Data is the New Black: Using Customer Insight to drive a superior return on marketing

1. Data…the New Black
Tim Suther
SVP, Multichannel Marketing Services
Tim.Suther@acxiom.com
001-630-944-0416
www.acxiom.com

2. Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
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3. :60 spots to reach 80% of 18‐49 year olds
3 117
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4. Was Called QUARTERBACK before the recession
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5. Data is the new black
• Learn from every interaction
• Interactions are interrelated…
Connect the dots
• Expand your field of vision
• Have an optimization mindset
The nerds of marketing are now cool
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6. The differentiated value of customers
30% of customers deliver the majority of profits
50% Add nothing
20% Cost companies money
SAS
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7. Like a box of chocolates…
• With most media, you never
know who you’re gonna get.
• Knowing who determines:
– How much to invest…if anything
– What to say…without guessing
• Media buys are rarely linked to
full customer value.
• The typical marketing problem:
– Over-investment in low value
relationships
– Under-investment in high value
relationships
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8. The Concentration Multiplier
Concentrating on the most valuable “who’s”
1. Identify customer value
2. Invest proportionally
3. Find/recognize & engage
accordingly
4. Measure acquired value
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9. A look at “who” at world class brands
Cadillac American Express
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Hershey Allstate
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
9 Source: Acxiom comScore (July 2009)

10. …and at leading publishers
MSN Yahoo
96 MM UV’s 148 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
eBay AOL
56 MM UV’s 70 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
10 Source: Acxiom comScore (July 2009)

11. Mismatches in “who” create friction & waste
Vast differences in publisher & advertiser indices
Advertising NPS: - 21%
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12. Concentrate ad spend to drive value
Typical payoff of 3-5x revenue/ad dollar
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13. Make Behavioral and Attitudinal Insights Addressable to drive the
effectiveness of targeting at individual level
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14. Concentrator Multiplier ROI illustration
Concentration Traditional Variance
Campaign Cost
Impression Volume 10,000,000 10,000,000
Cost per Thousand $ 5.00 $ 2.50
Total Campaign Cost $ 50,000 $ 25,000 $ (25,000)
Revenue Generated
Revenue/conversion $ 20 $ 10
Clickthrough Rate 0.15% 0.10%
Latent/viewthrough revenue 50% 50%
Revenue from clickthrough $ 300,000 $ 100,000
Total Revenue $ 450,000 $ 150,000 $ 300,000
Contribution
From clickthrough $ 250,000 $ 75,000
Total Contribution $ 400,000 $ 125,000 $ 275,000
Revenue per Ad Dollar
From clickthrough $ 6.00 $ 4.00
Total Revenue/Ad Dollar $ 9.00 $ 6.00
Premise
Concentrating impressions on high value visitors…
>Enables higher financial return (because of focus on more valuable visitors)
>Enables higher CTRs (because creative can be versioned)
Even if visitors don't click, advertisers will generate significant online/offline lift (halo/viewthrough effect) 14

15. Metrics matter
• Advertisers over weight acquisition metrics
– CPM, CPA, GRP, CTR, etc.
– This creates “leaky buckets,” “zombies,” and the “quiet types”
• Advertisers under weight “acquired value” metrics
– Likely longevity of relationship
– Likely upsell/cross-sell potential
– Likely influence
– Likely service costs
• Advertisers should measure customer value per ad dollar
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16. Remember every interaction…and learn.
• No institutional memory?
– Funny in movies
– Unprofitable to you
• Seek to understand & predict
– Explicit & inferred preferences
– Wants & needs
– Motivations & attitudes
– Social influence circle
– Cross-channel behavior
– “Outside” behavior
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17. Data…the building block of insight
Most Predictive
Power Enables Answers to
Ratio Key Questions:
In
Proprietary online and offline shopping data & transaction information, as
Proprietary online and offline shopping data & transaction information, as
Market well as, individual consumer triggers such as life events When
Known Purchase Behaviors – book travel online, high tech products, online
Known Purchase Behaviors –
268:1 How
Buying Activity power user, auto – make/year/model, fashion apparel, channel preference
power user, auto –
196:1 Propensities Likelihood to make a purchase, attitudes, preferences and patterns
Likelihood to make a purchase, attitudes, preferences and patterns
Describe/Predict
What
55:1 Self‐reported hobbies, interests and activities
Self‐
Lifestyles
Home ownership, length of residence, home value, purchase
Property Data amount and date, likely equity
Household life‐stage segmentation, socio‐economic, and
Household life‐stage segmentation, socio‐
7:1 Personicx™ Segmentation household characteristics Who
Age, income, marital status, children, education, net
Baseline Demographic and Socio‐economic Data worth, occupation, etc.
Current contact information for over 131 million
Name, postal address, email and phone households comprised of 199 million individuals Where
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18. The value of connecting the dots
Live examples from Acxiom portfolio
4x “orders per thousand” $200M revenue / $4.5M
– Connecting print & digital OpEx savings
3x applications; 5x online – Connecting call center & digital
revenue; same head count $100M/yr EBIT impact
– Connecting call center & digital – Multichannel connection
2x online bookings 9-figure/yr revenue impact
– Connecting outbound & website – Multichannel connection
7.5x website spend
– Connecting mobile & email
17x response
– Connecting TV & offline
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19. 10 Easy Money ideas
The Idea How & Why The Benefit
Test Collaborative Targeting & Relevance Concentrate ad impressions on visitors 3-5X revenue / ad dollar at other clients
with Internet properties. Then follow up most likely to be valuable, loyal, etc. Existing customers respond 17X to
with television prospects to digital TV ads
Recognize & connect with social Use existing email addresses to Match against 500M socially active
influencers recognize socially active customers & individuals (~60-70% of any email list)
prospects
Test mobile as a lifecycle messaging tool Avg. mobile purchaser has higher income Integrated with Impact. Likely halo effect
& spends 2X as a Web-only buyer
Examine call center patterns to identify Identify high-volume drivers of calls – $2M / year cost displacement & $200M /
content for future emails requests for info, small cross sales, etc. yr influenced revenue at another client
Connect Web analytics with outbound Following the digital footprints to 2X website conversions achieved at
messaging recalibrate outbound marketing another client
If chat available on their site, offer to send Email a branded transcript back to site This is the highest performing email
a branded transcript of the chat visitors. Include buttons to “buy” or to application at another client
“subscribe” to other services
Do an organic search audit Identify opportunities to improve organic 72% of GOOG CTR is organic. A proper
visibility, & possibly reduce paid expense audit enables more free traffic
If receiving third-party leads, implement Build / implement predictive models to The bottom three deciles can likely be
lead scoring screen out low value leads provided eliminated without impacting conversions
Consider a test with ACXM CoReg
services and / or e-list rental
Improve the site experience Test content with Impact Site. Personalized site experiences drive
Implement View tags to measure 4–15X ROI
conversion funnel progress by lifestage
Retarget site visitors that do not convert 53% of shopping carts abandon. Remarketing generates $4–10 revenue
Remarket based on specific site per ad dollar at other clients
behavior / lifestage

20. That was easy…
• Identify customer value
• Invest proportionally
• Find/recognize & engage
accordingly
• Measure acquired value
• Institutional memory
• Take the Easy Money
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21. Thank you. Questions?
The global interactive marketing services company
www.acxiom.com
Would like all our links here
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