How to Master the Addressable Customer Experience

© 2015 Merkle. All Rights Reserved. Confidential1
How to Master the Addressable
Customer Experience

Merkle Overview
• Largest privately-held agency in U.S., Ad Age Agency
Report ’14
• 3rd Largest Google Media Partner ’13
• 7th Largest CRM/Direct Marketing Agency, Ad Age ’13
• Fastest Growing US Search Agency, Ad Age ’13
• 19th Largest Mobile Agency, Ad Age ‘13
• Ad Age A-List: “Agency to Watch in 2012”
• NCDM Awards ’04, ’05, ’06, ’09, ’10, ‘11
• Recognized by Forrester ’03, ‘06, ’07 &’10
• Multiple DMA Innovation Award Winner ’10 ‘13
Quick facts Distinctive experience
Sustained 25% growth since 1989 Awarded and recognized
Revenueinmillions
• Privately held by current management since 1988
• 150+ world class clients
• 2,600+ Employees
• Headquartered in Columbia, MD
• 17 locations around the world
• Manage over 140 marketing databases
• Manage 3.7 billion 1st party customer records
• Inform over $10 billion marketing decisions annually
• Manage over $500 million in digital media spend
• Manage over 1 billion permission based emails
$182
$210
$246
$266
$315
$382
$460
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2009 2010 2011 2012 2013 2014 2015E

Today’s Speaker
John Lee
Chief Strategy Officer
Merkle
View the full webinar presentation here:
http://bit.ly/1RlBnHR

In the age of the customer, the driver of competitive
disruption is Addressability at Scale
Addressability at scale (AAS) is defined as the opportunity to create competitive advantage
through the ability to deliver targeted, personalized experiences to consumers.
AAS 5.0
Person ID
AAS 1.0
Name & Address
AAS 2.0
Phone #
AAS 3.0
Email Address
AAS 4.0
Cookie & Device ID
1990 2014The digital audience platform marketplace that is now at massive scale

Expanding Addressable Platforms Marketplace
Social
Media Platforms
Open Web
(DMP)
Ecommerce &
Publisher
Networks
Addressable
TV
EmergingToday

The shift is happening not only in where media is being
bought but also in how – programmatic
Source: Magna Global
Overall Digital Media Marketplace - $61B by 2017
$8B in RTB media by 2017 growing at 59% CAGR
$8B in “Custom Audience” by 2017
Over half of all digital media today is bought programmatically
76%
62%
47%
36%
27%
21% 17%
13%
18%
25%
29%
32%
32%
31%
11%
19%
28%
34%
41%
47% 52%
100%
80%
60%
40%
20%
0%
US: Programmatic Share (% of Digital media transactions)
RTB
Non-RTB
Non-
Programmatic
2011 2012 2013 2014 2015 2016 2017
Programmatic media has already taken over 50% of transactions (35% of spend) in the
US digital media market with RTB the fastest growing area

Digital video and TV will converge with programmatic
taking hold
Audience Targeting: Programmatic
Hand-Sold/Media-Based Audience-Based Programmatic
2013
Little Cross-Channel
Buying Coordination
No Integration
2016
Some Cross-Channel
Buying Coordination
Some Integration
2020
Full Cross-Channel
Buying Coordination
Full Integration
Source: Simulmedia and Jack Meyers

Devices and screens
BILLIONSOFDEVICES
YEAR
Source: https://www.ncta.com/platform/industry-news/infographic-the-growth-of-the-internet-of-things

© 2014 Merkle. All Rights Reserved. Confidential
1st party data will be a key differentiator

The core enabler of addressable marketing is the connected
customer view
Social
Print
Direct Mail
Display
Search TV/Vide
o
Mobile
Site
Product
LTV
Segment
Demographics
Life Events
Call
center
Meetings
Email
1st Party
Data
3rd Party
Data
CRM Database

CRM data is driving significant value already in the marketplace
CRM data performed 19x-
98x better than the advertiser
average in the Telco, retail
and Entertainment verticals
19x - Telco
CRM Data Performance
Advertiser Avg.
Performance
1x
55x
Retail
98x
Entertainment
2014 Neustar Digital Advertising Report

Audience Platforms
Integration of the marketer’s person-level data assets with
addressable audience platforms creates the opportunity
An Audience Platform is a digital technology that enables
targeted, personalized experiences to individuals
Customers
1st Party
Data
3rd Party
Data
CRM Database

Competitive advantage will live in the
addressable consumer experience

Awareness
Consideration
Engagement
Conversion
Commerce
Experience
The Expanding Mid Funnel
Customer Remarketing
Audience 1 Audience 2 Audience 3
Upper Funnel
Mid Funnel
Lower Funnel
Media
Sales/Service Experience
Traditional CRM
DM, EM, Re-Targeting
Unknown
High-value customer
Unknown
High-value customer
Low-value customer
The
Expanded Mid Funnel
Singular experience
from consideration
through conversion
CRM
Channel
Optimization
Performance
Media
Brand Media
Desktop Phone Tablet TV

The Old MetLife Funnel
Upper Funnel
Lower
Funnel

Today’s MetLife’s Expanded Mid-Funnel Experience
Online
Application
Web
Visits
TV Ads
Email
Remarketing
Affiliate
Paid Social
Programmatic
Landing Page
Inbound Leads
Inbound Leads
Outbound Leads
Online Leads
Fallout
Leads
Day 8-30 Day 1-7 Day 0-1
Actual
Experience
New Term Life
Customer
Mid-Funnel

Early success: Facebook Custom Audiences
MetLife’s Data
• Converters and Prospects
• Segmentation
• CRM Predictive Models
Facebook’s Data
• Registration Data
• Segments
• Look-Alikes
1st Party
Data
3rd Party
Data
M1
Directly deliver the
right content to the
right people
Facebook 1st
Party Data
Segment
Driven
Creative

MetLife Facebook Results
Increase in lead to sale ratio by
as compared to the next best performing channel
decrease in Cost per Lead in 2014
the Cost per Premium (CPP) of other display channels in 2014
“Working with their agency Merkle, MetLife used lookalike audiences to
find people more like its existing customers, MetLife ran ads that led
people to its “get a quote” website page.”
Sheryl Sandberg, Facebook
Facebook Earnings Call 10/28/14
2.4X
49%
less than half

MetLife’s mid funnel strategy creates a sustainable competitive advantage
But with the new mid funnel, the
underlying data, technology, and
operating model cannot be seen or
easily replicated
As with the old funnel, creative
execution and spend can be
observed by the competition

Allowing us to deliver Addressable Customer Experiences
Timing /
frequency Platform
Device /
format
Segment
A
Segment
C
Segment
D
Segment Lifecycle
Awareness
Product
Consideration
Request
a Quote
Start
Application
Process
CONTEXT
Message Offer
CONTENT
Treatment
Segment
B
Brand
Consideration
Segment
B
Brand
Consideration
4X
Google
Mobile A
1
Life
CONNECTIVITY

Context leverages everything we know about the
consumer
LIFECYCLE
BEHAVIORIDENTITY
SEGMENT
LOCATION VALUE
Client
1st Party Data
CRM
Facebook
1st Party Data
+

Motivational Insights
Segment/Behavior
Data
A massive amount of creative is required to support
numerous media and channel formats and audiences
Addressable Content Matrix
AUDIENCE
CONSIDERATIONS
BEST MESSAGE
Device
Appropriate
BEST CTA
Customer
Value
BEST OFFER
Behavioral Data
TIMING/FREQ

A mid funnel data and technology flow supports the the
connectivity of the 3Cs
Impression
Tracking
Addressable
Tracking
Cookie Platforms
People Platforms Measurement
Reporting
Attribution
Addressable
Audience
Mart
Conductor
DSP
Site
Personalization
RLSA
DMP
Onboarding

MetLife/Merkle’s Mid-Funnel Expansion Impact
Q1 - 2014Q4 - 2013

Scaling these experiences will require a new
mid funnel supply chain

What is a supply chain?

Today’s marketing supply chain is complex
MARKETER
CONSUMER

We look at today’s marketing supply chain in 3
fundamental layers
DATA MANAGEMENT
ANALYTICS & ORCHESTRATION
MEDIA & CHANNEL EXECUTION
CONSUMER
MARKETER

Upper funnel
Mid funnel
Lower funnel
Awareness
Consideration
Engagement
Conversion
Commerce
Experience
CRM
Channel
Optimization
Performance
Media
Brand Media
The challenge is that we have created supply chains for each
level of the funnel to optimize against different objectives

Typical situation
Brand Digital Media SiteDirect
Marketing
UpperfunnelMidfunnelLowerfunnel
CONSUMER
MARKETER
CRM Tech
Ad Tech
Site Tech
1st Party
CRM Data
3rd Party
Data
Publisher
Data
1st Party
CRM Data
Digital media team uses
little to no 1st party data.
Valuable media data never
gets back to CRM database
to inform offline
Ad, CRM, and Site all
managing multi-touch
campaigns with no
coordination and frequency
management
1st party data
sourced and
stored multiple
times and out of
sync

Digital Profile
Channel Database
Decision
Optimization
CMS
Site
Known Audience
Marketing Database
Campaign
Orchestration
MRM
Message Delivery
Today’s technology supply chain silos
Site Team CRM Team
Anonymous
Audience
DMP
DSP
Ad Server
Reporting
Media Agency

Typical situation
Brand Digital Media Direct
Marketing
Site
UpperfunnelMidfunnelLowerfunnel
CONSUMER
MARKETER
Strategy Content MeasureExecute
Multiple segmentations and
personas that are not linked
to the same dataBrand Agency
Digital Agency
CRM Agency
UX Agency
No single point of
accountability and team
integration for an end to end
experience
Access and
knowledge of
how to use
data limited to
CRM
Redundant functions
and resources re-
creating content and
deliverables
Multiple versions of the
truth with conflicting
reporting

Today’s opportunity calls for an integrated, streamlined mid
funnel supply chain
Awareness
Consideration
Engagement
Conversion
Commerce
Experience
CRM
Channel
Optimization
Performance
Media
Brand Media
MEDIA &
CHANNEL EXECUTION
ANALYTICS &
ORCHESTRATION
DATA MANAGEMENT

CHANNEL EXECUTIONMEDIA EXECUTION
Planning and execution of addressable digital and offline
media campaigns
Planning and implementation of addressable omni-channel
experiences
CONTENT & CREATIVE MANAGEMENT
Development, governance, and distribution of content for use across media and channel execution
MEASUREMENT & ATTRIBUTION
CAMPAIGN MANAGEMENT DECISION MANAGEMENT
Development of online and offline media campaigns using
known data
Management of business rules and algorithms that drive
real-time interactions
Management of analytics and reporting for targeting, measurement and optimization of addressable media and channel
interactions
STRATEGY & ORCHESTRATION
Development of customer strategy and orchestration of addressable programs and campaigns
DATA STRATEGY & SOURCING
Identification and sourcing of 1st, 2nd, and 3rd party data assets that fuel analytics and execution
Mid Funnel Supply Chain – Functional View
IDENTITY MANAGEMENT
CONSUMER
MARKETER
KNOWN DATA MANAGEMENT ANONYMOUS DATA MANAGEMENT
Creation and management of a unique, persistent consumer identity across media, channels, and devices both known and
anonymous
Management of the known consumer view Management of the anonymous consumer view

Mid Funnel Technology Supply Chain
TECHNOLOGY SERVICES ORGANIZATION
IDENTITY MANAGEMENT
CONSUMER
MARKETER

Mid Funnel Supply Chain - Supplier Landscape
IDENTITY MANAGEMENT
CONSUMER
MARKETER

Mid Funnel Supply Chain - Organization
IDENTITY MANAGEMENT
CONSUMER
MARKETER
Digital Media DM Brand Loyalty eBusiness Mobile Social Product Marketing
Digital Media DM Loyalty
Customer
Marketing
Product
Marketing
AnalyticsITeBusiness
Digital Media DM Loyalty
Customer
Marketing
Product
Marketing
Digital Media DM LoyaltyCustomer
Marketing
Product
Marketing
IT Analytics Digital Media eBusinessDM
ITDM IT Digital Media eBusiness

Organizing around the customer is critical

The Platform Marketer™ embodies the collective competencies
needed to successfully exploit the addressable funnel opportunity
Marketers must evaluate their own
competency level and decide how best to fill
gaps internally and with external expertise
In the highly digitized world of AAS, a
new set of competencies must be
attained by the marketer
We call the personification of those
collective skills The Platform Marketer
While new processes, data, and
technologies must be implemented,
these digital platform competencies
must first be addressed
j
Identity
Management
Audience
Management
Consumer
Privacy &
Compliance
Media
Optimization
Platforms
Utilization
Channel
Optimization
Experience
Design &
Creation
Measurement
and attribution
Marketing
Technology

There is a new organizational supply chain that needs to adapt
to the mid funnel opportunity
Measurement &
OptimizationAudience MgmtExperienceStrategy & Planning Technology
Portfolio Management
Segment Leadership
Experience Design &
Planning
Consumer Preference &
Governance
Product Management
Brand Leadership
Addressability
Optimization
Audience Platforms
Innovation and Testing
Measurement & Attribution
Decision Science
Marketing Stack
Consumer Data
1st Party Platform Leadership
3rd Party Platform Leadership
Digital Attribution
Personalization
Portfolio Strategy
Financial Management
Segment Leadership Machine LearningConsumer Advocacy
Identity Management
Consumer Data
Governance
Programmatic Media Mgmt
CIOCMO CCO COO CFO CEOCPO

A phased approach is required
Fully
Integrated
Experience
• Streamlined
campaigns
• Recommender
system enables
1-to-1
• Name/address
hygiene
• All addressable
media
• Web data
integration
• Two way
interaction
• Real-time
integration
• Real-time Two
way interaction
• Store & POS
integration
• Call center
integration
• Media &
Marketing Mix
• Segmentation
alignment
Offline
Channel
Integration
Digital
Channels
Integration
Mass Media
Integration
Digital Media
Integration
Email and
DM
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
CRM
Database

Thank you!
John Lee
617.360.1935
jlee@merkleinc.com
@johnleemerkle
View the full webinar presentation here: http://bit.ly/1RlBnHR

How to Master the Addressable Customer Experience

Recomendados

Recomendados

Mais conteúdo relacionado

Destaque

Destaque (10)

Mais de Merkle

Mais de Merkle (17)

Último

Último (20)

How to Master the Addressable Customer Experience

Notas do Editor