© 2012 Acxiom Corporation. All Rights Reserved.

A CUSTOMER CENTRICITY PARADOXState of the Industry Survey

Tim Suther, Acxiom Chief Marketing & Strategy OfficerSeptember 19, 2012

Digiday Brand Conference, September 2012

2

3

52%

48%

Advertiser & AgencyMedia, Tech & Other

A balanced distribution of buy & sell side…& job roles:

SURVEY RESPONDER PROFILE

Government

Education

Finance / Investments

Restaurant

Finance / Credit Cards

Insurance

Finance / Retail Banking

Telecom

Automotive

Health Care

CPG

Technology

Media & Communications

Travel & Entertainment

Retail

9%

12%

14%

15%

15%

18%

18%

20%

22%

24%

31%

31%

32%

33%

36%

A diverse set of industry marketing experience is represented:

259 surveyed in August 2012

72%

28% Marketing & Sales

Analysis & Audience Mgt

4

Access to and integrating back-end customer databases

Collaborating with direct marketing to understand what’s working for them and how digital can improve results

Rationalizing budgets with more effective ROI metrics

Adopting new media technology such as social, mobile and video

Understanding customers and engaging them with personal, relevant experiences

37%

39%

6%

17%

6%

1%

3%

21%

23%

51%

Most Important Not Important

Ensuring privacy and providing sufficient notice, choice and transparency in gathering and using data

Coordinating the timing and cadence of multi-channel communications and feedback

Reducing waste and inefficiency when targeting and serving the right customers and prospects

Integrating multiple back-end customer databases

Providing consistent and relevant engagement for customers

54%

13%

8%

19%

7%

8%

10%

20%

26%

37%

Most Important Not Important

CONCERNS & CHALLENGESMarketers top concerns are customer centricity, new media & ROI:

Marketer top challenges are consistency, integration & inefficiency…but not privacy:

5

A CUSTOMER CENTRICITY PARADOX

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

We invest and focuse more on acquisition than retention

Both direct response and digital marketers collaborate on timing and creative to more efficiently reach customers across all channels in a coordinated fashion

We invest and focus more on retention than acquisition

We're integrating back-end systems to reduce waste and inefficiency while coordinating multichannel campaigns and measurement

48%

19%

14%

14%

5%

21%

80%

Have or will have value score for each cus-tomerChannel or cross-channel

Yet, few can measure value at customer level:

Most highly self-assess their own customer-centric capabilities…

6

POOR DATA INTEGRATION ABOUNDS

26%

74%

Have channels connected or have a central repos-itoryNo or outbound or social only

30%

70%

Advanced No/Suboptimal

Most poorly integrate data from online & offline sources

Most poorly recognize customers in real-time

7

SILOS ARE RAMPANT…AND IMPEDE CUSTOMER CENTRICITY

53%

22%

24%

Data or Technology ResourcesMeasures & Incentives

Biggest barriers to integrated customer-centric marketing:

We don't have a customer database

We have everything we need or is already integrated

1-3 databases

4-6 databases

7-10 databases

10+ databases

11%

13%

33%

28%

6%

9%

How many customer databases need to be accessed to integrate marketing?

8

MARKETERS ARE JUST BEGINNING THE INTEGRATION JOURNEY

84%

16%

Yes No

Most marketers blend or borrow creative from online & offline campaigns:

Yes, we match marketing to site visitors via cookies, and name and other addressable data

Yes, we match marketing to site visitors via cookies

Yes, we extend the full capabilities of our database into our online campaigns

No, we don't do any targeting online

Yes, we leverage behavioral and other ad targeting

11%

14%

16%

19%

41%

A variety of online targeting is being used. Behavioral leads the way:

9

CUSTOMER CENTRICITY REMAINS AN ATTRACTIVE GOAL

MARKETING

ROI+15 – 30%

PRICINGPOWER

+5 – 7%

CUSTOMERPROFITABILITY

+10 – 15%

Acxiom client experience

10

MARKETERS SEEK TO MOVE FORWARD

Addressable data to better understand and reach our audience

A way to borrow creative to coordinate more personalized offers

To better understand results from campaigns to know what's working

All of the above

None of the above

30%

2%

28%

40%

12%

Targeting & attribution are top data priorities

Emphasis shifting to customer marketing & branding

More options to expand targeting beyond acquisition

Acquisition/direct response

Branding/extending our regular branding efforts

Loyalty and retention/giving customers more options to connect with the brand

Interacting with our customers where they spend their time

27%

26%

17%

5%

26%

8%

25%

21%

20%

25%

Most Important Least Important

11

SOME BRANDS ARE SEEN AS ROLE MODELSCommon 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

12

SUMMARYCustomer 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

© 2012 Acxiom Corporation. All Rights Reserved.

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