Enterprise Customer Insight: Case Studies in Driving Value Presented at CMO Exchange on January 28, 2013.

1. ENTERPRISE CUSTOMER INSIGHT…
CASE STUDIES IN DRIVING VALUE
Tim Suther, Chief Marketing & Strategy Officer
January 28, 2013
@timsuther
© 2012 Acxiom Corporation. All Rights Reserved.

2. The defining issue for all marketers…
how to engage empowered consumers
2

3. $112 billion in wasted advertising a year in the US
Rex Briggs & Greg Stuart, What Sticks
3

4. RELICS OF A BYGONE ERA
Broadcasting when narrowcasting was needed
“Reliance on the 18-49 demographic Is hazardous to all media and marketers”
David Poltrock, CBS
Channels and products prioritized over customers
80% of CEOs believe they provide a superior customer experience. Just 8% of customers agree
Bain
Data has not been integral to marketing decision-making
Marketers depend on data for just 11% of all customer-related decisions
Corporate Executive Board
4

5. Insanity: doing the same thing over and over again
and expecting different results
5

6. DATA IS NOW ON PAR WITH LABOR & CAPITAL
AS A RAW MATERIAL IN CREATING VALUE
Sources: MIT, McKinsey, Acxiom, BMO
6

7. BIG OPPORTUNITY #1
EXTEND THE REACH OF YOUR INSIGHT
Focus on the “intersection of insights”
The basis for hyper-relevant experiences
7

8. TV AD PLACEMENT ANALYSIS
MASS BUY v OPTIMIZED BUY
NCAA Tournament Actual vs. Optimized Ad Placement
Time Period: March 13th - April 3rd
45
40
35
30
25
20
15
10
5
0
Buick LaCrosse 2012 NCAA TV Buy
Actual Buy PD Proposed Media Buy
Optimized Buy
Cost to reach 1000 buyers
Past NCAA Buy $169.84
92% improvement
Optimized Buy $14.39 in reaching buyers
8

9. EXAMPLE IN OPTIMIZING POTENTIAL
PROBLEM
> Retailer sought to understand category and customer potential (not just
what it was presently selling)
APPROACH
> Calculated category potential (combined retailers own data and third
party spend and interest data)
RESULTS
> Identified “best” customers that purchased more from competition
> Incremental 5% revenue opportunity identified.
9

10. BIG OPPORTUNITY #2
DIFFERENTIATED CUSTOMER VALUE
10

11. CUSTOMER VALUE VARIES GREATLY
+ 500%
Contribution to
Overall Profit
0
Customer Value Segment Top 30% Next 50% Bottom 20%
Contribution to
Overall Profit
- 400%

12. EXAMPLE IN ENHANCING CUSTOMER VALUE
PROBLEM
> Global financial service firm with 21% higher attrition than competition
APPROACH
> Calculated household-level customer value
> Created propensities for attrition, best product to sell, and life-time value.
> Focused on enhancing customer value and margin enhancement, not just
campaign ROI
RESULTS
> Increased net profits $186 million over 3 years
> Decreased attrition by 24.3%
12

13. EXAMPLE IN INCREASING MARGINS/TICKET SIZE
PROBLEM
> Worldwide hospitality firm seeking to increase purchase rate & price
APPROACH
> Calculated propensities for visit, purchase and ticket size.
> Prioritized marketing investment by these propensities
> Applied to a variety of outbound campaigns across media.
RESULTS
> Increased volume per guest ~50% within 6 months
13

14. BIG OPPORTUNITY #3
EXTEND BREADTH OF INSIGHTS
Analytics data should be multi-dimensional
Unlock data from media and channel silos
14

15. EXAMPLE IN MULTIDIMENSIONAL INSIGHT
PROBLEM
> National retailer wanted to efficiently message customers of a
competitor which was experiencing market difficulties
APPROACH
> Created “conquest” shopping propensities based on existing customer
behavior and affinities to various brands/retailers.
> Incorporated third party spending, syndicated research, demographic
and retailer’s first party data.
> Deployed for multiple back to school and holiday seasonal campaigns
RESULTS
> Up to 8.7x lift in response
> 50% lift in average sale
> Up to 250% ROI
15

16. EXAMPLE IN SILO BUSTING
PROBLEM
> Global consumer products company with information trapped in
disparate channel systems, resulting in inaccurate and incomplete view
of customers and prospects
APPROACH
> Integrated customer and prospect information from all
channels, including mail, email, digital and mobile advertising
> Created and deployed an unique customer identifier
RESULTS
> Annual contribution margin increase of $470 million.
> Annual cost-savings $18.6 million.
16

17. BIG OPPORTUNITY #4
DATA TO CHANGE LIVES…AND BRAND EXPERIENCE
Digital health feedback systems & coordinated health information
Control the outbreak/spread of disease
Enhanced safety – detect criminal activity & locate criminals
Find love – 1 in 6 marriages start online
Rally around causes important to us – democracy, sustainability, etc
Digital concierge tunes the world to our preferences
Adaptive education
17

18. Focus on the intersection of insights.
Know and act upon customer value.
Create & feed
enterprise multidimensional customer insight.
Use data to changes lives and brand experience.
18

19. THANK YOU.
QUESTIONS?
acxiom.com/FaceBook acxiom.com/LinkedIn acxiom.com/Twitter Discover more at acxiom.com
© 2011 Acxiom Corporation. All Rights Reserved.