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UNLOCKING VALUE:
MARKETING STRATEGY IN A CONNECTED WORLD




TIM SUTHER
CHIEF MARKETING OFFICER, ACXIOM


JOHN BANCROFT
VP, E-COMMERCE & RETAIL MARKETING, WWE



FORRESTER MARKETING FORUM APRIL 2011




                                          ®
THE END IS NEAR…
For marketing as we knew it



Consumers are boss

One night stands ≠ committed relationships

Yelling louder ≠ customer engagement

Media mix reflects yesterday’s consumption

Unsure (or negative) ROI




                                             2
TOPICS

1. What capabilities distinguish high performance marketing
   organizations? What is the upside opportunity?

2. How do high performing marketers prioritize in a world of
   overwhelming choice?

3. How do I determine where I stand in relation to high
   performing marketers?

4. Undertaking the opportunity…WWE style

5. Discussion / Q&A
GLOBAL MARKETING SERVICES &
TECHNOLOGY FIRM
Focused on audience and customer engagement

INDUSTRY RECOGNITION
#1 in client satisfaction – Data Monitor
#3 Business Services & Consulting – Information Week 500 Innovators
#2 CRM agency worldwide – AdAge
Largest marketing service provider – Forrester Research

QUICK FACTS
8,800 clients in 40 countries
300,000 campaigns/year
24 trillion consumer interactions/year
$1.2 billion revenues. 70% under long-term contract
NASDAQ – ACXM
WHAT CAPABILITIES DISTINGUISH
HIGH PERFOMANCE MARKETING?




 15-30% improvement opportunity for most companies
                                                     5
HOW DO I PRIORITIZE IN A WORLD
    OF UNLIMITED CHOICE?

        Maximize value from existing customers
                                   g



             Engage with customers “there”
             Engage with customers “there”



    Improve “intent harvest” from prospective buyers



          Generate demand more insightfully


     Substitute media & channel based upon actual 
            customer preference & behavior             6
WHERE DO I STAND IN RELATION TO
HIGH PERFORMANCE MARKETERS?
     Reach & engage your audience                                Multidimensional insight
Audience based targeting driven by your database
                  g    g         yy                      Customer insight is integrated across direct 
                                                                      g          g
                                                         observation, online behavior and attitudes
Primary research connected to an actionable 
census                                                   Investment is allocated according to the 
                                                         differentiated value of customers
Private exchange with key partners
                                                         Descriptive & predictive capacity around 9 key 
Intent is effectively harvested                          customer insights
Brand advertising is actionable



Personalized & coordinated engagement                       Marketing central nervous system
 Product & customer life cycle triggers drive            Enterprise customer identifier in place supporting 9 
 marketing                                               key customer insights
                                                         key customer insights
 Trigger‐driven marketing is PIL – personalized,         Marketing is measured by CLTV impact
 integrated & longitudinal
                                                         Individual impressions are attributable to outcomes
 Loyalty programs are differentiated & driven by life 
 cycle triggers                                          Batch & real‐time decision engines in place
                                                         B t h&     l ti   d ii        i    i l

 Multichannel preference center in place                 Actual consumer behavior & preferences drive 
                                                         media & channel optimization
                                                                                                             7
UNDERTAKE THE OPPORTUNITY




                            8
WORLD WRESTLING ENTERTAINMENT

   Acxiom Executive Summit
             February, 2011
WWE COMPANY OVERVIEW
Publicly traded company since 1999
       y           p y

Annual revenue is $475 million (2009)

International accounts for nearly 28% of total revenue (3Q10)
Executive Management Team Background
 – The New York Times, National Football League, National Basketball Association,
   U.S. Tennis Association, Disney, Fox News, American Express

Four Core Business Areas
 –   Live Events and Televised Entertainment
 –   Consumer Products
 –   Digital Media
 –   WWE Studios




                                                                              10
MULTI-PLATFORM GLOBAL ENTERTAINMENT COMPANY
                                                       Television Programming
                                                       145 Countries/ 30 Languages
                    140 Superstars and Divas
                                                       14 million viewers/week (U.S.)
                             Under Contract
                                                       7 hours of original programming/week

                                                                   Pay-Per-View
             WWE Events
                                                                   13 events annually
         6 shows per week
                                                                   Approximately 5+ million b
                                                                   A     i t l        illi  buys
       300+events annually


                    Music                                                Consumer Products
         Original releases                                               200+ Licensing Partners
     iTunes, Amazon.com
     iTunes Amazon com                                                   Global partnership with Mattel
                                                                         23 books on NY Times Best Seller List


           Home Video
                                                                         WWE.com
30 DVD releases annually
                                                                         12.7 million unique visitors/month
    100+ titles in catalog                                               376.9 million page views/month
                                                                         210k orders/year


                  WWE Studios                                     WWE Magazine
                 Slate of 9 films                                 5.3+ million readers


                                    WWE Mobile       WWE Kids (Magazine; Web Site)
                    1.4 billion global subscribers   650,000 audience                              11
Business Opportunity

Transform WWEShop.com from a traditional “2000s” site into a business that:
          WWEShop com                     2000s
     Leverages Marketing Sciences (the arts and the sciences)
     Develops new consumer insights
     Maximizes its financial potential
Goals
     Drive orders and sales of WWE merchandise
     Identify and target PersonicX clusters
     Provide creative testing opportunities to identify best ways to message display ads
     5:1 Return on Ad Spend
Tests
        Identify behavioral segments more likely to visit, engage, and convert via in-
        market reporting
        Identify top performing ad unit based on CTR via dynamic creative
        Complete a Lift Test to determine the increase of orders from retargeting

                                                                                     12
How we seized the opportunity

Serve dynamic
creative ads…
    Unique offers
    Unique creative
        q
    Unique sizes
    Unique colors




                                                13
How we seized the opportunity

…to users who visit key strategic areas
in our purchase funnel…

 (specific Talent pages cart homepage
                  pages, cart, homepage,
    etc.)




                                                   14
How we seized the opportunity


…and learn what works…

   18,641 total orders and $957,181 generated in revenue (~$500k incremental)

   13+ return on ad spend

   3x+ increase in retargeting average CTR with dynamic creative

   $51+ average order




                                                                           15
Challenges
Selling the idea into the organization
 1. “What exactly do you want to do?....Wait a minute…so you want to track
    me all over the internet?”
 2. We’ve been in the business for a long time & we know our customers
    well, so why this project?
 3. How do you know it will work? If so, see #4
 4. We haven’t done it before, so why now?

Conceptualizing the idea for our specific business and needs
 1.   What to test?
 2.   How to execute?
 3.   How to run & optimize campaign?
 4.   How to determine if this is ultimately good for WWE and good relative to
      the marketplace?
       h     k l     ?
Battle Tested Takeaways
Don your professor’s cap and gently educate (in simple terms) while making
the business case

    “We want to serve ads to specific visitors and we think we can make 13x”
                                      Vs.

       “We are going to leverage dynamic display advertising and segment
        indexing i
        i d i in a behavioral targeting media buy that has a lift test…”
                   b h i lt        ti     di b th t h             t t ”

   (What’s dynamic display? What segments? What is behavioral targeting?)

Collaborate & communicate

    Development of tests and launch

    Share in the insights journey (learnings, mis steps, new “ah-ha”)
                                  (learnings mis-steps        ah ha )
Thank You!
FOR MORE INFORMATION




                       19
THANK YOU




acxiom.com/FaceBook acxiom.com/LinkedIn   acxiom.com/Twitter   Discover more at acxiom.com
MULTIDIMENSIONAL INSIGHT
9 key categories of customer insight
 Relationship Profile            Interaction History             Brand Advocacy
 Customer segment history       Service history               Net Promoter Score
 Product ownership history      Promotion history             Degree of social influence
 Current & lifetime value       Response history              Brand metrics at customer level
 Share of wallet                Across channels
 Marketing budget by customer



 Product Propensities            Media Preferences            Channel Preferences
 Propensities across the        Media consumption             Shopping pathway
 conversion funnel              Explicit preferences          Preferred buying channel
 Next best product to sell      Implicit preferences          Preferred research channel
 Likelihood to recommend        Context preferences           Preferred service channel
                                Contact/cadence strategy



  Geodemographics               Interests & Attitudes         Monetary Indicators
 Age                            Optimism                      Income indicator
 Occupation                     Purchase intent by category   Wealth indicator
 Gender                         Recreational interests        Discretionary spending
 Location                       Social Causes                 Real property indicators
 Ethnicity
 Family / size of household
 Life stage / life events
                                                                                                21
CAPABILITY MODEL FOR
A CONNECTED WORLD
Customer life
cycle marketing
                  Focus on trigger driven messaging along the life cycle
                           trigger-driven
                  •   15x profit v. broadcast programs
                  •   Pull customers (v. push products) – 3x revenue/email (retailer)
                  •   Dynamic product offers - increased revenue 46% in stores & 17% online (tech
                  •   Everything as a service

                  Integrate across media & channels
                  • Integrate mobile/email – 7.5x website spend retailer
                  • Integrate outbound/website– 2x bookings hotelier

                  Solicit customer input/action
                  • Preference center – HP Technology at Work
                  • Solicit ratings/reviews – conversations are crucial
                  • Design content to be viral – 2 4x link performance
                                                 2-4x

                  Fundamentals matter
                  • Customer information decays 2%/month
                  • $144 million of commercial email won’t reach the inbox in 2014
                    $
CAPABILITY MODEL FOR
A CONNECTED WORLD
Time & location-
based marketing
                   Customer lifecycle marketing goes wireless
                   • SMS for time sensitive messages:18x return (retailer)
                   • Inventory availability drives “on premise” revenue: 5% conversion (casino)
                   • Solicit customer input/action: experiences, ratings, reviews, check-ins,
                     surveys
                   • Near-field communications/mobile commerce

                   Reach new buyers
                   • Loyalty enrollment via SMS: 280,000 new members, (retailer)
                   • M bil advertising driven b your d t b
                     Mobile d ti i d i        by     database
                   • Shopping apps, price comparison & QR codes play defense…and offense
CAPABILITY MODEL FOR
A CONNECTED WORLD
Harvest Intent

                 Improve search visibility
                 • SEO - 80% of click throughs are organic
                 • Customize/monitor the landing experience

                 Drive conversion through p
                                       g personalization
                 • Dynamic personalization to “optimize the real estate”: 9x return (insurer)
                 • Algorithm-based recommendations: $100 million revenue uplift (telco)

                 Effectively re-market
                 • R
                   Retargeting via di l or email – 12 return (e-Commerce site)
                           i    i display     il 12x
                 • Confirm chat with e-mail
CAPABILITY MODEL FOR
A CONNECTED WORLD
Smarter Demand
Generation
                 Find your high value audience Filter out the rest
                                      audience.               rest.
                 • 80% of online advertising fails to reach its intended target.
                 • Collaborative Targeting: 11x return (retailer)

                 Make brand advertising actionable & accountable
                                      g
                 • Interactive Television – coupons, samples, more information
                 • An emerging opportunity in online display. Brand represents just 5%


                 Leverage multidimensional insight
                       g                       g
                 • Combine purchase, response, value & risk scores: $7600 deposit/household
                   increase for contacted households. Retail Bank
                 • Combine seasonality, customer potential, price elasticity, halo effects, social
                   influence: 3x room nights (Casino)
                 • Connected primary research: 5 5x improvement (t l - ““cord/cable cutters”)
                                                   5.5x            (telco   d/ bl     tt ”)
CAPABILITY MODEL FOR
A CONNECTED WORLD
Media/Channel
substitution
                Arbitrage duplicative contacts based on preferences
                • $112 billion in US advertising wasted per year.      What Sticks

                • Email & print:4x revenue/email (leading publisher)


                Substitute based on preferences
                • From mass to targeted:10% revenue increase (multi-format retailer)
                • From call center to self serve: $4.5 million expense savings/yr (technology
                  firm)
                • From print to digital: 22% conversion in 45 days (airline)
                • F
                  From paid search to organic search & di l
                          id       h          i       h display: 52% b
                                                                    2% better CPA (G(Google)
                                                                                          l )
                • From paid to earned/curated

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Acxiom Forrester Marketing Forum 040511

  • 1. UNLOCKING VALUE: MARKETING STRATEGY IN A CONNECTED WORLD TIM SUTHER CHIEF MARKETING OFFICER, ACXIOM JOHN BANCROFT VP, E-COMMERCE & RETAIL MARKETING, WWE FORRESTER MARKETING FORUM APRIL 2011 ®
  • 2. THE END IS NEAR… For marketing as we knew it Consumers are boss One night stands ≠ committed relationships Yelling louder ≠ customer engagement Media mix reflects yesterday’s consumption Unsure (or negative) ROI 2
  • 3. TOPICS 1. What capabilities distinguish high performance marketing organizations? What is the upside opportunity? 2. How do high performing marketers prioritize in a world of overwhelming choice? 3. How do I determine where I stand in relation to high performing marketers? 4. Undertaking the opportunity…WWE style 5. Discussion / Q&A
  • 4. GLOBAL MARKETING SERVICES & TECHNOLOGY FIRM Focused on audience and customer engagement INDUSTRY RECOGNITION #1 in client satisfaction – Data Monitor #3 Business Services & Consulting – Information Week 500 Innovators #2 CRM agency worldwide – AdAge Largest marketing service provider – Forrester Research QUICK FACTS 8,800 clients in 40 countries 300,000 campaigns/year 24 trillion consumer interactions/year $1.2 billion revenues. 70% under long-term contract NASDAQ – ACXM
  • 5. WHAT CAPABILITIES DISTINGUISH HIGH PERFOMANCE MARKETING? 15-30% improvement opportunity for most companies 5
  • 6. HOW DO I PRIORITIZE IN A WORLD OF UNLIMITED CHOICE? Maximize value from existing customers g Engage with customers “there” Engage with customers “there” Improve “intent harvest” from prospective buyers Generate demand more insightfully Substitute media & channel based upon actual  customer preference & behavior 6
  • 7. WHERE DO I STAND IN RELATION TO HIGH PERFORMANCE MARKETERS? Reach & engage your audience Multidimensional insight Audience based targeting driven by your database g g yy Customer insight is integrated across direct  g g observation, online behavior and attitudes Primary research connected to an actionable  census Investment is allocated according to the  differentiated value of customers Private exchange with key partners Descriptive & predictive capacity around 9 key  Intent is effectively harvested customer insights Brand advertising is actionable Personalized & coordinated engagement Marketing central nervous system Product & customer life cycle triggers drive  Enterprise customer identifier in place supporting 9  marketing key customer insights key customer insights Trigger‐driven marketing is PIL – personalized,  Marketing is measured by CLTV impact integrated & longitudinal Individual impressions are attributable to outcomes Loyalty programs are differentiated & driven by life  cycle triggers Batch & real‐time decision engines in place B t h& l ti d ii i i l Multichannel preference center in place  Actual consumer behavior & preferences drive  media & channel optimization 7
  • 9. WORLD WRESTLING ENTERTAINMENT Acxiom Executive Summit February, 2011
  • 10. WWE COMPANY OVERVIEW Publicly traded company since 1999 y p y Annual revenue is $475 million (2009) International accounts for nearly 28% of total revenue (3Q10) Executive Management Team Background – The New York Times, National Football League, National Basketball Association, U.S. Tennis Association, Disney, Fox News, American Express Four Core Business Areas – Live Events and Televised Entertainment – Consumer Products – Digital Media – WWE Studios 10
  • 11. MULTI-PLATFORM GLOBAL ENTERTAINMENT COMPANY Television Programming 145 Countries/ 30 Languages 140 Superstars and Divas 14 million viewers/week (U.S.) Under Contract 7 hours of original programming/week Pay-Per-View WWE Events 13 events annually 6 shows per week Approximately 5+ million b A i t l illi buys 300+events annually Music Consumer Products Original releases 200+ Licensing Partners iTunes, Amazon.com iTunes Amazon com Global partnership with Mattel 23 books on NY Times Best Seller List Home Video WWE.com 30 DVD releases annually 12.7 million unique visitors/month 100+ titles in catalog 376.9 million page views/month 210k orders/year WWE Studios WWE Magazine Slate of 9 films 5.3+ million readers WWE Mobile WWE Kids (Magazine; Web Site) 1.4 billion global subscribers 650,000 audience 11
  • 12. Business Opportunity Transform WWEShop.com from a traditional “2000s” site into a business that: WWEShop com 2000s Leverages Marketing Sciences (the arts and the sciences) Develops new consumer insights Maximizes its financial potential Goals Drive orders and sales of WWE merchandise Identify and target PersonicX clusters Provide creative testing opportunities to identify best ways to message display ads 5:1 Return on Ad Spend Tests Identify behavioral segments more likely to visit, engage, and convert via in- market reporting Identify top performing ad unit based on CTR via dynamic creative Complete a Lift Test to determine the increase of orders from retargeting 12
  • 13. How we seized the opportunity Serve dynamic creative ads… Unique offers Unique creative q Unique sizes Unique colors 13
  • 14. How we seized the opportunity …to users who visit key strategic areas in our purchase funnel… (specific Talent pages cart homepage pages, cart, homepage, etc.) 14
  • 15. How we seized the opportunity …and learn what works… 18,641 total orders and $957,181 generated in revenue (~$500k incremental) 13+ return on ad spend 3x+ increase in retargeting average CTR with dynamic creative $51+ average order 15
  • 16. Challenges Selling the idea into the organization 1. “What exactly do you want to do?....Wait a minute…so you want to track me all over the internet?” 2. We’ve been in the business for a long time & we know our customers well, so why this project? 3. How do you know it will work? If so, see #4 4. We haven’t done it before, so why now? Conceptualizing the idea for our specific business and needs 1. What to test? 2. How to execute? 3. How to run & optimize campaign? 4. How to determine if this is ultimately good for WWE and good relative to the marketplace? h k l ?
  • 17. Battle Tested Takeaways Don your professor’s cap and gently educate (in simple terms) while making the business case “We want to serve ads to specific visitors and we think we can make 13x” Vs. “We are going to leverage dynamic display advertising and segment indexing i i d i in a behavioral targeting media buy that has a lift test…” b h i lt ti di b th t h t t ” (What’s dynamic display? What segments? What is behavioral targeting?) Collaborate & communicate Development of tests and launch Share in the insights journey (learnings, mis steps, new “ah-ha”) (learnings mis-steps ah ha )
  • 20. THANK YOU acxiom.com/FaceBook acxiom.com/LinkedIn acxiom.com/Twitter Discover more at acxiom.com
  • 21. MULTIDIMENSIONAL INSIGHT 9 key categories of customer insight Relationship Profile Interaction History Brand Advocacy Customer segment history Service history Net Promoter Score Product ownership history Promotion history Degree of social influence Current & lifetime value Response history Brand metrics at customer level Share of wallet Across channels Marketing budget by customer Product Propensities Media Preferences Channel Preferences Propensities across the Media consumption Shopping pathway conversion funnel Explicit preferences Preferred buying channel Next best product to sell Implicit preferences Preferred research channel Likelihood to recommend Context preferences Preferred service channel Contact/cadence strategy Geodemographics Interests & Attitudes Monetary Indicators Age Optimism Income indicator Occupation Purchase intent by category Wealth indicator Gender Recreational interests Discretionary spending Location Social Causes Real property indicators Ethnicity Family / size of household Life stage / life events 21
  • 22. CAPABILITY MODEL FOR A CONNECTED WORLD Customer life cycle marketing Focus on trigger driven messaging along the life cycle trigger-driven • 15x profit v. broadcast programs • Pull customers (v. push products) – 3x revenue/email (retailer) • Dynamic product offers - increased revenue 46% in stores & 17% online (tech • Everything as a service Integrate across media & channels • Integrate mobile/email – 7.5x website spend retailer • Integrate outbound/website– 2x bookings hotelier Solicit customer input/action • Preference center – HP Technology at Work • Solicit ratings/reviews – conversations are crucial • Design content to be viral – 2 4x link performance 2-4x Fundamentals matter • Customer information decays 2%/month • $144 million of commercial email won’t reach the inbox in 2014 $
  • 23. CAPABILITY MODEL FOR A CONNECTED WORLD Time & location- based marketing Customer lifecycle marketing goes wireless • SMS for time sensitive messages:18x return (retailer) • Inventory availability drives “on premise” revenue: 5% conversion (casino) • Solicit customer input/action: experiences, ratings, reviews, check-ins, surveys • Near-field communications/mobile commerce Reach new buyers • Loyalty enrollment via SMS: 280,000 new members, (retailer) • M bil advertising driven b your d t b Mobile d ti i d i by database • Shopping apps, price comparison & QR codes play defense…and offense
  • 24. CAPABILITY MODEL FOR A CONNECTED WORLD Harvest Intent Improve search visibility • SEO - 80% of click throughs are organic • Customize/monitor the landing experience Drive conversion through p g personalization • Dynamic personalization to “optimize the real estate”: 9x return (insurer) • Algorithm-based recommendations: $100 million revenue uplift (telco) Effectively re-market • R Retargeting via di l or email – 12 return (e-Commerce site) i i display il 12x • Confirm chat with e-mail
  • 25. CAPABILITY MODEL FOR A CONNECTED WORLD Smarter Demand Generation Find your high value audience Filter out the rest audience. rest. • 80% of online advertising fails to reach its intended target. • Collaborative Targeting: 11x return (retailer) Make brand advertising actionable & accountable g • Interactive Television – coupons, samples, more information • An emerging opportunity in online display. Brand represents just 5% Leverage multidimensional insight g g • Combine purchase, response, value & risk scores: $7600 deposit/household increase for contacted households. Retail Bank • Combine seasonality, customer potential, price elasticity, halo effects, social influence: 3x room nights (Casino) • Connected primary research: 5 5x improvement (t l - ““cord/cable cutters”) 5.5x (telco d/ bl tt ”)
  • 26. CAPABILITY MODEL FOR A CONNECTED WORLD Media/Channel substitution Arbitrage duplicative contacts based on preferences • $112 billion in US advertising wasted per year. What Sticks • Email & print:4x revenue/email (leading publisher) Substitute based on preferences • From mass to targeted:10% revenue increase (multi-format retailer) • From call center to self serve: $4.5 million expense savings/yr (technology firm) • From print to digital: 22% conversion in 45 days (airline) • F From paid search to organic search & di l id h i h display: 52% b 2% better CPA (G(Google) l ) • From paid to earned/curated