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HOPE IS NOT A
STRATEGY
A capability model for
successfully reaching and engaging consumers




November 17, 2011




© 2011 Acxiom Corporation. All Rights Reserved.
ABOUT ACXIOM

> Vision: to be the most trusted partner for
  providing actionable customer insights to
  marketing leaders and their suppliers
  worldwide

> Mission: Acxiom refines data into insights
  to help marketing leaders make better
  business decisions

> Quick Facts:
  •   8,800 clients in 40 countries
  •   Process 18 trillion consumer updates / year
  •   Over 7,000 managed databases
  •   NASDAQ: ACXM
ACXIOM TRUSTED PARTNERS
Financial Services




Automotive




Retail




Communications, Media & Technology




Insurance




Travel & Entertainment



     The trademarks and registered trademarks on this page are the property of their respective owners.


                                                                                                          3
MARKETING IS AT A CRITICAL
      JUNCTURE!
 (JUST LIKE THE TRAFFIC IN SÃO PAULO)




                                        4
A crisis in customer engagement

                                       Just 8%
                                    of their customers agree




Source - Bain
A crisis in insight & focus…




2Forrester   Research
3comScore
CAPABILITY MODEL
FOR A CONNECTED WORLD
CAPABILITY MODEL
FOR A CONNECTED WORLD
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%
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
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

     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
Therefore,
Most Firms…
Under-invest in
high value relationships
Over-invest in
low value relationships
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
CAPABILITY MODEL
FOR A CONNECTED WORLD
2. MULTIDIMENSIONAL INSIGHT
What do you see?
2. MULTIDIMENSIONAL INSIGHT
Just about online context / behavior?
2. MULTIDIMENSIONAL INSIGHT
Just about online context / behavior?
RELIANCE ON THE 18-49 DEMOGRAPHIC IS
HAZARDOUS TO ALL MEDIA AND MARKETERS
                              David Poltrack, CBS
IF I ASKED MY CUSTOMERS WHAT THEY WANT, THEY
      SIMPLY WOULD HAVE SAID A FASTER HORSE
                                      Henry Ford




                                                   22
2. MULTIDIMENSIONAL INSIGHT
CAPABILITY MODEL
FOR A CONNECTED WORLD
3. MARKETING CENTRAL NERVOUS SYSTEM
Data quality matters
CAPABILITY MODEL
FOR A CONNECTED WORLD
CONSUMERS ARE BOSS
I’m in charge here…and you’re not




                                      REMEMBER EVERY
                                    INTERACTION & LEARN
4. PERSONALIZED & COORDINATED
ENGAGEMENT
Illustration
                            Meet Isabela                                   When Isabela
                                                                           visits a site,
                                                                           audience
                                                  Age
                                                  37                       insights are
     Married, 2 children,
         high value                                                        leveraged to
                                                                           personalize the
                                                                           engagement
        We know:
            • Social Class, Estimated Income, Household Demographics
            • Preferred media, channel & cadence
            • Transaction & response behavior


        We predicted:
            • Loyalty / attrition score
            • Brand affinity & product propensity
            • Brand image & price sensitivity score
            • Product attribute / demand score


        We noticed:
            She has been searching online for travel packages and filled
            out an itinerary form on Travel Tours website for two adults
            and two children to Miami but did not purchase




                         Create this experience across media /
4. PERSONALIZED & COORDINATED
ENGAGEMENT
Illustration
                            Meet Isabela                                   When Isabela
                                                                           uses her iPhone,
                                                                           audience
                                                  Age
                                                  37                       insights are
     Married, 2 children,
         high value                                                        leveraged to
                                                                           personalize the
                                                                           engagement
        We know:
            • Social Class, Estimated Income, Household Demographics
            • Preferred media, channel & cadence
            • Transaction & response behavior


        We predicted:
            • Loyalty / attrition score
            • Brand affinity & product propensity
            • Brand image & price sensitivity score
            • Product attribute / demand score


        We noticed:
            She has been searching online for travel packages and filled
            out an itinerary form on Travel Tours website for two adults
            and two children to Miami but did not purchase




                         Create this experience across media /
4. PERSONALIZED & COORDINATED
ENGAGEMENT
Illustration
                            Meet Isabela                                   When Isabela
                                                                           watches TV,
                                                                           audience
                                                      Age
                                                      37                   insights are
     Married, 2 children,
         high value                                                        leveraged to
                                                                           personalize the
                                                                           engagement
        We know:
            • Social Class, Estimated Income, Household Demographics
            • Preferred media, channel & cadence
            • Transaction & response behavior


        We predicted:
            • Loyalty / attrition score
            • Brand affinity & product propensity
            • Brand image & price sensitivity score
            • Product attribute / demand score


        We noticed:
            She has been searching online for travel packages and filled
            out an itinerary form on Travel Tours website for two adults
            and two children to Miami but did not purchase




                         Create this experience across media /
THE NEED FOR A SAFE HAVEN
Your audience, addressable anywhere, reached with certainty




                                                   YOUR MONEY.
                                                   YOUR INSIGHT.
                                                                   34
CAPABILITY MODEL
FOR A CONNECTED WORLD
CAPABILITY MODEL
        FOR A CONNECTED WORLD




+15-30%           +10-15%                   +5-7%
Marketing ROI   Customer portfolio value   Points of margin
CAPABILITY MODEL
          FOR A CONNECTED WORLD

Easy Money                               Big Money
Personalized experiences…...4-5X ROI     Tech Firm
                                         $200 million revenue/yr
Concentrate ad spend………..3-5X ROI        $4.5 million OpEx/yr

Connect web footprints                   Retail Bank
& outbound messaging….….....2X ROI       $100 million EBIT/yr
Connect print & digital…….......4X ROI
                                         CPG Firm
Connect call center                      $500 million revenue/yr
& digital………………………...3-5X ROI
Connect mobile & email….….7.5X ROI
Connect TV/offline…………….17X ROI
NOW WHAT?
HOPE IS NOT A STRATEGY!




                          40
CAPABILITY MODEL
FOR A CONNECTED WORLD
     Top 10 best practices
                       Applied Insight
                Prioritize your proprietary insight
          Data rights as part of every ad buy discussion
Safe haven to reach mutual customers of trusted business partners


                            Strategy
              Prioritize deeply branded experiences
       Define success as improving customer portfolio value
         Alter media mix and primary research approach
             Partners should be agents not principals
                     Optimize the enterprise


                Organizational Capability
Fuse proprietary analytics with customer recognition to personalize
     Marketing central nervous system to influence and sense


                                                                       41
UH, NOT EXACTLY…




                   42
WHAT COULD HAVE BEEN



                owned




           but couldn’t become
WHAT COULD HAVE BEEN



                owned




           but couldn’t become
WHAT COULD HAVE BEEN



                owned




           but couldn’t become
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?
THANK YOU. OBRIGADO.
     QUESTIONS? PERGUNTAS?

Acxiom Brasil
São Paulo | +55 11 3052 2111
Alameda Lorena, 638/114
Jardim Paulista, São Paulo, SP
01424-000

Porto Alegre | +55 51 3230 4400
Av. Padre Cacique, 320/3º andar B
Menino Deus, Porto Alegre, RS
90810-240
www.acxiom.com.br




      © 2011 Acxiom Corporation. All Rights Reserved.
CAPABILITY MODEL
                    FOR A CONNECTED WORLD

       +15-30%                               +10-15%                                 +5-7%
          Marketing ROI                   Customer portfolio value                  Points of margin

> Increase targeting efficiency &      > Improve health and breadth of      > Increase number of enduringly
  better attribute results to spend.     insight about customers.             loyal customers.
> Better influence & sense             > Acquire & extend more profitable   > Effectively cultivate word of
  consumer behavior.                     relationships.                       mouth.
> More effective media                 > Redirect less profitable           > Optimize use of pricing
  substitution. Coherently integrate     relationships.                       incentives.
  new media.                           > Establish CLV-oriented KPIs to     > De-commoditize intent.
> Improve marketing results with         guide decision-making.             > Minimize auction risk of your
  trusted partners.                    > Optimize customer segments &         consumer insight.
> Recapture value from ad tech           multichannel contact strategies.
  intermediaries.                      > Increase number of recognizable
> Improve test & learn                   consumers.
  performance.                         > Increase ability to recognize
> Integrate & rationalize systems to     consumers across channels.
  reduce cost.
> Faster time to market.
> Real-time personalized offers.

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Tim Suther, Acxiom

  • 1. HOPE IS NOT A STRATEGY A capability model for successfully reaching and engaging consumers November 17, 2011 © 2011 Acxiom Corporation. All Rights Reserved.
  • 2. ABOUT ACXIOM > Vision: to be the most trusted partner for providing actionable customer insights to marketing leaders and their suppliers worldwide > Mission: Acxiom refines data into insights to help marketing leaders make better business decisions > Quick Facts: • 8,800 clients in 40 countries • Process 18 trillion consumer updates / year • Over 7,000 managed databases • NASDAQ: ACXM
  • 3. ACXIOM TRUSTED PARTNERS Financial Services Automotive Retail Communications, Media & Technology Insurance Travel & Entertainment The trademarks and registered trademarks on this page are the property of their respective owners. 3
  • 4. MARKETING IS AT A CRITICAL JUNCTURE! (JUST LIKE THE TRAFFIC IN SÃO PAULO) 4
  • 5. A crisis in customer engagement Just 8% of their customers agree Source - Bain
  • 6. A crisis in insight & focus… 2Forrester Research
  • 8.
  • 9. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 10. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 11. 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%
  • 12. 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
  • 13. 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 Acxiom, comScore 13
  • 14. 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
  • 15. Therefore, Most Firms… Under-invest in high value relationships Over-invest in low value relationships
  • 16. 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
  • 17. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 19. 2. MULTIDIMENSIONAL INSIGHT Just about online context / behavior?
  • 20. 2. MULTIDIMENSIONAL INSIGHT Just about online context / behavior?
  • 21. RELIANCE ON THE 18-49 DEMOGRAPHIC IS HAZARDOUS TO ALL MEDIA AND MARKETERS David Poltrack, CBS
  • 22. IF I ASKED MY CUSTOMERS WHAT THEY WANT, THEY SIMPLY WOULD HAVE SAID A FASTER HORSE Henry Ford 22
  • 24. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 25.
  • 26.
  • 27. 3. MARKETING CENTRAL NERVOUS SYSTEM Data quality matters
  • 28.
  • 29. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 30. CONSUMERS ARE BOSS I’m in charge here…and you’re not REMEMBER EVERY INTERACTION & LEARN
  • 31. 4. PERSONALIZED & COORDINATED ENGAGEMENT Illustration Meet Isabela When Isabela visits a site, audience Age 37 insights are Married, 2 children, high value leveraged to personalize the engagement We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media /
  • 32. 4. PERSONALIZED & COORDINATED ENGAGEMENT Illustration Meet Isabela When Isabela uses her iPhone, audience Age 37 insights are Married, 2 children, high value leveraged to personalize the engagement We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media /
  • 33. 4. PERSONALIZED & COORDINATED ENGAGEMENT Illustration Meet Isabela When Isabela watches TV, audience Age 37 insights are Married, 2 children, high value leveraged to personalize the engagement We know: • Social Class, Estimated Income, Household Demographics • Preferred media, channel & cadence • Transaction & response behavior We predicted: • Loyalty / attrition score • Brand affinity & product propensity • Brand image & price sensitivity score • Product attribute / demand score We noticed: She has been searching online for travel packages and filled out an itinerary form on Travel Tours website for two adults and two children to Miami but did not purchase Create this experience across media /
  • 34. THE NEED FOR A SAFE HAVEN Your audience, addressable anywhere, reached with certainty YOUR MONEY. YOUR INSIGHT. 34
  • 35. CAPABILITY MODEL FOR A CONNECTED WORLD
  • 36. CAPABILITY MODEL FOR A CONNECTED WORLD +15-30% +10-15% +5-7% Marketing ROI Customer portfolio value Points of margin
  • 37. CAPABILITY MODEL FOR A CONNECTED WORLD Easy Money Big Money Personalized experiences…...4-5X ROI Tech Firm $200 million revenue/yr Concentrate ad spend………..3-5X ROI $4.5 million OpEx/yr Connect web footprints Retail Bank & outbound messaging….….....2X ROI $100 million EBIT/yr Connect print & digital…….......4X ROI CPG Firm Connect call center $500 million revenue/yr & digital………………………...3-5X ROI Connect mobile & email….….7.5X ROI Connect TV/offline…………….17X ROI
  • 39.
  • 40. HOPE IS NOT A STRATEGY! 40
  • 41. CAPABILITY MODEL FOR A CONNECTED WORLD Top 10 best practices Applied Insight Prioritize your proprietary insight Data rights as part of every ad buy discussion Safe haven to reach mutual customers of trusted business partners Strategy Prioritize deeply branded experiences Define success as improving customer portfolio value Alter media mix and primary research approach Partners should be agents not principals Optimize the enterprise Organizational Capability Fuse proprietary analytics with customer recognition to personalize Marketing central nervous system to influence and sense 41
  • 43. WHAT COULD HAVE BEEN owned but couldn’t become
  • 44. WHAT COULD HAVE BEEN owned but couldn’t become
  • 45. WHAT COULD HAVE BEEN owned but couldn’t become
  • 46. 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?
  • 47. THANK YOU. OBRIGADO. QUESTIONS? PERGUNTAS? Acxiom Brasil São Paulo | +55 11 3052 2111 Alameda Lorena, 638/114 Jardim Paulista, São Paulo, SP 01424-000 Porto Alegre | +55 51 3230 4400 Av. Padre Cacique, 320/3º andar B Menino Deus, Porto Alegre, RS 90810-240 www.acxiom.com.br © 2011 Acxiom Corporation. All Rights Reserved.
  • 48. CAPABILITY MODEL FOR A CONNECTED WORLD +15-30% +10-15% +5-7% Marketing ROI Customer portfolio value Points of margin > Increase targeting efficiency & > Improve health and breadth of > Increase number of enduringly better attribute results to spend. insight about customers. loyal customers. > Better influence & sense > Acquire & extend more profitable > Effectively cultivate word of consumer behavior. relationships. mouth. > More effective media > Redirect less profitable > Optimize use of pricing substitution. Coherently integrate relationships. incentives. new media. > Establish CLV-oriented KPIs to > De-commoditize intent. > Improve marketing results with guide decision-making. > Minimize auction risk of your trusted partners. > Optimize customer segments & consumer insight. > Recapture value from ad tech multichannel contact strategies. intermediaries. > Increase number of recognizable > Improve test & learn consumers. performance. > Increase ability to recognize > Integrate & rationalize systems to consumers across channels. reduce cost. > Faster time to market. > Real-time personalized offers.

Hinweis der Redaktion

  1. Hope Is Not A Strategy: Connecting Audience Management and Personalized Consumer Engagement. We are at an inflection point in marketing and advertising:Today, 80% of CEOs think they provide a superior customer experience…just 8% of their customers agree80% of online advertising fails to reach its intended targetJust 32% of senior marketers know how their customers behave across channels…yet multichannel buyers are 4-5x profitableJoin Tim Suther, Senior Vice President at Acxiom and a Fortune 500 client to discuss what effective customer engagement should look like - personalized & coordinated across media. It requires multi-dimensional insight – customer level insight that goes beyond the transaction, integrating data from multiple sources to enhance your marketing database and drive a truly customer-centric experience.We will show you how you can:Reach you Audience with CertaintyEngage your Audience with ConfidenceTODrive revenue, reduce costs, improve customer profitability and marketing ROI
  2. You thought I came to tell about ‘no more tv’But in preparing this I came to a different conclusion.Look at the following with meLast year we already said: