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Smarter Marketing
                                                   in a Stretched World

RONALD VELTEN
Director Marketing, Communications & Citizenship
IBM Benelux
Economic times are
   challenging




                 © 2011 IBM Corporation
Theory states do not
cut back in marketing in times
         of recession




                       © 2011 IBM Corporation
Examples are plenty




                 © 2011 IBM Corporation
Examples are plenty




                 © 2011 IBM Corporation
But that was a decade ago




                     © 2011 IBM Corporation
Today's consumers are
more enlightened and
empowered than ever




                  © 2011 IBM Corporation
The marketing landscape
  changed signifcantly
   in the last 10 years




                   © 2011 IBM Corporation
But today, still most CMOs
  operate in old models
        while using
  traditional techniques




                     © 2011 IBM Corporation
Displaying bunny
on the highway behaviour,
 not acting upon change




                    © 2011 IBM Corporation
7 out of 10 CMOs state
     they are seriously
      underprepared
    to have a dialogue
with the smarter consumer



                         Source: ibm.com/cmostudy




                    © 2011 IBM Corporation
They do not know
  how to listen




                    Source: ibm.com/cmostudy




               © 2011 IBM Corporation
And have no clear
sight where and how
  to reach the client




                        Source: ibm.com/cmostudy




                   © 2011 IBM Corporation
Resulting in inablity
to tangibly demonstrate
    marketing’s value




                         Source: ibm.com/cmostudy




                    © 2011 IBM Corporation
marketing budgets
 are pressured




                © 2011 IBM Corporation
The inconvenient truth




                   © 2011 IBM Corporation
The inconvenient truth




                   © 2011 IBM Corporation
Not full
        enough


                   It is all a matter of
                        perception
Half-
Full




                                       © 2011 IBM Corporation
Not full
        enough


                   It is all a matter of
                        perception
Half-
Full




                                       © 2011 IBM Corporation
Scale back and
  save every
     euro

                                  All a matter of perception
                                         and choices
                 An opportunity
                  to pull away
                 from the pack




                                                        © 2011 IBM Corporation
Marketing during
   recession




                   © 2011 IBM Corporation
Customer Intimacy is key
                          Understand customer value
                               Gain and Retain
                                Drip Marketing
       8 IDEAS         Streamline operation and process
for marketing during       Cross the chasm in digital
     a recession
                            Proof everything or DIE
                               Reboot yourself




                                                  © 2011 IBM Corporation
It is all about
   customer intimacy

People working together
   in a structured and
customer centric manner
     to create value




                    © 2011 IBM Corporation
But if we want
to create and deliver value
   we must understand
    the indivdual client




                      © 2011 IBM Corporation
Meaning we need to
start listening and engaging
 with the individual clients




                       © 2011 IBM Corporation
But we still utilize data
 that give generic insights
about markets, not clients




                      © 2011 IBM Corporation
There is a
high underutilized opportunity
      in client analytics
 throughout the buying cycle




                       © 2011 IBM Corporation
So it is all about
     selecting, growing
 nurturing and maintaining
the most prospective clients




                      © 2011 IBM Corporation
It is not just about
the number of leads

 It is also about your
capabilities to convert
    these leads into
    loyal customers




                    © 2011 IBM Corporation
Conquer the game of
  ‘Gain and Retain’




                      Source: www.InsideCRM.com




                 © 2011 IBM Corporation
Optimize your interactions
  throughout the entire
    customer life cycle




                     © 2011 IBM Corporation
‘Drip Marketing’

Feed potential and existing
     customers with
  repeated and targetted
         touches


                            Source: www.InsideCRM.com




                        © 2011 IBM Corporation
Do not overflood them
with unsolicited or undesired
       bulk messages
      when it suits you



                           Source: www.InsideCRM.com




                       © 2011 IBM Corporation
Analyze            Decide




                                Marketing Automation offers
                                   an unique opportunity
                               to maximize marketing impact
Collect              Deliver




          Manage




                                                     © 2011 IBM Corporation
Analyze            Decide



                                    Marketing Automation
                                   enables both significant
                                   marketing effectiveness
                                 as efficiency improvements
                               by streamlining and automating
Collect              Deliver            campaign flows


          Manage




                                                      © 2011 IBM Corporation
Improved customer value & retention
        5-15% increase is typical

    Higher online marketing ROI
       15x-25x increase is typical

       Higher campaign ROI               Improving your
       15-30% increase is typical
                                      Marketing Effectiveness
     Increased response rates
        10-50% increase is typical

       Increased order value
        15-20% increase is typical




                                                          © 2011 IBM Corporation
More campaigns with same resources
              2-5x increase is typical

            Reduced cycle time
          40%-80% reduction is typical

       Reduced marketing costs                             Improving your
            20-40% reduction is typical
                                                          Marketing Efficiency
 Lower customer acquisition costs
          25%-75% reduction is typical

         Other business metrics
 revenue, profit, others vary by industry (assets under
     management, ARPU, #products owned, etc.)




                                                                            © 2011 IBM Corporation
Analyze            Decide




                                Learn all about it

                               Smarter Commerce
                                 Global Summit
Collect              Deliver
                                  (22-24 May)


          Manage




                                                     © 2011 IBM Corporation
Cross the digital chasm




                    © 2011 IBM Corporation
Both in Marketing ….




                  © 2011 IBM Corporation
And sales ….

 65% of a salesperson's
time is spent not selling




                     © 2011 IBM Corporation
Proof everything or Die




                    © 2011 IBM Corporation
We have the opportunity
      to move from
stretched to strengthened




                     © 2011 IBM Corporation
Marketing needs a reboot




                    © 2011 IBM Corporation
And it starts with us …




                    © 2011 IBM Corporation
Scale back and
  save every
     euro


                                  It is all about perception

                 An opportunity
                  to pull away
                 from the pack




                                                        © 2011 IBM Corporation
And choice …




               © 2011 IBM Corporation
But start adapting
      TODAY




                 © 2011 IBM Corporation
© 2011 IBM Corporation
© 2011 IBM Corporation
@ronaldvelten

 Linkedin.com/in/rvelten

ronald_velten@nl.ibm.com




                           © 2011 IBM Corporation

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Marketing in a Recession

  • 1. Smarter Marketing in a Stretched World RONALD VELTEN Director Marketing, Communications & Citizenship IBM Benelux
  • 2. Economic times are challenging © 2011 IBM Corporation
  • 3. Theory states do not cut back in marketing in times of recession © 2011 IBM Corporation
  • 4. Examples are plenty © 2011 IBM Corporation
  • 5. Examples are plenty © 2011 IBM Corporation
  • 6. But that was a decade ago © 2011 IBM Corporation
  • 7. Today's consumers are more enlightened and empowered than ever © 2011 IBM Corporation
  • 8. The marketing landscape changed signifcantly in the last 10 years © 2011 IBM Corporation
  • 9. But today, still most CMOs operate in old models while using traditional techniques © 2011 IBM Corporation
  • 10. Displaying bunny on the highway behaviour, not acting upon change © 2011 IBM Corporation
  • 11. 7 out of 10 CMOs state they are seriously underprepared to have a dialogue with the smarter consumer Source: ibm.com/cmostudy © 2011 IBM Corporation
  • 12. They do not know how to listen Source: ibm.com/cmostudy © 2011 IBM Corporation
  • 13. And have no clear sight where and how to reach the client Source: ibm.com/cmostudy © 2011 IBM Corporation
  • 14. Resulting in inablity to tangibly demonstrate marketing’s value Source: ibm.com/cmostudy © 2011 IBM Corporation
  • 15. marketing budgets are pressured © 2011 IBM Corporation
  • 16. The inconvenient truth © 2011 IBM Corporation
  • 17. The inconvenient truth © 2011 IBM Corporation
  • 18. Not full enough It is all a matter of perception Half- Full © 2011 IBM Corporation
  • 19. Not full enough It is all a matter of perception Half- Full © 2011 IBM Corporation
  • 20. Scale back and save every euro All a matter of perception and choices An opportunity to pull away from the pack © 2011 IBM Corporation
  • 21. Marketing during recession © 2011 IBM Corporation
  • 22. Customer Intimacy is key Understand customer value Gain and Retain Drip Marketing 8 IDEAS Streamline operation and process for marketing during Cross the chasm in digital a recession Proof everything or DIE Reboot yourself © 2011 IBM Corporation
  • 23. It is all about customer intimacy People working together in a structured and customer centric manner to create value © 2011 IBM Corporation
  • 24. But if we want to create and deliver value we must understand the indivdual client © 2011 IBM Corporation
  • 25. Meaning we need to start listening and engaging with the individual clients © 2011 IBM Corporation
  • 26. But we still utilize data that give generic insights about markets, not clients © 2011 IBM Corporation
  • 27. There is a high underutilized opportunity in client analytics throughout the buying cycle © 2011 IBM Corporation
  • 28. So it is all about selecting, growing nurturing and maintaining the most prospective clients © 2011 IBM Corporation
  • 29. It is not just about the number of leads It is also about your capabilities to convert these leads into loyal customers © 2011 IBM Corporation
  • 30. Conquer the game of ‘Gain and Retain’ Source: www.InsideCRM.com © 2011 IBM Corporation
  • 31. Optimize your interactions throughout the entire customer life cycle © 2011 IBM Corporation
  • 32. ‘Drip Marketing’ Feed potential and existing customers with repeated and targetted touches Source: www.InsideCRM.com © 2011 IBM Corporation
  • 33. Do not overflood them with unsolicited or undesired bulk messages when it suits you Source: www.InsideCRM.com © 2011 IBM Corporation
  • 34. Analyze Decide Marketing Automation offers an unique opportunity to maximize marketing impact Collect Deliver Manage © 2011 IBM Corporation
  • 35. Analyze Decide Marketing Automation enables both significant marketing effectiveness as efficiency improvements by streamlining and automating Collect Deliver campaign flows Manage © 2011 IBM Corporation
  • 36. Improved customer value & retention 5-15% increase is typical Higher online marketing ROI 15x-25x increase is typical Higher campaign ROI Improving your 15-30% increase is typical Marketing Effectiveness Increased response rates 10-50% increase is typical Increased order value 15-20% increase is typical © 2011 IBM Corporation
  • 37. More campaigns with same resources 2-5x increase is typical Reduced cycle time 40%-80% reduction is typical Reduced marketing costs Improving your 20-40% reduction is typical Marketing Efficiency Lower customer acquisition costs 25%-75% reduction is typical Other business metrics revenue, profit, others vary by industry (assets under management, ARPU, #products owned, etc.) © 2011 IBM Corporation
  • 38. Analyze Decide Learn all about it Smarter Commerce Global Summit Collect Deliver (22-24 May) Manage © 2011 IBM Corporation
  • 39. Cross the digital chasm © 2011 IBM Corporation
  • 40. Both in Marketing …. © 2011 IBM Corporation
  • 41. And sales …. 65% of a salesperson's time is spent not selling © 2011 IBM Corporation
  • 42. Proof everything or Die © 2011 IBM Corporation
  • 43. We have the opportunity to move from stretched to strengthened © 2011 IBM Corporation
  • 44. Marketing needs a reboot © 2011 IBM Corporation
  • 45. And it starts with us … © 2011 IBM Corporation
  • 46. Scale back and save every euro It is all about perception An opportunity to pull away from the pack © 2011 IBM Corporation
  • 47. And choice … © 2011 IBM Corporation
  • 48. But start adapting TODAY © 2011 IBM Corporation
  • 49. © 2011 IBM Corporation
  • 50. © 2011 IBM Corporation