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The Paradox of theEmpowered Consumer…      Imperatives & Opportunities                 Tim Suther       Chief Marketing & ...
The Paradox of the          Empowered ConsumerEmpowered consumers have unlimited choice & information•   New opportunities...
The Paradox of Big DataThe world’s most valuable firms use “big data” to drive value•   But, most value has come at the ex...
Imperative:    Your Multidimensional Insight•   No one signal consistently describes or predicts consumer behavior•   Acti...
Imperative:                         Inside Out•   Invest proportional to customer value•   Then, find those who think, loo...
Imperative:                           Outside In•   Digital data is reaching a fraction of its potential•   CRM & traditio...
Imperative:           Intersection of Insights•   Brand customer insight + media contextual insight = maximum value•   Ide...
Imperative:                          Trust•   Sensitive data is the most valuable•   Provide clear value exchange, transpa...
3 Opportunities•   Improve marketing ROI:            + 15–30%•   Improve customer profitability:   + 10–15%•   Improve pri...
Introducing Charlie SwiftVice President of Marketing Analysis & Operations, Hearst Magazines                              ...
We Used to Live in a               BOUND World•   Our content existed only as a paper product•   Our brands’ revenues were...
Our Future Is UNBOUND                        12
Life in an UNBOUND World•   Our content is becoming liquid across platforms•   Our brands are crossing new business models...
ARGUS     The Platform Built to Enable Our Identification and Decisioning Processes• ARGUS: The Titan of 1,000 eyes• ARGUS...
4 Initial Platform Goals1. Comprehensive 360-degree view of customer activity, performance   and relationship status at th...
Example: Online InteractionEngage Customers with Smarter Offers    Pay Bill                         Renew Subscription    ...
Business ImpactTargeting Drove Fantastic Results         Response Rate Review      Database      Rolled Out               ...
Customer Targeting TodayFocused on Selling Print Subscriptions     Data                                              Marke...
Customer Data and          Interaction Is Exploding  Well Beyond the Traditional Print World• Digital editions are taking ...
Customer Targeting Tomorrow           ARGUS 2.0 – Focused on Selling                Value Everywhere Data                 ...
Our Future Truly Is UNBOUND  Thanks to Partners Like Acxiom                                   21
Thank You. Questions?  @timsuther                   Discover more at:                             www.acxiom.com/dma12    ...
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The Paradox of the Empowered Consumer

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The Paradox of the Empowered Consumer

  1. 1. The Paradox of theEmpowered Consumer… Imperatives & Opportunities Tim Suther Chief Marketing & Strategy Officer, Acxiom Charlie SwiftVice President of Marketing Analysis & Operations, Hearst Magazines
  2. 2. The Paradox of the Empowered ConsumerEmpowered consumers have unlimited choice & information• New opportunities for engagement• But, disruptive to loyalty & margins 2
  3. 3. The Paradox of Big DataThe world’s most valuable firms use “big data” to drive value• But, most value has come at the expense of brands• Brands need to develop & control customer insight …or be prepared to be the highest bidder for it 3
  4. 4. Imperative: Your Multidimensional Insight• No one signal consistently describes or predicts consumer behavior• Activate & evaluate these signals at scale, with speed 4
  5. 5. Imperative: Inside Out• Invest proportional to customer value• Then, find those who think, look, or act like your best customers 5
  6. 6. Imperative: Outside In• Digital data is reaching a fraction of its potential• CRM & traditional media need digital insights 6
  7. 7. Imperative: Intersection of Insights• Brand customer insight + media contextual insight = maximum value• Identify & protect your data rights 7
  8. 8. Imperative: Trust• Sensitive data is the most valuable• Provide clear value exchange, transparency & choice …or risk the wrath of consumers, regulators, litigators & activists 8
  9. 9. 3 Opportunities• Improve marketing ROI: + 15–30%• Improve customer profitability: + 10–15%• Improve pricing power: + 5–7% 9
  10. 10. Introducing Charlie SwiftVice President of Marketing Analysis & Operations, Hearst Magazines Unbound Data Management at Hearst Magazines 10
  11. 11. We Used to Live in a BOUND World• Our content existed only as a paper product• Our brands’ revenues were driven by newsstand and advertisers• Our advertisers were heavily vested in print placement• Our readers were engaged with us once a month with each issueBut that world no longer exists and we are now in a world ofconstant change 11
  12. 12. Our Future Is UNBOUND 12
  13. 13. Life in an UNBOUND World• Our content is becoming liquid across platforms• Our brands are crossing new business models• Our advertisers have greater choice of placement• Our readers are engaging in more places and ways… …and are increasingly harder to recognize and serve accordinglyOur Challenge:• To identify and treat customers consistently… …as they de-identify and act inconsistently… in order to maintain a profitable relationship with our customers 13
  14. 14. ARGUS The Platform Built to Enable Our Identification and Decisioning Processes• ARGUS: The Titan of 1,000 eyes• ARGUS: The platform we launched in 2008, recognizing the need to create and manage a unified view of our customers – Customer- not title-centric – Relational marketing not operational batch approach – Behavior- not channel-focused – First consolidation of online and offline data • ARGUS: The foundation of all our customer marketing operations 14
  15. 15. 4 Initial Platform Goals1. Comprehensive 360-degree view of customer activity, performance and relationship status at the magazine and Hearst level2. Improve profitability of current direct mail programs3. Protect revenue streams as customers go online to subscribe4. Drive revenue through ad targeting via online and data variable printing 15
  16. 16. Example: Online InteractionEngage Customers with Smarter Offers Pay Bill Renew Subscription Current Customer Goes Online Cross SellShow Digital Ad Targeted Magazines New Intro Subscription Offer 16
  17. 17. Business ImpactTargeting Drove Fantastic Results Response Rate Review Database Rolled Out 25%+ Gain 17
  18. 18. Customer Targeting TodayFocused on Selling Print Subscriptions Data Marketing Sources Channels Web Data Targeting Models & Web Segmentation eMail Data Sub Data ARGUS eMail Demo Print Data 160MM 100MM 60MM 100MM 1B Individuals Monthly Offer Scores 18
  19. 19. Customer Data and Interaction Is Exploding Well Beyond the Traditional Print World• Digital editions are taking off – Apple – Zinio – Barnes & Noble - Amazon – Google …and more to come• Production lines are growing – Hachette Acquisition, Marie Claire @ Work, Cosmo Latina (more print) – Jumpstart, Real Beauty, Delish (more digital) – The Bazaar (more commerce)• Targeting is increasing by customer – Variable magazine printing – Variable pricing & billing – Customize Web & email display• Keeping on top of, linking and leveraging our data is critical to our ability to win in the market and transform successfully 19
  20. 20. Customer Targeting Tomorrow ARGUS 2.0 – Focused on Selling Value Everywhere Data MarketingSources Prospect DBs Channels Partner Web Data Onboarded Targeting Models & Data Web Data SegmentationCommerce eMail Data Private eMail Data ARGUS Exchanges Network App Data Sub Data 2.0 Print Stores Dig App Demo Digital Data Data Inserts TV 200MM 5+B Social ? Individuals Monthly + Prospects Offer Scores Mobile 20
  21. 21. Our Future Truly Is UNBOUND Thanks to Partners Like Acxiom 21
  22. 22. Thank You. Questions? @timsuther Discover more at: www.acxiom.com/dma12 tim.suther@acxiom.com cswift@hearst.com

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