Investing in data and marketing technology is necessary to survive. Activating data is key to avoid being left behind by Amazon and the other walled garden platforms. Amazon's Trojan Horse platform for owning end-to-end customer experiences is actively deployed. What is your technology strategy?

1. Be Like Bezos
Enterprises Must Invest in Marketing Technology
or Risk Extinction
July 2017

2. Activating data is key to avoid being left behind by
Amazon and the other walled garden platforms.
Amazon’s Trojan Horse platform for owning end-to-end
customer experiences is actively deployed.
What is your technology strategy?
Investing in Data and Marketing
Technology is Necessary to Survive.
2

3. Table of Contents.
3
Section I: Amazon’s Marketing Technology is Underappreciated 04
Amazon’s Marketing Technology PlatformSection II: 07
Amazon’s Trojan Horse: Owning RelationshipsSection III: 10
Stack Like BezosSection IV: 13
How Enterprises Should EvolveSection V: 19

4. Amazon’s MarketingTechnology
is Underappreciated.
4

5. Amazon IsTechnology-First. Legacy Enterprises Are Not.
“Amazon is a
technology company.
We just happen to do
retail.”
- Werner Vogels, Amazon
CTO
Company
Market Value
2006
Market Value
2016
% Change
$17.5B $355.9B 1,934%
$214.0B $212.4B (1%)
$51.3B $40.6B (21%)
$12.4B $8.3B (33%)
$28.4B $13.2B (54%)
$24.2B $11.0B (55%)
$24.2B $8.8B (64%)
$18.1B $2.6B (86%)
$27.8B $1.1B (96%)
5
$0
$200
$400
$600
$800
$1,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
AMZN Stock Price (2006-2016)

6. Legacy Enterprises Are Being Left Behind.
Source: Bloomberg.com quoting a Bloomreach study.
Problem for Other Enterprises
― Only 1-way conversations with
customers
― Loss of relationship with customers
― Diminishing customer wallet share
As long as legacy enterprises continue to have one-way conversations with their
customers and make decisions without the use of data to enhance experiences,
tech-forward companies like Amazon will continue to erode their market share.
How did they do it?
― By focusing obsessively on the
customer
― Leveraging identity & CRM data
― Investing heavily in all forms of
marketing technology
In 2016 55%
of customers went to Amazon
first when searching for products
online, an increase from
44% a year earlier *
6
Enterprises are increasingly being intermediated by Amazon and it will continue
to get worse if they don’t take control now.

7. Amazon’s Marketing
Technology Platform.
7

8. Capture & Enhance Customer
Data
Model/Predict High Value
Customer Segments
Activate On/Off Owned
Properties
Personalize User Experience
From Ads to Offers
Measure & Optimize
1
2
3
4
5
Implementation Strategy: Marketing Funnel
Own the Customer Funnel and Control the
End-to-End Relationship.
Amazon invested heavily to enable full funnel digital automation from awareness
to transaction to loyalty.
8
Brand Awareness
Acquisition
Onboard
Engagement
Retention
Advocacy
1997
Identity
Data
CRM
Data
2017

9. The key is to leverage data for mass personalization across the entire user
experience with almost no human touch.
How does Amazon do this?
1. Deterministic Identity & CRM Data
2. AI/ML for Personalization
3. Real-Time Measurement & Attribution
4. Automated Optimization
Amazon’s Goal
Through personalization, commerce will evolve from a reactive process to
a proactive process and eventually into predictive commerce.
Deliver Personalization at Scale from Ad to Product Offer.
9Chart Source: www.upstreaminsight.com

10. Amazon’sTrojan Horse:
Owning Relationships.
10

11. The Echo, Amazon Go Stores, and the announced acquisition of
Whole Foods are recent examples of Amazon’s push to strengthen
customer relationships both on and offline, eventually putting
brands in a position to pay Amazon for access to customers.
11
We Believe that Amazon is in the initial stages of Owning
Most Brand to Customer Relationships.
Amazon can leverage true intent and historical purchase data in ways that the
other walled gardens, like Facebook and Google, cannot. Ultimately enabling a
true ownership of brand to customer relationships.
Brand Customer

12. However,
Most Enterprises
Have the Potential to
“Be Like Bezos”
by Capturing and Utilizing Similar
Customer DataThrough Better
MarketingTechnology.
12

13. Stack Like Bezos.
13

14. Some of these technology solutions have been opened up as services to
partners, but most of the stack remains proprietary to Amazon.
Predicting Preferences
and Behavior
Personalization
Engine
Attribution
& Optimization
Cross-Platform
Media Network
Customer Identity
and Their Devices
Data Collection
& Management
The Foundation of Amazon’s MarketingTechnology Stack.
14

15. Each of the individual technology solutions have been
developed by 3rd party providers and are currently being
used by tech focused enterprises.
Luckily, Amazon’s MarketingTechnology
Stack is Replicable.
15

16. New efforts to connect offline and online data has
helped to provide a holistic view of the customer,
increased audience reach, and enhanced cross-
channel insights and attribution.
1
16
Customer Identity &Their Devices
Data Collection & Management
Accurately determining a customer’s identity across
screens has become imperative to help paint a picture
of the full customer journey.
“[Cross-device] is a critical component in the marketplace
in order to provide mass personalization”
– Brian Anderson, Partner @ LUMA Partners
2

17. Predicting Preferences & Behavior
The next step is to leverage that data to predict
preferences and behavior through methods like
customer behavior modeling, eventually leading
to the discovery of new potential customers.
3
17
Personalization4
Personalized messages and content are created
and delivered to customers using advanced
machine learning, providing the products and
services that are most relevant to the consumer.
This leads to a lift in conversion rates and
ultimately revenue.

18. Content Distribution Network5
18
Attribution & Optimization6
A robust programmatic and data driven content
distribution strategy is key to enable real time
personalization and thus the full funnel
relationship with customers.
In order to maximize ROI and continually
optimize personalization and performance,
enterprises must first get a view of the customer
journey and decision making process.
Left Chart Source: www.titan-seo.com

19. Don’t Build. License or Buy Instead.
How Enterprises Should Evolve.
19

20. Replicating some of these solutions in-house is possible,
but building out the whole stack is not worth the risk or
necessary capital investment.
We believe that the best way to evolve is by partnering
with and buying 3rd party technologies that replicate
much of what Amazon has already built, at a lower cost.
Many enterprises lack the resources
and expertise to build everything
Amazon has developed.
20

21. Many Enterprises are Beginning toTake ActionThrough M&A.
21
Large technology focused enterprises are
acquiring a number of these solutions to
expand their capabilities and remain on
the cutting edge.
Other legacy players should do the same.
Source: Pitchbook.

22. Enterprises need to prioritize developing direct customer
relationships in a personalized and automated way, or risk
fading away.
They can do so by emulating what Amazon has already
built, and leverage their own unique data by investing in the
right set of marketing technologies.
22
Be Like Bezos.
OwnYour Customer Relationships.

23. Revel Partners.
Backing Entrepreneurs as Bold as Bezos.
Founded
11 Companies
$500+ Million
Combined Exits from
Founded Companies
8.8x Gross Return
Revel Fund I
Combined Network
of 2,500+
Industry Experts
JOE APPRENDI
General Partner
THOMAS FALK
General Partner
JOHNVINCENT
General Partner
CHRIS YOUNG
General Partner
JOSHUA ERNST
Principal
MARCOS
MARTINEZ-VILLALBA
Senior Analyst
RYAN ISONO
Senior Analyst
23
www.RevelPartners.com
@RevelPartners