J.

Graeme Noseworthy
Strategic Messaging Director
IBM

@graemeknows
 What are the leading trends in
data-driven marketing and loyalty for
today’s digital economy?

@graemeknows
 CMOs feel underprepared for the deluge of data and the
growth in social media; the pace of change is too fast
Preparedness for the data explosion Preparedness for social media

71% 68% 66%

82%

29% 32% 34%

18%
2011 2013 2011 2013
Prepared Underprepared

@graemeknows Source: 2014 IBM IBV Global C-Suite Study

 CMOs expect to accelerate the introduction of digital
marketing technologies over the next three to five years
Intended use of digital technologies (3 to 5 years)

Advanced (predictive) analytics 94%

66%
Mobile applications 94%
80%
Customer relationship management 89%
81%
Collaboration tools 87%
68%
Content management 81%
73%
Search engine optimization 80%
62%
Reputation management 79%
63%
Email marketing 47%
46%

2013 2011
@graemeknows Source: 2014 IBM IBV Global C-Suite Study
 CMOs identified three critical success factors for
dealing with the emerging digital economy
Use
advanced
analytics for
deep customer
insight

Define a
rewarding
customer
experience

Effectively
execute on
the customer
promise

@graemeknows Source: 2014 IBM IBV Global C-Suite Study

 How does Big Data & Analytics enable
CMOs to generate real customer loyalty to
drive marketing performance?

@graemeknows
 Key Shifts in Marketing
are driving the urgency to act

1. Ongoing emergence of Big Data

65% of business are not using big
data for business advantage

2. Shift of power to the consumer of consumers rely on social 84%

networks for purchase decisions
3. Increasing pressure to do more with less

4. Recognition that loyalty drives performance

32% higher return on invested capital
for organizations using advanced analytics

@graemeknows *2013 IBM IBV Big Data and Analytics Study & ODM Group Study
 Addressing Key Imperatives
that are aligned to business results

1. Optimize operations and reduce fraud From Acquisition

2. Maximize Insight and IT Economics
To Personalization
3. Acquire, Grow & Retain Customers
4. Transform Business Practice From Retention

5. Create New Business Models To Loyalty

@graemeknows
 How does Big Data & Analytics help
marketers to gain one single, reliable
vision of the customer?

@graemeknows
 Paradigm shifts enabled by big data
Leverage more of the data being captured

TRADITIONAL APPROACH BIG DATA APPROACH

All available Analyzed All available

information information information
analyzed

Analyze small subsets Analyze

of Information all information

@graemeknows
 Paradigm shifts enabled by big data
Reduce effort required to leverage data

TRADITIONAL APPROACH BIG DATA APPROACH

Small
amount of
carefully Large
organized amount of
information messy
information

Carefully cleanse information Analyze information as is,

before any analysis cleanse as needed

@graemeknows
 Paradigm shifts enabled by big data
Data leads the way—and sometimes correlations are good enough

TRADITIONAL APPROACH BIG DATA APPROACH

Hypothesis Question Data Exploration

Answer Data Insight Correlation

Start with hypothesis and Explore all data and

test against selected data identify correlations

@graemeknows
 Paradigm shifts enabled by big data
Leverage data as it is captured

TRADITIONAL APPROACH BIG DATA APPROACH

Data

Analysis

Data Repository Analysis Insight

Insight

Analyze data after it’s been processed Analyze data in motion as it’s
and landed in a warehouse or mart generated, in real-time

@graemeknows
 OK, so now what?

@graemeknows
 To outperform
as data-driven marketers

1. Use analytics to improve core competitiveness Before Capture and consolidate

but understand that it’s a consumer requirement disparate data about consumers across
touch points for 1 version of the truth
2. Make data-driven loyalty a real differentiator

3. Be more right, more often… and let your

Uncover hidden patterns During
and associations within consumer data
customers know it. to predict what they are likely to do next

4. Collaborate across the enterprise to increase After Review, measure and apply the
optimal offer, time and channel that is best
adoption of your loyalty programs. for each individual prospect and customer

5. Send the value downstream where your

customers are “wading” for you

@graemeknows
 Manage Risk
from agency to audience and back

Access the right data

1. Guard against poor-decision making

2. Protect against security and privacy risks Apply governance policies

3. Get the risk-opportunity equation right
Comply with regulations
4. Keep your audience informed at all times
Use T&Cs anyone can grasp

@graemeknows
 Create Agility
by applying analytics across the board

1. Adopt a new approach to the onslaught of data Systems of Record

CRM / Transactions / ERP / Products /
2. Unify to Utilize – knocking down silos to add data
Content / Documents / Offline / Finance
and add value to loyalty programs

3. Build a culture that infuses analytics everywhere meets

4. Create Data Attraction Strategies that refine
insights into relevance and then drive that Systems of Engagement
relevance back to the consumer Ads / Clickstreams / Social / Mobile /
DMP / Experiential / Call Centers / SaaS
5. Personalize each step. Consistency is
authenticity. Loyalty is more than a name or a list
of recent transactions.

@graemeknows
 How do leading marketers transform their
big data & analytics environment to
outperform in their industry?

@graemeknows
 Creating an Ecosystem of Insights & Loyalty
which in turn generates measureable relevance and revenue

Enhanced
Data sources Real-time analytics Actionable insight applications

Linear & Cognitive Customer

Non-Linear experience

Image and video Enterprise

Enterprise New business
warehouse
warehouse Decision models
management
Enterprise
content
+ Financial
performance

Transaction and
application data
Information
ingestion and
operational
+ Data mart
Data mart Predictive analytics
and modeling Risk
information
Social data Operations
Analytic
Exploration, appliances Reporting, analysis, and fraud
Analytic content analytics
Third-party data landing and appliances
archive
IT economics

Discovery and
Information governance exploration

SYSTEMS—SECURITY—STORAGE
@graemeknows
 Sending the Value of Insights Downstream
Industry Leaders understand loyalty requires horsepower

1. Coupons.com – gain accurate insight into marketing

campaigns and consumer preferences

2. Catalina Marketing – make the most of every single

transaction at the client’s POS

3. Coca-Cola – build brand loyalty while enabling the

creation of campaigns tailored down to the persona

4. BestBuy – create hyper-personalized marketing

campaigns and e-coupons, boosting customer loyalty

@graemeknows
 Real World Case Study: Coupons.com
unprecedented views into marketing performance, sales and revenue

Situation:
The sheer volume of consumers, partners, sales channels,
coupons and products it offers leads Coupons.com to generate
and capture massive amounts of data. Data types include
consumer profiles, transactions, detailed coupon information
and account information for corporate customers.

Solution:
Integrate structured and unstructured data from multiple internal
and external sources, and run complex queries. Provides
corporate and account management analysis dashboards and
ad hoc query capabilities used by the account management,
corporate, client marketing and partner marketing teams.

Benefits:
Generates analytic reports and queries up to 95 % faster, in
minutes instead of hours. Helps improve account management
and campaign measurement and supports intelligence-based
decision making for personalized campaigns.

@graemeknows
 Real World Case Study: Catalina Marketing
making the most of every single transaction at the client’s POS

Situation:
Catalina collects, stores and analyzes data to determine the
buying preferences of millions of households. They sell this
information to customers, such as grocery stores and
pharmacies, so they can better understand and serve their
consumers right at the POS.

Solution:
Catalina implemented big data and analytics hardware and
software to store large volumes of data, manage data growth
and perform data analysis on complex and large data sets at
extremely high speeds.

Benefits:
Catalina saw dramatic reductions in processing times enabling
them to add value in real time to the customer experience at the
point of sale… and beyond.

@graemeknows
 Real World Case Study: Coca-Cola, Inc.
bringing loyalty programs from a few features to a full experience
Situation:
Coca-Cola’s goals are to grow brand advocacy and increase
consumer engagement across its many brands, with a focus on
expanding its member base and turning more of its My Coke
Rewards members into engaged members.

Solution:
Build a sophisticated consumer database solution that tracks,
monitors, manages and analyzes virtually all demographic,
behavioral and interaction data of its 25 million loyalty program
members. Provide insight into how consumers feel toward the
company’s brands and how best to build and inspire brand
devotion and social advocacy.

Benefits:
Drives goal of doubling loyalty program membership from 25M
to 50M members. Provides insight into how they interact and
feel about the brand. Helps determine which strategies are
necessary to build brand loyalty and create highly relevant
campaigns tailored down to the persona level.
@graemeknows
 Real World Case Study: Best Buy Stores
making loyalty interconnected, instrumented and intelligent
Situation:
Marketers depended on an outdated system to run marketing
campaigns. Getting access to the data was difficult at best.
They needed to extract customer data subsets to develop
segmentation and other predictive models, and then use the
resulting models to score its overall customer database before
running campaigns.

Solution:
Create a multichannel view of each customer’s activity,
including orders, products, website visits, clickstream,
campaign response, social media activity and other metrics.
Deliver customer behavior segmentation and analytics
capabilities, as well as best practice reporting.

Benefits:
Increases data processing speeds by 450x, accelerating data
analysis and segmentation. Accelerates report generation
speeds by 90%+, from weeks to minutes, helping marketers
develop and execute campaigns faster.
@graemeknows
 THINK BIG
Start Small

Imagine it. Realize it. Trust it.

Build a culture Invest ahead of Be proactive
that infuses scale in a big about privacy,
analytics data & analytics security and
everywhere platform governance