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DATA IS THE NEW BLACK
                            S            C

Winning in the era of the empowered consumer.




Tim Suther Acxiom CMO
     Suther,
Urcil Peters, VP, Demand Generation, Customer Intelligence Solutions, Marriott Vacation Club
International

The DMA Annual
October 4, 2011

© 2011 Acxiom Corporation. All Rights Reserved.
TODAY’S FOCUS
Today’s empowered consumer represents an interesting paradox

                           Never more options to reach
                             Never harder to engage



              In the age of the empowered consumer…
 brands need to cultivate & control multidimensional consumer insight.
                   Cultivate…to make every interaction count.
                           Control…to maximize value.
                 Multidimensional…to avoid misleading signals.



               Direct marketers can play a key role

           Opportunity to connect/extend targeting & measurement rigor
                But, need to be in the digital discussion more often
MARKETERS DEMAND INSIGHT
               > How much should be invested in marketing?
  STRATEGY     > What is the optimal media weighting?
               > What initiatives drive most value?

               > How do I better assess marketing’s true impact on sales & customer
                 value?
 PERFORMANCE
               > What ac o s most co bu e to o de ac from pe o a ce
                    a actions os contribute o or detract o performance?
               > How do I compare to industry leaders?

               > What prospects look, act or think like my best customers?
 ACQUISITION   > What is the most efficient way to reach them?
               > What is the optimal incentive?


               > What customers hold the highest future value?
   GROWTH      > What steps maximize relationship p
                         p                      p profitability?
                                                              y
               > What steps most engender loyalty?


  PROCESS &    > How do I make insights more actionable?
   SYSTEMS     > How do I improve consumer information breadth accuracy & timeliness?
                                                       breadth,
               > How do I better manage the volume, velocity and variety of data?
MULTIDIMENSIONAL INSIGHT IS FOUNDATIONAL
CULTIVATING & CONTROLLING
        MULTIDIMENSIONAL INSIGHT DRIVES VALUE

     +15 30%
     +15-30%                                +10 15%
                                            +10-15%                                 +5 7%
                                                                                    +5-7%
        Marketing ROI                   Customer portfolio value                  Points of margin

> Increase targeting efficiency &      > Improve health and breadth of      > Increase number of enduringly
  better attribute results to spend.
                               p         insight about customers.
                                             g                                loyal customers.
                                                                               oya custo e s
> Better influence & sense             > Acquire & extend more profitable   > Effectively cultivate word of
  consumer behavior.                     relationships.                       mouth.
> More effective media                 > Redirect less profitable           > Optimize use of pricing
  substitution. Coherently integrate     relationships.                       incentives.
  new media.                           > Establish CLV-oriented KPIs to     > De commoditize intent
                                                                              De-commoditize intent.
> Improve marketing results with         guide decision-making.             > Minimize auction risk of your
  trusted partners.                    > Optimize customer segments &         consumer insight.
> Recapture value from ad tech           multichannel contact strategies.
  intermediaries.                      > Increase number of recognizable
> Improve test & learn                   consumers.
                                         consumers
  performance.                         > Increase ability to recognize
> Integrate & rationalize systems to     consumers across channels.
  reduce cost.
> Faster time to market.
> R l ti
  Real-time personalized offers.
                      li d ff
BEST PRACTICE:
Cultivate & control these capabilities:

                                         Build & protect a central nervous
                                        system to help influence and sense
                                         consumer behavior at scale with               Enable personalized and
                                                      speed.                           coordinated engagement
          Activate                                                                       at every “moment of
  multidimensional insight                                                            truth”
                                                                                      truth” by fusing customer
    about consumers.                    Leverage a safe haven for trusted                  recognition with
                                         business partners to reach and                  proprietary analytics.
                                      engage mutual customers, minimizing
                                          risk and compliance issues.


Leverage these tactics:
> Personalized integrated & longitudinal messaging driven
  Personalized,                                              > Rebalance paid/organic search – use savings to drive
  by consumer or product triggers.                             quality demand.
> Drive conversion through personalization.                  > Arbitrage & substitute media based on consumer preference
> Optimize to customer life time value, not just response.     & value.
> Connect direct marketing targeting logic & measurement     > Integrate preference center into targeting logic.
  rigor to new media – email, display, web.                  > Assess current capabilities & identify gaps.
> Test/extend direct marketing logic to online remarketing   > Balance quick wins with structural improvement
                                                                                                   improvement.
  and branded advertising.                                   > Be part of the digital discussion.
GLOBAL AUTO OEM EXAMPLE
The Challenge                                      APPROACH          CUSTOMER
                                                                    RECOGNITION
> Need to increase sales and service by             FINANCE
  influencing buying behavior within the narrow
  window in which an automotive consumer            SERVICE

  considers potential products.                     SALES              CUSTOMER
> Siloed consumer information across business                             ID
  divisions resulted in an inaccurate and           PROSPECT
  incomplete view of customers and prospects.
                                                    PARTNERS
> Consumer data hygiene was not coordinated
  throughout the company causing duplicated
  efforts, slow response times and sometimes
  forgoing marketing campaigns altogether.        The Results
                                                  > Increased vehicle and service sales
                                                      • Over $500 million incremental revenue.
The Solution                                          • Delivered $36 million incremental profit for
> Built and implemented a data management                seasonal car care programs.
  solution.
  solution                                        > Annual cost reduction of $18.6 million.
> Built and implemented real time consumer        > Real-Time response average 2 seconds (SLA allows
  recognition management platform.                  6 sec).
> Built and implemented a centralized marketing   > Real-Time expanded to 5 channels – Web, Call
  platform.                                         Center, Service Desk on site, Sales Desk on Site
> C t d A l ti and S
  Created Analytic d Segmentation models.
                                t ti    d l         and Lead Engine.
GLOBAL FINANCIAL SERVICES EXAMPLE

   The Challenge
              g
> Attrition 21% higher than competitors for the
  same types of customers.
                                                   $   $   $       $       $
> Estimated spend was at least equal to their
  peers.
> Need to identify, understand and retain more
  of their best customers.
                                                               0       $   $$
   The Solution
> Use applied analytics to profile, segment, and               0       $   $$
  assess pockets of opportunity.
> Begin to match spend to customer value.
                                                               0       0   $

   Results
> Decreased attrition 24.3%.
> Net Profit increased $186mm over 3 years.
SUMMARY
To win the age of the empowered consumer, focus on:

                              Build & protect a central nervous
                             system to help influence and sense
                              consumer behavior at scale with      Enable personalized and
                                           speed.                  coordinated engagement
         Activate                                                    at every “moment of
 multidimensional insight                                         truth”
                                                                  truth” by fusing customer
   about consumers.           Leverage a safe haven for trusted        recognition with
                               business partners to reach and        proprietary analytics.
                            engage mutual customers, minimizing
                                          customers
                                risk and compliance issues.



Doing so typically results in…
                           in

     +15-30%                        +10-15%                          +5-7%
       Marketing ROI
               g                  Customer portfolio value
                                           p                        Points of margin
                                                                                 g
THANK YOU.

 Questions?




© 2011 Acxiom Corporation. All Rights Reserved.

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"Data is the new Black" #TimSuther #DMA2011

  • 1.
  • 2. DATA IS THE NEW BLACK S C Winning in the era of the empowered consumer. Tim Suther Acxiom CMO Suther, Urcil Peters, VP, Demand Generation, Customer Intelligence Solutions, Marriott Vacation Club International The DMA Annual October 4, 2011 © 2011 Acxiom Corporation. All Rights Reserved.
  • 3. TODAY’S FOCUS Today’s empowered consumer represents an interesting paradox Never more options to reach Never harder to engage In the age of the empowered consumer… brands need to cultivate & control multidimensional consumer insight. Cultivate…to make every interaction count. Control…to maximize value. Multidimensional…to avoid misleading signals. Direct marketers can play a key role Opportunity to connect/extend targeting & measurement rigor But, need to be in the digital discussion more often
  • 4. MARKETERS DEMAND INSIGHT > How much should be invested in marketing? STRATEGY > What is the optimal media weighting? > What initiatives drive most value? > How do I better assess marketing’s true impact on sales & customer value? PERFORMANCE > What ac o s most co bu e to o de ac from pe o a ce a actions os contribute o or detract o performance? > How do I compare to industry leaders? > What prospects look, act or think like my best customers? ACQUISITION > What is the most efficient way to reach them? > What is the optimal incentive? > What customers hold the highest future value? GROWTH > What steps maximize relationship p p p profitability? y > What steps most engender loyalty? PROCESS & > How do I make insights more actionable? SYSTEMS > How do I improve consumer information breadth accuracy & timeliness? breadth, > How do I better manage the volume, velocity and variety of data?
  • 6. CULTIVATING & CONTROLLING MULTIDIMENSIONAL INSIGHT DRIVES VALUE +15 30% +15-30% +10 15% +10-15% +5 7% +5-7% Marketing ROI Customer portfolio value Points of margin > Increase targeting efficiency & > Improve health and breadth of > Increase number of enduringly better attribute results to spend. p insight about customers. g loyal customers. oya custo e s > Better influence & sense > Acquire & extend more profitable > Effectively cultivate word of consumer behavior. relationships. mouth. > More effective media > Redirect less profitable > Optimize use of pricing substitution. Coherently integrate relationships. incentives. new media. > Establish CLV-oriented KPIs to > De commoditize intent De-commoditize intent. > Improve marketing results with guide decision-making. > Minimize auction risk of your trusted partners. > Optimize customer segments & consumer insight. > Recapture value from ad tech multichannel contact strategies. intermediaries. > Increase number of recognizable > Improve test & learn consumers. consumers performance. > Increase ability to recognize > Integrate & rationalize systems to consumers across channels. reduce cost. > Faster time to market. > R l ti Real-time personalized offers. li d ff
  • 7. BEST PRACTICE: Cultivate & control these capabilities: Build & protect a central nervous system to help influence and sense consumer behavior at scale with Enable personalized and speed. coordinated engagement Activate at every “moment of multidimensional insight truth” truth” by fusing customer about consumers. Leverage a safe haven for trusted recognition with business partners to reach and proprietary analytics. engage mutual customers, minimizing risk and compliance issues. Leverage these tactics: > Personalized integrated & longitudinal messaging driven Personalized, > Rebalance paid/organic search – use savings to drive by consumer or product triggers. quality demand. > Drive conversion through personalization. > Arbitrage & substitute media based on consumer preference > Optimize to customer life time value, not just response. & value. > Connect direct marketing targeting logic & measurement > Integrate preference center into targeting logic. rigor to new media – email, display, web. > Assess current capabilities & identify gaps. > Test/extend direct marketing logic to online remarketing > Balance quick wins with structural improvement improvement. and branded advertising. > Be part of the digital discussion.
  • 8. GLOBAL AUTO OEM EXAMPLE The Challenge APPROACH CUSTOMER RECOGNITION > Need to increase sales and service by FINANCE influencing buying behavior within the narrow window in which an automotive consumer SERVICE considers potential products. SALES CUSTOMER > Siloed consumer information across business ID divisions resulted in an inaccurate and PROSPECT incomplete view of customers and prospects. PARTNERS > Consumer data hygiene was not coordinated throughout the company causing duplicated efforts, slow response times and sometimes forgoing marketing campaigns altogether. The Results > Increased vehicle and service sales • Over $500 million incremental revenue. The Solution • Delivered $36 million incremental profit for > Built and implemented a data management seasonal car care programs. solution. solution > Annual cost reduction of $18.6 million. > Built and implemented real time consumer > Real-Time response average 2 seconds (SLA allows recognition management platform. 6 sec). > Built and implemented a centralized marketing > Real-Time expanded to 5 channels – Web, Call platform. Center, Service Desk on site, Sales Desk on Site > C t d A l ti and S Created Analytic d Segmentation models. t ti d l and Lead Engine.
  • 9. GLOBAL FINANCIAL SERVICES EXAMPLE The Challenge g > Attrition 21% higher than competitors for the same types of customers. $ $ $ $ $ > Estimated spend was at least equal to their peers. > Need to identify, understand and retain more of their best customers. 0 $ $$ The Solution > Use applied analytics to profile, segment, and 0 $ $$ assess pockets of opportunity. > Begin to match spend to customer value. 0 0 $ Results > Decreased attrition 24.3%. > Net Profit increased $186mm over 3 years.
  • 10. SUMMARY To win the age of the empowered consumer, focus on: Build & protect a central nervous system to help influence and sense consumer behavior at scale with Enable personalized and speed. coordinated engagement Activate at every “moment of multidimensional insight truth” truth” by fusing customer about consumers. Leverage a safe haven for trusted recognition with business partners to reach and proprietary analytics. engage mutual customers, minimizing customers risk and compliance issues. Doing so typically results in… in +15-30% +10-15% +5-7% Marketing ROI g Customer portfolio value p Points of margin g
  • 11. THANK YOU. Questions? © 2011 Acxiom Corporation. All Rights Reserved.