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Francesco Meloni




 IBM Enterprise Marketing Management
                                      09/05/2011




                   IBM Confidential        © 2011 IBM Corporation
Bringing Science to the Art of Marketing


IBM Enterprise Marketing Management
                                           Our EMM Offerings
    IBM’s Enterprise Marketing Management solutions offer proven web and customer analytics,
      event detection, cross-channel campaign management, interaction management, online
          ad/search optimization, email marketing, and marketing resource management.


    Customer and Partner Success                              Product Leadership
     Over 2,500 organizations worldwide                Meeting the needs of:
     Tens of thousands of total users                  – Cross-channel marketers
                                                       – Online marketers
     Extensive service offerings
                                                       – Marketing services
     >200 partners                                     Two deployment models:
                                                       – On Premises
                                                       – SaaS
                                                       The recognized leader in
                                                       marketing software solutions


                                              Our Mission
               To power the success of every marketing organization with innovative
                                      technology solutions
2
2                                                                                     © 2011 IBM Corporation
Bringing Science to the Art of Marketing


    More than 2500 Organizations Worldwide Depend on
    IBM’s EMM Solutions
                                                               Travel /     Healthcare &
    Financial                  Telecom     Retail / Catalog                                B2B / High Tech
                                                              Hospitality    Insurance




3                                                                                          © 2011 IBM Corporation
Bringing Science to the Art of Marketing


    Marketing’s Evolving Role



                                           Awareness            Demand Generation
                                                              Consideration, Preference, Transact


           Prospects




                                                  Customer                                    Customer
                                                  Engagement          Customers              Experience
                                                       Energized, Delighted,                Quality,
                                                       Fans, Broadcasters               Consistency,
                                                                                        Convenience




4                                                                                                         © 2011 IBM Corporation
Bringing Science to the Art of Marketing


    New marketing must…
          Engage each customer and prospect in a cross-channel
          dialogue that builds upon their past and current behavior
               IBM’s Enterprise Marketing Management Capability Framework




5                                                                      © 2011 IBM Corporation
Bringing Science to the Art of Marketing


    IBM’s Enterprise Marketing Management
          Comprehensive suite of marketing management capabilities

                        Awareness                    Decisioning                Execution

                        Web and Digital              Segmentation                  eMail
                          Analytics
                                                         Offer                    Inbound
                              Event                   Management                 Integration
                             Detection                 Interaction               Distributed
                                                         History                 Marketing
                            Predictive
                                                    Real-time and               Lead Routing
                            Analytics
                                                  Behavioral Targeting         and Monitoring
                             Visual                     Contact              Online Ad/Search
                           Exploration                Optimization           Bid Management


                                           Integrated Marketing Operations
                                  Facilitates collaboration and cross-channel planning,&
                                   Plans &
                                      Facilitates collaboration andData &
                                                   People &                  Measurement
                                                                   cross-channel
                                           design, execution, and measurement
                                   Budgets design, execution, and measurement.
                                    planning,     Processes        Assets     Performance

6                                                                                               © 2011 IBM Corporation
Bringing Science to the Art of Marketing


     EMM Enterprise: A Comprehensive Marketing
     Suite
                                     Awareness                            Decisioning                             Execution
                                            Behavior
Detailed Daily                              Detection                         Segmentation and Offer
                                                                                  Management                      Distributed
Transactions                                                                                                      Marketing
                                                        Behavior
                                                        Patterns
                                                        Detected                                                           Lead
                                                                                                 Online Ad              Management
 WebServer                   Customer/ Web                                                                                               eMail
                                                                                                Management
                               Analytics                                                Contact
                                                                                      Optimization
                                                             Predictive
                                                             Modeling                               Best Offers
                                                                                                                                          Call
                                                                                                                         POS     Web     Center

                                Cust. On-Line                                           Real-time
                                  Behavior                                                                    Context
                                                                                        Targeting
                                                                                                                           Contact and
                                        Identified
 Customer
Data Sources                          Likely Targets          Customer Behavior Warehouse                                   Response
                                                                                                                             History




                                                             Integrated Marketing Operations
                                             Financial F/C                                                    People & Process
                                               Planning                                                         Management




 7                                                                                                                               © 2011 IBM Corporation
Bringing Science to the Art of Marketing



Unica Campaign
                                           CAMPAIGN MANAGEMENT
                                           software:
                                             Used to plan, design, execute, measure and
                                             analyze personalized marketing campaigns
                                             Capable of managing all types of large-scale,
                                             multi-wave and cross-channel campaigns
                                             Creates a “marketing system of record” for
                                             offers, segments and interaction history
                                             Recognized best-of-breed functionality,
                                             scalability and record of customer success
                                             Serves as integration hub for add-on modules:
                                              –   Email marketing
                                              –   Contact optimization
                                              –   Real-time interactions
                                              –   Distributed marketing




8                                                                                                  8
                                                                              © 2011 IBM Corporation
Bringing Science to the Art of Marketing




    Unica Optimize

                                           CONTACT OPTIMIZATION
                                           software:
                                            Determines the optimal contact
                                            strategy for each customer
                                            Uses powerful, integrated algorithms
                                            Balances business objectives and
                                            constraints with customer
                                            preferences and history
                                            Achieves maximum overall
                                            marketing ROI while satisfying the
                                            need of individual product lines and
                                            businesses



9                                                                   © 2011 IBM Corporation
                                                                                         9
Bringing Science to the Art of Marketing




     Unica Detect Is Detect?
           What
                                           EVENT-
                                           EVENT-BASED
                                           MARKETING software:
                                              – Monitors customers’ granular
                                                transaction data and identifies
                                                meaningful behavioral changes

                                              – Alerts lead management or
                                                campaign management systems

                                              – Can work with overwhelmingly
                                                large volumes of data without
                                                requiring heavy additional IT
                                                investment

                                              – Comes with a library of trigger
                                                definitions and tools to define
                                                and build new triggers

10                                                                 © 2011 IBM Corporation
Bringing Science to the Art of Marketing




Unica Marketing Operations

                                           MARKETING OPERATIONS
                                           software:
                                            – Captures marketing plans
                                                                 plans,
                                              programs, campaigns, and jobs
                                            – Manages financials resources,
                                                       financials,
                                              and performance metrics
                                            – Streamlines marketing processes
                                              using best practice templates.
                                            – Provides insight through reporting
                                              and calendaring



11                                                                                       11
                                                                     © 2011 IBM Corporation
Bringing Science to the Art of Marketing




     Unica Interact

                                           REAL-
                                           REAL-TIME MARKETING
                                           software:
                                              Presents personalized messages in real-time
                                              during inbound interactions

                                              Personalization based on:
                                                – Existing customer data and new information
                                                  gained during the interaction
                                                – Or, behavioral targeting of anonymous visitors

                                              Designed for easy deployment and
                                              management (“so easy a marketer can do it”)

                                              Meets the most rigorous performance
                                              requirements. Up to:
                                                – 1,000s of transactions per second
                                                – Half-second average response time



12                                                                               © 2011 IBM Corporation
                                                                                                     12
Bringing Science to the Art of Marketing




     Unica eMessage
           Unica eMessage is an on premise email marketing solution that
          seamlessly leverages Unica’s OnDemand infrastructure to provide
                 managed email delivery and deliverability services




                                           Faster: fully integrated email solution
                                           requiring fewer steps and less manual
                                           data movement
                                           Easier: less integration work and a single
                                           vendor relationship
                                           Cheaper: no need to pay premium prices
                                           or manage internal infrastructure to get
                                           email delivered



13                                                                        © 2011 IBM Corporation
Bringing Science to the Art of Marketing


     Interactive Marketing Framework


                                                                                        2     Offline         Online
                                                                                              Remarketing/
         Customer
                                                                                              Event-Base     Presence
             Data
                                                                                              Campaigns
                                                                                                             Transactions
                Event                Centralized
               detection             Decisioning                                    1       Close-loop
                                                                                                             Search Eng.
                                                                                            email
                                                                                                             Referrals
                                                               3
                                                                                                             Community


                                                                                                             PPC
         Web                                                           On-site
        Behavior
                                                                   3                                         Ad Serving
          Mart                                                         behavioral
                                                                       targeting
                                                                                                             Affiliate
                                    Reporting:
                                    Improve web experience                                                   Email
                              4     Understand customer behaviors
                                    Increase campaign effectiveness
                                                                                                             Other Promo


14                                                                                                                       © 2011 IBM Corporation
Bringing Science to the Art of Marketing


     IBM Enterprise Marketing Management Mission



     To power the success
       of every marketing
        organization with
     innovative technology
            solutions




15                                             © 2011 IBM Corporation
Bringing Science to the Art of Marketing



  Increasing purchases with a focus on customer loyalty
                            automates marketing to increase relevance of messaging,
                            retain customers, and increase basket size and profits
                                                             Business Need
                                                                Shift from customer acquisition to building loyalty
                                                                with Reward Zone program
                                                                Evolve marketing spend from mass to more
                                                                personalized
                                                                Campaigns based on timing, trends, and triggers


                                  Real Results
                                     17% increase in operating profit
                                     More Effective Campaigns = More, Bigger, Better Baskets
                                  − 10% increase in trips to store
                                  − 20% increase in shopping basket size
                                  − 20% increase in margin
                                     Process Improvements
                                  − 82% reduction in cycle time, 3x improvement in efficiency
                                                                                                      © 2011 IBM Corporation
Bringing Science to the Art of Marketing



  Highly targeted email and direct mail executed by marketers
                                    allows marketers to easily create and deliver personalized
                                    emails based on segment and web analytics

                                                           Business Need
                                                             Provide marketers with the ability to build their
                                                             own campaigns using both offline and web data
                                                             Support new channels: email, web, social in a
                                                             coordinated fashion
                                                             Replace outdated systems to accommodate
                                                             multichannel business and large email volumes

                     Real Results
                        Increased the number of email and direct mail campaigns delivered—without
                        increasing headcount
                     − Expanded personalized email marketing to “primary channel”
                        Reduced email costs by 40% compared with previous solution
                        All marketing managers can create and execute campaigns
                        Led to record profits in two consecutive years

                                                                                                    © 2011 IBM Corporation
Bringing Science to the Art of Marketing



  Choosing the best offer for customers and profits
                                 optimizes offers across in-store kiosks, email, statements,
                                 and in-store events to increase revenue and profits

                                                        Business Need
                                                          Managing complex, massive loyalty program that
                                                          includes 82% of the UK’s female population
                                                          Improving cross channel execution - website, email,
                                                          kiosk, direct mail
                                                          Delivering relevant offers to customers that are
                                                          profitable for Boots and its product suppliers



                   Real Results
                      Highly optimized offers for customers in loyalty program
                      Offers in statements led to double digit increase in incremental sales , coupon
                      response rates and profits
                      In store events led to year over year increase in sales and net profit
                      Test and learn program - ROI achieved in months

                                                                                                        © 2011 IBM Corporation
Bringing Science to the Art of Marketing


  Driving smarter marketing with integrated execution
                                     coordinates marketing across departments leading to
                                     generate fewer more effective campaigns

                                                       Business Need
                                                         To coordinate people involved with marketing
                                                         operations
                                                         Report information in many ways in order to know
                                                         the impact one marketing program has on the others.
                                                         Quantify results
                                                         Because online traffic accounts for 25% of all sales,
                                                         O2 needed to build faster and smarter online portal

                 Real Results
                    Better coordination of all involved people in marketing processes
                    Highly adjustable reporting engine to report information in a multitude of ways
                    Can now monitor each user interaction with the portal, and assign a value to the
                    marketing program that brings the visitor to the site
                    Better and faster targeting in addition to the Next Best Offer Engine, all to improve
                    online interactions
                                                                                                        © 2011 IBM Corporation
Bringing Science to the Art of Marketing



  From “batch” to real-time marketing
                                     Integrated web behavior, email, and rewards history for
                                     more effective communications and business results

                                                           Business Need
                                                             Customers behaved in real time; IHG marketing
                                                             focused on batch processing
                                                             Customers expected a dynamic, relevant, multi-
                                                             channel approach
                                                             Large scale operations needed to support millions
                                                             of customer interactions each day


                Real Results
                   250% increase in clicks per day
                   Revenue per impression rose from $0.18 per to $0.77 (400% increase)
                   Moved oversight of transactional email from IT to Marketing
                   One comprehensive marketing platform with integrated email and transactional data
                   Full tracking and reporting with better deliverability, and centralized business
                   ownership

                                                                                                      © 2011 IBM Corporation
Bringing Science to the Art of Marketing


  Delivering personalized offers across channels in real time
                                     turns inbound interactions into profitable communications


                                                        Business Need
                                                          Outbound campaigns were ineffective – not taking
                                                          advantage of customer initiated interactions
                                                          Needed to create a single, cross-channel,
                                                          relationship with each customer
                                                          Disparate teams managed customer dialogs
                                                          Needed to reduce marketing costs



              Real Results
                Relevant, real-time campaigns drive higher response rates
              − 85M targeted offers served each day across 5 channels – direct mail,
                email, web, call center, and branches
              − €20M increase in earnings expected
                Lowered direct marketing cost 35%
                Faster campaign cycle times: from 26 weeks per campaign to just 4 weeks

                                                                                             © 2011 IBM Corporation

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IBM Enterprise Marketing Management

  • 1. Francesco Meloni IBM Enterprise Marketing Management 09/05/2011 IBM Confidential © 2011 IBM Corporation
  • 2. Bringing Science to the Art of Marketing IBM Enterprise Marketing Management Our EMM Offerings IBM’s Enterprise Marketing Management solutions offer proven web and customer analytics, event detection, cross-channel campaign management, interaction management, online ad/search optimization, email marketing, and marketing resource management. Customer and Partner Success Product Leadership Over 2,500 organizations worldwide Meeting the needs of: Tens of thousands of total users – Cross-channel marketers – Online marketers Extensive service offerings – Marketing services >200 partners Two deployment models: – On Premises – SaaS The recognized leader in marketing software solutions Our Mission To power the success of every marketing organization with innovative technology solutions 2 2 © 2011 IBM Corporation
  • 3. Bringing Science to the Art of Marketing More than 2500 Organizations Worldwide Depend on IBM’s EMM Solutions Travel / Healthcare & Financial Telecom Retail / Catalog B2B / High Tech Hospitality Insurance 3 © 2011 IBM Corporation
  • 4. Bringing Science to the Art of Marketing Marketing’s Evolving Role Awareness Demand Generation Consideration, Preference, Transact Prospects Customer Customer Engagement Customers Experience Energized, Delighted, Quality, Fans, Broadcasters Consistency, Convenience 4 © 2011 IBM Corporation
  • 5. Bringing Science to the Art of Marketing New marketing must… Engage each customer and prospect in a cross-channel dialogue that builds upon their past and current behavior IBM’s Enterprise Marketing Management Capability Framework 5 © 2011 IBM Corporation
  • 6. Bringing Science to the Art of Marketing IBM’s Enterprise Marketing Management Comprehensive suite of marketing management capabilities Awareness Decisioning Execution Web and Digital Segmentation eMail Analytics Offer Inbound Event Management Integration Detection Interaction Distributed History Marketing Predictive Real-time and Lead Routing Analytics Behavioral Targeting and Monitoring Visual Contact Online Ad/Search Exploration Optimization Bid Management Integrated Marketing Operations Facilitates collaboration and cross-channel planning,& Plans & Facilitates collaboration andData & People & Measurement cross-channel design, execution, and measurement Budgets design, execution, and measurement. planning, Processes Assets Performance 6 © 2011 IBM Corporation
  • 7. Bringing Science to the Art of Marketing EMM Enterprise: A Comprehensive Marketing Suite Awareness Decisioning Execution Behavior Detailed Daily Detection Segmentation and Offer Management Distributed Transactions Marketing Behavior Patterns Detected Lead Online Ad Management WebServer Customer/ Web eMail Management Analytics Contact Optimization Predictive Modeling Best Offers Call POS Web Center Cust. On-Line Real-time Behavior Context Targeting Contact and Identified Customer Data Sources Likely Targets Customer Behavior Warehouse Response History Integrated Marketing Operations Financial F/C People & Process Planning Management 7 © 2011 IBM Corporation
  • 8. Bringing Science to the Art of Marketing Unica Campaign CAMPAIGN MANAGEMENT software: Used to plan, design, execute, measure and analyze personalized marketing campaigns Capable of managing all types of large-scale, multi-wave and cross-channel campaigns Creates a “marketing system of record” for offers, segments and interaction history Recognized best-of-breed functionality, scalability and record of customer success Serves as integration hub for add-on modules: – Email marketing – Contact optimization – Real-time interactions – Distributed marketing 8 8 © 2011 IBM Corporation
  • 9. Bringing Science to the Art of Marketing Unica Optimize CONTACT OPTIMIZATION software: Determines the optimal contact strategy for each customer Uses powerful, integrated algorithms Balances business objectives and constraints with customer preferences and history Achieves maximum overall marketing ROI while satisfying the need of individual product lines and businesses 9 © 2011 IBM Corporation 9
  • 10. Bringing Science to the Art of Marketing Unica Detect Is Detect? What EVENT- EVENT-BASED MARKETING software: – Monitors customers’ granular transaction data and identifies meaningful behavioral changes – Alerts lead management or campaign management systems – Can work with overwhelmingly large volumes of data without requiring heavy additional IT investment – Comes with a library of trigger definitions and tools to define and build new triggers 10 © 2011 IBM Corporation
  • 11. Bringing Science to the Art of Marketing Unica Marketing Operations MARKETING OPERATIONS software: – Captures marketing plans plans, programs, campaigns, and jobs – Manages financials resources, financials, and performance metrics – Streamlines marketing processes using best practice templates. – Provides insight through reporting and calendaring 11 11 © 2011 IBM Corporation
  • 12. Bringing Science to the Art of Marketing Unica Interact REAL- REAL-TIME MARKETING software: Presents personalized messages in real-time during inbound interactions Personalization based on: – Existing customer data and new information gained during the interaction – Or, behavioral targeting of anonymous visitors Designed for easy deployment and management (“so easy a marketer can do it”) Meets the most rigorous performance requirements. Up to: – 1,000s of transactions per second – Half-second average response time 12 © 2011 IBM Corporation 12
  • 13. Bringing Science to the Art of Marketing Unica eMessage Unica eMessage is an on premise email marketing solution that seamlessly leverages Unica’s OnDemand infrastructure to provide managed email delivery and deliverability services Faster: fully integrated email solution requiring fewer steps and less manual data movement Easier: less integration work and a single vendor relationship Cheaper: no need to pay premium prices or manage internal infrastructure to get email delivered 13 © 2011 IBM Corporation
  • 14. Bringing Science to the Art of Marketing Interactive Marketing Framework 2 Offline Online Remarketing/ Customer Event-Base Presence Data Campaigns Transactions Event Centralized detection Decisioning 1 Close-loop Search Eng. email Referrals 3 Community PPC Web On-site Behavior 3 Ad Serving Mart behavioral targeting Affiliate Reporting: Improve web experience Email 4 Understand customer behaviors Increase campaign effectiveness Other Promo 14 © 2011 IBM Corporation
  • 15. Bringing Science to the Art of Marketing IBM Enterprise Marketing Management Mission To power the success of every marketing organization with innovative technology solutions 15 © 2011 IBM Corporation
  • 16. Bringing Science to the Art of Marketing Increasing purchases with a focus on customer loyalty automates marketing to increase relevance of messaging, retain customers, and increase basket size and profits Business Need Shift from customer acquisition to building loyalty with Reward Zone program Evolve marketing spend from mass to more personalized Campaigns based on timing, trends, and triggers Real Results 17% increase in operating profit More Effective Campaigns = More, Bigger, Better Baskets − 10% increase in trips to store − 20% increase in shopping basket size − 20% increase in margin Process Improvements − 82% reduction in cycle time, 3x improvement in efficiency © 2011 IBM Corporation
  • 17. Bringing Science to the Art of Marketing Highly targeted email and direct mail executed by marketers allows marketers to easily create and deliver personalized emails based on segment and web analytics Business Need Provide marketers with the ability to build their own campaigns using both offline and web data Support new channels: email, web, social in a coordinated fashion Replace outdated systems to accommodate multichannel business and large email volumes Real Results Increased the number of email and direct mail campaigns delivered—without increasing headcount − Expanded personalized email marketing to “primary channel” Reduced email costs by 40% compared with previous solution All marketing managers can create and execute campaigns Led to record profits in two consecutive years © 2011 IBM Corporation
  • 18. Bringing Science to the Art of Marketing Choosing the best offer for customers and profits optimizes offers across in-store kiosks, email, statements, and in-store events to increase revenue and profits Business Need Managing complex, massive loyalty program that includes 82% of the UK’s female population Improving cross channel execution - website, email, kiosk, direct mail Delivering relevant offers to customers that are profitable for Boots and its product suppliers Real Results Highly optimized offers for customers in loyalty program Offers in statements led to double digit increase in incremental sales , coupon response rates and profits In store events led to year over year increase in sales and net profit Test and learn program - ROI achieved in months © 2011 IBM Corporation
  • 19. Bringing Science to the Art of Marketing Driving smarter marketing with integrated execution coordinates marketing across departments leading to generate fewer more effective campaigns Business Need To coordinate people involved with marketing operations Report information in many ways in order to know the impact one marketing program has on the others. Quantify results Because online traffic accounts for 25% of all sales, O2 needed to build faster and smarter online portal Real Results Better coordination of all involved people in marketing processes Highly adjustable reporting engine to report information in a multitude of ways Can now monitor each user interaction with the portal, and assign a value to the marketing program that brings the visitor to the site Better and faster targeting in addition to the Next Best Offer Engine, all to improve online interactions © 2011 IBM Corporation
  • 20. Bringing Science to the Art of Marketing From “batch” to real-time marketing Integrated web behavior, email, and rewards history for more effective communications and business results Business Need Customers behaved in real time; IHG marketing focused on batch processing Customers expected a dynamic, relevant, multi- channel approach Large scale operations needed to support millions of customer interactions each day Real Results 250% increase in clicks per day Revenue per impression rose from $0.18 per to $0.77 (400% increase) Moved oversight of transactional email from IT to Marketing One comprehensive marketing platform with integrated email and transactional data Full tracking and reporting with better deliverability, and centralized business ownership © 2011 IBM Corporation
  • 21. Bringing Science to the Art of Marketing Delivering personalized offers across channels in real time turns inbound interactions into profitable communications Business Need Outbound campaigns were ineffective – not taking advantage of customer initiated interactions Needed to create a single, cross-channel, relationship with each customer Disparate teams managed customer dialogs Needed to reduce marketing costs Real Results Relevant, real-time campaigns drive higher response rates − 85M targeted offers served each day across 5 channels – direct mail, email, web, call center, and branches − €20M increase in earnings expected Lowered direct marketing cost 35% Faster campaign cycle times: from 26 weeks per campaign to just 4 weeks © 2011 IBM Corporation