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How CMOs Can Unlock 'Power of One' Marketing

McKinsey partner Dave Edelman spoke at the June 4, 2014, DMA conference about how companies can be agile in the digital age. He focuses particularly on the organizational and operational implications. Learn more at the McKinsey on Marketing & Sales site [http://McKinseyonMarketingandSales.com]

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How CMOs Can Unlock 'Power of One' Marketing

  1. 0 There is a difference between offering digital services and being a digital competitor. @DavidEdelman Any use of this material without specific permission of McKinsey & Company is strictly prohibited DMA conference, June 4, 2014 McKinsey on Marketing & Sales
  2. 1 1 Shape the Customer Decision Journey Advocate Buy Experience Consider Evaluate Bond @DavidEdelman
  3. 2 Move upstream in the journey: A new house buying model Matt takes a picture of the house from his mobile app that instantly shows… With ability to schedule appointment With latest rates and approved loan amount. Flows into mortgage process @DavidEdelman
  4. 3 Propel the customer through personalization: “Before-time” credit scoring How they enter the site (e.g., search, banner) Surfing history (e.g., cookies) Internet specific data (e.g., location, social media data) RISK MODELS Segment-specific websites @DavidEdelman
  5. 4 Rethink your concept of segmentation… Product sales priority: Handwavers, Modeled proclivity, Vary in brand loyalty EXPAND CONQUER Usage priority: Not in market, Have upside potential, Vary in recency/response EMBED STIMULATE Loyalty or cost priority: Not getting best value, Vary in severity and recency of service problem RECOVER OPTIMIZE @DavidEdelman
  6. 5 Optimize for the best interaction at every contact Model finds best channels that match customer’s choice Relevant content pushed to channels Incentive to use digital channel or download an app More customized script for cross-sell of cards, investment, or other pdts Highly personalized encouragement to build balances Product view Customer preferences Up-sell/Cross- sell proposition + + Content management system segregates and assigns the information Credit card Mortgage Mutual fund Insurance Mutual fund Underlying model churns propensity to buy or to take another action @DavidEdelman
  7. 6 Non-stop test and learn playbook. On a weekly basis, design campaigns testing critical drivers of response Hypothesis generation Opportunity sizing Customer insights Design Launch & measure tests Design Targeting Timing Merchan- dising Offer Creative Landing page @DavidEdelman
  8. 7 Process: Example of agile ‘Test and learn’ approach Daily Huddle Daily Huddle WHO  Project Manager  Marketing Mgr  Audience/Targeting WHAT For 15 min  Development  Analytics  Creative  Synchronize between “Test and Learn” teams  Define clear accountability on tasks  Build cross-functional problem solving & collaboration  Quality Control  Marketing Ops WHERE: War Room @DavidEdelman
  9. 8 A Real-time Engagement Delivery (RED) program Analytics Customer data tracking & enrichment Analytical engine Specific customer recommen- dations Cross-channel micro- messaging via rapid test & learn Web enhancement Mobile (re)design Experience Decision- making processes and tools Cross-functional agile teams Learning mindset Organization @DavidEdelman
  10. 9 How will you become an agile, digital competitor? • What is the upside potential of a new prioritization? • Where are you in the journey? What stands in way? • How could you begin to scale personalization and optimization? @DavidEdelman
  11. 10 David Edelman Partner and Global Co-Leader, McKinsey Digital, Marketing & Sales David_Edelman@mckinsey.com @DavidEdelman @McK_MktgSales McKinsey on Marketing & Sales Marketing & Sales Videos Influencer Page @DavidEdelman

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McKinsey partner Dave Edelman spoke at the June 4, 2014, DMA conference about how companies can be agile in the digital age. He focuses particularly on the organizational and operational implications. Learn more at the McKinsey on Marketing & Sales site [http://McKinseyonMarketingandSales.com]

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