Science of NurtureSession 1

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Agenda

• IBM’s journey to Personalized MarketingJ. Gargan

• Science of Nurture OverviewJ. Gargan

• Nurture Context and DefinitionA. Gosling

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Marketing Built Around the Individual

Observation Implication

• Marketer’s have always observed, listened and researched to learn about heir customers.

• Compelling insights into market segments are the starting point for brilliant campaigns

• Marketing automation is transforming our profession.

• Interconnected systems are providing data today as never before - revealing patterns of marketing interactions which successfully create leads and help to efficiently progress opportunities

• Technology proliferation is exploding • The world becomes ever more dependent upon personal devices, digital media, and on-demand services

• Buyers are more prepared than ever and expect personalize engagements.

• We must know them across all touch points and meet their expectations

B2C companies have been at this for years, B2B companies are working hard to get there

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What is personalized campaign marketing?

What is personalized marketing?

• Tailored marketing interactions to individual characteristics and preferences….

• ….Resulting in improve relevance by meeting the customer needs more effectively and efficiently, making interactions faster and easier

How do we need to evolve our campaign capabilities to get there?

• Transform our data by capturing individual preferences under an established governance

• Enhanced offer management and delivery– Offer design and testing– Offer library, offer taxonomy

• Develop deep expertise in targeting, buying agenda and campaign design

• Enhance current Unica system to improve LDR effectiveness, deploy new nurturing capabilities and automate personalized web interactions

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Early Steps in Personalizing our Campaigns

Client’s engaged with personalize web

experiences and aligned offers

Clients receive tailor information / offers

based on individual behavioral insights

Client’s choose what information they

want and how they receive it

• Intelligent rule based system learns over time to select best offer

• Offer delivered based on client relevant geography and language zones

• Real-time measurement at offer and visitor levels

• Today, an individual can only opt-in or opt-out of all IBM Communications

• Granular opt-in / opt-out puts client in control of interests information delivery

• Avoids opt-out triggers

• End generic 3-touch nurturing

• Customized to each buying stage

• Planned , sequenced and continuously refined

• Predictive offer performance analysis

October, 2012 August, 2012 1Q 2013

Granular Opt-in / Opt-out

Automated / Customize Nurturing

Unica Interact

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Customized NurturingEducate DP/MSM to deliver personalized offers based on preferences & behavioral insights

New Marketing RolesDbM Nurture Strategist, transform MM/DP into Demand Management discipline

New Content ManagementApplication of brand differentiators, Blueprint taxonomy and API for management

New Labor StrategyLeverage regional marketing centers and redefine WW/IMT skill base

Offer Creation & ManagementOffer repository and library tailored to preferences and buyer’s journey

New Unica ModulesPersonalize web content delivery via Unica Interact

Unica Planning – workflow enablement

New Unica CapabilitiesNurture map flow charting, LDR call queues via advanced response scoring

Personalized Marketing Requires TransformationEnabling

Technologies

Nurture Planning

Standardized best practice for Science of Nurture, learning to deliver the right information at the right time

Persona & Buyers JourneyCommon methodology, development of +100 Personas, consistent application of buyers journey and hurdles

New Approach to BriefsPlanning for interactions and system of discipline briefs

New Campaign ProcessReady-to-execute campaigns

Process and Methods

Skills Transformation

MdB TransformationExpand to include contact personal preferences and behaviors

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Transforming IBM’s marketing capabilities requires focusing on 5 keys areas

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Ready to Execute responsibilities Design/Plan Campaign

WW RTE TeamsExecute Campaign

Country or GMC TeamsManage Campaign

Everyone

Create Campaign Overview

Design/Plan Campaign• Define Audience

Segmentation• Develop Offers & Assets• Create Digital Content• Plan Events• Design Initial Response Touch• Design Nurture Streams• Align with Sales & Enable• Select Channels & Enable• Define Response Lead

Management Plan

Output: Campaign Map, Performance and Budget Plan

• Create campaign and tactic codes in planning tools

• Use Campaign Map to create flowchart and launch campaign

• Publish web/digital content

• Capture response data

• Execute Event and upload attendee information

• Train and enable LDRs

• Inform and enable Sales Channels

• Review response performance

• Analyzing conversion percentages

• Conduct root cause analysis

• Adjust campaign design and execution

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SCIENCE OF NURTURE

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What is Science of Nurture

Science of Nurture it the strategic method by which we are going to advance our nurture capabilities from being process driven (3-touch) to being client driven (personalized marketing)

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Science of Nurture Education

What it IS

• Comprehensive education around a strategic METHOD of planning personalized nurture.

• This education is around the strategic development of nutrure

What it IS NOT

• Training around the use of the Unica tool.

• You will not see the tool, or be trained on the requirements of the tool during this training

Only DBMs will be required to operate the tool to execute the strategies developed as a result of this training

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In order to achieve this, we need education

Session 1: Putting Nurture into Context and Defining Nurture Framing nurture within the overall marketing transformation

Session 2: Identifying Objectives and Target Audiences Using the Buyer Journey and Personas Introducing methods that we will use to ensure client centricity

Session 3: Defining Content and Asset Needs Demonstrating how to evaluate content for quality and align it to client’s needs and preferences

Session 4: Capturing Response and Scoring The importance of the experience of response capture, and advancing our scoring capabilities

Session 5: Testing and Performance Optimization How to embed testing into your nurture streams & what to test

Session 6: Constructing Nurture and Changes in the Demand System How to plan out a nurture stream to pass to the DbM and what changes enable this capability

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Session One: Putting Nurture into Context and Defining Nurture

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1. PUTTING NURTURE INTO CONTEXT

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IBM has an aggressive 2015 growth target

In 2015•Software contributes nearly half of our segment profit

•Growth initiatives deliver $20B in revenue growth

•Growth markets’ revenue approaches 30% of IBM’s total

•Enterprise productivity delivers $8B in gross savings

•IBM generates $100B in free cash flow, returning 70% to shareholders

Hardware/Financing Services Software

Operating PTI/EPSSegment Operating PTI

Operating EPS

At Least $20B

00 01 02 03 04 05 06 07 08 09 13 14 15121110

At Least $13.25

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Deliver high-quality validated leads to Sales – from both established clients and net new accounts

Quantity

Assist Sales to win, to win bigger, and to win more often

Quality

$1 billionAverage shortfall

20%Pipeline yield

Historical pipeline starting position and resulting yield will not enable us to meet our 2015 Roadmap goals

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0

20,000

40,000

60,000

80,000

100,000

120,000

2008 2009 2010 2011

Traditional Tactics Digital Tactics

0123456789

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2008 2009 2010 2011

People Reached

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1015202530354045

2008 2009 2010 2011

Number of Touches

Until 2011, our answer to increasing pipeline opportunities was to increase messaging activity

Millions Millions

Marketing Tactics

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With the transformation of the IBM Demand System encompassing three areas:

Use what makes our brand unique to increase the quality of our work

Align Marketing & Sales across the end-to-end system

Make the way we generate and manage demand truly “smart”

Execution that is distinct from competition will drive greater yield from existing pipeline.

Includes:• Adoption of MAP segmentation• Consistent RTM and enablement• Campaigns linked to sales plays• Common quarterly calendar

Includes:• Deployment of Unica• Agile methods• Data and analytics

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Nurture is aligned to our Demand System goals

Nurture is part of the end-to-end system and will build collaboration with Sales by ensuring that the responses most likely to convert to opportunities are passed to an LDR

Nurture is the means to make our case with expertise and proven outcomes and provide opportunities for collaboration

MAT is the facilitating technology that enables Nurture delivery in support of campaigns and Sales Plays

Demand system goals

Nurture alignment

Build an end-to-end system that has operational rigor and collaboration with Sales

at every point

Leverage the IBM brand differentiators to drive quality and increase yield

Fully leverage technology to make the way we manage demand truly smart

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This alignment then drives our actions

Demand system goals

Build an end-to-end system that has operational rigor and collaboration with Sales at every point

Leverage the IBM brand differentiators to drive quality and increase yield

Fully leverage technology to make the way we manage demand truly smart

Nurture alignment

Focus on our target clients, instead of on our products, technology or internal processes

Design our content to communicate what a client needs to understand vs. what we want to sell

Define Nurture beyond eNurture and employ a rigorous client focus across all client touch points

What we need to do

Nurture is part of the end-to-end system and will build collaboration with Sales by ensuring that the most likely to convert to opportunities are passed to an LDR

Nurture is the means to make our case with our proven outcomes and expertise and provide opportunities for collaboration

MAT is the facilitating technology that enables Nurture delivery in support of campaigns and Sales Plays

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If we do this, we will achieve

Increase in winsIncrease in response

to Validated Lead conversion rates

Increase in Sales Accept rate