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The Digital Marketing Imperative:Leveraging Complexity As A Competitive Advantage

Joe Stanhope, Senior Analyst

July 21, 2011

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The complexity of digital marketing is an equal opportunity disruptor, creating an opportunity for those firms that learn to harness complexity to build sustainable competitive advantages.

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Engaging The Ever-Connected Consumer Across TouchpointsMarch 2011 “Welcome To The Era Of Agile Commerce”

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The Complexity Explosion

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1 Emerging channels.

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The social media landscape

Source: FredCavazza.net (http://www.fredcavazza.net/files/2010/12/SocialMediaLandscape2011.jpg)

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Reconnect By Matching Mobile To The Consumer Life CycleOctober 2010 “Mobile Adds New Appeal To Your Brand Experience”

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Social Technographics Of Mobile Social Users October 2010 “Social Mobile Technographics®: How Consumers Socialize On Mobile Phones”

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2 The Splinternet.

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The Internet is entering a new era

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Proprietary standards will define interactive experiences

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Harnessing complexity

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The typical reaction to complexity…

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To harness complexity we must address marketers’ most vexing questions

How can we harness the data we generate

and make it actionable?

How can we plan, execute, and measure cross-channel

campaigns that are relevant to our customers and prospects?

How can we maintain our operational tempo?

How can we measure all of our interactions and

implement accurate attribution? How can we adopt new

channels without starting from scratch or negating

previous investments?

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1 Technology.

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The online marketing suite:

A network of interactive marketing specialists — held together by a central hub — which supports the entire interactive marketing process from planning and design to execution, measurement, and analysis.

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The Online Marketing Suite In 2011February 2011 “Revisiting The Online Marketing Suite”

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The benefits of the online marketing suite

Visibility

– Supports a unified view across the interactive marketing mix

– Drives multichannel analytics and campaign execution

Accuracy

– Coordinated data management for a single source of insight

– Drives the reduction of errors, data quality issues, and delays

Context

– Tracks customers and prospects through the multichannel funnel

– Drives cross-channel attribution and optimization

Collaboration

– Workflow guides processes across the extended marketing stakeholder set.

– Drives consistency, efficiency, and encourages information sharing

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2 Organization.

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A New Marketing Model Emerges

Source: October 9, 2009, “Adaptive Brand Marketing” Forrester report

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A New Marketing Model Emerges

Source: October 9, 2009, “Adaptive Brand Marketing” Forrester report

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The Customer Intelligence Command Center

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3 Testing.

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How is Online Testing Useful?

Meet marketing or campaign goals (e.g. conversion, sales,

click-throughs, etc.)

Improve customer experience

Drive incremental improvements quickly

Statistically based insight into what works and what doesn’t

– Understanding of:

– Factor importance

– Factor interaction

– Optimal factor combination by segment

Testing across channels and through the funnel

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Users Cite the Top Benefits of Online Testing

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4 Balance.

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Content is the tip of the spear

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Outbound execution

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Inbound execution

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Device Agnostic

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Getting there from here

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Content

Analytics

Central hub

Integration layer

Execution

Technology

Collaboration

PlanningProcesses

Skills

StaffingResources

Metrics

Segmentation

Delivery

KPIsMeasurement

CustomerexperienceCustomercontact strategy

Strategy

Work from a roadmap

The roadmap encompasses five elements

Source: March 4, 2011, “The Road To The Online Marketing Suite” Forrester report

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Leveraging complexity is about more than technology Consider processes and skills

Prepare for a long-term commitment, not a project Work the roadmap in stages based on your starting point and priorities

Never assumeYour intuition isn’t that good – trust me – test everything

Maintain a balanced perspectiveAnalytics is critical but never discount content and execution

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Thank you

Joe Stanhope+1 617.613.8929

jstanhope@forrester.com

Twitter: @joestanhope

blogs.forrester.com/customer_intelligence

www.forrester.com