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Move from campaigns to customers:
marketing to today’s digitally savvy consumer

Sandy Martin Sr. Strategy Consultant,
Welcome to the next
era of marketing.
Strong individual
relationships…
But no scale.
Great scale…

But at the expense of
the relationship
How do we deliver amazing
individual experiences, only at
massive scale?
Those who individualize experiences & build
relationships are rewarded.
Deliver individualized experiences:

Sources: Resp...
Consumers are flocking to brands that can deliver
individualized experiences.
183%

Values its
customers

193%

Respects
m...
But marketing today is still driven by the campaign,
not the individual consumer.
Campaign dictates
the message.

Campaign...
Old Mindset:
How do I maximize campaign conversion?
97% Ignored
…or Annoyed

3% Converted

The
Mass
Market

$
Back to the ...
The consumer has
moved on.
Half of consumers outright ignore non-personalized mass
marketing communications.
Marketers get stuck in a “Campaign Crisis”
Customer retention vs. send volumes for F500 publisher prior
to moving to the Relationship Era
Point of
Disengagement

Thi...
It’s time to move
into the next era
of marketing.

“Companies will be better off if they
stop viewing customer
engagement ...
It’s time to flip the model.
New Mindset:
How do I deliver amazing individual experiences?

Build profiles
& capture
permissions

Individually targeted...
New Approach:
Focus on the individual relationship.

Orchestrated
experiences deliver
5x higher conversion

$

Mass Market...
It Starts With a Customer
Journey.
Today’s consumers are cross-channel

Know me.

Engage me.

Lead me.

Consumers expect you
to know them across all
digital ...
CUSTOMER JOURNEY
Using Marketing to Move From Low to High Value

Customer Value

Social
Share

In-store
Purchase,
Opt-in

...
RELATIONSHIP METRIC:
Email Engagement Index

Repairing Relationships

Building Relationships

1,500,000
1,000,000

Use ana...
CUSTOMER JOURNEY
What Happens When Customers Leave the Optimal Path?

Customer Value

?
?
?

Customer Activity
Customer Ac...
USE ANALYTICS:
Actionable analytics drive results
Benefit:
Enterprise level customer insights

Analytics Complexity

Benef...
ANALYTICS FRAMEWORK:
Core Building Blocks

Segmentation

Measurement
Marketing ROI

• Campaign
• Channel ROI
• Attribution...
KNOW ME:

Customer Value

Using Analytics to Reveal New Marketing Opportunities



Analytics Insight: First Purchase
New ...
ENGAGE ME:
Integrated Lifecycle Display Program

This is individualization, automation and orchestration in action!
KNOW ME:

Customer Value

Using Analytics to Reveal New Marketing Opportunities



Analytics Insight: Customer Churn
Cust...
Customer Segmentation Approach

3
Attitudinal

• Psychographic
• Customer Modeling
• Brand Integration

• Drives audience ...
ENGAGE ME:
Customer Churn Mitigation Program

Activity Segment

+

Behavioral Segment

=

Churn Mitigation Hero

Dress1
• ...
KNOW ME:

Customer Value

Using Analytics to Reveal New Marketing Opportunities



Analytics Insight: Customer Loyalty
Ac...
Putting It Together:
Driving Scalable Customer-Led Marketing
1

Customer

Segments

NSM Programs

Know me:

Integrate & an...
Moving From Reactive to
Proactive Marketing

Segmented message ROI
Predictive message ROI

Behavior segments drive smarter...
Predictive Insights:
getting ahead of your customers

Optimize offers, cross-sell opportunities
conversion rate, email ROI...
LEAD ME:
Activity + Behavior Segmentation + Predictive Modeling

Activity Segment

+

Behavioral Segment

+

Predictive Mo...
Marketing Orchestration:
Individualized Experiences at Massive Scale

October 12, 2013

37
“Our approach is to give customers a
chance to understand our brand and find
the path they are interested in. Then we
targ...
Build Profiles
&
Permission

Start by capturing permission and
building profiles across email, social, and
the web.
Build Profiles
&
Permission

Deliver
Individualiz
ed
Messages

Deliver personalized interactions with
dynamic content, tar...
Build Profiles
&
Permission

Deliver
Individualiz
ed
Messages

Orchestrate
Lifecycle
Interactions

Orchestrate interaction...
Build Profiles &
Permission

Apply the same
customer centric
approach across
multiple channels, like
email and display.

O...
is Orchestrated.
Agent

How do you deliver the
personalized experience
you get from an agent, at
massive scale?
start
program

send
email
Thanks for
starting

+

send
email
Mobile
opt-In

wait

5

days

Still
active?

no

show
display...
missing
aps?

yes

send
email
Can you help

+

send sms
message
Missing an item

policy
ready?

yes

send sms
message
You’...
Digitally orchestrated messages deliver a
better personalized experience.
Web

Email

Mobile

vs.
Display
Social

Agent Ne...
Q&A
with Chris Nickel
Manager, CRM & Direct Response Marketing,
Epson
Epson improved RPE by 800% by
implementing browse abandon program.
•

Website had heavy traffic, but
a very low conversion...
Dollar Thrifty challenge (and opportunity):
Increase pickup rate
– Revenue isn’t generated until actual rental pickups
occ...
Dollar Thrifty solution:
Eminder 2010 = Email

– Transactional booking confirmation emails delivered immediately
– Reminde...
Dollar Thrifty solution:
eMinder = Email + Display

– Transactional booking confirmation emails delivered immediately
– Di...
Dollar Thrifty Results:
47x ROI
In-segment individuals reached with display ads converted 22% higher than those who didn’t...
What’s now for Dollar Thrifty
ENGAGED
Opened and/or clicked, but made no reservation in the last 7 days

UNENGAGED
Have no...
It All Comes Down to Four Objectives…

1. Drive Revenue
–

Leverage the low cost interactive marketing channels to drive s...
Interact Marketing
Cloud

Delivering individualized experiences at
massive scale.
“…current offering is 18
months ahead of...
Thank You.
Sandy Martin
Sr. Strategy Consultant,
SandyM@responsys.com

@sandylmartin

Responsys, Inc.
Move from Campaigns to Customers
Move from Campaigns to Customers
Move from Campaigns to Customers
Move from Campaigns to Customers
Move from Campaigns to Customers
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Move from Campaigns to Customers

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Move from Campaigns to Customers

  1. 1. Move from campaigns to customers: marketing to today’s digitally savvy consumer Sandy Martin Sr. Strategy Consultant,
  2. 2. Welcome to the next era of marketing.
  3. 3. Strong individual relationships… But no scale.
  4. 4. Great scale… But at the expense of the relationship
  5. 5. How do we deliver amazing individual experiences, only at massive scale?
  6. 6. Those who individualize experiences & build relationships are rewarded. Deliver individualized experiences: Sources: Responsys consumer survey, 2013 Adobe Digital Index, 2012 Build lasting relationships:
  7. 7. Consumers are flocking to brands that can deliver individualized experiences. 183% Values its customers 193% Respects me 196% Has earned my loyalty Understands my needs 213% Relationship Era companies earn positive consumer sentiment at a significantly higher rate Doesn’t recognize me individually 138% Source: Responsys survey data, 2013 Consumer reactions to brands who deliver individualized experiences vs. not Frustrates me Disinterests me Campaign Era brands earn negative consumer sentiment at a significantly higher rate. 142% 184%
  8. 8. But marketing today is still driven by the campaign, not the individual consumer. Campaign dictates the message. Campaign dictates the channel. Campaign dictates the timing. Campaign dictates the audience. “Retailers spend almost 80% of their interactive marketing budgets on mass acquisition vehicles.”
  9. 9. Old Mindset: How do I maximize campaign conversion? 97% Ignored …or Annoyed 3% Converted The Mass Market $ Back to the start for re-conversion. The Transaction
  10. 10. The consumer has moved on.
  11. 11. Half of consumers outright ignore non-personalized mass marketing communications.
  12. 12. Marketers get stuck in a “Campaign Crisis”
  13. 13. Customer retention vs. send volumes for F500 publisher prior to moving to the Relationship Era Point of Disengagement This is not A theoretical exercise. Point of Disengagement Most valuable customers are the most affected.
  14. 14. It’s time to move into the next era of marketing. “Companies will be better off if they stop viewing customer engagement as a series of discrete interactions [i.e. campaigns] and instead think about it as customers do: a set of related interactions that, added together, make up the customer experience.”
  15. 15. It’s time to flip the model.
  16. 16. New Mindset: How do I deliver amazing individual experiences? Build profiles & capture permissions Individually targeted messages deliver $ 3x Higher Conversion Mass Market Relationship Transaction
  17. 17. New Approach: Focus on the individual relationship. Orchestrated experiences deliver 5x higher conversion $ Mass Market Relationship Transaction
  18. 18. It Starts With a Customer Journey.
  19. 19. Today’s consumers are cross-channel Know me. Engage me. Lead me. Consumers expect you to know them across all digital channels Consumers demand a relevant, engaging consumer experience Consumers want you to anticipate future needs to maintain engagement and loyalty Your marketing strategy needs to align with consumer behavior. 21
  20. 20. CUSTOMER JOURNEY Using Marketing to Move From Low to High Value Customer Value Social Share In-store Purchase, Opt-in Targeted Cross-Channel Messages Cross-Sell Message Low Customer Activity Customer Activity Customer Purchase October 12, 2013 22 Mobile Message High
  21. 21. RELATIONSHIP METRIC: Email Engagement Index Repairing Relationships Building Relationships 1,500,000 1,000,000 Use analytics to identify decreasing engagement velocity and mitigate before dormancy settles in. Email Subscribers 500,000 Most Active - Least Active Engagement Index (500,000) (1,000,000) (1,500,000) (2,000,000) (2,500,000) Implement re-engagement programs to activate dormant audience Drive customer engagement with customer segmentation and targeted messaging
  22. 22. CUSTOMER JOURNEY What Happens When Customers Leave the Optimal Path? Customer Value ? ? ? Customer Activity Customer Activity Customer Purchase 24
  23. 23. USE ANALYTICS: Actionable analytics drive results Benefit: Enterprise level customer insights Analytics Complexity Benefit: Customer-led analytics, focused on “actionability” Benefit: Channel specific insights Opportunity: Leverages all the customer data that matters Insights and recommendations integrated with technology Challenges: Complexity of analysis often makes it difficult to act on Often difficult to get analytics team to focus on digital media Insights and recommendations are made independent of technology / execution Challenge: informative but not deep enough to drive change Traditional Reporting / Insights (campaign focus). Actionable Analytics (results focus) Enterprise Analytics (CRM focus)
  24. 24. ANALYTICS FRAMEWORK: Core Building Blocks Segmentation Measurement Marketing ROI • Campaign • Channel ROI • Attribution Targeting Lifecycle Marketing ROI • • • Velocity Cross-channel Loyalty • Activity • Behavioral / Value • Attitudinal Optimization Proactive • • • Predictive Next Action Test & Learn
  25. 25. KNOW ME: Customer Value Using Analytics to Reveal New Marketing Opportunities  Analytics Insight: First Purchase New Prospects who show an initial pause in engagement are 57% more likely to make a first purchase if they are show a targeted display ad. High Low Customer Activity Customer Activity Customer Purchase 27
  26. 26. ENGAGE ME: Integrated Lifecycle Display Program This is individualization, automation and orchestration in action!
  27. 27. KNOW ME: Customer Value Using Analytics to Reveal New Marketing Opportunities  Analytics Insight: Customer Churn Customers who haven’t clicked in 30 days are 50% more likely to churn. High Low Customer Activity Customer Activity Customer Purchase 29
  28. 28. Customer Segmentation Approach 3 Attitudinal • Psychographic • Customer Modeling • Brand Integration • Drives audience profiling • Integrates brand and direct to consumer Behavioral • Past Purchase • Content Consumed • Customer Value • Drives message content • Refines customer targeting, offer optimization 2 1 Activity + • Engagement by Channel • Recency • Frequency • Drives channel preference • Foundational layer for additional segmentation attributes
  29. 29. ENGAGE ME: Customer Churn Mitigation Program Activity Segment + Behavioral Segment = Churn Mitigation Hero Dress1 • Starts the marketing process • Leverages email lifecycle stage • Determines marketing program • Leverages past behavior information – email click, website browse, past purchase • Prioritizes product category based on segment score Dress2 Shoes1 Shoes2 Behavior Driven Churn Mitigation Offer Ex: At-Risk Segment Churn Mitigation Trigger Prod Cat 1: Dresses Prod Cat 2: Shoes Dynamic Lifecycle Program: Churn Mitigation Activity Driven
  30. 30. KNOW ME: Customer Value Using Analytics to Reveal New Marketing Opportunities  Analytics Insight: Customer Loyalty Active customers are 31% more likely to connect with you on Facebook. Customers who connect on Facebook also drive 43% more sales. High Low Customer Activity Customer Activity Customer Purchase 32
  31. 31. Putting It Together: Driving Scalable Customer-Led Marketing 1 Customer Segments NSM Programs Know me: Integrate & analyze customer data Build action-oriented segments Content 2 Channel web Engage me: email Go from campaigns to customers by matching message & channel. social dynamic Target content by customer segment Attribution Revenue Trends 4,000 Email Purchase Propensity 3,000 2,000 0 RPE Determine marketing ROI and customer value 100 90 60% 80 70 50% 1 0 2 g u A 1 0 2 t p e S 1 0 2 t c O 1 0 2 v o N 1 0 2 c e D 1 0 2 n a J 1 0 2 b e F 1 0 2 r a M 1 0 2 r p A 1 0 2 y a M 1 0 2 n u J 1 0 2 l u 1 0 2 g u A 1 0 2 tJ p e S 1 0 2 t c O 1 0 2 v o N 1 0 2 c e D 1 0 2 n a J 1 0 2 b e F 1 0 2 r a M 1 0 2 r p A 1 0 2 y a M 1 0 2 n u J 1 0 2 l u J 1,000 70% e r c s b u S l i a m E o % f 5,000 Revenue (Hundreds) Predictive Channel Attribution $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Delivered (thousands) display Select best channel based on consumer engagement ROI 6,000 Drive ongoing results with customer-led models and insights. mobile static 3 Lead me: Develop scalable lifecycle programs 60 50 40% 30% 40 30 x d I y t i n p o e s a h c r u P Put customers first by turning consumer data into actionable marketing asset. 20% 20 10 0 10% Email Mobile Social Display Search Adjust marketing spend with smart attribution 0% Dormant Lapsed Loyalists Actives Move to proactive marketing programs
  32. 32. Moving From Reactive to Proactive Marketing Segmented message ROI Predictive message ROI Behavior segments drive smarter content, relevant messaging Proactive Marketing ROI Reactive Leverage past behavior to predict future behavior, proactive messaging
  33. 33. Predictive Insights: getting ahead of your customers Optimize offers, cross-sell opportunities conversion rate, email ROI by identifying and targeting subscribers most likely to purchase 60 60% 50 50% 40 40% 30 30% 20 10 10% 0% Email Purchase Propensity 0 Dormant Lapsed Loyalists Actives 70% 100 90 60% 80 50% 70 40% 60 30% 40 50 30 20% 20 10% 10 0% 0 Dormant Lapsed Loyalists Actives x d I y t i n p o e s a h c r u P 20% x d I y t e p o r P b u s n U l i a m E e r c s b u S l i a m E f o % Identify email subscribers most likely to unsub and trigger mitigation message stream Proactive Email Unsub Propensity 70% e r c s b u S l i a m E f o % Proactive
  34. 34. LEAD ME: Activity + Behavior Segmentation + Predictive Modeling Activity Segment + Behavioral Segment + Predictive Modeling = New Customer Hero Basket 1 • Starts the marketing process • Leverages email lifecycle stage • Determines marketing program Ex: New Segment Grow Engagement Trigger • Leverages past behavior information – email click, website browse, past purchase • Prioritizes product category based on segment score Prod Cat 1: Gift baskets Prod Cat 2: Roses • Leverages predictive model to determine optimal mix of category, product and price/offer • Heavy use of dynamic content Product x, price Y: Grilling & Wine, high price point Prod Cat 2: Roses, moderate price point Basket 2 Roses 1 Roses 2 New Customer Offer (% Discount) Dynamic Lifecycle Program: New Customer Expansion
  35. 35. Marketing Orchestration: Individualized Experiences at Massive Scale October 12, 2013 37
  36. 36. “Our approach is to give customers a chance to understand our brand and find the path they are interested in. Then we target messaging based on what they love.”
  37. 37. Build Profiles & Permission Start by capturing permission and building profiles across email, social, and the web.
  38. 38. Build Profiles & Permission Deliver Individualiz ed Messages Deliver personalized interactions with dynamic content, targeted to each individual.
  39. 39. Build Profiles & Permission Deliver Individualiz ed Messages Orchestrate Lifecycle Interactions Orchestrate interactions based on profiles and behavior throughout the customer lifecycle.
  40. 40. Build Profiles & Permission Apply the same customer centric approach across multiple channels, like email and display. Orchestrate Lifecycle Interactions Communicate Across Channels display email Deliver Individualized Messages
  41. 41. is Orchestrated.
  42. 42. Agent How do you deliver the personalized experience you get from an agent, at massive scale?
  43. 43. start program send email Thanks for starting + send email Mobile opt-In wait 5 days Still active? no show display ad Eligible for group policy
  44. 44. missing aps? yes send email Can you help + send sms message Missing an item policy ready? yes send sms message You’ve been approved + send email Accept your coverage end program
  45. 45. Digitally orchestrated messages deliver a better personalized experience. Web Email Mobile vs. Display Social Agent Net Promoter Score: -4 Digital Net Promoter Score: +38
  46. 46. Q&A with Chris Nickel Manager, CRM & Direct Response Marketing, Epson
  47. 47. Epson improved RPE by 800% by implementing browse abandon program. • Website had heavy traffic, but a very low conversion rate. • Leveraged Adobe web data to automatically target customers based on products browsed. • Revenue per Email is 800% higher than broadcast campaigns and program accounts for 10% of email revenue. October 12, 2013 51
  48. 48. Dollar Thrifty challenge (and opportunity): Increase pickup rate – Revenue isn’t generated until actual rental pickups occur. Aggregators – Customers are extremely price sensitive and are looking for the best rates right up until pickup. – Many bookings and behaviors that will impact pickups happen off-website. – Engaging customers (prospects) between booking and pickup has a direct impact on the bottom line. Visitors Callers Agents Research Book Pickup $
  49. 49. Dollar Thrifty solution: Eminder 2010 = Email – Transactional booking confirmation emails delivered immediately – Reminder emails sent when pickup date is within 2 days
  50. 50. Dollar Thrifty solution: eMinder = Email + Display – Transactional booking confirmation emails delivered immediately – Display ads shown when pickup date is within 7 days – Reminder emails sent when pickup date is within 2 days
  51. 51. Dollar Thrifty Results: 47x ROI In-segment individuals reached with display ads converted 22% higher than those who didn’t see display ads, generated 22% realized revenue, and exhibited almost triple the site revisit rate. Pickup Rate ase ncre i 22% Realized Revenue % 22 i se re a nc 47x ROI Site Revisit Rate 17 7% in e eas cr
  52. 52. What’s now for Dollar Thrifty ENGAGED Opened and/or clicked, but made no reservation in the last 7 days UNENGAGED Have not opened, clicked, or made a reservation in the last 7 days OPT-OUT Unsubscribed from emails in the last 30 days
  53. 53. It All Comes Down to Four Objectives… 1. Drive Revenue – Leverage the low cost interactive marketing channels to drive significant revenue with a high ROI 1. Deepen Customer Engagement – Utilize various data sources to ensure relevant and timely communication 1. Improve Efficiency – Quickly set up top performing programs/campaigns by integrating with technology 1. Cross-channel Coordination – Integrate your marketing communications across multiple channels based on customer preference and behavior
  54. 54. Interact Marketing Cloud Delivering individualized experiences at massive scale. “…current offering is 18 months ahead of the Contenders.” The Forrester Wave TM Email Marketing Vendors, Q1 2012
  55. 55. Thank You.
  56. 56. Sandy Martin Sr. Strategy Consultant, SandyM@responsys.com @sandylmartin Responsys, Inc.

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