Post on 27-Jan-2015
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© 2013 IBM Corporation
7 Ways to Amp Up Your Marketing
Using Customer Analytics
Jay Henderson
Strategy Director, IBM’s Enterprise Marketing Management Group
© 2013 IBM Corporation 2
Today’s presenter
Jay Henderson Strategy Director,
Enterprise Marketing Management
@jay_henderson
© 2013 IBM Corporation 3
The danger and the opportunity
Bad marketing?
© 2013 IBM Corporation 4
The danger and the opportunity
Bad marketing?
© 2013 IBM Corporation 5
The danger and the opportunity
Marketing so good it feels like a service…
…and service so good it’s marketing
© 2013 IBM Corporation 6
Intelligence needs to be woven into the fabric of enterprise processes to build smarter marketing
Business
Partners
Prospective
Employees
Suppliers
Current &
Prospective
Customers
© 2013 IBM Corporation 7
Intelligence needs to be woven into the fabric of enterprise processes to build smarter marketing
Increase conversion, margin Reduce sales cycle time
Increase brand preference, especially for customers with the greatest lifetime value
Improve customer satisfaction & loyalty
Enable flexible payment options based on need
Enable employee access to usable analytics
Manage inventory and optimize supply chain
Understand the met and unmet needs
Hire capable employees and enable with appropriate skills
© 2013 IBM Corporation 8
7 Ways to Amp Up Your Marketing
Using Customer Analytics
© 2013 IBM Corporation 9
Analysis
#1
bridge the gap between
analysis and action
(finally?)
Action
© 2013 IBM Corporation 10
Marketers must bridge the gap between analysis and action (finally?)
57% said their top bottleneck was
measurement, analysis & learning
62% said their top marketing issue was
turning data into action
Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 11
11
Grow &
Retain
Attract
Engage &
Persuade
Don’t create customer “facts”, frame analytics around actions to
support specific business goals
© 2013 IBM Corporation 12
#2
identify needs and intent
from digital behaviors
© 2013 IBM Corporation 13
Marketers must leverage digital behavioral data to turn data into action
65% Of respondents are doing the basics by reporting and analyzing their online visitor data.
Only a third Use this data in targeting one-to-one offers or messages in digital channels.
Less than 1 and 5
Leverage online data to make one-to-one offers in traditional channels. Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 14
Marketers will use web data because it will improve targeting
Accountant
Mom Wife
Golfer
Target Audience: Demographics
© 2013 IBM Corporation 15
Marketers will use web data because it will improve targeting
Accountant
Mom Wife
Golfer
Target Audience: Demographics
Last Web Visit
© 2013 IBM Corporation 16
Marketers will use web data because it will improve targeting
Accountant
Mom Wife
Golfer
Target Audience: Demographics Web Data Informs Intent, Desire, Need….
Last Web Visit
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Drive customer level digital behaviors into customer profiles
© 2013 IBM Corporation 18
#3
understand how your
customers are interacting with
mobile channels
© 2013 IBM Corporation 18
© 2013 IBM Corporation 19
over 15% of all online
sales come from
mobile devices1
Mobile (including tablet) continues to increase dramatically…
Sales, traffic, and even email
over 25% of all site
traffic comes
from mobile devices2
47% of all email is
opened on mobile devices
(more than apps or web)3
Sources: 1 IBM Digital Analytics Benchmark (consistently Nov 2012 – March 2013) 2 IBM Digital Analytics Benchmark (as of March 2013) 3 Email Optimization benchmark
© 2013 IBM Corporation 20
As customers adopt, not surprisingly marketers are following….
over 50% of marketers already
conduct multiple types of
mobile marketing Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 21
Don’t forget, mobile is a device, not a single channel
Customer
Mobile Email
e
Mobile Applications
Mobile Websites
Mobile Display & Search
DISPLAY
Mobile Messaging (SMS, Push Notifications, Wallet/Passbook)
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Mobile marketing adoption is healthy across channels and tactics
59%
52%
47%
41%
39%
38%
23%
21%
25%
28%
25%
25%
29%
29%
11%
15%
12%
16%
16%
15%
18%
9%
8%
13%
17%
21%
18%
30%
Mobile apps
Mobile websites
Mobile email
Location-based targeting
SMS/MMS/WAP
Mobile Ads (PPC or Display)
Mobile wallet (e.g. Passport,Google )
March 2013
Figure: Mobile Marketing Tactics in Use
Q. Which of the following mobile marketing tactics is your company using or planning to use?
Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 23
Mobile is not all thumbs, fingers too. iPad now consistently leads all devices - more traffic and faster growth
4.07%
5.16%
4.30%
6.09%
8.21%
8.82%
Android
iPhone
iPad
US Mobile Traffic by Device December 2011 vs December 2012
Dec-12
Dec-11
Source: IBM Digital Analytics Benchmark
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Create customer profiles based on mobile devices
Mobile Segmentation
Standard Mobile Reports
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Understand how customers transition across devices and visualize
device streams
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Understand the mobile customer experience
Native Apps
Hybrid Apps HTML5
Mobile Site
Cover multiple mobile channels
Capture and replay customer
interactions
Discover “why” mobile customers
succeed or fail
Automatically detect customer
struggles, obstacles or issues
Drill down into actual user behavior,
complete with gestures
© 2013 IBM Corporation 27
#4
discover brand disposition and
product sentiment from social
data
© 2013 IBM Corporation 28
Social has yet to make a significant impact on
“same session” traffic or sales
~1% of traffic
~1.5% of online sales
• Measurement and ROI are
elusive
• Campaigns are poorly
integrated
• Mostly marketing techniques
are employed
• Opportunity to understand
individuals is ignored
Consumer adoption of social media is pervasive, but marketing in
social is hit or miss
Source: IBM Digital Analytics Benchmark
© 2013 IBM Corporation 29
Marketers become socially awkward as experimentation abounds
66%
55%
51%
49%
48%
48%
45%
44%
29%
25%
21%
19%
18%
21%
24%
23%
22%
23%
22%
27%
18%
18%
8%
11%
7%
7%
9%
10%
12%
12%
15%
13%
16%
8%
17%
21%
21%
20%
20%
20%
22%
29%
44%
45%
Blogs
Social sharing
Branded Communities
Social media ads
Social apps/widgets
UGC
Group Buying
Foursquare
Currently Use Plan to use in <12 months
Plan to use >12 months No plan to use it
Figure: Social Media Tactics in Use
Q. Which of the following social media marketing tactics is your company using or planning to use?
Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 30
Customer analytics for social should be aggregate and individual
Aggregate Insights
Individual Profiles +
Sentiment
# of followers,
# following,
last tweet date
Name, # of Friends, birthday,
hometown, interests, activities,
political views, religion,
relationship status, etc, etc, etc.
© 2013 IBM Corporation 31
Progressive social insight that informs a single view of the customer
and context for a relationship
Social Facts
© 2013 IBM Corporation 32
Progressive social insight that informs a single view of the customer
and context for a relationship
Social Facts
Inferred Social Attributes
Sentiment
Interests Expertise
Influence
© 2013 IBM Corporation 33
Progressive social insight that informs a single view of the customer
and context for a relationship
Social Facts
Inferred Social Attributes
Sentiment
Interests Expertise
Influence
Personality
Behavior
Values Needs
© 2013 IBM Corporation 34
#5
strategically nurture new
channels
© 2013 IBM Corporation 35
…and more
Warning! things change…
especially emerging marketing channels
New Media
Social Media
Social + Mobile
Website Email PPC
?
© 2013 IBM Corporation 36
How does your company respond to new channels?
EMERGING
CHANNELS
Panic
Denial
Fear
Legal Bottlenecks Wait for ROI Proof
One-Off Experiments
© 2013 IBM Corporation 37
marketing is great
about reserving
discretionary
budget to try new
things
Today’s situation
© 2013 IBM Corporation 38
disconnect between
funding with discretionary
spend strategically
nurturing
new channels
Today’s problem
© 2013 IBM Corporation 39
shift efforts in
emerging channels from
ad-hoc and one-off
to a strategic and
structured process
Tomorrow’s solution
© 2013 IBM Corporation 40
#6
adjust marketing in real-time
by understanding
the context of the current
interaction
© 2013 IBM Corporation 41
BEFORE the interaction:
• Easier
(only batch capabilities needed)
• But context not used, so
personalization is less relevant
DURING the interaction:
•Greater investment required
(real-time capabilities needed)
•More relevant messages
Best option: DURING
RETHINKING the customer interactions
© 2013 IBM Corporation 42
Real-time contextual marketing
Turns every customer touchpoint into a channel for the kind of personalized marketing messages previously only delivered through outbound campaigns
Website Selection
Authentication Call
Center
Greetings Greetings
Context of
Call
Greetings Customer
Dialog Offer Offer
Hold Time
Contextual marketing: the presentation of personalized messages during “inbound interactions” and taking into consideration the current interaction
Turns every customer touch-point into a channel for the kind of personalized marketing messages previously only delivered through outbound campaigns
© 2013 IBM Corporation 43
70%
68%
54%
47%
16%
11%
22%
27%
7%
9%
12%
13%
7%
12%
11%
13%
Currently do it Plan to do in <12 months Plan to do in >12 months No plan to do it
Website
Customer Service /
Call Center
Social Media (i.e.
Facebook)
Mobile (i.e. SMS,
mobile sites)
Survey question: Is your company delivering or planning to deliver targeted/personalized messages in customer-initiated interactions (e.g., website, physical store/branches, call center)?
Contextual marketing is a growing trend
Source: IBM’s Global Survey of Marketers
© 2013 IBM Corporation 44
Why? Because it works better
Enterprise Customer “Traditional” Outbound
“Intrusive” 1-5% Response
Enterprise Initiated, Marketing Driven
Event-Driven
“Convenient” 5x Success
Customer Triggered, Product as Service
Inbound, Real Time
“Appropriate” 10x Success
Customer Initiated, Relationship Driven
Source: Gartner Group
© 2013 IBM Corporation 45
Results from using real-time context in personalization
Company Benefit
A global financial services
institution 4x revenue from offers presented on
website based on behavior, not pre-calculated
A large Dutch bank 5% increase in sales volume
from web personalization
A global travel and
entertainment company
250% increase in clicks per day,
400% increase in revenue per impression,
from real-time email offer personalization
A large telecommuncations
provider in APAC
Cross sell success rate increased
from under 10% to more than 40% in call centers and retail shops
© 2013 IBM Corporation 46
#7 measure what works
and make adjustments
© 2013 IBM Corporation 47
Have a strategy for ROI measurement & optimization
Promote
Persuade
Nurture with Permission and Personalization
Convert to New Customers
Service
Grow Lifetime Value
Grow Net Promoters
Derive the Mobile Interaction Strategy across
the Customer Lifecycle
Your overall marketing and business strategy determines the role of a channel
Define Mobile’s Mission
• Create customers?
• Make / save money?
• Satisfy & grow clients?
Derive Mobile Strategy
• Mobile features, e.g. site vs. app, SMS, QR?
• ROI metrics and goals?
• Ad channels?
• Short term?
• Over customer lifecycle?
Repeat
Measure ROI + Improve it
© 2013 IBM Corporation 48
7 Ways to Amp Up Your Marketing Using Customer Analytics
Use customer analytics to…
1. Bridge the gap between analysis and action
2. Identify needs and intent from digital behaviors
3. Understand how your customers are interacting with mobile channels
4. Discover brand disposition and product sentiment from social data
5. Strategically nurture new channels
6. Adjust marketing in real-time by understanding the context of the current interaction
7. Measure what works and make adjustments
© 2013 IBM Corporation 49
Jay Henderson Strategy Director IBM Enterprise Marketing Management email: jay.henderson@us.ibm.com twitter: @jay_henderson