Oracle Customer Advisory Board Presentation, Napa, February 2014

The Makings of the Modern Marketer

April 3, 2014Charlene Li, Founder and AnalystAndrew Jones, Analyst

This was once the scale of a customer relationship

Today it’s not so easy.

How do we build one-to-one relationships at scale?

In 2014, the customer journey will continue to fragment, making it harder than ever for brands to track and engage with customers

Marketing Sales Customer Service HR Innovation etc.

The Dynamic Customer Journey

Awareness Consideration Intent Purchase Support Loyalty Advocacy

“A friend of mine gets Christian Mingle ads, even though he’s Jewish and married. That shouldn’t happen. His religion and marital status are available on Facebook.”-Bill Piwonka, VP Marketing Janrain

90%Of companies are committed to delivering an integrated customer experience

Source: Econsultancy & CACI

20%Have a well developed strategy

Source: Econsultancy & CACI

The Modern Marketer Aims to:1. Provide consistent, exceptional,

personal experiences2. By leveraging the right customer

data3. Delivering the right message, at the

right time, in the right channel

The Modern Marketer Aims to:1. Provide consistent, exceptional,

personal experiences2. By leveraging the right customer

data3. Delivering the right message, at the

right time, in the right channel

Brands prioritize customer experience, change their perspectiveInside out Outside inWhat is the customer’s experience?How can it be improved?

Image source: Betsy Weber, Flickr, used under Creative Commons

40% of $1billion+ enterprises have a Chief Customer Officer

Source: CCO Council

Personalized messaging is more effective

Research shows that personalization can deliver five to eight times the ROI on marketing spend, and lift sales 10% or more.

- McKinsey, HRB blog, 2012

It’s about relationships

$$$ $ $$$$$$

Location

Demographics

Transaction history

Socialgraphics

Etc.

Each customer is unique

Browsing history

The Modern Marketer Aims to:1. Provide consistent, exceptional,

personal experiences2. By leveraging the right customer

data3. Delivering the right message, at the

right time, in the right channel

Little Data trumps Big Data

When is it valuable to know more about customers? What data matters?

• Lead scoring

• Prevent Churn

• Conquesting

• Sampling

• Reward loyalty• Promote advocates

• Reactivation

• Productpersonalization

• Identifyinfluencers

• Lookalike Audiences

• Anticipatesupport

SEM

Website content

Ads:display,

retargeting, affiliate

Email

SMS

Case Study: Universal Music Group uses social data to better target customers

• Profile• Friends• Reviews• Comments• Location• Shares• Views• Likes

Universal Music Group uses social data to better understand customer interests

1. Match social profiles to email through social login

Social scores

Append to email database

2. Capture social signals• Facebook Likes• Twitter Follows• Spotify Listens• Youtube Views

Non-Targeted EmailUnique Open Rate:

• “Batch & Blast”• Content Heavy, 20+

Promoted Items

UMG’s Interscope Records customer email

7%

Targeted Twitter Followers of • Will.i.am• Britney Spears• Lil Wayne• Diddy

Interscope sees lift in open rates by targeting with social signals

Semi-targeted EmailUnique Open Rate:

16%

Targeted by:• “The XX” Social Scores*• Great Gatsby Social Scores

Combining social scores for even greater relevance, open rates increase 10x

Targeted EmailUnique Open Rate:

*Note: for those unfamiliar, “The XX” is a band

66.7%

The Modern Marketer Aims to:1. Provide consistent, exceptional,

personal experiences2. By leveraging the right customer

data3. Delivering the right message, at the

right time, in the right channel

Retargeting is effective—but closing the loop is hard

Tools have potential to scale relationships

Customer action(e.g. download whitepaper,Watch product video)

Update lead score, send relevant message

Customer data is in silos

ServiceSales Loyalty Social Marketing

Consolidation of technology components is inevitable: data + engagement

Social Monitoring

Social Media Management

Marketing Automation/Email Marketing

Content Marketing

Data and CRM

DMP/Third party dataData

Engage

Social NetworkOracle Social NetworkCollaborate

The Modern Marketer Aims to:1. Provide consistent, exceptional,

personal experiences2. By leveraging the right customer

data3. Delivering the right message, at the

right time, in the right channel4. Through an organization of Modern

Marketers

What does a modern marketer look like?

Today, everyone is contributing to a dynamic customer journey

Digital Leadership Framework

Create Sticky

Content

Set Engagement Strategy

Filter Information/engagemen

t for meaning

Drive Organizatio

nal Capabilities

Personal Organizational

Internal

External

Assessment and Recommendations

Self-assessment: On a scale of 1-5, how do you rate yourself?

• Data about customers• Ability to create content &

experiences• Ability to deliver those experiences• Organizational integration

The Modern Marketer Will:1. Leverage the right customer data2. to provide consistent, exceptional,

personal experiences3. by delivering the right message, at

the right time, in the right channel4. through an organization of Modern

Marketers

So customer relationships can feel like this again

Thank YouCharlene [email protected]@charleneli

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.

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Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models.

Andrew [email protected]/blog@andrewjns