7 Ways to Amp up Your Marketing Using Customer Analytics

© 2013 IBM Corporation

7 Ways to Amp Up Your Marketing

Using Customer Analytics

Jay Henderson

Strategy Director, IBM’s Enterprise Marketing Management Group

© 2013 IBM Corporation 2

Today’s presenter

Jay Henderson Strategy Director,

Enterprise Marketing Management

@jay_henderson


The danger and the opportunity

Bad marketing?



Bad marketing?



Marketing so good it feels like a service…

…and service so good it’s marketing


Intelligence needs to be woven into the fabric of enterprise processes to build smarter marketing

Business

Partners

Prospective

Employees

Suppliers

Current &

Prospective

Customers


Intelligence needs to be woven into the fabric of enterprise processes to build smarter marketing

Increase conversion, margin Reduce sales cycle time

Increase brand preference, especially for customers with the greatest lifetime value

Improve customer satisfaction & loyalty

Enable flexible payment options based on need

Enable employee access to usable analytics

Manage inventory and optimize supply chain

Understand the met and unmet needs

Hire capable employees and enable with appropriate skills


7 Ways to Amp Up Your Marketing

Using Customer Analytics


Analysis

#1

bridge the gap between

analysis and action

(finally?)

Action


Marketers must bridge the gap between analysis and action (finally?)

57% said their top bottleneck was

measurement, analysis & learning

62% said their top marketing issue was

turning data into action

Source: IBM’s Global Survey of Marketers


11

Grow &

Retain

Attract

Engage &

Persuade

Don’t create customer “facts”, frame analytics around actions to

support specific business goals


#2

identify needs and intent

from digital behaviors


Marketers must leverage digital behavioral data to turn data into action

65% Of respondents are doing the basics by reporting and analyzing their online visitor data.

Only a third Use this data in targeting one-to-one offers or messages in digital channels.

Less than 1 and 5

Leverage online data to make one-to-one offers in traditional channels. Source: IBM’s Global Survey of Marketers


Marketers will use web data because it will improve targeting

Accountant

Mom Wife

Golfer

Target Audience: Demographics



Accountant

Mom Wife

Golfer

Target Audience: Demographics

Last Web Visit



Accountant

Mom Wife

Golfer

Target Audience: Demographics Web Data Informs Intent, Desire, Need….

Last Web Visit


Drive customer level digital behaviors into customer profiles


#3

understand how your

customers are interacting with

mobile channels



over 15% of all online

sales come from

mobile devices1

Mobile (including tablet) continues to increase dramatically…

Sales, traffic, and even email

over 25% of all site

traffic comes

from mobile devices2

47% of all email is

opened on mobile devices

(more than apps or web)3

Sources: 1 IBM Digital Analytics Benchmark (consistently Nov 2012 – March 2013) 2 IBM Digital Analytics Benchmark (as of March 2013) 3 Email Optimization benchmark


As customers adopt, not surprisingly marketers are following….

over 50% of marketers already

conduct multiple types of

mobile marketing Source: IBM’s Global Survey of Marketers


Don’t forget, mobile is a device, not a single channel

Customer

Mobile Email

e

Mobile Applications

Mobile Websites

Mobile Display & Search

DISPLAY

Mobile Messaging (SMS, Push Notifications, Wallet/Passbook)


Mobile marketing adoption is healthy across channels and tactics

59%

52%

47%

41%

39%

38%

23%

21%

25%

28%

25%

25%

29%

29%

11%

15%

12%

16%

16%

15%

18%

9%

8%

13%

17%

21%

18%

30%

Mobile apps

Mobile websites

Mobile email

Location-based targeting

SMS/MMS/WAP

Mobile Ads (PPC or Display)

Mobile wallet (e.g. Passport,Google )

March 2013

Figure: Mobile Marketing Tactics in Use

Q. Which of the following mobile marketing tactics is your company using or planning to use?



Mobile is not all thumbs, fingers too. iPad now consistently leads all devices - more traffic and faster growth

4.07%

5.16%

4.30%

6.09%

8.21%

8.82%

Android

iPhone

iPad

US Mobile Traffic by Device December 2011 vs December 2012

Dec-12

Dec-11

Source: IBM Digital Analytics Benchmark



Create customer profiles based on mobile devices

Mobile Segmentation

Standard Mobile Reports


Understand how customers transition across devices and visualize

device streams


Understand the mobile customer experience

Native Apps

Hybrid Apps HTML5

Mobile Site

Cover multiple mobile channels

Capture and replay customer

interactions

Discover “why” mobile customers

succeed or fail

Automatically detect customer

struggles, obstacles or issues

Drill down into actual user behavior,

complete with gestures


#4

discover brand disposition and

product sentiment from social

data


Social has yet to make a significant impact on

“same session” traffic or sales

~1% of traffic

~1.5% of online sales

• Measurement and ROI are

elusive

• Campaigns are poorly

integrated

• Mostly marketing techniques

are employed

• Opportunity to understand

individuals is ignored

Consumer adoption of social media is pervasive, but marketing in

social is hit or miss

Source: IBM Digital Analytics Benchmark


Marketers become socially awkward as experimentation abounds

66%

55%

51%

49%

48%

48%

45%

44%

29%

25%

21%

19%

18%

21%

24%

23%

22%

23%

22%

27%

18%

18%

8%

11%

7%

7%

9%

10%

12%

12%

15%

13%

16%

8%

17%

21%

21%

20%

20%

20%

22%

29%

44%

45%

Facebook

Twitter

Blogs

Social sharing

Branded Communities

Social media ads

Social apps/widgets

UGC

Pinterest

Group Buying

Foursquare

Currently Use Plan to use in <12 months

Plan to use >12 months No plan to use it

Figure: Social Media Tactics in Use

Q. Which of the following social media marketing tactics is your company using or planning to use?



Customer analytics for social should be aggregate and individual

Aggregate Insights

Individual Profiles +

Sentiment

# of followers,

# following,

last tweet date

Name, # of Friends, birthday,

hometown, interests, activities,

political views, religion,

relationship status, etc, etc, etc.


Progressive social insight that informs a single view of the customer

and context for a relationship

Social Facts




Social Facts

Inferred Social Attributes

Sentiment

Interests Expertise

Influence




Social Facts

Inferred Social Attributes

Sentiment

Interests Expertise

Influence

Personality

Behavior

Values Needs


#5

strategically nurture new

channels


…and more

Warning! things change…

especially emerging marketing channels

New Media

Social Media

Social + Mobile

Website Email PPC

?


How does your company respond to new channels?

EMERGING

CHANNELS

Panic

Denial

Fear

Legal Bottlenecks Wait for ROI Proof

One-Off Experiments


marketing is great

about reserving

discretionary

budget to try new

things

Today’s situation


disconnect between

funding with discretionary

spend strategically

nurturing

new channels

Today’s problem


shift efforts in

emerging channels from

ad-hoc and one-off

to a strategic and

structured process

Tomorrow’s solution


#6

adjust marketing in real-time

by understanding

the context of the current

interaction


BEFORE the interaction:

• Easier

(only batch capabilities needed)

• But context not used, so

personalization is less relevant

DURING the interaction:

•Greater investment required

(real-time capabilities needed)

•More relevant messages

Best option: DURING

RETHINKING the customer interactions


Real-time contextual marketing

Turns every customer touchpoint into a channel for the kind of personalized marketing messages previously only delivered through outbound campaigns

Website Selection

Authentication Call

Center

Greetings Greetings

Context of

Call

Greetings Customer

Dialog Offer Offer

Hold Time

Contextual marketing: the presentation of personalized messages during “inbound interactions” and taking into consideration the current interaction

Turns every customer touch-point into a channel for the kind of personalized marketing messages previously only delivered through outbound campaigns


70%

68%

54%

47%

16%

11%

22%

27%

7%

9%

12%

13%

7%

12%

11%

13%

Currently do it Plan to do in <12 months Plan to do in >12 months No plan to do it

Website

Customer Service /

Call Center

Social Media (i.e.

Facebook)

Mobile (i.e. SMS,

mobile sites)

Survey question: Is your company delivering or planning to deliver targeted/personalized messages in customer-initiated interactions (e.g., website, physical store/branches, call center)?

Contextual marketing is a growing trend



Why? Because it works better

Enterprise Customer “Traditional” Outbound

“Intrusive” 1-5% Response

Enterprise Initiated, Marketing Driven

Event-Driven

“Convenient” 5x Success

Customer Triggered, Product as Service

Inbound, Real Time

“Appropriate” 10x Success

Customer Initiated, Relationship Driven

Source: Gartner Group


Results from using real-time context in personalization

Company Benefit

A global financial services

institution 4x revenue from offers presented on

website based on behavior, not pre-calculated

A large Dutch bank 5% increase in sales volume

from web personalization

A global travel and

entertainment company

250% increase in clicks per day,

400% increase in revenue per impression,

from real-time email offer personalization

A large telecommuncations

provider in APAC

Cross sell success rate increased

from under 10% to more than 40% in call centers and retail shops


#7 measure what works

and make adjustments


Have a strategy for ROI measurement & optimization

Promote

Persuade

Nurture with Permission and Personalization

Convert to New Customers

Service

Grow Lifetime Value

Grow Net Promoters

Derive the Mobile Interaction Strategy across

the Customer Lifecycle

Your overall marketing and business strategy determines the role of a channel

Define Mobile’s Mission

• Create customers?

• Make / save money?

• Satisfy & grow clients?

Derive Mobile Strategy

• Mobile features, e.g. site vs. app, SMS, QR?

• ROI metrics and goals?

• Ad channels?

• Short term?

• Over customer lifecycle?

Repeat

Measure ROI + Improve it


7 Ways to Amp Up Your Marketing Using Customer Analytics

Use customer analytics to…

1. Bridge the gap between analysis and action

2. Identify needs and intent from digital behaviors

3. Understand how your customers are interacting with mobile channels

4. Discover brand disposition and product sentiment from social data

5. Strategically nurture new channels

6. Adjust marketing in real-time by understanding the context of the current interaction

7. Measure what works and make adjustments


Jay Henderson Strategy Director IBM Enterprise Marketing Management email: [email protected] twitter: @jay_henderson

7 Ways to Amp up Your Marketing Using Customer Analytics

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