At the recent IBM Smarter Commerce Conference, Brian Fetherstonhaugh, Chairman & CEO of OgilvyOne Worldwide, talked about how smart marketers are not only appreciating the full value of customers, but also learning how to drive it. Brian shared experiences on how the emerging fields of Social CRM and Social Commerce can help companies unlock the full value of customers. Most marketers vastly underestimate the full value that customers bring to their business, and as a result under-invest in their customer relationships. In the digitally empowered world, your customers can be worth far more than it appears on the surface. Look beyond an individual transaction to deliver an experience that maximizes the entire Lifetime Value of a customer relationship. As customers evangelize your brand, their influence creates an advocacy effect that magnifies the value they create for your business. And as the relationship deepens, you can engage them as co-creators of new products and services to create a mutual value exchange through the collaboration effect.

1. What
Are
Your
Customers
Really
Worth?
Brian
Fetherstonhaugh
Chairman
&
CEO
OgilvyOne
Worldwide
©
2012
IBM
Corpora.on

2. Which
Customer
Is
More
Valuable?
Linda:
$33.18
Jennifer:
$25.63
©
2012
IBM
Corpora.on

3. Which
Customer
Is
More
Valuable?
Linda:
Jennifer:
“Brand
switcher”
Low
social
media
influence
Unwilling
to
collaborate
©
2012
IBM
Corpora.on

4. Which
Customer
Is
More
Valuable?
Linda:
Jennifer:
“Brand
switcher”
Repeat
purchaser
Low
social
media
“Mommy
blogger”
influence
with
1,500
followers
Unwilling
to
Willing
to
co-­‐
collaborate
create
with
Brands
©
2012
IBM
Corpora.on

5. Which
Customer
Is
More
Valuable?
Linda:
$
68.83
Jennifer:
$2,036.67
“Brand
switcher”
Repeat
purchaser
Low
social
media
“Mommy
blogger”
influence
with
1,500
followers
Unwilling
to
Willing
to
co-­‐
collaborate
create
with
Brands
©
2012
IBM
Corpora.on

6. Q:
How
do
I
Find
and
Drive
the
Full
Value?
©
2012
IBM
Corpora.on

7. #1:
Think
Total
Customer
Contribu.on
COLLABORATION
ADVOCACY
LIFETIME
TRANSACTION

8. Total
Customer
Contribu.on
Transac.on
Value
$’s
for
specific
purchase
Life.me
Value
Transac.on
x
Frequency
x
Tenure
Advocacy
Influence
on
purchases
of
others
Collabora.on
Willing
to
work
with
Marketer
©
2012
IBM
Corpora.on

9. Which
Customer
Is
More
Valuable?
Linda:
$68.83
Jennifer:
$2,036.67
LT
Transac.ons
2
for
total
$68.83
Advocacy
:
$0
Collabora.on
:
$
0
©
2012
IBM
Corpora.on

10. Which
Customer
Is
More
Valuable?
Linda:
$68.83
Jennifer:
$2,036.67
Life.me
LT
Transac.ons
purchases
:8
for
2
for
total
$68.83
total
$
203.34
Advocacy
:
33
Influenced
Advocacy
:
$0
purchases
totaling
$
833.33
Product/research
Collabora.on
:
$
0
insights
worth
over
$1,000
©
2012
IBM
Corpora.on

11. #1:
Think
Total
Customer
Contribu.on
COLLABORATION
ADVOCACY
LIFETIME
TRANSACTION

12. #2:
Map
the
Customer
Journey
to
Find
the
Value
THE
CUSTOMER
JOURNEY

13. Nestle
Infant
Nutri8on
“I
want
to
do
what’s
best
for
my
baby”

14. Choose
your
‘Persona’
Segments
“Trying
to
find
the
“I
want
my
baby
to
be
“I
want
my
likle
baby
harmony
between
my
OK
and
I
hope
I’ll
be
boy
to
be
happy
&
“My
baby
is
my
life”
professional
and
prepared
for
the
birth”
healthy”
personal
life”
Petra
Müller
Delphine
Leclerc
Gabi
Unger
Petra
Müller
29
years
old
30
years
old
32
years
old
32
years
old
(4
months
pregnant)
(baby
4
months)
(baby
8
months)
(baby
17
months)
Married
Married
–
Lyon,
France
In
a
long-­‐term
rela.onship
Married
Munich,
Germany
Employed,
back
to
work
Berlin,
Germany
Strasbourg,
France
HR
manager
Double
income
Former
teacher
Works
in
PR
at
Parliament
Not
member
SHSH
Member
SHSH
Not
member
SHSH
Member
SHSH
&Blediclub

15. Mapping
Out
Mom’s
Journey

16. Leverage
the
Ecosystem
of
Touchpoints
Social
Search&Blogs
Social
Media
Websites
Store
Friends
&Family
E-­‐Commerce

17. Nestlé
Bebe:
iPhone
App

18. Nestle:
The
Next
Chapter
Direct
to
Consumer
eCommerce

19. Works
for
B2B
also
.
.
.
Search
&
Social
Media
Trigger:
New
branch
office
Professional
Discourse
New
big
ini.a.ve
Experts
Peers
Digital
Lead
Genera8on
.
Vendor
failure
Specialists
Internet
Research
B2B
Journey
Advocate
&
Influence
Peers
Social
Media
Digital
Experts
&
Peers
Social
Media
Implementa8on
&
Training
Purchase
Vendor
Demos
Lead
Nurturing

20. #3:
Unlock
customer
value
CUSTOMER
EXPERIENCE
BEHAVIORAL
ECONOMICS
REWARDS

22. Some
journeys
change
mankind
forever

31. BEHAVIORAL
ECONOMICS

32. Behavioral
Economics
THE
$300
MILLION
BUTTON

33. REWARDS

34. Real.me
Rewards
–
Travel
Marketer
USER
ACTIVITY
MARKETER
BENEFIT
REWARD
LOGIN
VIA
FACEBOOK
PERSONAL
DATA
+20
E-­‐MAIL
PERMISSION
COST
+
SPEED
+130
SHARING
SHORTLISTS
VIA
SOCIAL
EARNED
MEDIA
+50
CONTRIBUTE
REVIEW
USER
GENERATED
CONTENT
+50
BOOKING
CONVERSIONS
+100
SIGNING
UP
FOR
LOYALTY
PLAN
ACQUISITION
+100

35. #4:
Learn
to
read
digital
body
language

36. LOCATION
digital
body
language
SEARCHES
SITES
CONVERSATIONS

37. purchase
intent

38. Search
Is
Done
Early,
and
Used
Strategically
What
is
the
volume
of
searches?
What
exact
vocabulary
do
consumers
use?
What
topics
are
being
searched?
What
share
of
searches
do
you
and
compe.tors
own?

39. Consumer
Intent
Modeling
Selected
findings:
■ The
#1
topic
area
is
Pregnancy
(38%)
■ “Breast
feeding”
is
two
words,
not
one
■ Consumers
use
the
keyword
“Baby”
instead
of
“Infant”

40. Possible
Features
&
Content
 Food
diary
(tracker)
 Growth
curves
 Milk
comparison
 First
.me
Mum
Guide
 Integrated
Feeding
Plan
 Brand
campaign
 Healthy
start
ac.vi.es
Her
Search
Terms
 Baby
rou.ne
handbook
 Baby
finger
food
 Recipe
content
 Finger
food
 Baby
reader
/
translator
 Healthy
family
ea.ng
 eLoyalty
 Healthy
diet
for
toddler
 Mums
panel
 Toddler
picky
eater

42. Using
the
Language
of
our
Audience

44. IBM
Uses
Video
to
Convert
Search
into
Demand
Search
Insights
Content
as
Digital
Bait
Custom
Landing
Experience

45. Results
:
*
Dominate
search
*
High
click-­‐through
*
Engagement
>
Banners

Low
E:R
 “Always
On”

46. #5:
Act
with
disciplined
agility

47. Yaaay!
Wheee!
Wow!

50. CREATING
THE
STAIRWAY
TO
HEAVEN
ADD
TEST
#4
OPTIMIZE
#1,
2,
3
ADD
TEST
#3
• Ambi.on
OPTIMIZE
#1,
2
• Customer
Journey
• Plazorm
Choices
ADD
TEST
#2
OPTIMIZE
#1
START
HERE
PILOT
TEST
#1
TIME
PHASE
1
PHASE
2
PHASE
3
PHASE
4

51. Start
Now…
1. Calculate
Total
Customer
Value
for
one
segment
2. Map
out
the
Customer
Journey
3. Audit
how
well
you
deploy
the
Three
Drivers
4. Post
a
3-­‐minute
video
on
YouTube
5. Create
your
2012-­‐2013
Stairway
to
Heaven

52. WHEREWILL
YOU
LEAD
US?

53. brian.fetherstonhaugh@ogilvy.com
Sellorelse.ogilvy.com