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The Evolution of CRM in the Era of Big Data & Digital Technology

Making Better Connections to Deliver Better Results:

Presentation to

April 18, 2013

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Who Do We Work With?

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Consumers

Brands

Media

Partners

What Are We Trying to Connect?

3

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Agenda

Changing Landscaping

Resulting Paradigm Shift

Challenges for Direct Marketing

How You Might Address It

4

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What’s Changing ?

Email Usage DM Opens Telemarketing Conversion Rates

Sourcess: David Kay and Mark van Harmelen, (2012)

D

E

C

I

S

I

O

N

I

N

G

5 globalastrologyblog.blogspo.com (2012)

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Our data lacks the detail

needed to drive effective

marketing solutions

What data will help drive

better business decisions.

Where to get it? How to

use it?

Our data stored in

different locations in

different format

With different usage

permissions

Not every record has a

prefect ‘match’

Data Chaos Analysis Chaos Decision Chaos

How do you translate

results into actions

In a timely manner

In a way that makes a

difference

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Trouble Is…

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1 TOO MUCH

DATA

2 NOT ENOUGH

INSIGHTS

3 TOUGH TO

CONNECT WITH THE RIGHT

CONSUMERS

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Why BAU Is So Hard?

Many companies prefer all components of its database to remain behind firewalls

- Good Luck with that

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So What’s Shifting ?

> Get More Data Use the Right Data

> Mass Media Addressable Media

> Advertising $$$ CRM $$$

> Push Messaging Triggered Messaging

---------- CRM Role within Organizations --------

> Attitudinal Data Behavioral Data

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The CEO’s Challenge What set of

corporate actions

will best increase

shareholder value?

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The CMO’s Challenge

How can I optimize

my marketing plans

this year so they

deliver higher sales at

a terrific ROI?

11

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The CRM Manager’s Challenge

How can we unlock the

value within our

customer database to

increase share of wallet

and market share?

My Share

12

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3 keys to growing your business via CRM :

(1) get the most from current customers - up-selling and cross-selling

(2) protect your existing share of market - avoid defection (3) profitably cultivate new customers - focusing on consumers with high LTV

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So how you get there?

Robust Understanding Of Current Customers / Segments

Mapping Customers’ Path to Purchase / Brand Touchpoints

Identifying & Isolating Factors Related to Purchase

Ideating Customer Recognition & Decisioning Scenarios

Specifying the Data, IT & Business Requirements to Achieve the Vision

Creating a Roadmap to Get There

Developing a Business Case for the Investment

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Better Targeting

More Relevant Messaging

Better Channel Selection

Improved Consumer Experience

Better Response Rates

Media Efficiencies

Higher Customer Satisfaction

Higher ROMI

Expected Outcomes

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IRI Panel

Crossmark

Store Sales Volume Metrics

MRI

Spending Media

Cross-category Purchases

Client

Cross-category Brand propensities Hoovers

Market Size

Forrester

Big Research

Omniture Cart Activity

Site Activities

Com Score

Pages Visited

Compete Time Spent

Social Media

Collective Intellect

Radian 6 Sentiment

tracx

Network Connectivity

Klout Influence

HH Activity

Technographics

Demographics

Psychographics

Econometrics

Lifestyle Interest

INFOBASE

Data Providing the Best Speed to Value

Merge – Segment – Score

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What You Can Do With It

Online Habits

E-Commerce Activity

Trad. Media Habits

Sales Data

Social Media

DM Email

Response

Demos &

HH Info

Rewards Program Activity

Audience Segmentation B/O Product Interests

Channel Utilization B/O Media Habits

CRM Messaging for NBO B/O Website Behaviors

Offer Management B/O Estimated LTV / Defection Risk

Dynamic Site Experiences B/O Customer Recognition

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What Next?

Take what you know about registered

consumers and use that information to interact with people

that are unknown

Registered Consumers

Unknown Consumers

High Value Look-Alikes

Previously Unaddressed

Segments

Competitive Conquests

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Analytics Platform

Consistent Recognition

How You Manage & Deliver It

Inventory Partners & Ad Serving

Site Analytics Anonymous

Known

Anonymize

Segments & Models

Onboard

Associate

Manage

Analyze

Segment

Distribute

Receive/Cleanse

Recognize

Manage

Analyze

Segment

Fulfill Content Delivery

Platforms

Safe Haven PC Data Onboarding

Premium Pub Partners

Online/Offline

Enhanced IB,

Predictive

Models,

Triggers

Data/Models

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Real-time Decisioning

Outbound Channels

Inbound / Interactive Channels

“Trigger” Targeting

“Push” Targeting

Campaign Management

Marketing

Databases

Content

Middleware, Business Rules

Analysis, Planning & Budgeting

Customer History

> Client Data > Third-Party Data > ETL Processes > Grouping Rules > Triggers

Campaign Execution

Customer Perception Product

Pricing Availability

Operational History

Content

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How You Deliver It

From: Kazee Derek - dkazee

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https://romeo.blkbx.com

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Analytics 2.0

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1 Attribution

2 Optimization

3 Allocation

Analytics Engine

Source: Market Share (2013)

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“VARS GA Neural Nets .. Oh my”

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MEDIA MIX OPTIMIZATION

Response curves

14.60

14.80

15.00

15.20

15.40

15.60

15.80

16.00

$0

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Tota

l Pro

duct

Uni

tsM

illio

ns

Media Investment ($M)

Response Curves

Direct Mail

TV

OOH

E-mail

Display

Print

Radio

Search

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Points of Entry

Real-time Dynamic Marketing Engine

Automated File Generation

Automatically trigger marketing files, in real-

time, when changes occur.

Multi-Channel Execution Coordinated, trigger

communications via Web, ad targeting, phone, direct

mail, e-mail, SMS or other retail CRM system

Delta Monitoring Best-in-class tools to

continuously monitor your data to detect changes based

on timing, events, transactions and or thresholds

Ongoing Optimization Continuous marketing mix optimization to improve

targeting, offer and channel performance.

Real-time Consolidation Leading edge capabilities

to consolidate data streams from numerous

sources in a real-time environment

Prospects Leads Site Visitors Customers

Behavior Monitoring

Lead Sources

Call Centers

Sales Database

Websites Preference Centers

Social Loyalty Customer Care Interactive

Aspire Learn Shop Own / Service

Experience Re-Up-Cross-Sell Buy

E.I.M. Dynamic Life-Cycle Marketing

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Thank You

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