Darrell Snow Atg Insight 2008

Slide 1: Lessons from the Frontier of Customer Experience Innovation DARRELL SNOW SVP of Technology & ATG Practice Leader - Blast Radius

Slide 2: Blast Radius at a Glance… SAN FRANSISCO VANCOUVER TORONTO NEW YORK LONDON AMSTERDAM Founded in 1996 350+ Employees WPP Family

Slide 3: What Does Blast Radius Do?  We create and deliver innovative and interactive experiences that: Engage customers Inform customers Make brands relevant Drive quantifiable business results

Slide 4: Why is this important?  Traditional marketing strategies are losing their effectiveness: Disruptive technologies Empowered customers The “connected” customer Advertising as we know it is dead

Slide 5: The founding rules of our business  The customer comes first  A communication must elicit a response you can measure  Innovation is the key to solving client problems Lester Wunderman 1967

Slide 6: Market Reality 700 new brands introduced every business day…on top of the 2M+ that exist today

Slide 7: Market Reality Products are increasingly undifferentiated

Slide 8: Market Reality New product breakthroughs are becoming increasingly rare

Slide 9: The Corporate Response Shout louder...

Slide 10: or shout through a new channel

Slide 11: …but customers are not interested  More than 2/3 of customers are bored (passives) or angry (detractors) Source: Bain &Company, The Ultimate Question

Slide 12: We are still not converting… Free trial 5.7% Paid Search Registration data request SEO 5.2% Specific action 4.3% taken 3.9% Join a loyalty program Delayed e-commerce or 4.2% service purchase 6.3% 3.8% E-commerce product or service purchase 4.1% 4% average Store visit 3.6% conversion! Offline conversion 2.8% 3.6% Request more Average information 4.2% Source: Marketing Sherpa, 2006

Slide 13: How broken is it?

Slide 14: Well…

Slide 15: Is this success?  We fail 96% of the time we have a customers attention

Slide 16: We need to apply the same sort of science we do before the click…

Slide 17: After the click as well...

Slide 18: How do we engage customers?

Slide 19: What Is… Branded Customer Experience Innovation

Slide 20: Customer Experience Innovation A real world example Standard Mail-Order Reversible Top CUSTOMER EXPERIENCE INNOVATION

Slide 21: Prescriptions: The Customer Experience  Confusion !?!  60% of patients have taken the wrong medication*  Poor package design can lead to a potentially fatal mistake * Source: poll by Target

Slide 22: Target ClearRx Pharmacy rethought from the bottom up  Design Objectives:  What the drug is  Who it belongs to  How to take it  Bottom Line:  Estimated increase in prescription drug sales: 14% (2006)  $1.4 billion to $1.6 billion* * Data Source: According to research group Chain Store Guide Information Services

Slide 23: Small Change: Big Result $200 CUSTOMER EXPERIENCE INNOVATION Million

Slide 24: unmet shared value needs + cause + exchange engagement

Slide 25: Uncover unmet needs within the entire customer experience

Slide 26: Who decides? Random Rotation Boss decides Internal Politics Committee vote Product launch schedule Largest product owner Shouts loudest

Slide 27: And the results of that? Irrelevant to 90%+ of visitors Wasted use of valuable and High home costly real page bounce estate rate Home page Lost brand ignored building opportunity

Slide 28: Test and learn everywhere Display Ads Mobile Devices Email Full range of experiential optimization… including Flash, Ajax, Widgets and RIAs Source: Offermatica. 2007

Slide 29: Qwest A/B testing Test A Test B Test C Visits 10,918 10,764 12,992 PVs Per Visit 2.15 2.17 2.12 Exit Ratio 16.4% 12.5% 17.3% Est. Package Order Authentication Visit 1,513 1,689 1,852 Drop Off % 86.1% 84.3% 85.7% % of QCH Visits 13.9% 15.7% 14.3% Completed Order Visits 381 387 498 % of QCH Visits 3.49% 3.60% 3.83% Drop Off % (from Est. Pack Order Auth.) 74.8% 77.1% 73.1% Confidence Level <80% ~83% ~90% QCH Revenue (By Visit) $0.88 $0.71 $0.88 Cross-selling Revenue (By Visit) $0.47 $0.29 $0.37 Total Revenue (By Visit) $1.35 $1.00 $1.25 ROI: $1,744,075 Estimated Incremental Revenue by Year

Slide 30: Measure dollars not metrics Value of Desired Behaviors Monthly Impact Annual Impact Registration $855,000 $10,260,000 Financing $513,000 $6,156,000 Find a Store $342,000 $4,104,000 Special Promotions $213,750 $2,565,000 Registrations 25% Lift 50% Lift Monthly Site Visits 1,000,000 1,000,000 Registration Conversion Rate 4.8% 5.7% Monthly Registrations 47,500 57,000 Registration to Sale Conversion 5.0% 5.0% Monthly Number of Sales 2,375 2,850 Average Purchase Amount $450 $450 Monthly Sale Volume $1,068,750 $1,282,500 Average Value of Registration $23 $23 Annual Incremental $2,565,000 $5,130,000 A communication must elicit a response you can measure

Slide 32: Better Parents? Chefs? Gamers? Designers? Socially Aware? Builders? Runners? what are the shared causes of your customers?

Slide 34: Value exchanges need to be win-win including new ways to “pay” such as community involvement

Slide 35: Including those communities outside of your control

Slide 36: Select Clients

Slide 37: How Electronic Arts engages customers

Slide 38: EA is the world's biggest interactive entertainment software company. With titles including: FIFA, Madden Football, NHL Hockey, Tiger Woods PGA, Need for Speed, and NBA Live…

Slide 39: Case Study: NBA Live 08

Slide 40: NBA Live 08 Challenge  Needed to generate more engagement around its latest release that would outlast the dip in post-launch interest.

Slide 41: NBA Live 08 Solution  Inject an exciting component into the web experience that will resonate with fans and keep them engaged longer.  NBA Jersey Creator

Slide 42: NBA Jersey Creator  An invitation to fans to create custom jerseys for their favorite teams  Contest gallery showcased customers’ best submissions

Slide 43: NBA Jersey Creator  The winning jersey will be available for NBA 09 as downloadable content.

Slide 44: NBA Jersey Creator Results  12 week result was 800% over target  35,000 submissions – 35,000 emails of the highest tier NBA enthusiasts  Post-launch traffic continues to be higher than average, with fans returning to the contest gallery  Value of each contact equated to $150 over 18 months  Cost per contact: $2.85

Slide 45: NBA Jersey Creator Conclusions  Leveraged product core to strengthen connection with customers  Tapped into the shared cause of people’s passion for their team  EA created a longer period of interaction that engaged customers at a deeper level

Slide 46: JORDAN PLAYER LEGEND One of the m os t re cognize d bra nds on the pla ne t

Slide 47: Jordan Challenge  Create a premium experience to sell limited edition Jordan footwear and apparel that drive sales while maintaining a level of exclusivity.  Service needs and extend the experience beyond the product  Recognize loyalty and advocacy with customer empowerment

Slide 48: Solution: Jordan Flight Club  Create a members-only commerce site to reward Jordan Brand’s most loyal customers with access to exclusive products.

Slide 49: Jordan Flight Club Solution customer empowerment - customer-driven growth Pre m ium products . Pre m ium cus tom e r. Pre m ium e xpe rie nce . De m a nd for a ne w Bra nd e xpe rie nce tha t is prope lle d by the com m unity

Slide 50: Jordan Flight Club Results  The Flight Club became a rapidly growing social network with over 40,000 members in the first 45 days.  Strong revenue results support many more upcoming releases through this exclusive channel.  Secondary Flight Club passes sold on eBay and Craigslist

Slide 51: Jordan Challenge  Establish an authentic position for Jordan in the training marketplace  Engage the training customer to build brand advocates and evangelists to carry the message  Leverage the ethos of the brand

Slide 52: Solution: Jordan Breakfast Club

Slide 53: Jordan Breakfast Club Approach  Identify and service unmet needs of this customer  Establish a platform for a continuing dialogue with this customer  Leverage advocates to expand the reach of the message

Slide 54: Service Beyond Product Peers rate strengths and weaknesses Set your goals and assess yourself Invite your friends Customize a program to address weaknesses Output your program

Slide 55: Jordan Breakfast Club Results  20,000 engaged young athlete influencers  Tens of thousands of additional views of content on Youtube  Expansion to a 10-city summer tour reaches thousands more at day long training camps  Winner of a 2007 Forrester Groundswell Award in the Supporting Category

Slide 57: ROXY.COM Challenge  Roxy is a leading girls’ surf wear manufacturer  Wanted a fully re-designed website to accommodate e- commerce  Preserve the brand’s equity  Support multiple seasonal campaigns  Unbelievably tight timeframe

Slide 58: ROXY.COM Solution  Multi-tiered engagement strategy:  Anchored the site’s visual language to the style of online communities inhabited by their customers  Imaginatively utilizing existing rich Roxy content assets  Providing a social-shopping component so users could share  Save and review products  Offer multiple and intuitive ways to browse and buy

Slide 59: ROXY.COM Results  Immediate and sustained 120% increase in North American traffic  Overwhelmingly enthusiastic customer response  Established a powerful, autonomous e-commerce platform that would form the core of their interactive sales and branding efforts

Slide 60: PRODUCT REVIEWS Allow customers to rate products and provide valuable feedback to others

Slide 61: SOCIAL SHOPPING Shop with your friends to get their advice

Slide 62: LOOK BOOK Virtual Dressing Room

Slide 63: Roxy BLOG Content aimed at giving customers an inside perspective on Roxy

Slide 64: nau

Slide 65: nau Challenge  Create a premium disruptive experience that reflects the brand and product values  Single view of the customer across all platforms  Enable marketing through community and philanthropy

Slide 66: The Brand and Technology Landscape

Slide 67: Revolutionizing the Shopping Experience Rich eCommerce Interface In Store Kiosk Seamless Store Integration

Slide 68: * early store design

Slide 69: Design Implementations * nau store design

Slide 70: Rich Experience Interface

Slide 71: In Store Touch Screen Kiosks In-store kiosk

Slide 73: DirecTV Develop Insight for Customer Experience Design 

Slide 77: Virgin Challenge  Virgin required a portal to the vast network of products and services  Not generating enough traffic through to each of the network sites  Virgin brand not truly captured Confidential and Proprietary © 2007 Blast Radius Inc.

Slide 78: Solution  An experience which boasted a new ‘lensing’ technology which not only facilitated a uniquely entertaining viewing experience for the user but also reinforced Virgin’s brand values.  Lensing allowed the customers to quite literally view Virgin differently through different lenses or “Virgin Views” Confidential and Proprietary © 2007 Blast Radius Inc.

Slide 82: Conclusion  Customer Experience Innovation  Has a huge impact for a modest investment  Builds customer engagement and loyalty  Requires a shift in thinking to optimization  Must leverage data to and customer insight  Measure dollars not metrics

Slide 83: Q&A

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