From the CMSWire and Adobe webinar on May 2nd, 2012. Learn: Why faster feedback loops win — from Amazon's transparency, to Target's stealthy predictive marketing Why smarter visual experiences make brands like Path, Pinterest and Instagram so addicting How to identify the skills and disciplines you're missing, and move towards integrated, mature teams and tools Based partly on data from the Digital Marketing 2.0 Study - a collaborative research effort between the Society for New Communications Research (SNCR), Human 1.0 and DataXu. The study incorporated an online survey conducted in October 2011-January 2012, as well as opt-in interviews of survey takers. The 300 survey respondents included those in the management, marketing, digital, IT, and social media functions of their respective organizations. Enjoy - and feel free to ask questions here, or via my contact details on the last slide.

1. “Half my
advertising
doesn't work ... I
just don't know
which half!”
John Wanamaker (1838-1922)

2. “Advertising exists
only to sell
something. It should
be measurable and
justify the results
that it produced.”
Claude Hopkins (1866-1932)

3. "Because the purpose of
business is to create a
customer, the business
enterprise has two--and
only two--basic
functions: marketing
and innovation.
Marketing and
innovation produce
results; all the rest are
costs.”
Peter Drucker (1909-2005) 3

4. Digital Marketing 2.0
• Data presented comes from The Digital Marketing 2.0
Study - a collaborative research effort between the
Society for New Communications Research (SNCR),
Human 1.0 and DataXu.
• The study incorporates an online survey conducted in
October 2011-January 2012, as well as opt-in
interviews of survey takers.
• The 300 survey respondents included those in the
management, marketing, digital, IT, and social media
functions of their respective organizations.
4

5. 78% of recently
surveyed marketers
report struggling to make good use of their available analytics
and customer data.
5

6. Most marketers are
unfortunately living
in…
6

7. The Digital Stone Age
Source: http://www.flickr.com/photos/elka_cz/126813739/ (Under Creative Commons)
7

8. Bad news for businesses
• Don’t have the right skills (individually or in
combination)
• Don’t have the right teams
• Don’t have the right tools
• Don’t have the right data (or it’s fractured into pieces)
• Marketing, design, user experience and analytics are
rolled up into Customer eXperience Management
(CXM) and mastery of each discipline (or all of it) is
not going to happen overnight
8

9. The real challenge is in
manipulating huge
amounts of data
in real-time
To make decisions that may affect the
next prospect/customer in a
different way than the last person
Source: The Great Wave off Kanagawa, "Under a Wave off Kanagawa” by Japanese artist Hokusai

10. And yet…
10

11. 30% lack the
software/technology
to perform analytics on
digital marketing data
11

12. Why? Analytics, like
most administrative
functions... suck.
They are often the last interfaces built in commercial solutions,
let alone “homegrown” systems
12

13. 55%
of respondents
say
their organization “struggles to analyze”
the digital marketing data that is generated
13

14. Due to poor tools,
fragmented systems,
skill shortages
14

15. Results = Bad news for customers
• Businesses aren’t hearing your complaints (or praise)
• They are bombarding you with messages you don’t want
(because analytics don’t exist, are out of date, or
measuring the wrong data)
• Digital experience is marginal on “the normal web” and
poor to non-existent on the mobile web – the biggest
computing movement of our lives (the UX side of
customer experience)
• Bottom line: We CAN and SHOULD do better for
our customers, and our own businesses
15

16. NETFLIX Misreading the tea leaves
16

17. It’s the speed
(and accuracy)
of your
marketing loops
That separate the winners from the losers in the 21st century
17

18. OODA Loops
Source: www.thefabricator.com (graphic)
Col. John "40 second" Boyd, USAF (model)
18

19. How Target is using Big Data to Predict Behavior
Source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html
19

20. Amazon is US...
20

21. The key is…
21

22. Customer Lifecycle Loop
22

23. Sadly, 70% of
marketers say
They don’t have or don’t know if
they have a 360 degree view of their customers
23

24. It’s not just postcards and keycodes anymore…
24

25. Only 28%
have the
information to
confidently
tell their
leadership
what delivers the highest
marketing ROI
25

26. What skills and
disciplines are
missing?
26

27. Only 25%
say that analysis of
marketing data from IT
permits real-time business decisions
27

28. IT doesn’t typically
focus on real-time,
and aren’t marketers
Batch mode and siloed apps are the norm
28

29. On the flip side
29

30. 62% rely on their
marketing team
(CMOs, VPs, Digital
Teams, etc.)
to make technology suggestions
30

31. But Classic marketers
are focused on design,
branding, messaging
& demand creation
While depth of technology skills and understanding complex IT
systems, are not strong suits
31

32. And 58% believe they
lack the analytical
skills
and technology to perform analytics on marketing data
32

33. Because “quants”
haven’t been sexy in
business…
(outside of financial services)
Until now...
33

34. From the UX side of
Customer Experience
34

35. Smarter visual
experiences?
Examine the screenshot collection of UX/Flow I’ve been building at:
www.flickr.com/photos/dankeldsen/
35

36. Addictive Interfaces
• John Medina’s “Brain Rules”
• 12 Rules
• We should care about:
• #4 Attention: we don’t pay
attention to boring things
• #9 Sensory integration:
stimulate more of the senses
• #10 Vision: trumps all other
senses
• #12 Exploration: we are
powerful and natural explorers
36

37. Speed Matters for Instagram
• Knowing how users use the app, they can anticipate
the next action, and work behind the scenes
Source: http://speakerdeck.com/u/mikeyk/p/secrets-to-lightning-fast-mobile-design?slide=82
37

38. Smart context & Details on the small screen
38

39. Visuals, Discovery, Infinite Scroll
39

40. 40

41. “It’s like digital crack
for 25-44 year old
women...”
Not uncommon for people to spend 2 hours at a time on
pinterest - THAT is seriously sticky content
41

42. Why should you care?
42

43. 83% of senior brand marketers
state that “Customer
experience is among the most
critical determinants of brand
strength and business growth.”
CMO Council Research
43

44. Recommendations
To move forward
44

45. Where are your gaps? Where are you strong?
• People? • What are the questions you can’t
• Skills? answer?
• Applications? • Source of customers
• Systems? • Best customers
• Analytics? • Most loyal customers
• Quants? • Most painful customers
• Digital Marketers? • Most likely progression as a
customer
• Marketing-Savvy IT?
• Customer Lifetime Value
• User eXperience?
• Predicted next actions
• Print?
• Best “intervention” times
• Digital?
• Most effective channel
• Social?
• Best marketing spend in real-
• Mobile?
time
45

46. Because if you can’t
get traction and
results now
46

47. You’ll miss the
benefits respondents
stated as EPIC WINs
Increased Measurability and Accountability
Increased Customer Engagement
Lower Cost of Customer Acquisition
Better Customer Insights
47

48. Which would be a
massive #FAIL
It will take work - but THAT is doable - and you better get started
48

49. Get in touch:
twitter.com/dankeldsen
linkedin.com/in/dankeldsen
dk@InformationArchitected.com
617-933-9655
For free 30-minute debrief/consultation
on where you are with
CXM, UX, social and more
49