Ronald VeltenMarketing DirectorIBM Europe

Redefining Marketing in the age of ‘me’

IBM Institute for Business ValueI would like to share some insights and experiences

With the goal to give you one (or) more inspirational points

fact is our world is changing

so what should we do?

Examples  are  plenty

yeah, we know the drill

investing in marketing does work

but wake up and smell the coffee

our world has changed

significantly ….

(y)our clients behavior changed

b2b and b2c became p2p

enabled by a mobile revolution

creating a content tsunami

offering unique marketing opportunities to differentiate

we must integrate off- and on line

17the killer app (1998)

creating unique opportunities to deliver when it counts

leveraging the device of customer choice not your capabilities

apple still rules

On average, iOS users spent $127.92 per order, compared to $105.20 per order for Android on Black Friday. iOS traffic reached 28.2 percent of all online traffic, compared to 11.4 percent for Android. iOS sales reached 18.1 percent of all online sales, compared to 3.5 percent for Android.

pinterest referrals spend 77% more (but yield less)

The Social Influence – Facebook vs. Pinterest: On average, holiday shoppers referred from Pinterest on Black Friday spent 77 percent more per order than shoppers referred from Facebook. Facebook average order value was $52.30 versus Pinterest average order value which was $92.51. However, Facebook referrals converted sales at nearly four times the rate of Pinterest.

technology is changing our marketing world

IBM Institute for Business Value

CEOs consider technology the single most important external force shaping

2006

6

5

4

2008 2010 2012 2013

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5

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5 5

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7

88

77

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1

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6

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Technology factorsMarket factorsMacro-economic factorsPeople skills

Socio-economic factorsGlobalization

Regulatoryconcerns

Environmental issues

5

7

3

2

2004

CEO Studies 2004–2013

Geopoliticalfactors

4

your CEO wants to move, quickly

to meet the demand of the empowered customer

the more demanding customer

the next generation customer

IBM Institute for Business Value

Deep and trusted relationships with customers pay off: more outperforming

Greater  collabora+on  with  customers  translates  into  greater  financial  success

being customer Activated does pay off

In two-thirds of the organizations that outperform their peers, leaders are not just managing customer experiences; they are reorienting their organizations, strategies and investments to cultivate contemporary relationships across all manner of customer interactions.Some of the most advanced enterprises are establishing customer advisory boards to get direct input on strategic issues.

IBM Institute for Business Value

Areas  of  personal  involvement

20%

eCommerceTalent management

Supplier, vendor and partner management

Risk and security

IT systems and operations

Customer experience management

+5%

+7%

+8%

-5%

-5%

-6%

CxOs are rebalancing priorities

CxOs are adjusting their priorities accordingly in a subtle rebalancing act.They plan to spend less of their personal time on IT systems and operations and other such issues, and more time improving the customer experience.

IBM Institute for Business Value

48%

70%

88%52%

Customer  interac+on  channels

24%

57%

45%

20%

20% 40% 60%0%

Face-to-face

Call centers

Traditional media

CxOs intend to interact digitally with customers to a much greater extent in the future

80%

80%

Digital

Today 3–5  Years

] 69%more

100%

and digital will play a crucial role for this

CxOs intend to use digital channels much more extensively to engage with customers in the future. And here’s one instance where they’ve already embraced the shift:• In 2012, 57 percent of CEOs expected digital channels to become one of their company’s key means of interacting with customers within

the next five years.• In 2013, 52 percent of CxOs say they are already there.

IBM Institute for Business Value

As competitors cross industries, the intersection between the digital and physical

Types  of  digital  strategy

31%

33%36%36%

have  an  integrated  digital-­‐physical  strategy

Integrated  digital-­‐physical  strategy

Limited  digital  strategy

No  digital  strategy

but we are not there yet

The problem? Two-thirds of enterprises have a weak digital-physical strategy — or none at all. Some organizations are reconfiguring their offerings to capitalize on social networks and mobile connectivity. Others are reshaping their operating models to inject customer input into every aspect of the buying and selling chain. But they’re often not doing both at once.

it is time to change

As marketers we have always been responsible for knowing the customer.

As marketers we have always been responsible for defining what to market, and how to market.

As marketers we have always protected the brand promise.

the timeless responsibilities of our function

As marketers we have always been responsible for knowing the customer.

As marketers we have always been responsible for defining what to market, and how to market.

As marketers we have always protected the brand promise.

the three imperatives of our changing function

Understand each client as an individual

As marketers we have always been responsible for defining what to market, and how to market.

As marketers we have always protected the brand promise.

the three imperatives of our changing function

Understand each client as an individual

As marketers we have always been responsible for defining what to market, and how to market.

As marketers we have always protected the brand promise.

the three imperatives of our changing function

Understand each client as an individual

Create a system of engagement that maximizes value creation at every touch.

As marketers we have always protected the brand promise.

the three imperatives of our changing function

SATISFACTIONTRUSTPOSITIVITY

CONVICTIONLOYALTY

COMMITMENTFEELING

EXPERIENCE

it is about connecting touch points

SATISFACTIONTRUSTPOSITIVITY

CONVICTIONLOYALTY

COMMITMENTFEELING

EXPERIENCE

it is about connecting touch points

IBM Institute for Business Value

CMOs plan to put the components of a broad digital strategy in place throughout the

Digital ambitions – CMOs

Today 3-5 Years

11%

13%

Integration of cross-channel touchpoints

Analytics to capture customer insights

Social networks to foster collaboration

Workforce aligned to opportunities

Digitally enabled supply chain

13%

16%

20% 78%

83%

87%

73%

69%

CMO-CIO the new Marvell super hero duo!

IBM Institute for Business Value

12%5%

83%

83%will focus on front office

digitization

In line with CMOs, four-fifths of CIOs aim to digitize their front office to sync with

IT focus area – digitizing the front office

Large extent Some extent Limited extent

CMO-CIO the new Marvell super hero duo!

IBM Institute for Business Value 43

hDp://public.dhe.ibm.com/soJware/commerce/sc-­‐payback-­‐roi.pdf

IBM Smarter Commerce pays back $12.05 for each $1 spent

Understand each client as an individual

Create a system of engagement that maximizes value creation at every touch.

As marketers we have always protected the brand promise.

the three imperatives of our changing function

Understand each client as an individual

Create a system of engagement that maximizes value creation at every touch.

Design your culture and brand so they authentically act as one

the three imperatives of our changing function

so we don’t want to wake on a morning ….

Questions?

@ronaldvelten linkedin.com/in/rvelten