The document discusses the importance of customer engagement in a digital world where social media dominates internet use. It highlights the need for organizations to prioritize personalized interactions and co-create with customers using digital technologies, which can significantly enhance customer experiences and drive revenue. Key marketing priorities for the future include harnessing big data, mobile commerce, and innovative content strategies to adapt to changing consumer expectations.

1. Operating in a Platform World
Michelle Killebrew | Digiday Platform Summit | August 2014

2. 2
Michelle Killebrew
@shellkillebrew
Program Director, Strategy
IBM Social Business
Contributing Writer
ClickZ.com
Digital Marketing | Marketing Technologist | Demand Generation

3. #1
Social is now the top use of the internet. Americans spend an average
of 37 minutes daily on social media, a higher time-spend than any other
major Internet activity, including email.
@shellkillebrew
The Rise of the
Empowered
Customer

4. 4
The Need for People-Centric
Engagement
of CEOs in outperforming
organizations make
customer collaboration
a top priority
of smartphone
users check an app
as soon as they
wake up
of individuals are
willing to exchange
personal information
for a personalized
offering
of CEOs intend to
operate their
organization in a more
open manner in
the next 3-5 years
84%
of millennials and 70% of
boomers say social and
user-generated content has
an influence on what they buy
80%
84%
56%
72%
Sources: 84%, 70%, 84%, 2/3, 80%: IBM 2013 Annual Report
72%, 56%: IBM Institute for Business Value, Reinventing the rules of engagement: CEO insights from the Global C-suite Study, 2014
@shellkillebrew

5. 5
Digital technologies are playing a large part in the emergence of
engagement strategies as they foster relationships between organizations
and their customers
of MOBILE users keep their
devices within arm’s reach
90%
of of web traffic will
be VIDEO by 2014
90%
of businesses today are
using web ANALYTICS
84%
of purchasers get advice from
their SOCIAL NETWORK
81%
@shellkillebrew

6. 6
6
Customer experience is driving shareholder value
Source: The Watermark Consulting 2013 Customer Experience ROI Study– April 2, 2013
@shellkillebrew

7. Customers are demanding engagement, NOT
marketing
Customers demand engagement versus marketing – IWATA CMO POV points
Marketers have always
been responsible
for knowing the customer.
Marketers have always
been responsible for
defining what to market,
and how to market.
Marketers have always
protected the brand
promise.
2014Timeless 2012
Co-create with
customers, employees,
and partners.
Innovate and scale
personally relevant and
rewarding experiences.
Know each customer
in context.
Designing your culture
and brand so they are
authentically one.
Creating a system of
engagement that
maximizes value creation
at every touch.
Understanding each
customer as
an individual.
@shellkillebrew

8. Customer Interactions
• In 2012, 57% of CEOs expected digital
channels to become one of their
company's key means of interacting with
customers within the next five years. In
2013, 52% of CxOs say they are already
there.
• CxOs say this trend will continue:
88% say they will interact digitally with
customers even more in the next three to
five years.
@shellkillebrew

9. @shellkillebrew
Empowering
Putting the customer in charge
Compelling
Matching and exceeding expectations
Consistent
Regardless of your device
Relevant
Knows who you are and what you’re doing
To Engage Customers Today,
Digital Experiences Must Be…

10. Higher
Win Rates
60%
more online sales
conversion
85%
conversion rate
using web tools
Shorter
Time to
Market
and Delivery
84%
faster time
to find experts
61%
faster service
delivery to new
customers
Lower
Operational
Costs
62%
customers didn't
need to call
2x
increase in
self-service
transactions
More
Satisfied
Customer
s
30%
higher rating for web
self service vs. help
desk
30%
increase in referrals
Market Leaders Are Getting
Exceptional Engagement & Results
@shellkillebrew
10

11. 11
Personalized Experiences Drive Revenue
Up to 1/3 of all consumer spending is
influenced by social interactions.
That’s $940 billion annually!
McKinsey

12. Let’s look at how some brands are
winning with their customer
engagement strategies.
12

13. Content Marketing
@shellkillebrew
Know your
audience and
create stories that
will entertain and
engage them.

14. @shellkillebrew
Crowdsource & Co-create
Include your
community in
crowdsourcing
innovation
- Jakob Nielsen

15. @shellkillebrew
Build Mass Participation
Mobilize your
community around
a shared interest
that ties back to
your product

16. Employee Advocacy
Include your
employees in
expressing and
advocating for
your brand.
Tammy Nelson, CMO
@shellkillebrew

17. Customer Service
Face to face
service should be a
hallmark of your
brand experience.
Empower & train
your employees.
@shellkillebrew

18. Storytelling Allow your
audience to
participate in the
story. Listen to their
feedback for
storyline direction.
@shellkillebrew

19. @shellkillebrew
Creating Big Buzz Through New Modes
Of Storytelling
19
Key Insights from Michael Engleman:
No. 1: Storytelling is for Everyone
•Enabling consumers to actively participate in the storytelling is increasingly
as important as the story itself.
No. 2: The Blurrier the Lines Between Marketing and Content the Better
No. 3: Thank You for Sharing: The New Rules for Socializing
• Share Early
• Share Often
• Share Stuff Worth Sharing
• Share with Influencers
• Listen…storytelling is a two-way street
No. 4: Innovation Isn't a Perk, It's a Requirement
No. 5: None of It Matters Without Authenticity
Michael Engleman is
EVP Marketing, Digital &
Global Brand Strategy for
Syfy & Chiller, both
are divisions of
NBCUniversal

20. 1
Zuberance. 2
Fred Reichheld, HBS Press. 3
Harris Interactive
A company with 100,000 brand advocates can reach
60 million people.1
A 12% increase in brand advocacy generates a two-fold
increase in revenue on average.2
72% of adults who had a memorable product or service
experience said they took positive action, with 57%
communicating their positive experience to others, and
41% recommending that someone make a purchase.3z
Exceptional Experiences
Create Brand Advocacy
@shellkillebrew
@shellkillebrew

21. 21
Marketing Priorities for the Coming Year
(2015)
1. Harnessing Big Data
2. Mobile commerce/mobile advertising
3. Content creation
4. Marketing automation
5. Social commerce/social advertising
6. Marketing attribution
7. Omni-channel execution
8. Globalization of marketing efforts
9. Linking online and offline performance
Source: Building Bridges to the Promised Land, The CMO Club, 2014
Social
Ad Spend To
Pass $11 Billion
By 2017, almost
double last year’s
total of $6.1 billion
(Mintel)
Newer ad formats
--including native advertising--
will account for the lion’s share
of growth over the next few
years, predicts Mintel.
@shellkillebrew

22. The Imperatives of People-Centric Engagement
To address all of the disruption and innovation stemming from these technologies, the CEOs
anticipate three areas for action.
Embrace Disruption Build Shared Value Dare to Be Open
72%
Collaborate closely with
customers
56%
Empower individuals,
extend collaboration
43%
Increase mobile tech
investment
1: The ‘Upwardly Mobile‘ Enterprise: Setting the Strategic Agenda, IBM Institute for Business Value report
2 & 3: Reinventing the Rules of Engagement: CEO Insights from the Global C-suite Study
22

23. Takeaways:
1.Leverage technology to understand and engage
with your customers authentically
2.Despite advances in technology, remember to
engage with your audience as humans
3.You must innovate to stay viable -- it is not an
option
Learn more from IBM Research:
www.ibm.com/services/c-suite
Stepping up to the challenge: CMO insights
Reinventing the rules of engagement: CEO insights