Digital marketers think they’re on the cutting edge of what empowered consumers are doing, but in fact, they can’t see the forest for the trees. While mostly focused on deploying new channels and creating better ROI metrics, most lack a customer centric strategy that creates long term value. Based on new joint Digiday/Acxiom survey results with hundreds of digital marketers, this presentation will reveal the insights from that survey while providing some ideas and strategies that digital marketers can employ to help their organizations extend their brand’s success by leveraging their data assets in this digitally-connected world. Presenter: Tim Suther, CMO, Acxiom @timsuther

1. A CUSTOMER CENTRICITY
PARADOX
State of the Industry Survey
Tim Suther, Acxiom Chief Marketing & Strategy Officer
September 19, 2012
Digiday Brand Conference, September 2012
© 2012 Acxiom Corporation. All Rights Reserved.

2. 2

3. SURVEY RESPONDER PROFILE
A balanced distribution of buy & sell A diverse set of industry marketing
side…& job roles: experience is represented:
Retail 36%
Travel & Entertainment 33%
Advertiser & Media & Communications 32%
Agency
48% 52% Technology 31%
Media, Tech &
Other CPG 31%
Health Care 24%
Automotive 22%
Telecom 20%
Finance / Retail Banking 18%
Insurance 18%
Finance / Credit Cards 15%
28% Marketing & Sales
Restaurant 15%
Finance / Investments 14%
Analysis &
Audience Mgt Education 12%
72%
Government 9%
259 surveyed in August 2012
3

4. CONCERNS & CHALLENGES
Marketers top concerns are customer Marketer top challenges are
centricity, new media & ROI: consistency, integration & inefficiency…but
not privacy:
Understanding customers and 51% 37%
Providing consistent and relevant
engaging them with
6% engagement for customers 7%
personal, relevant experiences
Adopting new media technology 23% Integrating multiple back-end 26%
such as social, mobile and video 17% customer databases 19%
21% Reducing waste and inefficiency 20%
Rationalizing budgets with more
when targeting and serving the
effective ROI metrics 6% 8%
right customers and prospects
Collaborating with direct marketing
3% Coordinating the timing and 10%
to understand what’s working for
cadence of multi-channel
them and how digital can improve 39% 13%
communications and feedback
results
Ensuring privacy and providing
Access to and integrating back-end 1% sufficient notice, choice and 8%
customer databases 37% transparency in gathering and 54%
using data
Most Important Not Important Most Important Not Important
4

5. A CUSTOMER CENTRICITY PARADOX
Most highly self-assess their own Yet, few can measure value at customer
customer-centric capabilities… level:
We have a relentless focus on
building customer insights to
48%
better understand and recognize
high value customer segments
We invest and focuse more on 21%
19%
acquisition than retention
Both direct response and digital
marketers collaborate on timing
14%
and creative to more efficiently
reach customers across all…
79%
We invest and focus more on
14%
retention than acquisition
We're integrating back-end
systems to reduce waste and
5% Have or will have value score for each
inefficiency while coordinating
multichannel campaigns and…
customer
5

6. POOR DATA INTEGRATION ABOUNDS
Most poorly integrate data from online Most poorly recognize customers in
& offline sources real-time
30% 26%
70% 74%
Advanced No/Suboptimal Have channels connected or have a central
repository
No or outbound or social only
6

7. SILOS ARE RAMPANT…
AND IMPEDE CUSTOMER CENTRICITY
How many customer databases need to Biggest barriers to integrated customer-
be accessed to integrate marketing? centric marketing:
10+ databases 9%
7-10 databases 6%
24%
4-6 databases 28%
54%
1-3 databases 33%
22%
We have everything we need
13%
or is already integrated
We don't have a customer Data or Technology
11% Resources
database
Measures & Incentives
7

8. MARKETERS ARE JUST BEGINNING THE
INTEGRATION JOURNEY
Most marketers blend or borrow A variety of online targeting is being
creative from online & offline used. Behavioral leads the way:
campaigns:
Yes, we leverage behavioral
41%
and other ad targeting
16%
No, we don't do any targeting
19%
online
Yes, we extend the full
capabilities of our database 16%
into our online campaigns
84%
Yes, we match marketing to
14%
site visitors via cookies
Yes, we match marketing to
Yes No site visitors via cookies, and
11%
name and other addressable
data
8

9. CUSTOMER CENTRICITY
REMAINS AN ATTRACTIVE GOAL
Acxiom client experience
9

10. MARKETERS SEEK TO MOVE FORWARD
Emphasis shifting to customer marketing Targeting & attribution are top data
& branding priorities
25% Addressable data to better
Interacting with our customers
understand and reach our 30%
where they spend their time 26% audience
Loyalty and retention/giving 20% A way to borrow creative to
customers more options to
5% coordinate more personalized 2%
connect with the brand
offers
Branding/extending our 21%
To better understand results
regular branding efforts 17% from campaigns to know 28%
what's working
25%
Acquisition/direct response
26%
All of the above 40%
More options to expand 8%
targeting beyond acquisition 27%
None of the above 12%
Most Important Least Important
10

11. SOME BRANDS ARE SEEN AS ROLE MODELS
Common themes…
> Engagement feels authentic to brand
> Institutional memory enables personalized & integrated
experiences. Brands do for, not to, customers
> Sustaining loyalty/preference…brands create more
value than they capture
11

12. SUMMARY
Customer centricity is an aspirational goal…not yet reality…for
most marketers
> 70% have no or suboptimal online/offline integration
> 80% don’t have or won’t have customer value scores
> 74% can’t recognize customers in real-time
Marketers may be underestimating privacy issues/impact
To capture large payoffs, marketers are increasingly focused
upon…
> Customer marketing & branding
> Targeting & attribution as top data priorities
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13. THANK YOU.
© 2012 Acxiom Corporation. All Rights Reserved.