The slides provide a quick overview of the Digital Marketing / Personalization of Customer Experience trend. The slides provide summary information, a list of trends to watch and links to additional resources.

1. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Digital Marketing and Personalization of CX
IBM HorizonWatch 2016 Trend Brief – External Version
Bill Chamberlin, Principal Client Research Analyst / HorizonWatch Community Leader
Priyanka, Associate Product Manager, Digital Business and Company/Client Assets
May 15, 2016

2. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
2 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)15May2016
 Purpose: The slides provide a quick overview of the Digital Marketing / Personalization
of Customer Experience trend. The slides provide summary information, a list of trends
to watch and links to additional resources
 How To Use This Report: Use these slides as a learning document and a springboard
to further research and reading on this trend. You may want to view the slides in
slideshow mode so you can easily follow the links
 Available on Slideshare: The latest version of this file (and other HorizonWatch Trend
Reports for 2016) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to be a
statement of direction by IBM nor is IBM committing to any particular technology or
solution.
About this HorizonWatch Emerging Trend Brief

3. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
About the trend towards personalization of the customer experience
3
Definition:
Personalization of the customer experience
refers to a series of advertising and marketing
strategies that rely on the use of an integrated
set of digital tools, technologies, and processes
to deliver personalized, contextually correct
messages and content for individual
consumers, with the goal of driving greater
engagement and retention.
Enabling Technologies:
 Cloud, Mobility, IoT, Location services
 Algorithmic targeting and messaging
 Predictive and prescriptive data analytics
 Data management platforms
 Content/experience management
 Ecommerce management, CRM
15May2016
“IDC predicts that more 50% of
developer teams – up from less than 1%
today - will embed cognitive services
into their apps by 2018 to leverage their
data pipelines and to improve customer
personalization.” IDC
“There is broad recognition that
empowered customers are changing the
fundamentals of the market. In response,
most companies are executing strategies
that place the customer at the center of
the universe.” Forrester The 2016 Top 10 Critical
Success Factors To Determine Who Wins And Who Fails In The
Age Of The Customer
Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)

4. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Digital Marketing & Personalization – 5 trends to watch in 2016
1. Data-driven marketing strategy. Enterprises turn to deep
transactional data mining to identify latent and adjacent
market segments, product positioning opportunities, and
competitive threats.
2. Customer data grows in importance. CMOs seek tech
solutions and third party data sources to capture individual
customer data including: online behavior, buying patterns,
preferences, choices, etc.
3. Personalization technologies emerge. Watch for news
on topics like customer and role journey mapping, social
sentiment analysis, Net Promoter Score, propensity
modelling, product recommendation engines, and
behavioral scoring.
4. Personalization drives the data economy. Delivering
personalized, contextually relevant customer experiences
drives the growth of the data economy, particularly as
enterprises aim to unlock value from unstructured social
media sources.
5. Mobile & social. Smartphones and social networks
become consumer’s most trusted information source.
Marketers will need to capitalize on the combination of
mobile & social as a “go-to” platform of choice to engage in
consumer micro-moments.
4
“Forrester’s research articulates that
personalization — one of the top success
factors for customer-obsessed businesses in
2016 —is a critical pillar of customer
experience and that organizations are starting
to invest not only in personalization to stay
competitive but also in individualized
experiences that are enabled by
personalization..“ Fiona Adler, Forrester Analyst
“Personalization strategies and tactics ranging
from slightly customized emails that include a
recipient’s name to fully contextual and
customized landing pages are key fronts in
the battle for customer experience
differentiation..” Gartner
Momchil Kyurkchiev via VentureBeat:
Marketers: Personalization will become a
science this year
15May2016 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)

5. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Digital Marketing & Personalization – Challenges
 Oversaturation. Oversaturation of marketing causes
individuals to ignore messaging. The average person exposed
to thousands of advertisements every day. As a result, it
becomes easy to ignore the messaging or marketing in an ad,
especially if it does not relate to the viewer on personal level.
Ad blocking software is a huge risk to monetization models.
 Forced messaging. Personalized marketing is rejected if it
feels that is unnatural or too blatant. Customers need to feel
comfortable with the context of an advertisement to focus on
the content of it. When targeted marketing seems too forced or
mechanic it becomes unsettling and drives the viewer to ignore
the purpose of the ad.
 Balancing privacy and personalization. An individual’s
desire for privacy and the protection of personal information
creates barriers to personalization. Achieving true
personalization requires firms to retain detailed information on
individuals.
 Declining attention spans. Declining attention spans require
innovative personalization strategies. As individuals adapt to
simultaneous device usage, attention spans decrease. As this
trend continues, digital marketers will be forced to improve
message efficiency and effectiveness or face losing share of
mind to other digitally-delivered content.
5
Adweek: Personalization is a Big
Challenge for Digital Marketers
(Infographic)
15May2016
Forrester: Why Your Organization Is
Approaching Personalization Wrong
VentureBeat: Consumers want privacy …
yet demand personalization
Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)

6. © 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected links to additional resources
• Adweek: Personalization is a Big Challenge for Digital Marketers
• Ask Your Target Market (AYTM): Online Privacy Survey: Internet Users
Don’t Want Personal Information Shared
• Decisionaire: Personalized Content and Online Assessments as
Storytelling
• Everengage: Personalization 3.0 – A Digital Marketing Imperative
• Forbes: Balancing Privacy And Personalization: The Challenge Of
Marketing For Micro-Moments
• Forrester: Why Your Organization Is Approaching Personalization Wrong
• IBM: Customer Analytics
• Inboundnow: 10 Online Marketing Trends & Predictions for 2015
• Kim Ann King: Digital Marketing Best Practices: The Complete Guide to
B2B Marketing
• SAS: Digital marketing, predictive analytics, and making personalization
delicious
• SJ Insights: New Research Sheds Light on Daily Ad Exposures
• VentureBeat: Consumers want privacy … yet demand personalization
• VentureBeat: Study finds marketers are prioritizing personalization… but
are further behind than they realize
• WebTrends: The Path to Personalization: A Framework for Digital
Marketing Advancement
6
“The secret to smarter segmentation
and real personalization lies in
understanding buyer behavior across
channels and devices, and surfacing
insights on each customer’s true
affinity and preferences.” Kahuna
“Three out of four consumers want
retailers to gather and use personal
data to improve the shopping
experience.” Monetate
“In all our combined research on
personalization — almost every age
of consumer either wants a more
relevant experience or is happier
when personalized delivery
increases the value they get from
the brands they interact with.” -
VentureBeat Insight
15May2016 Digital Marketing and Personalization of CX: HorizonWatch 2016 Emerging Trend Brief (External Version)
IBM: Customer Analytics