Next Generation Marketing - A Model For Success
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- Loreen Hopkins
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1 Marketing goes Social Media The shift towards Next Generation Marketing Marcel Kuster, Leader Smarter Commerce, IBM CH & AT Daniel Schawalder, Leader Industry Solutions, IBM CH & AT Zurich,
2 IBM s Big Shift to focus on Marketing Executive and the Front Office Growth at IBM's scale means creating new markets. Rometty is making IBM s new market pitch to marketing executives, promising that technology will change the way they do their jobs. Rometty noted that IBM will help change the way corporations communicate with their customers -- and ultimately the way they use technology to build and sell their products. "This is a mindset shift, not a market shift It changes everything. 2
3 Agenda What customers want Where the marketing function is going Next generation marketing best practice examples 3
4 Agenda What customers want Where the marketing function is going Next generation marketing best practice examples 4
5 The speed of social media adoption is astounding - there is no question that businesses need to go where the customers are 5
6 Companies desire to engage customers through social media has resulted in adoption levels that mirror consumer trends Networking sites are the most popular by far; nearly 80 percent of companies surveyed have a profile or account Percentage of Companies with a Profile on a Social Site Social Netw orking Sites N= Media Sharing Sites N= Microblogging Sites N= Wikis N= Blogging Sites N= Social Review Sites N= Social Bookmarking Sites N= Have a profile/presence Do not have a profile/presence Don't know Source: IBM Institute for Business Value Analysis, CRM 2011, Numbers rounded to equal 100 percent 6 IBM CRM Study From Social Media to Social CRM What Customers Want
7 But for most, social media is about connecting with friends and family and accessing news and entertainment not interacting with brands Friends and Family Access News Access Entertainment Share Opinion Access Reviews Meet People Share Media Research for Work Get Deals Interact with Brands Network for Work Write Blog Access Education Search Jobs Reasons Consumers Go to Social Media or Social Networking Sites Other 23 0% 10% 20% 30% 40% 50% 60% 70% 80% 70 Engaged Authors were much more likely to interact with brands (60 percent), but they also ranked this reason well behind connecting with friends and family (92 percent) Source: IBM Institute for Business Value Analysis, CRM 2011; sample size N=1056 Interacting with brands via social media is still not top of mind for consumers 7 IBM CRM Study From Social Media to Social CRM What Customers Want
8 When consumers interact with brands via social media they expect tangible value in return for their attention, time and personal data Consumers Ranking: The ways they interact with companies via social sites (61%) Discount (55%) Purchase (53%) Reviews and Product Rankings (53%) General Information (52%) Exclusive Information (51%) Learn about New Products (49%) Submit Opinion on Current Products/Services (37%) Customer Service (34%) Event Participation (33%) Feel Connected (30%) Submit Ideas for New Products/Services (22%) Be Part of a Community Businesses Ranking: Why they think consumers interact them via social sites Learn about New Products (73%) General Information (71%) Submit Opinion on Current Products/Services (69%) Exclusive Information (68%) Reviews and Product Rankings (67%) Feel Connected (64%) Customer Service (63%) Submit Ideas for New Products/Services (63%) Be Part of a Community (61%) Event Participation (61%) Purchase (60%) Discount (60%) Source: IBM Institute for Business Value Analysis, CRM 2011; sample size Consumer N=1056; Business Learn N=333, General Info N=336, Submit Opinion N=334, Exclusive Info N=333, Reviews/Rankings N=333, Feel Connected N=331, Customer Service N=331, Submit Ideas N=332, Community N=329, Event N=332, Purchase N=334, Discounts N=331 8 IBM CRM Study From Social Media to Social CRM What Customers Want
9 Focus on what customers value to design solutions with mutual benefit to customers and the business Book a ticket from Delta Airline s Facebook page followers send friends tangible treats with value, not just virtual hugs Purchase flowers from FLOWERS Facebook page 9
10 While customers expect a seamless multi-channel experience many companies are treating social media as a silo Ads PR Earned media Owned media 10
11 Most marketing organizations lack two keys to success Earned media Owned media Organization, processes & tools to take coordinated action A complete understanding of each customer 11
12 Agenda What customers want Where the marketing function is going Next generation marketing best practice examples 12
13 The vast majority of CMOs are underprepared to manage the impact of top market factors affecting the marketing function 70 Underpreparedness Percent of CMOs reporting underpreparedness Marketing Priority Matrix Data explosion Social media Growth of channel and device choices Shifting consumer demographics Financial constraints Factors impacting marketing Percent of CMOs selecting as Top five factors Decreasing brand loyalty Growth market opportunities ROI accountability Customer collaboration and influence Privacy considerations Global outsourcing Regulatory considerations Corporate transparency Mean Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? 13 n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7)
14 To deal with the broad level of underpreparedness, CMOs signaled three key domains of improvement Deliver value to empowered customers Capture value, measure results Foster lasting connections Source: IBM CMO Study 14
15 1. Most CMOs are still focusing on understanding markets versus understanding individuals to shape their strategy Sources used to influence Marketing strategy decisions Percent of CMOs selecting all sources that apply CH & AT Market research Corporate strategy Competitive benchmarking Customer analytics Marketing team analysis Customer service feedback Financial metrics Campaign analysis Brand performance analysis Sales/sell-through numbers Test panels/focus groups R&D insights Consumer-generated reviews Third-party reviews & rankings Retail and shopper analysis Online communications Professional journals Blogs Supply-chain performance 42% 41% 40% 54% 52% 48% 74% 69% 68% 68% 68% 65% 61% 82% 81% 80% 37% 26% Key sources to 25% understand individuals 50% 83% 87% 83% 73% 75% 67% 62% 58% 60% 63% 50% 29% 50% 40% 40% 33% 31% 13% 15% Source: Q15 What sources of information influence your marketing strategy decisions? n=
16 2. CMOs are using data to manage transactions, not relationships Extensive use of customer data Percent of CMOs using data captured within customer lifecycle phases CH & AT Segmentation/targeting 61% 71% Awareness/education 46% 60% Interest/desire 45% 53% Action/buy 54% 43% Use/enjoy 41% 32% Bond/advocate 40% 60% Transaction focused Relationship focused Source: Q21 To what extent does your marketing organization capture, analyze and act on customer data generated during the following customer lifecycle phases? n=1626 to
17 3. CMOs believe ROI on marketing spend will be the number one method for determining success by 2015 Seven most important measures to gauge marketing success Percent of CMOs selecting success measurements CH & AT Marketing ROI Customer experience 58% 63% 44% 54% Conversion rate/new customers Overall sales Marketing-influenced sales Revenue per customer Social media metrics 48% 45% 42% 42% 38% 54% 46% 42% 38% 35% Source: Q19 What are the 5 most important measurements you (will) use to gauge marketing success by 2015? n=
18 Agenda What customers want Where the marketing function is going Next generation marketing best practice examples 18
19 The vision of next generation marketing 19
20 Key capabilities required for the next generation marketing Improve & and integrate five critical processes Analyze data to find actionable insights Decide on the best action or communication Collect data that augments each customer profile Deliver engaging messages and capture reactions 20 Manage budgets and processes and measure results
21 COLLECT: Example 39% use their smartphone here 21
22 COLLECT: Feedback We instrumented and measured everything, and asked for feedback They did 5 times more often than on our website More importantly they gave US the feedback rather than airing their challenges publicly 22
23 Lesson 1 If you give your customers a voice, they will give you gold. 23
24 ANALYZE: Better online conversion I am unable to log into my account.. it is not recognizing my 24
25 ANALYZE: Better online conversion 25
26 Lesson 2 Less is almost always more. Reduced friction = better conversion. 26
27 DECIDE: Example 27
28 DECIDE: Example 28
29 DECIDE: Example 29
30 Lesson 3 Combining -Onsite data -Search data -Historical data -Customer data 65% lower opt out Sales per send +271% Customer CTR 500% 30
31 DELIVER: Example 31
32 DELIVER: Bank of America 32
33 Lesson 4 New channels and new business partners = New way to market New customers New revenue 33
34 MANAGE: Example 34
35 Lesson 5 Measure your ROI = make your success visible 35
36 Where to start? Bonus Lesson Don t just count. Do! Make decisions. Make mistakes. 36
37 Our permanent exhibition in the forum covers a selection of IBM solutions for next generation marketing feel free to explore them in the break Copies of the presented studies available in the forum 37
38 Thank You Marcel Kuster Leader Smarter Commerce CH & AT Daniel Schawalder Leader Industry Solutions CH & AT www-01.ibm.com/software/ch/de/commerce/index.html 38
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