Redefining value for a connected world - A discussion of the undercurrent of change in the business of marketing and a deep dive into the 9 key categories of customer insight necessary to drive high performance marketing.

1. UNLOCKING VALUE
REDEFINING MARKETING FOR A CONNECTED WORLD
TIM SUTHER
CHIEF MARKETING OFFICER, ACXIOM
KXEN MAY2011
®

2. TODAY’S QUESTIONS
1. What are the key dynamics affecting marketing?
2. What capabilities distinguish high performance marketing
organizations? What is the upside opportunity?
3. What are the key success factors for analytics?
4. What are the high payback tactics?
5. Your questions

3. THE END IS NEAR…
For marketing as we knew it
Consumers are boss
One night stands ≠ committed relationships
Yelling louder ≠ customer engagement
Media mix reflects yesterday’s consumption
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4. WHAT CAPABILITIES DISTINGUISH
HIGH PERFOMANCE MARKETING?
15-30% improvement opportunity for most companies
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5. MULTIDIMENSIONAL INSIGHT
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6. MULTIDIMENSIONAL INSIGHT
9 key categories of customer insight
Relationship Profile Interaction History Brand Advocacy
Customer segment history Service history Net Promoter Score
Product ownership history Promotion history Degree of social influence
Current & lifetime value Response history Brand metrics at customer level
Share of wallet Across channels
Marketing budget by customer
Product Propensities Media Preferences Channel Preferences
Propensities across the Media consumption Shopping pathway
conversion funnel Explicit preferences Preferred buying channel
Next best product to sell Implicit preferences Preferred research channel
Likelihood to recommend Context preferences Preferred service channel
Contact/cadence strategy
Geodemographics Interests & Attitudes Monetary Indicators
Age Optimism Income indicator
Occupation Purchase intent by category Wealth indicator
Gender Recreational interests Discretionary spending
Location Social Causes Real property indicators
Ethnicity
Family / size of household
Life stage / life events
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7. THE NEED FOR A PRIVATE EXCHANGE
Your audience, addressable anywhere, reached with certainty
YOUR MONEY.
YOUR INSIGHT.
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8. HOW DO I PRIORITIZE IN A WORLD
OF UNLIMITED CHOICE?
Maximize value from existing customers
Engage with customers “there”
Improve “intent harvest” from prospective buyers
Generate demand more insightfully
Substitute media & channel based upon actual
customer preference & behavior 8

9. UH, NOT EXACTLY…
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10. WHAT ARE HIGH PAYBACK TACTICS?
Customer lifecycle marketing
Focus on trigger-driven messaging along the life cycle
• 15x profit v. broadcast programs
• Pull customers (v. push products) – 3x revenue/email (retailer)
• Dynamic product offers - increased revenue 46% in stores & 17% online (tech
• Everything as a service
Integrate across media & channels
• Integrate mobile/email – 7.5x website spend retailer
• Integrate outbound/website– 2x bookings hotelier
Solicit customer input/action
• Preference center – HP Technology at Work
• Solicit ratings/reviews – conversations are crucial
• Design content to be viral – 2-4x link performance
Fundamentals matter
• Customer information decays 2%/month
• $144 million of commercial email won’t reach the inbox in 2014

11. WHAT ARE HIGH PAYBACK TACTICS?
Time & location-based marketing
Customer lifecycle marketing goes wireless
• SMS for time sensitive messages:18x return (retailer)
• Inventory availability drives “on premise” revenue: 5% conversion (casino)
• Solicit customer input/action: experiences, ratings, reviews, check-ins,
surveys
• Near-field communications/mobile commerce
Reach new buyers
• Loyalty enrollment via SMS: 280,000 new members, (retailer)
• Mobile advertising driven by your database
• Shopping apps, price comparison & QR codes play defense…and offense

12. WHAT ARE HIGH PAYBACK TACTICS?
Harvest Intent
Improve search visibility
• SEO - 80% of click throughs are organic
• Customize/monitor the landing experience
Drive conversion through personalization
• Dynamic personalization to “optimize the real estate”: 9x return (insurer)
• Algorithm-based recommendations: $100 million revenue uplift (telco)
Effectively re-market
• Retargeting via display or email – 12x return (e-Commerce site)
• Confirm chat with e-mail

13. WHAT ARE HIGH PAYBACK TACTICS?
Smarter demand generation
Find your high value audience. Filter out the rest.
• 80% of online advertising fails to reach its intended target.
• Collaborative Targeting: 11x return (retailer)
Make brand advertising actionable & accountable
• Interactive Television – coupons, samples, more information
• An emerging opportunity in online display. Brand represents just 5%
Leverage multidimensional insight
• Combine purchase, response, value & risk scores: $7600 deposit/household
increase for contacted households. Retail Bank
• Combine seasonality, customer potential, price elasticity, halo effects, social
influence: 3x room nights (Casino)
• Connected primary research: 5.5x improvement (telco - “cord/cable cutters”)

14. WHAT ARE HIGH PAYBACK TACTICS?
Media & channel substitution
Arbitrage duplicative contacts based on preferences
• $112 billion in US advertising wasted per year. What Sticks
• Email & print:4x revenue/email (leading publisher)
Substitute based on preferences
• From mass to targeted:10% revenue increase (multi-format retailer)
• From call center to self serve: $4.5 million expense savings/yr (technology
firm)
• From print to digital: 22% conversion in 45 days (airline)
• From paid search to organic search & display: 52% better CPA (Google)
• From paid to earned/curated

15. THE RENAISSANCE
“…in Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed,
but they produced Michelangelo, Leonardo da Vinci, and the Renaissance.
In Switzerland they had brotherly love - they had 500 years of democracy and peace, and
what did that produce? The cuckoo clock.”
- Harry Lime, The Third Man

16. OUR RENAISSANCE
Key takeaways for a connected world
Not all customers are created equal. Engage/invest accordingly.
Prioritize programs by impact upon customer lifetime value.
Target your multi-dimensionally defined audience . Other
definitions waste money.
Leverage a safe haven to “anonymize & match” proprietary
customer data. Demand key partners participate.
Remember every interaction & learn. Personalize, coordinate,
test & measure
Play the data as it lies. Be “in market” in a career relevant
timeframe.
Harvest “easy money” while pursuing “big money”
4 interrelated capabilities drive high performance. Invest in them
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17. FOR MORE INFORMATION
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18. THANK YOU
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