Marketing, Technology, and the Empowered Customer

Marketing, Technology,
and the Empowered Customer

Jay Henderson
Strategy Director, Cross-Channel Marketing
IBM Enterprise Marketing Management Group
@jay_henderson

#CRMSummit2012 @jay_henderson © 2012 IBM Corporation

But first, some introductions…

2 #CRMSummit2012 @jay_henderson © 2012 IBM Corporation

Generation C -
Customer are connected and in control

4 in 10 70% of online
Smartphone consumers
users search for trust peer
an item in a recommendations
store

77% of B2B 140 million+
buyers check active Twitter
with peers users each month
before buying


How Generation C behaves

Online

Email

Mobile

Call center

Customers and Stores
Prospects
Kiosk, ATM

Point of sale

Postal mail


What Generation C expects

Online
One person
behind all the
Email
channels, guiding
the dialogue
Mobile and relationship

Call center

Customers and Stores
Prospects
Kiosk, ATM
Marketer
Point of sale

Postal mail


What Generation C often experiences
Marketing
agenda data
Online strategy tech

agenda data
Email strategy tech

agenda data
Mobile strategy tech

agenda data
Call center strategy tech

agenda data

Customers and Stores strategy tech
Prospects agenda data
Kiosk, ATM
strategy tech

agenda data
Point of sale strategy tech

agenda data
Postal mail strategy tech

6

But…you know all of this already…

How
do I get
there?


Succeeding with Generation C means...

Marketing so good it feels like a service…
…and service so good it’s marketing


Better marketing....
....requires a holistic approach

1. Customer centricity beyond marketing

2. A long term plan for a system of engagement

3. The right marketing culture


Marketing must understand and influence
the complete customer experience
Awareness Demand Generation Good Marketing
Consideration
Preference
is Service
Prospects Transact

Energize
Customers
Delighted Customer Customer
Fans Experience
Broadcasters
Quality
Consistency
Convenience
Good Service
is Marketing


High-performance marketers
champion the customer experience

25%
Marketing at
outperforming
20%
companies is nearly
15%
3X more likely to
10% proactively lead
5% customer experience
0% across all channels
Outperformers Rest of population


Own the operational process to influence
social conversations
Only 22%
Currently run social tactics
as part of integrated
campaigns.

79%
Run social marketing in
silos, discretely and on
an ad hoc basis.

51%
Of marketers don’t use social
media data to inform decision
about marketing offers and
messages.

Share customer information with other parts
of the business

Marketing must move beyond its
silo and focus on business results
Buy Market Marketing with merchandising
Marketing with on and off-line sales
Service Sell Marketing with customer service
Marketing with the supply chain
Marketing with IT


High performing marketers are connected
Marketing’s influence

Creates and manages one-to-one 72%
marketing across all channels 59%

Serves marketing messages during a 62%
purchase 52% High-performance
organizations
Serves marketing offers and
53% leverage good
customer care messages during marketing across
40%
service and support interactions
many functions
Provides input into supply networks 45%
based on consumer demand 40%

Outperformers Rest of population


Beyond the boundaries of the
enterprise with the network effect

Share customer
information with
partners, agencies and
customer communities


Customer centricity beyond marketing

 Understand and influence the complete customer experience

 Own the operational process to influence social conversations

 Share customer information with other parts of the business

–for retailers: leverage consolidation between
merchandising and marketing

 Share customer information with partners, agencies
and customer communities


What is a system of engagement?

Analyze Decide
on the best
to indentify opportunities
action, offer, content
and predict outcomes
and/or channel
Collect
Collect
data that augments Deliver
each customer profile
data that augments relevant
each customer profile pricing, engaging
messages, and capture
reactions
Manage
marketing processes and
measure results


You can’t get there with this…
SMS
Marketing Email Service
Provider Files Web Analytics
Files Provider
Files
Files
Website
Predictive
Behavioral
Analytics
Targeting

Local
Marketing
Files Customer Search
Database Marketing
Dashboard
Files
Marketing
Lead
Operations Customer
Management Predictive
Mgmt Insight Tool
Marketing Analytics
Finance Mgmt
Digital Asset
Call Mgmt
Center/Inbound
Decisioning


Marketers agree that an integrated
marketing suite is a key part of the solution

85%need an integrated
that they
agree
marketing suite.

Andthis needs to be
think that
71%
across all channels –
paid, earned, owned.

Butexisting systems are
Believe
59%
too disparate to integrate
across channels.
Source: The State of Marketing 2012 IBM’s Global Survey of Marketers
Base: Total Sample (n=362)

IBM (and other large vendors) have
embraced the idea of the EMM suite

A marketing technology category that
supports the end-to-end marketing
function across all marketing disciplines


EMM suites will simplify creating your
system of engagement

• Not just any suite but
best-of-breed suites
(modular)
• You don’t have to buy
everything from one
vendor (shhh…)
• Balance practicality with
definition of a suite
• Balance business agility
with suite integration


Develop a plan for….
a system of engagement

 Start with key pain points and work down the list Systems of
engagement
 Integrate digital behavior with traditional data sources
ensure relevant
and positive
 Scale and support millions of relevant offers
customer
 Consolidate silos and introduce standards-based experiences
across all touch
suites and hybrid suites
points that are
aligned with
 Introduce data syndication standards inside and
corporate
outside the organization character


Balance analytics and creative talents

+
Analytics Creative

Mix together the art of marketing and
the discipline of science…


Work with IT not around IT

Ownership and flexibility:
 IT IT really should own solution architecture, but…
– IT needs to earn credibility with marketing (know the
business needs)
– IT needs to be sensitive to the need for significant change
 IT’s choice:
Be 20% flexible and Be 100% standards-
influence 100% of driven/inflexible and
marketing technology OR influence 50% of marketing
design technology design


High performing marketers work better
with IT
Q. How well does marketing collaborate with IT?

Overall, marketing and IT work well together.
Marketing and IT at high-performing
companies, however, work more effectively .

High Performers Lower Performers

Base: Total Sample (n=362)


Break down the marketing silos
(and create bridges)

Traditional Digital
Marketing Marketing



Traditional Digital
Marketing Marketing

Only 29%
Of marketers are very
effective at integrating
channels.



Traditional Digital
Marketing Marketing

65% Only a third Less than
Of respondents are Use this data in targeting 1 and 5
doing the basics by one-to-one offers or Leverage online data to
reporting and analyzing messages in digital inform one-to-one offers
their online visitor data. channels. in traditional channels.


High performing marketers leverage
their online data in other channels

Base: Companies that have online visitor data (n=351)

May 2012

…finally…

Accept mistakes and learn from
them, be agile enough
to iterate and improve


Cultivate the right marketing culture

 Create an organization that balances analytics and creative talents

 Work with IT not around IT

 Break down the marketing silos — digital and traditional marketing
must consolidate and collaborate

 Accept mistakes and learn from them, be agile enough to iterate
and improve


IBM is fulfilling the promise of
connected marketing

 Addressing CMO’s needs systematically
and for the long term

 Educating and influencing CIOs and CEOs
to help improve marketing

 Explaining and escalating CMO’s
agenda in IT

 Setting marketing standards through
robust technology

 Providing best practices, market insight
and benchmarks


Marketing, Technology, and the Empowered Customer

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