Download - A capability model for successfully reaching & engaging consumers

1

Hope is not a Strategy

A capability model for successfully reaching

and engaging consumers

Forrester Customer Experience Forum

June 2010

About Acxiom

• Global marketing services and

technology company. Focused on

audience and customer engagement

• #1 Ad Age Agency

• US Agency Overall

• US CRM/Direct Marketing

• Quick Facts:

• 5,700 clients in 40 countries

• 300,000 campaigns/year

• 5 billion consumers engaged/year

• 1 trillion customer recognition events/year

Just 8%

of their customers agree

A crisis in customer engagement

Source - Bain

2Forrester Research

A crisis in insight & focus…

3comScore

Capability model for a connected world

Target 15-30% of spend to redirect

1. Reach/engage your audienceCustomer value varies greatly

- 400%

+ 500%

Top 30% Next 50% Bottom 20%

0

Customer Value Segment

Contribution to

Overall Profit

Contribution to

Overall Profit

1. Reach/engage your audienceMost firms are not getting their fair share of valuable buyers

PersonicX Consumer Segments

UV

In

de

x

UV

In

de

x

Retailer 1


Retailer 2

UV

In

de

x


Cookware/Kitchen

Accessories Buyer

UV

In

de

x


Clothing/Apparel Buyer

Acxiom, comScore

1. Reach/engage your audience

12

Valuable buyers are hard to recognize

Acxiom, comScore


UV

In

de

x

UV

In

de

x

Portal 1


Portal 2

UV

In

de

x


UV

In

de

x


Portal 4Portal 3

1. Reach/engage your audienceValuable buyers are hard to recognize


UV

In

de

x

UV

In

de

x

TV Network 1


TV Network 2

UV

In

de

x


UV

In

de

x


TV Network 4TV Network 3

Therefore,

Most Firms…

Under-invest in

high value relationships

Over-invest in

low value relationships

1. Reach/engage your audienceNarrowcast, not broadcast

Retailer 1 v Portal 1

This retailer’s best customers

are under-represented on this portal


UV

In

de

x

2. Multidimensional InsightWhat do you see?

2. Multidimensional InsightSorry, there are no silver bullets

2. Multidimensional InsightJust about online context/behavior?

In the Marketing Democracy

4. Personalized & coordinated engagement

Create this experience across media / channels

Illustration

When Becky visits a site,

audience insights are leveraged

to personalize the engagement


We know:• Service history & preferences

• Preferred media, channel & cadence

• Transaction & response behavior

• Social influence

We predicted:• Loyalty / attrition score

• Brand affinity & product propensity

• Brand image & price sensitivity score

• Product attribute / demand score

We noticed:She has bought several smaller kitchen items using her store card

both online and in the store and she clicked on an email link featuring

kitchen appliances.


Illustration












kitchen appliances.

When Becky watches TV,

audience insights are leveraged

to personalize the engagement


Illustration












kitchen appliances.

When Becky uses her iPhone,

audience insights are leveraged to

personalize the engagement

Capability model for a connected worldKey requirements

• Highly accurate audience recognition.

• Integrated decision engine, deployable across channels.

• Integrate matching engine & central nervous system.

Personalization engine

• Reach your audience with certainty.

• Business relationships & delivery integration with preferred advertising

partners.

• A safe haven for responsible matching of sensitive information.

Partnership ecosystem

Differentiated value of customers• The top 30% make 500% of profit. The bottom 20% consume 400% of

profit. Know the difference.

Strategy, analytics & creative skills• Leverage external, multi-sourced & verified consumer insights

High performance matching engine• Knowledge based for higher accuracy/flexibility.

• Support real-time & all digital formats.

• Integrate central nervous systems & personalization engine.

“Logical” central nervous system• Correlate customer behavior with marketing/advertising across channels,

media over time.

• Integrate existing databases.

• Integrate matching & personalization engines.

Capability model for a connected worldDelivering ROI

Target 15-30% of spend to redirect

Tech Firm

$200 million revenue/yr

$4.5 million OpEx/yr

Retail Bank

$100 million EBIT/yr

CPG Firm

$500 million revenue/yr

Personalized experiences…...4-5X ROI

Concentrate ad spend………..3-5X ROI

Connect web footprints

& outbound messaging….….....2X ROI

Connect print & digital…….......4X ROI

Connect call center

& digital………………………...3-5X ROI

Connect mobile & email….….7.5X ROI

Connect TV/offline…………….17X ROI

What could have been

owned

but couldn’t

become

What could have been

It’s not enough…A great customer base

A great product

A great strategy

A great team

Darwin always wins.

Will you?

Thank you. Questions?

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