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Seven ways digital marketing will change in 2014

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Introduction: 2013 was the year of becoming a

customer-focused business
The year 2014 will mean more of the same for marketers. This may sound like a simplistic introduction to a series of
predictions for the year ahead but nothing could be closer to the truth. Just like in 2013, smart businesses will let their best
customers define and drive their branding and demand-generation efforts. And savvy marketers will continue to focus on
customer engagement programs that are responsive, continuous and highly intelligent.
Over the last few years, weve seen dramatic shifts in how people use technology and digital devices to interact with the
world around them and help them make shopping decisions. According to research we conducted this year, more than
half of consumers are opening email on mobile devices. Additionally, 31 percent of adults say they often use their mobile
phone or computer while watching television. Businesses that understand and leverage these consumer behaviors will
continue to excel.
The good news is that in 2013 most organizations moved beyond simply recognizing the need for customer-centric change
and actually created roadmaps for how data and technology could help them get there. We also saw innovations within
marketing and advertising technology to help marketing organizations harness their data assets and begin to execute on
that vision. For example, our research shows that while most brands (66 percent) use recommendation engines on Websites,
41 percent are also using them to enhance their transactional emails.
The journey isnt over. In 2014, aligning with the customer will require differentiation in data strategy, in technology and for
every customer interaction. This series of predictions from Experian Marketing Services executives will highlight critical
aspects of bringing these to life in the year ahead through predictive analytics, data quality, actionable insights, technology
and more.
We hope that what you read will help you to deliver on your own customer-driven vision in the year ahead. Also stay
tuned for The 2014 Digital Marketer: Benchmark and Trend Report, in which we review the latest digital trends, research and
best practices.
Matt Seeley
Group President, North America
Experian Marketing Services

#7for14: Seven ways digital marketing will change in 2014

This is the year that

marketers will align
their data to create more
thoughtful customer
interactions and improved
consumer experiences
across channels.
Matt Seeley

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#1: Challenges of the CMO

Every Chief Marketing Officer (CMO) strives to build and maintain a personal relationship and connection between their
brand and their customers. Its what we call customer-centricity, or customer obsession. It is and always has been a big task
given that we, as human beings and consumers, are unique individuals with our own personal preferences, habits, thoughts
and behaviors that change over time. The need for CMOs to build and maintain that 1:1 connection is no different in 2014,
but the task of doing so has become far more complex and challenging than ever before.
In the past there were only a handful of devices and channels through which marketers could reach their audience. Today,
the possible paths to purchase have multiplied exponentially and will continue to do so. Advancements in mobile technology
and the proliferation of social channels have given consumers the ability to connect and access information at any time, and
their attention is more fragmented than ever. And as they move from device to device, or seamlessly in and out of channels,
they leave behind an ever increasing amount of data and information that can help CMOs better understand their needs,
desires and preferences.
CMOs need to be able to adapt to an ever-accelerating pace of change in pursuit of true customer-centricity. They have to be
cognizant of new trends and ways of communicating, and understand the application and intent of how future channels or
devices will be used. To best serve customers through new mediums, CMOs must be open to understanding their purpose
and function, while creating specific strategies for the individual customers who embrace them. Lastly, they must capture,
interpret and quickly action all the data and information that their customers provide in order to create a meaningful
experience for that unique individual.
In 2014, CMOs must be multifaceted leaders, merging the creativity traditionally required of marketers with a deep
understanding of data and technology. Coordinating data to create a more multidimensional, panoramic view of the
customer is still a utopia many have yet to reach. This year it will be more important than ever to link data assets together
in one centralized location to better understand the behaviors and attitudes of the most coveted customers and then action
that data to create integrated, intelligent interactions with each and every customer. Only then will there be any chance of
delivering relevant content at every point of interaction.
Becoming more customer-centric and focusing on delivering value and a positive experience for the customer every time will
be the difference maker for leading, customer-centric companies in 2014 and beyond.
Ashley Johnston
Senior Vice President, Global Marketing
Experian Marketing Services

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Customer centricity
requires a real commitment
a level of obsession. It
means understanding that
your customers dont think
in channels but rather use
varying means to search,
source, compare, research
and buy. Successful
brands understand this
and will begin to adapt
their communication
strategies, services, loyalty
programs and even internal
structures and processes
to align, giving their
customers what they want
each and every time.
Ashley Johnston

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#2: Enhancing data-driven campaigns through

predictive analytics
Compared to traditional or established marketing channels, such as email and direct mail, digital advertising is still the
teenager of the marketing ecosystem frustrated but optimistic, hungry and rapidly growing. Theres myriad opportunity,
but the immaturity of the channel means that, as an industry, were still figuring out how to optimize and standardize
digital advertising techniques. Complicating this foundational challenge is the fact that digital advertising operates in a Big
Data environment, where data and distribution channels arent static, but real time and dynamic. A customer relationship
management (CRM) database may have 10 million customers, but in display advertising, the customer base can be 10 times
that size given the many different sources/data types that increase and change faster than you can say tweet.
2014 will be a critical year for digital advertising. We will see this adolescent channel mature in planning, decision optimizing
and measurement. This Big Data-oriented channel will become well framed and more intelligent. It will still be big but will
also start to become more manageable and effective.
In 2014 marketers will embrace a major difference maker: predictive analytics. Predictive analytics is a practice that enables
marketers to analyze current and historical behavior in order to discover patterns and predict future behavior or repeat
purchases. This isnt new overall, but until recently, it wasnt a practice frequently applied to digital advertising, where it is
already playing a transformational role in helping to precisely segment and understand customer behavior.
Predictive analytics will change digital advertising in several demonstrable ways in 2014. Campaign optimization, for
example, will use predictive analytics to ensure greater precision in the ad bidding and buying process. Marketers will be
able to create tighter target audience segments and optimize media buys in real time.
Digital attribution strategies will apply a predictive analytics framework to resolve challenges associated with Big Datas
volume, variety and velocity online and automate the process for linking online and offline data at the scale and speed
necessary for closed-loop, return on investment (ROI) measurement. Predictive analytics will also lead to more precise
insights that help determine the role of digital advertising within the overall marketing mix.
As the marketing industry focuses on digital ROI and digital advertisings link to offline sales as well as the continued
growth of Big Data, predictive analytics will be an important tool in every marketers toolkit in 2014.
Rick Erwin
President, Targeting
Experian Marketing Services

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2014 will be a
critical year for digital
advertising. We will see
this adolescent channel
mature in planning,
decision optimizing
and measurement. This
Big Data-oriented channel
will become well framed
and more intelligent. It
will still be big, but will
also start to become more
manageable and effective.
Rick Erwin

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#3: Transforming marketings role in data quality efforts

Todays marketers see data not just as a source for a particular campaign or improved customer interactions across
channels, but as a wealth of knowledge for senior leadership to use to inform strategic direction. But while data may now
be viewed as an important strategic asset, unfortunately we have not seen data quality efforts keep up with data-driven
marketings popularity.
Data quality enhancement was traditionally implemented as a siloed, one-off effort. Even today, data quality generally
remains a secondary component of the marketing mix. According to new Experian Data Quality global research, only onethird of companies manage their data quality strategy centrally through a single leader. This means that the vast majority of
companies lack a coherent, centralized approach to data quality.
That does not bode well for the quality of consumer information. In fact, we are seeing this reflected in rising data inaccuracy
levels. Globally, surveyed companies today expect that, on average, 22 percent of their data is wrong, up from 17 percent just
a year ago. In the U.S., organizations believe one-quarter of their data is inaccurate.
The general rise in data inaccuracy is due to the fact that there is more data from multiple digital and traditional sources.
Couple increasing volume with the variety of ways information is entered, and there is simply more room for human error.
Additionally, more individuals in an organization are looking to leverage data insights and are noticing fault with the base
information, bringing data inaccuracies to the forefront. The prevalence of segmented, departmental approaches to data
accuracy often prevents stakeholders from analyzing, improving and controlling data problems by dividing resources and
further segmenting information.
As marketers look to improve cross-channel marketing efforts and increase tailored communications to individual
consumers, data quality needs to be a priority. While data quality is certainly not the most glamorous topic, it is a
requirement to accomplish todays sophisticated marketing objectives. With the increasing desire for marketers and
organizations to become data-driven, in 2014 marketers will need to recognize data quality as an imperative and marshal
resources from other departments to foster a centralized data quality strategy.
Thomas Schutz
Senior Vice President and General Manager, Data Quality
Experian Marketing Services

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While data quality is

certainly not the most
glamorous topic, it is a
requirement to accomplish
todays sophisticated
marketing objectives.
With the increasing
desire for marketers and
organizations to become
data-driven, in 2014
marketers will need to
recognize data quality
as an imperative and
marshal resources from
other departments to
foster a centralized data
quality strategy.
Thomas Schutz

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#4: Making consumer insights actionable

There is no shortage of customer data today. In fact, companies are drowning in it, so its amazing how much customer
data goes unused by marketers. Many companies simply continue to use mass discounting to incentivize customers
regardless of what truly motivates them or their past purchase behavior. However, many marketers have discovered that
mass discounting, as a strategy, no longer drives top-line revenue. In fact, our research shows that only 45 percent of
consumers are motivated by discounts and that, for the vast majority of them, price isnt the most important consideration
for making a purchase.
This insight marks 2014 as the year marketers finally end mass discounting and unleash the power of their customer data.
Weve reached a tipping point where interaction management tools, data integration and customer analytics allow us to
intelligently interact with customers with contextually relevant and meaningful engagement.
Its the idea of making Big Data small. Its the ability for larger brands to interact with customers in the same way
that the local merchant or banker might. They can know their customers personally, can know what theyve purchased in the
past and are able to anticipate what the customer may need in the future. This insight and related messaging helps to keep
them coming back.
This paradigm shift from a more mass-marketing philosophy will be central to delivering top-line revenue growth and
bottom-line results as marketers use their customer data to implement smarter customer engagement programs at scale.
To unlock the true potential of customer data, well see marketers leverage customer profiles and segmentation schemes
that link demographics, attitudes and transaction history; develop content strategies that focus on delivering convenience
and engagement; and use predictive analytics to enable the delivery of the right content, offer or message within the context
of the customer experience.
Data-driven marketing isnt as easy as mass discounting, but it delivers happier customers and long-term loyalty equating to
higher and more profitable revenue.
Simon Bradstock
Senior Vice President and General Manager, Consumer Insights
Experian Marketing Services

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Its the idea of making

Big Data small. Its the
ability for larger brands to
interact with customers
in the same way that the
local merchant or banker
might. They can know
their customers personally,
can know what theyve
purchased in the past and
are able to anticipate what
the customer may need in
the future. This insight and
related messaging helps to
keep them coming back.
Simon Bradstock

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#5: Email, mobile, social trends in a cross-channel world

In 2013 marketers really felt the effects of major changes that have been occurring in the traditional purchase funnel.
Hyperconnected consumers demonstrated their intent to engage with their favorite brands anytime and anywhere through
increased mobile interaction. New behaviors enabled by social media also showed that the consumer was more empowered
than ever before.
What does this all mean? The ways in which consumers are engaging, and ultimately transacting, has changed forever, with
profound consequences for all marketers. Consumers are on multiple devices at different times of the day, and their path to
purchase is certainly no longer linear or even predictable.
As marketers, we must always remember that every interaction we have with the customer, every touch-point, influences
brand choice and purchase decisions. We must stop thinking of interactions within channels as individualized and purely
short term in nature. The fact that a customer might not immediately buy from a link sent in an email doesnt necessarily
indicate that the customer wont ultimately purchase in-store or even tell their friends about the promotion.
In the eyes of consumers in 2014, winning brands will be those that have the strategy, technology and confidence to
empower customers to interact in the channel of their choice. That doesnt just mean making sure that the brand is properly
represented everywhere, but rather, ensuring that the customer experience is consistent, optimized and, most importantly,
personalized across all channels throughout the entire Customer Life Cycle.
Because of the incredible ease in which customers can now research and compare, convincing them that they are the center
of a brands universe will take on even greater importance in 2014. Quick-win tactics like discounts and rewards programs
alone arent going to capture the hearts of consumers.
Marketers who effectively anticipate the emotional and rational needs of their customers over the long term and then best
deliver on those needs in the customers channel of choice
both online and offline
will reap the rewards. However, with
information and customers now moving faster than ever, this will only be accomplished through continual and constant
tracking, interpreting and measurement of all customer data points through a single customer view. If they have not yet
started, organizations need to begin aligning business goals, key performance indicators (KPIs) and job functions around
the customer rather than the channel. With this change comes tremendous opportunity for marketers and brands looking to
build more intimate and meaningful relationships with customers. Its certainly an exciting time to be a digital marketer.
Peter DeNunzio
General Manager, Cross-Channel Marketing
Experian Marketing Services

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Marketers who effectively

anticipate the emotional
and rational needs of
their customers over the
long term and then best
deliver on those needs in
the customers channel of
choice both online and
offline will reap the
rewards. However, with
information and customers
now moving faster than
ever, this will only be
accomplished through
continual and constant
tracking, interpreting and
measurement of all
customer data points
through a single
customer view.
Peter DeNunzio

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#6: The CMO as technologist

The rate of change for marketers has been faster in the last five years than ever before. The advent of the smartphone and
tablet, and even social media has empowered consumers like never before. Customers now have unprecedented access to
information, products and brands, via different technologies, and can interact with brands at their convenience, via channels
that are immediately available to them. Marketers need to change the way they think about marketing more traditional
marketing tactics employed prior to this change in consumer behavior are simply not effective in this always-on, crosschannel environment.
Marketers simply can no longer have disparate systems and processes across their businesses. Customer touch-points have
to be interconnected and operate in real time to ensure clear, coordinated and consistent experiences with a brand. These
interactions must be seamless between the devices and the channels used by customers.
Luckily, marketing technology has evolved to keep pace with the new consumer and facilitate the marketing strategies
essential for a brand to survive and thrive today. CMOs and their marketing teams are at a pivotal point: they need to make
serious decisions about the future, including how and when to transition from legacy marketing processes and systems.
CMOs must also understand the causality of linking data for a single customer view and how important it is in the
marketing infrastructure. Equally critical is recognizing how technology enables the intelligent interactions necessary to
connect and engage with the always-on consumer, whether through email, text, call center or even in-store. These kinds of
intelligent interactions can be ensured by forming a very tight relationship the technology side of the business, aka the Chief
Information Officer (CIO), or by the CMO actually taking ownership of the technologies they are deploying campaigns from.
While not the case historically, there has been a recent shift toward CMOs recognizing the need to not only be involved in the
discussion, but sometimes lead the technology initiatives within their organization.
Youve got to be able to look at a new channel, test it for effectiveness and decide whether or not to bring it in based on
who your consumer is and whether or not theyre connecting with your brand. Youve got to be able to try new tactics, learn
quickly, move forward and adapt to new ways to talk to your customers. Its all about speed of testing today.
CMOs who embrace this philosophy and the technologies that enable it will better connect with their best customers,
improve brand advocacy and increase their revenues in 2014.
Jeff Hassemer
Senior Vice President, Global Product Strategy
Experian Marketing Services

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Youve got to be able to

look at a new channel,
test it for effectiveness
and decide whether or
not to bring it in based
on who your consumer is
and whether or not theyre
connecting with your
brand. Youve got
to be able to try new
tactics, learn quickly,
move forward and adapt to
new ways to talk to your
customers. Its all about
speed of testing today.
Jeff Hassemer

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#7: What you can expect from consumers in 2014

As we enter 2014, consumers forward-looking view of our economy remains in flux. While there isnt great certainty about
what our economic future holds, consumer behavior is pointing to several changes that we can expect in the coming year.
Uncertainty drives consumers quest for deeper knowledge
More than 70 percent of all consumers say that they check online reviews before they make a purchase. Given our continuing
state of economic uncertainty, we expect that consumers will leverage Websites to find the best possible price on the best
products and services. As our Deal Seeker segmentation analysis revealed in late 2013, just more than half of consumers are
driven by getting the best possible deal. While retailers have been very aggressive on discounting, quality and service will
become key purchase triggers for the other half of consumers who are not deal obsessed.
Show-rooming gives way to living-rooming, car-rooming, *-rooming
Over the last several years, brick-and-mortar retailers have been fixated on show-rooming, the practice of checking prices
online while in a physical store. With the ubiquity of smartphones and tablets, consumers are checking prices and product
reviews everywhere, all of the time. Consumer sophistication will grow substantially in 2014 with the free flow of information
fueling their ability to make cost/benefit decisions on the fly. From buying a car to purchasing a streaming movie to choosing
a frozen dinner, consumers will be researching online more than ever. Marketers must embrace the fact that consumers
are armed with near-perfect information. Today, Big Data isnt just for marketers; consumers have their own massive online
source to determine price and quality.
Consumers become more conversant
2014 will be the year of transactional social media. Beyond purchases driven by consumer content in traditional social
media, contributing to the online review space will move toward mainstream. According to our data, mothers with young
children are eight times more likely than the population as a whole to pen online reviews. These Web-savvy consumers are
the early adopters in the conversant consumer segment. Marketers who touch this demographic in any way should take their
lead and learn from listening to their influential opinions.
One of our biggest challenges as marketers is keeping ahead of the changes in technology and information. As consumers
become data-driven, our challenge for 2014 is to listen, understand the individual consumer and market through
participation. The byproduct of a conversant consumer is the expression of individual wants and needs, as consumersupplied information continues to grow.
Bill Tancer
General Manager, Global Research
Experian Marketing Services

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From buying a car to

purchasing a streaming
movie to choosing a frozen
dinner, consumers will be
researching online more
than ever. Marketers must
embrace the fact that
consumers are armed with
near-perfect information.
Today, Big Data isnt just
for marketers; consumers
have their own massive
online source to determine
price and quality.
Bill Tancer

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Conclusion: Key takeaways for a successful 2014

Marketers will continue to wrestle with challenges brought about by ever-increasing amounts of customer data, technology
advancements and, most importantly, the evolving behaviors of todays empowered consumer. Companies that focus on
creating value for consumers and employing a data-oriented approach to communicating will out-perform the market and
reap significant benefits. Although multichannel, coordinated communication is driving strategy today, tomorrow will be
about two-way communication with consumers that builds a relationship over time.
A new Experian Marketing Services research study shows that marketers two biggest challenges are managing data
and ensuring that CRM and other systems are available to create and manage customer interactions. We also found that
most marketers plan to integrate campaigns across three-to-four channels this year with email serving as the anchor.
All of these findings reinforce the need for organizations to invest in cross-channel marketing platforms, contact data quality
solutions, plus the data and analytics required to understand consumers and execute strategies to successfully engage
with them.
Simply put, to succeed in 2014, marketers must step out of the more traditional role of creative brand masters
and become technologists, data scientists and even change agents. They must sway their organizations to invest in the
tools, technologies and people required to enable intelligent interactions with customers at all points of contact, whatever
the channel.
Michael DeVico
Group President
Experian Marketing Services

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Simply put, to succeed

in 2014, marketers must
step out of the more
traditional role of creative
brand masters and
become technologists,
data scientists and even
change agents. They must
sway their organizations
to invest in the tools,
technologies and people
required to enable
intelligent interactions
with customers at all
points of contact, whatever
the channel.
Michael DeVico

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Experian Marketing Services

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