A CUSTOMER CENTRICITY
PARADOX
State of the Industry Survey




            Tim Suther, Acxiom Chief Marketing & Strategy Officer
            September 19, 2012

            Digiday Brand Conference, September 2012



  © 2012 Acxiom Corporation. All Rights Reserved.
2
SURVEY RESPONDER PROFILE
A balanced distribution of buy & sell             A diverse set of industry marketing
side…& job roles:                                 experience is represented:

                                                                    Retail                        36%
                                                   Travel & Entertainment                        33%
                             Advertiser &        Media & Communications                         32%
                             Agency
     48%         52%                                          Technology                        31%
                             Media, Tech &
                             Other                                   CPG                        31%
                                                              Health Care                 24%
                                                              Automotive                 22%
                                                                 Telecom                20%
                                                  Finance / Retail Banking          18%
                                                                Insurance           18%
                                                    Finance / Credit Cards        15%
       28%                   Marketing & Sales
                                                               Restaurant         15%
                                                    Finance / Investments         14%
                             Analysis &
                             Audience Mgt                       Education     12%
                72%
                                                             Government      9%



                          259 surveyed in August 2012
                                                                                                        3
CONCERNS & CHALLENGES
   Marketers top concerns are customer                             Marketer top challenges are
   centricity, new media & ROI:                                    consistency, integration & inefficiency…but
                                                                   not privacy:
    Understanding customers and                              51%                                                        37%
                                                                   Providing consistent and relevant
         engaging them with
                                       6%                             engagement for customers         7%
    personal, relevant experiences


  Adopting new media technology               23%                     Integrating multiple back-end               26%
  such as social, mobile and video          17%                            customer databases                 19%


                                             21%                    Reducing waste and inefficiency           20%
   Rationalizing budgets with more
                                                                    when targeting and serving the
        effective ROI metrics          6%                                                              8%
                                                                     right customers and prospects

Collaborating with direct marketing
                                      3%                              Coordinating the timing and       10%
 to understand what’s working for
                                                                       cadence of multi-channel
them and how digital can improve                       39%                                                  13%
                                                                     communications and feedback
              results
                                                                     Ensuring privacy and providing
Access to and integrating back-end    1%                              sufficient notice, choice and    8%
       customer databases                              37%           transparency in gathering and                            54%
                                                                               using data


               Most Important          Not Important                             Most Important        Not Important

                                                                                                                                    4
A CUSTOMER CENTRICITY PARADOX
 Most highly self-assess their own                     Yet, few can measure value at customer
 customer-centric capabilities…                        level:

 We have a relentless focus on
  building customer insights to
                                                 48%
better understand and recognize
 high value customer segments


  We invest and focuse more on                                                     21%
                                           19%
   acquisition than retention


Both direct response and digital
marketers collaborate on timing
                                         14%
and creative to more efficiently
 reach customers across all…
                                                                 79%

   We invest and focus more on
                                         14%
    retention than acquisition


    We're integrating back-end
   systems to reduce waste and
                                    5%                       Have or will have value score for each
  inefficiency while coordinating
  multichannel campaigns and…
                                                             customer




                                                                                                      5
POOR DATA INTEGRATION ABOUNDS
Most poorly integrate data from online   Most poorly recognize customers in
& offline sources                        real-time




                           30%                                           26%




           70%                                        74%




         Advanced   No/Suboptimal             Have channels connected or have a central
                                              repository
                                              No or outbound or social only




                                                                                          6
SILOS ARE RAMPANT…
AND IMPEDE CUSTOMER CENTRICITY
How many customer databases need to                  Biggest barriers to integrated customer-
be accessed to integrate marketing?                  centric marketing:

             10+ databases    9%



            7-10 databases   6%

                                                               24%
             4-6 databases               28%

                                                                                  54%
             1-3 databases                     33%
                                                              22%

We have everything we need
                                   13%
  or is already integrated


  We don't have a customer                                       Data or Technology
                                  11%                            Resources
         database
                                                                 Measures & Incentives



                                                                                                7
MARKETERS ARE JUST BEGINNING THE
INTEGRATION JOURNEY
Most marketers blend or borrow   A variety of online targeting is being
creative from online & offline   used. Behavioral leads the way:
campaigns:
                                   Yes, we leverage behavioral
                                                                            41%
                                     and other ad targeting


            16%
                                  No, we don't do any targeting
                                                                      19%
                                             online


                                       Yes, we extend the full
                                    capabilities of our database     16%
                                     into our online campaigns
                        84%
                                   Yes, we match marketing to
                                                                    14%
                                     site visitors via cookies


                                   Yes, we match marketing to
                  Yes    No        site visitors via cookies, and
                                                                    11%
                                   name and other addressable
                                                 data



                                                                                  8
CUSTOMER CENTRICITY
REMAINS AN ATTRACTIVE GOAL




          Acxiom client experience

                                     9
MARKETERS SEEK TO MOVE FORWARD
Emphasis shifting to customer marketing                       Targeting & attribution are top data
& branding                                                    priorities

                                                    25%          Addressable data to better
Interacting with our customers
                                                                 understand and reach our                30%
 where they spend their time                            26%              audience

  Loyalty and retention/giving                20%              A way to borrow creative to
   customers more options to
                                  5%                          coordinate more personalized    2%
     connect with the brand
                                                                         offers

      Branding/extending our                      21%
                                                               To better understand results
      regular branding efforts              17%                  from campaigns to know                  28%
                                                                     what's working

                                                    25%
   Acquisition/direct response
                                                        26%
                                                                           All of the above                    40%

    More options to expand             8%
  targeting beyond acquisition                          27%
                                                                        None of the above          12%

         Most Important          Least Important


                                                                                                                     10
SOME BRANDS ARE SEEN AS ROLE MODELS
Common themes…

  > Engagement feels authentic to brand

  > Institutional memory enables personalized & integrated
    experiences. Brands do for, not to, customers

  > Sustaining loyalty/preference…brands create more
    value than they capture




                                                             11
SUMMARY
Customer centricity is an aspirational goal…not yet reality…for
most marketers
  > 70% have no or suboptimal online/offline integration
  > 80% don’t have or won’t have customer value scores
  > 74% can’t recognize customers in real-time

Marketers may be underestimating privacy issues/impact
To capture large payoffs, marketers are increasingly focused
upon…
  > Customer marketing & branding
  > Targeting & attribution as top data priorities




                                                                  12
THANK YOU.




© 2012 Acxiom Corporation. All Rights Reserved.

Digiday Brand Conference: State of the Industry with Acxiom: Better Connections, Better Results

  • 1.
    A CUSTOMER CENTRICITY PARADOX Stateof the Industry Survey Tim Suther, Acxiom Chief Marketing & Strategy Officer September 19, 2012 Digiday Brand Conference, September 2012 © 2012 Acxiom Corporation. All Rights Reserved.
  • 2.
  • 3.
    SURVEY RESPONDER PROFILE Abalanced distribution of buy & sell A diverse set of industry marketing side…& job roles: experience is represented: Retail 36% Travel & Entertainment 33% Advertiser & Media & Communications 32% Agency 48% 52% Technology 31% Media, Tech & Other CPG 31% Health Care 24% Automotive 22% Telecom 20% Finance / Retail Banking 18% Insurance 18% Finance / Credit Cards 15% 28% Marketing & Sales Restaurant 15% Finance / Investments 14% Analysis & Audience Mgt Education 12% 72% Government 9% 259 surveyed in August 2012 3
  • 4.
    CONCERNS & CHALLENGES Marketers top concerns are customer Marketer top challenges are centricity, new media & ROI: consistency, integration & inefficiency…but not privacy: Understanding customers and 51% 37% Providing consistent and relevant engaging them with 6% engagement for customers 7% personal, relevant experiences Adopting new media technology 23% Integrating multiple back-end 26% such as social, mobile and video 17% customer databases 19% 21% Reducing waste and inefficiency 20% Rationalizing budgets with more when targeting and serving the effective ROI metrics 6% 8% right customers and prospects Collaborating with direct marketing 3% Coordinating the timing and 10% to understand what’s working for cadence of multi-channel them and how digital can improve 39% 13% communications and feedback results Ensuring privacy and providing Access to and integrating back-end 1% sufficient notice, choice and 8% customer databases 37% transparency in gathering and 54% using data Most Important Not Important Most Important Not Important 4
  • 5.
    A CUSTOMER CENTRICITYPARADOX Most highly self-assess their own Yet, few can measure value at customer customer-centric capabilities… level: We have a relentless focus on building customer insights to 48% better understand and recognize high value customer segments We invest and focuse more on 21% 19% acquisition than retention Both direct response and digital marketers collaborate on timing 14% and creative to more efficiently reach customers across all… 79% We invest and focus more on 14% retention than acquisition We're integrating back-end systems to reduce waste and 5% Have or will have value score for each inefficiency while coordinating multichannel campaigns and… customer 5
  • 6.
    POOR DATA INTEGRATIONABOUNDS Most poorly integrate data from online Most poorly recognize customers in & offline sources real-time 30% 26% 70% 74% Advanced No/Suboptimal Have channels connected or have a central repository No or outbound or social only 6
  • 7.
    SILOS ARE RAMPANT… ANDIMPEDE CUSTOMER CENTRICITY How many customer databases need to Biggest barriers to integrated customer- be accessed to integrate marketing? centric marketing: 10+ databases 9% 7-10 databases 6% 24% 4-6 databases 28% 54% 1-3 databases 33% 22% We have everything we need 13% or is already integrated We don't have a customer Data or Technology 11% Resources database Measures & Incentives 7
  • 8.
    MARKETERS ARE JUSTBEGINNING THE INTEGRATION JOURNEY Most marketers blend or borrow A variety of online targeting is being creative from online & offline used. Behavioral leads the way: campaigns: Yes, we leverage behavioral 41% and other ad targeting 16% No, we don't do any targeting 19% online Yes, we extend the full capabilities of our database 16% into our online campaigns 84% Yes, we match marketing to 14% site visitors via cookies Yes, we match marketing to Yes No site visitors via cookies, and 11% name and other addressable data 8
  • 9.
    CUSTOMER CENTRICITY REMAINS ANATTRACTIVE GOAL Acxiom client experience 9
  • 10.
    MARKETERS SEEK TOMOVE FORWARD Emphasis shifting to customer marketing Targeting & attribution are top data & branding priorities 25% Addressable data to better Interacting with our customers understand and reach our 30% where they spend their time 26% audience Loyalty and retention/giving 20% A way to borrow creative to customers more options to 5% coordinate more personalized 2% connect with the brand offers Branding/extending our 21% To better understand results regular branding efforts 17% from campaigns to know 28% what's working 25% Acquisition/direct response 26% All of the above 40% More options to expand 8% targeting beyond acquisition 27% None of the above 12% Most Important Least Important 10
  • 11.
    SOME BRANDS ARESEEN AS ROLE MODELS Common themes… > Engagement feels authentic to brand > Institutional memory enables personalized & integrated experiences. Brands do for, not to, customers > Sustaining loyalty/preference…brands create more value than they capture 11
  • 12.
    SUMMARY Customer centricity isan aspirational goal…not yet reality…for most marketers > 70% have no or suboptimal online/offline integration > 80% don’t have or won’t have customer value scores > 74% can’t recognize customers in real-time Marketers may be underestimating privacy issues/impact To capture large payoffs, marketers are increasingly focused upon… > Customer marketing & branding > Targeting & attribution as top data priorities 12
  • 13.
    THANK YOU. © 2012Acxiom Corporation. All Rights Reserved.

Editor's Notes

  • #12 5 consistently mentioned brands have common themes…Leverage digital mediaCreate enthusiastic brand advocatesFor incredible retentionWhere engagement feels naturalWith fluidity in marketing across channelsAMAZONAmazon, good data tracking and reco engineAmazon - integration of data to provide customer-centric offers across multiple screensAmazon- they recognize customers and meet customer needs wellAmazon. They have loyal customers who keep returning purchase after purchase.amazon - excellent in knowing what their consumers wantAPPLEApple-- built amazing consumer-centric organizations leveraging PR and digital media; enthusiastic brand advocates, incredible retentionApple - they marry product and service seamlessly and add value without ever appearing disruptive or selling.Apple, ability to get across "magic" of products in campaignsZapposZappos is most interesting b/c in addition to performance marketing efforts they relentlessly measure their brand attributes in "delivering happiness" so it all flows from the core brand strategy.Zappos - amazing customer loyalty and retentionZappos. Engagement feels natural; excellent listeners; truly understand audience segments.Starbucksstarbucks--fluidity they show in mktg across channelsStarbucks, their gold card program. Viacom, their focus on data (sell and buy) to drive their businessStarbucks. Personal experience with their top notch CRM/loyalty efforts.Southwest airlines -- regular touches, value customer tools, good reward program for loyalty
  • #13 70% - LACK OF COORDINATION AMONG ONLINE, OFFLINE AND CHANNELS