Taking Cues from the Customer:“Omnichannel” and the Drive for Audience EngagementJonathan C. MarguliesManaging Director

October 10, 2013

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Why?: The Origins of “Omnichannel”What?: Defining a New Approach to Customer Engagement

How?: Building a Roadmap for Enterprise Success

In 1972, Young & Rubicam Introduced“The Whole Egg”

“I rarely saw how this synergistic methodology created something bigger than any of its unilateral parts”

—Peter Himler, Forbes.com (2012)

Over Time, Other Movements Would Emerge, Such as “Integrated Communications”…

“Little has been said, however, about its theoretical robustness... It’s a management fashion”

—Joep Cornelissen and Andrew Lock,

Journal of Advertising Research (2000)

… And, Perhaps Most Prominently, “Multichannel Marketing”

“The greatest distinction I’ve found is that which lies between the various degrees of bull$&!@ that cover this entire topic”

—Wiljo Krechting, Ecompunk.com (2013)

But Three Evolving Dynamics Have Changed Marketer Thinking

The fragmentation of media—making it harder for marketers to

engage valuable audiences

The challenge of retrofitting legacy marketing

infrastructures to manage interactions driven by data and technology (rather than

by media channel)

The growth of “customer-centric” marketing—driven by consumers

who manage information, consideration and purchasing on their

own terms

Not Surprisingly, Interest in New Approaches is Surging

83% of panelists said their company would likely

invest in “omnichannel” approaches in the near

future

92% agree there is “real value” to be gained from pursuing an omnichannel

approach to customer engagement

Why?: The Origins of “Omnichannel”What?: Defining a New Approach to Customer Engagement

How?: Building a Roadmap for Enterprise Success

“Omnichannel” Originated in The Retail World—To Address a Range of Challenges

CustomerExperience

P&LOptimizatio

n

MerchandisingManagement

At Its Core, “Omnichannel” is a Strategy to Empower Mutual Value

But What Really Makes It Different?

Driven by enterprise business

objectives—not tactical marketing

requirements

Made possible only by recent

developments in data, technology

and media

Aimed at driving informed customer

engagement, not “lift,” “response,” “awareness” or

even “ROI”

More Than Anything Else, It’s About Driving Profitable Interactions with the Brand

70% 75% 80% 85% 90% 95%

Which of the following do you believe are the likely benefits of adopting an “omnichannel” customer engagement strategy?

Percentage of panelists who agree

Revenue Growth

HeightenedBrand

Awareness

ImprovedCustomerResponse

Rates

But It’s Not Just About Media—It’s About Transforming Infrastructure

Holistic Marketing Process

Management

Effe

ctiv

e P

eopl

e M

anag

emen

t

The “New 4Ps”of Marketing Operations

People

Recruit, retain and

appropriately compensate

the right talent

Partners

The network of third parties entrusted to

support capacity,

innovation and continuous

improvement

PlatformsTechnologies

and tools that support

customer insight,

decisioning and execution

ProcessesWorkflows

designed to promote the

optimal customer dialogue

Why?: The Origins of “Omnichannel”What?: Defining a New Approach to Customer Engagement

How?: Building a Roadmap for Enterprise Success

Customer Analytics and Multiplatform Attribution

Create a unified data structure leveraging multiple inputs—online and

offline, CRM and prospect, PII and anonymous—to fuel a robust customer

view

Maintain an ongoing data sourcing capability

Deploy best-in-class integration, visualization and segmentation tools

(such as a DMP)

Develop and/or source multiplatform attribution models and supporting

technologies

Understanding the customer is fundamental to

the development of products, brand

messages and offers that promote a meaningful

dialogue

Why?

Rich Content—Optimized for Context and Strategic Intent

Leverage content repositories, libraries and personalization engines geared to

orchestrate the dynamic management and sharing of digital

resources

Automate the execution of targeted content wherever possible—being mindful that the demand to create

variable content that’s credible at an individual level may require deeper human interaction than may seem

necessary

Leverage emerging media formats (such as “native advertising”) to

reinforce the holistic value of a user experience that seamlessly blends

editorial and paid content

Engagement begins with user experiences that drive real value. As consumers

“take control of the dialogue,”

marketers must expand the

breadth, quality and relevance of

their targeted content

Why?

Operational Infrastructure Geared to the Needs of Customer Engagement

Assemble a cross-disciplinary steering committee and design a realistic,

phased implementation plan with “quick wins” to reinforce senior-level buy-

in

Assess existing resources—including data, creative assets, media commitments

& technology tools—to understand gaps and crystallize needs

Outline channel-agnostic use cases that support the organization’s customer

engagement goals

Investigate internal and partner-provided options for addressing those objectives—with the goal of building a

modular solution “stack” which includes technology and service-driven

solutions

An organization’s ability to keep pace with rapid

change will depend on its

internal readiness—and many enterprise

organizations remain structured around outdated legacy systems

Why?

Cross-Platform, Audience-Driven Media Products

Expand the audience-driven media paradigm beyond its current narrow

scope to encompass a range of addressable media including TV, digital video, mobile, direct

mail, etc.

The ability to target and engage specific audience

segments can drive better

engagement (and lifetime customer value). For media companies, this shift refocuses attention to its most lucrative

asset—its audience

Why?

Integration of Deeply Engaging—Yet Effectively “Disconnected”—Media Channels

Regularly assess media mix to identify opportunities to leverage

emerging channels—as well as those that offer interactive engagement—but might be managed disparately now

Apply the same infrastructure—grounded in insight, powered by

continuous data analysis and furthered by automated and/or rules-driven execution—to new

and experimental media

Cast aside legacy distinctions between the value of “digital” and “traditional” media—with

the goal of leveraging a combination of tools to foster a

robust level of engagement

To deliver customer

engagement that’s agnostic of channel requires the development

of a channel portfolio

responsive to customer demand

Why?

Elevation of the “Omnichannel Strategist” As A Senior Role

Determine interdisciplinary stakeholders whose contributions

would best support the expansion of an omnichannel strategy for the enterprise—and task one among them to lead

the effort

Identify a series of clear performance objectives for the

senior strategist to pursue, with the goal of elevating the role to “C-suite”

equivalent

Assign broad organizational oversight to the strategist and her

team, including responsibility for customer strategy and insights, channel

coordination, data management, marketing technology and other

functions

To achieve omnichannel success, the

practice must be backed by the right resources and influencers

within an organization (and led by someone

who is not distracted by

other responsibilities)

Why?

Why Omnichannel? And What’s Next?

Drives content aligned with expectations of a

personalized,“social media society”

Capitalizes on the power of insight, enabling deeper

understanding of the customer and her needs

Sets the stage for the next transformation—to an

automated “programmatic” capability

Elevates marketing (and related functions) to a higher level of insight,

influence and importance

For Further Reading…

Download at:www.winterberrygroup.com/ourinsights

Jonathan C. MarguliesManaging Directorjmargulies@winterberrygroup.com@jcmargulies

www.winterberrygroup.com

@WinterberryGrp

Thanks!