“Half my advertising

doesn't work ... I just don't know

which half!”

John Wanamaker (1838-1922)

“Advertising exists only to sell

something. It should be measurable and justify the results that it produced.”

Claude Hopkins (1866-1932)

"Because the purpose of business is to create a customer, the business

enterprise has two--and only two--basic

functions: marketing and innovation. Marketing and

innovation produce results; all the rest are

costs.”

Peter Drucker (1909-2005) 3

Digital Marketing 2.0• Data presented comes from The Digital Marketing 2.0

Study - a collaborative research effort between the Society for New Communications Research (SNCR), Human 1.0 and DataXu.

• The study incorporates an online survey conducted in October 2011-January 2012, as well as opt-in interviews of survey takers.

• The 300 survey respondents included those in the management, marketing, digital, IT, and social media functions of their respective organizations.

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78% of recently surveyed marketers

report struggling to make good use of their available analytics and customer data.

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Most marketers are unfortunately living

in…

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The Digital Stone Age

Source: http://www.flickr.com/photos/elka_cz/126813739/ (Under Creative Commons)

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Bad news for businesses

• Don’t have the right skills (individually or in combination)• Don’t have the right teams• Don’t have the right tools• Don’t have the right data (or it’s fractured into pieces)• Marketing, design, user experience and analytics are

rolled up into Customer eXperience Management (CXM) and mastery of each discipline (or all of it) is not going to happen overnight

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The real challenge is in manipulating huge amounts of data

in real-time

To make decisions that may affect thenext prospect/customer in a

different way than the last person

Source: The Great Wave off Kanagawa, "Under a Wave off Kanagawa” by Japanese artist Hokusai

And yet…

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30% lack the software/technology

to perform analytics ondigital marketing data

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Why? Analytics, like most administrative

functions... suck.

They are often the last interfaces built in commercial solutions, let alone “homegrown” systems

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55%of respondents

say

their organization “struggles to analyze”the digital marketing data that is generated

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Due to poor tools, fragmented systems,

skill shortages

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Results = Bad news for customers

• Businesses aren’t hearing your complaints (or praise)• They are bombarding you with messages you don’t want

(because analytics don’t exist, are out of date, or measuring the wrong data)

• Digital experience is marginal on “the normal web” and poor to non-existent on the mobile web – the biggest computing movement of our lives (the UX side of customer experience)

• Bottom line: We CAN and SHOULD do better for our customers, and our own businesses

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NETFLIX Misreading the tea leaves

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It’s the speed

That separate the winners from the losers in the 21st century

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(and accuracy)

of yourmarketing loops

OODA Loops

Source: www.thefabricator.com (graphic)Col. John "40 second" Boyd, USAF (model)

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How Target is using Big Data to Predict Behavior

Source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html

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Amazon is US...

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The key is…

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Customer Lifecycle Loop

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Sadly, 70% ofmarketers say

They don’t have or don’t know ifthey have a 360 degree view of their customers

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It’s not just postcards and keycodes anymore…

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Only 28%have the

information to confidently

tell their leadership

what delivers the highest marketing ROI

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What skills and disciplines are

missing?

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Only 25% say that analysis of

marketing data from IT

permits real-time business decisions

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IT doesn’t typically focus on real-time,

and aren’t marketers

Batch mode and siloed apps are the norm

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On the flip side

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62% rely on their marketing team

(CMOs, VPs, Digital Teams, etc.)

to make technology suggestions

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But Classic marketers are focused on design, branding, messaging & demand creation

While depth of technology skills and understanding complex IT systems, are not strong suits

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And 58% believe they lack the analytical

skills

and technology to perform analytics on marketing data

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Because “quants” haven’t been sexy in

business…(outside of financial services)

Until now...

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From the UX side of Customer Experience

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Smarter visual experiences?

Examine the screenshot collection of UX/Flow I’ve been building at:www.flickr.com/photos/dankeldsen/

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Addictive Interfaces• John Medina’s “Brain Rules”• 12 Rules• We should care about:

• #4 Attention: we don’t pay attention to boring things

• #9 Sensory integration: stimulate more of the senses

• #10 Vision: trumps all other senses

• #12 Exploration: we are powerful and natural explorers

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Speed Matters for Instagram

• Knowing how users use the app, they can anticipate the next action, and work behind the scenes

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Source: http://speakerdeck.com/u/mikeyk/p/secrets-to-lightning-fast-mobile-design?slide=82

Smart context & Details on the small screen

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Visuals, Discovery, Infinite Scroll

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“It’s like digital crack for 25-44 year old

women...”

Not uncommon for people to spend 2 hours at a time on pinterest - THAT is seriously sticky content

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Why should you care?

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83% of senior brand marketers state that “Customer

experience is among the most critical determinants of brand strength and business growth.”

CMO Council Research

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Recommendations

To move forward

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Where are your gaps? Where are you strong?

• People?• Skills?• Applications?• Systems?• Analytics?• Quants?• Digital Marketers?• Marketing-Savvy IT?• User eXperience?• Print?• Digital?• Social?• Mobile?

• What are the questions you can’t answer?

• Source of customers• Best customers• Most loyal customers• Most painful customers• Most likely progression as a

customer• Customer Lifetime Value• Predicted next actions• Best “intervention” times• Most effective channel• Best marketing spend in real-

time

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Because if you can’t get traction and

results now

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You’ll miss the benefits respondents stated as EPIC WINs

Increased Measurability and AccountabilityIncreased Customer Engagement

Lower Cost of Customer AcquisitionBetter Customer Insights

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Which would be a massive #FAIL

It will take work - but THAT is doable - and you better get started48

Get in touch:twitter.com/dankeldsenlinkedin.com/in/dankeldsendk@InformationArchitected.com617-933-9655

For free 30-minute debrief/consultationon where you are with

CXM, UX, social and more

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