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Welcome and Industry Trends
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Welcome
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Executive CRM Exchange Mission
• Recognized need for senior leaders to
exchange ideas and experiences on
the most critical CRM issues in the
industry today
• As we look around the cross-industry
and industry specific conferences, we
see the gaps
• Our Mission: Create an intimate
leadership forum where industry
leaders can gain perspective from
each other on CRM, based on real
experience – what is working? What
are the challenges? What is next?
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The Evolution
Customer Strategy as a Business
Strategy
Insurance & Wealth Management
Executive CRM Exchange 2010
Driving Profitable Growth in
Insurance and Wealth Management
Insurance & Wealth Management
Executive CRM Exchange 2011
Connected CRM: The Digital
Marketing Value Chain
Financial Services & Insurance
Executive CRM Exchange 2012
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Agenda
DAY 1
Time Session
4:00 pm – 4:15 pm Welcome Remarks
4:15 pm – 4:45 pm Industry Trends: The New Digital Marketing Value Chain
4:45 pm – 5:45 pm Keynote Presentation: Emerging Trends in the Digital Landscape
6:00 pm – 9:30 pm Cocktails and Dinner | The Outer Bar
DAY 2
Time Session
7:30am – 8:30am Breakfast | 28 Atlantic
8:30am – 9:00am Welcome Remarks
Module 1
9:00am – 9:45am Connected CRM and Big Data: What it Really Means for Marketing
9:45am – 10:30am Facilitated Table Discussions
10:30am – 10:45am Networking Break
Module 2
10:45am – 11:45am Connected CRM Value Creation: How to Integrate the Connected Consumer View Across Media and
Channels
11:45am – 12:30pm Facilitated Table Discussions
12:30pm – 1:30pm Networking Lunch
Module 3
1:30pm – 2:15pm The Connected CRM Enterprise: The Melding of Old and New Disciplines Into a Next Generation CRM
Organization
2:15pm – 3:00pm Facilitated Table Discussion
3:00pm – 3:30pm Closing Remarks
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What you can expect from this event
The Merkle team to
“set the table” on the 4
sessions and facilitate
Highly interactive
discussions – we kept
this event small for a
reason
Insights and
perspective on what
others are doing
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What we need from you
Ask questions throughout
and be informal
Be engaged in the
discussions – your peers
came to hear from you
Be open about what is
and is not working – no
one here has this nailed (Trust us, we know all of you!)
Have fun and enjoy the
Wequassett!
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Financial Services and
Insurance Trends The Emergence of the Digital Marketing
Value Chain
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Industry Forces Driving Investment in CRM
National Health Insurer
• Healthcare reform causing shift to customer-centricity
• Developing enterprise marketing intelligence and measurement platform for consumer marketing
Financial Services Company
• Growth strategy focused on efficient and effective leverage of multi-channel strength: branch, call center, and web
• Multi-channel marketing platform drives programs and measurement with a single view of prospect/consumer
National Auto Insurer
• Over 10 years of providing sophisticated media mix and DM campaign optimization
• Recently evolution/extension to digital media targeting & attribution
• Also extended infrastructure to pricing and underwriting analytics
National Life Insurer
• Slowing growth in agent channel and high-end market
• Strategy shifting to D2C, new middle market segment
• Implemented integrated segmentation, media mix and campaign management platform
Slowing Growth in
Traditional Distribution
models; shift to Direct-to-
Consumer
Increasingly diverse media mix
(digital, direct, mass) driving need
for complex attribution
capabilities
Evolving use of consumer
marketing view in sales,
service, and UW/pricing
Rapid growth and evolution of the
digital media
The Consumer-
Centric
Transformation
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Digital media plays a strong role in a diverse mix that is
driving consumer behaviors
Advertising Influence
Influence on purchase or product
switching decision by media Life Insurance
Brokerage
Investments
Retirement
Plans Auto & Home Health
Advertising on TV 36% 30% 30% 42% 40%
Search engine results 27% 22% 32% 21% 17%
Advertising in a newspaper 20% 19% 18% 10% 16%
Advertising on the radio 17% 10% 11% 10% 19%
Online banner advertisements 17% 10% 22% 14% 17%
Advertising in a magazine 15% 20% 14% 14% 14%
Direct mail to your home 15% 19% 19% 25% 19%
Advertising on billboards 13% 18% 11% 6% 21%
None 19% 24% 27% 25% 31%
*2011 Merkle Monitor Insurance and Wealth Management survey of 643 consumers
Percentage of Merkle Monitor* survey respondents who attributed each
media as influencing their recent insurance purchase decision
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The digitization of media delivery and consumption is
here and it is picking up speed…
Now Then
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Along with that, corporate spending is fast-following the
consumer behavior in both media…
Source: 2012 Kleiner Perkins Caufield Byers
Internet Trends D10 Conference
Print Radio TV Internet Mobile
0%
10%
20%
30%
40%
50%
% o
f to
tal m
ed
ia c
on
su
mp
tion
tim
e o
r a
dve
rtis
ing s
pe
nd
ing
7%
25%
15%
11%
43% 42%
26%
22%
10%
1%
Time spent Ad spend
% of time spent in media vs. % of advertising spending, U.S. 2011
$20B+
opportunity
Internet ad
$30B
Mobile ad
$1.6B
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…And in the enabling technology and analytics
2012 Display Media “LUMAscape”
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And with the shift in money to digital, the demand for
greater targeting and accountability has accelerated
How many people visit site, and
their profile
Cookie & Third Party data on
unknown individuals
Addition of data repository including
all media and CRM data
Targeting • Based on inferred match
between audience &
publisher
• Anonymous user behaviors
• Retargeting
• Anonymous user behaviors
tied to known individuals
(customers)
Optimization • Publisher performance • Anonymous cookie data Performance by customer
• Segment
• Value
Place
Anonymous and Individual
CRM Data Driven
Place
Anonymous Individual
Place Level of insight
Digital Media Evolution 2008 - 2012
Platforms &
Format
• PC
• Banners
• PC
• Display & Video • PC
• Mobile
• Tablet
• Display, Video, & Social
Contextual Real-Time Bid (RTB) CRM Targeted RTB
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The definition of “digital media” is evolving fast across
formats and devices
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From our vantage point, what is forming is a new media
value chain that is focused on individual, consumer level
optimization
Media
Data
Online
Data
CRM
Data
Inte
gra
tio
n
Execution
• Direct integration to media marketplaces
(exchanges, bidding platforms, etc.)
• Real time bid management and optimization
Attribution & Analytics
• Attribution
• Mix optimization and
planning
• Optimized plan by segment
• Individual level targeting
Data Management
• “Connected Recognition”
• Segmentation
• LTV
• Media history
The Digital Marketing Value Chain
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This increasingly data-driven, agile eco-system is taking hold across all media as digitization and innovation proliferates
Data
Man
ag
em
en
t
Da
ta In
teg
rati
on
Att
rib
uti
on
& A
na
lyti
cs
First Party
Data
(CRM)
Third Party
Online Data
Third Party
Offline Data
Inte
gra
ted
Med
ia &
Ch
an
nel
Exec
uti
on
E-Mail Address
Targeting & Content
Name & Address
Targeting & Content
Direct mail
Cookies
Bidding & Content
Display & Video
Cookies & Key Words
Bidding & Content
Search
PII & CRM Record
Treatment & Offer
Call center
Cookies
Real-time bidding
Mobile
Subscriber File
Targeting & Content
Social Handle
Targeting & Content
Social
Set-top box data
Targeting & Content
Television
Cookie & PII
Targeting & Content
Site
PII & CRM Record
Treatment & Offer
Point of sale
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So where does that leave the marketer?
What if the financial services marketer could choose
two million people who would be most likely to
purchase in the next month and target them directly
across media and channels?
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In 2010, we gave a presentation looking into the future at
the “Person Level Media Plan”
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Two years ago, if I told you that today…
Facebook would become a platform containing 300 million users
worldwide that could be targeted at an individual level based on your
list of top known prospects using name and email address… and we
could target using their social profile and their network of friends.
You’d have thought I was crazy…
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Two years ago, if I told you that today…
Amazon would become an advertising platform containing 150 million
users worldwide that could be targeted and bid on in real-time at an
individual level based on real-time shopping behaviors that could act
as predictive triggers for critical life events (diapers, moving boxes).
You’d have thought I was crazy…
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Two years ago, if I told you that today…
Merkle would operate an open data exchange that would allow
marketers to test any online or offline data source like IXI in individual
level digital media targeting using your predictive models…and that the
pricing would be demand driven based on performance.
You’d have thought I was crazy…
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2 years ago, if I told you someone in this room…
In the auto insurance sector would have a best-in-class data
management and digital media platform that would enable it to leapfrog
its competitors in targeting its high-converting, high value consumers
through anonymous digital media (and is already driving millions in
efficiencies).
You’d have thought I never worked in an Insurance company
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2 years ago, if I told you someone in this room…
In the Insurance sector would have a best-in-class enterprise
measurement framework that would allow for integrated top-down and
bottoms up attribution, budgeting and plan optimization across
television, DM, and digital for over $50MM in spend that was already
driving millions in incremental value…
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That day 2 years ago, if I told you that
…Would be releasing a CRM infrastructure that would encompass
a 360 degree view of its members that could drive real-time
personalization and next-best-offer management across all of its
marketing, sales, and service channels? (More to come tomorrow
on this)
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So where will we be 2 years from now?
RTB based display market at $5B
TV and digital continuing to
converge onto target-able, bid-
able platform
Maturing digital data marketplace
– scale, accuracy, pricing
“DMP” converges into the CRM
Database (and becomes useful)
Mobile ad platforms reaching
scale and targeting integrated with
desktop targeting
Media mix and digital attribution
become Enterprise Measurement
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And the real question is…..
WILL YOU BE READY?
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The challenge we face
TV & Radio
Display
Social
Search
Web
Retailer
Sales Rep
Call Center
Dell @
Position Expectation Product Price
Service Sales
Purchase Promotion Experience Customization
Me
dia
Ch
an
ne
ls
Brand Value proposition
Customer portfolio
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Our approach – Connected CRM
Ability to identify,
segment and
manage high
value customers
Ability to allocate
resources that
optimize ROI
and long-term
customer value
Ability to micro
target, customize
and personalize
media and
channel
experience
Ability to create
metrics as
currencies and
measure the
incremental
impact of each
marketing
activity
Ability to organize
in a fashion that
allows you to
respond to changes
in customer,
competitor or
marketplace
behaviors faster
than the
competition
Ability to create
and manage a
360º view of the
customer
Information Insights Targeting Measurement Optimization Agility
Connected CRM Capabilities Framework
A systematic way to identify, serve and retain high-value customers better than competitors by delivering
customer interactions that improve financial results, create competitive advantage and drive shareholder value.
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Our approach – Connected CRM
Information Insights Targeting Measurement Optimization Agility
Strategy
Value Segmentation Measurement
Execution
Analytics Integration Organization
Technology
Database Access Automation
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Merkle’s Evolution
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Consumer Macro trends are changing the landscape
Macro trends
...and marketers are responding Consumers are changing…
Mass consumer to consumer engagement
Changing consumer purchase behaviors
Shift in media consumption patterns
Focusing on big data and its ability to drive value
Embracing digital media and channels to
enhance customer experience
Putting the customer at the center of
business strategy
The digitization of
media and channels
Social networks at
scale Consumer mobility
Ex-customer
Non-buyer Prospect Suspect User Buyer Likely attrition
customer
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Big Data is creating a “big” opportunity for marketers
Transactions
Media data
CRM and enhanced data
Email and text data
Web log data
Social data
Voice / video
Va
riety
90% of the data that exists in
the world has been created in
the past 2 years
It is projected that the amount of
data we create will grow by 40%
each year
Availability
Usability
Knowledge
gap
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The digitization of media and channel is a key driver of
the opportunity
Contextual
Anonymous
Individual
Identified
Individual
Media Channels Targeting
Not available Emerging Somewhat available Widely available
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This has created a perfect storm for CRM
Flight to digital Direct to consumer
engagement Managing Big Data
Capitalizing on this will take a unique set of skills and executive commitment
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Merkle - Our Evolution
Era of
Connected CRM
Era of
Database Marketing
Era of
Direct Marketing
Data (1st Party Consumer DM
promotional history Transactional
Segmentation &
value Web site
Digital
Media
Data (3rd Party) DM response files & Compiled demographics Web behavioral
Data
Integration Merge purge & DM hygiene Reference based Matching Anonymous digital
Data
Management Mainframe Relational Big Data
Marketing
Analytics
DM targeting &
measurement
Segmentation &
contact strategy
Cross-channel mix &
Attribution
Interaction
management
Customer
Touchpoints Email Site Mobile Search Display Social
Direct
mail Telemarketing
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Merkle - Our Investments
DATA
Merkle announced last week
the acquisition of a leading
data exchange. The platform
will enable Merkle to create
the optimal mix of 3rd party
data to drive digital media
performance.
DATA INTEGRATION
Heavy investment in digital
data integration. Proof Point:
In the past 30 days Merkle
has processed and linked 6.1
billion page views for a top 10
retail site.
DATA MANAGEMENT
Investment in engineers and
capabilities in both Big Data
management and real time
services. Technology
partnering and API
development to interact with
the growing customer touch-
point technologies.
ANALYTICS &
MEASUREMENT
Both Merkle’s media mix
measurement business and
digital analytics business has
doubled in the past 12
months.
CONSULTING
In 2012 Merkle Launched its
Connected CRM consulting
capability. The capability
assesses companies CRM
readiness across six key
domains and builds a
roadmap for implementation.
Acq
uis
ition
s
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Merkle strategy – Our Ongoing Focus
Talent acquisition and
management
Attract, hire, train and retain the best
CRM talent in the world
Expansion of our digital
capabilities and competencies
Acquisitive and organic development
of digital marketing enablement and
media/channel customer touch point
execution capabilities
Expansion of our CRM
consulting capabilities and
competencies
Be the trusted advisor of companies
looking to assess, strategize for and
implement connected CRM
as a business strategy
Industry marketing expertise
depth and expansion
Continued investment in industry
specific talent and capabilities and
expansion into new industries of focus
Continued investment in the
core database marketing skills
and capabilities
Expansion of existing information,
analytics and technology skills and
capabilities
Global expansion in support of
client global needs and talent
acquisition
Support our US multinational clients
across the globe and develop global
delivery centers
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Thanks!
John Lee
SVP & GM, Merkle Inc.
Craig Dempster
EVP, CMO, Merkle Inc.
