1.
DIGITAL MARKETING:
Lessons from marketing leaders
Laura Beaudin

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 2CHI 170302-111-R1T-79274-Ram ... F 16_9
VISION / STRATEGY ALIGNED WITH THE BUSINESS
MEASUREMENT – REACH & IMPACT, DATA, ANALYTICS, TECH AND TOOLS
OPERATING MODEL – TALENT, TEAMING, DECISION RIGHTS
CLEAR BRAND AND VALUE PROPOSITION
CULTURE OF EXPERIMENTATION / TEST & LEARN
Our POV: The fundamentals of marketing haven’t actually changed…
Customer
insights and
priorities
“WHO”
Channels
and
conversations
“WHERE”
Content
and contact
strategy
“WHAT” AND “WHEN”
Reach
and
impact goals
“WHY”

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…but the way in which marketing works couldn’t be more different
FROM TO
Real-time “newsroom” model
Rapid-fire, autonomous decision-
making
Continuous experimentation
culture
1:1 conversations
Long lead-times
Collaborative decisions
“Big bet” culture
Mass-market campaigns
Pay for performancePay for exposure
3 seconds30 seconds

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In this “brave new world”, we have identified what marketing
leaders do differently
Market share
>10%>15%
Revenue
# Respondents
Laggards
Leaders
AND IDENTIFIED LEADERS BY
INCREASED REVENUE AND SHARE
WE SURVEYED 487 COMPANIES
ACROSS INDUSTRY VERTICALS…

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What leaders do is striking
Put
customer
first
1
Test and
learn and
test again
43
Work
smart, fast
and
together
5
Embrace
mobile
2
Own
digital
destiny

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Lesson 1: Put customer first
• Invest in customer insights
• Align marketing strategies to customer priorities
• Build journey maps
• Use predictive modeling to inform targeting
• Invest in priority customers
1
Put
customer
first
more likely to align their
marketing strategy with
customer priorities
more likely to have talent
focused on customer feedback
and journey maps
2.8x
3.6x
LEADERS ARE…

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Leaders are 1.5X more likely to map out the customer
end-to-end experience
Bank Co
CUSTOMER EPISODE REDESIGN
RESULTSAPPROACH
$30M savings
20%
increase
in NPS
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 47BOS 160719-TPG Digital PoV vSHARED
Existing analytics and customer feedback were used
to prioritize journeys with high frequency and impact
Frequencyofuse
Emotional importance
Viewing
balance
(dashboard)
Viewing
activity
Download
statements
Online
bill pay
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Each priority episode redesigned to increase customer
delight and infuse digital capabilities
Across the journey portfolio – led by executive team
Catalogue journeys and
understand how each impacts
NPS
Prioritize investments
across journeys
Determine “must win
battles” – where to differentiate
or close gaps
1 2 3
PORTFOLIO OF CUSTOMER JOURNEYS
PRIORITY PRIORITY PRIORITY PRIORITY
Within a prioritized journey – led by a dedicated “Journey Owner”
Customers
Employees
Profit/
cost
Reimagine journey and
drive fast-cycle,
customer led iteration
Drive to outcomes through
“metrics that matter”
 journey analytics (cross-channel)
 Operational metrics
 journey NPS
 Etc.
Balance competing
priorities

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Lesson 2: Embrace mobile
• Use “math” and “magic” to create compelling
mobile campaigns
• Grow mobile spend in line with customer time spent
• Tie measurement to online and offline sales
• Integrate mobile into omnichannel strategy
2
Embrace
mobile
Leaders are
2.5x
More likely to
prioritize mobile
today
…and they spend
2x
less
on print and
promotional ads

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Mobile can deliver the right message to the right customer
at the right moment
Casual Dining Co.
MOBILE TARGETING TO DRIVE VISITS
Majority of web
traffic from mobile
Most web visits
are pre-dinner
More likely to
visit if nearby
TARGETED OFFERS RESULTSCUSTOMER INSIGHTS
31%
higher likelihood to visit a
restaurant on the day an ad
was seen
Roll out ad
during dinner
decision-
making
timeframe
Target
customers
within a 10 mile
radius of a
restaurant

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Lesson 3: Own your digital destiny
• Hire and train digital experts within marketing org
• Invest in tools and tech to fully unleash talent
• Quickly integrate new tools
• Employ digital prototypes, design and learning “hubs”
3
Own
digital
destiny
2.7x
more likely to hire the right
talent with digital expertise
3.0x
more likely to use
programmatic tools to
optimize performance
2.4x
more likely to use new
platforms and tools

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Lesson 4: Test and learn and test again
•Create culture of continuous improvement
•Use a suite of metrics, including CLV and ROI
•Use optimization technology
•Maintain budget for testing
4
2.7X
more likely to use
test and learn to
optimize campaigns
Test and
learn
and test
again
Leaders are…
The test and learn cycle covers from
objectives to design to roll-out:
Decide test
objectives &
attributes
Solicit input
Execute
test
Validate
results vs.
expectations
Report
on
insights
Roll out
winning
designs
Design
test &
controls
Test &
Learn
virtuous
cycle

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To create culture of test & learn, leaders embed analytics talent in org…
Source: Bain Marketing Survey (N=487, Leaders n=75 and Laggards n=34)
20% OF LAGGARDS DON’T
EMPLOY ANALYTICS TALENT
OR KEEP IT OUTSIDE OF
MARKETING
64% OF LEADERS EMBED
THEIR ANALYTICS TALENT
WITHIN MARKETING
LEADERS ARE
2.5X
MORE LIKELY TO HAVE
THE RIGHT TALENT FOR
MARKETING ANALYTICS
AND TESTING
LEADERS PLAN TO INSOURCE
MARKETING ANALYTICS
TALENT MORE OVER NEXT 3 YRS;
LAGGARDS PLAN TO OUTSOURCE

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Source: Bain Marketing Survey (N=487, Leaders n=75 and Laggards n=34)
…and use a suite of short and long-term metrics to measure results
What metrics does your company use to determine how
effective your company's marketing is?
LEADERS LAGGARDS
ROI
CTR
CAC
CLV

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Cable Co increased customer engagement and sales online by targeting &
testing messages, offers, design
• Campaign click-through rates >5x
greater than historicals
• 30-40% sales conversion
improvement
• Generated $600M incremental
revenue from tests
• Trained client team to develop
Test & Learn Center of Excellence
Cable Co
Half of Cable Co customers visited website,
but vast majority transacted in other channels
Cable Co did not have a thorough
understanding of customer online
behaviors, needs or preferences
Analyzed online & offline behaviors,
experiences and demographics
Leveraged Test & Learn to
identify best messages,
offers, merchandising, site
design, etc. to drive online
engagement and purchasing
Developed actionable targeting
strategy by identifying customer
behaviors that are strongly correlated
with upgrading online

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Lesson 5: Work smart, fast, and together
• Clearly define roles and decision-makers
• Empower employees to make decisions
• Streamline approvals
• Work across functions in agile sprints
• Communicate often inside & outside marketing
5
Work
smart,
fast and
together
Employees
empowered
to make
decisions
Budgets have
built-in
flexibility to
adjust to
changes
Disciplined
decision
processes in
place
(3.3X) (2.5X) (1.9X)
Leaders are
2.5X
more likely to
have the right
talent in the right
place and…
In MarketingIn another function
InsourcedOutsourced
Core
Capability
Talent placement
Talentmodel

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Putting it all together –
Leadership Marketing playbook
Put customer
first
1
Test and learn
and test again
43
Work smart,
fast and
together
5
Embrace
mobile
2
Own digital
destiny
• Invest in customer
insights
• Align marketing
strategies to
customer priorities
• Build journey maps
• Use predictive
modeling to inform
targeting
• Invest in priority
customers
• Use “math” and
“magic” to create
compelling mobile
campaigns
• Grow mobile spend
in line with
customer time
spent
• Tie measurement
to online and
offline sales
• Create culture of
continuous
improvement
• Use a suite of
metrics, including
CLV to measure
marketing results
• Use optimization
technology
• Maintain budget for
testing
• Hire and train
digital experts
within marketing
org
• Invest in tools and
tech to fully
unleash talent
• Quickly integrate
new tools
• Employ digital
prototypes, design
and learning
“hubs”
• Clearly define roles
and decision-makers
• Empower employees
to make decisions
• Streamline
approvals
• Work across
functions in agile
sprints
• Communicate often
inside & outside
marketing

17.
This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 17CHI 170302-111-R1T-79274-Ram ... F 16_9
How you might get started…
Assemble
cross-
functional,
agile team
Capture
learnings
and repeat
• Marketing
Analytics,
Digital,
Creative, etc.
• New member
contact
strategy (vs.
one-size fits
all)
• Dynamic
paths based
on demos,
first product
purchased,
interests,
needs
• Email
• Digital display
(program-
matic)
• Mobile app
• Online
conversion
• Cross-sell
• NPS
• “Champion”
strategies
• Data gaps
• Capabilities
needed
• Etc.
Measure
impact and
optimize
Engage
through
digital
channels
Leveraging
data assets,
develop
personalized
contact paths
Align on
customer
target &
hypothesis
for growth
Define hypothesis to test
Agree to take action and start the journey
Begin here
Go deep in areas of opportunity