Digital Transformation

Strategy: EY’s Approach to

Marketing Automation
Milan, 2017

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EY Proprietary Material – Confidential – Not for Distribution
 The right content, at the right moment, on the right channel
Marketing Automation improve Customer Interaction Effectiveness

What customer wants MA key Benefits

New personalized and coherent
experiences for each customer and
its specific expectation:

Tailored Personalized Constant & Rapid Relevant Feedbacks Coherence through all Touchpoints
Improved Customer
Experience measure, track, and respond to all customer perception that there is no other service
a one-size-fits-all strategy is feedback like one Interaction Management
obsolete

Improved Content
How companies can evolve their Customer Interaction Relevancy

Improved Conversion rate

and reduced acquisition
Real Time Experience and Customer Centricity Analytics & Coherent
costs
Omni-channel Relationship & Journey Management Content Marketing
streamline digital journeys across a true 360° customer view, moving from fully personalized, context and Reduce Time to
channels product to customer perspective data driven messages Market

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 Major Risks of Failure in Marketing Automation Projects
why sometimes capabilities and opportunities are not fully exploited

Poor Functional & Integration

No Clear Objectives Requirements
If business objectives are unclear, it could leave a
Inadequate requirements documents lead
business to initiate projects that convey
the project to money and time wasting on
contrasting information and message
unnecessary work

Absence of a Journey Design

Lack of Process & Planning Methodology
HOW TO
Lack of planning leads to time wastage in trying A lack in journey design methodology lead
to figure out how to solve the challenges that the EXPLOIT to create flowchart based only on previous
project faces AUTOMATION traditional experience that not leverage the
OPPORTUNITIES opportunities offered by the capability

Unsustainable Organizational
Model and Skills Failing in Cost and Income
A poor operating structure can lead to a lack of Estimation
efficiency and effectiveness. To let company A bad estimation of the budget required for
perform well it should be revised the current the project lead to money loss and
operating model making it aligned with the inefficiency
Marketing function or the business strategy

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 Transformational Framework
key building blocks to fully exploit Marketing Automation capabilities potential

From strategy definition to concrete capabilities activation and optimization, while guaranteeing operational
readiness and funding opportunities for digital innovation

CONCEPT & DESIGN BUILD & TEST DEPLOY & LEARN OPTIMIZE & SCALE

Ambition & Business Requirements Optimization &

Roll Out Plan Definition
Business Strategy Definition Full-Deploy

Target Operating Model Design Proof of Concept

A/B Testing and Scale
(People, Skills, Organization & Process) Set-Up & Evaluation

Adoption Roadmap Solution Implementation &

Definition Test Execution

Financials Impacts &

Profit & Loss Evaluation
Business Case Definition

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 Ambition Setting & Strategy Definition
building a strategic roadmap that guarantee target picture achievement

Understanding Business Context, Priorities and Goals to sustain target achievement with our holistic approach

Collect & Define Strategic Assess Identify Constrains and Define transformational
Guidelines Impacts Quick wins roadmap

►Identify the strategic purpose
(eg. Commercial, service,
digitalization, etc) execute it in
an integrated method across
the organization in order to
reach client’s goals
►Agree-upon strategic plan for
change and align the
organization
►Map contemporaneuos on-
going projects to avoid risk of
misaligned solutions that do
not realize the expected
business benefits (Eg. New
CRM systems)
►Assess underway
transformation projects that
could act in synergy with the
capability implementation (Eg.
DMP projects)
►Identify constraints (eg.
Channel unavailability, existing
contracts, outsourcers
integration)
►Levarege on lessons learned
and past projects experiences
to identify Quick wins
►Translate strategy into High
level transformation roadmap
(e.g. Country prioritization,
Stakeholder identification,
Communication plan,
Campaigns prioritization, etc.)

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 Target Operating Model Definition
building a functional model that guarantee target picture deployment
Key Dimensional Drivers EY Target Operating Model Process Definition

Process

Develop
4
Develop new detailed Target Operating
Model according with client’s
requirements
3 Define
People
Define required new capabilities required, to-be processes
desired and existing capabilities enhancement accordingly

2 Identify
Identify Quick wins enhancement initiatives that can be
quickly implemented during transition stage
Architecture and Technology
1 Assess
Understand and assess As-Is processes, key stakeholders and roles, existing
operating model, Map Skills and organization structure and key pain points

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 Processes
new processes need to be designed to activate Marketing Automation capabilities
1 Plan
Campaigns definition and planning
according with marketing objectives
and business insights
Activities
• Collect business objectives and Insights
• Define campaign KPIs
• Define target audience to engage
• Select channels, triggers and
interactions
• Define content and creativity to be
developed by wave/clusters
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Customer Journey Management
2 Design
Design customer journey flows, triggers
and main interaction points
Activities
• Desaing and update a catalogue of
journeys based on customer lifecycle
(Awareness, Activation, Onboarding,
Usage, Assistance, Upselling, Loyalty,
Invoicing, …) and porpuse
3 Implement
Identify data integration points, set up
data flows and configure customer
journeys
Activities
System integration and configuration
according with:
• Business side activities (Promo &
Triggers set up, Channel engagement,
Content/creativity integration)
• IT side activities (Database set up and
configuration)
4 Activate, Test and monitor
Create an environment to test
configuration and flows, define KPIs and
reporting and launch
Activities
• Identification of existing reports
• Definition of new KPIs Reporting for
Marketing Automation
• Testing customer journeys and adjust
• Launch customer journeys
 People 1/2
Customer Journey implementation will require the introduction of new roles
Customer Journey Strategist Customer Journey Builder

• Collaborates with marketing teams on campaign design and execution. • Design customer journey and create flows within Marketing Automation
• Support Marketing PM to define marketing objectives, design customer Platform.
journeys and optimize journeys based on insights • Develops multi-channel and personalized catalogue of journey keeping into
consideration industry’s peculiarities.

IT PMO Data Analyst

• Support and coordinate Business and IT to manage platform set up and • Improve business decisions based on performance analysis and customer
data flows. data.
• Create, implement and maintain dashboards of key success metrics. • Identifies Business Insights sharing them with business units and supports
in the adjustment.
Activities & Roles
KPI, Test and
Planning Design Set up Collect & Enrich Analyze Insights Sharing Optmize
Launch
Customer Journey
Strategist

Customer Journey
Builder

Data Analyst

IT PMO

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 People 2/2
Customer Journey implementation will require the introduction of new skills
Customer
Journey Strategist
• Passion for Online, Digital
Marketing and the use of
technology to improve the
customer experience
• Strong understanding of
performance driven digital
marketing, web analytics tracking,
tagging best practices and available
data relevant for campaign
optimization
• A keen interest in digital marketing
and strong knowledge of the latest
developments and future trends
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Customer Journey
Builder
• Digital Marketing Cloud Platform
knowledge
• Experience in working with digital
marketing channels (SEO, SEM,
Display Adv and email)
• Strong understanding of customer
insight and the ability to apply
insight in support of a creative or
strategic challenge
• Passion for problem-solving and
curiosity about how consumers
research and make purchase
decisions
IT PMO
• Strong IT skills
• Good working knowledge of
software release procedures
• Experience with databases
• Hands-on software engineer
• Demonstrable IT analysis
experience with knowledge and
expertise in analytical methods
and tools
• Be able to identify, design and
implement key technical software
solutions that offer increased
strategic value
Data Strategist
• Definition of KPI’s to evaluate
performances
• Benchmarking and competitor
analysis
• Experienced in process, data and
requirements analysis
• Strong analytical skills combined
with excellent attention to detail
• Analyze data from a variety of IT
systems translating, simplifying and
providing reports and statistical
information
 Effective Governance Model
how to manage Marketing Automation function within the organization
Despite the belonging to the organization, there are basically two ways through which each Business Unit can dialogue with the M.A. Center of Excellence in order to reach a
consolidated routine

Centralized Scenario Hybrid Scenario

BusinessUnits BusinessUnits
BU BU BU BU
Proposed framework

BU2 BU3 BU4 BU5 2 3 4 5 B2

A2 A3 B1

2 3 4 5
A B
BU1 1
Automation 6 BU6 BU Automation BU
A1 1 6 B3
CoE CoE

• CoE’s resources manage both marketing automation – from support in • Marketing Automation expert directly involved inside Business Units to
designing the journeys to their implementation –and data flow with IT manage the whole journey design phase and the development/collecting of
department creativities
Description

• This operating model helps to develop 360° subject experts that will help
• Maintain a small & agile CoE structure to manage journeys’ implementation
business unit to adjust new customer driven communication activities
(business side) and data flows (IT side)
• It require an increase in the number of dedicated resources

+ Develop 360° subject experts

+ Development of deep technicalskills + More agilestructure
Benefits

+ Competence differentiation and focus on specific activities

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 Outsourcing vs Insourcing
choosing the right balance between internal & external resources to deploy

Fully outsourced team Hybrid team

Identify a strategic partner to outsource a standing alone external Marketing Introduce a Temporary marketing automation team in order to set up Journeys
Automation Center Of Excellence collaborating with other BUs and agencies and Reports while creating internal competencies through training on the job

• High skilled ready-to-go team • Temporary skilled support

• Lower fixed costs and no training needed • Future skilled internal resources
• No risks thanks to consolidated experience on Marketing Automation • Lower OPEX
• High scalability of skills and competencies • Higher internal involvement and personnel commitment
• High responsiveness thanks to past experience, methodologies and proof of
concept

• No internal skilled resources available in the future • Internal resource to be trained

• Higher OPEX • Higher fixed and training cost
• No scalability
• Medium Responsiveness due to Temporary specific skills availability
and lacking of internal ready competences

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 Financials Impacts & Business Case Definition
understand key economic drivers to develop P&L structure

Revenues derived from additional customers activated through dedicated

Prospect Acquisition
prospect conversion journeys (e.g. Trialist, Quote Request, etc.)

Up/Cross selling Increase & Increase of upselling volumes, thanks to the improvement of the campaigns’
Downgrade Mitigation redemption rate through personalized experience (eg. Abandoned Cart, etc.)
Incremental
Revenues
Retention & Maximize revenues through personalized anti-churn actions and increase
Prevention chance of payment with dedicated journey

Saving from interactions optimization thanks to the improvement of other

Channel Mix
channels effectiveness that produce traditional channels contacts reduction
Optimization
Efficiency & (e.g. OB, DM)
Costs
Reduction
Channels Saving of operational costs related to the reduction of variable expenditures
Operational Savings derived from direct marketing campaigns

Reduce complexity and personnel effort to create new opportunities and

Effort Saving
assign employees on activities with more added value

Page 12 1 January 2014 Presentation title

Key Take Home

1 It is not a matter of buying a new tool, it is a company transformation

2 Start from shared goals and define the transformation roadmap accordingly

3 Evolve business processes coherently with new available capabilities

4 Introduce new Digital and analytical skills

5 Design and end to end Journey catalogue but prioritize the roll-out, test learn
and adapt

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