WANT COMMITTED RELATIONSHIPS? Or, is your brand really a one night stand? IT’S NOT ABOUT YOU. IT’S ABOUT THEM.

1. THE ELUSIVE PARADIGM OF LOYALTY
CUSTOMER ENGAGEMENT IN A CONNECTED WORLD
TIM SUTHER
CHIEF MARKETING OFFICER, ACXIOM
FTMA APRIL 2011
®

2. TODAY’S QUESTIONS
1. What capabilities distinguish high performance marketing
organizations? What is the upside opportunity?
2. How do high performing marketers prioritize in a world of
overwhelming choice?
3. What are the high payback tactics?

3. THE END IS NEAR…
For marketing as we knew it
Consumers are boss
One night stands ≠ committed relationships
Yelling louder ≠ customer engagement
Media mix reflects yesterday’s consumption
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4. WHAT CAPABILITIES DISTINGUISH
HIGH PERFOMANCE MARKETING?
15-30% improvement opportunity for most companies
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5. TAKING FLIGHT…
The era of customer engagement driven marketing
Duh…it’s about customers
Institutional memory
Differentiated value of customers
The need for a private exchange
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6. WANT COMMITTED RELATIONSHIPS?
Or is your brand really a one night stand?
IT’S NOT ABOUT YOU.
IT’S ABOUT THEM.
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7. THE MARKETING DEMOCRACY
I’m in charge here…and you’re not
REMEMBER EVERY
INTERACTION & LEARN

8. THE MASS MARKET IS AN ILLUSION
Is it really acceptable to annoy 95% of the population to get through to the 5%?
NARROWCAST,
NOT BROADCAST
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9. THE NEED FOR A PRIVATE EXCHANGE
Your audience, addressable anywhere, reached with certainty
YOUR MONEY.
YOUR INSIGHT.
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10. HOW DO I PRIORITIZE IN A WORLD
OF UNLIMITED CHOICE?
Maximize value from existing customers
Engage with customers “there”
Improve “intent harvest” from prospective buyers
Generate demand more insightfully
Substitute media & channel based upon actual
customer preference & behavior 10

11. UH, NOT EXACTLY…
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12. WHAT ARE HIGH PAYBACK TACTICS?
Customer lifecycle marketing
Focus on trigger-driven messaging along the life cycle
• 15x profit v. broadcast programs
• Pull customers (v. push products) – 3x revenue/email (retailer)
• Dynamic product offers - increased revenue 46% in stores & 17% online (tech
• Everything as a service
Integrate across media & channels
• Integrate mobile/email – 7.5x website spend retailer
• Integrate outbound/website– 2x bookings hotelier
Solicit customer input/action
• Preference center – HP Technology at Work
• Solicit ratings/reviews – conversations are crucial
• Design content to be viral – 2-4x link performance
Fundamentals matter
• Customer information decays 2%/month
• $144 million of commercial email won’t reach the inbox in 2014

13. WHAT ARE HIGH PAYBACK TACTICS?
Time & location-based marketing
Customer lifecycle marketing goes wireless
• SMS for time sensitive messages:18x return (retailer)
• Inventory availability drives “on premise” revenue: 5% conversion (casino)
• Solicit customer input/action: experiences, ratings, reviews, check-ins,
surveys
• Near-field communications/mobile commerce
Reach new buyers
• Loyalty enrollment via SMS: 280,000 new members, (retailer)
• Mobile advertising driven by your database
• Shopping apps, price comparison & QR codes play defense…and offense

14. WHAT ARE HIGH PAYBACK TACTICS?
Harvest Intent
Improve search visibility
• SEO - 80% of click throughs are organic
• Customize/monitor the landing experience
Drive conversion through personalization
• Dynamic personalization to “optimize the real estate”: 9x return (insurer)
• Algorithm-based recommendations: $100 million revenue uplift (telco)
Effectively re-market
• Retargeting via display or email – 12x return (e-Commerce site)
• Confirm chat with e-mail

15. WHAT ARE HIGH PAYBACK TACTICS?
Smarter demand generation
Find your high value audience. Filter out the rest.
• 80% of online advertising fails to reach its intended target.
• Collaborative Targeting: 11x return (retailer)
Make brand advertising actionable & accountable
• Interactive Television – coupons, samples, more information
• An emerging opportunity in online display. Brand represents just 5%
Leverage multidimensional insight
• Combine purchase, response, value & risk scores: $7600 deposit/household
increase for contacted households. Retail Bank
• Combine seasonality, customer potential, price elasticity, halo effects, social
influence: 3x room nights (Casino)
• Connected primary research: 5.5x improvement (telco - “cord/cable cutters”)

16. WHAT ARE HIGH PAYBACK TACTICS?
Media & channel substitution
Arbitrage duplicative contacts based on preferences
• $112 billion in US advertising wasted per year. What Sticks
• Email & print:4x revenue/email (leading publisher)
Substitute based on preferences
• From mass to targeted:10% revenue increase (multi-format retailer)
• From call center to self serve: $4.5 million expense savings/yr (technology
firm)
• From print to digital: 22% conversion in 45 days (airline)
• From paid search to organic search & display: 52% better CPA (Google)
• From paid to earned/curated

17. THE RENAISSANCE
“…in Italy for 30 years under the Borgias they had warfare, terror, murder, and bloodshed,
but they produced Michelangelo, Leonardo da Vinci, and the Renaissance.
In Switzerland they had brotherly love - they had 500 years of democracy and peace, and
what did that produce? The cuckoo clock.”
- Harry Lime, The Third Man

18. OUR RENAISSANCE
Key takeaways for a connected world
Not all customers are created equal. Engage/invest accordingly.
Prioritize programs by impact upon customer lifetime value.
Target your multi-dimensionally defined audience . Other
definitions waste money.
Leverage a safe haven to “anonymize & match” proprietary
customer data. Demand key partners participate.
Remember every interaction & learn. Personalize, coordinate,
test & measure
Play the data as it lies. Be “in market” in a career relevant
timeframe.
Harvest “easy money” while pursuing “big money”
4 interrelated capabilities drive high performance. Invest in them
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19. FOR MORE INFORMATION
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20. THANK YOU
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