Patrick McLeanPatrick McLeanPatrick McLeanPatrick McLean

Verizon Interactive:A Case Study for

Marketing Transformation

Who is Verizon?

2

Who is Verizon Telecom?

3

Who people sometimes think is Verizon Telecom?

4

Business Transformation

What we are doing about it?

Business Transformationaligned with

Social Transformation

Consumers are living digitally

�Ecommerce is growing > 20% per year

�> 50% of online adults now participate in social media

�Consumers want content aggregated for them, not concerned with sourcethem, not concerned with source

�Consumers expect seamless integration across platforms and devices

�Mobile rapidly becoming a main channel for video and social content

�Digital ad spending growing at > 25% globally

We must transform to a Digital Brand

Cross-Channel Integration

Verizon Digital Brand

Change ourCulture &Incentives

Change ourCulture &Incentives

Strategic Strategic

ImperativesImperatives::

LearnE-Commerce/

Sales

My Verizon

& Small Business

Center

Targeting and Personalization

Customer Generated Content and Social Media

Market With a Digital Focus – Pricing, CTA, Spend

Drive Digital

Conversations

Drive Digital

Conversations

Evolve

Online

Platforms

Evolve

Online

Platforms

Digital must become a part of Verizon’s DNA

Shifting Marketing & Sales to Online

100%

Channel Mix

0%

50%

2009 2010 2011 2012

Online Traditional

Challenges

• Accelerate consumer behavioral changes

• Increase online channel productivity

• Maintain low channel cost

“When someone acknowledges us as individuals and personalizes our experience based on our unique characteristics, we feel understood and valued. Our feelings of feel understood and valued. Our feelings of good will increase. Our confidence grows. Our tolerance broadens.

“Personalization casts a powerful spell!”

Waiting for Your Cat to Bark? Bryan & Jeffrey Eisenberg

A New Customer Experience – from“One Size Fits All” to Personalized

Atomic Targeting

FiOS Internet & TV

FiOS Internet & TV

FWK/BoomersFWK/Boomers

MoversMovers

LearnLearn

Get It NowGet It Now

SportsSports

MoviesMovies

FamilyFamily

TechnologyTechnology

MethodicalMethodical

CollaboratorCollaborator

Opinion Seeker

Opinion Seeker

Wheeler Dealer

Wheeler Dealer

ShopShop

BuyBuySwitchersSwitchers

Active Tech Active Tech Young Adult Young Adult

Consumer

Intent

“What I

Default -Anonymous

Default -Anonymous

New YorkNew York

1st Visit1st Visit

AnonymousAnonymous

New Acquisition

New Acquisition

& TV& TV Active Tech Shoppers

Active Tech Shoppers

Young Adult Singles and

Couples

Young Adult Singles and

CouplesFiOS InternetFiOS Internet

HSIHSI

PhonePhone

ExistingExisting

HSI UpsellrHSI Upsellr

FiOS Upgrade & Renewal

FiOS Upgrade & Renewal

HSI Upgrade & Renewal

HSI Upgrade & Renewal

VASIPVASIP

ReturnReturn

PhiladelphiaPhiladelphia

FloridaFlorida

NationalNational

……

PassionsGeography Status

Customer

Type

Product

SetLife Stage

Shopping

Intent

Shopping

Stage

Shopping

Persona

“What I

want”

Shopping Personas

The

Collaborator

The Get It Done

Decision Maker

The Wheeler

/Dealer

The Methodical

Shopper

The Opinion

Seeker

It’s difficult enough to

meet everyone’s

needs in the house –

why does the process

have to be so

complex?

Too much detail

slows me down. I just

want to check this off

my to-do list as

quickly as possible.

I love the feeling of

gaming the system

and getting a great

deal.

The more I know, the

less likely I am to be

ripped off.

I’d hate to make the

wrong choice so I

check with people

who might know

more than I do.

Operating Model

Audience DataDynamic SiteInfrastructure

Adaptive Learning –Audience Focused Optimization

Personal WebConsistent & cumulative

experiences across moments of truth

Clear Business Objectives Robust CMS and Audience Analytics

•Transparency

•If you tell me what the info will be used for, I’ll tell you something about myself, as long

as I can connect the dots

•Privacy

The Issues

•Privacy

•I’m okay with having data about myself used to enhance a service, but less cool with

profiling me for targeted advertising

•Validity

•On most days, I’ll trust the recommendations of my friends over the company’s. Why

should I trust what you’re telling me?