ENTERPRISE CUSTOMER INSIGHT…CASE STUDIES IN DRIVING VALUETim Suther, Chief Marketing & Strategy OfficerJanuary 28, 2013@ti...
The defining issue for all marketers…how to engage empowered consumers                                         2
$112 billion in wasted advertising a year in the US                                    Rex Briggs & Greg Stuart, What Stic...
RELICS OF A BYGONE ERA       Broadcasting when narrowcasting was needed         “Reliance on the 18-49 demographic Is haza...
Insanity: doing the same thing over and over again           and expecting different results                              ...
DATA IS NOW ON PAR WITH LABOR & CAPITAL AS A RAW MATERIAL IN CREATING VALUESources: MIT, McKinsey, Acxiom, BMO            ...
BIG OPPORTUNITY #1EXTEND THE REACH OF YOUR INSIGHT      Focus on the “intersection of insights”     The basis for hyper-re...
TV AD PLACEMENT ANALYSIS     MASS BUY v OPTIMIZED BUY                         NCAA Tournament Actual vs. Optimized Ad Plac...
EXAMPLE IN OPTIMIZING POTENTIALPROBLEM> Retailer sought to understand category and customer potential (not just  what it w...
BIG OPPORTUNITY #2DIFFERENTIATED CUSTOMER VALUE                                10
CUSTOMER VALUE VARIES GREATLY                            + 500%   Contribution to   Overall Profit                        ...
EXAMPLE IN ENHANCING CUSTOMER VALUEPROBLEM> Global financial service firm with 21% higher attrition than competitionAPPROA...
EXAMPLE IN INCREASING MARGINS/TICKET SIZEPROBLEM> Worldwide hospitality firm seeking to increase purchase rate & priceAPPR...
BIG OPPORTUNITY #3     EXTEND BREADTH OF INSIGHTSAnalytics data should be multi-dimensionalUnlock data from media and chan...
EXAMPLE IN MULTIDIMENSIONAL INSIGHTPROBLEM> National retailer wanted to efficiently message customers of a  competitor whi...
EXAMPLE IN SILO BUSTINGPROBLEM> Global consumer products company with information trapped in  disparate channel systems, r...
BIG OPPORTUNITY #4DATA TO CHANGE LIVES…AND BRAND EXPERIENCEDigital health feedback systems & coordinated health informatio...
Focus on the intersection of insights.     Know and act upon customer value.                Create & feedenterprise multid...
THANK YOU.    QUESTIONS?acxiom.com/FaceBook                     acxiom.com/LinkedIn   acxiom.com/Twitter   Discover more a...
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CMO Exchange: "Enterprise Customer Insight"- Tim Suther, Acxiom

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Enterprise Customer Insight: Case Studies in Driving Value

Presented at CMO Exchange on January 28, 2013.

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Transcript of "CMO Exchange: "Enterprise Customer Insight"- Tim Suther, Acxiom"

  1. 1. ENTERPRISE CUSTOMER INSIGHT…CASE STUDIES IN DRIVING VALUETim Suther, Chief Marketing & Strategy OfficerJanuary 28, 2013@timsuther© 2012 Acxiom Corporation. All Rights Reserved.
  2. 2. The defining issue for all marketers…how to engage empowered consumers 2
  3. 3. $112 billion in wasted advertising a year in the US Rex Briggs & Greg Stuart, What Sticks 3
  4. 4. RELICS OF A BYGONE ERA Broadcasting when narrowcasting was needed “Reliance on the 18-49 demographic Is hazardous to all media and marketers” David Poltrock, CBS Channels and products prioritized over customers 80% of CEOs believe they provide a superior customer experience. Just 8% of customers agree BainData has not been integral to marketing decision-making Marketers depend on data for just 11% of all customer-related decisions Corporate Executive Board 4
  5. 5. Insanity: doing the same thing over and over again and expecting different results 5
  6. 6. DATA IS NOW ON PAR WITH LABOR & CAPITAL AS A RAW MATERIAL IN CREATING VALUESources: MIT, McKinsey, Acxiom, BMO 6
  7. 7. BIG OPPORTUNITY #1EXTEND THE REACH OF YOUR INSIGHT Focus on the “intersection of insights” The basis for hyper-relevant experiences 7
  8. 8. TV AD PLACEMENT ANALYSIS MASS BUY v OPTIMIZED BUY NCAA Tournament Actual vs. Optimized Ad Placement Time Period: March 13th - April 3rd4540353025201510 5 0 Buick LaCrosse 2012 NCAA TV Buy Actual Buy PD Proposed Media Buy Optimized Buy Cost to reach 1000 buyers Past NCAA Buy $169.84 92% improvement Optimized Buy $14.39 in reaching buyers 8
  9. 9. EXAMPLE IN OPTIMIZING POTENTIALPROBLEM> Retailer sought to understand category and customer potential (not just what it was presently selling)APPROACH> Calculated category potential (combined retailers own data and third party spend and interest data)RESULTS> Identified “best” customers that purchased more from competition> Incremental 5% revenue opportunity identified. 9
  10. 10. BIG OPPORTUNITY #2DIFFERENTIATED CUSTOMER VALUE 10
  11. 11. CUSTOMER VALUE VARIES GREATLY + 500% Contribution to Overall Profit 0 Customer Value Segment Top 30% Next 50% Bottom 20% Contribution to Overall Profit - 400%
  12. 12. EXAMPLE IN ENHANCING CUSTOMER VALUEPROBLEM> Global financial service firm with 21% higher attrition than competitionAPPROACH> Calculated household-level customer value> Created propensities for attrition, best product to sell, and life-time value.> Focused on enhancing customer value and margin enhancement, not just campaign ROIRESULTS> Increased net profits $186 million over 3 years> Decreased attrition by 24.3% 12
  13. 13. EXAMPLE IN INCREASING MARGINS/TICKET SIZEPROBLEM> Worldwide hospitality firm seeking to increase purchase rate & priceAPPROACH> Calculated propensities for visit, purchase and ticket size.> Prioritized marketing investment by these propensities> Applied to a variety of outbound campaigns across media.RESULTS> Increased volume per guest ~50% within 6 months 13
  14. 14. BIG OPPORTUNITY #3 EXTEND BREADTH OF INSIGHTSAnalytics data should be multi-dimensionalUnlock data from media and channel silos 14
  15. 15. EXAMPLE IN MULTIDIMENSIONAL INSIGHTPROBLEM> National retailer wanted to efficiently message customers of a competitor which was experiencing market difficultiesAPPROACH> Created “conquest” shopping propensities based on existing customer behavior and affinities to various brands/retailers.> Incorporated third party spending, syndicated research, demographic and retailer’s first party data.> Deployed for multiple back to school and holiday seasonal campaignsRESULTS> Up to 8.7x lift in response> 50% lift in average sale> Up to 250% ROI 15
  16. 16. EXAMPLE IN SILO BUSTINGPROBLEM> Global consumer products company with information trapped in disparate channel systems, resulting in inaccurate and incomplete view of customers and prospectsAPPROACH> Integrated customer and prospect information from all channels, including mail, email, digital and mobile advertising> Created and deployed an unique customer identifierRESULTS> Annual contribution margin increase of $470 million.> Annual cost-savings $18.6 million. 16
  17. 17. BIG OPPORTUNITY #4DATA TO CHANGE LIVES…AND BRAND EXPERIENCEDigital health feedback systems & coordinated health informationControl the outbreak/spread of diseaseEnhanced safety – detect criminal activity & locate criminalsFind love – 1 in 6 marriages start onlineRally around causes important to us – democracy, sustainability, etcDigital concierge tunes the world to our preferencesAdaptive education 17
  18. 18. Focus on the intersection of insights. Know and act upon customer value. Create & feedenterprise multidimensional customer insight.Use data to changes lives and brand experience. 18
  19. 19. THANK YOU. QUESTIONS?acxiom.com/FaceBook acxiom.com/LinkedIn acxiom.com/Twitter Discover more at acxiom.com © 2011 Acxiom Corporation. All Rights Reserved.

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