Highlights 4 key capabilities to reach/engage customers in a connected world. 1) Reach/engage your audience by narrowcasting, 2) multidimensional insight - filter out the false signals that cost money and harm brands, 3) create a central nervous system - the synapse to send/receive stimuli then recalibrate, and 4) personalized/coordinated engagement at the moment of truth, when customers are engaged with your brand, and when they're out living their life. These capabilities can facilitate redirection of 15-30% of marketing programs/media spend

1. Hope is not a Strategy
A capability model for successfully reaching
and engaging consumers
Forrester Customer Experience Forum
June 2010
1

2. About Acxiom
• Global marketing services and
technology company. Focused on
audience and customer engagement
• #1 Ad Age Agency
• US Agency Overall
• US CRM/Direct Marketing
• Quick Facts:
• 5,700 clients in 40 countries
• 300,000 campaigns/year
• 5 billion consumers engaged/year
• 1 trillion customer recognition events/year

4. A crisis in customer engagement
Just 8%
of their customers agree
Source - Bain

5. A crisis in insight & focus…
2Forrester Research

6. 3comScore

8. Capability model for a connected world
Target 15-30% of spend to redirect

9. Capability model for a connected world

10. 1. Reach/engage your audience
Customer value varies greatly
+ 500%
Contribution to
Overall Profit
0
Customer Value Segment Top 30% Next 50% Bottom 20%
Contribution to
Overall Profit
- 400%

11. 1. Reach/engage your audience
Most firms are not getting their fair share of valuable buyers
Retailer 1 Retailer 2
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Cookware/Kitchen Clothing/Apparel Buyer
Accessories Buyer
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Acxiom, comScore

12. 1. Reach/engage your audience
Valuable buyers are hard to recognize
Portal 1 Portal 2
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Portal 3 Portal 4
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
12
Acxiom, comScore

13. 1. Reach/engage your audience
Valuable buyers are hard to recognize
TV Network 1 TV Network 2
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
TV Network 3 TV Network 4
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments

14. Therefore,
Most Firms…
Under-invest in
high value relationships
Over-invest in
low value relationships

15. 1. Reach/engage your audience
Narrowcast, not broadcast
Retailer 1 v Portal 1
This retailer’s best customers
are under-represented on this portal
UV Index
PersonicX Consumer Segments

16. Capability model for a connected world

17. 2. Multidimensional Insight
What do you see?

18. 2. Multidimensional Insight
Sorry, there are no silver bullets

19. 2. Multidimensional Insight
Just about online context/behavior?

20. 2. Multidimensional Insight
Just about online context/behavior?

21. Capability model for a connected world

23. Capability model for a connected world

24. 4. Personalized & coordinated engagement
In the Marketing Democracy

25. 4. Personalized & coordinated engagement
Illustration
When Becky visits a site,
audience insights are leveraged
to personalize the engagement
We know:
• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:
• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:
She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
Create this experience across media / channels

26. 4. Personalized & coordinated engagement
Illustration
When Becky watches TV,
audience insights are leveraged
to personalize the engagement
We know:
• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:
• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:
She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
Create this experience across media / channels

27. 4. Personalized & coordinated engagement
Illustration
When Becky uses her iPhone,
audience insights are leveraged to
personalize the engagement
We know:
• Service history & preferences
• Preferred media, channel & cadence
• Transaction & response behavior
• Social influence
We predicted:
• Loyalty / attrition score
• Brand affinity & product propensity
• Brand image & price sensitivity score
• Product attribute / demand score
We noticed:
She has bought several smaller kitchen items using her store card
both online and in the store and she clicked on an email link featuring
kitchen appliances.
Create this experience across media / channels

28. Capability model for a connected world
Key requirements
Differentiated value of customers High performance matching engine
• The top 30% make 500% of profit. The bottom 20% consume 400% of • Knowledge based for higher accuracy/flexibility.
profit. Know the difference. • Support real-time & all digital formats.
• Integrate central nervous systems & personalization engine.
Partnership ecosystem Strategy, analytics & creative skills
• Reach your audience with certainty. • Leverage external, multi-sourced & verified consumer insights
• Business relationships & delivery integration with preferred advertising
partners.
• A safe haven for responsible matching of sensitive information.
Personalization engine “Logical” central nervous system
• Highly accurate audience recognition. • Correlate customer behavior with marketing/advertising across channels,
• Integrated decision engine, deployable across channels. media over time.
• Integrate matching engine & central nervous system. • Integrate existing databases.
• Integrate matching & personalization engines.

29. Capability model for a connected world
Delivering ROI
Tech Firm Personalized experiences…...4-5X ROI
$200 million revenue/yr
$4.5 million OpEx/yr Concentrate ad spend………..3-5X ROI
Retail Bank Connect web footprints
$100 million EBIT/yr & outbound messaging….….....2X ROI
CPG Firm Connect print & digital…….......4X ROI
$500 million revenue/yr
Connect call center
& digital………………………...3-5X ROI
Connect mobile & email….….7.5X ROI
Connect TV/offline…………….17X ROI
Target 15-30% of spend to redirect

30. What could have been
owned
but couldn’t
become

31. What could have been
owned
but couldn’t
become

32. What could have been
owned
but couldn’t
become

33. What could have been
It’s not enough…
A great customer base
A great product
A great strategy
A great team
Darwin always wins.
Will you?

34. Thank you. Questions?