XCMO 2013: Omnichannel Audience Management

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The Winterberry Group's Jonathan Margulies details the current state, key trends and critical strategies required to be successful in today’s complex, cross-channel marketing environment.

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  • “We talk a lot at Macy’s about “omnichannel” retailing. Our customer is multi-dimensional. She is busy at work and out with friends. She always has her mobile device in her hand. She’s active on Facebook and Twitter and YouTube and a dozen other social media sites. She is smart and demanding. We want that customer to be able to interact with Macy’s no matter where she is or how she shops. It makes no difference to us whether she buys something in our store or online … or whether she is shopping from her desktop computer or her Droid or her iPad. Macy’s best customers are those who shop us in-stores and online. We have a whole series of strategies in place to drive our store customers to the Web, and our online customer to the stores. We strive to have a 360-degree view of the customer. Today’s customer is not monolithic. And that’s the way we are approaching our customer.” – Terry Lundgren, Macy’s, 2010
  • XCMO 2013: Omnichannel Audience Management

    1. 1. Taking Cues from the Customer: “Omnichannel” and the Drive for Audience Engagement Jonathan C. Margulies Managing Director October 10, 2013
    2. 2. About Winterberry Group • Corporate Strategy • Marketing System Engineering • M&A Due Diligence Support • Market Intelligence • Investment Banking, through
    3. 3. Why?: The Origins of “Omnichannel” What?: Defining a New Approach to Customer Engagement How?: Building a Roadmap for Enterprise Success
    4. 4. In 1972, Young & Rubicam Introduced “The Whole Egg” “I rarely saw how this synergistic methodology created something bigger than any of its unilateral parts” —Peter Himler, Forbes.com (2012)
    5. 5. Over Time, Other Movements Would Emerge, Such as “Integrated Communications”… “Little has been said, however, abo ut its theoretical robustness... It’s a management fashion” —Joep Cornelissen and Andrew Lock, Journal of Advertising Research (2000)
    6. 6. … And, Perhaps Most Prominently, “Multichannel Marketing” “The greatest distinction I’ve found is that which lies between the various degrees of bull$&!@ that cover this entire topic” —Wiljo Krechting, Ecompunk.com (2013)
    7. 7. But Three Evolving Dynamics Have Changed Marketer Thinking The fragmentation of media—making it harder for marketers to engage valuable audiences The growth of “customer-centric” marketing— driven by consumers who manage information, consideration and purchasing on their own terms The challenge of retrofitting legacy marketing infrastructures to manage interactions driven by data and technology (rather than by media channel)
    8. 8. Not Surprisingly, Interest in New Approaches is Surging 83% of panelists said their company would likely invest in “omnichannel” approaches in the near future 92% agree there is “real value” to be gained from pursuing an omnichannel approach to customer engagement
    9. 9. Why?: The Origins of “Omnichannel” What?: Defining a New Approach to Customer Engagement How?: Building a Roadmap for Enterprise Success
    10. 10. “Omnichannel” Originated in The Retail World—To Address a Range of Challenges Customer Experience Merchandising Management P&L Optimization
    11. 11. At Its Core, “Omnichannel” is a Strategy to Empower Mutual Value
    12. 12. But What Really Makes It Different? Driven by enterprise business objectives—not tactical marketing requirements Made possible only by recent developments in data, technology and media Aimed at driving informed customer engagement, not “lift,” “response,” “awareness” or even “ROI”
    13. 13. More Than Anything Else, It’s About Driving Profitable Interactions with the Brand Which of the following do you believe are the likely benefits of adopting an “omnichannel” customer engagement strategy? Heightened Brand Awareness Improved Customer Response Rates Revenue Growth 70% 75% 80% 85% Percentage of panelists who agree 90% 95%
    14. 14. But It’s Not Just About Media—It’s About Transforming Infrastructure Holistic Marketing The “New 4Ps” Process of Marketing Operations Management Platforms Processes Partners Recruit, retain and appropriately compensate the right talent Technologies and tools that support customer insight, decisioni ng and execution Workflows designed to promote the optimal customer dialogue The network of third parties entrusted to support capacity, innovati on and continuous improvement Effective People Management People
    15. 15. Why?: The Origins of “Omnichannel” What?: Defining a New Approach to Customer Engagement How?: Building a Roadmap for Enterprise Success
    16. 16. Customer Analytics and Multiplatform Attribution Why? Understanding the customer is fundamental to the development of products, brand messages and offers that promote a meaningful dialogue Create a unified data structure leveraging multiple inputs—online and offline, CRM and prospect, PII and anonymous—to fuel a robust customer view Maintain an ongoing data sourcing capability Deploy best-in-class integration, visualization and segmentation tools (such as a DMP) Develop and/or source multiplatform attribution models and supporting technologies
    17. 17. Rich Content—Optimized for Context and Strategic Intent Why? Engagement begins with user experiences that drive real value. As consumers “take control of the dialogue,” marketers must expand the breadth, quality and relevance of their targeted content Leverage content repositories, libraries and personalization engines geared to orchestrate the dynamic management and sharing of digital resources Automate the execution of targeted content wherever possible—being mindful that the demand to create variable content that’s credible at an individual level may require deeper human interaction than may seem necessary Leverage emerging media formats (such as “native advertising”) to reinforce the holistic value of a user experience that seamlessly blends editorial and paid content
    18. 18. Operational Infrastructure Geared to the Needs of Customer Engagement Why? An organization’s ability to keep pace with rapid change will depend on its internal readiness— and many enterprise organizations remain structured around outdated legacy systems Assemble a cross-disciplinary steering committee and design a realistic, phased implementation plan with “quick wins” to reinforce senior-level buy-in Assess existing resources—including data, creative assets, media commitments & technology tools—to understand gaps and crystallize needs Outline channel-agnostic use cases that support the organization’s customer engagement goals Investigate internal and partner-provided options for addressing those objectives—with the goal of building a modular solution “stack” which includes technology and service-driven solutions
    19. 19. Cross-Platform, Audience-Driven Media Products Why? The ability to target and engage specific audience segments can drive better engagement (and lifetime customer value). For media companies, this shift refocuses attention to its most lucrative asset—its audience Expand the audience-driven media paradigm beyond its current narrow scope to encompass a range of addressable media including TV, digital video, mobile, direct mail, etc.
    20. 20. Integration of Deeply Engaging—Yet Effectively “Disconnected”—Media Channels Why? To deliver customer engagement that’s agnostic of channel requires the development of a channel portfolio responsive to customer demand Regularly assess media mix to identify opportunities to leverage emerging channels—as well as those that offer interactive engagement—but might be managed disparately now Apply the same infrastructure—grounded in insight, powered by continuous data analysis and furthered by automated and/or rulesdriven execution—to new and experimental media Cast aside legacy distinctions between the value of “digital” and “traditional” media— with the goal of leveraging a combination of tools to foster a robust level of engagement
    21. 21. Elevation of the “Omnichannel Strategist” As A Senior Role Why? To achieve omnichannel success, the practice must be backed by the right resources and influencers within an organization (and led by someone who is not distracted by other responsibilities) Determine interdisciplinary stakeholders whose contributions would best support the expansion of an omnichannel strategy for the enterprise— and task one among them to lead the effort Identify a series of clear performance objectives for the senior strategist to pursue, with the goal of elevating the role to “C-suite” equivalent Assign broad organizational oversight to the strategist and her team, including responsibility for customer strategy and insights, channel coordination, data management, marketing technology and other functions
    22. 22. Why Omnichannel? And What’s Next? Drives content aligned with expectations of a personalized, “social media society” Sets the stage for the next transformation—to an automated “programmatic” capability Capitalizes on the power of insight, enabling deeper understanding of the customer and her needs Elevates marketing (and related functions) to a higher level of insight, influence and importance
    23. 23. For Further Reading… Download at: www.winterberrygroup.com/ourinsights
    24. 24. Thanks! Jonathan C. Margulies Managing Director jmargulies@winterberrygroup.com @jcmargulies www.winterberrygroup.com @WinterberryGrp

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