Integrated Digital Marketing

Prepared and presented by Louis M Fernandes, DipM, MCIM, Chartered Marketer Client Executive, Retail, Acxiom Corporation Presentation Date: 10 August 2010 Integrated Digital Marketing

Contents

Contents
What is marketing?
What are “online” and “digital”?
The digital landscape
Customer experience and integrated marketing
IT Infrastructure as an enabler NOT an end-goal
Data & insight
Digital marketing tactics
Search
Websites
Dynamic website personalisation
Email
Social Networking
JOINED UP THINKING!

What is Marketing?

What Is Marketing?
The 4 “P”s – Product, Price, Place, Promotion
The 4 “C”s – Customer, Cost, Convenience, Communication
Knowing your customer
Knowing your competition
Anticipating where the market is going
Developing innovative new customer propositions
Communicating with your publics
Selling products and services
Creating customer value
Generating ROI

What Is Marketing?
A social and managerial process by which individuals or groups obtain what they need and want through creating and exchanging products and value with others
Source: Philip Kotler
The management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably
Source: Chartered Institute of Marketing

What Is Marketing?
Providing the right product,
at the right price,
in the right place
at the right time
to the right person
using the right communication
for the right return

What do
“ Online” and “Digital”
mean to you?

“ Online” Channels and Media
Any interactive media
Websites
Search
E-mail
RSS
Online advertising
Podcasting
Personal Video
WebEx presentations
Peer-to-peer networking
Streaming A/V
Interactive TV (press red)
Instant Messenger
SMS
MMS
Mobile Internet
Blogs
Wikis
Social Networking
“ Apps”

Why “Online” & “Digital”?
Paradigm shift in media consumption
Traditional Media vs. New Media
“ On Demand” consumption
Older consumers acting younger
Younger consumers acting older
One-to-many vs. one-to-one
Fragmentation of media and markets
Allows greater targeting and segmentation
Allows accurate tracking and measurement
Push vs. pull
Cost vs. traditional media
Flexibility and ability to optimise quickly (test and learn)
Media versatility

Media Fragmentation

Media Fragmentation: UK TV in 2010 Source: Google

Media Fragmentation Source: Google

Market & Channel Fragmentation

Noise!

Media Spend: US 2009

Media Spend: Digital Channels Source: IAB/PwC Internet Advertising Revenue Report 2009 Note: UK mobile market estimated as being worth 3 billion euros

Abstract
Channel Interference vs. Harmonic Resonance
Channel Fragmentation vs. Single Customer View
Channel Centricity vs. Customer Centricity
Channel Function vs. Customer Lifecycle
The Segment of One?

Building Relationships
Do you know who your customers are?
Individually tailor marketing messages to
achieve 1:1 communications
Your customers are people, not statistics!
Treat them as such!
Create a dialogue and build a relationship!

Applying Marketing Principles to Digital
What are our
marketing objectives
likely to be in a
digital environment?

Objectives: Grow revenue, reduce costs, increase margins and deliver ROI

Metrics and Measurement
Metrics should be tied to financial results / ROI wherever possible
Outcomes need to be measurable
If it can’t be measured, think about whether you should be doing it
Use metrics that are relevant

The Challenge

The Issue: Disjointed Customer Experiences: Multiple -channel Customer Management Today CMO Marketing Manager Communication Channel Customer Email Mobile Web Personalisation Online Media (Display) Social Media LEGACY DATA (e.g. Purchase History, POS, etc)

Common Challenges: organisational silos with data held by function/business unit. Result: Disjointed customer experiences = lost revenue opportunities Product Service Marketing Sales Insight

The “glue” that links all these silos and creates seamless interaction is an organisation’s most valuable asset: Its customers! Product Service Marketing Sales Insight

The “Virtuous Circle” of Customer Interaction Source: McKinsey

The Goal: Seamless Customer Experiences: True Multi -channel Customer Management Content Distribution Email/Mobile Point of Sale Web Personalisation Online Media (Display) Social Media SCV Business rules Reporting / Analytics The “Closed loop” Modelling “Sandpit” Data clean, merge & append

Customer Recognition
The foundation for all Single Customer View solutions
Four-step process
Clean the data
Consistently recognise customers
Enrich the data
Data compliance

Retail Consumer Dynamics
5.5 million+ consumers either surveyed or permission their data for use in this each year
Post-recession consumer
Attitudes and opinions
Actual behaviours
Actionable insights
Store performance
Market basket analysis
Next best actions

Data is the New Black
Drives consumer insights and help you predict what you should do next (and where to do it!)
Empowers companies to shift resources to most effective channels and segments
Companies won’t waste money by chasing down unprofitable relationships
The nerds of marketing are now cool

Power Ratio Claire Simmons, Home Subscriber, Online registrant 123 High Street, Bromley, BR1 1AA 020 8555 1234, csimmons@yahoo.com Enables Answers to Key Questions : Where Who When How What Baseline 55:1 268:1 Most Predictive 7:1 196:1 Breadth of Data TM Name, postal address, email and phone Demographic and Socio-economic Data Personicx™ Segmentation Propensities Property Data Lifestyles Buying Activity In Market Describe/Predict Spent £350 in last 60-days on digital music player; spent £500 last year on car audio Wine, Hi-Tech, Reading: Audio Books, Self-Improvement Known Purchases (Orange 2 year contract expired 05/09) Age 35, Married, 2 children, Est. HH Income: £135K, Est. Net Worth: <£305K, Home Owner, Number of Lines of Credit New Products/Services, Socially Conscious, Family Oriented PersonicX ® Cluster: Kids & Clout Shopped online for new Vodafone 2 year contract w/iPhone TODAY Est. Home Mkt Value: £250-300K, Est. Home Sq Ft. 2,500, Est. Home Equity: £90K 2-Yr Tenure

Personicx Cluster Code System
‘ F’ Dependent Children (Families)
‘ X’ No dependent children
‘ R’ Retired household
G F 1 28 Postcode system 1 – 5 : Household Affluence bands Cluster number (1 – 60) 28: ‘Spending Sporty Families’ Copyright  2007 Acxiom Corporation. All Rights Reserved.

Personicx Geo

How a consumer looks to most organisations…

Data & Dialogue Drive Recognition

The Break-Up

Realising CLV through integrated CRM Optimal Resource Allocation Enabling Capabilities Around People, Process, and Infrastructure Return on Customer Investment Customer Value Time Acquisition Strategies Growth and Retention Strategies Attrition Strategies Strategic Impact Y 2 Y 1 Y 0 Y 2 Y 2 Nursery Strategies Lengthen and Deepen Customer Value Intelligently Prospect to Minimise CPA Identify and Address Potential Attriters The “Cliff” Across Consumers Across Channels Across Actions Across Products

Using Consumer Insights to Drive Revenue at BAA

Multi-Channel Strategy
WorldPoints provides a different opportunity from other BAA
marketing channels:
pre awareness : reach our most profitable and regular travellers before they arrive at the airport
segmentation : using RFM & geo-demographic analysis from data collected via the card, can personalise and tailor the messages, offers and promotions to drive incremental spend
test and refine : data collected via card allows us to track and evaluate all activity
multi-channel: deploy a combination of magazine, direct mail, email and web marketing channels

“ Code 2” Personicx® Clusters

Typical Profile
Detached Houses
Married
Large Family
Enjoy sports incl. Hiking, Walking, Tennis, Cricket, Skiing
National Trust Members
Wildlife interest
Charity Donors/supporters
Numerous Credit Cards
Financially astute

Personicx® Gains Curve
Gains curve & effects on acquisition
Only a 3% Reduction in target 30% reduction in base

Campaign Results:

WorldPoints Success
75% more spend than non members per annum
85% “WPs gives me useful information about airport shopping”
64% “WPs encourages me to visit airport outlets”
61% “WPs encourages me to buy products at the airport”
88% “WPs emails give me useful information”
23% says they frequently tell others how good the BAA WorldPoints scheme is
41% say they frequently tell others how good airport shopping is at any of BAA’s UK airports
45% say they allow 15-60 minutes for shopping when planning their trip, with 14% allowing more than 1 hour

Websites

Getting Your Audience to Your Website
Search engine optimisation (SEO)
Relevant content
Links from other sites
Correct use of meta-tags
Pay per click advertising (PPC)
Google (Google, Ask Jeeves & AOL)
Bing (All Microsoft & Yahoo! properties)
Online advertising
Integrated campaign links
TV
Print
Outdoor
QR Codes

Getting Your Audience to Your Website

Search Bar Paid Search Natural Search (SEO)

Search Innovation: Semantic Search & Bing

Search Specialisation: Computational Search

What should the purpose of a
Commercial Website be?

Website Objectives
Educate and inform
Raise awareness of brands and products
Engage with individuals
Develop a rapport / dialogue
Be a sales channel
Make, track and fulfil orders
Take payment

Websites
Have clearly defined objectives
Understand the users’ needs
Map the customer journey
Resolve pain points
Be continually monitored and revised
Stay relevant, vibrant and up-to-date
Be a “Call to Action”

Dynamic Website Personalisation

Available Tools… A|B & Multivariate Testing Segment 1 Version B Version A Segment 2 Version C Version B Version A
Geo-Location Data
US state, Metro/DMA
Country / Native language
Referral Data
Referring site / keywords
Referring Campaign code
Technical Data
ISP / Connection speed
Browser / OS / Mobile
Technical Data
1 st / 3 rd party cookies
URL parameters
Inline content - meta tags
On-Site
Page Layout
Page Style
Text / Display
Links
Pop Up Support
Live Chat
SMS/Email Collection
Follow Up
SMS
Email
Creative Options Targeting Options

Case Study: Website Personalisation

Case Study: Search & Selection in Retail Challenge All visitors to the home page (the default for most organic search traffic) were presented with the same generic content. Solution: Acxiom segmented incoming search traffic into nine groups. Each group was based on visitor attributes or product related features, which were derived from search terms and past site behaviour. Visitors were directed to the best performing creative for each segment. Results: Overall conversion increased by 65% across all segments, including a 168% lift in conversion for visitors looking for unique wedding favours and a 78% lift in conversion for price sensitive visitors.

Email Marketing

Email Marketing
Acquisition vs. retention
Email blasting (spam?) vs. permissioned and pulled
AIDA
Sales promotion
Brand awareness
Call to action
Loyalty
Advocacy
Customer lifetime value
Relatively low cost of communication vs. direct mail
Speed of execution vs. direct mail

1:1 Individualisation “ Spotlight” section customized by Industry Personalized greeting “ Your Features” articles customized by customer portrait Second “Spotlight” article customized by Job Responsibility One click away from viewing and updating personal portrait

Dynamic Targeting / Preference Center

Sales Promotional

Email / Display Ad Integration

Email Branding

Newsletter Template Customisation GUCCI | GLOBAL ECARD RFP Before Acxiom Version German Chinese

Social Networking

Trust the source? Recommendations from People I Know: 90% Consumer Opinions Posted Online: 70% Television: 62% Radio: 55% Editorial Content: 69% Emails I signed up for: 54% Search Engine Ads: 41% Banners: 33% Source: Nielsen Global Online Customer Survey, April 2009

Put on your social hat
Imagine if you could identify socially active influencers and engage those influencers to stimulate positive buzz, behaviour and conversations.
Selectively Social Social Placeholders Getting Started Wide Netters Your brand.

The changing face of online influence
“ Direct social media marketing”
Recognise best influencers within social networks
Provide them with a means to experience the brand and
Encourage them to share that experience with their networks, thereby driving influence and direct actions on the brand’s behalf
Consumers are now a form of “media” and direct social media marketing allows savvy marketers to leverage influential consumer advocates as a marketing tool on the brand’s behalf.

3 Key elements for effective social programs Social Data Measurement & Monitoring Communication & Conversation
Leverages data and provides insights about your customer’s social networks
Aggregate
Individual levels
Demonstrates ROI, establishes benchmarks for success and provides relevant insights for future marketing activities Amplifies and accelerates marketing initiatives

Viral Marketing on Social Networks

Marketing on Social Networks
Data privacy
Segmentation and targeting are essential
Beware User Generated Content (UGC) – it’s your brand in their hands!
You can’t easily control your brand
If someone takes a dislike to what you’re doing, you can become an easy target
Corporate Governance/Corporate Social Responsibility

Information Overload: The Road Ahead

The Changing Face of Media

Parting Thoughts
Digital channels are becoming more relevant
Digital channels should be considered when developing any communications
HOWEVER, digital is NOT the be-all and end-all
Digital channels should not be used in isolation – think: INTEGRATION
Digital channels should only be used when and where appropriate
Objectives should drive channel usage
Objectives in turn should be driven by customer needs
Always consider customer experience and the customer journey when designing your communications
Intelligent use of data / customer insights are the cornerstone to any successful campaign

Internships
Please send your CV with a covering letter to:
Michael Notley, Acxiom Recruitment
[email_address]
Please say WHY you would like to do an internship with Acxiom, what area of our business interest you, what you hope to achieve and what value you feel you can add
In other words, MARKET yourself!
All applications are judged on a case-by-case basis

The global interactive marketing services company www.facebook.com/ACXIOMcorp www.twitter.com/ACXIOM www.linkedin.com/companies/ACXIOM www.youtube.com/user/ACXIOMCorporation www.delicious.com/ACXIOM Integrated Digital Marketing Prepared by Louis M Fernandes, DipM, MCIM, Chartered Marketer Client Executive, Retail, Acxiom Corporation Presentation Date: 10 August 2010 © 2010 Acxiom Corporation. All Rights Reserved .

Integrated Digital Marketing

by Louis Fernandes on Sep 10, 2010

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Integrated Digital Marketing — Presentation Transcript