Integrated marketing for the customer journey

© 2012 IBM Corporation1

Integrated Marketing

Effective consumer interactions

using data, analytics and creative execution

for Integrated Marketing Management

Norbert Herman


Today’s digital revolution and empowered consumer are producing many tough marketing challenges that are leaving CMOs struggling to respond

Marketing Challenges1

9

13

12

2

4

3

1

7

50

60

70

40

20 40 600

8

6

Financial constraints

Decreasing brand loyalty

Growth market opportunities

ROI accountability

Customer collaboration and influence

Privacy considerations

Global outsourcing

Regulatory considerations

Corporate transparency

5

6

7

8

9

10

11

12

13

Data explosion1

Social media2

Growth of channel and device choices3

Shifting consumer demographics4

Mean

Marketing Priority Matrix

Factors impacting marketing

Under-preparedness

5

1011

Source: 2011 Global Chief Marketing Officer Study industry


Forrester asked 216 clients “Which are the biggest Customer Intelligence challenges you expect to face in the next two years?”

Source: ttp://www.forrester.com/Tackle+Behavioral+Targeting+To+Modernize+Customer+Interactions/fulltext/-/E-RES61387



The way consumers reach purchasing decisions is constantly changing and this requires vigilance with ongoing innovative marketing execution

4

Source: http://www.kaushik.net/avinash/analytics-tips-complex-data-simple-logical-stories/?utm_source=social-media&utm_medium=twitterfbgp&utm_campaign=aktw



Shoppers want retailers to provide personalized promotions and recommend relevant – based on IBM Global Study across 14 countries with 23,466 respondents

5From Transactions to Relationships: Connecting With a Transitioning Shopper Global View

Interest in retailer offers

Use my prior purchasing to offer me promotions

55% 43%Use my prior purchasing to recommend new products

Invite me to events

43%Involve me in new product ideas

36%

Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers



How effective is your organization in the key metrics of delivering customer life time value? Forrester report on “The State Of Retailing Online 2013: Key Metrics And Initiatives”

6

Source: http://www.forrester.com/The+State+Of+Retailing+Online+2013+Key+Metrics+And+Initiatives/quickscan/-/E-RES89902#/The+State+Of+Retailing+Online+2013



In most organizations, a small set of customers delivers the bulk of the revenue. Large gains can be made with solutions that can reveal the areas for more focus

No Previous Purchase

One Previous Purchase

Multiple Previous Purchases

Revenue

59%

41%

Visitors

92%

8%1. Drive visitors to the store

(online and brick/mortar

2. Convert visitors to shoppers

3. Convert shoppers to loyal and profitable shoppers

Marketing Challenges

Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-marketing-to-existing-online-customers.html



According to Forrester, the US retail marketing budget is disproportionately allocated. An effective marketing solution should provide the necessary alignment




Analytics based actions and/or offers can tap into the five times higher conversion rates of the top two quartiles with the right capabilities


Capabilities needed to convert profitable purchasers

Customer Insights

Trend Spotting

Customer Value Management

Highly Targeted Campaigns



The patterns and trends you notice in your market sector can dictate the approach you take towards higher Return On Marketing Investment

Leverage Point 5:Advocate Compensation Use platforms like Pinterest

to complement marketing efforts through the help of the extreme loyalist

Leverage Point 6:Application To Person Use of the mobile platform

to send intelligent, timely & location focused messages to mobile users



IBM’s marketing solution “Intelligent Advisor” is made up of hardware, software and services that delivers results in the, operation and analytical marketing areas (Gartner’s definition of Integrated Marketing Management)

These processes analyze customer data, segment customers and targetcommunications to customers or partners across multiple channels and points of interaction.Multichannel campaign management (MCCM) is the term we use to describe this set ofexecutional capabilities and processes.

ExecutionalThese processes support the internal operations of the marketing departmentand management of resources (e.g., budgets, projects, HR and content/assets). MRM is theterm we use to describe the set of operational processes and associated applicationfunctionality.

These processes support executional and operational processes by drivingplanning, optimizing outcomes and measuring performance. Many of these processes areembedded in the executional and operational ones, but marketing performance management(MPM), marketing ROI and marketing mix optimization span campaign management and MRM.

Operational Analytical

Source: Gartner Nov. 2012 http://my.gartner.com/portal/server.pt?open=512&objID=260&mode=2&PageID=3460702&resId=2221322&ref=QuickSearch&sthkw=marketing+analytics+leaders



Intelligent Advisor is a holistic and effective solution that manages the customer experience which drives conversion, and customer advocacy

OptimumSub OptimumStandardSub StandardPoor

Customer experience

Customer advocacy

Customer equity

RobustFragile Weak StrongNone

Customer Has Defected

Dissatisfied Customer –

Might Defect

Satisfied Customer – Not

Committed

Pleased and Committed Customer

Delighted Customer Who is an Advocate



What is the anatomy of your customer’s experience and how do you maximize this experience by capturing, analyzing and executing on all the possible info?

Transacting / Interacting Involved / LoyalAware / Engaged

Doing

Thinking

Experience

Feeling

• Communication Sources

• Process Flows• Data Extracted

• Transaction points• Process Flows• Data Extracted

• Ongoing conversation

• Process Flows• Data Extracted

• Triggering thoughts

• Intuitive experience • Realized value

• Triggering Feelings

• Supporting messages• Positive

experience

• Initial Experience • Visual assistance• Continuous

engagement

Image Source - http://www.percepta.com/regions/europe/resources/blog/2012/03/30/owns-social-media-customer-service/



Meet Andrew! He loves watching and playing soccer. He is a regular online shopper and also has multiple loyalty cards with his favorite stores.

Customer Journey Use Case2

• 25 year old single male

• Lives in Boston, MA

• Has 230 Twitter Followers

• Works in PR

• Drives a Toyota Matrix 2012 ($20K Value)

Trusted Brands: Sky, Amazon, Motorola,

Samsung, Apple, Adidas, Nike

Social Footprint

The effective Integrated Marketing Management solution will engage with Andrew through the entire customer journey, thus increasing the total customer lifetime value

Aware

Engaged Interacting

Transacting

Loyal

Involved


The Intelligent Advisor solution is aware in real-time of prospects like Andrew who are an ideal target for the retailer

Solution Capabilities

Andrew receives a work bonus for the month and decides its time to get a bigger HDTV screen.

He posts a question in Twitter asking his followers what is the best and latest HDTV value for money.

The event is captured by the store and a suggested message is sent to Andrew’s iPhone with value and price comparison links.

?

Customer is Aware



Engaging with Andrew at the right time, on the right channel and with the right message requires very accurate data capture and analytics

Solution CapabilitiesCustomer is Engaged

Andrew is in a rush and does not have time to look at the reply he just received. When he gets home that evening, he brings up Twitter on his iPad and reads the provided information.

He posts a follow-up question asking about the differences in a Panasonic VIERA TC-P55ST50 versus the VIZIO E601i-A3. A live agent picks up the request and starts a DM conversation



The biggest probability of conversion on an offer happens when there are fewest steps and simplest path to complete the transaction

Solution CapabilitiesCustomer is Transacting

Andrew receives the needed information via Twitter along with an email follow-up as he requested.

Andrew gets busy through the week and forgets about the offer. On Saturday morning he is walking through the shopping center next to the store when he gets another DM notify with 10% off for the VIZIO E601i-A3 he wanted. He walks into the store and redeems the offer.



Ongoing interaction with the customer ensures satisfaction and/or awareness of any issues before the customer sends negative messages to others

Solution CapabilitiesCustomer is Interacting

On his way home from the store, Andrew receives an email with a link to the Facebook page that has great tips and FAQs for best viewing experience.

After a quick configuration of the TV, he posts a Facebook like + quote on his good experience with the store.



Identifying and increasing the value of the customer requires ongoing and dynamic models that are able to keep the client engaged

Solution CapabilitiesCustomer is Involved

Andrew logs into his PC on Sunday to register the warranty for his new TV. He is shown a soccer-themed page with info about how the combination of productswill offer him the perfect way to watch his TV.

He sees the offer on the screen protector is only valid if he buys today so he decides to ‘click and collect’ at his nearest store the following day.



When the customer is satisfied with the shopping experience and begins to trust the store, loyalty and advocacy are increased which leads to spend

Solution CapabilitiesCustomer is Loyal

Andrew goes to the store to collect the screen protector.

The check-out clerk recognizes Andrew as a customer with high influence and offers him a $25 coupon if he can email and get three of his friends to click on the link in the email for the latest HDTV offers.



A complete Integrated Marketing Management Solution contains the capabilities needed for providing effective analytics embedded in the entire marketing process like in seen Andrew’s journey

Integrated Marketing Management Solution

Analyse Execute

Outbound Call

SMS

Social

Mobile

Web Data

Industry Data

Consumer Reports

E-Commerce Data

POS Data

Social Media

Capture

Earned

Paid

Owned

Industry Data

Industry Data

Improve customer traffic to the stores

Improve percentage of visits ending in a

purchase

Increase efficiency of marketing spend

Convince consumers that you are relevant

Align customer insight to product availability

in regional stores

Share data collaboratively with

channel partners

…

Solution Use Case Catalog

Clustering

Next Best Action

Next Best Offer

Pattern Detection

Entity Analytics

A Complete IMM Solution3


The Opportunity: Extracting and monetizing new and game changing insight from an immense volume, variety and velocity of data.

Grab the <5% of tweets of interest in 12 terabytes of tweets created everyday

Harness the Network data in real time.

Correlate advertisement with location, contract and consumer information for in context delivery

Identify potential triggers for advertisement in millions of XDR and Network events in seconds

Analyze more then 500 million Call Detail Records per day

Harvest insight from the 80% of new data growth coming from email, documents, images, video and social media

Volume (ability to process for use) Velocity (at the speed of business)

Veracity (increased odds for success)

@

Variety (enrich correlations / outcomes)

Getting insights from data to drive the business requires effective analytics across all four dimensions of volume, velocity, variety and veracity



Capture

The key principles that deliver the differentiating factor in higher Marketing ROI are based in the solution accuracy and business execution

Analyse Execute

CustomerHub

• Data Timing - Capture data from all sources (structured / unstructured) in batch and real-time mode

• Size - Import large amounts data for continuous learning

• Resolution – Link and resolve entity, privacy and security aspects of the data

• Precision – The ability to extract the most relevant insights with highest precision

• Adaptive Learning – Dynamic models able to keep pace with customer and market changes

• Linked – Use insights relevant to business objectives and across the organization

ClusteringFeature Library

Decision Models NBA Optimization

• Relevancy – Use consumer trust patterns of engagement

• Speed – Engage with the consumer in the ideal opportunity window

• Profitability – Optimal cost of execution for the most profitable results

e



End to End Integrated Marketing Solution

1. Define Marketing Strategy

2. Configure IA Solution

Assessment Matrix

Customer Features

Locations Keywords

3. Embed Solution

Into Marketing Process

4. ExecuteMarketing

PlanAnd Refine Approach

People Tasks

Key BusinessKPIs

Workflow


Business alignment is key to driving the approach in the implementation of the proper IMM capabilities that delivery the expected business results

Define Outcomes

BusinessMetric

Measure Action

BehaviorMetric

Analyze Sentiment

Attitude Metric

Measure Activity

VolumeMetric

Business Outcome Alignment Matrix

The key variables driving business results are realized by using IBM’s proven gap analysis solution called Enterprise Marketing Management Assessment

Smarter Marketing Execution4


The Marketing Capabilities Catalog provides a structured approach to implement the marketing strategy using customer analytics

Improve Traffic to the Store

Anticipate Customer Needs

Use Real Time Interaction to Drive Traffic

Generate Leads

View Purchasing Patterns

Create a 360 Degree of the

Customer

Improve Marketing Efficiency

Targeted Promotions From

Social Media

Targeted Promotions From Customer History

Improve Brand Perception

Measure Brand Performance

Understanding the Competition

Outsmart the Competition

Location / Telco Triggered Marketing

Offers that Counter the Competition

Stock Stores Based on Trends

Personal Shopping Guide

App

Point of Sale Based

Promotions

Sales Agent Engagement in

Store

Interest Based Offer in Store

Browsing + CDR based Offers

Smarter Marketing Execution4


Technology

Solutions

Decision Optimiz

ation

Customer

Foundation:

Action Clusters

Application To

• Customer Segmentation• Optimized Marketing Spend• Discovering New Customers• Increasing Customer Lifetime

Value• Increased Advocacy and Spend

Truly customer-centric approach, methods & technologies

• Strategy based on customer investment model with aligned allocation of all resources to strategic growth objectives

• Tactics aligned to strategies – customer treatments, relevancy and timing integrated with strategic resource allocation – all grounded in customer insights

Decision optimization applied at all levels

Real-time architecture – holistic solution with ongoing refinement and improvement from insights across the globe

Size and scale – IBM has resources in every discipline and geography

IBM researchers are redefining where discovery happens by stepping outside of the laboratory and challenging the status quo to solve some of the world's most complex problems.

Why IBM?

Appendix6

Integrated marketing for the customer journey

Documents