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Acxiom High Performance Data Is The New Black

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Data is the New Black: Using Customer Insight to drive a superior return on marketing

Data is the New Black: Using Customer Insight to drive a superior return on marketing

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  • 1. Data…the New Black  Tim Suther SVP, Multichannel Marketing Services Tim.Suther@acxiom.com 001-630-944-0416 www.acxiom.com
  • 2. Living next to the train tracks $112 billion of advertising is wasted each year in the US alone $4 trillion excess brand valuation 22% of Americans feel advertising is credible…compared to 45% for talk shows 42% of consumer media consumption is online 2
  • 3. :60 spots to reach 80% of 18‐49 year olds 3 117 3
  • 4. Was Called QUARTERBACK before the recession 4
  • 5. Data is the new black • Learn from every interaction • Interactions are interrelated… Connect the dots • Expand your field of vision • Have an optimization mindset The nerds of marketing are now cool 5
  • 6. The differentiated value of customers 30% of customers deliver the majority of profits 50% Add nothing 20% Cost companies money SAS 6
  • 7. Like a box of chocolates… • With most media, you never know who you’re gonna get. • Knowing who determines: – How much to invest…if anything – What to say…without guessing • Media buys are rarely linked to full customer value. • The typical marketing problem: – Over-investment in low value relationships – Under-investment in high value relationships 7
  • 8. The Concentration Multiplier Concentrating on the most valuable “who’s” 1. Identify customer value 2. Invest proportionally 3. Find/recognize & engage accordingly 4. Measure acquired value 8
  • 9. A look at “who” at world class brands Cadillac American Express UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Hershey Allstate UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments 9 Source: Acxiom comScore (July 2009)
  • 10. …and at leading publishers MSN Yahoo 96 MM UV’s 148 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments eBay AOL 56 MM UV’s 70 MM UV’s UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments 10 Source: Acxiom comScore (July 2009)
  • 11. Mismatches in “who” create friction & waste Vast differences in publisher & advertiser indices Advertising NPS: - 21% 11
  • 12. Concentrate ad spend to drive value Typical payoff of 3-5x revenue/ad dollar 12
  • 13. Make Behavioral and Attitudinal Insights Addressable to drive the  effectiveness of targeting at individual level 13
  • 14. Concentrator Multiplier ROI illustration Concentration Traditional Variance Campaign Cost Impression Volume 10,000,000 10,000,000 Cost per Thousand $ 5.00 $ 2.50 Total Campaign Cost $ 50,000 $ 25,000 $ (25,000) Revenue Generated Revenue/conversion $ 20 $ 10 Clickthrough Rate 0.15% 0.10% Latent/viewthrough revenue 50% 50% Revenue from clickthrough $ 300,000 $ 100,000 Total Revenue $ 450,000 $ 150,000 $ 300,000 Contribution From clickthrough $ 250,000 $ 75,000 Total Contribution $ 400,000 $ 125,000 $ 275,000 Revenue per Ad Dollar From clickthrough $ 6.00 $ 4.00 Total Revenue/Ad Dollar $ 9.00 $ 6.00 Premise Concentrating impressions on high value visitors… >Enables higher financial return (because of focus on more valuable visitors) >Enables higher CTRs (because creative can be versioned) Even if visitors don't click, advertisers will generate significant online/offline lift (halo/viewthrough effect) 14
  • 15. Metrics matter • Advertisers over weight acquisition metrics – CPM, CPA, GRP, CTR, etc. – This creates “leaky buckets,” “zombies,” and the “quiet types” • Advertisers under weight “acquired value” metrics – Likely longevity of relationship – Likely upsell/cross-sell potential – Likely influence – Likely service costs • Advertisers should measure customer value per ad dollar 15
  • 16. Remember every interaction…and learn. • No institutional memory? – Funny in movies – Unprofitable to you • Seek to understand & predict – Explicit & inferred preferences – Wants & needs – Motivations & attitudes – Social influence circle – Cross-channel behavior – “Outside” behavior 16
  • 17. Data…the building block of insight Most Predictive Power Enables Answers to  Ratio Key Questions: In Proprietary online and offline shopping data & transaction information, as  Proprietary online and offline shopping data & transaction information, as  Market well as, individual consumer triggers such as life events When Known Purchase Behaviors – book travel online, high tech products, online  Known Purchase Behaviors – 268:1 How Buying Activity power user, auto – make/year/model, fashion apparel, channel preference power user, auto – 196:1 Propensities Likelihood to make a purchase, attitudes, preferences and patterns Likelihood to make a purchase, attitudes, preferences and patterns Describe/Predict What 55:1 Self‐reported hobbies, interests and activities Self‐ Lifestyles Home ownership, length of residence, home value, purchase  Property Data amount and date, likely equity Household life‐stage segmentation, socio‐economic, and  Household life‐stage segmentation, socio‐ 7:1 Personicx™ Segmentation household characteristics Who Age, income, marital status, children, education, net  Baseline Demographic and Socio‐economic Data worth, occupation, etc. Current contact information for over 131 million  Name, postal address, email and phone households comprised of 199 million individuals Where 17
  • 18. The value of connecting the dots Live examples from Acxiom portfolio 4x “orders per thousand” $200M revenue / $4.5M – Connecting print & digital OpEx savings 3x applications; 5x online – Connecting call center & digital revenue; same head count $100M/yr EBIT impact – Connecting call center & digital – Multichannel connection 2x online bookings 9-figure/yr revenue impact – Connecting outbound & website – Multichannel connection 7.5x website spend – Connecting mobile & email 17x response – Connecting TV & offline 18
  • 19. 10 Easy Money ideas The Idea How & Why The Benefit Test Collaborative Targeting & Relevance Concentrate ad impressions on visitors 3-5X revenue / ad dollar at other clients with Internet properties. Then follow up most likely to be valuable, loyal, etc. Existing customers respond 17X to with television prospects to digital TV ads Recognize & connect with social Use existing email addresses to Match against 500M socially active influencers recognize socially active customers & individuals (~60-70% of any email list) prospects Test mobile as a lifecycle messaging tool Avg. mobile purchaser has higher income Integrated with Impact. Likely halo effect & spends 2X as a Web-only buyer Examine call center patterns to identify Identify high-volume drivers of calls – $2M / year cost displacement & $200M / content for future emails requests for info, small cross sales, etc. yr influenced revenue at another client Connect Web analytics with outbound Following the digital footprints to 2X website conversions achieved at messaging recalibrate outbound marketing another client If chat available on their site, offer to send Email a branded transcript back to site This is the highest performing email a branded transcript of the chat visitors. Include buttons to “buy” or to application at another client “subscribe” to other services Do an organic search audit Identify opportunities to improve organic 72% of GOOG CTR is organic. A proper visibility, & possibly reduce paid expense audit enables more free traffic If receiving third-party leads, implement Build / implement predictive models to The bottom three deciles can likely be lead scoring screen out low value leads provided eliminated without impacting conversions Consider a test with ACXM CoReg services and / or e-list rental Improve the site experience Test content with Impact Site. Personalized site experiences drive Implement View tags to measure 4–15X ROI conversion funnel progress by lifestage Retarget site visitors that do not convert 53% of shopping carts abandon. Remarketing generates $4–10 revenue Remarket based on specific site per ad dollar at other clients behavior / lifestage
  • 20. That was easy… • Identify customer value • Invest proportionally • Find/recognize & engage accordingly • Measure acquired value • Institutional memory • Take the Easy Money 20
  • 21. Thank you.  Questions? The global interactive marketing services company www.acxiom.com Would like all our links here 21