Hope is not a Strategy
A capability model for successfully reaching
and engaging consumers

Forrester Customer Experience ...
About Acxiom
• Global marketing services and
  technology company. Focused on
  audience and customer engagement

• #1 Ad ...
A crisis in customer engagement

                                       Just 8%
                                    of the...
A crisis in insight & focus…




2Forrester   Research
3comScore
Capability model for a connected world




       Target 15-30% of spend to redirect
Capability model for a connected world
1. Reach/engage your audience
  Customer value varies greatly


                           + 500%



  Contribution to
  O...
1. Reach/engage your audience
                 Most firms are not getting their fair share of valuable buyers

           ...
1. Reach/engage your audience
                     Valuable buyers are hard to recognize

                                ...
1. Reach/engage your audience
             Valuable buyers are hard to recognize

                                       T...
Therefore,
Most Firms…
Under-invest in
high value relationships

Over-invest in
low value relationships
1. Reach/engage your audience
             Narrowcast, not broadcast


                                                   ...
Capability model for a connected world
2. Multidimensional Insight
   What do you see?
2. Multidimensional Insight
   Sorry, there are no silver bullets
2. Multidimensional Insight
   Just about online context/behavior?
2. Multidimensional Insight
   Just about online context/behavior?
Capability model for a connected world
Capability model for a connected world
4. Personalized & coordinated engagement

 In the Marketing Democracy
4. Personalized & coordinated engagement
  Illustration
                                                                  ...
4. Personalized & coordinated engagement
  Illustration
                                                                  ...
4. Personalized & coordinated engagement
  Illustration
                                                                  ...
Capability model for a connected world
                   Key requirements

        Differentiated value of customers     ...
Capability model for a connected world
     Delivering ROI




 Tech Firm                           Personalized experienc...
What could have been


               owned




             but couldn’t
              become
What could have been


               owned




             but couldn’t
              become
What could have been


               owned




             but couldn’t
              become
What could have been




          It’s not enough…
            A great customer base
            A great product
        ...
Thank you. Questions?
A capability model for successfully reaching & engaging consumers
A capability model for successfully reaching & engaging consumers
A capability model for successfully reaching & engaging consumers
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A capability model for successfully reaching & engaging consumers

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Highlights 4 key capabilities to reach/engage customers in a connected world. 1) Reach/engage your audience by narrowcasting, 2) multidimensional insight - filter out the false signals that cost money and harm brands, 3) create a central nervous system - the synapse to send/receive stimuli then recalibrate, and 4) personalized/coordinated engagement at the moment of truth, when customers are engaged with your brand, and when they're out living their life. These capabilities can facilitate redirection of 15-30% of marketing programs/media spend

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A capability model for successfully reaching & engaging consumers

  1. 1. Hope is not a Strategy A capability model for successfully reaching and engaging consumers Forrester Customer Experience Forum June 2010 1
  2. 2. About Acxiom • Global marketing services and technology company. Focused on audience and customer engagement • #1 Ad Age Agency • US Agency Overall • US CRM/Direct Marketing • Quick Facts: • 5,700 clients in 40 countries • 300,000 campaigns/year • 5 billion consumers engaged/year • 1 trillion customer recognition events/year
  3. 3. A crisis in customer engagement Just 8% of their customers agree Source - Bain
  4. 4. A crisis in insight & focus… 2Forrester Research
  5. 5. 3comScore
  6. 6. Capability model for a connected world Target 15-30% of spend to redirect
  7. 7. Capability model for a connected world
  8. 8. 1. Reach/engage your audience Customer value varies greatly + 500% Contribution to Overall Profit 0 Customer Value Segment Top 30% Next 50% Bottom 20% Contribution to Overall Profit - 400%
  9. 9. 1. Reach/engage your audience Most firms are not getting their fair share of valuable buyers Retailer 1 Retailer 2 UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Cookware/Kitchen Clothing/Apparel Buyer Accessories Buyer UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Acxiom, comScore
  10. 10. 1. Reach/engage your audience Valuable buyers are hard to recognize Portal 1 Portal 2 UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments Portal 3 Portal 4 UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments 12 Acxiom, comScore
  11. 11. 1. Reach/engage your audience Valuable buyers are hard to recognize TV Network 1 TV Network 2 UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments TV Network 3 TV Network 4 UV Index UV Index PersonicX Consumer Segments PersonicX Consumer Segments
  12. 12. Therefore, Most Firms… Under-invest in high value relationships Over-invest in low value relationships
  13. 13. 1. Reach/engage your audience Narrowcast, not broadcast Retailer 1 v Portal 1 This retailer’s best customers are under-represented on this portal UV Index PersonicX Consumer Segments
  14. 14. Capability model for a connected world
  15. 15. 2. Multidimensional Insight What do you see?
  16. 16. 2. Multidimensional Insight Sorry, there are no silver bullets
  17. 17. 2. Multidimensional Insight Just about online context/behavior?
  18. 18. 2. Multidimensional Insight Just about online context/behavior?
  19. 19. Capability model for a connected world
  20. 20. Capability model for a connected world
  21. 21. 4. Personalized & coordinated engagement In the Marketing Democracy
  22. 22. 4. Personalized & coordinated engagement Illustration When Becky visits a site, audience insights are leveraged to personalize the engagement We know: • Service history & preferences • Preferred media, channel & cadence • Transaction & response behavior • Social influence We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has bought several smaller kitchen items using her store card both online and in the store and she clicked on an email link featuring kitchen appliances. Create this experience across media / channels
  23. 23. 4. Personalized & coordinated engagement Illustration When Becky watches TV, audience insights are leveraged to personalize the engagement We know: • Service history & preferences • Preferred media, channel & cadence • Transaction & response behavior • Social influence We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has bought several smaller kitchen items using her store card both online and in the store and she clicked on an email link featuring kitchen appliances. Create this experience across media / channels
  24. 24. 4. Personalized & coordinated engagement Illustration When Becky uses her iPhone, audience insights are leveraged to personalize the engagement We know: • Service history & preferences • Preferred media, channel & cadence • Transaction & response behavior • Social influence We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has bought several smaller kitchen items using her store card both online and in the store and she clicked on an email link featuring kitchen appliances. Create this experience across media / channels
  25. 25. Capability model for a connected world Key requirements Differentiated value of customers High performance matching engine • The top 30% make 500% of profit. The bottom 20% consume 400% of • Knowledge based for higher accuracy/flexibility. profit. Know the difference. • Support real-time & all digital formats. • Integrate central nervous systems & personalization engine. Partnership ecosystem Strategy, analytics & creative skills • Reach your audience with certainty. • Leverage external, multi-sourced & verified consumer insights • Business relationships & delivery integration with preferred advertising partners. • A safe haven for responsible matching of sensitive information. Personalization engine “Logical” central nervous system • Highly accurate audience recognition. • Correlate customer behavior with marketing/advertising across channels, • Integrated decision engine, deployable across channels. media over time. • Integrate matching engine & central nervous system. • Integrate existing databases. • Integrate matching & personalization engines.
  26. 26. Capability model for a connected world Delivering ROI Tech Firm Personalized experiences…...4-5X ROI $200 million revenue/yr $4.5 million OpEx/yr Concentrate ad spend………..3-5X ROI Retail Bank Connect web footprints $100 million EBIT/yr & outbound messaging….….....2X ROI CPG Firm Connect print & digital…….......4X ROI $500 million revenue/yr Connect call center & digital………………………...3-5X ROI Connect mobile & email….….7.5X ROI Connect TV/offline…………….17X ROI Target 15-30% of spend to redirect
  27. 27. What could have been owned but couldn’t become
  28. 28. What could have been owned but couldn’t become
  29. 29. What could have been owned but couldn’t become
  30. 30. What could have been It’s not enough… A great customer base A great product A great strategy A great team Darwin always wins. Will you?
  31. 31. Thank you. Questions?

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