Platform Optimization – How to Leverage the Full Targeting and Optimization Capabilities in the Platforms Megan Pagliuca Peter Vandre 1 New competencies and addressability at scale extend the CCRM framework to capture a great opportunity Addressability at Scale The CCRM Framework Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF Customer Strategy Segmentation Value Planning Experience Delivery Media Planning Channel Planning Targeting & Personalization This creates a complete optimized customer experience that drives increased LTV, efficiencies and shareholder value Organization What data, systems, tools and technologies will be necessary? Infrastructure Measurement and attribution at the segment level then drives macro-level media and channel budgeting allocation How do we organize and what capabilities and business processes will be necessary? Financial Management Measurement & Attribution Budget Allocation Integrated targeting and customization across media and channels are optimized at the segment and individual level The Platform Marketer Competencies Identity Management 2 Addressability Optimization Audience Management Organization Platforms Utilization Targeting Personalization Measurement Tech Stack Current State of the Platforms 3 Top Addressable Platforms Both 4 Platform Marketing is Direct Marketing Share Like Ad Website Ad 5 In store Necessary Features for Direct Marketing Platforms must have targeting products, tracking capabilities and innovative formats in order to be a scalable platform for marketing 6 Targeting Tracking Innovative Formats Targeting products leveraging the platforms proprietary 1st party data and ability to leverage advertiser 1st party data is necessary Enabling basic tracking like a conversion pixel is necessary and cross device identification is the future Formats are larger rich media units natively placed within relevant content Paid Media Only Paid Media + Channel Paid Media Platform Sophistication 7 Tracking Formats Targeting H H+ H+ H M+ M+ L+ H M M M M H M H M M L L L H M L L Targeting Products Targeting Advertiser Audience Products Retargeting Mobile/Devi ce ID Direct Match Keyword Targeting Direct Match Lookalike targeting Publisher Audience Products Site Behavior Custom Content Contextual 8 Interest Check In/Geo Demographics Television From Cookie Based to Identifiable IDs Tracking 9 Walled Garden Basic Tracking Cross Device No 3rd Party Tracking 3rd party pixel certification Unique cross device ID No conversion pixel Conversion Pixel Persistency and Accuracy Drive likes or shares Drive to Site Drive to Site & Store Evolution of Ad Format to Native Formats Don’t get carried away, but we’re having our annual 5 Day Sale. 25% off ALL MACHINES! Don’t get carried away, but we’re having our annual 5 Day Sale. 25% off ALL MACHINES! 10 Larger Image results in more engaging experience Formats 11 Formats 12 Native units are becoming the new standard for mobile across publishers How can you take advantage of the opportunity? Creative & User Experience Platform Expertise & Skill sets Platform /Tool Partnerships 13 Negotiation Relationships Manual Mgmt Ad Server Bid Management Platform Expertise Analytics Data Management Ad server Programmatic Direct Desktop Social Ads API (sPMD) Publisher Closed Platforms Video DSP Display DSP 14 1 4 Direct Mobile Mobile App tracking Programmatic Ad server 15 Social Ads API (sPMD) Mobile Retargeter Mobile DSP The Platform Marketing requires represents a dramatic shift from the traditional marketing skills and competencies 16 The Traditional Digital Marketing Platform Marketing The big idea Big Data Media buys reliant on buying clout and scale Media buying driven through the tech stack and audience platforms Programs disconnected from the customer experience Integrates consumer experience across media and channels at segment and individual level Marketing moves at the speed of human decision Marketing moves in real time through programmatic approach to decisioning and execution Build Creative & Content Generation Capabilities 17 New processes Creative burnout happens at 5x the rate of display advertising. New process must be put in place to for content creation more frequently. Best practices from print Ad formats have more space for engaging creative and copy. Best practices should be leveraged from print rather than display. Integration and clarity Integration and organizational clarity between the PR and the Paid Media organizations need to be established. Closely engaged teams The media optimization team need to be closely engaged with the creative team for closed loop creative optimization Customer Experience in Channel Personalization 18 What is personalization? What is it? Engaging consumers, one-on-one in a customized and contextually relevant experience based what we know about them and others like them. 19 Why is it so important? No value is created from cCRM until we change who and how we interact with consumers. Personalization is the last mile. It shapes how we engage with consumers and their future value. Interaction Personalization Example: Cruise Consumer searches Google for “Caribbean all inclusive resort deals and clicks on RC listing” Customized landing page shows top rated family cruises in March with departures from Miami Selects featured 5 night Western Caribbean Cruise. Grand suite recommended with family friendly features Guest registration completed in one step based on pre-populated family information. Guest offered free entertainment upgrade based on loyalty segment Smart Booking Data Entertainment upgrade on us! 1 2 3 4 5 RT data services and hub Customized landing page Intelligent cruise research Smart Booking Pre-cruise cross-channel support • Consumer ID tied to cookie ID • Full profile data including segments, scores, and preferences 20 • Segment= Affluent Young Family • Est. travel: March-April • Departure city preference: Miami • Filtered top resort recos • Custom room recos • Customized offer • Guest profile data • Loyalty segment • Customized email welcome and trip guide How this is different than “run of the mill personalization” We are creating a personalized customer path not just serving up a product recommendation on a homepage Experience is being personalized based on cross channel data for known and anonymous consumers contextual, behavioral, and preference Analytics is embedded and everywhere Booking window, product, accommodations, offers, up sell, rewards, creative, messaging This needs to work at customer speed (real time) 21 What you need to pull off personalized channel experiences TECHNOLOGY PROCESSES Data 22 Analytics • Customer Data Integration • Opportunity Discovery • Single View of the Consumer • Decisioning Development • Data Insights • Testing and Optimization • Behavioral Impact • CDI/DDI • Interactive Marketing Hub • Integrated Marketing Data Warehouse • Predictive Analytics Tools (e.g. R, SAS) • Decision Engine • Testing Module Experience Execution • Interaction Design • Media Planning • Channel plan Integration • Asset/Media Development • Delivery Requirements • Planning • Content Management System Integration • Decision planning tool (or coded logic) • Channel Personalization Tools/Plug-ins • Setup and Decision Configuration • Reporting and Monitoring • Reporting and Dashboards Decision and Personalization Solution Solution description: An analytically fueled optimization engine that enables relevant consumer interactions at the individual level maximizing the impact of marketing efforts across all channels. EM Agent Display Search Social Data API Decision Management Interactive Platform (IMP) Testing cR Optimization CRM Database (CDW) Insights Insights Web Service Lists Decision Management Single decision management platform and IMP serve all channels CC Interactive Conductor Campaign Feed 23 Site Channel-specific interface File delivery - latent Batch Mobile Data DM Flexibility is very important for decision mgt platform IMP should be real time and ideally allow for both anonymous IDs and PII services Personalization Case study: Multinational Bank Background: An top 5 US multinational bank with many product lines including retail banking, investment, and personal credit 80+% of customer touches are through digital channels, so company identified the need to ensure targeting, relevance, and optimization of those customer experiences Their goal was to maximize the value of customer interactions across all owned digital channels – Site, Email, Mobile 24 Personalization Case study: Multinational Bank Phase 1: Prove it out Phase 2: Scale Site Phase 3: Harvest Site and test Cross Channel 2011 2012 2013 • Website pilot on 10 pages • Expanded to over 100 pages • Expand site to over 300 pages • Basic integration with Mkt database (30 attributes) • Integration with over 800 attributes and 80 million customers from Mkt database • Introduced email personalization in Q4 (15% lift) • Prove lift over existing personalization system 35% lift in purchase rate test cell relative over prior solution control Value scaled 10 fold and lift increased by additional 5% *Conservative estimate as it does not include offline sales increases 25 • Mobile integration (with Q1 2014 launch) $60M in 2013 incremental revenue* We recommend getting started with a Pilot Common starting spots Website Homepage + 8 to 10 high traffic product pages Or High- traffic campaign landing pages Or What it takes to be successful • Speed to value mentality (setup to results in 3 months) • Focused data integration (10 to 20 core 1st party data elements to start) • Rigorous testing plan, testing execution, and optimization approach • Initially supplement existing personalization efforts • Strong sponsor in digital marketing Email program 26 Summary Addressable audience platforms are enabling a much richer, personalized customer experiences We need to start thinking about these platforms, from Facebook to your website, as direct marketing platforms You need to develop and acquire the skill sets and technology with the right partnerships 27 Thank you! Peter Vandre @Merkle_Peter Megan Pagliuca @meganpagliuca 28