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Highlights 4 key capabilities to reach/engage customers in a connected world. 1) Reach/engage your audience by narrowcasting, 2) multidimensional insight - filter out the false signals that cost money and harm brands, 3) create a central nervous system - the synapse to send/receive stimuli then recalibrate, and 4) personalized/coordinated engagement at the moment of truth, when customers are engaged with your brand, and when they're out living their life. These capabilities can facilitate redirection of 15-30% of marketing programs/media spend
Citation preview
1
Hope is not a Strategy
A capability model for successfully reaching
and engaging consumers
Forrester Customer Experience Forum
June 2010
About Acxiom
• Global marketing services and
technology company. Focused on
audience and customer engagement
• #1 Ad Age Agency
• US Agency Overall
• US CRM/Direct Marketing
• Quick Facts:
• 5,700 clients in 40 countries
• 300,000 campaigns/year
• 5 billion consumers engaged/year
• 1 trillion customer recognition events/year
Just 8%
of their customers agree
A crisis in customer engagement
Source - Bain
2Forrester Research
A crisis in insight & focus…
3comScore
Capability model for a connected world
Target 15-30% of spend to redirect
Capability model for a connected world
1. Reach/engage your audienceCustomer value varies greatly
- 400%
+ 500%
Top 30% Next 50% Bottom 20%
0
Customer Value Segment
Contribution to
Overall Profit
Contribution to
Overall Profit
1. Reach/engage your audienceMost firms are not getting their fair share of valuable buyers
PersonicX Consumer Segments
UV
In
de
x
UV
In
de
x
Retailer 1
PersonicX Consumer Segments
Retailer 2
UV
In
de
x
PersonicX Consumer Segments
Cookware/Kitchen
Accessories Buyer
UV
In
de
x
PersonicX Consumer Segments
Clothing/Apparel Buyer
Acxiom, comScore
1. Reach/engage your audience
12
Valuable buyers are hard to recognize
Acxiom, comScore
PersonicX Consumer Segments
UV
In
de
x
UV
In
de
x
Portal 1
PersonicX Consumer Segments
Portal 2
UV
In
de
x
PersonicX Consumer Segments
UV
In
de
x
PersonicX Consumer Segments
Portal 4Portal 3
1. Reach/engage your audienceValuable buyers are hard to recognize
PersonicX Consumer Segments
UV
In
de
x
UV
In
de
x
TV Network 1
PersonicX Consumer Segments
TV Network 2
UV
In
de
x
PersonicX Consumer Segments
UV
In
de
x
PersonicX Consumer Segments
TV Network 4TV Network 3
Therefore,
Most Firms…
Under-invest in
high value relationships
Over-invest in
low value relationships
1. Reach/engage your audienceNarrowcast, not broadcast
Retailer 1 v Portal 1
This retailer’s best customers
are under-represented on this portal
PersonicX Consumer Segments
UV
In
de
x
Capability model for a connected world
2. Multidimensional InsightWhat do you see?
2. Multidimensional InsightSorry, there are no silver bullets
2. Multidimensional InsightJust about online context/behavior?
2. Multidimensional InsightJust about online context/behavior?
Capability model for a connected world
Capability model for a connected world
In the Marketing Democracy
4. Personalized & coordinated engagement
Create this experience across media / channels
Illustration
When Becky visits a site,
audience insights are leveraged
to personalize the engagement
4. Personalized & coordinated engagement
We know:• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
Create this experience across media / channels
Illustration
4. Personalized & coordinated engagement
We know:• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
When Becky watches TV,
audience insights are leveraged
to personalize the engagement
Create this experience across media / channels
Illustration
4. Personalized & coordinated engagement
We know:• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
When Becky uses her iPhone,
audience insights are leveraged to
personalize the engagement
Capability model for a connected worldKey requirements
• Highly accurate audience recognition.
• Integrated decision engine, deployable across channels.
• Integrate matching engine & central nervous system.
Personalization engine
• Reach your audience with certainty.
• Business relationships & delivery integration with preferred advertising
partners.
• A safe haven for responsible matching of sensitive information.
Partnership ecosystem
Differentiated value of customers• The top 30% make 500% of profit. The bottom 20% consume 400% of
profit. Know the difference.
Strategy, analytics & creative skills• Leverage external, multi-sourced & verified consumer insights
High performance matching engine• Knowledge based for higher accuracy/flexibility.
• Support real-time & all digital formats.
• Integrate central nervous systems & personalization engine.
“Logical” central nervous system• Correlate customer behavior with marketing/advertising across channels,
media over time.
• Integrate existing databases.
• Integrate matching & personalization engines.
Capability model for a connected worldDelivering ROI
Target 15-30% of spend to redirect
Tech Firm
$200 million revenue/yr
$4.5 million OpEx/yr
Retail Bank
$100 million EBIT/yr
CPG Firm
$500 million revenue/yr
Personalized experiences…...4-5X ROI
Concentrate ad spend………..3-5X ROI
Connect web footprints
& outbound messaging….….....2X ROI
Connect print & digital…….......4X ROI
Connect call center
& digital………………………...3-5X ROI
Connect mobile & email….….7.5X ROI
Connect TV/offline…………….17X ROI
What could have been
owned
but couldn’t
become
What could have been
owned
but couldn’t
become
What could have been
owned
but couldn’t
become
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?
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