Making marketing personal with customer analytics requires a holistic approach. Early adopters have used analytics to gain competitive advantages and outpaced others by expanding analytic use. Experienced organizations take one of two paths - collaborative or specialized - to become transformed. The marketing alignment process identifies key variables like behavior, attitude and activity metrics to deliver short and long term return on marketing investment. Consortium models are emerging to provide additional customer insights and improve techniques.

1. Outcome Focused Analytics
Making Marketing Personal with Customer Analytics
1 © 2012 IBM Corporation

2. 1 Marketing Challenges
Today’s digital revolution and empowered consumer are producing many
tough marketing challenges that are leaving CMOs struggling to respond
Marketing Priority Matrix
1 Data explosion
Under- 2 Social media
preparedness 1 3 Growth of channel and device choices
70
2
4 Shifting consumer demographics
3
5 Financial constraints
4 6 Decreasing brand loyalty
60
5 7 Growth market opportunities
6
10 7 9
8 ROI accountability
8
11
9 Customer collaboration and influence
50 12 10 Privacy considerations
13
11 Global outsourcing
Factors
impacting 12 Regulatory considerations
40
marketing 13 Corporate transparency
0 20 40 60 Mean
2 Source: 2011 Global Chief Marketing Officer Study industry © 2012 IBM Corporation

3. 1 Marketing Challenges
Where is this data explosion coming from?
Every day, the New York
Stock Exchange captures
1 TB of trade information. 5 Billion mobile phones in
12 TB of tweets being
created each day. use in 2010. Only 12% were
smartphones.
Every second of HD video More than 30M networked
generates > 2,000 times as many sensor, growing at a rate
bytes as required to store a >30% per year.
single page of text.
What is your business doing with it?
3 Source: McKinsey & Company, May 2011 © 2012 IBM Corporation

4. 2 Analytics Insights
Customer-centric analytics is the primary functional objective across macro
industry groups, as well
Consumer Goods Financial Services Healthcare/Life Sciences
5% 2%
4%
7% 16% 10%
10%
50% 16% Customer-
51% centric
21%
20% 59% outcomes
11% 19% Operational
optimization
Risk /
Manufacturing Public Sector financial
Telecommunications management
1% New business
6% 6%
6% model
13% 18%
32%
Employee
42%
collaboration
13% 27% 11%
62%
8%
26% 30%
Findings from the 2012 research collaboration of IBM Institute for Business Value
and Saïd Business School, University of Oxford
4 © 2012 IBM Corporation

5. 2 Analytics Insights
Consumer purchasing patterns are changing slower than implied by the
media hype
5 © 2012 IBM Corporation

6. 2 Analytics Insights
The patterns and trends you notice in your market sector can dictate the
approach you take towards higher ROMI
Habit Formation Point – Purchasing Pattern
By CHARLES DUHIGG -
Published: February
16, 2012
6 © 2012 IBM Corporation

7. 2 Analytics Insights
You can know who the customers are, how to reach them and how to gain
their TRUST
Retailer
Location Experience
Intentions
Product
Demographics Experience
Preferences
Communication
Conditions
Timeliness
Behaviors
Interests
Advocacy Spend
Value Points
Linguistic Style
7 © 2012 IBM Corporation

8. 3 Smarter Marketing
The ability to create competitive advantage using analytics surged
dramatically in 12 months, impacting the bottom-line
Source: 2011 study MIT / IBM IBV - surveyed 4,500 executives, managers and analysts from more
than 120 countries and representing more than 30 industries
8 © 2012 IBM Corporation

9. 3 Smarter Marketing
Early adopters have outpaced others in gaining competitive advantage by
expanding the use of analytics
9 © 2012 IBM Corporation

10. 3 Smarter Marketing
We also examined what happens between Aspirational and Transformed –
the space between the two end-point benchmarks
Paths to Transformation
High Enterprise
driven
Transformed
Information Data-
management Experienced oriented
proficiency culture
Aspirational
Line-of-
Low
business
driven
Low High
Analytic skills and tools
proficiency
Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value
10 analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2012 IBM Corporation

11. 3 Smarter Marketing
Experienced organizations one of two paths, each focusing on different
competencies, to move towards Transformed
Paths to Transformation
High Enterprise
driven
Transformed
Collaborative
path
Information Data-
management Experienced oriented
proficiency culture
Specialized
path
Aspirational
Line-of-
Low
business
driven
Low High
Analytic skills and tools
proficiency
Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value
11 analytics research partnership. Copyright © Massachusetts Institute of Technology 2011.
© 2012 IBM Corporation

12. 3 Smarter Marketing
The marketing alignment process identifies the key variables necessary to
deliver short to long term ROMI
Business Variables
Define Outcomes Measure Action Analyze Sentiment Measure Activity
Business Behavior Attitude Volume
Metric Metric Metric Metric
*** *** *** ***
* * * *
* * * *
• Customer
• Improve Store • Purchases • Open Rates
recommends
Sales
• Consumer
• Increase Online • Click Through
• Loyalty Sing-up leaves positive
Sales Conversion Rates
comments
*** *** *** ***
* * * *
* * * *
12 © 2012 IBM Corporation

13. 3 Smarter Marketing
Moneyball: The Art of Winning an Unfair Game
Outcome Focused Analytics –
“By re-evaluating the strategies that produce
wins on the field…”
Purpose of Analytics –
“"the ruthless drive for efficiency that
capitalism demands."
A Moneyball lesson for business
- focus on the profitable customers and
prospects
13 © 2012 IBM Corporation

14. 3 Smarter Marketing
Consortium based models are emerging to provide additional insights about
customers and improve marketing techniques
Consortium
Leaders
Partners
Approach
Shoppers
14 Revenue © 2012 IBM Corporation

15. 3 Smarter Marketing
Using analytics successfully to drive business results requires a holistic
approach across the interdependent aspects of business
Manage Understand Act
15 © 2012 IBM Corporation

16. Appendix
© 2012 IBM Corporation: IBM Telecommunications Industry 16