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The Elusive Paradigm of Loyalty - 042011

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WANT COMMITTED RELATIONSHIPS? Or, is your brand really a one night stand? …

WANT COMMITTED RELATIONSHIPS? Or, is your brand really a one night stand?

IT’S NOT ABOUT YOU. IT’S ABOUT THEM.

Published in: Business, News & Politics

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  • 1. THE ELUSIVE PARADIGM OF LOYALTYCUSTOMER ENGAGEMENT IN A CONNECTED WORLDTIM SUTHERCHIEF MARKETING OFFICER, ACXIOMFTMA APRIL 2011 ®
  • 2. TODAY’S QUESTIONS1. What capabilities distinguish high performance marketing organizations? What is the upside opportunity?2. How do high performing marketers prioritize in a world of overwhelming choice?3. What are the high payback tactics?
  • 3. THE END IS NEAR…For marketing as we knew itConsumers are bossOne night stands ≠ committed relationshipsYelling louder ≠ customer engagementMedia mix reflects yesterday’s consumption 3
  • 4. WHAT CAPABILITIES DISTINGUISHHIGH PERFOMANCE MARKETING? 15-30% improvement opportunity for most companies 4
  • 5. TAKING FLIGHT…The era of customer engagement driven marketing Duh…it’s about customers Institutional memory Differentiated value of customers The need for a private exchange 5
  • 6. WANT COMMITTED RELATIONSHIPS?Or is your brand really a one night stand? IT’S NOT ABOUT YOU. IT’S ABOUT THEM. 6
  • 7. THE MARKETING DEMOCRACYI’m in charge here…and you’re not REMEMBER EVERY INTERACTION & LEARN
  • 8. THE MASS MARKET IS AN ILLUSIONIs it really acceptable to annoy 95% of the population to get through to the 5%? NARROWCAST, NOT BROADCAST 8
  • 9. THE NEED FOR A PRIVATE EXCHANGEYour audience, addressable anywhere, reached with certainty YOUR MONEY. YOUR INSIGHT. 9
  • 10. HOW DO I PRIORITIZE IN A WORLD OF UNLIMITED CHOICE? Maximize value from existing customers Engage with customers “there” Improve “intent harvest” from prospective buyers Generate demand more insightfully Substitute media & channel based upon actual customer preference & behavior 10
  • 11. UH, NOT EXACTLY… 11
  • 12. WHAT ARE HIGH PAYBACK TACTICS?Customer lifecycle marketing Focus on trigger-driven messaging along the life cycle • 15x profit v. broadcast programs • Pull customers (v. push products) – 3x revenue/email (retailer) • Dynamic product offers - increased revenue 46% in stores & 17% online (tech • Everything as a service Integrate across media & channels • Integrate mobile/email – 7.5x website spend retailer • Integrate outbound/website– 2x bookings hotelier Solicit customer input/action • Preference center – HP Technology at Work • Solicit ratings/reviews – conversations are crucial • Design content to be viral – 2-4x link performance Fundamentals matter • Customer information decays 2%/month • $144 million of commercial email won’t reach the inbox in 2014
  • 13. WHAT ARE HIGH PAYBACK TACTICS?Time & location-based marketing Customer lifecycle marketing goes wireless • SMS for time sensitive messages:18x return (retailer) • Inventory availability drives “on premise” revenue: 5% conversion (casino) • Solicit customer input/action: experiences, ratings, reviews, check-ins, surveys • Near-field communications/mobile commerce Reach new buyers • Loyalty enrollment via SMS: 280,000 new members, (retailer) • Mobile advertising driven by your database • Shopping apps, price comparison & QR codes play defense…and offense
  • 14. WHAT ARE HIGH PAYBACK TACTICS?Harvest Intent Improve search visibility • SEO - 80% of click throughs are organic • Customize/monitor the landing experience Drive conversion through personalization • Dynamic personalization to “optimize the real estate”: 9x return (insurer) • Algorithm-based recommendations: $100 million revenue uplift (telco) Effectively re-market • Retargeting via display or email – 12x return (e-Commerce site) • Confirm chat with e-mail
  • 15. WHAT ARE HIGH PAYBACK TACTICS?Smarter demand generation Find your high value audience. Filter out the rest. • 80% of online advertising fails to reach its intended target. • Collaborative Targeting: 11x return (retailer) Make brand advertising actionable & accountable • Interactive Television – coupons, samples, more information • An emerging opportunity in online display. Brand represents just 5% Leverage multidimensional insight • Combine purchase, response, value & risk scores: $7600 deposit/household increase for contacted households. Retail Bank • Combine seasonality, customer potential, price elasticity, halo effects, social influence: 3x room nights (Casino) • Connected primary research: 5.5x improvement (telco - “cord/cable cutters”)
  • 16. WHAT ARE HIGH PAYBACK TACTICS?Media & channel substitution Arbitrage duplicative contacts based on preferences • $112 billion in US advertising wasted per year. What Sticks • Email & print:4x revenue/email (leading publisher) Substitute based on preferences • From mass to targeted:10% revenue increase (multi-format retailer) • From call center to self serve: $4.5 million expense savings/yr (technology firm) • From print to digital: 22% conversion in 45 days (airline) • From paid search to organic search & display: 52% better CPA (Google) • From paid to earned/curated
  • 17. THE RENAISSANCE“…in Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed, but they produced Michelangelo, Leonardo da Vinci, and the Renaissance.In Switzerland they had brotherly love - they had 500 years of democracy and peace, and what did that produce? The cuckoo clock.” - Harry Lime, The Third Man
  • 18. OUR RENAISSANCE Key takeaways for a connected worldNot all customers are created equal. Engage/invest accordingly.Prioritize programs by impact upon customer lifetime value.Target your multi-dimensionally defined audience . Otherdefinitions waste money.Leverage a safe haven to “anonymize & match” proprietarycustomer data. Demand key partners participate.Remember every interaction & learn. Personalize, coordinate,test & measurePlay the data as it lies. Be “in market” in a career relevanttimeframe.Harvest “easy money” while pursuing “big money”4 interrelated capabilities drive high performance. Invest in them 18
  • 19. FOR MORE INFORMATION 19
  • 20. THANK YOUacxiom.com/FaceBook acxiom.com/LinkedIn acxiom.com/Twitter Discover more at acxiom.com