Combining Digital Media and Customer Interactions for “Connected CRM”

© 2012 Merkle Inc. All Rights Reserved. Confidential1

Presented on November 4, 2009Combining Digital Media and Customer Interactions for “Connected CRM”

South Florida Interactive Marketing Association

April 12, 2012


Agenda

• Who we are

• What we believe

• CRM in a digital world

• Q&A


Who We Are

Our experience and expertise make us a leader in CRM, shown by our clients’ successes


Company Overview

• Ad Age A-List: “Agency to Watch in 2012”

• Largest privately-held agency in U.S., Ad Age ‘11

• 8th Largest Direct Marketing Agency, Ad Age ’11

• Recognized by SmartCEO Magazine as a Future 50 Company ‘11

• NCDM Awards ’04, ’05, ’06, ’09, ’10, ‘11

• Recognized by Forrester ’03, ‘06, ’07 &’10

• Multiple MAXI Award Winner ’10 ’11

• Multiple DMA Innovation Award Winner ‘10

Distinctive experience Extraordinary expertise

Sustained 25% growth since 1989 Awarded and recognized

Re

ven

ue

in m

illio

ns

• Privately held by current management since 1988

• 150+ world class clients

• Manage over 125 marketing databases

• Manage 1.6+ petabytes of customer data

• Inform over $10 billion marketing decisions annually

• 1,500+ Employees

• 150+ statisticians producing over 1,000 models/year

• 200+ dedicated digital professionals

• 500+ marketing technology professionals

• 100+ creative professionals

2006 2007 2008 2009 2010 2011 2012E$50

$100

$150

$200

$250

$300

$350

$400

$148

$180 $211 $223

$255

$303

$360


Our clients represent many of the best global brands in the world


POS Phone Site Mobile TV Radio Display Print SocialDirect mail Email Search

The Customer Relationship Marketing Agency

Integrating diverse capabilities

Through optimizing customer touchpoints

Life sciencesNonprofit | | |

Increased customer value Improved media effectivenessImproved marketing ROI | |

CRM Outcomes

Integrating diverse capabilities

Consulting services Creative & communications services Digital media servicesDatabase marketing services | | |

Utilizing industry experience to drive strategy

Delivered across multiple engagement typesConsulting | Marketing services | Agency of record

Life sciencesRetail banking &

consumer financeTravel, media & entertainment

Retail & CPG/OEMNonprofitInsurance & wealth

management | | | | |


What We Believe

Marketers play a critical role in creating a long-term, sustainable, competitive advantage for their organizations


Marketers can again create long-term sustainable advantage

1950s+Age of brand

1998+Age of channel

2008+Age of customer

Direct-to-consumer business model transformation

Low cost 1:1 targeting and engagement

Creation of national brands

National media and mass marketing

Internet and eCommerce

Social networks & digital media

“Contenders”

(Consumer to Consumer)

(Consumer to Brand)

(Brand to Consumer)


Customer strategy is a preemptive business strategy

Developing a 360º view of the customer

Ex-customerNon-buyer

ProspectSuspect

UserBuyer

Likely attrition customer

And marketers are responding by

And consumersare changing

Developing advanced insight, targeting and

measurement capabilities

Social networks as a purchase advisor

Changing consumer buying process

Shift in media consumption patterns

Engaging consumers in more effective and productive ways

Putting the customer at the center of business strategy

The digitization

of media and channels

Socially enabled

mass engagement

Challenging economic

climate

MACRO trends are changing the landscape

Evolving consumer expectations


CRM Transformation – Business Models Matter

Dire

ctIn

dire

ct

Identified Non-identified

Healthcare CPG

RetailFinancial Services

BUSINESS MODEL

FOCUSED

ENGAGEMENTFOCUSED

INTEGRATIONFOCUSED

LOYALTYFOCUSED

Customer

Bu

sin

es

s m

od

el


Marketing functions are both brand- and customer-focused. Integrating these is the key to successful marketing.

Media Digital MassDirect

Brand Focused

Strategic integrationQualitative“Big Ideas”Attitudinal

Customer Focused

Quantitative“Facts”

Behavioral

The Power of the Universal Relevant to the Individual

Universal Unique

Brand advertising Consumer marketing

Implementation

Brand activationBrand creation


Customerfocused

Business unit / media

engagement

Campaignfocused

Customer Relationship Marketing evolution

Level 1

Level 2

Level 3

Level 4

Level 5

Enterprise engagement

Infrastructure focus, basic capabilities

Single campaign, simple data, little offerand customer customization

Basic multi-channel, model integration,and campaign automation

Contact Optimization, multi-touch campaigns, integrated measurement platform

Customer Value Optimizationfully integrated programs & campaigns

Low value

High value

Moving from

Level 3 to Level 4 is hard.


How do we compete in this new connected

world?


A new approach to customer interaction

A systematic way to identify, serve and retain high-value customers better than competitors by delivering customer

interactions that improve financial results, create competitive advantage and drive shareholder value.


Optimizing customer behavior is how you make money

Relevant and timely programs increase short-term revenue profitability and long-term customer portfolio value.

Time

Customer value

Average

High

Low

Optimized

First purchase

Up-sell

Dialogue

Consideration Purchase Engagement Loyalty


But in reality, optimizing behavior has become increasingly complicated as channels and media options grow

TV & Radio

Print

Mail

Email

Display

Social

Search

Web

Store

Care

Phone

Partner

Position Expectation ProductPrice

ServiceSales

Purchase Promotion Experience Customization

Med

ia

Ch

ann

els

Brand Value proposition

Customer portfolio

How do we operationalize this complexity?


Domains

Ability to identify, segment and manage high

value customers

Ability to allocate resources that optimize ROI and long-term

customer value

Ability to micro target, customize and personalize

media and channel

experience

Ability to create metrics as

currencies and measure the incremental

impact of each marketing

activity

Ability to organize in a fashion that

allows you to respond to changes

in customer, competitor or marketplace

behaviors faster than the

competition

There are six core domains that must be mastered in order to create sustainable competitive advantage.

Ability to create and manage a

360º view of the customer

Information Insights Targeting MeasurementOptimization Agility


Connected CRM landscape

18

Ex-customer

Non-buyer ProspectSuspect UserBuyer Likely

attritor

Retain

Renew

Up-sell

Deselect

Cross-sell

Activate

Entangle

Stimulate

Qualify

Win back

Acquire

Qualify

Strategy & Direction Create & Customize Manage & Perform

• Business strategy• Brand strategy• Customer strategy• Segment strategy• Offer/treatment strategy• Media strategy• Multi-channel strategy• Customer experience strategy

• Insight management• Campaign management• MRM• CRM/media mix mgmt• Segment management• Lead management• Content management• Experimentation management• Performance management

• Program development• Offer creation• Content creation• Message development• Treatment• Personalization• Customization

Analytics, Data, Applications, Tools and Infrastructure

CRM Management Systems • Metrics and incentives• Optimization and business rules

• Organizational structure• Roles and responsibilities

• Decision authority• Governance


Role of the CRM Knowledge Center in Connected CRM

Inbound

Other CRM Business Functions

Informing

Outbound

PricingProduct /

MerchandisingSales Service FinanceOperations

Channels Media

Marketing Mix Optimization

Campaign Management

InteractionManagement

SystemsIntegration

Customer Portfolio Management

Awareness Experience Purchase EngagementCustomer Acquisition

Loyalty / Retention

Cross Sell / Up Sell

Info

rmin

g

Customer Value Management Measurement / Attribution ManagementSegmentation Management

Info

rmin

g

CDI &Warehouse

Data Marts

Op Data Stores

Customer

Channel & Operations

Media

CRM Knowledge Center


CRM in a digital world


A new opportunity to target and reach customers

What if Geico could choose 10 million people who would be most likely to switch their car insurance in the next month

and target them directly across media and channels?


What is available today, and what is the potential to target customers across media and channels?

POS

Call c

ente

r

SiteMob

ile

TV Radio

Display

Print

Social

Direct

mail

Email

Searc

h

Contextual

Anonymous Individual

IdentifiedIndividual

Media ChannelsTargeting

Not available Emerging Somewhat available Widely available


Search

Display

Site

Social

Email

MobileDat

a M

an

agem

ent

Dat

a In

teg

rati

on

Integrated data provides an opportunity to analyze, segment, and target customers through digital media and channels.

An

aly

tic

s:

Targ

eti

ng

, M

ea

su

rem

en

t, I

ns

igh

t

Be

ha

vio

ral

Se

gm

en

tati

on

, L

ife

tim

e V

alu

e, A

ttri

bu

tio

n,

CR

M m

ix

First Party Data

(CRM)

Second Party Data

(Partner)

Third Party Data

Cookies

Open Graph date

Real-time Bidding

Text

Key word bidding by

segment

IndividualPersonalization

Anonymous & Individual

Personalization


The evolution of digital display ads has grown from place to customer

ContextualExchange

EnvironmentsConnected Exchange

EnvironmentsHow many people visit site, and

their profileCookie & Third Party data on

unknown individualsAddition of data repository including

all media and CRM data

Targeting• Based on research and

persona• User behaviors• Retargeting

• Behavioral segmentation• Lifetime value• Customer/prospect

Measurement• Last click • Digital attribution • Fractional attribution

across all media

Insights• Media property

performance • Exchange Performance Performance by customer :

• Segment• Value

Place

Anonymous and Individual

CRM Data Driven

Place

Anonymous Individual

PlaceLevel of insight


Integrated Data with Advanced Display Segmentation yields only the customers you are trying to reach, optimizing investments.

Inte

gra

tio

n

You can build and effective display media plan using contextual and exchange based buying

First Party Data

Second Party Data

Third Party Data

Affluent sophisticates

High transactors

Ascending buyers

Lookie-loos

Legend:Targeting:• Behavioral segmentation• Lifetime value• Customer

Performance by customer:• Segment• Value

Inte

gra

tio

n

But why underspend for the right customers and overspend for customers you don’t want?


Connected CRM Summary

• Managing and engaging customers not campaigns will be key to creating competitive advantage.

• Digitization of medias and channels is creating a big data revolution in marketing: the only way to monetize this at scale will be through Connected CRM.

• We are in the early but accelerating stages of this journey and new skills and approaches will be necessary ….first movers will have a significant advantage.


Thank you!

David Williams

Chairman & CEO

Merkle Inc.

7001 Columbia Gateway Drive

Columbia, MD 21046

443-542-4000

merkleinc.com

Q&A

Combining Digital Media and Customer Interactions for “Connected CRM”

Business

Transcript of Combining Digital Media and Customer Interactions for “Connected CRM”