Helping the CMO Succeed - eMetrics · October 2016 Helping the CMO Succeed . McKinsey & Company...

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Jason Heller, Global Lead, Digital Marketing Operations October 2016

Helping the CMO Succeed

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Understanding the CMO Agenda

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44 months

Spencer Stuart CMO Study March 2016

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The customer is empowered

The customer has high expectations

The customer is connected

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Fundamentally two key functions

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Accelerate customer acquisition

Increase customer value

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The customer decision journey has changed

Buy

Advocate Experience

Consider

Evaluate

Bond Nearly half

cannot measure key critical stages

of the CDJ …

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And it’s getting more complex in a multi-device, multi-channel world…

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The CMO needs help wrangling and activating data to create value

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Transaction data Media data

Social data

Third-party data Engagement data Call center data

Enhance targeting and

optimization of paid media

Enable personalization

of owned channels

Ad Sales

Data analytics

Technology

Internal ecosystem

External ecosystem

▪  Website analytics ▪  Mobile site analytics ▪  SEO analytics ▪  UX analytics

▪  Combines 1st and 3rd party data

▪  Enrich targeting ▪  Look-a-like models ▪  Media analytics

▪  Attribution ▪  Social analytics

E-commerce

Design

▪  Consumer insights ▪  CSAT ▪  Ratings & reviews ▪  Social listening

Sales

3rd party data

Paid & managed channels

VOC

Digital platforms

▪  Marketing activation

▪  Budgeting ▪  Strategy ▪  Resourcing

The customer

▪  CRM analytics ▪  Revenue ▪  Propensity models ▪  Churn models

New battleground: the customer data platform

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The modern marketer must be a master of addressability and data activation at scale

Anonymous data Brooklyn, New York

Source = Google Keyword = new iPhone features

4 page views Abandoned site on iPhone 6S page

Male 25-34 Drives luxury car

Owns a home Travels frequently

Customer ID Segment definition Value $430 per year

Last purchase was Sept 2015 Responded to family plan offer

Spends time in NY & LA

Identifiable data

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Creative iteration

Managing the content, offers, and experience the customer or prospects receives

Analytics model scores propensity for segments to convert or up-sell

Guided by a simple and effective organizing framework

Decisioning Design Customer scoring

Advanced analytics

Offer management

Distribution Marketing technology used to target addressable audience across channels

Delivering personalized experiences across channels

Creating a feedback loop to feed the data beast

Testing & experimental design

Data from disparate systems is aggregated in a customer data platform

Data 360°customer view

Adressability management

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Critical to understand data integration across the marketing technology stack

Web / mobile analytics, Campaign management / Content personalization

Data management platform (DMP)

Customer data platform Email / marketing

automation

Ad server

Affiliate platform

Attribution platform

Distribution paid channels

Content management system, website and mobile services

A/B / MVT platform

Advanced analytics

Distribution owned channels

SEM bid management tool

Demand-side platform (DSP)

Marketing datamart

Core data and decisioning

Tag manager

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Analytics in action – Agile marketing practices are a vital component to operationalize analytics capabilities

2 week sprint

Daily

Backlog Output Sprint planning

Input from stakeholders

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Yet speed and agility are still catching up to marketers’ aspirations

Length of time to get a campaign idea to market

>1 year 6 – 12 months

4 - 6 months

1 – 3 months

<1 month

3% 12% 24% 30% 29%

Average Time to

market 8.1 months

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Five core beliefs to mobilize the organization for data activation at scale

1 2 3 4 5

Mobilize cross-functional leaders around the opportunity

Define value at stake, secure cross functional engagement

Motivate a sense of urgency

Get creative about navigating the legacy

Be relentless about solutions

Shift legacy IT projects into marketing Opex

Walk before you run Fortify the foundation, prove ROI

Then develop complex capabilities at scale

Prioritize “lighthouse” projects to kick-start execution

Define primary use cases and rally around them

Pursue the biggest opportunities first

Let data activation drive your new marketing operations model

New roles and processes around strategy and orchestration, campaign management, content and creative, data and analytics

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4x digital revenue

25- 150%

conversion rate improvements

Putting it in context – some recent big payoffs

War room BAU

1-2 tests every

2 months

50+ tests per year

6x

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You cannot manage what you do not measure … ... model, and metabolize

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Jason Heller Global Lead, Digital Marketing Operations

Jason_Heller@mckinsey.com

@jasonheller