The Power of Modern Digital Marketing Automation How to Achieve Relevant Interactions with Always-On, Empowered Customers
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The Power of Modern Digital Marketing Automation How to Achieve Relevant Interactions with Always-On, Empowered Customers WHITE PAPER SAS White Paper Table of Contents Introduction . 1 The World of Marketing Is Undergoing a Massive Transformation . 2 A Power Shift to Consumers via the Internet and Social Media . 2 Media Fragmentation . 2 The Demand for Consistent, Personalized Attention Across Channels . 2 The Data Explosion . 2 Succeeding in the ‘New Normal’ . 3 What’s Needed: Marketing Automation That Supports Integrated, Multichannel Campaign Management . 3 Customer Insight . 3 Campaign Management and Optimization . 4 Marketing Performance Management . 4 The Critical Enabler: A Centralized ‘Marketing Brain’ . 5 The Current State of Automated, Multichannel Campaign Management . 6 The Future of MCCM: Managing Conversations Across Social Media . 7 The SAS Approach to Automating Multichannel Campaign Management . 8 The Value of a Framework-Based MCCM Solution Powered by Marketing Automation . 9 Learn More . 9 Learn More About SAS® Customer Intelligence Solutions That Enable Marketing Automation . 10 The Power of Modern Digital Marketing Automation Introduction Modern consumers are Web-savvy, mobile-loving people who typically spend more time online than reading magazines and watching TV . These changes in behavior are fundamentally changing the face of marketing – and in ways that are bringing about the convergence of direct marketing and mass marketing . For example, if you are a direct marketing professional executing targeted email campaigns and mobile marketing strategies, you are likely bumping up against mass-marketing campaigns . Why? Because like you, mass marketers are investing more in online ads than ever before – at the expense of TV commercials and print ads . Why are both sides of the marketing ecosystem coming together in the digital world? Because consumer behaviors and expectations have radically changed in recent years – and in ways that blur the lines between direct and mass marketing . Regardless of what side of the “marketing house” you work for, if you want to reach today’s consumers, you must meet them where they like to play – on the Internet, through their mobile devices and on social media sites . At the same time, you need to find ways to personalize messages, tailor offers and engage customers in interactive dialogues that build trust and drive loyalty . This requires sophisticated marketing automation technologies that leverage customer intelligence, optimize interactions across channels, and monitor and respond to changes in customer behaviors . For example, if you are a direct marketer of outdoor gear and you want to target busy professionals who like to fish, you’d likely have an e-commerce site where they can get their shopping done after hours . Ideally, you would track each customer’s virtual footsteps through your website; combine this data with point-of-sale transaction data, loyalty card data and demographic data; analyze it all in real time; and generate analytically driven, direct email offers with special pricing for each customer . At the same time, you’d probably want to place banner ads on websites like outdoorlife.com (where mass marketers would likely be posting ads), host a blog about fishing, engage in customer conversations on your company’s Facebook fan page, and set up a Get Satisfaction site where customers could discuss how to use and improve your products . Through these social media interactions, you could engage in public, one-to-many dialogues with your most enthusiastic customers and help them become more effective advocates for your business . In this way, you would (by default) blur the lines between direct and mass marketing . This paper explores these trends in detail and considers their implications for marketing professionals and their technology choices – both today and in the future . 1 SAS White Paper The World of Marketing Is Undergoing a Massive Transformation According to IDC, investments in digital marketing (which include company websites, email, search and display ads, digital events, search engine optimization and social networking) are growing at the expense of traditional advertising . So what’s driving these changes? Let’s take a look at some of the most important and influential trends . A Power Shift to Consumers via the Internet and Social Media Over the past few years, there’s been a continuous power shift to consumers . “The convenience of mobile Customers can share their opinions online and influence tens of millions of people to buy connectivity has revolutionized from you – or not . According to a Nielsen Global Online Consumer Survey1 of more than how people are engaging with 28,000 online consumers throughout 56 countries, 36 percent now own a smartphone – a 15 percent increase over 2010 numbers . Nielsen also found that 35 percent of online digital content and each other respondents worldwide are likely to make payments with their phones . These metrics around the world. With the reinforce the need for organizations to provide consistent, relevant and personalized growth of smartphones, mobile messages across multiple channels . Consumers want to determine how and when companies can engage with them, and they now hold the power to control that video consumption is on the engagement – at any time, in any place – and with their own personal mobile devices . rise for entertainment content, particularly in emerging markets Media Fragmentation where many consumers leapfrog The attention of consumers is fragmented across a wide range of media channels home Internet altogether in favor and devices . The Internet, mobile applications, email, Twitter and other channels have of the all-in-one smartphone.”3 cannibalized the once-dominant position of influence held by TV, direct mail, and magazine ads . Dounia Turrill Senior Vice President, Client Insights, Nielsen The Demand for Consistent, Personalized Attention Across Channels Today’s customers demand product and service information that’s personally relevant, timely and delivered via preferred channels when they choose to interact through them . The Data Explosion The world contains an unimaginably massive amount of digital data today – and it’s increasing tenfold every 10 years . Companies are collecting, storing and linking massive amounts of data . For example, Wal-Mart handles more than 1 million customer transactions every hour and stores them in 2 .5 petabyte databases, which is equal to 167 times the number of books in the Library of Congress .2 1 A Nielsen Report, “Global Online Consumers and Multi-Screen Media: Today and Tomorrow,” May 2012. nielsen .com/us/en/reports/2012/global-online-consumers-and-multi-screen-media-today-and-tomorr .html 2 “Data, Data Everywhere,” The Economist, Feb. 25, 2010. economist.com. 3 A Nielsen Report, “Global Online Consumers and Multi-Screen Media: Today and Tomorrow,” May 2012. 2 The Power of Modern Digital Marketing Automation Succeeding in the ‘New Normal’ The trends described above point to a gradual convergence of direct and mass marketing models – and the establishment of a “new normal”: the need for a one-to- one marketing model that’s customer-centered, interactive, personalized, multichannel and powered by marketing automation . In this new world, as customer data and interactions become increasingly digital, the need for marketing automation increases proportionately . In the new normal, we’re not just talking about a new direct marketing paradigm . What we’re talking about is much more dynamic: marketers generating unique customer insight and feeding it into marketing automation technologies to improve real-time dialogues with customers when and where they choose to engage . At the same time, we’re talking about moving customer insight from the IT department to the marketing department – and then to the front lines where customer interactions occur – stores, websites, call centers and beyond . When analytically driven insight informs the interactions and experiences that customers have with your business, you can build trust, engage in meaningful dialogues with customers and improve business outcomes . You can even turn customers into advocates who promote your business through social media and their personal address books . What’s Needed: Marketing Automation That Supports Integrated, Multichannel Campaign Management The big question is: What’s needed to actually manage multichannel marketing campaigns and one-to-one interactions with customers around the clock? You need automated multichannel campaign management (MCCM) solutions that enable you to deliver highly personalized, integrated and relevant communications across channels . Personalization is made possible by leveraging sophisticated customer intelligence and applying it to marketing plans, tactics and one-to-one interactions . There are three main functional areas that automated MCCM must include: Customer Insight Customer insight is critical to creating successful marketing campaigns . By having insight into your customers’ preferences, attitudes, behaviors, profitability and risk, you can make smarter decisions about how, what, when and where to communicate with them . There are two primary components of good customer insight, including: • Quality customer data: The foundation for good customer insight is quality customer data that can provide a complete view of your customers . • Customer analytics: The second essential element is a set of models that analyzes things such as