#RampUp17: Lessons From Marketing Leaders

DIGITAL MARKETING:Lessons from marketing leaders

Laura Beaudin

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 2CHI 170302-111-R1T-79274-Ram ... F 16_9

VISION / STRATEGY ALIGNED WITH THE BUSINESS

MEASUREMENT – REACH & IMPACT, DATA, ANALYTICS, TECH AND TOOLS

OPERATING MODEL – TALENT, TEAMING, DECISION RIGHTS

CLEAR BRAND AND VALUE PROPOSITION

CULTURE OF EXPERIMENTATION / TEST & LEARN

Our POV: The fundamentals of marketing haven’t actually changed…

Customerinsights and

priorities“WHO”

Channelsand

conversations“WHERE”

Content and contact

strategy“WHAT” AND “WHEN”

Reach and

impact goals“WHY”


…but the way in which marketing works couldn’t be more different

FROM TO

Real-time “newsroom” model

Rapid-fire, autonomous decision-making

Continuous experimentation culture

1:1 conversations

Long lead-times

Collaborative decisions

“Big bet” culture

Mass-market campaigns

Pay for performancePay for exposure

3 seconds30 seconds


In this “brave new world”, we have identified what marketing leaders do differently

Market share

>10%>15%

Revenue

# Respondents

Laggards

Leaders

AND IDENTIFIED LEADERS BY INCREASED REVENUE AND SHARE

WE SURVEYED 487 COMPANIES ACROSS INDUSTRY VERTICALS…


What leaders do is striking

Putcustomer

first

1

Test and

learn and test again

43

Work smart, fast

andtogether

5

Embrace mobile

2

Own digital

destiny


Lesson 1: Put customer first

• Invest in customer insights

• Align marketing strategies to customer priorities

•Build journey maps

•Use predictive modeling to inform targeting

• Invest in priority customers

1

Putcustomer

first

more likely to align their marketing strategy with

customer priorities

more likely to have talent focused on customer feedback

and journey maps

2.8x

3.6xLEADERS ARE…


Leaders are 1.5X more likely to map out the customer end-to-end experience

Bank CoCUSTOMER EPISODE REDESIGN

RESULTSAPPROACH

$30M savings

20% increase in NPS

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 47BOS 160719-TPG Digital PoV vSHARED

Existing analytics and customer feedback were used to prioritize journeys with high frequency and impact

Fre

quency o

f use

Emotional importance

Viewingbalance

(dashboard)

Viewingactivity

Downloadstatements

Onlinebill pay

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent 50BOS 160719-TPG Digital PoV vSHARED

Each priority episode redesigned to increase customer delight and infuse digital capabilities

Across the journey portfolio – led by executive team

Catalogue journeys and understand how each impacts

NPS

Prioritize investments across journeys

Determine “must win battles” – where to differentiate

or close gaps

1 2 3

PORTFOLIO OF CUSTOMER JOURNEYS

PRIORITY PRIORITY PRIORITY PRIORITY

Within a prioritized journey – led by a dedicated “Journey Owner”

CustomersEmployees

Profit/cost

Reimagine journey and drive fast-cycle,

customer led iteration

Drive to outcomes through “metrics that matter”

journey analytics (cross-channel) Operational metrics journey NPS Etc.

Balance competing priorities


Lesson 2: Embrace mobile

•Use “math” and “magic” to create compelling mobile campaigns

•Grow mobile spend in line with customer time spent

• Tie measurement to online and offline sales

• Integrate mobile into omnichannel strategy

2

Embrace mobile

Leaders are

2.5xMore likely to

prioritize mobile

today

…and they spend 2x

less on print and

promotional ads


Mobile can deliver the right message to the right customer at the right moment

Casual Dining Co.MOBILE TARGETING TO DRIVE VISITS

Majority of web traffic from mobile

Most web visits are pre-dinner

More likely to visit if nearby

TARGETED OFFERS RESULTSCUSTOMER INSIGHTS

31%higher likelihood to visit a

restaurant on the day an ad was seen

Roll out ad during dinner

decision-making

timeframe

Target customers

within a 10 mile radius of a restaurant


Lesson 3: Own your digital destiny

•Hire and train digital experts within marketing org

• Invest in tools and tech to fully unleash talent

•Quickly integrate new tools

•Employ digital prototypes, design and learning “hubs”

3

Own digital

destiny

2.7xmore likely to hire the right talent with digital expertise

3.0xmore likely to use

programmatic tools to optimize performance

2.4xmore likely to use new platforms and tools


Lesson 4: Test and learn and test again

•Create culture of continuous improvement

•Use a suite of metrics, including CLV and ROI

•Use optimization technology

•Maintain budget for testing

4

2.7Xmore likely to use test and learn to

optimize campaigns

Test and learn

and test

again

Leaders are…

The test and learn cycle covers from objectives to design to roll-out:

Decide test objectives & attributes

Solicit input

Executetest

Validate results vs.

expectations

Report on

insights

Roll out winningdesigns

Design test &

controls

Test & Learn

virtuous cycle


To create culture of test & learn, leaders embed analytics talent in org…

Source: Bain Marketing Survey (N=487, Leaders n=75 and Laggards n=34)

20% OF LAGGARDS DON’T EMPLOY ANALYTICS TALENT

OR KEEP IT OUTSIDE OF MARKETING

64% OF LEADERS EMBED THEIR ANALYTICS TALENT

WITHIN MARKETINGLEADERS ARE

2.5XMORE LIKELY TO HAVE THE RIGHT TALENT FOR MARKETING ANALYTICS

AND TESTINGLEADERS PLAN TO INSOURCE

MARKETING ANALYTICS TALENT MORE OVER NEXT 3 YRS; LAGGARDS PLAN TO OUTSOURCE


Source: Bain Marketing Survey (N=487, Leaders n=75 and Laggards n=34)

…and use a suite of short and long-term metrics to measure results

What metrics does your company use to determine how effective your company's marketing is?

LEADERS LAGGARDS

ROI

CTR

CAC

CLV


Cable Co increased customer engagement and sales online by targeting & testing messages, offers, design

• Campaign click-through rates >5x greater than historicals

• 30-40% sales conversion improvement

• Generated $600M incremental revenue from tests

• Trained client team to develop Test & Learn Center of Excellence

Cable Co

Half of Cable Co customers visited website, but vast majority transacted in other channels

Cable Co did not have a thorough understanding of customer online behaviors, needs or preferences

Analyzed online & offline behaviors, experiences and demographics

Leveraged Test & Learn to identify best messages,

offers, merchandising, site design, etc. to drive online engagement and purchasing

Developed actionable targeting strategy by identifying customer

behaviors that are strongly correlated with upgrading online


Lesson 5: Work smart, fast, and together

•Clearly define roles and decision-makers

• Empower employees to make decisions

• Streamline approvals

•Work across functions in agile sprints

•Communicate often inside & outside marketing

5

Work smart,

fast andtogether

Employees empowered

to make decisions

Budgets have built-in

flexibility to adjust to changes

Disciplined decision

processes in place

(3.3X) (2.5X) (1.9X)

Leaders are

2.5Xmore likely to have the right

talent in the right place and…

In MarketingIn another function

Insourc

ed

Outs

ourc

ed

CoreCapability

Talent placement

Tale

nt

mod

el


Putting it all together –Leadership Marketing playbook

Put customer

first

1

Test and learn

and test again

43

Work smart, fast andtogether

5

Embrace mobile

2

Own digital

destiny

• Invest in customer insights

• Align marketing strategies to customer priorities

• Build journey maps

• Use predictive modeling to inform targeting

• Invest in priority customers

• Use “math” and “magic” to create compelling mobile campaigns

• Grow mobile spend in line with customer time spent

• Tie measurement to online and offline sales

• Create culture of continuous improvement

• Use a suite of metrics, including CLV to measure marketing results

• Use optimization technology

• Maintain budget for testing

• Hire and train digital experts within marketing org

• Invest in tools and tech to fully unleash talent

• Quickly integrate new tools

• Employ digital prototypes, design and learning “hubs”

• Clearly define roles and decision-makers

• Empower employees to make decisions

• Streamline approvals

• Work across functions in agile sprints

• Communicate often inside & outside marketing


How you might get started…

Assemble cross-

functional, agile team

Capture learnings

and repeat

• Marketing Analytics, Digital, Creative, etc.

• New member contact strategy (vs. one-size fits all)

• Dynamic paths based on demos, first product purchased, interests, needs

• Email

• Digital display (program-matic)

• Mobile app

• Online conversion

• Cross-sell

• NPS

• “Champion” strategies

• Data gaps

• Capabilities needed

• Etc.

Measure impact and optimize

Engage through digital

channels

Leveraging data assets,

develop personalized contact paths

Align on customer target &

hypothesis for growth

Define hypothesis to test

Agree to take action and start the journey

Begin here

Go deep in areas of opportunity

#RampUp17: Lessons From Marketing Leaders

Marketing

Transcript of #RampUp17: Lessons From Marketing Leaders