"The Paradox of the Empowered Consumer" - Forrester Customer Experience Forum, June 2012 Tim Suther, Chief Marketing & Strategy Officer at Acxiom Richard Char, Global Head of Information Services at Citi

1. THE PARADOX OF THE
EMPOWERED CONSUMER…
IMPERATIVES & OPPORTUNITIES
TIM SUTHER
CHIEF MARKETING & STRATEGY OFFICER, ACXIOM
RICHARD CHAR
GLOBAL HEAD OF INFORMATION SERVICES, GLOBAL ENTERPRISE PAYMENTS, CITI
FORRESTER CUSTOMER EXPERIENCE FORUM, JUNE 2012
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2. THE PARADOX OF THE EMPOWERED CONSUMER
Empowered consumers have unlimited choice & information
> New opportunities for engagement
> But, disruptive to loyalty & margins
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3. THE PARADOX OF BIG DATA
The world’s most valuable firms use “big data” to drive value
> But, most value has come at the expense of brands
> Brands need to develop & control customer insight
…or be prepared to be the highest bidder for it
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4. IMPERATIVE:
YOUR MULTIDIMENSIONAL INSIGHT
> No one signal consistently describes or predicts consumer behavior
> Activate & evaluate these signals at scale, with speed
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5. IMPERATIVE:
INSIDE OUT
> Invest proportional to customer value
> Then, find those who think, look, or act like your best customers
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6. IMPERATIVE:
OUTSIDE IN
> Digital data is reaching a fraction of its potential
> CRM & traditional media need digital insights
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7. IMPERATIVE:
INTERSECTION OF INSIGHTS
> Brand customer insight + media contextual insight = maximum value
> Identify & protect your data rights
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8. IMPERATIVE:
TRUST
> Sensitive data is the most valuable
> Provide clear value exchange, transparency & choice
…or risk the wrath of consumers, regulators, litigators & activists
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9. 3 BIG OPPORTUNITIES:
> Improve marketing ROI: + 15-30%
> Improve customer gross margins: + 10-15%
> Improve pricing power: + 5-7%
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10. INTRODUCING RICHARD CHAR
Citi Enterprise Payments
Lifestyle Enabled Marketing:
Big Data Analytics for Consumer
Relevancy & Engagement

11. Cookies EnabledMarketing in the Real for
Then Came Cookies and Dynamic PayWorld?
Remember Static Measurement → ContentPerformance
Web-Like 1-to-1 Banner Ads?
 Dynamic content
 Commission-based business models
 Cookies?
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12. Lifestyle Enabled Marketing (LEM): A More Complete View of
Your Customers
Do you understand your current and potential buyers as a…
CUSTOMER? CONSUMER? PERSON?
You know what you But what did she buy with And what information
sold to the customer the other merchants she is she revealing about
and her service history frequents? who she really is?
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13. LEM: Model-Driven Targeting of Prospects and Existing
Customers
• Getting married / divorced
LIFE • Having a baby / new child
EVENTS • High school / college graduation
• Change of job type / occupation
INFREQUENTLY • Change of residence
OCCURRING • Starting a new business
• Accelerated spend in auto repairs
TRANSITIONAL
• Environmentally conscious spend
AND DAILY
ACTIVITY • Technology spend
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14. Leveraging Big Data and Advanced Analytics
An unmatched collection of filtered and analyzed to and distributed through …allows institutions to
data from multiple sources… generate targeted offers... Citi’s “touch points”… optimize marketing
and increase revenue
CITI ANALYTICS,
Citi Data SPEND PATTERN-TRIGGERS,
Citi Data FILTERS, ETC.
Client Data Offers
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15. The Problem with Email Offers
To date, LEM offers have been emailed. But . . .
 Customer opt in required to email
 Low open rates
Why?
Mistaken for spam.
When I am on my computer, I am busy with other things.
Offers not contextual. Not convenient to redeem.
Wrong place, wrong time.
“Empower me as a consumer.”
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16. 16
eVOUCHERS PUSH OFFERS
The Solution: Mobile Offers
eCOUPONS PULL OFFERS

17. Analytics Paradigm Shift
One Offer,
Which Customers?
One Customer,
Which Offer?
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18. Big Data, Big Analytics, One Offer
LOCATION ACTIVATE DEMOGRAPHIC
• Entering a GeoFence • Time of Day • Gender
• Entering an Overlapping • Day of the Week • Income Level
GeoFence • Seasons, Holidays • Age
• Leaving a GeoFence • Etc. • Persona
• Frequented GeoFence • Open to Buy
• Etc. • Number of Tx.
• Average Tx. Size
• Etc.
EXPRESSED PREFERENCES SPEND HISTORY MOBILE APP HISTORY
• Opt-Ins • Transaction Type • Offers Searched / Pulled
• Preferences • MCC • Offers Opened
• Location • Offers Activated
• Frequency • Offers Redeemed
• Etc. • Offers Expired
• Voucher Wallet
• Frequency
• Etc.
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19. Summing it up
The era of the empowered consumer: 5 imperatives drive 3 payoffs
Lifestyle Enabled Marketing transforms customer engagement
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20. Thank You
Richard Char
Citi Enterprise Payments
485 Lexington Avenue
New York, New York 10017
phone 212-783-4924
richard.j.char@citi.com
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