Modern Marketing in the Digital Era

Marketing Transformation

79%

concerned their

current business

models are not

disruptive enough

to remain competitive.

73%

concerned about

meeting the

different needs and

wants of digital

millennials.

78%

concerned about

the quality of data

on which their

decisions are based.

73%

concerned that

they are not

keeping pace with

customer needs

and expectations.

of CEOs concentrated

on customer loyalty

recognise that

mastering the customer

agenda can unlock

value and provide

competitive advantage.

88%

Boards recognise that to achieve growth businesses need to apply

digital transformation to keep pace with rapidly changing customers.

CloudCloud shift will drive more than

$1 trillion in IT spending by 2020.

AIEstimated $1.2 trillion in new

revenue driven by AI in next 3 years.

Data163 zettabytes annually by 2025.

Networks5+ people are involved in a business

technology purchase. This is more for

enterprises.

Customer experienceBuying experience drives 53% of

loyalty and 81% of purchase decisions.

JourneyCustomers are 67% through the buying

journey before they talk to a company.

Source: Multiple Sources. Available Upon Request.

Customers are in control…

50% of consumers will quit doing business with a company after a

bad sales or marketing experience- ACCENTURE

80% of American adults use at least one adblocking service

- DELOITTE

55% of consumers ages 18-65 have purchased a product they discovered on social media

- MARY MEEKER

57% of the purchase journey is completed by B2B buyers before they have direct contact with a supplier

- MARKETING LEADERSHIP COUNSEL

79% of consumers say brands have

to demonstrate they understand

and care about them before they

consider purchase- WUNDERMAN

Businesses who deliver personalizedcustomer experiences can increase

revenue by 6-10%- BCG

New set of

responsibilities

Business models

disruption

New consumption

behaviors

Innovation

acceleration

ICT

Media

Professional services

Finance and insurance

Oil and gas

Utilities

Chemicals & pharmaceuticals

Basic goods manufacturing

Mining

Real estate

Transportation & warehousing

Transportation & warehousing

Education

Retail trade

Entertainment and recreation

Personal and local services

Wholesale trade

Advanced manufacturing

Oil and gas

Utilities

Chemicals & pharmaceuticals

Basic goods manufacturing

Mining

Real estate

Basic goods manufacturing

Mining

Real estate

Transportation & warehousing

Education

Retail trade

Entertainment and recreation

Personal and local services

Government

Health care

Hospitality

Construction

Agriculture and hunting

Government

Health care

Hospitality

Construction

Agriculture and hunting

Source: McKinsey Global Institute Analysis

Knowledge-intensive sectors that are highly digitized across most dimensions

1 2

Capital-intensive sectors with the potential to further digitize their physical assets

3

Service sectors with long tail of small firms having room to digitize customer transactions

4

B2B sectors with the potential to digitally engage and interact with their customers

5

Labor-intensive sectors with the potential to provide digital tools to their workforce

Quasi-public and/or highly localized sectors that lag across most dimensions

6

Source: MIT/Sloan “How digital leaders outperform their peers in every industry”

Dig

ital ca

pab

ilit

y

Leadership capability

ConservativeRevenue: -10%

Profitability: +9%

Market value: +7%

Digital mastersRevenue: +9%

Profitability: +26%

Market value: +12%

BeginnerRevenue: -4%

Profitability: -11%

Market value: -7%

FashionistasRevenue: +6%

Profitability: -11%

Market value: -12%

+26%

+9%

+12%

Modern marketing

predictively drive revenue

Customer-centric

What if our marketing was a valuable way to help

customers move forward in their purchase journey?

A compelling customer experience. Efficient ROI. At scale.

Integrated

What if a single solution could help us optimize media targeting and content to

ensure that broadcast, digital, and social all work together?

Optimized

What if our marketing worked in automated

ways to help us achieve our goals?

Personalized

What if we could personalize each and every piece of content we share

with consumers?

• Receiving customer service

• Generating data to support personalized marketing

• Providing data and ideas for new offerings

• Sharing experience with others

During ownership

• Learning of product

• Researching product

• Receiving targeted marketing

• Receiving personalized offers

• Learning of services

• Purchasing product and services

Purchasing product and servicesDigital

hotspots

Discuss satisfaction

Purchase add-ons and services

Receive targeted marketing

Submit usage data

Use product

Purchase and subscribe

Learn of add-on products and services

Purchase product

Receive personalized offers

Try product

Visit store

Gather and evaluateinformation

Learn of new product

Decide to find solutionReceive

targeted marketing

Needs arise and change

Open to possibility

Decision to shop

Evaluate Shop Experience

Source: Microsoft Advertising/ IPSOS OTX’s the Consumer Decision Journey: Retail

Monetize every customer interaction

Unleash the power of data

Listen, automate and anticipate

Move from predictive to prescriptive

Make moments matter

Put the customer first

Build emotional connections

Deliver value at every step of the journey

Find new ways of working

Manage insight and content

Turn customers into collaborators

Harness the passion of employees

Make your time go further

customer first

Hindsight

Looking back is still as important as looking forward. If we don’t learn from the past we cannot improve and if we don’t know where our customers have been we can’t predict where they’re going

Insight

Democratization of data has increased ability to share information but… you still need ‘interpreters’ to identify the genuine insight

Foresight

The tools we now have make it more accessible and accurate to predict our customers future behaviour

Customer

SalesMarketing

Financial analysts

Tie activity to revenue objectives and drive performance through the demand funnel

Content marketing

Creates & amplifies written content to tell a relevant story through the buyer journey

Technical proficiency

Tech-savvy marketers that understand automation tools, SEO and web production

Digital destinations

Uses digital channels along with programmatic paid media to influence

Performance tracking

Evaluates performance against established goals using KPIs and single source of truth reporting

Local experiences

Promotes brands physically at a local level. Includes events, exec briefings, immersions & roundtable experiences

Data & analytics

Data experts that see trends and are always testing to optimize marketing tactics

Social engagement

Has changed how marketers interact with buyers making digital relationships important

Part scientific Part creative

marketing transformation

Connected marketing & sales platforms

Old world marketing tools

Long-term customer relationships & fans

‘One & done’ marketing

Field & HQ connected marketing system

Field vs. HQ marketing

360ᴏ customer data with connected insights

Disconnected customer data

High quality scored leads aligned to sales capacity

Low quality, high volume leads

Buyer driven purchase processSales driven purchase process

Buyer driven multi-channel journeys

Sales driven engagement within single channels

Dig

ital

Trad

itio

nal

Test and learn

Optimization

Marketing mix attribution

Standardised measurement

Performance

New platforms and tech that scale globally

Facilitate planning and collaboration

Self-service and automation

Tools & tech

Customer focused experiences

Data driven, privacy and GDPR compliant

Consistent campaign planning

Process

Modern marketeers

Commercially savvy

Growth mindset

Data and insight literate

People

Every ‘lead’ flows to any sales channel

Sellers unable to discriminate high quality from low quality leads

1 Marketing engagement = 1 LeadNo common lead quality or selection methodology

Corporate

Flagship Events

Paid Media

Global Ads

Microsoft.com

Field

Local Events

Demand Gen

Social

Marketing activitiesAcquiring new contacts

Microsoft Dynamics 365- Activation

Microsoft Azure- Applications

Microsoft 365- Collaboration

AccelerationTargeted demand generation

Account based marketing programs

Account based sales triggers

Marketing engagement index

Usage & fansRelationship marketing programs

In-product surfaces

Customer success

AcquisitionBroad demand generation

Global engagement programs

Web direct

Inside sales demand response

Partner lead flow

z

Usage & fans

Acquisition AccelerationGlobally scaled

customer acquisition

& engagement

engine for Microsoft

– driving business

growth & fans

Launch new

marketing measurementMarketing Engagement Index, New

GDC Dashboard, Event Reporting

Innovate with AI/MLMachine Learning Lead Scoring,

Artificial Intelligence, Sales Bots

Integrate industry marketingLaunch six new Industry GEPs in

Tier 0-3 markets

Enable new sales

channel connectionsDirect to Partner Lead Flow,

MS Store Integration

Focus on Key AccountsPilot Account Based Marketing,

Daily Recommender

Scale global coverageFull customer lifecycle,

All Solution Areas, Audiences,

43 markets, 30 languages

Artificial intelligence customer engagement & qualification

Machine learning driven lead scoring

Microsoft Store integration

Partner integration

Renewed marketing measurement

vNow

One Global Demand Center serving Microsoft

ROI Modelled on LTV and customer acquisition cost

Re-alignment of field roles and capabilities

Investments in account-based marketing and Relationship Marketing

v2.0

Centralised Centers of Excellence become a company-wide engine across Office, Azure and Windows

Standardised platform, dashboard, communication

Aligned investment from marketing to Sales Development at company level

Massive geo expansion

v1.5

Marketing Microsoft’s cloud businesses enabled us to think differently

A new vision and roadmap for “modern marketing”

But…

• Disconnected sales and marketing

• Separate campaign and product launches

v1.0

Relationship

marketing

Customer

success

Post sales nurture

Continued customer engagement

Web Direct

Inside Sales

Field Sales

Partner

Sales channels

Leads & Sales recommendations flow to the optimal sales channel

Machine learning & automated routing

ML Selected leads & sales recommendations

Account Based Marketing

Product Focused GEPs

Industry Focused GEPs

Other Nurture

Programmatic engagement

Always On Digital Nurture

Corporate

Flagship Events

Paid Media

Global Ads

Microsoft.com

Field

Local Events

Demand Gen

Social

Marketing activities

Acquiring new Contacts

Data Sensing, Intent Mapping, Programmatic Ecosystem

Anonymous & Personally Identifiable DataPowered by Data Management Platforms, Marketing Automation, CRM, Website Content Management, AI

Marketing and sales automation & analyticsAnalytics & Scoring | AL/ML Targeting | Connected Lead Flow | Dashboard & Insights

KPIs: • Customers Adds • Direct, IS Revenue• Known Leads • MLQMLs

Customer Purchase

KPIs: • Influenced Revenue • Account Engagement Index (WIP)

Engagement Programs

Individual

Account Based

Outcomes

New customers

Sales acceleration

Consumption & usage

Cross-sell / up-sell

Loyalty / fans

LTV

Relationship Marketing through marketing channels

Relationship Marketing through product

Customer Success

KPIs:• Renewals &

Churn Reduction

• Consumption & Usage

• Cross-Sell / Up-Sell

Usage & fansAcquisition

Acceleration

Field

Local Events

Demand Gen

Social

Corporate

Flagship Events

Paid Media

Global Ads

Microsoft.com

Customer adds /

purchase

Web direct(Future Online Store)

Physical store

Inside sales

Managed account sales

Partner

Account

based sales

triggers

A massively scalable, highly efficient acquisition and customer lifecycle engine for Microsoft

Managed account sales

Partner

One to ONE accounts

One to FEW accounts

One to MANY

accounts

An automated, repeatable,

scaled motion

Hyper targeted to a

single account

Targeted to sets

of accounts

Focused, efficient actions for sellers GDC marketing investments in managed accounts

Daily Recommender

04 | Enable Sellers to start a conversation

Provide new Contacts, Content, & Context to initiate discussions

Sales enablement

03 | Help Sellers prioritize when to focus on an account

Alert Sellers when accounts surge in interest

Scoring model

Global Demand Center

02 | Discover new contacts & drive digital engagement

Personalized Digital Engagement at scale (media, web, email, content)

Marketing automation

01 | Target Corporate Accounts

Select target groups of Accounts based on identifiable needs and priorities

1st & 3rd Party data

AI

We have more power at

our fingertips than entire

generations that came

before us.

What will you do with it?

AI

AIJanuary 2018

Lead volumes (MLQMLs)

Single touch attribution

Linear funnel conversion

Inside sales & direct focus

Multiple revenue views

Static marketing metrics

“Describe what happened”

Account & segment level

New metrics correlated to outcomes (Marketing Engagement Index)

Sales intelligence (AI/ML) prioritization

Multi-channel routing

Multi-touch attribution

Predictive outcome metrics

“Predict what will happen”

Detailed time-based journey metrics

Prescriptive engagements

Dynamic ROI and LTV optimization

Engagement pattern matching

“Suggest actions to drive an outcome”

ML driven scoring using real-time

outcomes to tweak the model so it is

always optimized on most recent data

using Sales Intelligence Platform

AI driven predictive (2017-2018)

Using experience and judgement

to determine what makes a good

quality lead (“A” + “B” = “C”)

Rule based approach (2015-2016)

Manually analyze historical data to

determine which behaviors and

characteristics are associated with

higher conversion rates

Data driven approach (2016-2017)

192% Higher average conversion to opportunity

Revenue growth compared to companies without

5X Larger deal sizes than non scored and nurtured leads

47% Higher close rates on scored leads

30%

Fit attributes are demographics

that show how close a lead

matches a specific customer profile

Lead scoring ranks

leads to determine their

readiness for a sales

conversation based on

demographics (fit) and

engagement (intent).

In Modern Marketing, marketers are lead developers, not just lead generators!

The benefits of lead scoring

Intent attributes are actions a

lead takes that shows interest

in a product Email opens

Webcasts

Company size

Events

Page views

Industry

Downloads

Registrations

Department

Email clicks

Link clicks

Job role

Source: Aberdeen

Metric

Leads &

engagement

New Known Leads

Marketing Engagement Index (MEI)

New Managed Account Contacts (#)

Managed Account Reach (%)

Highly Engaged Accounts (%)

Recommendations

ML Account Based Marketing Recommendations

GDC Enhanced Sales Recommendations

Machine Learning Qualified Marketing LeadsVolume – Count vs. Capacity Plan

Quality – % At or Above Quality Bar

Revenue &

customer adds

Azure Direct Revenue

Inside Sales Demand Response Booked Revenue

Incremental Azure Revenue

Marketing Influenced Revenue

Account Engagement Index can also be used to benchmark customer engagement patterns across sets of accounts

Area / Segment

Area, Segment

Marketing Account Engagement Index (MEI)

Seller actions

& insights

Account

engagement index

Account engagement

index Cross-account heatmap

Modern

Workplace

Business

Applications

Application &

InfraData & AI

Account 1 98% 15% 5% 20%

Account 2 21% 86% 27% 20%

Account 3 75% 15% 90% 98%

Account 4 98% 15% 5% 20%

Account 5 50% 75% 17% 20%

Account 6 16% 15% 5% 65%

Account 7 98% 15% 5% 20%

AVERAGE XX% XX% XX% XX%

WW

BENCHMARKXX% XX% XX% XX%

Business

impact correlation

Actions & Insights delivered through the ‘Daily Recommender’ based on an Account propensity model

7 new contacts engaged

in Offer content

High probability

of Azure interest

Leverage customized

content for follow-up

Customer XYZ

Account / Offer Specific

Account Engagement Index helps sellers understand the degree of engagement within their accounts by Solution Area / Workload

Customer XYZ

Modern Workplace

BusinessApps

Applications& Infra

Data & AI

Account

Over time, we are able to corollate the impact of highly engaged accounts related to revenue and business outcomes

Revenue/KPI Attainment

Acco

un

t En

gag

em

en

t

High

High

Low

= Account

Area / Segment

Area, Segment

Contacts

Average & total contacts per account

Reach

% Of accounts w/ any engagement by segment, industry, etc.

Highly engaged

% Of accounts w/ high engagement

Interactions

Average & total interactions per account

Multichannel Collaboration

Thank you.