Hope is Not a Strategy - Tim Suther, Marketing Revolution in Brazil

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Tim Suther, Acxiom CMO, at a marketing event in Brazil called Marketing Revolution.

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Hope is Not a Strategy - Tim Suther, Marketing Revolution in Brazil

  1. 1. HOPE IS NOT ASTRATEGYA capability model forsuccessfully reaching and engaging consumersNovember 17, 2011© 2011 Acxiom Corporation. All Rights Reserved.
  2. 2. ABOUT ACXIOM> Vision: to be the most trusted partner for providing actionable customer insights to marketing leaders and their suppliers worldwide> Mission: Acxiom refines data into insights to help marketing leaders make better business decisions> Quick Facts: • 8,800 clients in 40 countries • Process 18 trillion consumer updates / year • Over 7,000 managed databases • NASDAQ: ACXM
  3. 3. ACXIOM TRUSTED PARTNERSFinancial ServicesAutomotiveRetailCommunications, Media & TechnologyInsuranceTravel & Entertainment The trademarks and registered trademarks on this page are the property of their respective owners. 3
  4. 4. MARKETING IS AT A CRITICAL JUNCTURE! (JUST LIKE THE TRAFFIC IN SÃO PAULO) 4
  5. 5. A crisis in customer engagement Just 8% of their customers agreeSource - Bain
  6. 6. A crisis in insight & focus…2Forrester Research
  7. 7. 3comScore
  8. 8. CAPABILITY MODELFOR A CONNECTED WORLD
  9. 9. CAPABILITY MODELFOR A CONNECTED WORLD
  10. 10. 1. REACH / ENGAGE YOUR AUDIENCECustomer value varies greatly + 500% Contribution to Overall Profit 0 Customer Value Segment Top 30% Next 50% Bottom 20% Contribution to Overall Profit - 400%
  11. 11. 1. REACH / ENGAGE YOUR AUDIENCEMost firms are not getting their fair share of valuable buyers Retailer 1 Retailer 2 UV IndexUV Index Personicx Consumer Segments Personicx Consumer Segments Cookware/Kitchen Clothing/Apparel Buyer Accessories BuyerUV Index UV Index Personicx Consumer Segments Personicx Consumer Segments Acxiom, comScore
  12. 12. 1. REACH / ENGAGE YOUR AUDIENCEValuable buyers are hard to recognize Portal 1 Portal 2 UV IndexUV Index Personicx Consumer Segments Personicx Consumer Segments Portal 3 Portal 4UV Index UV Index Personicx Consumer Segments Personicx Consumer Segments Acxiom, comScore 13
  13. 13. 1. REACH / ENGAGE YOUR AUDIENCEValuable buyers are hard to recognize TV Network 1 TV Network 2 UV IndexUV Index Personicx Consumer Segments Personicx Consumer Segments TV Network 3 TV Network 4UV Index UV Index Personicx Consumer Segments Personicx Consumer Segments
  14. 14. Therefore,Most Firms…Under-invest inhigh value relationshipsOver-invest inlow value relationships
  15. 15. 1. REACH / ENGAGE YOUR AUDIENCE Narrowcast, not broadcast Retailer 1 v Portal 1 This retailer’s best customers are under-represented on this portalUV Index PersonicX Consumer Segments
  16. 16. CAPABILITY MODELFOR A CONNECTED WORLD
  17. 17. 2. MULTIDIMENSIONAL INSIGHTWhat do you see?
  18. 18. 2. MULTIDIMENSIONAL INSIGHTJust about online context / behavior?
  19. 19. 2. MULTIDIMENSIONAL INSIGHTJust about online context / behavior?
  20. 20. RELIANCE ON THE 18-49 DEMOGRAPHIC ISHAZARDOUS TO ALL MEDIA AND MARKETERS David Poltrack, CBS
  21. 21. IF I ASKED MY CUSTOMERS WHAT THEY WANT, THEY SIMPLY WOULD HAVE SAID A FASTER HORSE Henry Ford 22
  22. 22. 2. MULTIDIMENSIONAL INSIGHT
  23. 23. CAPABILITY MODELFOR A CONNECTED WORLD
  24. 24. 3. MARKETING CENTRAL NERVOUS SYSTEMData quality matters
  25. 25. CAPABILITY MODELFOR A CONNECTED WORLD
  26. 26. CONSUMERS ARE BOSSI’m in charge here…and you’re not REMEMBER EVERY INTERACTION & LEARN
  27. 27. 4. PERSONALIZED & COORDINATEDENGAGEMENTIllustration Meet Isabela When Isabela visits a site, audience insights are leveraged to personalize the Age 37 engagement Married, 2 children, high value We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media / channels
  28. 28. 4. PERSONALIZED & COORDINATEDENGAGEMENTIllustration Meet Isabela When Isabela uses her iPhone, audience insights are leveraged to personalize the Age 37 engagement Married, 2 children, high value We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media / channels
  29. 29. 4. PERSONALIZED & COORDINATEDENGAGEMENTIllustration Meet Isabela When Isabela watches TV, audience insights are leveraged to personalize the Age 37 engagement Married, 2 children, high value We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media / channels
  30. 30. THE NEED FOR A SAFE HAVENYour audience, addressable anywhere, reached with certainty YOUR MONEY. YOUR INSIGHT. 34
  31. 31. CAPABILITY MODELFOR A CONNECTED WORLD
  32. 32. CAPABILITY MODEL FOR A CONNECTED WORLD+15-30% +10-15% +5-7%Marketing ROI Customer portfolio value Points of margin
  33. 33. CAPABILITY MODEL FOR A CONNECTED WORLDEasy Money Big MoneyPersonalized experiences…...4-5X ROI Tech Firm $200 million revenue/yrConcentrate ad spend………..3-5X ROI $4.5 million OpEx/yrConnect web footprints Retail Bank& outbound messaging….….....2X ROI $100 million EBIT/yrConnect print & digital…….......4X ROI CPG FirmConnect call center $500 million revenue/yr& digital………………………...3-5X ROIConnect mobile & email….….7.5X ROIConnect TV/offline…………….17X ROI
  34. 34. NOW WHAT?
  35. 35. HOPE IS NOT A STRATEGY! 40
  36. 36. CAPABILITY MODELFOR A CONNECTED WORLD Top 10 best practices Applied Insight Prioritize your proprietary insight Data rights as part of every ad buy discussionSafe haven to reach mutual customers of trusted business partners Strategy Prioritize deeply branded experiences Define success as improving customer portfolio value Alter media mix and primary research approach Partners should be agents not principals Optimize the enterprise Organizational CapabilityFuse proprietary analytics with customer recognition to personalize Marketing central nervous system to influence and sense 41
  37. 37. UH, NOT EXACTLY… 42
  38. 38. WHAT COULD HAVE BEEN owned but couldn’t become
  39. 39. WHAT COULD HAVE BEEN owned but couldn’t become
  40. 40. WHAT COULD HAVE BEEN owned but couldn’t become
  41. 41. 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?
  42. 42. THANK YOU. OBRIGADO. QUESTIONS? PERGUNTAS?Acxiom BrasilSão Paulo | +55 11 3052 2111Alameda Lorena, 638/114Jardim Paulista, São Paulo, SP01424-000Porto Alegre | +55 51 3230 4400Av. Padre Cacique, 320/3º andar BMenino Deus, Porto Alegre, RS90810-240www.acxiom.com.br © 2011 Acxiom Corporation. All Rights Reserved.
  43. 43. CAPABILITY MODEL FOR A CONNECTED WORLD +15-30% +10-15% +5-7% Marketing ROI Customer portfolio value Points of margin> Increase targeting efficiency & > Improve health and breadth of > Increase number of enduringly better attribute results to spend. insight about customers. loyal customers.> Better influence & sense > Acquire & extend more profitable > Effectively cultivate word of consumer behavior. relationships. mouth.> More effective media > Redirect less profitable > Optimize use of pricing substitution. Coherently integrate relationships. incentives. new media. > Establish CLV-oriented KPIs to > De-commoditize intent.> Improve marketing results with guide decision-making. > Minimize auction risk of your trusted partners. > Optimize customer segments & consumer insight.> Recapture value from ad tech multichannel contact strategies. intermediaries. > Increase number of recognizable> Improve test & learn consumers. performance. > Increase ability to recognize> Integrate & rationalize systems to consumers across channels. reduce cost.> Faster time to market.> Real-time personalized offers.

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