating Big Buzz Through New Modes Of Storytelling

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Key Insights from Michael Engleman:

No. 1: Storytelling is for Everyone

• Enabling consumers to actively participate in the storytelling is increasingly as important as the story itself.

No. 2: The Blurrier the Lines Between Marketing and Content the Better

No. 3: Thank You for Sharing: The New Rules for Socializing• Share Early

• Share Often

• Share Stuff Worth Sharing

• Share with Influencers

• Listen…storytelling is a two-way street

No. 4: Innovation Isn't a Perk, It's a Requirement

No. 5: None of It Matters Without Authenticity

Michael Engleman is EVP Marketing, Digital & Global Brand Strategy for Syfy & Chiller, both

are divisions of NBCUniversal

1Zuberance. 2Fred Reichheld, HBS Press. 3 Harris Interactive

A company with 100,000 brand advocates can reach 60 million people.1

A 12% increase in brand advocacy generates a two-fold increase in revenue on average.2

72% of adults who had a memorable product or service experience said they took positive action, with 57% communicating their positive experience to others, and 41% recommending that someone make a purchase.3z

Exceptional Experiences Create Brand Advocacy

@shellkillebrew

@shellkillebrew

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Marketing Priorities for the Coming Year (2015)

1. Harnessing Big Data

2. Mobile commerce/mobile advertising

3. Content creation

4. Marketing automation

5. Social commerce/social advertising

6. Marketing attribution

7. Omni-channel execution

8. Globalization of marketing efforts

9. Linking online and offline performanceSource: Building Bridges to the Promised Land, The CMO Club, 2014

Social Ad Spend To

Pass $11 Billion By

2017, almost double last

year’s total of $6.1 billion (Mintel)

Newer ad formats --including native

advertising-- will account for the lion’s share of

growth over the next few years, predicts Mintel.

@shellkillebrew

The Imperatives of People-Centric EngagementTo address all of the disruption and innovation stemming from these technologies, the CEOs anticipate three areas for action.

Embrace Disruption Build Shared Value Dare to Be Open

72%Collaborate closely with

customers

56%Empower individuals, extend collaboration

43%Increase mobile tech

investment

1: The ‘Upwardly Mobile‘ Enterprise: Setting the Strategic Agenda, IBM Institute for Business Value report2 & 3: Reinventing the Rules of Engagement: CEO Insights from the Global C-suite Study