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
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
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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
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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
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13. How we seized the opportunity
Serve dynamic
creative ads…
Unique offers
Unique creative
q
Unique sizes
Unique colors
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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.)
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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
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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 )
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
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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