MARKETING IS DEAD Kyle Lacy,
5/19/2016 Understanding the trends changing marketing and the steps to survive

@KYLEPLACY 2 I am a
marketer. I’ve written 3 books. Vice President of Marketing OpenView Venture Partners Previously at ExactTarget & Salesforce ABOUT KYLE

@KYLEPLACY 33 WE MUST UNDERSTAND
CHANGE

@KYLEPLACY 4 TECHNOLOGICAL ADVANCEMENT Industrial
Revolution 1760-1840 Information Revolution 1940-1990 Consumer Revolution 2000-2016 Intelligence Revolution 2020+ Mobile Social SaaS Cloud Machine Learning Computers Radio Television Internet Cotton Gin Steam Engine Bessemer Process Model T Telephone Transistor Nanotechnology Artificial Intelligence Virtual Reality

@KYLEPLACY 5 TECHNOLOGY & CONSUMER
BEHAVIOR Customer Innovation

@KYLEPLACY 6 TECHNOLOGY & CONSUMER
BEHAVIOR Customer Innovation Marketing Innovation

@KYLEPLACY 77 WHY IS THIS
HAPPENING?

8 @KYLEPLACY MOBILITY COMPLETELY CHANGED
THE GAME DISRUPTIVE TREND #1

9
@KYLEPLACY
IT IS SEAMLESS…

@KYLEPLACY
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@KYLEPLACY
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@KYLEPLACY
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13 @KYLEPLACY IT IS JUST
BEGINNING…

14 @KYLEPLACY “40% OF GLOBAL
MOBILE USERS HAVE A SMARTPHONE.” MARY MEEKER

@KYLEPLACY 1515 WHY IS THIS
IMPORTANT?

@KYLEPLACY
1616
60% GROWTH POTENTIAL

17 @KYLEPLACY WHOEVER OWNS THE
NETWORK. OWNS THE EXPERIENCE. DISRUPTIVE TREND #2

@KYLEPLACY
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@KYLEPLACY 19 COMPARISONS MATTER $54B
CAP $12B CASH $49B CAP $21B CASH $165B CAP $40B CASH $474B CAP $75B CASH $584B CAP $215B CASH $377B CAP $92B CASH

@KYLEPLACY 2020 AMOUNT GLOBAL WEB
TRAFFIC DIPPED WHEN GOOGLE SUFFERED A 5 MINUTE OUTAGE 40% http://expandedramblings.com/index.php/by-the-numbers-a-gigantic-list-of-google-stats-and-facts

21 @KYLEPLACY “MOST PEOPLE THINK
OUR MAIN COMPETITORS ARE YAHOO! AND BING. IT’S ACTUALLY AMAZON.” ERIC SCHMIDT EXECUTIVE CHAIRMAN ALPHABET (GOOGLE)

@KYLEPLACY
22
$100,000,000,000
2015 SALES

@KYLEPLACY 2323 WHERE ARE THEY
REINVESTING?

@KYLEPLACY 2424 WHERE AREN’T THEY
REINVESTING?

25 @KYLEPLACY THE RISE OF
THE MACHINES DISRUPTIVE TREND #3

@KYLEPLACY
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@KYLEPLACY
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@KYLEPLACY 28 Our technology application
generates news stories, industry reports, headlines and more – at scale and without human authoring or editing @kyleplacy

@KYLEPLACY 29 Our technology application
generates news stories, industry reports, headlines and more – at scale and without human authoring or editing

@KYLEPLACY
30

@KYLEPLACY 31 Our technology application
generates news stories, industry reports, headlines and more – at scale and without human authoring or editing @kyleplacy

@KYLEPLACY
32

@KYLEPLACY
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@KYLEPLACY 3434 70% OF YOUR
JOB WILL BE AUTOMATED BY 2020* *me

35
@KYLEPLACY
HAVE NO FEAR

@KYLEPLACY
36
MARKETING DOESN’T
SURVIVE.

@KYLEPLACY 37 MARKETING DOESN’T SURVIVE.
IT EVOLVES.

38 @KYLEPLACY MARKETING IS NOT
A FUNCTION IT IS AN EXPERIENCE EVOLUTION #1

@KYLEPLACY 39 MARKETING MUST REORG
TO SURVIVE

@KYLEPLACY 40 THE OLD WAY
MARKETING Operations Creative

@KYLEPLACY 41 THE NEW WAY:
CUSTOMER FACING EXPERIENCE REVENUE CRO/CDO

@KYLEPLACY 42 THE NEW WAY:
CUSTOMER FACING EXPERIENCE REVENUE CRO/CDO Controls the brand journey for prospect and customer. They control the top and middle of the funnel. Controls everything related to revenue generation. They close and upsell.

@KYLEPLACY 43 EXPERIENCE: THE NEW
MARKETING EXPERIENCE • Creative • UX • Product Marketing • Community • Data Scientist • Events • Enablement • Demand Gen

@KYLEPLACY 44 THE NEW CONTENT
TEAM: DEMAND GEN DEMAND GEN • Editor • Writer • Acquisition Manager • Operations • Enablement • Project Management

@KYLEPLACY 45 EVERY TEAM SHOULD
BE QUOTA BEARING

@KYLEPLACY 46 EVERY TEAM SHOULD
BE QUOTA BEARING = YOU MUST GENERATE REVENUE FOR THE BUSINESS

47 @KYLEPLACY DON’T RENT AN
AUDIENCE. OWN IT. EVOLUTION #2

48
@KYLEPLACY

49
@KYLEPLACY

50
@KYLEPLACY

@KYLEPLACY 51 IF YOU CAN
BUILD AN IDENTITY NETWORK. DO IT.

52 @KYLEPLACY UXPERIENCE MATTERS EVOLUTION
#3

@KYLEPLACY 53 GET THE PRODUCT
RIGHT AND IT WILL SELL ITSELF

@KYLEPLACY 54 GET THE EXPERIENCE
RIGHT AND IT WILL SELL ITSELF

@KYLEPLACY 55 GET THE EXPERIENCE
RIGHT AND IT WILL SELL ITSELF OR YOUR CUSTOMERS WILL HELP YOU SELL IT

@KYLEPLACY
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@KYLEPLACY 5757 1% OF COMPANIES
DELIVER AN EXCEPTIONAL UX EXPERIENCE

@KYLEPLACY 58 via UserTesting MAP
OUT YOUR CUSTOMER JOURNEY

@KYLEPLACY 59 AWARENESS EVALUATION PURCHASE
USAGE REPURCHASE ADVOCACY

@KYLEPLACY 60 AWARENESS EVALUATION PURCHASE
USAGE REPURCHASE ADVOCACY Corp Brand Website Press Advertising Social Sponsorship Employees Referrals Word of mouth Offers Experience Referrals Website Press Advertising Ease of Use Price Bags Locations Ease of Use Experience Referral Offers Pre-flight Boarding Airplane Luggage Seats Bathrooms Inflight Service Time Drinks Retrieval Notifications Contact App Use Check-in Loyalty Program Post flight comm Offers Hotels/Cars Hospitality Forums Referrals Support Complains Loyalty Prog Social Media Advertising Word of Mouth AIRLINE EXPERIENCE

61 @KYLEPLACY IT’S NOT CONTENT
MARKETING. IT’S THOUGHT- LEADERSHIP. EVOLUTION #3

@KYLEPLACY 62 THOUGHT LEADERSHIP IS
NOT ABOUT YOU.

@KYLEPLACY 63 THOUGHT LEADERSHIP IS
NOT ABOUT YOU. IT STARTS AND ENDS WITH YOUR CUSTOMER.

@KYLEPLACY 64 FOUR TYPES OF
THOUGHT-LEADERSHIP EXPERIENTIAL CUSTOMER PEER BENCHMARK

@KYLEPLACY 65 EXPERIENTIAL CONTENT Become
the prospect’s customer.

@KYLEPLACY 66 EXPERIENTIAL CONTENT •
Shopped in 100 retail stores • Tracked 80 different touch points over 90 days • Delivered tailored reports to the 100 retailers

@KYLEPLACY 67 EXPERIENTIAL CONTENT •
Shopped in 100 retail stores • Tracked 80 different touch points over 90 days • Delivered tailored reports to the 100 retailers You can’t buy better marketing.

68 @KYLEPLACY “YOUR MARKETING SHOULD
BE SO GOOD PEOPLE WOULD PAY FOR IT.” JAY BAER

@KYLEPLACY 69 CUSTOMER’S CUSTOMER Teach
your customer about their customer.

@KYLEPLACY 70 PEER RESEARCH Teach
your customer about their peers.

@KYLEPLACY 71 • Connect with
influencer in your customer’s network • Interview influencer. Transcribe interview on speechpad.com PEER INTERVIEWS

@KYLEPLACY 72 BENCHMARKING THAT MATTERS
Your data is your only differentiator.

@KYLEPLACY 73 THOUGHT-LEADERSHIP IS NOT
THE SALES PITCH.

@KYLEPLACY 74 7 THOUGHT-LEADERSHIP IS
NOT THE SALES PITCH. IT SUPPLEMENTS THE SELL.

75 @KYLEPLACY DIE ENGAGEMENT METRICS!
LONG LIVE UNIT ECONOMICS! EVOLUTION #4

@KYLEPLACY 76 7 MARKETING SHOULD
ACT LIKE ECOMMERCE

@KYLEPLACY 77 7 MARKETING SHOULD
DIG DEEP LIKE ECOMMERCE

78 @KYLEPLACY “WE MUST MOVE
FROM NUMBERS KEEPING SCORE TO NUMBERS THAT DRIVE BETTER ACTIONS.” DAVID WALMSLEY

@KYLEPLACY 79 • Open Rate
• Click Through Rate • Cost per Click • Time on Site • Bounce Rate • Close rate per Channel • Conversion Rate ENGAGEMENT METRICS ARE IMPORTANT

@KYLEPLACY 80 • Open Rate
• Click Through Rate • Cost per Click • Time on Site • Bounce Rate • Close rate per Channel • Conversion Rate ENGAGEMENT METRICS ARE IMPORTANT BUT SECONDARY

@KYLEPLACY 81 8 CAC &
LCV & LTV PAYBACK PERIOD CUSTOMER RETENTION @KYLEPLACY

@KYLEPLACY 82 1. CAC -
determine the cost associated with acquiring a 2. LCV - Lifetime Customer Value - a prediction of the net profit attributed to the entire future relationship with a customer. 3. Payback Period- the length of time required for an investment to recover its initial outlay in terms of profits or savings 4. Customer Retention- the number of customers you manage to keep with respect to the number you had at the start of your period. This does not count new customers. It is basically the opposite of customer churn. UNIT ECONOMICS DEFINED

83 @KYLEPLACY DATA CLEANSE FOR
HEALTHY ARTIFICIAL INTELLIGENCE EVOLUTION #5

@KYLEPLACY 84 4300% INCREASE IN
ANNUAL DATA GENERATION BY 2020

@KYLEPLACY 85 70% OF CRM
IMPLEMENTATIONS FAIL BECAUSE OF BAD DATA.* *Forrester Research

86 @KYLEPLACY “BIG DATA IS
LIKE TEENAGE SEX… EVERYONE TALKS ABOUT IT, NOBODY REALLY KNOWS HOW TO DO IT, EVERYONE ELSE IS DOING IT, SO EVERYONE CLAIMS THEY ARE DOING IT.” DAN ARIELY DUKE UNIVERSITY

@KYLEPLACY 87HOW DOES MARKETING EFFICIENTLY
MANAGE DATA? • Database cleanse should be your top priority • Get your team off of spreadsheets • One system of record for the entire company (Good luck) • Process. Process. Process. Process. Process.

@KYLEPLACY 88 AND ONE LAST
THING…

@KYLEPLACY 89 THE CREATION AND
MANAGEMENT OF THE CUSTOMER EXPERIENCE IS THE ONLY THING THAT MAKES YOU RELEVANT.

@KYLEPLACY 90 1. Reorganization of
marketing as an experience and not a function 2. Owning a network not renting it 3. Seamless user experiences 4. Shifting from content marketing to thought leadership 5. Focusing on unit economics 6. Clean data THE FUTURE OF MARKETING DEPENDS ON…

@KYLEPLACY 91 I am a
marketer. I’ve written 3 books. Vice President of Marketing OpenView Venture Partners Previously at ExactTarget & Salesforce ABOUT KYLE