1. 9/30/2011
a
The Dollars & Sense of Cross
Channel Marketing and
Message Convergence
DMA 2011, Ask the Expert Round Table
We’ve become a wired, multi-tasking society
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2. 9/30/2011
Technology is changing our
communication patterns and behaviors
Freedom of choice is driving our
instant gratification and heightened expectations
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We’ve become a ‘Short Burst Society’ *
Everyone is always ‘on.’ Everything is shorter, faster, happening now.
Attention deficit is pervasive, chronic.
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* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
We’ve become a ‘Short Burst Society’ *
Everyone is always ‘on.’ Everything is shorter, faster, happening now.
Attention deficit is pervasive, chronic.
 50% of us skip commercials.
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* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
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3. 9/30/2011
We’ve become a ‘Short Burst Society’ *
Everyone is always ‘on.’ Everything is shorter, faster, happening now.
Attention deficit is pervasive, chronic.
 50% of us skip commercials.
 550 million have Facebook profiles. Over half apply
updates every day.
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* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
We’ve become a ‘Short Burst Society’ *
Everyone is always ‘on.’ Everything is shorter, faster, happening now.
Attention deficit is pervasive, chronic.
 50% of us skip commercials.
 550 million have Facebook profiles. Over half apply
updates every day.
 200 million use Twitter with 300,000 new sign-ups
each day. We send 95 million tweets each day.
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* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
We’ve become a ‘Short Burst Society’ *
Everyone is always ‘on.’ Everything is shorter, faster, happening now.
Attention deficit is pervasive, chronic.
 50% of us skip commercials.
 550 million have Facebook profiles. Over half apply
updates every day.
 200 million use Twitter with 300,000 new sign-ups
each day. We send 95 million tweets each day.
 72% of U.S. consumers have SMS plans, 203
million. Text messaging is up 400% in past 4 years
with trillions sent each year.
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* Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
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4. 9/30/2011
Where is digital messaging headed?
Individualized - one-to-one communications where relevant,
preference-driven messaging is the norm and customer expectation.
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Where is digital messaging headed?
Individualized - one-to-one communications where relevant,
preference-driven messaging is the norm and customer expectation.
Real time – in the moment communications where the message and
response, action and reaction occur right now.
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Where is digital messaging headed?
Individualized - one-to-one communications where relevant,
preference-driven messaging is the norm and customer expectation.
Real time – in the moment communications where the message and
response, action and reaction occur right now.
Interactive – two-way communications where active dialogue (not
passive monologue) is the key to engagement; where it’s more about
the conversation than the initial message.
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4

5. 9/30/2011
Where is digital messaging headed?
Individualized - one-to-one communications where relevant,
preference-driven messaging is the norm and customer expectation.
Real time – in the moment communications where the message and
response, action and reaction occur right now.
Interactive – two-way communications where active dialogue (not
passive monologue) is the key to engagement; where it’s more about
the conversation than the initial message.
Multi-channel – cross-channel communications where customers use
multiple channels and fluidly move between them; where channel
choice, brand consistency and coordinated messaging truly matter.
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Where is digital messaging headed?
Individualized - one-to-one communications where relevant,
preference-driven messaging is the norm and customer expectation.
Real time – in the moment communications where the message and
response, action and reaction occur right now.
Interactive – two-way communications where active dialogue (not
passive monologue) is the key to engagement; where it’s more about
the conversation than the initial message.
Multi-channel – cross-channel communications where customers use
multiple channels and fluidly move between them; where channel
choice, brand consistency and coordinated messaging truly matter.
Converged – melded communications where message types blur
(marketing, service); where channels become incidental as
interactions that begin in one channel are consummated in another.
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Where is digital messaging headed?
HUGE CHANGE
Customer
Behaviors &
Expectations
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6. 9/30/2011
Now add-in customer control
Converged Converged
Device Inbox
Brand A
IM
Customer cross-channel control of messages and messengers –
where some brands get access and some don’t. Access is earned.
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Now add-in customer control
Converged Converged
Device Inbox
Brand A
IM
Brand B IM
Customer cross-channel control of messages and messengers –
where some brands get access and some don’t. Access is earned.
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So what will the future look like?
Right message. Right channel. Right now.
 Highly individualized, two-way conversations occurring in the moment.
 Customers moving fluidly between channels; interactions initiated in
one channel being consummated in another.
 Customers controlling both the messages they get and messengers
they choose to hear from.
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7. 9/30/2011
What should brands expect?
Customer Customer
Behavior & Ownership &
Expectation Control
Changes Changes
 Either trend would cause serious business disruption happening solo.
 Happening together will magnify the disruption, and pose unusually
big opportunities for some brands; big risks for others.
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Why the BIG opportunities and risks?
Today’s Reality:
Message Confusion
 Messaging siloed by channels and/or
company business units
 Messaging conducted by disjointed
point solutions
 Gap between customer messaging
preferences and company capabilities
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Why the BIG opportunities and risks?
Today’s Reality:
Message Confusion
 Messaging siloed by channels and/or
company business units
 Messaging conducted by disjointed
point solutions
 Gap between customer messaging Tomorrow’s Requirement:
preferences and company capabilities Message Convergence
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8. 9/30/2011
What are the implications?
 Serious disruption to current business models:
╸ Changes to marketing and sales cycles, such as real time data
management and message decision making, and managing of message
flows vs. channels
╸ Consolidation and revamping of communication and business processes
╸ Implementation of new customer care standards so all touch points count
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What are the implications?
 Serious disruption to current business models:
╸ Changes to marketing and sales cycles, such as real time data
management and message decision making, and managing of message
flows vs. channels
╸ Consolidation and revamping of communication and business processes
╸ Implementation of new customer care standards so all touch points count
 Reorder of market leader rankings; some brands will thrive as others
struggle to survive
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What are the implications?
 Serious disruption to current business models:
╸ Changes to marketing and sales cycles, such as real time data
management and message decision making, and managing of message
flows vs. channels
╸ Consolidation and revamping of communication and business processes
╸ Implementation of new customer care standards so all touch points count
 Reorder of market leader rankings; some brands will thrive as others
struggle to survive
 Mad scramble to invest in right-minded people, solutions and
especially enabling technologies
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9. 9/30/2011
What are the implications?
 Serious disruption to current business models:
╸ Changes to marketing and sales cycles, such as real time data
management and message decision making, and managing of message
flows vs. channels
╸ Consolidation and revamping of communication and business processes
╸ Implementation of new customer care standards so all touch points count
 Reorder of market leader rankings; some brands will thrive as others
struggle to survive
 Mad scramble to invest in right-minded people, solutions and
especially enabling technologies
 BIG risks in loss of vital customer connections for communication
and commerce for brands that don’t respond or respond wrongly
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What are the implications?
 Serious disruption to current business models:
╸ Changes to marketing and sales cycles, such as real time data
management and message decision making, and managing of message
flows vs. channels
╸ Consolidation and revamping of communication and business processes
╸ Implementation of new customer care standards so all touch points count
 Reorder of market leader rankings; some brands will thrive as others
struggle to survive
 Mad scramble to invest in right-minded people, solutions and
especially enabling technologies
 BIG risks in loss of vital customer connections for communication
and commerce for brands that don’t respond or respond wrongly
 BIG rewards for brands that get it right
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What does ‘getting it right’ mean?
Customer Customer
Behavior & Ownership &
Expectation Control
Changes Changes
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10. 9/30/2011
What is Message Convergence?
 Message Convergence is a customer engagement strategy for the
new communications norm where brands …
╴ Know their customers’ preferences, needs and wants
╴ Act on what they know to actually coordinate their messaging
╴ So meaningful content is delivered at the right time
╴ And in the channel that’s most contextually relevant
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What is Message Convergence?
 Message Convergence is a customer engagement strategy for the
new communications norm where brands …
╴ Know their customers’ preferences, needs and wants
╴ Act on what they know to actually coordinate their messaging
╴ So meaningful content is delivered at the right time
╴ And in the channel that’s most contextually relevant
 Message Convergence is about customer-adaptive messaging.
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What is Message Convergence?
 Message Convergence is a customer engagement strategy for the
new communications norm where brands …
╴ Know their customers’ preferences, needs and wants
╴ Act on what they know to actually coordinate their messaging
╴ So meaningful content is delivered at the right time
╴ And in the channel that’s most contextually relevant
 Message Convergence is about customer-adaptive messaging.
 Message Convergence is about staying connected with customers
across multiple channels – channels now controlled by customers
where access is a privilege extended to brands who earn it.
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11. 9/30/2011
What is Message Convergence?
 Message Convergence is a customer engagement strategy for the
new communications norm where brands …
╴ Know their customers’ preferences, needs and wants
╴ Act on what they know to actually coordinate their messaging
╴ So meaningful content is delivered at the right time
╴ And in the channel that’s most contextually relevant
 Message Convergence is about customer-adaptive messaging.
 Message Convergence is about staying connected with customers
across multiple channels – channels now controlled by customers
where access is a privilege extended to brands who earn it.
 Message Convergence is about capitalizing on the opportunities –
winning – and avoiding the risks.
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Where to start?
1. Start with technology; close your capabilities gap. Find a
messaging technology solution to mimic customer behavior in your
communications, stay connected with them, and follow their
conversations across channels.
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Where to start?
1. Start with technology; close your capabilities gap. Find a
messaging technology solution to mimic customer behavior in your
communications, stay connected with them, and follow their
conversations across channels.
Why technology?
╴ Changes in customer behaviors/expectations driven by technology;
solution rooted in technology too
╴ Message Convergence is a technology-enabled customer engagement
strategy; without it you get no where
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12. 9/30/2011
Where to start?
1. Start with technology; close your capabilities gap. Find a
messaging technology solution to mimic customer behavior in your
communications, stay connected with them, and follow their
conversations across channels.
Why technology?
╴ Changes in customer behaviors/expectations driven by technology;
solution rooted in technology too
╴ Message Convergence is a technology-enabled customer engagement
strategy; without it you get no where
2. Get your email under control. First place to apply new messaging
technology in consolidating and coordinating email.
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Where to start?
1. Start with technology; close your capabilities gap. Find a
messaging technology solution to mimic customer behavior in your
communications, stay connected with them, and follow their
conversations across channels.
Why technology?
╴ Changes in customer behaviors/expectations driven by technology;
solution rooted in technology too
╴ Message Convergence is a technology-enabled customer engagement
strategy; without it you get no where
2. Get your email under control. First place to apply new messaging
technology in consolidating and coordinating email.
Why email?
– Widest deployed form of digital messaging; easily understood
– Biggest positive impact on customer experience and bottom line
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What to look for in your technology solution?
1. Single solution. Find a single platform solution specifically built for
the ‘new norm’ – not cobbled together, channel-specific point
solutions – for coordinated, cross-channel messaging. It should:
– Serve as central integration layer for all digital messaging in enterprise
– Connect with different data sources, applications, systems and business
processes across enterprise – horizontal integration
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13. 9/30/2011
What to look for in technology solutions?
2. Capable solution. Find a technologically advanced solution that’s
capable of meeting future messaging needs – individualized, real
time, interactive, multi channel, converged. It should be:
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What to look for in technology solutions?
2. Capable solution. Find a technologically advanced solution that’s
capable of meeting future messaging needs – individualized, real
time, interactive, multi channel, converged. It should be:
╴ Powerful and reliable – support business-critical communications; scalable
to success
╴ Interoperable, inherently open – extensible framework; always keep
partner options open
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What to look for in technology solutions?
2. Capable solution. Find a technologically advanced solution that’s
capable of meeting future messaging needs – individualized, real
time, interactive, multi channel, converged. It should be:
╴ Powerful and reliable – support business-critical communications; scalable
to success
╴ Interoperable, inherently open – extensible framework; always keep
partner options open
╴ Agile and future proof – infinitely flexible, responsive; rules-based policy
engine
╴ Visibility on demand – know what’s happening; convert knowledge into
marketplace advantage
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14. 9/30/2011
What to look for in technology solutions?
2. Capable solution. Find a technologically advanced solution that’s
capable of meeting future messaging needs – individualized, real
time, interactive, multi channel, converged. It should be:
╴ Powerful and reliable – support business-critical communications; scalable
to success
╴ Interoperable, inherently open – extensible framework; always keep
partner options open
╴ Agile and future proof – infinitely flexible, responsive; rules-based policy
engine
╴ Visibility on demand – know what’s happening; convert knowledge into
marketplace advantage
╴ Configurable and usable – no one size fits all; customize to unique needs;
capability is more critical than interface
╴ Safe and secure – ensure customer confidence; protect and grow brand
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What to look for in technology solutions?
3. Total business solution. Find a solution that can deliver Message
Convergence tactically in your daily operations first, then refine and
roll-up to realize higher order business vision and value. Solutions
that don’t tie directly to the business processes are of limited use.
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Message Convergence drives
greater effectiveness and efficiency
Email
Marketing
Search Social
Marketing Marketing
Data & Content
Mobile
Management
Marketing Content & Production
Integration Analytics
& Process Reporting
Management Attribution
Relevant
Subscriber
Segments &
Testing
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Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
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15. 9/30/2011
Message Convergence drives
greater effectiveness and efficiency
Technology Management
Email
Marketing
Search Social
Marketing is Marketing Marketing
integrated across
channels to deliver
relevant,
contextually Data & Content
Mobile
Management
Marketing Content
correct content & Production
consistent with
customer needs
and circumstances. Integration Analytics
Integration is key. & Process Reporting
Management Attribution
Relevant
Subscriber
Segments &
Testing
43
Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
Message Convergence drives
greater effectiveness and efficiency
Technology Management People Management
Email
Marketing
Search Social
Marketing is Marketing Marketing Process and people
integrated across coordination.
channels to deliver Marketing is driven
relevant, by a coordinated
contextually Data & Content customer centric
Mobile
Management
Marketing Content
correct content & Production organization where
consistent with business success is
customer needs measured by the
and circumstances. Integration Analytics
value of customer
Integration is key. & Process Reporting experience.
Management Attribution
Relevant
Subscriber
Segments &
Testing
44
Copyright © 2011 The Relevancy Group, LLC All Rights Reserved
But most companies are organized in silos
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16. 9/30/2011
Marketers in silos don’t connect across the enterprise
Few Organizations Connect Customer Centric Practices, Data, Measurement Across Silos
B2B B2C B2O
Customers & Customers & Press and Others
Prospects Prospects Corporate/Brand
Field Marketing Loyalty Marketing Marketing
Sales Management Product Marketing Investor Relations
Marketing Silos, Lack of Connected Marketing, see www.CMF4.com For The Connected Marketing Framework
Source: The Relevancy Group, LLC
46
Few organizations practice ‘connected marketing’
creating a disjointed, chaotic competitive culture
Marketing Organization Operational Culture
Our marketing department shares common goals 51%
There is central ownership of marketing across all
channels 33% Marketer
roles are
We manage contact frequency across all channels 29% segregated.
Our marketing programs are tightly coordinated The majority
across all marketing channels 28% lack sharing
Use attribution to ensure that offline response is a universal
attributed back to the correct channel 16%
connection
The marketing team is rewarded with common of process
personal incentives 14%
and goals.
None of the above 7%
0% 20% 40% 60% 80% 100%
Question Asked: Please select the statement or statements that best represent how your
marketing organization operates? (select all)
Source: The Relevancy Group Executive Survey, n=368 5/11, United States Only 47
Role segregation and lack of connected marketing
produces disjointed/incomplete view of customer
2. Customer waits
1. Customer hides from new undiscovered for
social marketer role to take another role based
action, only a sliver of the marketer to take
customer can be seen action, only a partial
picture is formed
3. The full picture of the customer is
discovered when Connected Marketing is
embraced across the marketing enterprise
Customer Connected Marketing, when driven by coordinated connected marketing roles versus disparate marketing
roles that serve only channels, see www.CMF4.com For The Connected Marketing Framework
Source: The Relevancy Group, LLC
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17. 9/30/2011
Centralizing for complete customer view remains elusive
Systems & Data Integrated into Central Marketing Database
Currently integrated Plan w/in 12 months No plans to integrate
21% 17% 15%
24% 26% 26% 23%
35% 38% 30%
20%
27% 19%
33% 26% 20% 22%
36%
20%
36%
58% 65%
51% 57%
42% 46% 48% 49%
40%
29%
Question Asked: For each of the following systems and data sources, please indicate your plans for integrating to them into a
centralized database for use in marketing efforts? (select one for each)
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Source: The Relevancy Group Executive Survey, n=368 5/11, US Only
Email as most widely deployed channel awaits
convergence with other channels
Marketing Channels Deployed
Email Marketing 77%
Print Direct Marketing 69%
Social Marketing 65%
Online Display Ads 63%
Field or Event Marketing 56%
Paid Search Marketing 50%
Online Video, e.g. YouTube 44%
Location Based Marketing 42%
Loyalty Programs 42%
Mobile Marketing 38%
Digital Mobile Apps (iPad, etc.) 33%
Catalogs 24%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Question Asked: Which marketing channels do you actively market in? (select all)
Source: The Relevancy Group Executive Survey, n=368 5/11, United States Only
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What does a converged capability look like?
Today:
Message Confusion
 Convergence is about consolidating
and integrating data, systems and
business processes on single platform
 It’s not about insource/outsource – can
still point to ESP or other cloud provider
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17

18. 9/30/2011
What does a converged capability look like?
Today: Tomorrow:
Message Confusion Message Convergence
 Convergence is about consolidating
and integrating data, systems and
business processes on single platform
 It’s not about insource/outsource – can
still point to ESP or other cloud provider
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Message Convergence drastically reduces total cost
of ownership
Single platform solution that
supports Message Convergence
improves effectiveness and
creates efficiencies:
 Optimize Opportunity Costs
 Reduce Labor and Admin
Costs
 Decrease Power Consumption
 Lower Mobile Message Costs
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In simplest example, savings increase through
Message Convergence
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19. 9/30/2011
Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
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Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
 An individual who can bridge several worlds — IT, Marketing and
Customer Care
56
Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
 An individual who can bridge several worlds — IT, Marketing and
Customer Care
 They must represent the customer experience as the end user
sees and defines it
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20. 9/30/2011
Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
 An individual who can bridge several worlds — IT, Marketing and
Customer Care
 They must represent the customer experience as the end user
sees and defines it
 Champion should be CMO or come from/report to CMO’s office
58
Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
 An individual who can bridge several worlds — IT, Marketing and
Customer Care
 They must represent the customer experience as the end user
sees and defines it
 Champion should be CMO or come from/report to CMO’s office
 Act as liaison across all of the individual corporate silos in
documenting their needs and integrating them into an overall
action plan
59
Designate a Champion to realize the value of
Message Convergence
 Appoint a champion to drive Convergence initiative forward
 An individual who can bridge several worlds — IT, Marketing and
Customer Care
 They must represent the customer experience as the end user
sees and defines it
 Champion should be CMO or come from/report to CMO’s office
 Act as liaison across all of the individual corporate silos in
documenting their needs and integrating them into an overall
action plan
 Tasked with seeking out the proper technology infrastructure to
facilitate Message Convergence, and in doing so illustrate the
cost and effectiveness benefits
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21. 9/30/2011
Convergence whitepapers with prescriptive advice
Messagesystems.com/prepare4convergence
Messagesystems.com/DollarsAndSense
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Questions
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