Move from campaigns to customers: marketing to today’s digitally savvy consumer

Sandy Martin Sr. Strategy Consultant,

Welcome to the next era of marketing.

Strong individual relationships…

But no scale.

Great scale…

But at the expense of the relationship

How do we deliver amazing individual experiences, only

at massive scale?

Deliver individualized experiences: Build lasting relationships:

Sources: Responsys consumer survey, 2013 Adobe Digital Index, 2012

Those who individualize experiences & build relationships are rewarded.

Disin

tere

stsm

eV

alu

es

its

cust

om

ers

Und

ers

tan

ds

my n

eeds

213%

196%

193%

183%

138%

142% 184

%

Source: Responsys survey data, 2013Consumer reactions to brands who deliver individualized experiences vs. not

Relationship Era companies earn positive consumer sentiment at a significantly higher rate

Campaign Era brands earn negative consumer

sentiment at a significantly higher rate.

Has

earn

ed

my loyalt

y

Resp

ect

sm

e

Doesn

’t reco

gnize

me in

div

idually

Frustra

tes

me

Consumers are flocking to brands that can deliver individualized experiences.

“Retailers spend almost 80% of their interactive marketing budgets on mass acquisition vehicles.”

Campaign dictates the message.

Campaign dictates the channel.

Campaign dictates the timing.

Campaign dictates the audience.

But marketing today is still driven by the campaign, not the individual consumer.

3% Converted

$The Mass Market

TheTransaction

Back to the start for re-conversion.

97% Ignored…or Annoyed

Old Mindset: How do I maximize campaign conversion?

The consumer has moved on.

Half of consumers outright ignore non-personalized mass marketing communications.

Marketers get stuck in a “Campaign Crisis”

This is not A theoretical exercise.

Point of Disengagement

Customer retention vs. send volumes for F500 publisher prior to moving to the Relationship Era

Most valuable customers are the most affected.

Point ofDisengagement

“Companies will be better off if they stop viewing customer engagement as a series of discrete interactions [i.e. campaigns] and instead think about it as customers do: a set of related interactions that, added together, make up the customer experience.”

It’s time to move into the next era of marketing.

It’s time to flip the model.

Mass Market

$

Transaction

Build profiles & capture

permissionsIndividually targeted

messagesdeliver

3x Higher Conversion

Relationship

New Mindset: How do I deliver amazing individual experiences?

$

TransactionRelationship

Orchestratedexperiences deliver5x higher conversion

Mass Market

New Approach:Focus on the individual relationship.

It Starts With a Customer Journey.

Your marketing strategy needs to align with consumer behavior.

21

Know me. Consumers expect you to know them across all digital channels

Engage me. Consumers demand a relevant, engaging consumer experience

Lead me. Consumers want you to anticipate future needs to maintain engagement and loyalty

Today’s consumers are cross-channel

Low

High

In-store Purchase, Opt-in

Mobile Message

Social Share

Cross-Sell Message

Targeted Cross-Channel Messages

April 12, 2023 22

Cust

om

er

Valu

e

Customer Activity

Customer Purchase

Customer Activity

CUSTOMER JOURNEYUsing Marketing to Move From Low to High Value

(2,500,000)

(2,000,000)

(1,500,000)

(1,000,000)

(500,000)

-

500,000

1,000,000

1,500,000

Repairing Relationships Building Relationships

Engagement Index

Most Active

Least Active

Implement re-engagement programs to activate dormant audience

Em

ail S

ub

scri

bers

Use analytics to identify decreasing engagement velocity and mitigate before dormancy settles in.

Drive customer engagement with customer segmentation and targeted messaging

RELATIONSHIP METRIC: Email Engagement Index

24

?

?

?

Customer Activity

Cust

om

er

Valu

e

Customer Purchase

Customer Activity

CUSTOMER JOURNEYWhat Happens When Customers Leave the Optimal Path?

An

aly

tics C

om

ple

xit

y

Traditional Reporting / Insights (campaign focus).

Enterprise Analytics(CRM focus)

Actionable Analytics(results focus)

Benefit:Enterprise level customer insights

Challenges: Complexity of analysis often makes it difficult to act on Often difficult to get analytics team to focus on digital mediaInsights and recommendations are made independent of technology / execution

Benefit: Channel specific insights

Challenge: informative but not deep enough to drive change

Benefit: Customer-led analytics, focused on “actionability”

Opportunity: Leverages all the customer data that mattersInsights and recommendations integrated with technology

USE ANALYTICS:Actionable analytics drive results

Measurement Segmentation

Lifecycle Optimization

• Campaign• Channel ROI• Attribution

• Activity• Behavioral / Value• Attitudinal

• Velocity• Cross-channel• Loyalty

• Predictive• Next Action• Test & Learn

Marketing ROI Targeting

Marketing ROI Proactive

ANALYTICS FRAMEWORK:Core Building Blocks

27

Analytics Insight: First PurchaseNew Prospects who show an initial pause in engagement are 57% more likely to make a first purchase if they are show a targeted display ad.

Customer Activity

Cust

om

er

Valu

e

Customer Purchase

Customer Activity

Low

High

KNOW ME:Using Analytics to Reveal New Marketing Opportunities

This is individualization, automation and orchestration in action!

ENGAGE ME:Integrated Lifecycle Display Program

29

Analytics Insight: Customer ChurnCustomers who haven’t clicked in 30 days are 50% more likely to churn.

Customer Purchase

Customer Activity

Low

High

Customer Activity

Cust

om

er

Valu

e

KNOW ME:Using Analytics to Reveal New Marketing Opportunities

Activity

Behavioral

Attitudinal

• Engagement by Channel• Recency• Frequency

• Past Purchase• Content Consumed• Customer Value

• Psychographic• Customer Modeling• Brand Integration

• Drives channel preference• Foundational layer for additional

segmentation attributes

• Drives message content• Refines customer targeting, offer

optimization

• Drives audience profiling• Integrates brand and direct to consumer

1

2

3

+

Customer Segmentation Approach

Activity Segment

• Starts the marketing process

• Leverages email lifecycle stage

• Determines marketing program

Behavioral Segment

• Leverages past behavior information – email click, website browse, past purchase

• Prioritizes product category based on segment score

At-Risk SegmentChurn Mitigation Trigger

Prod Cat 1: DressesProd Cat 2: Shoes

+ = Churn Mitigation Hero

Churn Mitigation Offer

Dress1 Dress2

Shoes1 Shoes2

Dynamic Lifecycle Program: Churn Mitigation

Activity DrivenBehavior

Driven

Ex:

ENGAGE ME:Customer Churn Mitigation Program

32

Analytics Insight: Customer Loyalty Active customers are 31% more likely to connect with you on Facebook. Customers who connect on Facebook also drive 43% more sales.

Customer Purchase

Customer Activity

Low

High

Customer Activity

Cust

om

er

Valu

e

KNOW ME: Using Analytics to Reveal New Marketing Opportunities

Know me: Put customers first by turning consumer data into actionable marketing asset.

Engage me: Go from campaigns to customers by matching message & channel.

Lead me: Drive ongoing results with customer-led models and insights.

Customer Segments NSM Programs

Content Channel

ROI Attribution Predictive

Integrate & analyze customer data

Build action-oriented segments

Develop scalable lifecycle programs

Target content by customer segment

Select best channel based on consumer engagement

dynamic

static

0

10

20

30

40

50

60

70

80

90

100

0%

10%

20%

30%

40%

50%

60%

70%

Dormant Lapsed Loyalists Actives

Pu

rch

ase

Pro

pen

sity

In

dex

% o

f E

mai

l S

ub

scri

ber

s

Email Purchase Propensity

$0.00

$0.02

$0.04

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Au

g 20

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012

Revenue Trends

Delivered (thousands) Revenue (Hundreds) RPE Email Mobile Social Display Search

Channel Attribution

1

2

3

Determine marketing ROI and customer value

Adjust marketing spend with smart attribution

Move to proactive marketing programs

displaysocial

email

web

mobile

Putting It Together: Driving Scalable Customer-Led Marketing

Behavior segments drive smarter content, relevant messaging

Leverage past behavior to predict future behavior, proactive messaging

Mark

eti

ng

R

OI

Segmented message ROI

Predictive message ROI

ProactiveReactive

Moving From Reactive to Proactive Marketing

Optimize offers, cross-sell opportunities conversion rate, email ROI by identifying and targeting subscribers most likely to purchase

Identify email subscribers most

likely to unsub and trigger mitigation

message stream

ProactiveProactive

0

10

20

30

40

50

60

0%

10%

20%

30%

40%

50%

60%

70%

Dormant Lapsed Loyalists Actives

Em

ail

Un

sub

Pro

pen

sity

In

dex

% o

f E

mai

l S

ub

scri

ber

s

Email Unsub Propensity

0

10

20

30

40

50

60

70

80

90

100

0%

10%

20%

30%

40%

50%

60%

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Dormant Lapsed Loyalists Actives

Pu

rch

ase

Pro

pen

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In

dex

% o

f E

mai

l S

ub

scri

ber

s

Email Purchase Propensity

Predictive Insights: getting ahead of your customers

Activity Segment

• Starts the marketing process

• Leverages email lifecycle stage

• Determines marketing program

Behavioral Segment

• Leverages past behavior information – email click, website browse, past purchase

• Prioritizes product category based on segment score

New SegmentGrow Engagement Trigger

Prod Cat 1: Gift basketsProd Cat 2: Roses

+ = New Customer Hero

New Customer Offer (% Discount)

Basket 1 Basket 2

Roses 1 Roses 2

Dynamic Lifecycle Program: New Customer Expansion

Ex:

Predictive Modeling

• Leverages predictive model to determine optimal mix of category, product and price/offer

• Heavy use of dynamic content

Product x, price Y: Grilling & Wine, high price pointProd Cat 2: Roses, moderate price point

+

LEAD ME:Activity + Behavior Segmentation + Predictive Modeling

April 12, 2023 37

Marketing Orchestration:Individualized Experiences at Massive Scale

“Our approach is to give customers a chance to understand our brand and find the path they are interested in. Then we target messaging based on what they love.”

Build Profiles &

Permission

Start by capturing permission and building profiles across email, social, and the web.

DeliverIndividual

izedMessages

Deliver personalized interactions with dynamic content, targeted to each individual.

Build Profiles &

Permission

OrchestrateLifecycle

Interactions

Orchestrate interactions based on profiles and behavior throughout the customer lifecycle.

Build Profiles &

Permission

DeliverIndividual

izedMessages

Apply the same customer centric approach across multiple channels, like email and display.

em

ail

dis

pla

yCommunicate

AcrossChannels

Build Profiles &

Permission

DeliverIndividualized

Messages

OrchestrateLifecycle

Interactions

is Orchestrated.

How do you deliver the personalized experience you get from an agent, at massive scale?

Agent

startprogram

wait

5days

sendemailThanks for

starting

showdisplay ad

Eligible forgroup policy

+sendemail

Mobileopt-In

Stillactive? no

sendemail

Can you help

missingaps?

yes +send smsmessageMissing an item

send sms message

You’ve been approved

policyready?

yes +sendemail

Accept your coverage

endprogram

Agent Net Promoter Score: Digital Net Promoter Score:

vs.

Social

EmailWeb

Display

Mobile

-4 +38

Digitally orchestrated messages deliver a better personalized experience.

with Chris NickelManager, CRM & Direct Response Marketing, Epson

Q&A

Epson improved RPE by 800% by implementing browse abandon

program.

April 12, 2023 51

• Website had heavy traffic, but a very low conversion rate.

• Leveraged Adobe web data to automatically target customers based on products browsed.

• Revenue per Email is 800% higher than broadcast campaigns and program accounts for 10% of email revenue.

– Revenue isn’t generated until actual rental pickups occur.

– Customers are extremely price sensitive and are looking for the best rates right up until pickup.

– Many bookings and behaviors that will impact pickups happen off-website.

– Engaging customers (prospects) between booking and pickup has a direct impact on the bottom line.

Book

Pickup

Research

Visitors

CallersAggregatorsAgents

$

Dollar Thrifty challenge (and opportunity):Increase pickup rate

Dollar Thrifty solution:Eminder 2010 = Email

– Transactional booking confirmation emails delivered immediately

– Reminder emails sent when pickup date is within 2 days

Dollar Thrifty solution:eMinder = Email + Display

– Transactional booking confirmation emails delivered immediately

– Display ads shown when pickup date is within 7 days

– Reminder emails sent when pickup date is within 2 days

In-segment individuals reached with display ads converted 22% higher than those who didn’t see display ads, generated 22% realized revenue, and exhibited almost triple the site revisit rate.

22% increase

Pickup Rate Realized Revenue

22% incre

ase

Site Revisit Rate

177% incre

ase

47x ROI

Dollar Thrifty Results:47x ROI

ENGAGEDOpened and/or clicked, but made no reservation in the last 7 days

UNENGAGEDHave not opened, clicked, or made a reservation in the last 7 days

OPT-OUTUnsubscribed from emails in the last 30 days

What’s now for Dollar Thrifty

1. Drive Revenue– Leverage the low cost interactive marketing channels to drive significant revenue with a high ROI

2. Deepen Customer Engagement– Utilize various data sources to ensure relevant and timely communication

3. Improve Efficiency– Quickly set up top performing programs/campaigns by integrating with technology

4. Cross-channel Coordination– Integrate your marketing communications across multiple channels based on

customer preference and behavior

It All Comes Down to Four Objectives…

Interact Marketing CloudDelivering individualized experiences at massive scale.

“…current offering is 18 months ahead of the Contenders.”

The Forrester Wave TM Email Marketing Vendors, Q1 2012

Thank You.

Sandy MartinSr. Strategy Consultant, SandyM@responsys.com @sandylmartinResponsys, Inc.