The document discusses how marketers can optimize customer value at every interaction in the buying cycle. It recommends four steps: 1) Using data to understand customers, 2) Creating a 360-degree view of each customer, 3) Leveraging insights about customers to inform media spending and engagement, and 4) Ensuring accountability and execution. The document provides examples of how major brands have increased revenue and profits by millions of dollars by taking these steps to concentrate spending on higher value customers through an integrated multichannel approach.

1. Tough Times Don’t Last.
Tough Competitors Do.
Tim Suther
SVP, Multichannel Marketing Services
Tim.Suther@acxiom.com
001-630-944-0416
www.acxiom.com
http://www.linkedin.com/in/timsuther
http://twitter.com/timsuther
http://www.slideshare.net/TimSuther

2. Living next to the train tracks
$112 billion of advertising is wasted each year in the US alone
$4 trillion excess brand valuation
22% of Americans feel advertising is credible…compared to 45% for talk shows
42% of consumer media consumption is online
7% of disposable income is now saved – was 0%
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3. Change May Be Necessary
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4. Four steps to higher performing
marketing & advertising
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5. 1. Data is the new black
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6. 1. Data is the new black
The Differentiated Value of Customers
30% of customers deliver the majority of profits
50% Add nothing
20% Cost companies money
SAS
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7. 1. Data is the new black
It’s not about you. It’s about them.
Relationship Profile Interaction History Brand Advocacy
• Customer segment history • Service history • Net Promoter Score
• Product ownership history • Promotion history • Degree of social influence
• Current & lifetime value • Response history • Brand metrics at customer level
• Share of wallet • Across channels
• Marketing budget by customer
Product propensities Media Preferences Channel Preferences
• Propensities across the conversion • Media consumption • Shopping pathway
funnel • Explicit preferences • Preferred buying channel
• Next best product to sell • Implicit preferences • Preferred research channel
• Likelihood to recommend • Context preferences • Preferred service channel
• Contact/cadence strategy
Geodemographics Interests & attitudes Monetary Indicators
• Age • Purchase intent by category • Income indicator
• Occupation • Recreational interests • Wealth indicator
• Gender • Social Causes • Discretionary spending
• Location • Real property indicators
• Ethnicity
• Family / size of household
• Life stage / life event
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8. 2. Create a 360 view
Remember every interaction and learn
• Explicit & inferred preferences
• Wants & needs
• Motivations & attitudes
• Social influence circle
• Cross-channel behavior
http://www.youtube.com/watch?v=9hq5jZrFTbE
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9. 2. Create a 360 view
The interrelated and overlapping effects of media
Lift to Search Email Lift to Brand
37%
24%
18%
15%
12%
7%
TV TV + Print TV + Online Display Brand Awareness Campaign Awareness Favorability
Display Lift to Conversions Email Lift to Offline Purchase
65%
42%
54%
49%
46%
11%
Week 1 Week 2 Week 3 Week 4 9 Purchase within 12 mos Purchase 4+ times

10. 2. Create a 360 view
Combine who, when, and where…and you’ll know why.
Awareness Purchase
Up/Cross-sell
Shopping & Consideration
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11. 3. The confluence of insight & media
• With most media, you never
know who you’re gonna get.
• Knowing who determines:
– How much to invest…if anything
– What to say…without guessing
• The typical marketing problem:
– Over-invest in low value
relationships
– Under-invest in high value
relationships
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12. 3. The confluence of insight & media
A look at “who” at world class brands
Cadillac American Express
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Hershey Allstate
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
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13. 3. The confluence of insight & media
…and their shopping behavior
300 300
250
Shopped at 250
Ordered from
Banana Republic BestBuy.com
UV Index
UV Index
200 200
150 150
100 100
50 50
0 0
PersonicX Consumer Segments PersonicX Consumer Segments
350 350
300
Ordered Flowers 300
Shopped at
online Ann Taylor
UV Index
250 250
UV Index
200 200
150 150
100 100
50 50
0 0
PersonicX Consumer Segments PersonicX Consumer Segments
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14. 3. The confluence of insight & media
Profile of traffic is much different at major online sites
MSN Yahoo
96 MM UV’s 148 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
eBay AOL
56 MM UV’s 70 MM UV’s
UV Index
UV Index
PersonicX Consumer Segments PersonicX Consumer Segments
Acxiom, comScore
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15. 3. The confluence of insight & media
300
…and at major networks 300
250 FOX 250 ABC
200 200
UV Index
UV Index
150 150
100 100
50 50
0 0
PersonicX Consumer Segments PersonicX Consumer Segments
300 300
CBS UV Index
250 NBC
UV Index
250
200 200
150 150
100 100
50 50
0 0
PersonicX Consumer Segments 15 PersonicX Consumer Segments

16. 3. The confluence of insight & media
Traditional media buy = FAIL on a massive scale
80% of online advertising fails
to reach its intended audience
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17. 3. The confluence of insight & media
Concentrate ad spend to drive 3-5x value improvement
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18. 3. The confluence of insight & media
Concentrating ad spend requires trusted intermediaries
Online Cable Print Social Mobile Gaming Apps
Acxiom Firewall
Portals Cable Print Social Mobile Gaming Apps
Adv CT
Acxiom Firewall
Adv
Customer
Database
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19. 4. It’s about accountability & execution
“… too many shortcomings to be seriously considered as a
means of communication. The device is inherently of no
value to us.“
Western Union memo on potential for the telephone, 1876.
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20. 4. It’s about accountability & execution
"We don't like their sound, and guitar music is on the way
out.“
Decca Recording Co. rejecting the Beatles, 1962.
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21. 4. It’s about accountability & execution
So, now what?
1. Identify customer value
2. Invest proportionally
3. Engage accordingly
4. Measure customer value
impact
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22. The Four Steps…summarized
Hidden in plain sight
1. Data is the new black
2. Create a 360 view
3. Confluence of insight & media
4. Accountability & execution
These are the lessons of direct marketing
Optimize customer value
at every interaction in the buying cycle
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23. Live examples
Optimizing customer value at every interaction in the buying cycle
4x “orders per thousand” 17x response
– Connecting print & digital – Connecting TV & offline
3x applications; 5x online $200M revenue / $4.5M
revenue; same head count OpEx savings
– Connecting call center & digital – Connecting call center & digital
2x online bookings $100M/yr EBIT impact
– Connecting outbound & website – Multichannel connection
7.5x website spend 9-figure/yr revenue impact
– Connecting mobile & email – Multichannel connection
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24. 10 Easy Money Ideas
“The Idea” “How & Why” “The Benefit”
1) Reduce wasted ad impressions, 1) Use Relevance-X Display to concentrate online 1) 3-5X revenue / ad dollar at other clients
concentrate spend on highest ad spend and then follow with Relevance-X TV. Existing customers respond 17X to
value consumers
prospects to digital TV ads
2) Recognize & connect with social 2) Use Relevance-X Social to recognize socially active 2) Match against 500M socially active
media influencers customers & prospects and implement and track individuals (~60-70% of any email list)
your direct social media marketing initiatives
3) Engage customers and prospects 3) Use Impact-X Mobile integrated with 3) Avg. mobile purchaser has higher income
via mobile lifecycle messaging Impact-X Email for likely halo effect & spends 2X over Web-only.
4) Examine call center patterns, use 4) Identify high-volume drivers of calls proactively 4) $2M / year cost displacement & $200M / yr
email to pre-empt expensive deliver relevant content to address needs that would influenced revenue at another client.
personal support have solved the reason for those calls.
5) Connect Web analytics with 5) Impact-X allows you to follow the digital 5) 2X website conversions achieved at
outbound messaging footprints to recalibrate your outbound another client.
marketing initiatives
6) When chat available on site, offer 6) Email a branded transcript back to site 6) This is the highest performing email
to send a branded transcript of the visitors. Include buttons to “buy” or to application at another client.
chat. “subscribe” to other services.
7) Perform an organic search audit 7) Identify opportunities to improve organic 7) 72% of Google clicks are organic. A
visibility, potentially reduce paid search. proper audit enables more free traffic
8) Implement lead scoring when 8) Build / implement predictive models to screen out low 8) The bottom three deciles can likely
receiving third party leads value leads provided. Consider a test with Acxiom be eliminated without impacting
CoReg services and / or e-list rental. conversions.
9) Improve the site experience 9) Target and test content with Impact-X Site. Implement 9) Personalized site experiences
Relevance-X analytics tags to measure conversion drive 4–15X ROI.
funnel progress by lifestage segment.
10) Retarget site visitors that do not 10) Relevance-X Display Retargeting : 53% of 10) Remarketing generates $4–10 revenue
convert shopping carts abandon. Remarket based on per ad dollar.
specific site behavior / lifestage.
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25. What could have been
owned
Portable Music
but couldn’t
become
It’s not enough…
A great customer base
owned
A great product
On-Demand Info A great strategy
but couldn’t A great team
become
owned
Darwin always wins.
Movie Inventory
Will you?
but couldn’t
become
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26. Thank You
The global interactive marketing services company
www.facebook.com www.linkedin.com www.twitter.com www.youtube.com www.delicious.com
/acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation /Acxiom
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