How to Master the Addressable Customer Experience

© 2015 Merkle. All Rights Reserved. Confidential1

How to Master the Addressable Customer Experience


Merkle Overview

• Largest privately-held agency in U.S., Ad Age Agency Report ’14

• 3rd Largest Google Media Partner ’13

• 7th Largest CRM/Direct Marketing Agency, Ad Age ’13

• Fastest Growing US Search Agency, Ad Age ’13

• 19th Largest Mobile Agency, Ad Age ‘13

• Ad Age A-List: “Agency to Watch in 2012”

• NCDM Awards ’04, ’05, ’06, ’09, ’10, ‘11

• Recognized by Forrester ’03, ‘06, ’07 &’10

• Multiple DMA Innovation Award Winner ’10 ‘13

Quick facts Distinctive experience

Sustained 25% growth since 1989 Awarded and recognized

Re

ven

ue

in m

illio

ns

• Privately held by current management since 1988

• 150+ world class clients

• 2,600+ Employees

• Headquartered in Columbia, MD

• 17 locations around the world

• Manage over 140 marketing databases

• Manage 3.7 billion 1st party customer records

• Inform over $10 billion marketing decisions annually

• Manage over $500 million in digital media spend

• Manage over 1 billion permission based emails

2009 2010 2011 2012 2013 2014 2015E$0

$50

$100

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$182 $210

$246 $266

$315

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Today’s Speaker

John LeeChief Strategy OfficerMerkle

View the full webinar presentation here: http://bit.ly/1RlBnHR

http://bit.ly/1RlBnHR


In the age of the customer, the driver of competitive disruption is Addressability at Scale

Addressability at scale (AAS) is defined as the opportunity to create competitive advantage through the ability to deliver targeted, personalized experiences to consumers.

AAS 5.0Person ID

AAS 1.0Name & Address

AAS 2.0Phone #

AAS 3.0Email Address

AAS 4.0Cookie & Device ID

1990 2014The digital audience platform marketplace that is now at massive scale


Expanding Addressable Platforms Marketplace

SocialMedia Platforms

Open Web(DMP)

Ecommerce & Publisher Networks

AddressableTV

EmergingToday

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=3w60r4VEI3DMlM&tbnid=ldd5p4fFlxz9qM:&ved=0CAgQjRwwAA&url=http://cloudtimes.org/2012/04/25/adobe-creative-cloud-new-standard-creative-professionals/&ei=HcUSUvZZtfngA4XQgdgF&psig=AFQjCNENH_KSi8BuYYGhAHXHyfPnH4XVGw&ust=1377048221053444


The shift is happening not only in where media is being bought but also in how – programmatic

Source: Magna Global

Overall Digital Media Marketplace - $61B by 2017

$8B in RTB media by 2017 growing at 59% CAGR

$8B in “Custom Audience” by 2017

Over half of all digital media today is bought programmatically

76%62%

47%36%

27% 21% 17%

13%

18%

25%

29%32%

32%31%

11%19%

28%34% 41% 47% 52%

100%

80%

60%

40%

20%

0%

US: Programmatic Share (% of Digital media transactions)

RTB

Non-RTB

Non-Programmatic

2011 2012 2013 2014 2015 2016 2017

Programmatic media has already taken over 50% of transactions (35% of spend) in the US digital media market with RTB the fastest growing area


Digital video and TV will converge with programmatic taking hold

Audience Targeting: Programmatic

Hand-Sold/Media-Based Audience-Based Programmatic

2013Little Cross-ChannelBuying CoordinationNo Integration

2016Some Cross-ChannelBuying CoordinationSome Integration

2020Full Cross-ChannelBuying CoordinationFull Integration

Source: Simulmedia and Jack Meyers


Devices and screensB

ILLI

ON

S O

F D

EV

ICE

S

YEAR

Source: https://www.ncta.com/platform/industry-news/infographic-the-growth-of-the-internet-of-things

© 2014 Merkle. All Rights Reserved. Confidential

1st party data will be a key differentiator


The core enabler of addressable marketing is the connected customer view

Social

Print

Direct Mail

Display

Search TV/Video

Mobile

Site

Product

LTV Segment

Demographics

Life Events

Call center

Meetings

Email

1st Party Data

3rd Party Data

CRM Database


CRM data is driving significant value already in the marketplace

CRM data performed 19x-98x better than the advertiser average in the Telco, retail and Entertainment verticals

19x - Telco

CRM Data Performance

Advertiser Avg. Performance

1x

55x Retail

98x Entertainment

2014 Neustar Digital Advertising Report


Audience Platforms

Integration of the marketer’s person-level data assets with addressable audience platforms creates the opportunity

An Audience Platform is a digital technology that enables targeted, personalized experiences to individuals

Customers

1st Party Data

3rd Party Data

CRM Database


Competitive advantage will live in the addressable consumer experience


Awareness

Consideration

Engagement

Conversion

Commerce

Experience

The Expanding Mid Funnel

Customer Remarketing

Audience 1 Audience 2 Audience 3

Upper Funnel

Mid Funnel

Lower Funnel

Media

Sales/Service Experience

Traditional CRMDM, EM, Re-Targeting

Unknown

High-value customer

Unknown

High-value customer

Low-value customer

The Expanded Mid FunnelSingular experience from consideration through conversion

CRM

Channel

Optimization

Performance Media

Brand Media

Desktop Phone Tablet TV


The Old MetLife Funnel

Upper Funnel

Lower Funnel


Today’s MetLife’s Expanded Mid-Funnel Experience

Online Application

Web Visits

TV Ads

Email

Remarketing

Affiliate

Paid Social

Programmatic

Landing Page

Inbound Leads

Inbound Leads

Outbound Leads

Online Leads

Fallout Leads

Day 8-30 Day 1-7 Day 0-1

Actual Experience

New Term Life

Customer

Mid-Funnel


Early success: Facebook Custom Audiences

MetLife’s Data

• Converters and Prospects• Segmentation• CRM Predictive Models

Facebook’s Data

• Registration Data• Segments• Look-Alikes

1st Party Data

3rd Party Data

M1

Directly deliver the right content to the

right people

Facebook 1st Party Data

Segment Driven

Creative


MetLife Facebook Results

Increase in lead to sale ratio by

as compared to the next best performing channel

decrease in Cost per Lead in 2014

the Cost per Premium (CPP) of other display channels in 2014

“Working with their agency Merkle, MetLife used lookalike audiences to find people more like its existing customers, MetLife ran ads that led people to its “get a quote” website page.”

Sheryl Sandberg, FacebookFacebook Earnings Call 10/28/14

2.4X

49%

less than half


MetLife’s mid funnel strategy creates a sustainable competitive advantage

But with the new mid funnel, the underlying data, technology, and operating model cannot be seen or easily replicated

As with the old funnel, creative execution and spend can be observed by the competition



Allowing us to deliver Addressable Customer Experiences

Timing / frequency Platform

Device / format

Segment

A

Segment

C

Segment

D

Segment Lifecycle

Awareness

Product Consideration

Request a Quote

Start Application

Process

CONTEXT

Message Offer

CONTENT

Treatment

Segment

BBrand

Consideration

Segment

BBrand

Consideration

4X

Google

Mobile A

1

Life

CONNECTIVITY


Context leverages everything we know about the consumer

LIFECYCLE

BEHAVIORIDENTITY

SEGMENT

LOCATION VALUE

Client 1st Party Data

CRM

Facebook1st Party Data

+


Motivational Insights

Segment/Behavior Data

A massive amount of creative is required to support numerous media and channel formats and audiences

Addressable Content Matrix

AUDIENCECONSIDERATIONS

BEST MESSAGE

Device Appropriate

BEST CTA

Customer Value

BEST OFFER

Behavioral Data

TIMING/FREQ


A mid funnel data and technology flow supports the the connectivity of the 3Cs

ImpressionTracking

Addressable Tracking

Cookie Platforms

People Platforms Measurement

Rep

ort

ing

Att

rib

uti

on

Addressable Audience

Mart

Con

duct

or

DSP

Site Personalization

RLSA

DM

P

On

bo

ard

ing


MetLife/Merkle’s Mid-Funnel Expansion Impact

Q1 - 2014Q4 - 2013

© 2015 Merkle. All Rights Reserved. Confidential2525 © 2014 Merkle. All Rights Reserved. Confidential


Scaling these experiences will require a new mid funnel supply chain


What is a supply chain?


Today’s marketing supply chain is complexM

AR

KE

TE

R

CO

NS

UM

ER


We look at today’s marketing supply chain in 3 fundamental layers

DATA MANAGEMENT

ANALYTICS & ORCHESTRATION

MEDIA & CHANNEL EXECUTION

CO

NS

UM

ER

MA

RK

ET

ER


Upper funnel

Mid funnel

Lower funnel

Awareness

Consideration

Engagement

Conversion

Commerce

ExperienceCRM

Channel

Optimization

Performance Media

Brand Media

The challenge is that we have created supply chains for each level of the funnel to optimize against different objectives


Typical situation

Brand Digital Media SiteDirect Marketing

Upp

er fu

nnel

Mid

funn

elLo

wer

funn

el

CO

NS

UM

ER

MA

RK

ET

ER

CRM Tech

Ad Tech

Site Tech

1st Party CRM Data

3rd Party Data

Publisher Data

1st Party CRM Data

Digital media team uses little to no 1st party data.

Valuable media data never gets back to CRM database

to inform offline

Ad, CRM, and Site all managing multi-touch

campaigns with no coordination and frequency

management

1st party data sourced and

stored multiple times and out of

sync


Digital Profile

Channel Database

DecisionOptimization

CMS

Site

Known Audience

Marketing Database

Campaign Orchestration

MRM

Message Delivery

Today’s technology supply chain silos

Site Team CRM Team

Anonymous Audience

DMP

DSP

Ad Server

Reporting

Media Agency


Typical situation

Brand Digital Media Direct Marketing

SiteU

pper

funn

elM

id fu

nnel

Low

er fu

nnel

CO

NS

UM

ER

MA

RK

ET

ER

Strategy Content MeasureExecute




Multiple segmentations and personas that are not linked

to the same dataBrand Agency

Digital Agency

CRM Agency

UX Agency

No single point of accountability and team

integration for an end to end experience

Access and knowledge of how to use

data limited to CRM

Redundant functions and resources re-

creating content and deliverables

Multiple versions of the truth with conflicting

reporting


Today’s opportunity calls for an integrated, streamlined mid funnel supply chain

Awareness

Consideration

Engagement

Conversion

Commerce

Experience

CRM

Channel

Optimization

Performance Media

Brand Media

MEDIA & CHANNEL EXECUTION

ANALYTICS & ORCHESTRATION

DATA MANAGEMENT


CHANNEL EXECUTIONMEDIA EXECUTION

Planning and execution of addressable digital and offline

media campaigns

Planning and implementation of addressable omni-channel experiences

CONTENT & CREATIVE MANAGEMENT

Development, governance, and distribution of content for use across media and channel execution

MEASUREMENT & ATTRIBUTION

CAMPAIGN MANAGEMENT DECISION MANAGEMENTDevelopment of online and offline media campaigns

using known data Management of business rules and algorithms that

drive real-time interactions

Management of analytics and reporting for targeting, measurement and optimization of addressable media and channel interactions

STRATEGY & ORCHESTRATIONDevelopment of customer strategy and orchestration of addressable programs and campaigns

DATA STRATEGY & SOURCINGIdentification and sourcing of 1st, 2nd, and 3rd party data assets that fuel analytics and execution

Mid Funnel Supply Chain – Functional View

IDENTITY MANAGEMENT

CO

NS

UM

ER

MA

RK

ET

ER

KNOWN DATA MANAGEMENT ANONYMOUS DATA MANAGEMENT

Creation and management of a unique, persistent consumer identity across media, channels, and devices both known and anonymous

Management of the known consumer view Management of the anonymous consumer view


STRATEGY & ORCHESTRATION

Mid Funnel Technology Supply Chain

TECHNOLOGY SERVICES ORGANIZATION




CAMPAIGN MANAGEMENT DECISION MANAGEMENT

DATA STRATEGY & SOURCING

IDENTITY MANAGEMENT

CO

NS

UM

ER

MA

RK

ET

ER


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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=27oHlLgCSb8skM&tbnid=sKFzEE4oKgqmkM:&ved=0CAUQjRw&url=http://www.insidefacebook.com/category/advertising/&ei=qL5jUo6jOPKj4APd74HwBg&bvm=bv.55139894,d.eWU&psig=AFQjCNGrdvSE0LPziamhWsyO4L2b7oGKAg&ust=1382354974054041




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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=uyvAOfaiAdSNZM&tbnid=zj0VlCHxBw_8VM:&ved=0CAUQjRw&url=http://www.technobuffalo.com/2011/04/03/security-breach-at-email-list-provider-impacts-major-brands/&ei=47tjUpzxFNS24AOp7YHICA&bvm=bv.55139894,d.eWU&psig=AFQjCNHk13lYWq0byTGfAflpfZINvwMlTA&ust=1382354270779514




Mid Funnel Supply Chain - Supplier Landscape








IDENTITY MANAGEMENT

CO

NS

UM

ER

MA

RK

ET

ER


















Mid Funnel Supply Chain - Organization








IDENTITY MANAGEMENT

CO

NS

UM

ER

MA

RK

ET

ER


Digital Media

DM Brand Loyalty eBusiness Mobile Social Product Marketing

Digital Media


Digital Media

DM LoyaltyCustomer Marketing

Product Marketing

AnalyticsITeBusiness

Digital Media


Digital Media


Product Marketing


Digital Media


Product Marketing


IT Analytics Digital Media

eBusinessDM

ITDM IT Digital Media

eBusiness


Organizing around the customer is critical


The Platform Marketer™ embodies the collective competencies needed to successfully exploit the addressable funnel opportunity

Marketers must evaluate their own competency level and decide how best to fill gaps internally and with external expertise

In the highly digitized world of AAS, a new set of competencies must be attained by the marketer

We call the personification of those collective skills The Platform Marketer

While new processes, data, and technologies must be implemented, these digital platform competencies must first be addressed

j

Identity Management

Audience Management

Consumer Privacy &

Compliance

Media Optimization

Platforms Utilization

Channel Optimization

Experience Design &Creation

Measurement and

attribution

Marketing Technology


There is a new organizational supply chain that needs to adapt to the mid funnel opportunity

Measurement &OptimizationAudience MgmtExperience Strategy & Planning Technology

Portfolio Management

Segment Leadership

Experience Design &Planning

Consumer Preference & Governance

Product Management

Brand Leadership

Addressability Optimization

Audience Platforms

Innovation and Testing

Measurement & Attribution

Decision Science

Marketing Stack

Consumer Data

1st Party Platform Leadership3rd Party Platform Leadership

Digital AttributionPersonalization

Portfolio Strategy

Financial Management

Segment Leadership Machine LearningConsumer Advocacy

Identity Management

Consumer Data Governance

Programmatic Media Mgmt

CIOCMO CCO COO CFO CEOCPO


A phased approach is required

FullyIntegratedExperience

• Streamlined campaigns

• Recommender system enables 1-to-1

• Name/address hygiene

• All addressable media

• Web data integration

• Two way interaction

• Real-time integration

• Real-time Two way interaction

• Store & POS integration

• Call center integration

• Media & Marketing Mix

• Segmentation alignment

Offline Channel

Integration

Digital Channels

Integration

Mass MediaIntegration

Digital MediaIntegration

Email and DM

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

CRM Database


Thank you!

John [email protected]@johnleemerkle

View the full webinar presentation here: http://bit.ly/1RlBnHR

