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MARKETING AT A CRITICAL JUNCTURE

DRIVING FINANCIAL RETURN

Tim SutherChief Marketing Officer

BETTER TARGETING DRIVES ROI

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Transformational results are possible

Source: Razorfish 2010

MULTICHANNEL DRIVES ROI

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10-20% revenue lift is achievable

Source: McKinsey 2010

CAPABILITY MODEL FOR A CONNECTED WORLDCustomer life

cycle marketing

Focus on trigger-driven messaging along the life cycle• 15x profit v. broadcast programs

• Pull customers (v. push products) – 3x revenue/email (retailer)

• Dynamic product offers - increased revenue 46% in stores & 17% online (tech

• Everything as a service

Integrate across media & channels

• Integrate mobile/email – 7.5x website spend retailer

• Integrate outbound/website– 2x bookings hotelier

Solicit customer input/action• Preference center – HP Technology at Work

• Solicit ratings/reviews – conversations are crucial

• Design content to be viral – 2-4x link performance

Fundamentals matter• Customer information decays 2%/month

• $144 million of commercial email won’t reach the inbox in 2014

CAPABILITY MODEL FOR A CONNECTED WORLDTime & location-

based marketing

Customer lifecycle marketing goes wireless• SMS for time sensitive messages:18x return (retailer)

• Inventory availability drives “on premise” revenue: 5% conversion (casino)

• Solicit customer input/action: experiences, ratings, reviews, check-ins,

surveys

• Near-field communications/mobile commerce

Reach new buyers• Loyalty enrollment via SMS: 280,000 new members, (retailer)

• Mobile advertising driven by your database

• Shopping apps, price comparison & QR codes play defense…and offense

CAPABILITY MODEL FOR A CONNECTED WORLDHarvest Intent

Improve search visibility• SEO - 80% of click throughs are organic

• Customize/monitor the landing experience

Drive conversion through personalization• Dynamic personalization to “optimize the real estate”: 9x return (insurer)

• Algorithm-based recommendations: $100 million revenue uplift (telco)

Effectively re-market• Retargeting via display or email – 12x return (e-Commerce site)

• Confirm chat with e-mail

CAPABILITY MODEL FOR A CONNECTED WORLDSmarter Demand

Generation

Find your high value audience. Filter out the rest.• 80% of online advertising fails to reach its intended target.

• Collaborative Targeting: 11x return (retailer)

Make brand advertising actionable & accountable• Interactive Television – coupons, samples, more information

• An emerging opportunity in online display. Brand represents just 5%

Leverage multidimensional insight• Combine purchase, response, value & risk scores: $7600 deposit/household

increase for contacted households. Retail Bank

• Combine seasonality, customer potential, price elasticity, halo effects, social

influence: 3x room nights (Casino)

• Connected primary research: 5.5x improvement (telco - “cord/cable cutters”)

CAPABILITY MODEL FOR A CONNECTED WORLDMedia/Channel

substitution

Arbitrage duplicative contacts based on preferences• $112 billion in US advertising wasted per year. What Sticks

• Email & print:4x revenue/email (leading publisher)

Substitute based on preferences• From mass to targeted:10% revenue increase (multi-format retailer)

• From call center to self serve: $4.5 million expense savings/yr (technology

firm)

• From print to digital: 22% conversion in 45 days (airline)

• From paid search to organic search & display: 52% better CPA (Google)

• From paid to earned/curated

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