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Integrated marketing for the customer journey
- 1. Integrated Marketing
Effective consumer interactions
using data, analytics and creative execution
for Integrated Marketing Management
Norbert Herman
1 © 2012 IBM Corporation
- 2. 1 Marketing Challenges
Today’s digital revolution and empowered consumer are producing many
tough marketing challenges that are leaving CMOs struggling to respond
Marketing Priority Matrix
1 Data explosion
Under- 2 Social media
preparedness 1 3 Growth of channel and device choices
70
2
4 Shifting consumer demographics
3
5 Financial constraints
4 6 Decreasing brand loyalty
60
5 7 Growth market opportunities
6
10 7 9
8 ROI accountability
8
11
9 Customer collaboration and influence
50 12 10 Privacy considerations
13
11 Global outsourcing
Factors
impacting 12 Regulatory considerations
40
marketing 13 Corporate transparency
0 20 40 60 Mean
2 Source: 2011 Global Chief Marketing Officer Study industry © 2012 IBM Corporation
- 3. 1 Marketing Challenges
Forrester asked 216 clients “Which are the biggest Customer Intelligence
challenges you expect to face in the next two years?”
3 Source: ttp://www.forrester.com/Tackle+Behavioral+Targeting+To+Modernize+Customer+Interactions/fulltext/-/E-RES61387 © 2012 IBM Corporation
- 4. 1 Marketing Challenges
The way consumers reach purchasing decisions is constantly changing and
this requires vigilance with ongoing innovative marketing execution
Source: http://www.kaushik.net/avinash/analytics-tips-complex-data-simple-logical-stories/?utm_source=social-media&utm_medium=twitterfbgp&utm_campaign=aktw
4
4
© 2012 IBM Corporation
- 5. 1 Marketing Challenges
Shoppers want retailers to provide personalized promotions and
recommend relevant – based on IBM Global Study across 14 countries with 23,466 respondents
Interest in retailer offers
55% 43%
Use my prior Use my prior
purchasing purchasing to
to offer me recommend new
promotions products
43% 36%
Invite me to Involve me in
events new product
ideas
Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
5
From Transactions to Relationships: Connecting With a Transitioning Shopper Global View 5
© 2012 IBM Corporation
- 6. 1 Marketing Challenges
How effective is your organization in the key metrics of delivering customer
life time value? Forrester report on “The State Of Retailing Online 2013: Key Metrics And Initiatives”
Source:
http://www.forrester.com/
The+State+Of+Retailing+
Online+2013+Key+Metric
s+And+Initiatives/quicksc
an/-/E-
RES89902#/The+State+
Of+Retailing+Online+201
3
6
6
© 2012 IBM Corporation
- 7. 1 Marketing Challenges
In most organizations, a small set of customers delivers the bulk of the revenue.
Large gains can be made with solutions that can reveal the areas for more focus
Marketing Challenges Visitors Revenue
8%
1. Drive visitors to the store
(online and brick/mortar
41%
2. Convert visitors to
shoppers 92%
3. Convert shoppers to loyal 59%
and profitable shoppers
No Previous Purchase One Previous Multiple Previous
Purchase Purchases
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-
7
marketing-to-existing-online-customers.html © 2012 IBM Corporation
- 8. 1 Marketing Challenges
According to Forrester, the US retail marketing budget is disproportionately
allocated. An effective marketing solution should provide the necessary alignment
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-
8
marketing-to-existing-online-customers.html © 2012 IBM Corporation
- 9. 1 Marketing Challenges
Analytics based actions and/or offers can tap into the five times higher
conversion rates of the top two quartiles with the right capabilities
Capabilities needed to convert profitable purchasers
Customer Insights
Trend Spotting
Customer Value Management
Highly Targeted Campaigns
Source: http://www.cmo.com/articles/2012/9/11/the-roi-from-
9
marketing-to-existing-online-customers.html © 2012 IBM Corporation
- 10. 1 Marketing Challenges
The patterns and trends you notice in your market sector can dictate the
approach you take towards higher Return On Marketing Investment
Leverage Point 5: Leverage Point 6:
Advocate Compensation Use platforms like Pinterest Application To Person Use of the mobile platform
to complement marketing to send intelligent, timely &
efforts through the help of location focused messages
the extreme loyalist to mobile users
10 © 2012 IBM Corporation
- 11. 1 Marketing Challenges
IBM’s marketing solution “Intelligent Advisor” is made up of hardware,
software and services that delivers results in the, operation and analytical
marketing areas (Gartner’s definition of Integrated Marketing Management)
Executional Operational Analytical
These processes analyze These processes support These processes support
customer data, segment the internal operations of executional and operational
customers and target the marketing department processes by driving
communications to and management of planning, optimizing
customers or partners resources outcomes and measuring
across multiple channels (e.g., budgets, projects, performance. Many of these
and points of interaction. HR and content/assets). processes are
Multichannel campaign MRM is the embedded in the
management (MCCM) is term we use to describe executional and operational
the term we use to the set of operational ones, but marketing
describe this set of processes and performance management
executional capabilities associated application (MPM), marketing ROI and
and processes. functionality. marketing mix optimization
Source: Gartner Nov. 2012
span campaign
http://my.gartner.com/portal/server.pt?open=512&objID=260&
mode=2&PageID=3460702&resId=2221322&ref=QuickSearc
management and MRM.
h&sthkw=marketing+analytics+leaders
11 © 2012 IBM Corporation
- 12. 1 Marketing Challenges
Intelligent Advisor is a holistic and effective solution that manages the
customer experience which drives conversion, and customer advocacy
Customer experience
Poor Sub Standard Standard Sub Optimum Optimum
Customer equity
None Fragile Weak Strong Robust
Customer advocacy
Dissatisfied Satisfied Pleased and Delighted
Customer Has
Customer – Customer – Committed Customer Who
Defected
Might Defect Not Committed Customer is an Advocate
12 © 2012 IBM Corporation
- 13. 1 Marketing Challenges
What is the anatomy of your customer’s experience and how do you maximize
this experience by capturing, analyzing and executing on all the possible info?
Aware / Engaged Transacting / Interacting Involved / Loyal
• Communication • Transaction points • Ongoing
Sources • Process Flows conversation
Doing • Process Flows • Data Extracted • Process Flows
• Data Extracted • Data Extracted
• Triggering
Thinking • Intuitive experience • Realized value
thoughts
• Triggering • Positive
Feeling • Supporting messages
Feelings experience
• Continuous
Experience • Initial Experience • Visual assistance
engagement
13 © 2012 IBM Corporation
Image Source - http://www.percepta.com/regions/europe/resources/blog/2012/03/30/owns-social-media-customer-service/
- 14. 2 Customer Journey Use Case
Meet Andrew! He loves watching and playing soccer. He is a regular online
shopper and also has multiple loyalty cards with his favorite stores.
• 25 year old single male Social Footprint
• Lives in Boston, MA
• Has 230 Twitter Followers
• Works in PR Trusted Brands: Sky,
Amazon, Motorola,
• Drives a Toyota Matrix 2012 Samsung, Apple, Adidas,
($20K Value) Nike
The effective Integrated Marketing Management solution will engage with Andrew
through the entire customer journey, thus increasing the total customer lifetime value
Aware Transacting Involved
Engaged Interacting Loyal
14 © 2012 IBM Corporation
- 15. 2 Customer Journey Use Case
The Intelligent Advisor solution is aware in real-time of prospects like Andrew
who are an ideal target for the retailer
Customer is Aware Solution Capabilities
Andrew receives a work bonus for the
month and decides its time to get a bigger
HDTV screen.
?
He posts a question in Twitter asking his
followers what is the best and latest
HDTV value for money.
The event is captured by the store and a
suggested message is sent to Andrew’s
iPhone with value and price comparison
links.
15 © 2012 IBM Corporation
- 16. 2 Customer Journey Use Case
Engaging with Andrew at the right time, on the right channel and with the right
message requires very accurate data capture and analytics
Customer is Engaged Solution Capabilities
Andrew is in a rush and does not have
time to look at the reply he just received.
When he gets home that evening, he
brings up Twitter on his iPad and reads
the provided information.
He posts a follow-up question asking
about the differences in a Panasonic
VIERA TC-P55ST50 versus the VIZIO
E601i-A3. A live agent picks up the
request and starts a DM conversation
16 © 2012 IBM Corporation
- 17. 2 Customer Journey Use Case
The biggest probability of conversion on an offer happens when there are
fewest steps and simplest path to complete the transaction
Customer is Transacting Solution Capabilities
Andrew receives the needed information
via Twitter along with an email follow-up
as he requested.
Andrew gets busy through the week and
forgets about the offer. On Saturday
morning he is walking through the
shopping center next to the store when
he gets another DM notify with 10% off
for the VIZIO E601i-A3 he wanted. He
walks into the store and redeems the
offer.
17 © 2012 IBM Corporation
- 18. 2 Customer Journey Use Case
Ongoing interaction with the customer ensures satisfaction and/or awareness
of any issues before the customer sends negative messages to others
Customer is Interacting Solution Capabilities
On his way home from the store, Andrew
receives an email with a link to the
Facebook page that has great tips and
FAQs for best viewing experience.
After a quick configuration of the TV, he
posts a Facebook like + quote on his
good experience with the store.
18 © 2012 IBM Corporation
- 19. 2 Customer Journey Use Case
Identifying and increasing the value of the customer requires ongoing and
dynamic models that are able to keep the client engaged
Customer is Involved Solution Capabilities
Andrew logs into his PC on Sunday to
register the warranty for his new TV. He
is shown a soccer-themed page with info
about how the combination of products
will offer him the perfect way to watch his
TV.
He sees the offer on the screen protector
is only valid if he buys today so he
decides to ‘click and collect’ at his nearest
store the following day.
19 © 2012 IBM Corporation
- 20. 2 Customer Journey Use Case
When the customer is satisfied with the shopping experience and begins to
trust the store, loyalty and advocacy are increased which leads to spend
Customer is Loyal Solution Capabilities
Andrew goes to the store to collect the
screen protector.
The check-out clerk recognizes Andrew
as a customer with high influence and
offers him a $25 coupon if he can email
and get three of his friends to click on the
link in the email for the latest HDTV
offers.
20 © 2012 IBM Corporation
- 21. 3 A Complete IMM Solution
A complete Integrated Marketing Management Solution contains the
capabilities needed for providing effective analytics embedded in the entire
marketing process like in seen Andrew’s journey
Solution Use Case Catalog
Integrated Marketing Management Solution
Improve customer Capture Analyse Execute
traffic to the stores Mobile
Improve percentage of Industry Data Entity Analytics
visits ending in a SMS
purchase Social Media
Increase efficiency of Earned
marketing spend Clustering
Web Data
Convince consumers
that you are relevant
Industry Data
Align customer Paid Pattern Detection
insight to product Outbound
Consumer
Reports Call
availability in regional
stores
E-Commerce Next Best Action
Share data Data
collaboratively with Owned Social
channel partners
POS Data
… Next Best Offer
Industry Data
21 © 2012 IBM Corporation
- 22. 3 A Complete IMM Solution
Getting insights from data to drive the business requires effective analytics
across all four dimensions of volume, velocity, variety and veracity
Veracity (increased odds for success)
Volume (ability to process for use) Velocity (at the speed of business) Variety (enrich correlations / outcomes)
Identify potential triggers
Grab the <5% of tweets of Correlate advertisement
for advertisement in
interest in 12 terabytes of with location, contract and
@ tweets created everyday
millions of XDR and
Network events in
seconds
consumer information for
in context delivery
Harness the Network Analyze more then 500 Harvest insight from the
data in real time. million Call Detail 80% of new data growth
Records per day coming from email,
documents, images, video
and social media
The Opportunity: Extracting and monetizing new and game changing
insight from an immense volume, variety and velocity of data.
22 © 2012 IBM Corporation
- 23. 3 A Complete IMM Solution
The key principles that deliver the differentiating factor in higher Marketing
ROI are based in the solution accuracy and business execution
Capture Analyse Execute
Customer
Hub
e
Feature Library Clustering
Decision Models NBA Optimization
• Data Timing - Capture data • Precision – The ability to • Relevancy – Use consumer
from all sources (structured / extract the most relevant trust patterns of engagement
unstructured) in batch and insights with highest precision
real-time mode • Speed – Engage with the
• Adaptive Learning – Dynamic consumer in the ideal
• Size - Import large amounts models able to keep pace with opportunity window
data for continuous learning customer and market changes
• Profitability – Optimal cost of
• Resolution – Link and resolve • Linked – Use insights relevant execution for the most
entity, privacy and security to business objectives and profitable results
aspects of the data across the organization
23 © 2012 IBM Corporation
- 24. End to End Integrated Marketing Solution
1. Define
Assessment Key Business
Marketing
Strategy Matrix KPIs
2. Customer
Configure
Locations Keywords
Features
IA Solution
3. Embed
Solution
Into People Tasks Workflow
Marketing
Process
4. Execute
Marketing
Plan
And Refine
Approach
24 © 2012 IBM Corporation
- 25. 4 Smarter Marketing Execution
Business alignment is key to driving the approach in the implementation of
the proper IMM capabilities that delivery the expected business results
Business Outcome Alignment Matrix
Define Outcomes Measure Action Analyze Sentiment Measure Activity
Business Behavior Attitude Volume
Metric Metric Metric Metric
The key variables driving business
results are realized by using IBM’s
proven gap analysis solution called
Enterprise Marketing Management
Assessment
25 © 2012 IBM Corporation
- 26. 4 Smarter Marketing Execution
The Marketing Capabilities Catalog provides a structured approach to
implement the marketing strategy using customer analytics
Improve Traffic Anticipate Improve Marketing Outsmart the Improve Brand
to the Store Customer Needs Efficiency Competition Perception
Use Real Time Targeted
View Purchasing Promotions From
Interaction to
Patterns Social Media
Drive Traffic Understanding Measure Brand
the Competition Performance
Create a 360 Targeted
Generate Leads Degree of the Promotions From
Customer Customer History
Location / Telco Personal Offers that
Stock Stores Browsing + CDR
Triggered Shopping Guide Counter the
Based on Trends based Offers
Marketing App Competition
Point of Sale Sales Agent
Interest Based
Based Engagement in
Offer in Store
Promotions Store
26 © 2012 IBM Corporation
- 27. 6 Appendix
Why IBM?
Technology
Truly customer-centric approach, methods & technologies Solutions
• Strategy based on customer investment model with Decision
aligned allocation of all resources to strategic growth Optimization
objectives
• Tactics aligned to strategies – customer treatments, Customer
relevancy and timing integrated with strategic resource Foundation:
allocation – all grounded in customer insights Action Clusters
Decision optimization applied at all levels
Real-time architecture – holistic solution with ongoing Application To
refinement and improvement from insights across the globe
• Customer Segmentation
Size and scale – IBM has resources in every discipline and • Optimized Marketing
geography Spend
IBM researchers are redefining where discovery happens by • Discovering New
Customers
stepping outside of the laboratory and challenging the status
• Increasing Customer
quo to solve some of the world's most complex problems. Lifetime Value
• Increased Advocacy and
Spend
27 © 2012 IBM Corporation
Notas del editor
- Source: The Gartner CRM Vendor Guide, 2013 - http://my.gartner.com/portal/server.pt?open=512&objID=260&mode=2&PageID=3460702&resId=2263416&ref=QuickSearch&sthkw=marketing+analytics+leaders