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Presented by: Yara Lutz Vice President, Client Services Cross-Channel Marketing Anita Gandhi Vice President, Strategic Services Consumer Insights

Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

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Page 1: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Presented by: Yara Lutz Vice President, Client Services Cross-Channel Marketing

Anita Gandhi Vice President, Strategic Services Consumer Insights

Page 2: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Data Explosion Channel & Device Overload

Cross-Channel Connection

Page 3: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Channel & device overload

Page 4: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

The CMO’s dilemma

Social Media Data Explosion

Regulation ROI Financial Constraints

Customer Influence

Growth of Channel &

Device Choices

—IBM State of Marketing 2012 global survey of 350 CMOs ; July 2012;

26%

22% 27% 28% 28%

33%

41%

Page 5: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

A very captive audience

Source: Experian Marketing Services

Page 6: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Not-as-captive of an audience

Source: Experian Marketing Services

Page 7: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Not-as-captive of an audience

15% 33 million

13% 29 million

12% 26 million

11% 25 million

Visit Websiteson Computer

Text on MobilePhone

Email onComputer

Talk on MobilePhone

Simultaneous usage while watching TV: other activities engaged very often

Source: Experian Marketing Services

Page 8: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

93% of U.S. population have a mobile phone

Mobile opportunities

Source: Experian Marketing Services

Page 9: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

64% of U.S. population have a smartphone

Mobile opportunities

Source: Experian Marketing Services

Page 10: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

50% of U.S. population view email on mobile

Mobile opportunities

Source: Experian Marketing Services

Page 11: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

15% of mobile users buy on

mobile devices Mobile opportunities

Source: Experian Marketing Services

Page 12: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Tablet users shop 17% of

U.S. population have a tablet

Source: Experian Marketing Services, Internet Retailer

Page 13: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Tablet users shop 17% of

U.S. population have a tablet

43% of tablet users

purchased on it

Source: Experian Marketing Services, Internet Retailer

Page 14: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Tablet users shop 17% of

U.S. population have a tablet

43% of tablet users

purchased on it

70% sales growth

projected

2013 Tablet shipments expected to

surpass laptops

Source: Experian Marketing Services, Internet Retailer

Page 15: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Channel reach & engagement

Shifting away from traditional

desktop

Source: Experian Marketing Services

Page 16: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device
Page 17: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Target different times

6 AM Midnight Midday 6 PM Midnight

Tablet

Mobile

Desktop

Source:

Messaging, 52.90%

Email, 45.10%

Websites, 44%

Social Network, 42.80%

Source: Experian Marketing Services

Page 18: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Remind me later results

% 164 Lift in Transaction Rate Over original email

Page 19: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Social influence on purchase behavior

11% of US adults are more likely to purchase items

used or recommended by friends on social

networks

Source: Experian Marketing Services

Page 20: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device
Page 21: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Client survey

100% of Clients Surveyed Message with Email

Page 22: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Client survey

48% of Clients Surveyed Message with SMS or MMS

Page 23: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Client survey

8% of Clients Surveyed Market to their Customers Based

on Channel Preference

Page 24: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Pop quiz!

What percent of U.S. brands execute true cross-

channel communication with customers and

prospects? —Internet Retailer

Page 25: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Pop quiz!

What percent of U.S. brands execute true cross-

channel communication with customers and

prospects? 10%

—Internet Retailer

Page 26: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Data Explosion Channel & Device Overload

Cross-Channel Connection

Page 27: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Data explosion

2.8 Zettabytes Created in 2012

(That’s 2.8 Trillion Gigabytes)

Page 28: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

70-85% of data is

Unstructured —Gartner

Data explosion

Page 29: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

5%of available data is

actually used (on average)

Data explosion

Page 30: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

60% McKinsey estimates that retailers could improve operating margins by c. 60% by

better leveraging their customer data

Page 31: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Linking big data

Catalog Request

Name Address

Credit Card Purchase

Name ZIP Code

Online Registration

Name Email

Social Media Connection

Name Social ID

Email Opt-in

Name Email

Mobile Opt-in

Name Mobile

Linking Big Data: The Cornerstone of Cross-Channel Marketing

Page 32: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device
Page 33: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Online activity

Psychographic and lifestyle

Attitudes, opinions and beliefs

Demographics

Channel engagement and

preference

Page 34: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Data Explosion Channel & Device Overload

Cross-Channel Connection

Page 35: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

“the more channels marketers embrace, the more email programs they’ll need to support

them” —Forrester

Email connects everything in the mix

Page 36: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Top marketing that leads to purchase

0%

2%

4%

6%

8%

10%

12%

14%

Email Webpage SponsoredSearch

Banner Ads

13%

Source: Experian Marketing Services

Page 37: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Store experience to email

Page 38: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Store experience to email

Page 39: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

40%

10%

Store experience to email

2012 2013

Page 40: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Bringing the web to email

Page 41: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Bringing the web to email

Page 42: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to display targeting

Page 43: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Non-clicker

Email to display retargeting

Page 44: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to social

Page 45: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Custom Audiences results

% 50 Email match rate Facebook ID to email address

Page 46: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Custom Audiences results

X 9 Return on Investment From standard Facebook ad

Page 47: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to social – tweet this!

Page 48: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to catalogs

Page 49: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email drives catalog request

Page 50: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to SMS

Page 51: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Email to text

Page 52: Yara Lutz Anita Gandhi Vice President, Client …...The CMO’s dilemma Social Media RegulationData Explosion ROI Financial Constraints Customer Influence Growth of Channel & Device

Link Big Data to retarget across

channels

Embrace and adapt to

change – the cross-channel

reality

Leverage email to drive

connectivity between channels