cmo council & vince ferraro trends, directions and insights
DESCRIPTION
The leader of global and consumer marketing for both Eastman Kodak and HP during great technological shifts, Vince Ferraro is truly a marketing pioneer. He's also a digital and social media innovator. In this special session presented in conjunction with the CMO Council, he'll share his insights on creating game-changing results as marketing evolves from a traditional to hyper-digital world.TRANSCRIPT
Welcome to Response Expo 2013
Presented by
April 2-4, 2013 Hilton San Diego Bayfront
Educational Session Sponsor
CMO Council & Vince FerraroTrends, Directions and InsightsTrends, Directions and Insights
Vince FerraroFormer VP of Corporate and Consumer Marketing,
Eastman Kodak CompanyCMO Council Board Advisor
April 2-4, 2013 Hilton San Diego Bayfront
Why Am I Here?
• Share my marketing thoughts, insights, and experiences
• As a marketing practitioner that procures all elements of the marketing mix
April 2-4, 2013 Hilton San Diego Bayfront
elements of the marketing mix• As a direct response customer, providing a
different perspective on the role of creating and managing a successful marketing mix
What Is Direct Marketing?
Direct marketing is a an interactive system of marketing designed to effect
a measurable response and/or
April 2-4, 2013 Hilton San Diego Bayfront
a measurable response and/or transaction at any location using one or
more communication or advertising media.
And Herein Lies the Challenge
Almost every thing we are doing in customer interfaced marketing and communications can fit that definition.
April 2-4, 2013 Hilton San Diego Bayfront
communications can fit that definition.
… But more on that later
What I Will Cover
• Research from the CMO Council that will highlight C-level executives’ sentiments on the trends in the marketing mix
• The role of direct response in a integrated
April 2-4, 2013 Hilton San Diego Bayfront
• The role of direct response in a integrated marketing campaign
• Thoughts on how the direct response community can get a greater share of our marketing budgets
We Are After the Same Thing!
April 2-4, 2013 Hilton San Diego Bayfront
Source: http://www.4webmarketing.biz/sitemap.htm
New customers, conversion, sales
And Response Marketing is Evolving
April 2-4, 2013 Hilton San Diego Bayfront
How Many Marketers View Direct Response
April 2-4, 2013 Hilton San Diego Bayfront
The CMO Council
6,500+Senior Corporate Marketing
Leaders
$350 billion$350 billionin annual marketing spend
controlled by CMO Council
Members
SevenInfluential regional chapters
led by Advisory Boards of
brand leaders
RESEARCH
April 2-4, 2013 Hilton San Diego Bayfront
RESEARCHState of Marketing 2012
CMO Council
THE MULTI-CHANNEL CUSTOMERCUSTOMER
144.8 billion emails sent worldwide…per day
8.6 trillion SMS messages sent
228 billion MMS
554 million pieces of USPS mail processed per day
228 billion MMS messages sent
5.5 trillion App messages sent
Channel Reality: Email
• Email click thru drops to 4.4% in Q2 of 2012. Open rates drop to 25.6%
• Email volume is dropping – down nearly 30% year over year in 2012nearly 30% year over year in 2012
• 40% of BtoB marketers still believe leads from emails still high quality
(Source: Epsilon)
Channel Reality: Social
What do they like?• 67% of consumers want to be
eligible for exclusive offers• 60% want the opportunity to • 60% want the opportunity to
interact with other customers• 65% want to gain access to
games and contests
(Source: CMO Council “Variance in Social Brand Experience)
Channel Reality: Digital & Mobile
• 90% of online searches result in an offline purchase
• 61% of mobile searches result in a phone call phone call
• 70% of mobile searchers will act within an hour
• 30% of PC searchers will act within that same time period.
Customer Reality: Over It
What’s the reaction?• 41% would consider halting all
business and no longer purchase from a company that continues to send impersonal, irrelevant clutter
Customer Reality: Over It
Why did they disconnect or opt-out?• 46% because communications
were not relevant to themwere not relevant to them• 73% were irked over receiving
a promotion on a product they already bought
• 39% ignore messages because they are flooded (in their mailbox and inbox)
THE MULTI-CHANNEL MARKETERMARKETER
by 2017 the CMO will spend more on IT than on IT than the CIO
- Gartner, January 2012
36% of marketers admit digital strategy is made of is made of random point solutions
- CMO CouncilIntegrate to Accelerate Digital Marketing
Performance
Where Have You Seen Digital Success?
Where Will You Invest In The Next 12 Months?
traditiona l digital
How Has Social Impacted Marketing?
① Improved customer listening & engagement
② Opened new avenues to gather insightsinsights
③ Increased the complexity of planning
Blatantly web-jacked from Brian Solis www.briansolis.com
Blatantly web-jacked from Luma Partners: http://www.lumapartners.com/lumascapes/social-lumascape/
.com
What Concerns You About Social Investments?
① Requires resources we don’t have
② Can’t quantify ROI or impact on brandon brand
③ Requires new competencies we don’t have
④ I can’t control what’s said about my brand online
What Concerns You About Social Investments?
① Requires resources we don’t have
② I can’t quantify ROI or impact on brandbrand
③ Requires new competencies we don’t have
④ I can’t control what’s said about my brand online
2013 MARKETING SPEND INTENTIONSINTENTIONS
Marketing’s Mandate
① Lower costs & improve go-to-market efficiencies
② Grow & retain market share③ Drive top-line growth③ Drive top-line growth④ Maintain high quality sales
pipeline⑤ Improve customer insights
Budget as % of Revenue
Operational Allocations
Program Spend
Value of Vendors & Partners
Why So Down?
IN SEARCH OFTHE KINGTHE KING
where are the digital
hero's?hero's?9% enjoy highly evolved digital programs
4% feel they are leading their category
7% are extremely advanced in leading with data
What Are the Leaders Doing?
• They have high levels of approval and strategic support at the LOB & CEO level
• Formed task forces with IT and • Formed task forces with IT and partner with CIO
• Turning to customers – not internal teams – to identify valued technologies and channels
What Are the Leaders Doing?
• In the next year they will add:Marketing resource managementCampaign & workflow management
• 72% focused on the delivery of • 72% focused on the delivery of timely, relevant and targeted communications
• Measure success through:Conversion ratesUp-sell & cross-sell opportunitiesResponse and engagement rates
Change Management in C-Suite
• Big Data• Customer Experiences• Customer Engagement• Customer Engagement
…
April 2-4, 2013 Hilton San Diego Bayfront
To do all of this heavy lifting, marketing needs be viewed as a center of excellence and take on dual roles as functional and business leader
Where Marketing Needs Help
April 2-4, 2013 Hilton San Diego Bayfront
Source: The Economist Intelligence Unit Limited 2012
How can you help us?
It is All About Integration
April 2-4, 2013 Hilton San Diego Bayfront
Source:www.jamalaplanit.com
All of Marketing Is Content
April 2-4, 2013 Hilton San Diego Bayfront
Integrated Marketing Requires Content to Be
ActionableContent in action
April 2-4, 2013 Hilton San Diego Bayfront
http://www.interleado.com/images/call%20to%20action.jpg
And Actionable Marketing Requires a Call to Action
April 2-4, 2013 Hilton San Diego Bayfront
Move Towards Integration and Personalization
April 2-4, 2013 Hilton San Diego Bayfront
Conclusions
April 2-4, 2013 Hilton San Diego Bayfront
Conclusions
WHERE YOU CANGO WITH YOUR CUSTOMERSGO WITH YOUR CUSTOMERS
beDISRUPTIVE!
Customer Evolution = Customer Revolution
Social, Social, Social
Have LOTS of BFF ’s
Encourage Disruption..Then Make A Commotion!
Finding the Rosetta Stone
Social Customer Engagement
Help Us Solve This Problem
April 2-4, 2013 Hilton San Diego Bayfront
Direct ResponseBranding
Lead GenerationImage and Reputation
SweetSpot
Partnering for the Future
• Embrace the collision of direct response, branding and social media
• Realize that just about everything we do in marketing has some call to action
• Help us reach and engage our customers in new and
April 2-4, 2013 Hilton San Diego Bayfront
• Help us reach and engage our customers in new and innovative ways
• Participate more fully in marketing integration programs and tactics
• Position direct response as a strategy not a tactic• Partner with us and other agencies that compliment your
strengths
THANKS!
Vince FerraroFormer Vice President of Corporate and Consumer Marketing Eastman Kodak Company
@vincelferraro
www.cmocouncil.org
www.VincentFerraro.com
Questions
April 2-4, 2013 Hilton San Diego Bayfront