Marketing, Technology, and the Empowered Customer

#CRMSummit2012 @jay_henderson © 2012 IBM Corporation

Marketing, Technology, and the Empowered Customer

Jay HendersonStrategy Director, Cross-Channel MarketingIBM Enterprise Marketing Management Group

@jay_henderson

#CRMSummit2012 @jay_henderson © 2012 IBM Corporation 2

But first, some introductions…

http://www.initiate.com/


Generation C -Customer are connected and in control

4 in 10 Smartphone users search for an item in a store

70% of online consumers

trust peer recommendations

77% of B2B buyers check with peers before buying

140 million+ active Twitter

users each month


How Generation C behaves

Customers and Prospects

Online

Email

Mobile

Call center

Stores

Kiosk, ATM

Point of sale

Postal mail


Marketer

One person behind all the

channels, guiding the dialogue

and relationship

Online

Email

Mobile

Call center

Stores

Kiosk, ATM

Point of sale

Postal mail

What Generation C expects




What Generation C often experiences

6


Online

Email

Mobile

Call center

Stores

Kiosk, ATM

Point of sale

Postal mail

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

agenda

strategy

data

tech

Marketing


But…you know all of this already…

How do I get there?


Succeeding with Generation C means...

Marketing so good it feels like a service…

…and service so good it’s marketing


Better marketing........requires a holistic approach

1. Customer centricity beyond marketing

2. A long term plan for a system of engagement

3. The right marketing culture








EnergizeCustomersDelightedFansBroadcasters

Customer ExperienceQualityConsistencyConvenience

Customer

Demand GenerationConsideration

PreferenceTransact

Awareness

Prospects

Good Marketing is Service

Good Service is Marketing

Marketing must understand and influence the complete customer experience


High-performance marketers champion the customer experience

Marketing at outperforming

companies is nearly 3X more likely to proactively lead

customer experience across all channels

Outperformers Rest of population0%

5%

10%

15%

20%

25%


Only 22%

51%

Currently run social tactics as part of integrated campaigns.

79% Run social marketing in silos, discretely and on an ad hoc basis.

Of marketers don’t use social media data to inform decision about marketing offers and messages.

Own the operational process to influence social conversations


Share customer information with other parts of the business

MarketBuy

Service Sell

Marketing must move beyond its silo and focus on business results

Marketing with merchandising

Marketing with on and off-line sales

Marketing with customer service

Marketing with the supply chain

Marketing with IT


Creates and manages one-to-one marketing across all channels

Serves marketing messages during a purchase

Serves marketing offers and customer care messages during service and

support interactions

Provides input into supply networks based on consumer demand

72%

62%

53%

45%

59%

52%

40%

40%

Marketing’s influence

High-performance organizations leverage good

marketing across many functions

Outperformers Rest of population

High performing marketers are connected


Beyond the boundaries of the enterprise with the network effect

Share customer information with partners, agencies and customer communities


Customer centricity beyond marketing

Understand and influence the complete customer experience

Own the operational process to influence social conversations

Share customer information with other parts of the business

–for retailers: leverage consolidation between merchandising and marketing

Share customer information with partners, agencies and customer communities













What is a system of engagement?

Collectdata that augments

each customer profile

Analyzeto indentify opportunities

and predict outcomes

Collectdata that augments

each customer profile

Managemarketing processes and

measure results

Decideon the best action, offer, content and/or channel

Deliverrelevant pricing, engaging messages, and capture reactions


You can’t get there with this…

SMSMarketing

FilesFiles

FilesFiles

Files Customer Database

Files

Email Service Provider Web Analytics

Provider

Website Behavioral Targeting

Search Marketing Dashboard

Customer Insight ToolPredictive

AnalyticsMarketing Finance Mgmt

Digital Asset MgmtCall

Center/Inbound Decisioning

Marketing Operations

Mgmt

Lead Management

Local Marketing

Predictive Analytics



85% agreethat they need an integrated marketing suite.

Marketers agree that an integrated marketing suite is a key part of the solution

But 59%Believe existing systems are too disparate to integrate across channels.

And 71%think that this needs to be across all channels – paid, earned, owned.

Source: The State of Marketing 2012 IBM’s Global Survey of MarketersBase: Total Sample (n=362)


IBM (and other large vendors) have embraced the idea of the EMM suite

A marketing technology category that supports the end-to-end marketing

function across all marketing disciplines


EMM suites will simplify creating your system of engagement

• Not just any suite but best-of-breed suites (modular)

• You don’t have to buy everything from one vendor (shhh…)

• Balance practicality with definition of a suite

• Balance business agility with suite integration


Develop a plan for….a system of engagement

Start with key pain points and work down the list

Integrate digital behavior with traditional data sources

Scale and support millions of relevant offers

Consolidate silos and introduce standards-based suites and hybrid suites

Introduce data syndication standards inside and outside the organization

Systems of engagement

ensure relevant and positive

customer experiences

across all touch points that are aligned with corporate character










3. The right marketing culture3. The right marketing culture


Balance analytics and creative talents

Analytics Creative

+

Mix together the art of marketing and the discipline of science…


Work with IT not around IT

Ownership and flexibility: IT IT really should own solution architecture, but…

– IT needs to earn credibility with marketing (know the business needs)

– IT needs to be sensitive to the need for significant change IT’s choice:

Be 100% standards-driven/inflexible and

influence 50% of marketing technology design

Be 20% flexible and influence 100% of

marketing technology design

OR


High performing marketers work betterwith IT

Overall, marketing and IT work well together. Marketing and IT at high-performing

companies, however, work more effectively .

High Performers

51%

41%Lower Performers

Base: Total Sample (n=362)

Q. How well does marketing collaborate with IT?


Digital Marketing

Traditional Marketing

Break down the marketing silos (and create bridges)

31


Digital Marketing



Only 29%Of marketers are very effective at integrating channels.


Digital Marketing



65% Less than 1 and 5Of 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.

Leverage online data to inform one-to-one offers in traditional channels.

33


High performing marketers leverage their online data in other channels

Base: Companies that have online visitor data (n=351)

May 2012


…finally…

Accept mistakes and learn from them, be agile enough

to iterate and improve


Cultivate the right marketing culture

Create an organization that balances analytics and creative talents

Work with IT not around IT

Break down the marketing silos — digital and traditional marketing must consolidate and collaborate

Accept mistakes and learn from them, be agile enough to iterate and improve







Addressing CMO’s needs systematically and for the long term

Educating and influencing CIOs and CEOs to help improve marketing

Explaining and escalating CMO’s agenda in IT

Setting marketing standards through robust technology

Providing best practices, market insight and benchmarks

IBM is fulfilling the promise of connected marketing


Marketing, Technology, and the Empowered Customer

Business

social marketing

better marketing

business marketing

marketing messages

right marketing culture

customer centricity

ibm corporation6

generation c customer