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Adam Sarner

Digital Marketing: A Transformational Approach for Marketers

@GARTNER_INC

Gartner at a Glance

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Organizations

290,000 Client

Interactions

Vertical Coverage

in Nine Industries

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Inquiries

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Community of CIOs

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Engagements

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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Adam Sarner

Digital Marketing: A Transformational Approach for Marketers

Marketing Needs a New Approach

Key Issues

1. What are the drivers fueling growth in campaign management?

2. How will a digital marketing approach reinforce campaign management?

3. How will vendors develop to support online and offline campaign management orchestration?

Key Issues

1. What are the drivers fueling growth in campaign management?

2. How will a digital marketing approach reinforce campaign management?

3. How will vendors develop to support online and offline campaign management orchestration?

Marketers Must Move From Mass Blasting Tools to Complex Customer Orchestration

Campaign

Management

Grow

Retain

Acquire

Execution

Complexity

Strategy

Complexity

@

First Touch

Third Touch

DM CC

@

DM

CC

@ DM CC Second Touch

Skills, Roles, Processes

Orchestration

Marketing Technology Matrix

Persona Management

Voice of the Customer

Marketing Mix Optimization

Integrated Marketing Management

Campaign Management

SaaS

Product Recommendation

Engine

Social Media Metrics

Global, Integrated MRM

Pricing Optimization and Management

Marketing Performance

Management

MRM: Marketing

Fulfillment

Process Templates

Social CRM: Social

Marketing Social Analytics

MRM Analytics

Entity Resolution and Analysis

Loyalty Marketing

MRM SaaS

Multichannel Campaign Management

Predictive Campaign Analytics

Audio Mining/ Speech Analytics

Event - Triggered Marketing

Real - Time Decisioning

MRM: Planning and Financial Management

MDM of Customer

Data

Text Analytics

Customer Profitability Management

Brand Management

MRM: Creative Production

Management

Digital Marketing

Campaign Segmentation

Email Marketing

Lead Management

Marketing Service Providers

MRM: Marketing Asset Management

Web Analytics

Campaign Tracking and Measurement

Pro

du

cti

vit

y

Customer Experience

Productivity and Customer Experience Orchestration Driving MCCM

96%

72%

60%

58%

36%

33%

29%

16%

3%

11%

0% 20% 40% 60% 80% 100%

Email

Web

Direct mail

Call center

Social

Search

SMS

Mobile

RSS

Other

n = 89

Which of the following channels does your organization currently use for campaign management?

Rank 1 to 10 in order of prevalence.

Digital Channels Driving Multichannel Campaign Management

Multichannel Campaign Management Heads for the Cloud

Which of the following deployment models does your organization use for the service provider's multichannel campaign management?

On-premises deployment of the

software 55%

Off-premises deployment of the

software 12%

Software-as-a-service deployment

29%

Other 4%

n = 89

Speed of Implementation and Ease of Use Drive SaaS Campaign Management

68%

54%

50%

46%

43%

39%

36%

32%

32%

21%

18%

11%

7%

4%

11%

0% 20% 40% 60% 80% 100%

Speed of implementation

Ease of use

Scalability

Best value for money

Integration with existing applications

Flexibility

Customer service levels

Lack of internal resources

Customizable

Vendor reputation

Existing relationship

Data security

Company policy

Lack of availability of other options

Other

n = 89 Multiple responses allowed

(From the multichannel campaign management Magic Quadrant reference survey, May 2011)

Why did your organization choose software as a service for campaign management?

Key Issues

1. What are the drivers fueling growth in campaign management?

2. How will a digital marketing approach reinforce campaign management?

3. How will vendors develop to support online and offline campaign management orchestration?

Defining Digital Marketing Digital marketing is an approach toward contextual marketing, addressable branding, community marketing and transactional marketing. Digital marketing extends marketing processes through channels such as the Web, email, video, mobile, social, kiosks, point-of-sale terminals, interactive television and gaming platforms.

What Campaign Management Needs

From Digital Marketing

Digital Marketing and Campaign Management Need Each Other

• Engagement

• Right-Brain Marketing

• Flexibility

• Customer View

• Online Channels

• Response Attribution Metrics

• Multiple Processes

• Left-Brain Marketing

• Integration

• Customer Record

• Offline Channels

• Orchestration

What Digital Marketing Needs From

Campaign Management

Digital Marketing: Key to Response Attribution

Web: Clickstream analysis: length and frequency, repeats

Social: Identifying influencers, sentiment, real-time changes to campaigns

Mobile: Context of location, stage of buying process

Personalization: Detecting preferences, determining real-time treatment

High Low

High

Aware

Addressable

Direct Mail Web, Mobile, Social, Email,

Gaming

Print Advertising TV Billboards

Interactive TV Store

Metric: Recipient behavior vs. nonrecipient

RFM model

Metric: Inferences to total sales

Metric: Campaign success definitions,

activity-based costing

Metric: Response rates to campaigns

We know you, but not sure how you responded.

We know how, why, when and what you're

responding to.

We don't know who you are or whether you

responded.

We can identify you when you respond.

Digital Marketing Functionality: Four Types

• Digital advertising

• Digital video

• Digital signage

• Digital branding

• In-game

advertising

• Podcasts

• Social analytics

• Ideation mgmt.

• Social campaigns

• Forums

• Word of mouth

• Social event

networking

• Reputation mgmt.

• Digital branding

• Search marketing

SEO, SEM

• Mobile marketing

• Digital recommendation

engines

• Web/digital analytics

• Event-triggered/inbound

• Augmented reality

marketing

• Email marketing

• Lead management

• Digital campaigns

• E-commerce

• Product reviews

• Gift registry

• Cross-selling, upselling

• Loyalty marketing

Addressable Advertising

Social Marketing

Transactional Marketing

Contextual Marketing

Vail Resorts: Addressable Advertising

Contextual Marketing: Mobile

Increasing automation, behavioral knowledge,

social awareness

and analysis

Number/richness of information sources

Social Marketing: Miracle Whip

Scotts Lawn Care: Transactional Marketing

Source: Scott's Lawn Care

• Problem: Need to be more relevant to an individual's circumstances and have an efficient way to account for all the different variations.

• Objective: Generate a highly personalized form of communication beyond e-mail blasting.

• Approach: Use Scotts' information on lawn care, combined with profiles based on ZIP Code, grass type, gardening preferences and changing conditions, such as insect and weed infestations.

• Results: Thousands of recommendations from a single email template. Significantly increased open rates, fewer spam complaints. Reduced costs 30%.

Key Issues

1. What are the drivers fueling growth in campaign management?

2. How will a digital marketing approach reinforce campaign management?

3. How will vendors develop to support online and offline campaign management orchestration?

Campaign Management Functionality Building Blocks

Channel

Foundation

Campaign

Analytics

Campaign

Workflow

Goals

Executing

Campaigns

Dialogue Management Event Triggering

Campaign Management Workflow

UI, Planning, Roles and Approvals Tracking, Measurement, Multistep,

Multiwave Process Workflow

Data Cleansing and Matching, Data Modeling, Lists Data Warehouse/Data Mart/Source Data

Acquisition, Growth, Retention Campaigns

Loyalty Management

Lead Management

Segmentation

Personalization/Persona Management

Predictive Analytics

Web Analytics

Social Marketing

Content Management

Offer Management

Campaign Optimization

Search Marketing

Customer Profitability Analysis/Attribution Metrics

Call Center

Direct Mail

Partners/Distributors

Email

ITV

Mobile

Web

Social

Store/Office

Gaming

Magic Quadrant for CRM Multichannel Campaign Management

(From "Magic Quadrant for CRM Multichannel Campaign Management,"

22 May 2012)

challengers leaders

niche players visionaries

completeness of vision

ab

ility

to

exe

cu

te

As of May 2012

IBM-Unica

SAS Teradata-Aprimo

Oracle Siebel

Responsys Adobe Systems

Neolane

Sitecore

Eloqua

Marketo

SDL Alterian PB Software ClickSquared

Oracle RightNow

SAP

Infor

Campaign Management Needs Better Digital Marketing Functionality

6.17 6.08 6.00 5.99 5.95 5.87 5.81 5.78 5.77

5.55 5.47

5.14 5.09 5.06

4.40 3.50

6.12

1 2 3 4 5 6 7

Multistep multiwave campaign creation Attribution metrics

Real-time offers/recommendations Email marketing

Event-triggered marketing Lead management

Campaign optimization Segmentation and/or data mining

Content management Inbound marketing Predictive analytics

Web analytics Mobile marketing Social marketing

Search engine marketing (paid) Search engine optimization (organic)

Other

From 1 to 7, how well do you think the provider is fulfilling your needs for each of the following?

n = 89

Campaign Management

No Digital Marketing Suite, but Expect Consolidation Toward Campaign Management

Search Marketing Web Analytics

Email Marketing

E-Commerce

Digital Agencies

Advertising Networks

Marketing Service Providers

Social Marketing

Recommendation Engines

Web Content Management

Offline

Online

Service Technology

Advertising Agencies

Mobile Marketing

Stop:

- Spamming the customer

- Using nonaware, nonaddressable communication

- Doing something because its "social"

- Doing something because its "mobile"

Start:

- Focus on customer access, participation and mutual value developing from digital marketing trends.

- Connect accurate and timely response/capture metrics to digital marketing channels.

- Develop a social marketing strategy around product development and social campaigns for measurable benefits.

- Consider mobile applications that bring context of time and place, and help customers walk through a problem or buying process, while recommending solutions. Consider partnering.

Action Plan for Marketing Leaders

Recommended Gartner Research

"Magic Quadrant for CRM Multichannel

Campaign Management"

Adam Sarner (G00213005)

"Marketing Needs to Start Developing New Skills to

Engage the Digital Customer"

Adam Sarner (G00226619)

"Balance Customer Experience With Marketing

Productivity in Marketing Automation Initiatives"

Adam Sarner, Jim Davies (G00216115)

"Digital Marketing: The Critical Trek for Multichannel

Campaign Management"

Adam Sarner (G00210964)

For more information, stop by Gartner Solution Central or e-mail us at solutioncentral@gartner.com.

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