Online marketing: now it s personal
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1 Online marketing: now it s personal Erick Brethenoux IBM Director, Business Analytics & Decision Management Strategy May 9, 2014
2 Major industry shifts innovating at faster and faster pace Data is becoming the world s new natural resource The emergence of cloud is transforming IT and business processes into digital services Social, mobile and access to data are changing how individuals are understood and engaged 500 million DVDs worth of data is generated daily 85% of new software is being built for cloud 80% of individuals are willing to trade their information for a personalized offering 1 trillion connected objects and devices by % of the world's applications will be available in the cloud by % of millennials say social and user-generated content has an influence on what they buy 80% of the world s data is unstructured 72% of developers say cloud-based services or APIs are central to the applications they are designing 5 minutes: response time users expect once they have contacted a company via social media 2
3 madewithibm Data Cloud Engagement Insight & Speed Innovate & Integrate Personalize & Protect Business Data-driven insight, rapid innovation, personalized engagement IT Operations Faster time to value, lower risk, higher efficiency Developers Continuous software and product innovation, in the cloud or on-premise 3
4 Of mobile users keep their device within arm s reach 100% of the time The average office worker checks his/her box times an hour - once every minutes In the last 10 years the average attention span has dropped from 12 to 5 minutes 4
5 The consumer s experience has dramatically changed Attract Marketing Social Intelligence Research Research Product Purchase Advocate Product Up/Cross Sold Purchase Product Sales Get Customer Service Feedback Management Retain Advocate Use Product Use Support/Services Grow 5
6 but organizations keep focusing (mostly) on their inventories Data Centric Process Centric The Customer Cycle Insight Customer Analytics Action Customer Operations The Business Cycle Integrated Consumer Experience Target to Cash 6
7 Data from multiple sources reduces uncertainty through context Credit Michael San Jose, CA Influencers Loyalty Customer at Mall Buying DSLR today! Intent Customer in Store #42 $999 $560 In-Store Pricing And Discounts CONDENSE A Data finds Data Mother Date Son Fact Birthday Discovery & Spatial Reasoning & Temporal Reasoning Correlation Corroboration (Evidence Combination) ETC. Sense Making NY $560 OR $999 Buying a DSLR today! Maximum Context for Minimum Uncertainty 7
8 Analytics here today at a cell phone & coffee shop near you (e.g., predicting future customer propensities to drive channel optimization) Affinity Profile Creation Context Modeling Recommendation What are the interests of a specific customer? What products are relevant to what interest groups? How does context affect customer interest? Which product should a customer be offered? 8
9 With great powers come great responsibilities Cost-Benefit + Ideal Usable 0 - Creepy Too Fast Too Slow Irrelevant Response Time Event: Real-Time Event-Driven Campaign Customer Response: "Appropriate" 10x Success "Convenient" 5x Success "Intrusive" 1%-5% Response 9
10 No decisions without emotions Moments of truth are those few interactions where customers have an unusual amount of emotional energy invested in the outcome (1) Hard Fun Emotions generated: frustration relief Mastery the brass ring Easy Fun Emotions generated: wonder curiosity challenge strategy problem solving fiero intrigue and curiosity immersion / absorption adventure Social bonding amusement curiosity Vehicle for imagination personal recognition social bonding teamwork Emotions generated: admiration naches People Fun excitement Provide meaning & value visceral feeling real behavior cognitive experience Emotions generated: zen focus relaxation Serious Fun 10 (1) The McKinsey Quarterly - The moment of Truth in Customer Service ) Source: XEODesign research
11 Moments of truth Example: at banks, emotionally charged interactions (e.g., receiving financial advice and negotiating mortgages as opposed to buying travelers checks) can have dramatic impacts on the organization s bottom line 87% 72% 11 (1) Source: Survey of 2,229 large banks customers - The McKinsey Quarterly - The moment of Truth in Customer Service )
12 Your customers are transforming from individuals to members The new customers are entering the post-modern world, they are audacious and risk-prone There is no lasting global solution for them just constant adjustment They want to live the moment vs. projecting themselves into the future From cogito ergo sum to I am having a blast with From individualism to connected with connecting around a shared interest or membership people are organizing themselves around tribes 12
13 In search of soul mates the new tribes Influencer Consumer User Participant Which One Is it? Customer Comedian (MySpace) CAO (IBM) Chef (Marmiton) Apocalypto (WoW) Captain Picard (ST:TNG) Resonance (x,y,z ) The Trek Tribe 13
14 boldly going where no CMO has gone before and now it s personal International Business Machines 14 Corporation
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