1. Tweet Up #AcxiomSeries
Follow A Lifecycle Roadmap to Attract,
Nurture and Grow Your Best Customers
Tim Suther, Acxiom (@timsuther)
Luca Paderni, Forrester Research
Bryan Throckmorton, Acxiom (@globalthrock)
Tom Brown, Second Curve Capital
www.acxiom.com/ www.acxiom.com/ www.acxiom.com/ www.acxiom.com/
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2. Tweet Up #AcxiomSeries
Customer Life-Cycle Marketing Demands
New Metrics
Luca Paderni
Vice President, Principal Analyst
Forrester Research
www.acxiom.com/ www.acxiom.com/ www.acxiom.com/ www.acxiom.com/
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3. The Customer Life Cycle Demands New Metrics
Luca S. Paderni, VP Principal Analyst
March 15, 2011. Prepared for Acxiom.
3 © 2010 Forrester Research, Inc. Reproduction Prohibited
2009

4. Agenda
The century-old funnel’s influence is starting to fray.
The customer life cycle better represents today’s marketing
process.
The customer life cycle helps companies map marketing’s
core challenges.
The rise of the customer life cycle demands new metrics.
4 © 2010 Forrester Research, Inc. Reproduction Prohibited

5. The century-old funnel still has influence
 Elias St. Elmo Lewis, one of the business
gurus of his day, created the Attention,
Interest, Desire, and Action (AIDA) model a
century ago.
 The funnel stretches back to AIDA and still
influences marketing leaders today.
 The funnel simplifies the language that
marketing leaders can use to describe three
key aspects of their work:
– Consumer psychology.
– Marketing mix measurement.
– The business value of marketing.
5 © 2010 Forrester Research, Inc. Reproduction Prohibited

6. The funnel simplifies thinking about three important
aspects of marketing
Source: October 28, 2010, “It's Time To Bury The Marketing Funnel” Forrester report
6 © 2010 Forrester Research, Inc. Reproduction Prohibited

7. The funnel's influence is starting to fray
 The game has changed:
– Marketing has grown more complicated.
– Media choices have exploded.
– Consumers have asserted themselves more visibly than ever before.
 The funnel struggles to account for many of these new realities.
 In particular:
– Consumer behavior is less funnel-like than previously thought.
– Loyalty and word of mouth are not represented in the funnel.
– The funnel neglects customer lifetime value and profit.
7 © 2010 Forrester Research, Inc. Reproduction Prohibited

8. Agenda
The century-old funnel's influence is starting to fray.
The customer life cycle better represents today’s
marketing process.
The customer life cycle helps companies map marketing’s
core challenges.
The rise of the customer life cycle demands new metrics.
8 © 2010 Forrester Research, Inc. Reproduction Prohibited

9. Forrester defines the customer life cycle as:
Customers’ relationship with a brand as
they continue to discover new options,
explore their needs, make purchases,
and engage with the product experience
and their peers.
9 © 2010 Forrester Research, Inc. Reproduction Prohibited

10. The customer life cycle is a better fit with modern
marketing
Source: October 28, 2010, “It's Time To Bury The Marketing Funnel” Forrester report
10 © 2010 Forrester Research, Inc. Reproduction Prohibited

11. The customer life cycle is a better fit with modern
marketing
 The customer life cycle model is a better fit with how leading marketers
conceive, execute, and measure in the 21st century because it:
– Puts the customer at the center of marketing.
– Involves the entire brand experience.
– Describes an ongoing relationship.
11 © 2010 Forrester Research, Inc. Reproduction Prohibited

12. Agenda
The century-old funnel's influence is starting to fray.
The customer life cycle better represents today’s marketing
process.
The customer life cycle helps companies map
marketing’s core challenges.
The rise of the customer life cycle demands new metrics.
12 © 2010 Forrester Research, Inc. Reproduction Prohibited

13. The customer life cycle recognizes that marketing is
continuous
 The customer life cycle surrounds the customer with the total brand
experience across four relationship phases:
– Discover.
– Explore.
– Buy.
– Engage.
 It simultaneously addresses key issues in customer psychology and
experience, marketing mix performance, and business value creation.
13 © 2010 Forrester Research, Inc. Reproduction Prohibited

14. The customer life cycle helps companies map
marketing’s core challenges
 Marketers can tie the customer life cycle to the three key issues that the
marketing funnel helps to simplify: consumer psychology, marketing mix
measurement, and the business value of marketing.
 Each of these areas is inherently complex.
 Marketers must embrace this complexity and use the customer life cycle
to show links between the overall strategy and specialized thought in each
of these areas, including:
– Customer journey mapping, to truly understand triggers of customer interest.
– Metrics-based marketing, to optimize the total brand experience.
– Customer lifetime value management, to guide the overall direction.
14 © 2010 Forrester Research, Inc. Reproduction Prohibited

15. Use the cycle to show links between marketing
strategy and specialization
Source: October 28, 2010, “It's Time To Bury The Marketing Funnel” Forrester report
15 © 2010 Forrester Research, Inc. Reproduction Prohibited

16. Agenda
The century-old funnel's influence is starting to fray.
The customer life cycle better represents today’s marketing
process.
The customer life cycle helps companies map marketing’s
core challenges.
The rise of the customer life cycle demands new
metrics.
16 © 2010 Forrester Research, Inc. Reproduction Prohibited

17. Adopt the CLC To Align Customer Facing Activities
The adoption of the Customer Life Cycle:.
 Forces marketers to shift to the customer's point of view. The CLC
helps marketers shift the attention to where and how customers interact
with brands as well as how marketing can deliver relevant experiences in
those environments.
 Matches customer activities with relevant marketing programs. By
matching the key customer activity phases of discover, explore, buy, and
engage within the life cycle with key marketing programs and platforms,
marketers can clearly select and refine what is most relevant from the
point of view of the customer.
 Addresses the bias toward acquisition activities. Historically marketers
have been more prone to focus on acquisition and awareness rather than
retention activities like loyalty or repeat purchase — even if the same
customer is re-acquired time and time again.
17 © 2010 Forrester Research, Inc. Reproduction Prohibited

18. The CLC – Matching Customer Activities With
Marketing Actions
18 © 2010 Forrester Research, Inc. Reproduction Prohibited

19. Define Metrics That Measure The Customer Life Cycle
 Define clear metrics to inform success at handoff points.
 Develop proxies for customer lifetime value at each stage to maximize
profit.
 Foster organization-wide goals based on the CLC.
19 © 2010 Forrester Research, Inc. Reproduction Prohibited

20. Target Handoff Points With Specific Metrics
20 © 2010 Forrester Research, Inc. Reproduction Prohibited

21. Engage The Enterprise With Customer-driven Metrics
 Define standard metrics for customer interactions.
 Align metrics with existing segments and personas.
 Be obsessed about customer centricity.
 Pave the way to multi-channel customer attribution.
 Get directly involved in marketing technology decisions.
21 © 2010 Forrester Research, Inc. Reproduction Prohibited

22. Questions?
Luca S. Paderni
+44 (0) 207 323 7602
lpaderni@forrester.com
www.forrester.com
© 2009 Forrester Research, Inc. Reproduction Prohibited

23. Tweet Up #AcxiomSeries
Follow a Lifecycle Roadmap to Attract,
Nurture and Grow Your Best Customers
Bryan Throckmorton
Consulting Practice Leader, Acxiom
Twitter: globalthrock
www.facebook.com www.linkedin.com www.twitter.com www.youtube.com
/acxiomcorp /companies/acxiom /acxiom /user/AcxiomCorporation

24. RETAIL
BANKING
“DAY
IN
THE
LIFE”
ACXIOM
MARKETING
PERFORMANCE
SERIES
March
2011

25. 25

26. 26

27. LIFECYCLE
“COMPRESSION”
A. B. C.
CONFIDENTIAL – FOR INTERNAL USE ONLY
27

28. Meet Ella Hughes
Checking out the new NationBANK branch in
town!
Gender: Female
Birthday: August 28, 1978
Relationship: Single
Current City: Cleveland, OH
Credit Score: Above 660
Children: None
Financial: Affluent
Education: MBA, Ohio State
Employment: Director of Logistics
Ella’s Customer Lifetime Value
$480k
$75k
$28k
CONFIDENTIAL – FOR INTERNAL USE ONLY
28

29. DAY IN THE LIFE: Wake-Up Call 6:00 AM
I switch on the TV for the morning talk show. A
NationBANK commercial comes on and invites me to a
branch opening event featuring a sweepstakes promotion.
My iTV lets me enter my name and email address to learn
more. BEHIND THE SCENES
Smart banking with great rewards
• NationBANK is looking for
prospects who fit their best-
New Branch
Opening Soon
customer model.
in your • We manage the prospect
Neighborhood
database and generate a list of
Stop by and
celebrate with us! prospects who are addressable
across multiple channels (DM,
Press to request details iTV, Mobile Web, Email, etc.)
• We help create a media plan that
invests proportionally according
to customer value.
• The TV ad is served to Ella
because she is in a cable zone
that contains a large number of
“Savvy Singles” households and
she is near a new branch.
CONFIDENTIAL – FOR INTERNAL USE ONLY
29

30. DAY IN THE LIFE: Surround Sound 6:15 AM
Within the minute my iPhone chirps from a new
NationBANK email that describes the benefits of the new
local branch and the Premium Rewards checking account.
I click through the link in the email to a NationBANK
webpage. BEHIND THE SCENES
• Adding an email address to a
prospect record enables further
matching capabilities.
• The email is automatically
triggered and contains offers that
are relevant to Ella’s prospect
segment
• We format the email to be mobile-
compatible across all devices
• Device fingerprinting begins
“house-holding” Ella’s devices
(set top box, iPhone and laptop)
for improved personalization
across channels and more
targeted advertising.
Use your Rewards to relax and recharge  Learn more
CONFIDENTIAL – FOR INTERNAL USE ONLY
30

31. DAY IN THE LIFE: Mobile Me 6:30 AM
The NationBANK website, nicely formatted for mobile
viewing, shows me premium products and services that
interest me. When I notice a callout box showing a profile
of the local branch manager, Gina Kelly, I click to visit her
Facebook page. BEHIND THE SCENES
800-234-5678
Email: • We personalize the customer
helpfulbanker@nationbank.com
Premium Rewards experience across channels and
Checking  Get
Details offer a seamless mobile-enabled
• Double reward point specials
• Mobile alerts web experience.
• Online bill pay
• Debit card • At NationBANK’s home page, the
• New app
- Know which purchases bring you the most points. checking account and local
- Works with any search engine!
- Watch your points increase as you shop.
branch information are
 Download the app
dynamically inserted based on
See what
people are Acxiom’s data showing Ella is
1140 Hardy Street
saying about us
on Facebook
single and owns her primary
Santa Mateo, CA 94404
Mon-Fri, residence.
8:00am-5:00pm
Sat, 8:00am-1:00pm
 Online
Banking
 Loans  Investing • We know that Ella is a frequent
Facebook user, so we
dynamically include a link to the
branch manager’s Facebook
page. Depending on prospect
segment, others may be shown a
Click-to-Call link.
CONFIDENTIAL – FOR INTERNAL USE ONLY
31

32. DAY IN THE LIFE: Five Stars 7:00 AM
Gina Kelly’s Facebook page shows reviews and ratings
from others in town who have done business with Gina
recently. I see that eight of my friends have “Liked” Gina
Kelly so far, and one of them wrote a positive review.
BEHIND THE SCENES
• Our Social CRM platform
provides an interface for branch
managers to easily maintain a
social media presence on
Facebook, Twitter and LinkedIn.
• Through analyzing Ella’s social
graph, we personalize the display
of reviews and ratings by geo-
location and social relationships.
CONFIDENTIAL – FOR INTERNAL USE ONLY
32

33. DAY IN THE LIFE: Client Conversing 7:30 AM
Another tab on Gina’s Facebook page shows a Live Chat
feature. Looks like Gina is available right now. I initiate a
chat session and spend several minutes asking Gina
some key questions about opening an account with
NationBANK. BEHIND THE SCENES
• Our live chat integrates with
NationBANK’s internal instant
messenger software.
• In real-time we perform semantic
text analysis on the live chat
session to append preference
data to Ella’s customer record.
• When Gina is not available, chat
inquires are redirected to a
national customer support
representative.
CONFIDENTIAL – FOR INTERNAL USE ONLY
33

34. DAY IN THE LIFE: Easy Access 8:00 AM
Gina suggests that I come into the branch to visit her this
afternoon. On the Facebook page, I click on the Schedule
Appointment tab and select an available 30-minute block
of time where Gina is free.
BEHIND THE SCENES
• Upon submission, we deploy a
confirmation email to Ella that
contains a personalized message
from Gina Kelly, and we leverage
the real estate in the operational
email to display targeted offers
for Next Best Offer.
CONFIDENTIAL – FOR INTERNAL USE ONLY
34

35. DAY IN THE LIFE: Immediate Gratification 12:30 PM
I visit the NationBANK branch to open a checking
account. While waiting, I notice a sign hanging from the
ceiling about the new NationBANK app to collect rewards.
With my iPhone I snap the QR code to download the app
instantly. BEHIND THE SCENES
• QR code signage in the branch
directly links to the app store
download page.
• Each QR code in the branch is
unique to enable attribution and
analytics for the best performing
location.
• We feed Ella’s online and offline
interactions into our Insights Lab,
where the customer and prospect
models continuously optimize
across channels.
• An automatically triggered email
reminds Ella to also download the
browser version of the rewards
app, available as a plugin for any
browser.
CONFIDENTIAL – FOR INTERNAL USE ONLY
35

36. DAY IN THE LIFE: My Trusted Advisor 1:00 PM
I walk into Gina Kelly’s office. Shortly into the
conversation, Gina pulls out her iPad and guides me
through using an app that discovers my banking needs
and preferences. At the end, I get an intuitive bundle of
NationBANK products and services. BEHIND THE SCENES
• Our recommendation engine is
integrated into an iPad app for
the discovery process.
• The app determines whether Ella
is in market or qualifies for other
products, and calculates her
Lifetime Value score on the fly.
• Real-time modeling and analytics
are used to determine the next
best offer. We produce an
attractive bundle offer for Ella.
• After closing the sale, Gina uses
his branch manager iPhone
application to trigger a
personalized on-demand direct
mail piece.
CONFIDENTIAL – FOR INTERNAL USE ONLY
36

37. DAY IN THE LIFE: Desktop Presence 8:00 PM
At home, I download the NationBANK Firefox plugin. As I
search the web, a tab appears, showing my current point
balance at NationBANK. I click to expand the tab and see
relevant offers as well as a friend’s tweet about discount
airline tickets that qualify for reward points. BEHIND THE SCENES
• Ella’s point balance instantly
updates as she makes
purchases.
• The persistence of the tab is set
to appear on all major search
engines as well as the websites
of partner retailers.
• The offers in the expanded tab
are inserted according to Ella’s
ESI (economic stability index)
score and change based on her
click behavior as she moves
across the web.
EllaBella
Found
the
best
rewards
program.
NationBANK
customizes
everything
for
me
and
I m
earning
points
like
crazy!
http://ow.ly/2oHAIS
CONFIDENTIAL – FOR INTERNAL USE ONLY
37

38. DAY IN THE LIFE: Personal Shopper 9:00 PM
My Google search results are marked with the
NationBANK logo showing which products provide
Rewards points. On Yahoo News, I see a targeted ad for a
Premier Credit Card and decide to apply. My approval
comes back in 10 seconds. BEHIND THE SCENES
• The annotations appear on the
results pages for any search
engine Ella uses.
• Since the app references
NationBANK’s database directly,
product annotations are always
current.
• NationBANK and Acxiom are
collaborative targeting partners
with Yahoo!, so the ad is
delivered to Ella when she logs
Get 500 Rewards
into Yahoo media.
Points when you
apply for a Premier
• Real time credit bureau scoring
Credit Card* makes the credit card approval
 Apply now
process fast and efficient.
CONFIDENTIAL – FOR INTERNAL USE ONLY
38

39. DAY IN THE LIFE: Social Influencer 10:00 PM
Later as I check the Facebook news feed on my laptop, I
see customer reviews from satisfied NationBANK
customers. These are short video clips that are humorous
and insightful, so I share two of the videos with my local
friends who may want to check out the NationBANK BEHIND THE SCENES
branch as well.
• We use Ella’s email address as a
conduit to identify her level of
social activity.
• From our Social Influencer data,
we know that Ella is an ACTIVE
Facebook user with a significant
network of friends.
• To leverage Ella’s influence, our
decision engine triggers a
business rule to include a
sweepstakes offer in a mobile
alert, where she is asked to
participate in a new streamlined
mortgage process that the bank
is piloting with select individuals.
CONFIDENTIAL – FOR INTERNAL USE ONLY
39

40. MOMENTS OF TRUTH
Customer Value
Current state
Desired state
Strategic
Impact
Time
Moments of Truth
Channels
Strictly Confidential 40 40

41. MOMENTS OF TRUTH
Customer Value
Current state
Events
Desired state
• RelocaMon
Events
• Branch
Opening
• Move
• New
Member
• Renewal
Strategic
• New
Category
Impact
• Job
Change
• Marriage
• Family
• Seasonal
• Holidays
• Death
Time
Moments of Truth
Channels
Strictly Confidential 41 41

42. MOMENTS OF TRUTH
Customer Value
Current state
Desired state
Events
Signals
Strategic
Impact
Time
Signals
• Referring
search/URL
• Website
clickstream
• Tweet/blogging
Moments of Truth
• Display
ad
click-­‐through
Channels
• TransacMons
• Preference
update
• Call
center
• InacMvity
• Site
search
• Email
clickstream
• RaMngs/reviews
• Login
frequency/recency
• Social
senMment
Strictly Confidential 42 42

43. MOMENTS OF TRUTH
Customer Value
Current state
Desired state
Events
Signals
Strategic
Impact
Time
Insights
• RelaMonship
profile
Moments of Truth
• InteracMon
history
• Brand
advocacy
Channels
• Product
propensiMes
• Media
preferences
• Channel
preferences
• Geodemographics
• Interests
&
aatudes
• Monetary
indicators
• Social
indicators
Strictly Confidential 43 43

44. MOMENTS OF TRUTH
Customer Value
Current state
Desired state
Events
Signals
Segments
Strategic
Impact
Time
Moments of Truth
Channels
Conversa2ons
• Proper
audience
selecMon
and
recogniMon
across
media
• Fusing
insights
for
unique
treatments
(creaMve/copy/offer)
• Personalized
&
coordinated
engagement
(omni
channel)
• AutomaMc
recalibraMon
based
on
actual
consumer
behavior
(conMnuous
earning
system)
Strictly Confidential 44 44

45. MOMENTS OF TRUTH
Customer Value
Current state
Desired state
Events
Signals
Segments
Strategic
Impact
Value
Add
•
CPA
Time
•
AOV
•
LTV
•
Member
tenure
•
Frequency
of
club
shop
•
Category
shop
•
Category
penetraMon
•
#
of
clubs
visited
Moments of Truth
•
eCommerce
Sales
•
Net
Promoter
Score
Channels
•
Referrals
•
Regional
Metrics
•
AhriMon
Strictly Confidential 45 45

46. HOW DO WE GET THERE?
IT’S A JOURNEY
Don’t Stop Believing…
46

47. CAPABILITY MODEL FOR
A CONNECTED WORLD
Key
requirements.
SeparaMng
contenders
from
pretenders
Audience-­‐based
targe5ng
(your
file)
Integrated
insight
across
online,
offline
&
Primary
research
connected
to
ac5onable
census
aPtudes
Private
exchange
/
safe
haven
Investment
allocated
by
differen5ated
value
of
customers
(DVOC).
Effec5ve
intent
harves5ng
Descrip5ve
&
predic5ve
capacity
around
9
Ac5onable
brand
adver5sing
key
insights
Act,
think
&
look-­‐a-­‐like
capable
Enterprise
CID
on
all
channels
for
9
key
insights.
Product
&
customer
life
cycle
triggers
drive
marke5ng.
Marke5ng
measured
by
CLTV
impact
.
Trigger-­‐driven
marke5ng
is
“PIL”
–
AKribu5on
for
Individual
impression
to
personalized,
integrated
&
outcomes
longitudinal
Decision
engines
(periodic
&
real-­‐5me)
Loyalty
program
driven
by
life
cycle
Consumer
behavior
&
preference
driven
media/
Mul5-­‐channel
preference
center
channel
op5miza5on
47

48. Tweet Up #AcxiomSeries
Q & A Panel
Luca Paderni Tim Suther
Vice President and Principal Analyst CMO, Acxiom
Forrester Research Twitter: @timsuther
Tom Brown Bryan Throckmorton
CEO of Second Curve Capital Consulting Practice Leader, Acxiom
Founder, Bankstocks.com Twitter: @globalthrock
www.acxiom.com/ www.acxiom.com/ www.acxiom.com/ www.acxiom.com/
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49. Tweet Up #AcxiomSeries
Thank You!
www.acxiom.com/ www.acxiom.com/ www.acxiom.com/ www.acxiom.com/
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