Take outs from DMA 2013Chicago October 12-16Kathleen Peeters

Mobile

Location

Visualization

Analytics

Loyalty

Innovation The changed role of Marketing

Data

The NEW customerverywhere

commerceE

Internet Empowered

Tech Savvy

Time Starved

Information Rich

NEW CUSTOMERS

Shopper needs = new rules for retail

ConvenienceMore than just about time

NEW CUSTOMERS

Amazon UK

NEW CUSTOMERS

Shopper needs = new rules for retail

LoyaltyDoing the right thing by

your customer

+ control

ConvenienceMore than just about time

ExperienceCreating emotional

resonance

ValueSharing value with your

shoppers:

Price, Service, Quality

6

NEW CUSTOMERS

Zappos

Unlimited free shipping/return policy

7

NEW CUSTOMERS

In search of assuranceMore quality & transparency

Shopper needs = new rules for retail

LoyaltyDoing the right thing by

your customer

+ control

ConvenienceMore than just about time

ExperienceCreating emotional

resonance

ValueSharing value with your

shoppers:

Price, Service, Quality

NEW CUSTOMERS

CONVENIENCE, LOYALTY, EXPERIENCE, VALUE

LO

YA

LTY

CO

NV

EN

IEN

CE

EX

PE

RIE

NC

EV

AL

UE

RIGHT WOW

NOW SMART

Source: Kantar Retail Analysis

NEW CUSTOMERS EXPECTATIONS

Time

Cu

sto

mer

Val

ue

Interest Engage Grow &Delight

Monitor & Retain

Data Integration

AnalyticsOmni

ChannelMeasure

Guest Path

FollowLHW on FB

LikeJoin Now

LHW on Twitter

NEW CUSTOMERS

Voice of Consumer

Challenges for companies

New focus on retention

& churn reduction

Provide more

personalization

Learn to engage

customers to opt-in

11

Achieve frictionless,

high value customer engagement

cross channel

NEW CUSTOMERS

2 140

Voice of Consumer

Learnings

Which has more impact on retention and repeat purchases:

Customer Satisfaction or Customer Engagement/Relationship?

Engagement/Relationship strength has

12 times more influence on retention and

repeat purchases than satisfaction

Satisfaction is a minimum expectation

12

NEW CUSTOMERS

Which is more significant driver of word of mouth recommendations:

Customer Satisfaction or Customer Engagement/Relationship?

Engagement/Relationship strength has

18 times more influence on word of mouth

recommendations than satisfaction

This has profound implications for

re-allocating greater budget for

Retention/Relationship building

13

Voice of Consumer

Learnings

NEW CUSTOMERS

Terminology

From CLOSING THE DEAL…

…to BEGINNING A DEAL

NEW CUSTOMERS

15

NEW CUSTOMERS

DATA

Everybody

talks about

BIG DATAbut who cares!

It’s not about big data…

It is about making data

ACTIONABLE

BIG DATA

ACTIONABLE

…People & Personality

is the HOW

…is about

…is the WHAT…

SCIENCE…

DATA

“There is no better place to start than data, since it is the

fuel needed to make insightful decisions that can drive your

business forward.”

DWH

CRM

Digital

Mobile

Social

Other

DataQuality

Data Integration

Data Model

Data Governance

D

A

T

A

S

O

U

R

C

E

S

Where do we begin?

DATA

DATA

Challenges?

We think not…

Opportunity #1

Opportunity #2 Opportunity #3

Ability to collect & immediately

access granular data

[Addressing Latency & Tag

Management]

Pre-processing data for

marketing and analytics

[Adding Business

Context]

Leveraging advanced analytics

& marketing automation

[Relevance & personalization]

DATA

21

DATA DRIVENmarketing u.s.

8,7%of total GDP

DATA

Data Utilization Accelerates

Programmatic display, omnichannel demand,

drive digital data use cases

Databases become more sophisticated

repositories of online and offline data

Technologies to activate the data mature

along with the talent to use it

2 140

DATA

DATA

BIGDATA

STAYS

Visualization

NEW CUSTOMERS

DATA

VISUALIZATION

http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/

VISUALIZATION

27https://pbs.twimg.com/media/Blt0vL3CQAAKovO.jpg:large

VISUALIZATION

www.guns.periscopic.com28

VISUALIZATION

www.Vimeo.com/62289901

29

VISUALIZATION

WHY is Advanced Data Visualization Critical?

Firms need to use data visualization because

information workers:

Cannot see a pattern without data visualization

Cannot fit all of the necessary data

points onto a single screen

Cannot effectively show deep and broad

data sets on a single screen

Need for proactive alerts in business

Need the data to be presented in a very

clear way, or there will be no decisions made

2 140

VISUALIZATION

VISUALIZATION

The NEW Consumer

Data Visualization

verywhere

commerceE

verywhere

commerce

From Purchase Funnel…

E

…To PURCHASE FISH

COMPLEX WORLD OF FEEDBACK INVOLVING

Research

Multi-channel contact

Testing of opinion with

other consumers

Purchase

verywhere

commerceE

35

PURCHASE FISH

verywhere

commerceE

Consequence

STORES NEED TO

IN TIME & SPACE

DISAGGREGATION

verywhere

commerceE

2 140

The CLEV modelverywhere

commerceE

The NEW Consumer

Data Visualization

Mobile

verywhere

commerceE

MOBILE

39

MOBILE

40

MOBILE

41

SECOND SCREEN

TABLET ADOPTION

combines with

Smart ‘Connected’

TV’S and

GAME CONSOLES

MOBILE

Of smartphone shoppers

use mobile device to help

them shop in store

Sexy little numbers…

Of shoppers prefer

to reference smartphone

over asking shop assistant

84%

73%

MOBILE

Sexy little numbers…

Of people keep mobile

with them day and night at

arms length

Highest penetration of

smartphone vs. mobile

devices in Spain74%

90%

MOBILE

Sexy little numbers…

+ 68%M-COMMERCE

44

MOBILEADVERTISING

x 2year over year

+++SOCIAL

INTERACTIONS ON MOBILE

MOBILE

Path of purchase

SYNCHRONIZE

VAPORIZE

REORGANIZE

Create mobile service or multiple touchpoints

Reach at moments in time and place, immediate need and action

Activate purchase from any step in path to purchase

2 140

The NEW Consumer

Data Visualization

Mobile

Location

verywhere

commerceE

INTERACTION BETWEEN

BASED INFORMATION

SMARTPHONES

LOCATION

LOCATION

LOCATION

LOCATION

VS .

in 2011

of US cellphone users use mobile

location at least weekly

Is the new cookie!

In 2015 sales via

social channels predicted

$5 billion

http://www.youtube.com/watch?v=c6ATOgEcR1U

LOCATION

Local – Drive Opportunity96% Smartphone users who have researched

a product or service on their phones

94% Smartphone users who have

searched for local information

90% Smartphone users who acted

within 24 hours

70% Smartphone users who called

businesses after searching

66% Smartphone users who visited

stores in personOPEN

LOCATION

Click through rate by proximity

to a business destination

CTR

Increase

Miles

LOCATION

Real question:

Now that we know where you are,

which media will we use to reach you?

Placing a digital barrier around certain locations

enabling action when user is in a specific spot

visit a location after

receiving alert

Geofencing

made purchase

(50% unplanned)

LOCATION

LOCATION

54

iBeacon > NFC

LOCATION

FORMS OF EXCHANGE, MEDIA & COMMERCE

For Marketers, this means

OPPORTUNITY

SO LO MO

2 140

The NEW Consumer

Data Visualization

Mobile

56

Location

verywhere

commerceE

57

Even death becomes social…

SOCIAL DATA

EVERYWHERE

SOCIAL DATA

EVERYWHERE

Dynamic

Hard to decipher signals from noise

Difficult to measure ROI

Unstructured

SOCIAL DATA

EVERYWHERE

Sources

Social conversations

Social actions (brand specific)

Social graph (relationships between people, with brands)

59

SOCIAL DATA

EVERYWHERE

Why?

Determining customer interests (has shelf-life = relevance)

Detecting in-market signals (intent)

Identifying relevant influencers• highly connecter=reach

• relevant content

• impact via high engagement

2 140

SOCIAL DATA

EVERYWHERE

Turning insight

into action

61

The NEW Consumer

Data Visualization

Location

Loyaltyverywhere

commerceE

Mobile

LOYALTY

2 140

From points to engagement, loyalty programs begin

to add new incentives (currencies) – whether social

causes, health or lifestyle rewards

Loyalty goes mobile, so you can take it with you –

carry it or wear it!

THE QUESTION:

WHEN DOES LOYALTY START?

Starts at first INTERACTION, not transaction:

this changes how to reward behavior

The continuing evolution of

The NEW Consumer

Dat

aVisualization

Loyalty

Location

verywhere

commerceE

Mobile

LOYALTY

2 140

The king of relationships

Chief Story Officer

of businesses increasing content

marketing budgets

Mobile content marketing strategies will lead the

way in-store to see the ROI

Director of Content becomes a Marketing Job

60% of corporations are doing content marketing –

they will finally define it in 2014

The NEW Consumer

Data

Mobile

Loyalty

Location

Analytics

Visualization

verywhere

commerceE

Include social data

ANALYTICS

2 140

Need to link advanced analytics & web

and digital analytics

ANALYTICS

Data

Mobile

Loyalty

Location

Visualization

Analytics

The NEW Consumer

verywhere

commerceE

MARKETING OPERATIONS MANAGEMENT (MOM)

DefinitionIs a version of end to end marketing

process optimization, from planning and

budgeting, through marketing asset management,

to global marketing execution and analysis.

Is the alignment of people, process and

technology to support marketing activities and

improve marketing effectiveness.

70

MARKETING OPERATIONS MANAGEMENT (MOM)

MARKETING OPERATIONS MANAGEMENT (MOM)

72

MARKETING OPERATIONS MANAGEMENT (MOM)

Trend

THE RISE OF

MARKETING

2 140

MARKETING OPERATIONS MANAGEMENT (MOM)

Driven by enterprise business marketing,

not tactical marketing

74

Trend

OMNICHANNEL

CUSTOMERENGAGEMENT

MARKETING OPERATIONS MANAGEMENT (MOM)

MARKETING OPERATIONS MANAGEMENT (MOM)

Cycle times shrink

Marketer Expectation:

“I need to respond/react faster”

Reality:

Campaign and interaction cycle times from planning

to execution continue to shrink – pressuring

suppliers to be more agile – from development to

delivery

Consumer expectation:

“I want it NOW”

2 140

MARKETING OPERATIONS MANAGEMENT (MOM)

Turning insight into action

MARKETING OPERATIONS MANAGEMENT (MOM)

78

Data

Mobile

Location

Visualization

Analytics

The NEW Consumer

Loyalty

Innovation

verywhere

commerceE

INNOVATION

INNOVATION

PILLAR CULTURE PILLAR TEAM

Everyone needs a coach.

Innovation that happens from top

down is orderly but dumb.

Innovation that happens from

bottom up is chaotic and smart.

Innovation ≠ Olympics

Culture of trying & failing

20% of kayak

e-mails = tests

INNOVATION

INNOVATION

Data

Mobile

Location

Visualization

Analytics

The NEW Consumer

Loyalty

Innovation

verywhere

commerceE

The changed role of Marketing

Things real people don’t say

Things

real people

don’t say

about advertising…

THE CHANGED ROLE OF MARKETING

THE CHANGED ROLE OF MARKETING

“ There’s never been a more

exciting time to be in

marketing because change

will continue, no one is going

to be bored”

Terry Jones

Change agents say…

THE CHANGED ROLE OF MARKETING

“ We in marketing need to

make the rest of the

organisation uncomfortable”

98

Change agents say…

THE CHANGED ROLE OF MARKETING

“ If you don’t like change,

you’re going to like

irrelevance even less”

Change agents say…

THE CHANGED ROLE OF MARKETING

larger purchaser of technology

than IT, but not technologist role

chief story teller

CMO

THE CHANGED ROLE OF MARKETING

Fix what they don’t like

Have conversations with customers to

make them more successful

Listen to the customers!

Keep your eyes on the ball!

Only 1 out of 5 companies know

who their core customers are

2 140

1

2

Mobile

Location

Visualization

Analytics

Loyalty

Innovation The changed role of Marketing

Data

The NEW customerverywhere

commerceE

THANK YOU

kathleen.peeters@bisnode.com

Marketing and Communication Directorwww.bisnode.be | www.bisnode.com

@kathleenonthego

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