THE RISE OF THE PLATFORM MARKETER: CONNECTED CRM IN … CRM_Rise o… · Content & Context Intent &...

THE RISE OF THE PLATFORM MARKETER: CONNECTED CRM IN A DIGITAL WORLD

© 2014 Merkle Inc. | Confidential 2

In 2011 we introduced the concept of the “Age of the Customer” and how we believed we were entering a new age of marketing

1950s+ Age of brand

1995+ Age of channel

2013+ Age of the customer

Direct-to-consumer business model transformation

Addressability At Scale Creation of national brands

National media and mass marketing

Internet and eCommerce

Social networks & digital media

Contenders we see


In 2012, we introduced the concept of The Connected Consumer and how we believed it would be the new battleground for competitive advantage

Social Print

DM & EM

Display

Search TV/Video

Mobile

Site

Product

LTV Segment

Demographics Life Events

Call center

Meetings


In 2013, we introduced the Connected CRM framework as a structural way to implement customer centric business strategies

Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF

Experience Delivery

Financial Management

Customer Strategy

Financial management informs customer strategy and experience delivery decisions as a closed loop process

These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences

Portfolio Strategy

Segment Strategy Program Strategy

Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation

Media Planning Channel Planning Targeting & Personalization

Measurement & Attribution Budget Allocation In

frast

ruct

ure

& Bu

sine

ss P

roce

ss

Leadership & Organization

What data, processes,

systems, tools and

technology will be necessary?

What outcomes

are we trying to

create and how do we organize to

enable them?


Wow, has a lot changed over the last few years

Facebook and Twitter rollout truly addressable platforms at massive scale

CRM audience on-boarding match rates driving even more scale with partners like LiveRamp and datalogix

Google launches audience based targeting and customization!

Arms race has pulled in Pinterest and Instagram with others following fast

http://www.adobe.com/�

http://www.salesforce.com/�

http://pinterest.com/�

http://www.aol.com/�

As a company rooted in direct, response and database

marketing, we dreamed of a day when we could target known

individuals in the digital world… well that day has come.


Introducing the addressable

audience platform


The emerging opportunity in Addressability At Scale (AAS) is the key driver of competitive advantage in the age of the customer

Addressability at scale (AAS) is defined as the

opportunity to create competitive advantage

through the ability to deliver targeted, personalized

experiences to consumers.

AAS is enabled through the application of data and analytics to the digital

audience platform marketplace that is now at

massive scale

AAS 1.0 Name & Address

AAS 4.0 Cookie & Device ID

1990 2014

AAS 3.0 Email Address

AAS 2.0 Phone #


Amidst all of this scale and automation, the addressability of channels and media is increasing every day

Addressability uses customer data (anonymous or identified) to increase the targetability and relevance of marketing impressions and experiences

The Addressability Spectrum

Anonymous Partially Identified Identified Identification:

Knowledge: Unknown Some Knowledge Well Known


Auto

mat

ion

Audience Platforms

Addressability is reaching new levels of sophistication and scale due to the rise of the Addressable Audience Platform

1st Party Data

Automation

Individual Level

Delivery

Audience Owners

CRM Database

3rd Party Data

An Audience Platform is a digital technology that enables automated, targeted, personalized experiences to individuals (known and anonymous) at scale utilizing first and/or third party data

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Each of these companies is working to extend the ability to reach their users off network which will result in absolutely massive scale

Audience Platform already at scale on

network

Soon we will see audience extension

off network at massive scale

But these will become closed networks forcing the advertiser to answer how to create a single customer view using first party identity management

Third Party Inventory (exchange, ad network, etc.)


The Audience Platform has revolutionized digital and paid social media in the last four years

Contextual Real-Time Bid (RTB) CRM Targeted RTB How many people visit site, and their

profile

Cookie & Third Party data on unknown

individuals Addition of data repository including all

media and CRM data

Targeting • Based on inferred match between

audience & publisher • Anonymous user behaviors • Retargeting

• Anonymous user behaviors tied to CRM data • 1st party data targeting (name and address)

Optimization • Publisher performance • Anonymous cookie data Performance by customer

• 1st & 3rd Party Cookie • Device ID • Known individual

Level of insight

Platforms & Format

• PC • Banners

• PC • Display & Video • Channel specific

• Cross Media/Cross Device • PC • Mobile • Tablet

Anonymous and Individual

CRM Data Driven

Anonymous Individual

Place Place Place

Digital & Social Media Evolution 2009 - 2013


But this is not just happening in media – search is evolving very quickly as well

Universal Platform Differentiated by Device Integrated Media and Site Targeting

How many people are searching and for what terminology

Increased options controlled by the

search engines for delivery Use of Remarketing programs in search

and display to customize

Targeting

Optimization

Level of insight

Formats

Location/Device/Time

Audience Driven

Location/Device/Time

Keyword Keyword Keyword

Search Evolution 2010 - 2013

• Based on exact keyword search behavior with not personalization

• Anonymous by device type and carrier • Geography, day of week and time

functions

• Audience profile data from prior site visitation • Unique experiences based on user profiles

• Match type and keyword • Extended match types • Device Targeting for Mobile • Location specific ads and costs

Performance by customer • Segment • Value • Intent

• Pure text only • Site Links • Video Ads • Image/Logo ads • Click to Call

• Video • Form Extensions • Product Price Ads • Maps/Location Extensions


Why does this matter?


How does addressability create business value?

Short term gains in marketing efficiency

Mid-term gains in growth and margin

Long term gains in competitive advantage and market share


For most organizations, the impact of effectively leveraging this platform is in the hundreds of millions of dollars

$39MM $104MM $201MM $452MM NPV of Revenue Impact

Year 1 Year 2 Year 3 Years 4+

Acquisition of new customers

Reduction in churn

Improvement in NPS Scores over Baseline*

$15MM $43MM $93MM $256MM

$24MM $61MM $109MM $196MM

+5 +25 +10 +5

• Use Connected data to understand/predict/model NPS results across subscriber base and target subscribers for Promoter maintenance or Detractor intervention strategies

• Roughly 1bp (~31k subs) reduction in Voluntary Churn YoY over next 5 years • Combine Customer service, Billing contacts with customer data to improve churn rates

• 1%-3% increase in customer acquisition over 5 years • Increased response/conversion from digital media efficiency by connecting Anonymous Data to

CRM data for better targeting, measurement and segmentation • Increased effectiveness of remarketing and personalization (offer/package) in Search, Display,

Site and Email


Today, most of the market is constrained in its ability to scale its addressable spend and make a significant impact

Adverse selection is a big problem in non-addressable media – “people I don’t want are the one’s I get to respond”

This results in lack of quality and scale of the remarketing pool

Inability to use addressability to engage high value leads in a relevant experience drives down conversion of those that are quality

As a result, marketers cannot scale budgets due to inefficiencies above in the funnel, thus, the “targeting dilemma”

Unknown High-value customer Low-value customer

Unqualified Leads & Waste

Customer Remarketing

Awareness

Consideration

Remarketing

Conversion


Impact of AAS 2.0

+400% Addressable Media Spend: +300% Cost Per Lead: -30-40% Targetable Re-Marketing Pool: +500%

Cost-Per-Conversion: -40% Average LTV per Customer: +60%

% Personalized Interactions +300%

Available Addressable Impressions:

Marketers taking advantage of AAS are “widening the pipe” and driving greater scale and effectiveness through the funnel

Unqualified Leads & Waste

Customer Remarketing

Audience 1 Auto

Property Multi-line

Audience 2 Audience 3

Addressability at Scale

Unknown High-value customer Low-value customer


A new kind of marketer


Introducing The Platform Marketer

The Platform Marketer wears many hats and embodies the collective competencies needed to successfully operate in this world of addressability at scale

• Marketers must evaluate their own competency level and decide how best to fill gaps internally and with external expertise

• In the highly digitized world of AAS, a new set of competencies must be attained by the marketer

• We call the personification of those collective skills The Platform Marketer

• While new processes, data, and technologies must be implemented (what we call Connected CRM), these digital platform competencies must first be addressed


The Platform Marketer™ embodies the collective competencies needed to successfully exploit addressability at scale

Identity Management

Audience Management

Consumer Privacy & Compliance

Media Optimization

Channel Optimization

Experience Design & Creation

Platforms Utilization

Measurement & Attribution

Marketing Technology

Platform Data

Platform Execution

Platform Enablers

There are 9 critical competencies that must be mastered


The Platform Marketer – The Audience Management Expert

The Platform Marketer has a data-driven view of its audience segments and actively manages strategies and tactics through this portfolio


The Platform Marketer – The Audience Platform Expert

Content & Context Intent & Behavior Anonymous Individual Identified Individual

Context Custom content

Intent Geo-location

Behavior 3rd party segments

The Platform Marketer is a master of the ever evolving Audience Platform targeting and optimization capabilities

Device ID 1st party cookie

Name & email

Probabilistic ID

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Twitter handle Cookie 3rd party

ID address Digital set top ID

Mailing address IB ID Pinterest ID

GooglePlus ID Device ID

70’s 80’s 90’s Today

12 Main Street Philadelphia, PA

Email Phone number

00’s

617-555-0728 12 Main Street Philadelphia, PA 617-555-0728


[email protected]

617-555-0728


[email protected]

#JohnnyDoe

011001000100110001 //asdohs.hhd.net 617-555-0728


[email protected]

#JohnnyDoe

011001000100110001

//asdohs.hhd.net

[email protected]

Pinterest: jdoe

JD’s iphone 011001000100110001

011001000100110001

//asdohsd.asiudhscns/html

The Platform Marketer – The Addressability Expert

The Platform Marketer knows he/she must maximize his addressable market through high coverage of consumer identifiers and knowledge in the database

This requires mastery of consumer addressability in the database and constant collaboration and leadership with technology

It also requires deep consumer insight and experience skills to design and implement the experiential “value exchange” that incents consumers to provide data (e.g, why should a identify on a site with their facebook log-in?)

Platform marketers bring addressable data skills that facilitate the exchange of identity and data for personalization and relevance.


The Platform Marketer – Programmatic Media Buyer

Programmatic Media Buyer: The Platform Marketer brings programmatic buying skills to the enterprise


The experience blueprint elaborates on the segment plan and provides a detailed view of the customer journey

MOVERS & SHAKERS

Nurtured

Experience

Personalization Enabler

Touch points Engagement Tactic

Offer, Motivation

Evaluate Decide Apply Familiarize Awareness Connect Journey Stage


The Platform Marketer – Media & Channel Optimization

Personalization is driven through an integrated, data driven skill set focused on the holistic consumer experience

Cross-Channel planning and decisioning is the “conductor” that sits on the channel specific applications allowing for a singular consumer view and experience execution

Real-time data and integration services allows data “currencies” to flow bi-directionally back forth from the Conductor to the end point execution apps

The net result being a singular, highly relevant consumer experience

Similarly, The Platform Marketer implements and manages a cross-channel personalization platform that creates a singular consumer experience

The Conductor – Cross Media Decisioning Site

Decisioning Media

Decisioning Search

Decisioning Call Center Decisioning

EM/DM Decisioning

$

Real Time Data and Integration Services

Targeting Currencies

The Platform Marketer


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The Platform Marketer – The Digital Marketing Stack Expert

Platform Marketers have strong expertise in state of the art and emerging marketing technology and how it drives business value


Audience Platforms

Wor

kflo

w

Channel Execution Media Execution

Marketing Database

Identity Management

Analytics

Integration

DMP Decision Management

DSP Search Ad Serving Site SFA/Contact Center

Business Rules Engine Personalization Engine Decisioning

Algorithms

Audience Management

RT Data Transfer Syndication

Connected Attribution Forecasting/Simulati

on Business Intelligence

Onboarding CDI/DDI Event Management

Customer 360° Preference Center Event Stream

Cam

paig

n M

anag

emen

t C

onte

nt

Man

agem

ent

MR

M

Messaging Mobile

Web Services APIs Tag

Management

Wor

kflo

w

Channel Execution Media Execution

Marketing Database

Identity Management

Analytics

Integration

DMP Decision Management

Audience Platforms

Media specific platforms that manage the execution and optimization of consumer experiences across media including

search, digital media, and messaging

Channel specific platforms that manage the execution and optimization of consumer experiences across media including site,

app, POS, and contact center

Enables real-time interaction between the DMP and decision management platforms and media/channel execution

The orchestration of marketing tactics via algorithms and business rules across interactive media and

channels

Enables creation and management of audiences for real-time

marketing and syndication to first and third party audience platforms

Transforms data into actionable insights to inform relevant

marketing executions and enable measurement strategies

The management and association of identity attributes across all channels and media. The creation of a longitudinal view of the experience a consumer has with a brand (the consumer event stream)

The core of the marketing environment including the customer data warehouse, preference management, and online/offline event management.

Aut

omat

es th

e m

anag

emen

t of c

onte

nt a

nd th

e m

arke

ting

busi

ness

pr

oces

s ac

ross

the

orga

niza

tion

and

partn

ers

All of these enabling capabilities are managed by the design and integration of the technology stack


The Platform Marketer – Measurement & Attribution

3% 14% 3% 5% 5% 5% 15% 5% 5% 40%

100%

Day 8-30 Day 1-7 Day 0-1

New Customer

Actual experience

Direct or Rules Based

Modeled

$

TV view Direct mail sent Alt Media Display view Email Website visit Paid search click

Mass and Offline Digital @

@

@

@

@ 5%

Credit over applied to bottom of funnel touches. Other touches often ‘invisible’

Creates flawed financial view of performance

Model-adjusted interaction

Most accurate and actionable

Leverages a fractional approach to attribution and quantify the incremental impact of each marketing activity


The Platform Marketer - Consumer Privacy and Compliance

Federal Regulators

State Regulator

s

Global Regulators

Certifications Organizations

Industry Trade

Associations C

onsu

mer

Plat

form

Mar

kete

r

Standards Organizations

Privacy Advocates

Privacy Enforcement & Protection Unit

Associazione Italiana Direct Marketing

Global Legislative

Stakeholders

U.S. Privacy Laws

SB 27 California Civil Code : Shine

the Light

U.S. Legislative Stakeholders

Senate Committee on Commerce, Science &

Transportation

Global Industry Trade Associations

CA Readers Privacy Act

CA SB 1386


Implementing customer centric business strategy in

an addressable world


If the marketing database and addressability are the new key drivers of competitive advantage, it will become increasingly difficult to understand what your competitors are doing

The specific data assets, technology, analytics, business and optimization process that drive customized experience cannot be easily observed or copied

Brand, media and channel can be observed by the marketer


Connected CRM is the framework through which we aid our clients in the organizational transformation to required to exploit AAS

Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF

Experience Delivery


Customer Strategy

Financial management informs customer strategy and experience delivery decisions as a closed loop process

These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences

Portfolio Strategy Segment Strategy Program Strategy

Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation

Media Planning Channel Planning Targeting & Personalization

Measurement & Attribution Budget Allocation In

frast

ruct

ure

& B

usin

ess P

roce

ss

Leadership & O

rganization

What data, processes,

systems, tools and

technology will be

necessary?

What outcomes

are we trying to

create and how do we organize to

enable them?

The Connected CRM Framework (CCF)


It’s not just about capabilities, we need to develop capabilities and define the proper operation model

Operating Model

Single campaign, simple data, little offer and customer

customization

Basic multi-channel, model integration, and campaign

automation

Contact Optimization, multi-touch campaigns, integrated measurement platform

Customer Value Optimization fully integrated programs & campaigns

Over-invested (poor return on capital)

Under-invested (poor return on management bandwidth)

Cap

abili

ty M

atur

ity

Ideal investment zone

Bottom-up path builds infrastructure and seeks to leverage incremental gains to expand effort and drive organizational

change (requires permission)

Top-down path compels Organizational change and rapidly

enables infrastructure for efficiency and effectiveness

(requires sponsorship) [Vice President]

[CMO]

[C-suite]

[CEO]

[Key decision maker]

Infrastructure focus, basic capabilities

[Director]

Level 3

Level 4

Level 5

Level 2

Level 1


Phased Evolution: Leveraging a Customer Centric Business Strategy

Fully Integrated Experience

Offline Channel

Integration

Digital Channels

Integration

Mass Media Integration

Digital Media Integration

Email and DM

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5


We will also need to get the organization aligned

The new “adaptive” organizational approach that integrates the core competencies needed for AAS 4.0

Measurement & Optimization Audience Mgmt Experience Strategy & Planning Technology

Portfolio Management

Segment Leadership

Experience Design & Planning

Consumer Preference & Governance

Product Management

Brand Leadership

Addressability Optimization

Audience Platforms

Innovation and Testing


Decision Science

Marketing Stack

Consumer Data

1st Party Platform Leadership 3rd Party Platform Leadership

Digital Attribution Personalization Portfolio Strategy


Segment Leadership Machine Learning Consumer Advocacy

Identity Management

Consumer Data Governance

Programmatic Media Mgmt

CIO CMO CCO COO CFO CEO


Implementation will require a highly disciplined and structured approach

Connected CRM is about re-aligning how the business operates both internally and with its partners.

Why change

What’s changing

Make changes

A B

C

Use Case Development (Outside-In)

Assessment (Inside-out)

Phase 0 Business Case Benefits Realization

Blueprint & Roadmap

Change Integration

Executive Sponsorship and Governance Team


Key Takeaways

The audience platforms have become highly addressable and are reaching massive scale

Marketers seeking growth and competitive advantage will now be investing aggressively on these platforms moving huge amounts of budgets from mass media and traditional direct marketing

We are already seeing marketers moving budget at scale and seeing 20-40% lift in yield – and we are just getting started

But the challenge is that today’s marketer does not have the skills and tools to really go beyond the haphazard “bag of tactics” and gimmicks to really leverage the opportunity

Identity Management

Audience Management

Consumer Privacy & Compliance

Media Optimization

Channel Optimization

Experience Design & Creation

Platforms Utilization


Marketing Technology

Platform Data

Platform Execution

Platform Enablers


Thank You and enjoy the Summit!

David Williams

Chairman & CEO [email protected]

443-542-4175

THE RISE OF THE PLATFORM MARKETER: CONNECTED CRM IN … CRM_Rise o… · Content & Context Intent &...

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Transcript of THE RISE OF THE PLATFORM MARKETER: CONNECTED CRM IN … CRM_Rise o… · Content & Context Intent &...