Top10 Trends Impacting Marketing, Sales and Service


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Doss Ross offered The Circuit audience a review of the top 10 tech trends that could impact your business -- and some ideas to turn your competition into an encyclopedia salesman.

Doug Ross is Vice President and Chief Technology Officer at Western & Southern Financial Group, a Fortune 500 diversified financial services organization.

The Circuit is the IT Association in the SW Ohio Region since 1994

Published in: Technology, Business
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Top10 Trends Impacting Marketing, Sales and Service

  1. 1. Information Services R&D October 29, 2010 Top 10 Technology Trends for 2011 Impacting Marketing, Sales and Service CONFIDENTIAL
  2. 2. 2 #10 - Microtargeting • Consider Issues with Traditional Analog Marketing Assets (TV… Radio… Print… Direct Mail… Catalog…) – Carpet-bombing • Given one thousand impressions (1 CPM), how many impressions go to the wrong segment or unqualified prospects? • IOW, some level of waste is tolerated by definition – Lifespan • Lifespan of marketing message extremely short (newspaper or catalog thrown in trash, commercial ends, etc.) • Turns on, turns off --- very little latent measurable value
  3. 3. 3 #10 - Microtargeting • What if you could target the right customer at the right time? • And not just for paid search ads, but for display ads too? • And you could do so through multiple media? – Web – Mobile web – TV – Video – Search
  4. 4. 4 #10 - Microtargeting • Aggregators assemble demographic/psychographic into packages available to advertisers • “I want to target a 40 Y/O M, IA $500K, HHI $100K, FICO 700+, married w/kids, in ZIP 45242, between 6 and 9p…”
  5. 5. 5 #10 - Microtargeting • Microtargeting addresses some of the issues related to analog media: – Laser-guided • All responses (acquisitions) are tracked • For every 1,000 impressions (1 CPM), once offer has been “tuned”, vast majority should go to responsive segments • Focus on CPA (cost per acquisition), not CPM – Lifespan • Much longer lifespan for assets through retargeting • SEO, Video, Blogs, Mobile, Rich Media (e.g., Games), Online Display…
  6. 6. 6 #10 - Microtargeting Your online behavior also changes advertiser targeting Example of personalized re-targeting: • Visit watch store online and check prices of Invicta SubAqua diver’s watch • Visit, see display ad for the watch • Watch Dish Network, see TV ad for divers’ watches… • 55 Y/O M • 45242 ZIP Code • HHI $100K • IA $500K • FICO 720 • Married, 2 Children • … • Diving • Diver’s watches • Invicta brand
  7. 7. 7 • Takeaways: – Marketing: response rates increase when offline and online campaigns are developed in harmony – Marketing: online side should consider microtargeting (example agencies include Aegis, AKQA, Dentsu, Havas, IPG, Omnicom Group, Razorfish, WPP, etc.) – Marketing: creative and A/B testing (examples: Adroit, Bridge, ChoiceStream, Teracent, Tumri, etc.) • Watch for waves of M&A in this space because it is highly fragmented #10 - Microtargeting
  8. 8. 8 #9 – Privacy Wars WSJ, 8/2/2010
  9. 9. 9 #9 – Privacy Wars • The 50 most popular websites installed an average of 64 web trackers (cookies, Flash cookies, etc.) • These 50 sites account for 40% of U.S. page-views • A WSJ test found that they installed 3,180 trackers • had the highest ‘exposure index’ of the top 50 sites • trackers included age, ZIP, gender, HH income estimates, marital status, children, home ownership, etc. using Targus WSJ, 8/2/2010
  10. 10. 10 #9 – Privacy Wars • ‘Flash cookies’ are used by ad networks to automatically reinstall tracking cookies • They use Adobe’s Flash technology • Originally intended to remember user preferences • Can be used by data collectors to reinstall conventional cookies that users had deleted • “Adobe condemns the practice” • Since July, six (6) lawsuits have been filed in CA seeking class-action status alleging violations of federal privacy laws by tracking companies WSJ, 8/2/2010
  11. 11. 11 #9 – Privacy Wars • Takeaways: – Legal: ensure your privacy policy and related disclosures conform to best practices – Marketing: make sure that the advertising networks, agencies and other intermediaries you adhere to IAB (Interactive Advertising Bureau) privacy principles and other best practices to ensure legal, ethical compliance – General: keep abreast of changes in privacy features and requirements of the major platforms (e.g., Facebook) • Stay tuned for – possibly – dramatic changes in the online advertising world related to privacy
  12. 12. 12 #8 – Cloud for Business • Yes, Cloud is a buzzword • But, yes, it’s real • Let’s define some terms: – BaaS – Backup as a Service (rent cold storage) – CaaS – Computing as a Service (rent-a-VM) – IaaS – Integration as a Service (rent-an-ESB or ETL) – PaaS – Platform as a Service (rent a server) – SaaS – Software as a Service (rent an application)
  13. 13. 13 #8 – Cloud for Business • CaaS: typically targeted to large enterprise, provides globally available, fault-tolerant server and storage that can be managed remotely (ex: Verizon) • IaaS: Integration in the cloud (ex: SnapLogic) • PaaS: typical target is SMB; spin up servers and pay for bandwidth and storage (ex: Amazon EC2) • SaaS: all sizes of business – Productivity: Google Office, Microsoft Office365 – Horizontal: Microsoft Hosted Dynamics, SalesForce – Vertical: Cloud9Analytics (for Sales), GridDynamics
  14. 14. 14 #8 – Cloud for Business • Takeaways: – Legal, Compliance: ensure proper handling of PII and other regulatory restrictions – IT: follow SEI or similar selection guidelines to vet/evaluate/compare SaaS/PaaS/CaaS providers – IT: integrate identity management to minimize provisioning, access rights, audit (e.g., Centrify) issues • Prediction (FWIW): – Solutions providers: offering professional services that support turnkey integration of these solutions into businesses (of all sizes) will be an area of opportunity – for example, single sign-on
  15. 15. 15 #7 – Tablets for Sales and Field Reps • For many sales and other field reps, tablets will replace laptops as the preferred traveling device • Why? Fast boot, lighter, “cool factor”, easier to use in support of a conversation/presentation:
  16. 16. 16 #7 – Tablets for Sales and Field Reps Takeaways: • If they aren’t already, most sales and field reps will demand tablets (especially those who sell 1-on-1) • Probably an incremental hardware spend for organizations because a tablet doesn’t replace a laptop for a heavy keyboard user • Hard to quantify an ROI, but it won’t matter Prediction (FWIW): • Android-based tablet with slide-out keyboard and pop- up display will debut by end of 2012; could herald the end of the conventional laptop
  17. 17. 17 #6 – The Business of Social Networking
  18. 18. 18 #6 – Facebook’s ‘Like’ Button
  19. 19. 19 #6 – Facebook’s ‘Like’ Button • Introduced April 2010; as of 09/30/2010 ‘Like’ has been added to over 2 million sites • A Facebook user who "likes" content has 2.2 times the number of friends than typical Facebook user • 5 times more likely to click on external link • For news publishers: average age of Facebook user who clicks on ‘Like’ within a news site is 34 (vs. 53 for typical newspaper subscriber) • ABC News reported 190% increase in traffic; Gawker 200%; Sporting News 500% CNN, 09/30/2010
  20. 20. 20 #6 - Recruiting • LinkedIn used by 60% of Fortune 100 for recruiting • HP says it has staffed all levels including execs
  21. 21. 21 #6 – The Business of Social Networking • Takeaways: – Pick a function: HR/Recruiting, Marketing, etc. – Move up the maturity chain: watch/listen; join; comment/contribute; create; build community – Legal: plenty of regulatory hurdles for certain industries; make sure your Legal partners are in the trenches with you • Prediction (FWIW): – Social networking platforms will become the dominant destination of advertising dollars by 2020, could be hastened by convergence of web and TV
  22. 22. 22 #5 – TV and the Web, Finally Together • Old model: central planners at CableCo HQ decide what channels you receive and where you get them • New model: consumers decide what channels they get and which devices they use to consume media • AppleTV, GoogleTV, Slingbox, etc.
  23. 23. 23 #5 – TV and the Web, Finally Together • Google said to be flanking cable providers by building alliances with TV makers, Dish Network, DirecTV and device manufacturers • GoogleTV “harnesses the power of Google search to put traditional TV programming and Web videos all in the same place” • Links TV, web, home entertainment devices, smartphones (the new remote) and apps • Privacy factor: tracks viewing behavior on household basis – perhaps individual using phone CNN, 09/30/2010
  24. 24. 24 #5 – TV and the Web, Finally Together • Takeaways: – This is a situation to monitor for marketers – Learn about AppleTV, GoogleTV and Slingbox – Rapid changes could occur, similar to the rise of the iPhone, if someone develops the right convergence device – Mitigating factors: legacy content providers and cable providers aren’t happy (CNN: “Some networks blocking shows on Google TV”, 10/22/2010) – Convergence will happen, but will be delayed only by some refusing to recognize digital reality (e.g., Napster)
  25. 25. 25 #4 - Open Source Question: What do Digg, Facebook, Flickr, Google, StumbleUpon, Twitter, Wikipedia, WordPress, Yahoo and YouTube have in common?
  26. 26. 26 #4 - Open Source Answer: All were created using elements of the open source LAMP stack What is LAMP?: • Linux OS (CentOS, RedHat, SUSE, Ubuntu…) • Apache Web Server • MySQL Database • PHP or Python Programming Languages
  27. 27. 27 #4 - Open Source Why is LAMP so successful? • Free to use; maintenance and support available in both community-based and commercial forms • Massive development community means rapid development cycles (consider the rise of Firefox as an example) • Completely extensible and open to features suggested by anyone • Security (e.g., SE Linux, AppArmor) • Scalability • Most of the “Cloud” is powered by open-source
  28. 28. 28 #4 - Open Source Rise of the Open Source Applications • BI: Jaspersoft, Pentaho • BPM: Intalio; Rules Engine: JBoss Drools • CMS: Drupal, Joomla, WordPress • CRM: SugarCRM, Centric, vTiger • Development Tools: Eclipse, NetBeans IDE • Enterprise Integration: JitterBit, Mule ESB, Talend ETL • ERP: Compiere, Openbravo • Learning Management: Moodle • Network Management: Cacti, Nagios • PBX: Asterix
  29. 29. 29 #4 - Open Source Takeaways: – Have an open source policy in your organization? If not, you probably need one – Any medium- to large-company is using open source already (although management may not know it!) – Open source is disruptive; expect continued upheaval in companies combating it: • Ray Ozzie’s Departure • MSFT abandons its Windows Live Spaces blogging platform (7 million blogs) to open source WordPress • Patch Tuesday: Spate of Zero-Days in ASP.NET – Will significantly alter software CBAs
  30. 30. 30 #3 - Mobile Web Annual shipments of web-enabled smartphones poised to outpace desktops and laptops combined in 2012 (source: MS)
  31. 31. 31 #3 - Mobile Web Comparing time spent in media channel versus advertising spend yields significant disconnect (Source: Mary Meeker/Morgan Stanley)
  32. 32. 32 #3 - Mobile Web Dichotomy: Internet targeting for particular marketing segments superior to other media types, yet CPM remains depressed
  33. 33. 33 #3 - Mobile Web Aside from game consoles, Apple iPad was fastest- selling consumer computing device in history (source: MS)
  34. 34. 34 #3 - Mobile Web Takeaways: • Mobile web search projected to surpass desktop/laptop search by end of 2012; how will your website adapt? – Mobile search results with enhanced location awareness (offer “proximity coupons”) – Monetization of local offers (e.g., FourSquare) – Adding a click-to-call feature in ad increases CTR rate (reportedly 5-25%); increases relevancy of inbound calls • Expect more “instant shopping research” with frequency of use correlating non-linearly to unit price minus $10
  35. 35. 35 #2 – Your New Wallet: the SmartPhone Starbucks has now expanded its mobile payment application (vendor: mFoundry) to 1,000+ stores
  36. 36. 36 #2 – Your New Wallet: the SmartPhone Takeaways: • Monitor: watch for simultaneous upgrades to retail POS systems and mobile apps from payment card industry • First to get it “right” will revolutionize the wallet Prediction (FWIW): • If a mobile application could securely store and present your key documents (e.g., driver’s license, social security card)… and if enough governmental momentum got behind the effort to accept this presentment… the physical wallet goes away
  37. 37. 37 #1 - Information Warfare • This is a Programmable Logic Controller • Specialized computer that controls manufacturing, processing and conversion operations in plants • Programmed with ‘code- blocks’ that can turn valves on and off, check sensor levels, uhm, accelerate centrifuges…
  38. 38. 38 #1 - Information Warfare • In a large facility, scores of PLCs may operate in a networked configuration to facilitate complex operations • The PLCs are programmed, monitored and managed by control systems • These supervisory control systems are called SCADA
  39. 39. 39 #1 - Information Warfare • In early 2010, researchers detected W32.Stuxnet, which used four separate zero-day attacks • Found to target Siemens WinCC SCADA software, modify code-blocks, install other back-doors, cover tracks • Iran’s working centrifuge count reported to have dropped significantly
  40. 40. 40 #1 - Information Warfare • Stuxnet = Cyberweapon = covert warfare? • No reason that financial and corporate espionage targets are immune from targeted attacks • Blackhat 2010 Conference: “SAP Backdoors”
  41. 41. 41 #1 - Information Warfare • Takeaways: – Internal Audit: do your IT general controls meet best practices (policy, incident response, access rights, …)? – External Audit: do they agree? – Organizational issues: how do your hard-dollar and soft- dollar expenses match up with peer companies? • Prediction: it’s going to get much, much worse --- lots of soft targets, increasing numbers of attackers, increasingly sophisticated tools to speed up attacks and little coordination between defenders
  42. 42. 42 Questions Answers not guaranteed for timeliness, completeness or accuracy CONFIDENTIAL 10. Micro-targeting 5. TV and the Web, Finally Together 9. Privacy Wars 4. Open Source 8. Cloud for Business 3. Mobile Web 7. Tablets for Sales and Field Reps 2. Your New Wallet: the SmartPhone 6. The Business of Social Networking 1. Information Warfare