opening and welcome session - the... · • recognized by forrester ’03, ‘06, ’07 &’10...

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Opening and Welcome

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Welcome

WEDNESDAY OCT 15

THURSDAY OCT 16

5:00 PM Executive Keynote Hilary Noon, Marketplace Insight, Experience and Strategy, American Cancer Society

6:00 PM Cocktails & Dinner

8:00 AM Breakfast

9:00 AM Meeting Begins

9:15 AM Module 1: Digital Constituent Experience

11:00 AM Module 2: Digital Experience Industry Expert Panel

1:15 PM Module 3: Enabling Integrated Constituent Engagement

2:45 PM Closing Remarks: How to Bring It All Together

12:15 PM Lunch

4:10 PM The Opportunity of Integrated Constituent Engagement

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MERKLE UPDATE

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$171 $182 $210

$246 $266 $315

$390

2008 2009 2010 2011 2012 2013 2014E

Company Overview

Distinctive experience

Sustained 25% growth since 1989

Awarded and recognized

Rev

enue

in m

illio

ns

• Manage over 140 marketing databases

• Manage 3.7 billion 1st party customer records

• Inform over $10 billion marketing decisions annually

• Manage over $500 million in digital media spend

• Manage over 1 billion permission based emails

• Largest privately-held agency in U.S., Ad Age ’13

• 6th Largest Google Media Partner ’13

• 7th Largest CRM/Direct Marketing Agency, Ad Age ’13

• Fastest Growing US Search Agency, Ad Age ’13

• 19th Largest Mobile Agency, Ad Age ‘13

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

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

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

• Multiple DMA Innovation Award Winner ’10 ‘13

• Privately held by current management since 1988

• 150+ world class clients

• 2,600+ Employees

• Headquartered in Columbia, MD

• 17 locations around the world

Overview

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Our Solution Offerings

Connected CRM

Marketing Database

Identity Management

Analytics Platform

DMP & Decisioning

Media & Channel Execution

MARKETING TECHNOLOGY SERVICES

Design, develop, manage and Integrate marketing technology platforms

CONSULTING SERVICES Business & Use Case

Development Change Integration &

Transformation

DIGITAL AGENCY SERVICES

Strategy, experience creation, program development and management in and across:

Search (SEM, SEO)

Media (display, social, video)

Site (UX Design, development)

Messaging (email, SMS)

Social (earned, owned)

Assessments & Roadmaps

ANALYTIC SERVICES

Segmentation & Insights

Attribution & Measurement

Targeting & Decisioning

Data Strategy & Sourcing

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Account Management

150+

Technology Professionals

750+

Analytics Professionals

350+

Consulting Professionals

50+

Digital Media & Creative

Professionals 650+

Our team includes a unique set of skills that allow us to deliver a completely integrated solution

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Acquisitions

April 2014

July 2014

July 2012

September 2012

February 2012

March 2011

2011 2012 2013 2014

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Our Full Service, Data Enabled, Digital Agency

Display • Guaranteed buys

• Programmatic buying

• Private exchange development

• Social Media

Search • Paid search

• SEO – Site and mobile

• Mobile Search

Social • Enterprise Strategy

• OpenGraph Development

• Social Data Capture

• Site Socialization

• Community Management

Site • Responsive Design

• App development

• Mobile Web

• Web Development

Digital Messaging • Contact strategy

• Email /SMS Deployment

• Email/SMS Campaign management

Digital Analytics

Digital Technology Ena

bler

s

User Experience Design and Creation

Digital Strategy

Integrated Digital Program Planning, Design & Management

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Strategic Partnerships

Merkle is a FB preferred developer

Merkle spends more than $500 Million in media, Merkle is Google’s third largest agency partner

Merkle is one of four CRM Twitter Tailored Audience partners

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Opening Session: The Opportunity of Integrated Constituent Engagement

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“However beautiful the strategy, you should occasionally look at the results” ~ Winston Churchill

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What we ask of you

Let’s get our ”eyes up”

Consider the possible, not just the obstacles

Open up and share

We’re all facing the same challenges

If not you… then who? None of us own everything, consider how you can drive change.

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TRENDS IN GIVING

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The state of US giving

Source: Giving USA 2014

2013 contributions: $335.17 billion Giving by organization type

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Change in giving rates

By giving type By recipient organization

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Giving by individuals, 1973-2013 (in billions of dollars)

107.49 114.64

121.64

137.76 147.94

196.69

229.71 231.34 240.60

20.53 32.10

52.06

69.98

91.72

137.68

181.47

213.76

Inflation adjusted dollars Current dollars

1973 1978 1983 1988 1993 1998 2003 2008 2013

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Total giving by source in five-year spans, 1974-2013 (in billions of inflation-adjusted dollars, 2013 = $100)

Giving USA uses the CPI to adjust for inflation

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Giving to health, 1973-2013 (in billions of dollars)

1973 1978 1983 1988 1993 1998 2003 2008 2013


16.23 14.64

8.08

11.00

14.18

18.24

22.51

26.13

31.86

3.10 4.10 3.46

5.59

8.79

12.77

17.78

24.14

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Giving to religion, 1973-2013 (in billions of dollars)


55.13

65.54

74.39

88.88 85.31

97.50

106.48 106.30 105.53

10.53

18.35

31.84

45.15 52.89

68.25

84.12

98.22

1973 1978 1983 1988 1993 1998 2003 2008 2013

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Hypothesis:

We can do better!

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CONSUMER TRENDS

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There is a unique set of market conditions that is creating a perfect storm for marketers

The Always Addressable

Customer

And marketers are responding by

And consumers are changing

Mass consumer to consumer engagement

Changing consumer purchase behaviors

Shift in media consumption patterns

Focusing on big data and its ability to drive value

Embracing digital media and channels to enhance

customer experience

Putting the customer at the center of business strategy

Social networks at scale

Macro-trends are changing the landscape

Mobility at scale

Addressability at scale

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Migration of the consumer from offline to online has hit an inflection point and is disrupting the entire consumer experience

2008

7.0——

6.5 —

6.0——

5.5 —

5.0——

4.5 —

4.0——

3.5 —

3.0——

2.5 —

2.0——

1.5 —

1.0 ——

0.5 —

2008-2013

Social media 0.1 to 1.1 Digital content 1.7 to 2.4

Consumer hours spent per day on non-digital channels are decreasing,

while use of digital channels are steadily increasing

Hours

2008-2013 TV 3.8 to 3.1 Radio 1.6 to 1.4 Print 0.7 to 0.4

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Social networks are proliferating every day and the leaders are reaching a massive audience

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Online donations

Total donated online to United States charitable causes in 2012

Sources: Blackbaud 2013 Charitable Giving Report M&R 2014 Benchmark Study

Percentage increase in online fundraising during 2013 in the US

$24 B 14%

17%

12%

-3%

Change in online revenues by size

All Small Large Medium

13.5%

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Digital advertising drives action

Compete/Google Non-profits Study, July 2013 MI5. How soon after the last time you saw or heard each of the following types of non-profit / charitable organizations ads did you look up the advertisers online to get more information? MI2: How useful were each of the following types of non-profit / charitable organizations advertisements in helping you decide whether to donate to a non-profit / charitable organization?

of donors went online to research in less than one

week after viewing an online ad

76% 58% 80%

of donors went online to research in less than one

week after viewing a direct mail ad

of respondents agreed online video ads were extremely

useful in the research process

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WHERE ARE WE TODAY?

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Objectives for Fundraising

• Events

• Development

• Fundraising

Diversification of Revenue Sources

• Visibility of constituent engagement across organization and over time

• Ability to design and deliver integrated experiences

• Understanding of integrated program performance

Integration of Engagement

• Organizational alignment around defined vision

• Plans to execute against that vision Transformation of Approach

• Business case for long term investment with near and long term impact Justification of Investment

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Challenges we are facing

Direct mail/email fundraising

programs facing deteriorating returns

Lack of experience and certainty

(predictability) of alternate channels

Lack of enabling infrastructure and

capabilities for integration

Lack of data and insights to support case for change

Organizational alignment

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DEFIN ING CONSTITUENT ENGAGEMENT

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What is a Constituent?

Individual Giving

Mission Beneficiary

Event Volunteer & Participant

“customer”

“constituent”

“customer”

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High growth organizations see the strategic value of CRM

Higher growth companies senior leaders view CRM as much more strategic to their business than lower growth companies

36%

22%

25%

32%

Critical, way of life

Important management tool

Senior Management Attitude toward CRM

Higher Growth Organizations

Lower Growth Organizations

*Source: Merkle Inc. Customer Centric Transformation 2013 Research study.

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CRM Orientation Matters

“File Health” “Customer Engagement”

Affinity/Motivation

Life Cycle Stage

Identity Behavior

Segment

Value

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The Traditional Purchase Funnel

Adverse selection is a big problem in non-addressable media – “people I don’t want are the one’s I get to respond”

This results in lack of quality and scale of the remarketing pool

Inability to use addressability to engage high value leads in a relevant experience drives down conversion of those that are quality

As a result, marketers cannot scale budgets due to inefficiencies above in the funnel, thus, the “targeting dilemma”

Unqualified Leads & Waste

Customer Remarketing

Awareness

Consideration

Remarketing

Conversion

Unknown

High-value customer

Low-value customer

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Nonprofit Siloed Funnels

Awareness

Consideration

Remarketing

Conversion

Product 1 Giving

Unqualif ied Leads & Waste




Product 2



Unknown

High-value customer

Low-value customer

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The Nonprofit Engagement Funnel



Product 2 Giving

Segment 2 Segment 3 Product 1

Segment 1

Mission – Products – Giving

Brand and mission awareness and affinity opportunity

Research or demonstrated affinity

Engage high value leads in a relevant experience

Awareness

Interest/Consideration

Remarketing

Requests communication streams or joins community Communication/Community

Requests communication streams or joins community Conversion

Unknown

High-value customer

Low-value customer

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WHY DIRECT FUNDRAISING?

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The Link Between Affinity and Giving

Source: Hope Consulting

Affinity is the common theme

Core Drivers of Giving Repayer Casual Giver

High Impact

Faith Based

See the Difference

Personal Ties

Cause impacted me or a loved one

Try to support friends’ charities

Org is established and respected

I will be recognized or appreciated

Easy to give through work

Good social events or gifts

Focused on underserved social issue

Org better at addressing social issues

Fit with religious beliefs

Org works in my local community

Org is small – gift makes a difference

Familiar with org/leadership

Friend/Family asked me

In social or professional network

38%

10%

5%

3%

18%

12%

65%

30%

16%

26%

4%

3%

3%

27%

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The Affinity Challenge

C U R R E N T D O N O R S

Population Affinity to give

Affinity to category

Affinity to organization

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Affinity and Reach Have Dictated Our Approach

No Yes

Addressable Media Then mass direct response (ASPCA)

Is my “Affinity Opportunity” large enough for mass marketing?

Can I access addressable details for my affinity

group at scale?

No Yes

Need Proxy Proxy Opportunity:

Established willingness to give Previous Giver List swaps are used as

proxy to achieve scale

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Attrition from active file is

outpacing addition

Cost per new or reactivated donor growing too high

What’s not working

A C T I V E D O N O R S

P R O X Y L I S T S

Active file is shrinking year over year

I N A C T I V E D O N O R S

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THE OPPORTUNITY OF ADDRESSABIL ITY

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Amidst all of this scale and automation, the addressability of channels and media is increasing every day Addressability uses customer data (anonymous or identified) to increase the targetability and relevance of marketing impressions and experiences

The Addressability Spectrum

Anonymous Partially Identified Identified Identification:

Knowledge: Unknown Some Knowledge Well Known

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Product 2 Giving

Segment 2 Segment 3




Awareness


Remarketing


Product 1 Segment 1


Addressability at Scale

The Addressable Nonprofit Engagement Funnel Unknown

High-value customer

Low-value customer

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Product 2 Giving

Segment 2 Segment 3




Awareness


Remarketing


Product 1 Segment 1


Addressability at Scale

The Addressable Nonprofit Engagement Funnel Unknown

High-value customer

Low-value customer

Addressability at Scale provides the opportunity to identify the larger affinity population at the top of the funnel and

engage them directly

Reducing the dependence on acquisition lists as a

proxy for addressing our affinity opportunity.

Creating access to new populations, increasing the

scale of our donor acquisition programs.

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The Opportunity of Addressability at Scale

Better economics

Scale and sustainability

Ability to find and build an affinity base

Personalization

Ability to engage over

time

Integrate with other channels

and engagement

Capitalize on social and

earned

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HOW DO WE GET THERE?

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Connected CRM is the framework to exploit the opportunity of addressability at scale

The Connected CRM Framework

(CCF)

Experience Delivery

Financial Management

Customer Strategy

Portfolio Strategy

Segment Strategy Program Strategy

Media Planning Channel Planning Targeting & Personalization

Measurement & Attribution

Budget Allocation

Infra

stru

ctur

e &

Busi

ness

Pro

cess

Transformation and O

perating Model

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This opportunity will require new competencies – Introducing The Platform Marketer™

Marketers must decide how best to fill competency gaps

In the highly digitized world of AAS, a new set of competencies must be attained

These skills are personified as ‘The Platform Marketer’

These digital platform competencies must be addressed before implementing CCRM

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Identity Management

Audience Management

Consumer Privacy &

Compliance

Media Optimization

Platforms Utilization

Channel Optimization

Experience Design & Creation

Measurement & attribution

Marketing Technology

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All of these enabling capabilities are considered in the design and integration of the technology stack

Audience Platforms

Wor

kflo

w

Channel Execution Media Execution

Marketing Database

Identity Management

Application Integration

DSP Search Ad Serving Site SFA/Contact Center

Business Rules Engine

Personalization Engine

Decisioning Algorithms

Audience Management

Real-Time Data Transfer

Syndication

Connected Attribution

Forecasting/Simulation

Business Intelligence

Onboarding CDI/DDI Event Management

Customer 360° Preference Center Event Stream Cam

paig

n M

anag

emen

t C

onte

nt M

anag

emen

t M

RM

Messaging Mobile

Web Services APIs Tag Management

Analytic Management Platform

Data Management Platform

Decision Management Platform

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THE APPROACH

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Tomorrow’s Discussions

The Addressable opportunity

Delivering the experience

Leading Transformation

Ca

se

fo

r C

ha

ng

e 2

3

Business Case

Cu

sto

me

r E

xp

eri

en

ce

Executive Sponsorship and Program Governance

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5

6

7

8

Media

Channel

Analytics & Insights

Technology

Operating Model

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Blueprint & Roadmap

10

11 Benefits Realization

Change Integration

opening and welcome session - the... · • recognized by forrester ’03, ‘06, ’07 &’10...

Documents