How innovative marketers deliver results (an IBM Webinar)

How Innovative Marketers
Deliver Results
Through Optimized Marketing Processes
July 12, 2012

Mayer Becker, Motorola Mobility
Gregg Aamoth, Macy’s

© 2012 IBM Corporation

www.ibmconnectedcustomer.com
Generation C : The Connected Customer #IBMMarketing

Genera&on
C
is
not
a
demographic.

It’s
everyone.

They’re
connected
to
your
brand
24/7,

and
they’re
empowered....

The Connected Customer The Connected Marketer

Connected
consumers
engage
across

channels
and
want
marke&ng
so

relevant
and
personal,
it
feels
like
a

service.

Use
5
cri&cal
steps
to
become
a

connected
marketer
–
Collect,

Analyze,
Decide,
Deliver
and
Manage

2

Webinar agenda

§ Introduction to today’s speakers
§ Opening thoughts from latest IBM marketing surveys
§ Overview of how Motorola Mobility drives efficiency with IBM
EMM
§ Overview of how Macy’s delivers performance effectiveness
with IBM EMM
§ Q+A


Today’s speakers

Mayer Becker, Sr Director Global Marketing Systems
Motorola Mobility

• Measuring and delivering internal marketing efficiency

Gregg Aamoth, Former VP Customer Marketing Systems
Macy’s

• Measuring and understanding performance effectiveness

4

CMOs believe ROI on marketing spend will be the
number one method for determining success by 2015
• More than 1700 CMOs were interviewed around the world!

Seven most important measures to gauge marketing success
Percent of CMOs selecting success measurements

Marketing ROI 63%

Customer experience 58%
Measuring
and

Conversion rate/new customers 48% driving

marke/ng
ROI
is

Overall sales 45% a
key
beneﬁt
of

Marke/ng

Marketing-influenced sales 42% Performance

Op/miza/on

Revenue per customer 42%

Social media metrics 38%

Source: IBM’s 2011 Global CMO Study

6 © 2012 IBM Corporation

A key part of measuring marketing effectiveness is through
attribution… but there’s still work to be done

Challenges in Accessing, Managing and Analyzing
Data across Channels
27%
Ability to measure Of marketers don’t
58% 27% 15% perform attribution.
effectiveness
Multiple systems & 58% 26% 16%
data sources A significant challenge
Managing complex 51% 29% 20% Neutral
business rules Not a challenge
Number of offers
distributed through channels
45% 32% 23% And 34%
Manually analyze
Software scalability 44% 30% 26% attribution through
spreadsheets.

Base: Total Sample (n=362)

7

Good marketing is like a good dialogue

The five critical capabilities of a “connected marketer.”

Analyze Decide
marketing data to find on the best
actionable insights marketing action

Collect Deliver
data that augments engaging messages
each customer profile and capture reactions

Manage
marketing processes and
measure results
8

Our webinar will focus on connected customers within the Marketing
Performance Optimization solution

USER
GROUP
NEED
EMM
SOLUTION

Turn
online
prospects

Digital

Digital

marketers

into
repeat
customers
and
loyal
Marke&ng

advocates
Op&miza&on

Customer
Engage
each
customer
and
prospect
Marke&ng

rela/onship
in
a
one-‐to-‐one
dialogue
across
Interac&on

marketers
communica/on
channels
Op&miza&on

Align
prices,
promo/ons
and
Price,
Promo&on,

Merchandising

&
sales
planners

product
oﬀerings
to
increase
and
Product
Mix

customer
loyalty
and
proﬁt
Op&miza&on

Improve
marke/ng
Marke&ng

Marke/ng
leaders

opera/ons
and
planning

Performance

&
planners
to
maximize
marke/ng
ROI
Op&miza&on


Introducing the value of IBM Marketing Performance
Optimization
Strategic
Eﬀec&veness

•  Delivers fact-based strategic marketing mix planning
•  More precisely measures campaign effectiveness
•  Determines channel and program ROI

Marke&ng

+ Performance

Opera&onal
Eﬃciency

•  Promotes Best Practices
•  Drives Productivity
•  Delivers Accountability
Marke&ng
•  Promotes organizational Alignment
Opera&ons

10

Delivering marketing efficiency by

Automating Procure-to-Pay
with IBM Unica


Motorola Mobility – a global OEM and industry leader in
mobile phone manufacturing and distribution

Motorola Mobility
§  Originally part of Motorola, Inc.
–  Spun out as Motorola Mobility Inc.
2011
–  Acquired by Google in 2012
§  Multi-billion dollar, multi-line OEM
§  Two major lines of business:
–  Mobile phones and accessories
–  Cable products
§  30-40 phone product launches per year
§  Global marketing organization
–  Central services in Libertyville
–  6 Regional organizations
–  25+ countries
DROID RAZR Maxx by Motorola

DROID is a trademark of Lucas Films Inc, and used under license. 3/12/13
© 2012 Motorola Mobility, Inc. – All Rights Reserved

14

The Situation: a busy, global organization had to get things done
with stringent processes and few tools

§ A hectic work schedule – 30 to 40 product launches in a year
§ A dual, multi-step procure-to-pay process
§ 4000-5000 legal documents per year with processing time of 10-15
days
§ Limited automation
–  Law department had a stand-alone workflow tool, email for all else
–  Ariba for procurement management, but assumed Statements of Work were already approved
and signed

§ Multiple stakeholders – marketing, finance, procurement & legal – had
to review/approve documents
§ Limited number of individuals to sign agreements

3/12/13
© 2012 Motorola Mobility, Inc. – All Rights Reserved © 2012 IBM Corporation

15

The Result: an unacceptable violation of internal controls and an
inefficient work environment

§ Standard Operating Procedure clearly laid out how procure-to-pay had
to operate
§ Internal audit revealed 80% of US-based vendor work began before a
Statement of Work was agreed and signed; a SOX issue
§ Posed risk to the company & vendors
§ Caused hours of unnecessary work:
– Where’s my SOW?
– Is there an Officer available today who can sign my SOW?
– Does anyone have a copy of last year’s SOW?

3/12/13

16

The Solution: automate the procure-to-pay process using Unica
Marketing Operations

§  Unica Marketing Operations (UMO) was already available, having been
installed as part of an upgrade to our consumer marketing capabilities (E-CRM/
campaign management)
§  Engaged consultants to configure UMO templates to handle routing and
approval of legal documents
§  Laid out adoption roadmap, training and change management program
§  Integrated UMO with Ariba for seamless information flow
§  Added additional signatories
§  Proposed new procedures for exception handling and gained agreement with
finance, procurement, legal and internal audit

3/12/13
© 2012 Motorola Mobility, Inc. – All Rights Reserved

17

The Outcome: compliance with internal controls and more timely
information for the marketing team

§  Achieved 83% compliance in third quarter after deployment (up from low 20’s)
and have maintained +80% since
§  On-boarded 10 Administrators, 75 requesters and 20 approvers in the US,
Canada and Mexico
§  Handled 2500+ legal documents and reduced processing time to 3 days
§  Integrated with Ariba for a nightly feed of purchase request status information,
which populates the UMO Project Template
§  Created a system of record for all marketing legal documents
§  Delayed deployment to additional countries due to resource constraints;
deployment restarting Q3 2012

3/12/13

Delivering performance effectiveness through

Omnichannel Marketing
and Measurement

19

The Company: national corporation with department store and
luxury department store brands.

Products
Content

Brands combined have ~1000 Over 2 billion digital and printed
locations, with product segmented by marketing impressions each year -
market and customer lifestyles. versioned and targeted to optimize a
specific customer’s response and spend.

Solu&on

•  IBM Unica used to drive nearly 5 years of multichannel
purchase and promotion history for >40 million customers.
•  Both brands use Coremetrics browser history matched to
individuals and their in-store purchases.

20

The Process: Omnichannel Marketing Lifecycle

Marketing Strategy Offer and Content Creation
Customer and Campaign
Marketing Planning Print and Online
Dashboards Production

Reporting
Model Targeting and
and Customer Optimization Segmentation
Analysis

Campaign
Execution

21

An overview of the Marketing Data Ecosystem needed for
measurement

§ Single, hierarchical view of the customer across brands and channels

§ Consolidated, omnichannel view of:
– Campaign definitions and contact history
– Purchase and non-purchase history
– Short and long-term customer segmentation
– Customer & marketing KPIs and ROI analysis

Quality Reliable Better
Data Measures Decisions

22

Tips on measuring effectiveness with Omnichannel
Marketing

§ One group responsible for reporting effectiveness of marketing across
all media types and channels.

§ Focus on standard terminology, definitions, and sources for
measurement.

§ All metrics are in Customer Centric terms and perspective, for
example online purchases are tracked on the date the Customer
clicked ‘buy’, not the date the product was shipped.

§ Must educate executive stakeholders why reports that originate from
different systems or are channel specific don’t “foot”.

23

In Progress: statistically driven arbitration and attribution

§ Common campaign definitions $30 First Last $30

in ALL media and channel
types. Ads
Ads

Time Window Time Window

§ Pre-defined “shelf-life” for every $10 $10
Average
$10

exposure.
Ads

§ Response analysis based on Time Window

the people and products
promoted. Statistically Inferred
$5.8 $15.3 $8.9

§ Self-learning model determines
appropriate attribution for each Ads

customer and media
Time Window

24

The Future: delivering Omnichannel Contact Strategy

§ Driven by Marketing ROI, Customer Profitability, and Customer
Loyalty.
§ Includes opportunity for customer to control the frequency and type of
contacts
§ Incorporates voice of the customer feedback and Marketing’s effect
on Net Promoter Scores

Goal: Aggressive migration of marketing spend toward targeted and
measureable media – including enhanced targeting through traditional
media.

25

Ques/ons?

Join the conversation. How do you connect with customers?
#IBMMarketing to join the live Twitter conversation and see it here:
http://www.ibmconnectedcustomer.com

Mayer Becker, Motorola Mobility Gregg Aamoth, formerly Macy’s
mayer.becker@motorola.com www.linkedin.com/pub/gregg-aamoth
www.linkedin.com/in/mayerbecker

27

How innovative marketers deliver results (an IBM Webinar)

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