Quarterly Digital Intelligence Briefing. The Multichannel Reality. in association with

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1 Quarterly Digital Intelligence Briefing The Multichannel Reality in association with

2 Quarterly Digital Intelligence Briefing The Multichannel Reality in association with Published September 2015 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2015 Econsultancy London Wells Point 79 Wells Street London W1T 3QN United Kingdom Telephone: Econsultancy New York 350 7th Avenue, Suite 307 New York, NY United States Telephone: Econsultancy Singapore 20 Collyer Quay #23-01 Singapore Telephone: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

3 Contents 1 Foreword by Adobe Is integration at a standstill? Tech is the great enabler or the biggest barrier Navigating the customer journey Mapping mobile touchpoints and the customer journey: vital from start to finish (and still underestimated) The tangible impact of cross-channel campaign management How campaign management tools stack up Appendix: respondent profiles...38 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 3

4 1 Foreword by Adobe It s never been a better time to be a marketer. The proliferation of devices and channels provides us with more opportunities to reach and engage with our customers than ever before. At the same time, customer expectations continue to rise they want personalised and relevant experiences, delivered to them in real time, wherever and whenever they want. This represents a significant challenge for marketers and it s clear that an integrated approach is needed to meet and exceed customer expectations. Despite understanding what we need to do, too few of us are actually doing it. And it s time we get to work. That s one of the main findings from The Multichannel Reality report from Econsultancy and Adobe. Based on a survey of nearly 2,000 digital marketers and ecommerce professionals, it s surprising to learn that there hasn t been a notable increase in the number of companies taking an integrated marketing approach across channels. And even those of us who are tackling multichannel marketing aren t making substantial progress. Some say it s because we don t have the right tools for the job. In fact, half of the marketers surveyed said their companies don t use integrated marketing technology. They still have separate, non-connected technologies managing data for different channels. These non-integrated tech platforms are a top-three obstacle to integrated marketing, along with disparate data sources and organisational structure. There s good news, though. The study also shows that marketers who use cross-channel campaign management tools are significantly more likely to hit financial goals. These are the kinds of facts that may help cautious CFOs recognise a wise investment. Although only 17% of respondents indicate they are fully capable of analysing the complete customer experience across all touchpoints, most plan to pursue this capability or are working on it already. Technology is not the entire answer to the multichannel marketing conundrum, however. The insights gained from the study also show that a 360-degree view of the customer continues to be something of a holy grail for marketers. While there has been a small percentage increase, over twothirds of responding companies still do not have this single customer view. Adobe helps businesses achieve their integrated marketing goals by facilitating a customer-centric, multichannel approach through the Adobe Marketing Cloud. Adobe Campaign is a key piece of that integrated approach. It provides the necessary data and analytics to enable more clarity around overall and channel-specific business performance, as well as the all-important single view of the customer. 4 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

5 Pulling in data from purchase histories, browsing behaviour and social interactions, among other sources, our technology can help you design and manage your campaigns in an agile manner to ensure your customers are getting the right message at the right time, whether via a text, an , a display or video ad. As you take a look at the research in this report, I hope it helps you assess your current multichannel marketing efforts so that your company can create even more meaningful experiences for your customers. John Travis VP, EMEA Marketing Adobe Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 5

6 Is integration at a 2standstill? Now more than ever, businesses need to catch up with the reality of how consumers are engaging across channels, and increasingly in the expectation that the experience will be seamless. This Quarterly Digital Intelligence Briefing is based on a survey of 1,945 digital marketers and ecommerce professionals carried out in June and July 2015, and follows up on a similar piece of research from At first glance, Figure 1 suggests that there s been little movement in multichannel marketing during the last two years. Comparing both studies, the responses are almost statistically identical. Yet for digital marketers, that time has been devoted to rapidly adding new capabilities to meet the rising demands of connected, mobile consumers. The reality, then, is more dynamic than these static figures suggest. After all, multichannel marketing has to respond to the changes in how consumers use, need and want brand information that are happening in every sector at an unprecedented rate. Figure 1: Which of the following best describes how you carry out marketing activities? % 29% 14% 14% 11% We take an integrated approach to all our campaigns across all channels Most of our campaigns are integrated across most channels Some of our campaigns are integrated across some channels 6% None of our marketing campaigns are integrated Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents 2015: 851 Respondents 2013: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

7 Businesses need to catch up with the reality of how consumers are engaging across channels regional comparison Figure 2: Which of the following best describes how you carry out marketing activities? % 5% 9% 39% 47% 48% 27% 29% 29% 29% 12% 14% Europe North America APAC None of our marketing campaigns are integrated Some of our campaigns are integrated across some channels Most of our campaigns are integrated across most channels We take an integrated approach to all our campaigns across all channels Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 851 As customer habits evolve, so does multichannel marketing. For example, in the two years since this study was last conducted, mobile devices have come to account for more than half of all time spent with digital media. 1 This variation constantly moves the bar for marketers, pushing them to expand their definition of multichannel and challenging them to match it. Every set of statistics in this section tells the same story. The world of digital marketing is broken into three cohesive groups: those keeping pace with their customers, those pushing to catch up and those being left behind. Sooner or later, every marketing organisation of significant size will have to follow the lead of that first group of companies who take an integrated approach to all marketing. They recognise that their customers live in a multichannel world and have invested accordingly. When we look at them more closely, we find that their success depends on a mix of advanced strategy, process and technology. Multichannel marketing is much more than simply launching campaigns that share content across more than one channel. Within the discipline are multiple capabilities, from understanding how people choose channels and travel between them, to allocating resources based on their impact. The capabilities outlined in Figure 3 map to some of the most vital demands of multichannel marketing. 1 comscore Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 7

8 Achieving a single customer view is among the most difficult challenges faced by modern marketers Achieving a single customer view (SCV) is the first step for many, but is also among the most difficult challenges faced by modern marketers. Bringing together information from a variety of databases and marketing technologies is complex for any organisation. This is especially true for those with large consumer audiences that require an especially wide array of marketing channels. Often those same companies have added challenges relating to international operations and regular acquisitions that introduce new data sources. Customer journey analysis benefits greatly from access to a single customer view, but can be conducted independently. Essentially it s the ability to understand how the customer moves from awareness to purchase and ultimately to retention in the context of their interaction across every touchpoint in earned, owned and bought media. The challenge is significant, and keenly important to the most sophisticated of multichannel marketers; organisations that are taking an integrated approach to all their campaigns rank the complexity of the customer journey as their number one challenge to multichannel, compared to a fifth-place ranking from the overall sample. In other words this group has the valuable information and insight to recognise Figure 3: In the context of integrated marketing, how would you describe your organisation s capabilities in the following areas? % 12% 13% 11% 14% 24% 39% 26% 25% 27% 35% 34% 29% 41% 19% 42% 17% 36% 15% 34% 34% 12% Single customer view Customer journey analysis Data-driven marketing decisions in real time No plans Planning to have capability Working on capability Current capability Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents 2015: 848 Respondents 2013: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

9 how much they have to learn about their customers to be able to effectively market to them across channels. The most uncommon capability is realtime marketing (Figure 3), but that s going to change dramatically in the next couple of years, especially for consumer-focused companies. But delivering intelligent, relevant marketing and service content to a customer based on time, location, behaviour means having both the integration necessary for the single customer view and a deep understanding of the customer journey. Algorithms may decide on the content, but they are powered by human insights, rules and inspiration. The drive to improve multichannel marketing reflects the need perceived by leadership, existing capability and the ability to align new resources with the task. Responses from across the globe suggest that the priority is widely acknowledged, but North American companies appear to have an edge in terms of their current technologies and planning. They are more than twice as likely as their peers in Europe and Asia Pacific to be taking an integrated approach to all marketing. Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 9

10 Tech is the great enabler or the 3biggest barrier Disparate datasets within companies across teams, channels and technologies have been a key challenge for marketers to overcome during the past few years. Technology giants have addressed the challenge by providing all-in-one marketing clouds for companies to plug into, but for those that can afford these solutions, there remains the mammoth task of migrating onto the new platform and collating and cleansing old and new data. Particularly challenging has been combining offline data with reams of online data, with many (if not most) companies having still not achieved the much sought-after single customer view. The debate still rages as to whether a single cloud-based technology solution is more advantageous to companies than numerous specialised platforms, though the former approach certainly brings benefits with its ease of data management. Figure 4 shows that while industry commentators might discuss these benefits, the transition is not being made by companies. Since 2013, the proportion of respondents with separate, non-connected technologies managing data for different channels has decreased only marginally, from 52% to 5. Figure 4: Which of the following statements best describes your marketing technology in terms of its ability to manage data across multiple channels? % % 13% 12% 8% 8% We have separate, non-connected technologies managing data for different channels We have separate, but connected technologies for different channels We have a single platform that can manage data from some channels but not others We have a single platform that manages data across multiple channels Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents 2015: 848 Respondents 2013: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

11 cross-tabulation Figure 5: Proportion of companies taking an integrated approach to all campaigns across all channels (by approach to marketing technology) 35% 31% 25% 15% 14% 9% 5% We have separate, non-connected technologies managing data for different channels We have separate, but connected technologies for different channels We have a single platform that can manage data from some channels but not others We have a single platform that manages data across multiple channels Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 833 Only 8% have a single platform that manages data across multiple channels; the same proportion of companies as in The reasons for the lack of progress within data management could be numerous. Price, internal buy-in, internal skills, legacy technologies and data formats could all pose insurmountable challenges for companies with all the best multichannel data management intentions. It is likely that the rate of change prevents any progression, as shown in Figure 4. As channels and devices proliferate, the challenge of including each new marketing channel within a single platform continues, and it could be that these new and emerging channels are causing a perceived lack of change in integrated data management. Figure 5 shows that organisations with a single platform that manages data across multiple channels are most likely to take an integrated approach to all campaigns across all channels (31%). Those with separate, non-connected technologies have the lowest levels of campaign integration; 67% of responding companies in this category have zero or limited integration across campaigns and channels. Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 11

12 Figure 6 shows the range of challenges facing those striving for more integrated marketing activities in descending order of significance. Non-integrated tech platforms is seen as the most significant barrier to integration, selected as a top-three obstacle by more than half of the survey respondents (56%), and as the single biggest problem by 18%. The issue of disparate datasets across devices and channels is also reflected in the chart, with 47% saying disparate data sources are a top-three obstacle to consistently integrated marketing activities. The top two obstacles are inherently linked. Improvements in technology integration can only decrease the number of data sources and reduce the obstacle presented by disparate data. Also indicated by Figure 6 is that lack of budget, when it is an issue (for 38% of respondents), is most likely to be the greatest barrier (17%) rather than a secondary or tertiary factor. Encouragingly, lack of senior level buy-in is the lowest-ranked barrier, selected by only a fifth of respondents, and as the top barrier by 7%. It seems that senior managers appreciate the importance of a joined-up marketing approach and that multichannel marketing is becoming marketing. Figure 6: Please rank the top three obstacles to consistently integrated marketing activities. Non-integrated tech platforms 18% 23% 15% 56% Disparate data sources 16% 17% 14% 47% Organisational structure 12% 13% 15% Complexity of customer journey 12% 11% 16% 39% Lack of budget 17% 11% 38% Company culture Lack of marketing skills 12% 11% 6% 8% 11% 25% 33% First choice Second choice Third choice Lack of senior level buy-in 7% 6% 7% 6 Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

13 Specific challenges organisations are facing around cross-channel campaign management Alignment of messaging and execution across different channels to ensure clarity of campaign and customer experience. Complexity of customer journeys and systems prevents alignment of campaign execution across multiple channels. It is almost a hen-and-egg problem. Lack of senior level buy-in makes it easy to hide the lack of marketing skills. And the lack of marketing skills prevents people from pushing senior management in the right direction. The not-fitting organisational structure is just a consequence. Time, resources and will to develop integrated approaches, especially with those who are gatekeepers but don t have direct buy-in. Reporting on and efficiently using individual customer journey data. Delivering individualised customer experience on our websites. The way the organisation is set up means that there are very few people truly looking at cross-channel marketing campaigns. While it does happen, it s normally managed by different people with limited coordination. The additional value/cost ratio of further integration beyond the somewhat ad-hoc but reasonably effective mix that we have at present is not convincing enough. We just don t know when, where and how to start cross-channel multi-platform integration. It takes fundamental organisational change to instigate these things even if there s C-level buy-in, it s near impossible to jump through all the hurdles. Marketing departments have not caught up with what the technology can now enable them to do. Survey respondents Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 13

14 Navigating the 4customer journey Understanding the customer journey is becoming an increasingly important requirement for marketers as the number of digital and offline touchpoints proliferates. To provide context, a touchpoint is any moment when a customer or potential customer interacts with the company, its products and perhaps even its intermediaries. The growing number of digital touchpoints along with an increase in device ownership and time spent online has led to an understanding among marketers that the customer journey is becoming an increasingly important concept. Traditionally, even in organisations that have been developing their digital competencies, individual marketing activities and digital tools such as , analytics and CRM have been used in isolation. From a consumer perspective, decisions can be made based on interactions across multiple media, devices and physical locations. This creates a challenge for marketers seeking to interact at important moments that may influence consumers intention to purchase. Companies have found it difficult to analyse a joined-up customer journey precisely because of the growing number of touchpoints across the digital and physical worlds. The good news, however, is that while digital is certainly a factor leading to higher customer expectations, it also has a critical part to play in turning these challenges into lucrative opportunities for organisations to capture greater insights and develop a single customer view to put them in a position to really optimise the experiences of their customers 2. Figure 7: In the context of integrated marketing, how would you describe your organisation s customer journey analysis capabilities? 11% 17% Current capability Working on capability Planning to have capability No plans 42% Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 848 Given the scale of the challenges around joining up data from so many different sources from linking up legacy systems to changing organisational dynamics and making sense of customer data it is unsurprising that only 17% of respondents indicate that they are fully capable of analysing their customers journeys (Figure 7). Encouragingly, the majority of respondents appear to be either planning to have this capability () or are working on it already (42%). Only 11% of respondents revealed that they have no plans to develop this competence. 2 Customer Experience Optimization Report. Available from: 14 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

15 Figure 8 below shows that companies in the consumer goods and financial services sectors are most likely to have a current capability in the area of customer journey analysis. Along with the technology sector, they are also most likely to be working on having a capability. Figure 8: Customer journey analysis capabilities by sector % 5% 25% 8% 36% 4% 34% 8% 35% % 49% 39% 46% 43% 21% 21% 17% 16% 14% Consumer Goods Financial Services and Insurance Retail / Mail Order (including online retail) Technology Travel and Hospitality Current capability Working on capability Planning to have capability No plans Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Consumer Goods 57 Financial Services and Insurance 94 Retail 105 Technology 100 Travel and Hospitality 51 The natural progression from developing journey analysis capabilities is to implement marketing activities that correspond with the customer journey. With 17% of respondents indicating that they have this capability (Figure 7), it is no surprise that only of company respondents match channels and content to a well-mapped customer journey (Figure 9). In comparison, only 8% of agencies say their clients map channels and content to a well-mapped customer journey. There is, however, a clear effort among the majority of respondents to make some attempt to match channels and content to a roughly-mapped customer journey. While only 17% of respondents indicate that they have the analysis capabilities to do this, Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 15

16 Only of companies match channels and content to a wellmapped customer journey nearly two-thirds of companies (64%) and agencies (61%) indicate that they or their clients at least try to match channels and content to a roughly-mapped customer journey. Organisations in the financial services and insurance sector are twice as likely to closely match channels and content to a well-mapped customer journey as their peers in travel and hospitality (12% versus 6%), as seen in Figure 10. It is unclear how they are doing this but it does raise the question of what kind of understanding they currently have about customer journeys. If we delve deeper and refer to Figure 11, we can see that around half of respondents claim to have a fair understanding of each stage of the customer journey. Figure 9: How does your organisation (or how do your clients) carry out marketing activities based on the customer journey? % 61% Agency respondents 5 26% 31% 8% We / they closely match channels and content to a well-mapped customer journey We / they try to match channels and content to a roughly-mapped customer journey We / they don t really attempt to match marketing activities to the customer journey Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 754 Agency respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

17 sector comparison Figure 10: How does your organisation carry out marketing activities based on the customer journey? % 22% 23% 22% 19% % 66% 68% 68% 75% 6 5 Consumer Goods 12% Financial Services and Insurance 9% Retail / Mail Order (including online retail) Technology 6% Travel and Hospitality We don t really attempt to match marketing activities to the customer journey We try to match channels and content to a roughly-mapped customer journey We closely match channels and content to a well-mapped customer journey Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Consumer Goods 52 Financial Services and Insurance 83 Retail 94 Technology 88 Travel and Hospitality 48 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 17

18 Figure 11: How would you describe your organisation s understanding of the different phases of the customer journey? Research phase when customers are getting to know our brand / products 18% 54% 28% Consideration phase when customers are evaluating / comparing our brand / products 17% 55% 28% Acquisition phase when customers are encountering our brand / products 29% 51% Conversion phase when customers act to purchase / subscribe, etc. 27% 52% 21% Retention phase when first-time customers become brand advocates and loyalists 21% 49% 5 10 Strong understanding Fair understanding Poor understanding Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 747 Unsurprisingly, the areas where organisations have the strongest understanding of their customer journeys are at the acquisition and conversion stages. Other phases, such as research, consideration and retention, are more shrouded in mystery, clearly suggesting that companies need to work on their understanding of these crucial stages both before and after conversion. Recent research 3 revealed that complexity and number of touchpoints is perceived to be the most significant issue preventing organisations from gaining a better understanding of the customer journey, with more than a third (35%) citing it. It follows then that when asked about barriers to mapping the customer journey (Figure 12), respondents cited a lack of systems as being the greatest challenge. Analysis skills on the 3 Understanding the Customer Journey Report. Available from: 18 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

19 Focusing on single touchpoints can divert attention from the customer s entire journey other hand would appear to be less of an issue. A Harvard Business Review article from points out that focusing too narrowly on maximising satisfaction at discrete touchpoints can lead companies to think of customers as being happier than they actually are. Focusing on single touchpoints can divert attention from the customer s entire journey. There is an entire relationship to be understood from customer acquisition to retention. Figure 12: Do you agree or disagree with the following statements? % 13% 17% 34% 4% 34% 5% 17% 22% 37% 8% 24% 21% 31% Strongly disagree Somewhat disagree Neutral Somewhat agree Strongly agree 33% 32% 19% 16% We lack the systems to effectively map the customer journey We lack the time/resource to effectively map the customer journey We lack the data to effectively map the customer journey We lack the analysis skills to effectively map the customer journey Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: The Truth About Customer Experience. Harvard Business Review. Available from: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 19

20 5 touchpoints Mapping mobile Understanding the mobile customer journey presents a complex challenge for marketers. Smartphones give us the opportunity to reach the right customer at (potentially) exactly the right time and the right place. But the reality can often fall short, due to a variety of reasons. Given the challenges associated with understanding the customer journey as a whole and the widespread feeling of a dearth of adequate systems, data and resources (Figure 12), it is no surprise to see that marketers respond similarly when shown the same statements explicitly in the context of mobile (Figure 13). A high proportion of respondents broadly agree that they lack the capabilities to effectively map the mobile customer journey. Two-thirds (67%) of respondents agree that they lack the systems to effectively map the mobile customer journey, and the proportion is similar for mobile data, and time and resource. Mobile is a critical component of a multichannel strategy as the primary personal device, it can help link all digital marketing activity for the benefit of the customer. There remains a significant gap between those who are realising the potential of mobile and those who are not. Figure 13: Do you agree or disagree with the following statements? % 12% 16% 37% 5% 13% 18% 36% 7% 11% 18% 36% 21% Strongly disagree Somewhat disagree Neutral Somewhat agree 5 31% Strongly agree 28% 28% 18% We lack the systems to effectively map the mobile customer journey We lack the mobile data to effectively map the customer journey We lack the time/resource to effectively map the mobile customer journey We lack the analysis skills to effectively map the mobile customer journey Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

21 Figure 14: Considering what you (or your clients) know about the customer journey, how important do you believe it will be to analyse customer behaviour and respond in real time (nearly instant, automated response)? % 49% 38% 41% Agency respondents Very important Quite important 7% 8% Not very important 1% 2% Not at all important Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 724 Agency respondents: 548 As already noted, the mobile device is perhaps the best medium to deliver timely messaging. With the right data and analytics it s feasible for organisations to conduct real-time marketing, something respondents considered to be very important. As seen in Figure 14, over half (54%) of company respondents thought analysis of customer behaviour combined with a real-time response was very important and 38% thought it to be quite important. Based on responses to several statements about mobile capabilities, it seems marketers have yet to take full advantage of the mobile opportunities being afforded. While twothirds (65%) of respondents say they use responsive design to ensure a better experience on mobile devices, less than half agree that messaging apps are integral to their multichannel marketing efforts (41%) or that they can identify users across different devices and store data centrally (), as seen in Figure 15. Half (5) of respondents disagree that they can send relevant, permission-based push messages based on location. This is perhaps the most significant area of opportunity for marketing through mobile. As seen in Figure 14, the majority of survey respondents agree that real-time response is important, and sending relevant messages based on location is a large component of real-time marketing. Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 21

22 Again, it is clear that there is a gap to fill between the potential of using mobile in a multichannel marketing strategy and understanding the execution of mobile as part of multichannel. There are a significant number of organisations missing out. It is clear that mobile has huge potential for a multichannel strategy, yet broad investment is required in skills and systems to fully understand the mobile customer journey. Figure 15: To what extent do you agree with the following mobile-related statements? % 17% 28% 37% 18% 15% 26% 24% 24% 16% 24% 24% 14% 22% 25% 19% 19% 17% 16% 15% 12% We use responsive design to ensure a better experience on mobile devices Messaging apps are integral to our multichannel marketing efforts We can identify users across different devices and store data centrally We target display advertising messages based on location We send relevant, permissionbased push messages based on location Strongly agree Somewhat agree Neutral Somewhat disagree Strongly disagree Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

23 and the customer journey: vital from start to finish (and still 6underestimated) According to the Internet Advertising Bureau 5, the average household now has seven internet-enabled devices, giving consumers more choices as to how and when they engage with companies. From a marketer perspective, there is more complexity than ever, with many organisations accepting the fact that there are likely to be as many journeys as there are customers. The popularity of apps means that open rates on mobile now exceed desktop 6. With consumers spending more time on mobile, is increasingly binding multichannel strategies together. For example, according to the Direct Marketing Association, consumers spent 2.02 hours a day on at home in 2014, up from 1.74 in This is reflected in Figure 16, which emphasises the significance of s role across all phases of the customer journey. Inexpensive to personalise and automate, and highly trackable, the channel is now key to marketers engagement strategy with progressive companies using to build long-term relationships that go beyond the sale. Figure 16: How would you describe the role of in the different phases of the customer journey? % 33% 5% 23% 8% 29% 6% 23% 4% 14% % 41% % 41% 42% 14% 22% Research phase Consideration phase Acquisition phase Conversion phase Retention phase Central role Important role Limited role No role Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: IAB / PwC Digital Adspend Study. Summary available from: 6 Mobile: 5 Trends to Watch. Return Path. Available from: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 23

24 Two in five marketers agree that has a central role in the retention phase Looking at Figure 17, marketers are least likely to have a strong understanding of the research and consideration phases. Although only 21% claim a strong understanding of the retention phase, twice as many marketers (42%) agree plays a central role here. This can range from relevant post-sales messages (cross-sell and upsell opportunities) to personalised messages that can be used to develop and amplify the customer relationship (from surveys to offering gifts on special occasions). Figure 17: Proportion of company respondents saying they have a strong understanding of the different phases of the customer journey vs proportion saying that has a central role in these phases Research phase Consideration phase 18% 14% 17% Proportion of company respondents saying they have a strong understanding of the different phases of the customer journey Acquisition phase Conversion phase 22% 29% 27% Proportion of company respondents saying that has a central role in these phases of the customer journey Retention phase 21% 42% 5 Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

25 Figure 18: Does your organisation have the following -related capabilities? Previewing how s will render on different devices and clients (e.g. Gmail) Creating and segmenting list by personas 5 55% Dynamically delivering content based on own customer data 43% Dynamically delivering content based on behaviour 28% Dynamically delivering content based on web and/or mobile app behaviour Dynamically delivering content personalised at open time (depending on time, location, weather etc.) Dynamically delivering content based on third-party data partners None of the above 19% 17% 16% 21% 6 Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 685 The increased variety and volume of marketing channels provides marketers with a means of connecting to their customers in more relevant and meaningful ways. For example, a greater number of channels provide more data collection opportunities. This enhanced understanding of customers can then be used to fine-tune marketing messages. The ability for to render on different devices is a hygiene factor; if your creative doesn t download, it s a lost marketing opportunity. As seen in Figure 18, over half (55%) of respondents claim they re able to preview how s will render on different devices and clients. Almost as many marketers agree that they have the capabilities to create and segment lists by personas (5) and 43% are using customer data to inform content strategy, critical for engaging and connecting via increasingly cluttered inboxes. However, it is obvious marketers are struggling to gain a single view of the customer, and lack the capabilities to automate at multiple touchpoints. Half as many respondents agree their capabilities stretch to dynamically delivering content based on web or mobile app behaviour (19%), time of opening (17%) and third-party data partners (16%). Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 25

26 Marketers need to raise their expectations when it comes to the role of in the customer journey The majority of capabilities outlined in Figure 19 are regarded by marketers as very or quite important. But capabilities are only half the story. Industry practitioners also need to raise their expectations when it comes to the role of in the customer journey. That is, pursue a more ambitious approach to achieve best practice. According to Econsultancy s Marketing Industry Census 7, there s a case of familiarity breeds contempt. It s been around and worked so well as a core channel that it s taken for granted. According to the same report, for example, the amount of overall marketing budget attributed to is in decline (13% down from 16% in the previous year). Figure 19: How important will it be to have these capabilities moving forward? Creating and segmenting list by personas 58% 35% 7% Dynamically delivering content based on behaviour 57% 37% 6% Dynamically delivering content based on own customer data 54% 6% Dynamically delivering content based on web and/or mobile app behaviour 47% 42% 11% Previewing how s will render on different devices and clients (e.g. Gmail) 44% 47% 9% Dynamically delivering content personalised at open time (depending on time, location, weather etc.) 42% 18% Dynamically delivering content based on third-party data partners 23% 42% 35% 5 10 Very important Quite important Not important Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Marketing Industry Census Available from: 26 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

27 7 campaign The tangible impact of cross-channel management Cross-channel campaign management can be defined as the practice of organising, designing, executing and measuring marketing communications that span both digital and traditional channels. When done effectively, cross-channel marketing can result in consistent, personalised campaigns that deliver the best experience for customers and help organisations reap significant, often profit-maximising, rewards in the process. Despite these benefits, campaign management is carried out in a fairly basic fashion in many companies and the various touchpoints through which customers interact with brands are not orchestrated through a centralised marketing platform, let alone fully analysed and understood. Most organisations can engage with customers in outbound (8) or inbound (75%) channels, but over two-thirds (69%) struggle to combine these channels in an orchestrated, consistent fashion, according to Adobe research 8. While there s certainly room for improvement, many organisations are taking steps in the right direction, as almost three in five identified cross-channel marketing as a key focus for them in Figure 20: Do you (or your clients) use a cross-channel campaign management tool? 6 5 Agency respondents 47% 5 23% 26% 7% 7% Yes, we / they use a third-party solution Yes, we / they use a solution that was built in-house No, we / they are evaluating solutions No, no plans to use such a tool Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 847 Agency respondents: Assessing Campaign Management Maturity. Adobe. Available from: digitalmarketing/campaign/ assessing-management-maturity.html 9 Econsultancy / Adobe Quarterly Digital Intelligence Briefing: 2015 Digital Trends. Available from: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 27

28 Only around a quarter of companies use a cross-channel campaign management tool Figure 21: Use of cross-channel campaign management tools by sector % 22% 25% 16% 23% % 49% 54% 5 55% 5 5% 23% 4% 25% 7% 14% 12% 22% 6% 16% Consumer Goods Financial Services and Insurance Retail / Mail Order (including online retail) Technology Travel and Hospitality No, no plans to use such a tool No, we are evaluating solutions Yes, we use a solution that was built in-house Yes, we use a third-party solution Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: Consumer Goods 57 Financial Services and Insurance 92 Retail 107 Technology 101 Travel and Hospitality 51 As seen in Figure 20, while only around a quarter (27%) of organisations surveyed use a cross-channel campaign management tool (either third-party or built in-house), nearly half (47%) indicate they are evaluating solutions. As is the case with any marketing technology, higher earners are more likely to invest: companies with revenues of more than 50m annually are 68% more likely to use a cross-channel campaign management tool compared to those earning under 50m (32% compared to 19%). While retail and travel & hospitality organisations are least likely to be using cross-channel campaign management tools (either third-party or built in-house), this is set to change in the near future as over half (54% and 55% respectively) claim to be in the evaluation stage (Figure 21). 28 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

29 Figure 22 shows that cross-channel campaign management tools typically have a significant impact on marketing performance, with nine in ten respondents describing the impact as either high (38%) or medium (5). None of the organisations surveyed said that using campaign management tools had no impact. Interestingly, organisations using third-party solutions are nearly 5 more likely to say that cross-channel campaign management tools have had a high impact on their marketing performance than those using tools which were built in-house. Overall, the vast majority of both groups (89% and 85% respectively) describe the impact as high or medium. Figure 22: How would you describe the impact of using a cross-channel campaign management tool on your (or your clients ) marketing performance? % 42% Agency respondents 12% High impact Medium impact 7% Low impact 1% No impact Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 223 Agency respondents: 193 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 29

30 The purpose of any marketing optimisation effort should ultimately be to improve business performance, either maximising brand value or improving the bottom line. Only 7% of companies indicate they always hit financial targets and schedules when it comes to managing and optimising crosschannel campaigns, with an additional 37% saying they often do so (see Figure 23). Figure 23: How would you describe the efficiency with which your (or your clients ) marketing team can manage and optimise cross-channel campaigns? 5 37% 33% 41% 47% Agency respondents 7% 5% We / they always hit financial targets and schedules We / they usually hit financial targets and schedules We / they sometimes hit financial targets and schedules 11% 12% We / they rarely hit financial targets and schedules 4% 3% We / they never hit financial targets and schedules Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 746 Agency respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

31 cross-tabulation Figure 24: Level of efficiency with which marketing teams can manage and optimise cross-channel campaigns and use of cross-channel campaign management tools % 3% 7% 6% 11% 42% 6% 31% 43% 9% 15% We never hit financial targets and schedules % 51% 37% 41% We rarely hit financial targets and schedules We sometimes hit financial targets and schedules We usually hit financial targets and schedules 11% 6% 6% 5% We always hit financial targets and schedules Yes, we use a third-party solution Yes, we use a solution that was built in-house No, we are evaluating solutions No, no plans to use such a tool Econsultancy / Adobe Quarterly Digital Intelligence Briefing Respondents: 746 Figure 24 illustrates the cross-tabulation between use of cross-channel campaign management tools and level of efficiency with which marketing teams can manage and optimise cross-channel campaigns. Those using third-party solutions are nearly twice more likely to always hit their targets than the rest. Over half (52%) of organisations using cross-channel campaign management tools (either third-party or in-house) indicate they usually or always hit their targets. This compares to of those who are either in the evaluation phase or have no plans to implement this technology. s often feature as hooks in customer engagement strategies because they provide an incentive (usually by providing information or adding context) for consumers to engage with brands using other channels. Layering cross-channel campaign management capabilities with those of a powerful platform not only means that becomes an integral part of marketing strategies, but also adds a new dimension when building comprehensive customer profiles. Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 31

32 Those using cross-channel campaign management tools are more likely to hit financial targets Encouragingly, as seen in Figure 25, only a third of those surveyed say they use separate, non-integrated technologies for cross-channel campaign management and . Just under a third () use the same technology for both, while two in five (37%) say the technologies are separate yet integrated. Further analysis of the data reveals that companies using the same platform for their cross-channel campaign management and activities are more likely to describe the tool s impact on their marketing performance as high (51% compared to 33% of those using separate technologies). Figure 25: Is your (or your clients ) cross-channel campaign management tool a separate technology to your (or their) marketing system? 5 44% 37% 38% Agency respondents 33% 18% Yes, it is separate and not integrated Yes, it is separate but integrated No, it is the same platform Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 223 Agency respondents: Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with

33 8 stack How campaign management tools up For the purposes of this research, we identified six key capabilities of effective campaign management tools. As can be seen in Figure 26, the majority of client-side respondents say their chosen technology is able to deliver on visual reporting tools to monitor performance easily (62%), functionality which is increasingly important for time-starved marketers who want to be able to see and digest information about their campaigns as quickly as possible. Similarly, more than half of respondents say their tools enable them to consolidate data across all touchpoints (61%) and to run automated campaigns based on customer events (56%). Bringing together data from key channels is an obvious pre-requisite for integrated marketing while the lines between marketing automation and multichannel campaign management have become so blurred that some would argue they are now one and the same thing. Conversely, less than half of respondents say that their tools ensure consistency and experience across all channels (46%), enable them to build individual profiles based on behaviour and interests across channels (44%) and to connect online and offline executions (39%). It s disconcerting that only a minority of respondents say their campaign management tools have capabilities that go to the heart of what this type of marketing technology should be providing. Figure 26: Which of the following capabilities does your (or your clients ) campaign management tool offer? Visual reporting tools to monitor performance easily Consolidating data across all touchpoints Running automated campaigns based on customer events Ensuring consistency and experience across channels Building individual profiles based on behaviour and interests across channels 62% 67% 61% 6 56% 53% 46% 49% 44% 45% Connecting online and offline executions 39% 35% Agency respondents 6 8 Econsultancy / Adobe Quarterly Digital Intelligence Briefing : 220 Agency respondents: 190 Quarterly Digital Intelligence Briefing: The Multichannel Reality In association with 33