merkle final w speaker notes

The Engagement Imperative - Back to the Future

Rand Schulman – Merkle Presentation

2

Engagement in Social / Mobile APPS

“McKinsey Global Institute analyzed the potential value that could be obtained through the use of social media technologies is $900 billion to $1.3 trillion annually”.*

Building In APP user engagement is a key component in the Social Value Chain

Social/Mobile Gaming is making way for Enterprise Gamification of Social/Mobile APPs

LTV (engagement over time) is now critical to Digital Marketing – it doesn’t stop with the site visit or the one site/channel

Back to the Future

HBR Blog August 2012 -

3

It was so easy -during FB Gold Rush…

4

www.viralheat.com

…and A Great Start!

5

THINK DIFFERENT.ly

66

APPS SAPPS MAPPS

Shattering the website-centricengagement paradigm

And the new world of…

7

Why Now? New Breakthroughs Create New Challenges – Analytics Critical

Technology enablers – Big Data / Cloud / CPU / Bandwidth advancements - real-time empirical data

Converged Workflow People - Digital Marketing - becoming more like Direct Marketing creating a new role definition for the “Marketer”

Gamers taught us that APP Engagement is Key –– Law of Large numbers means / rapid A/B/M testing – Optimization – Greater engagement / greater conversion to intent

8

Viral Adoption -The Engagement Imperative

99

“We’re an analytics company masquerading as a games company.”

Ken Rudin Vice President, Analytics & Platform Services

Source: WSJ

10

What is Gamification?

Gamification is about taking the essence of games—fun, play, transparency, design and challenge—and applying it to real-world objectives rather than pure entertainment.

11

Growth of Social Gamification in the Enterprise

70% of Global 2000 will utilize one gamified application by 2014*

25% of online Business Process will be redesigned by 2015 with Gamification in mind*

There will be $2.8 billion in revenue growth by 2016* due APPs

Wide Range of tactics to modify user behavior - from Badging, Missions, and Leaderboards and to Levels

– * Deloitte Review The Engagement Economy 2012, Gartner

12

www.kontagent.com

Greater APP Engagement - 183% Increase in ARPU* in less than Two Months for Gaia**

How effective are my ads in reach?

What is the quality & age of users from different countries?

What is my campaign performance by partner and country tier?

How are my users performing APP post install?

*Average revenue per user

** 1 million post per day, 7 million Unique per mo, 26 million reg. users

13

Using Kontagent - Optimizing for Viral Adoption and ARPU…

Targeting based on cohort analysis and segmentation

14

…and LTV

5x increase in retention

15

Speed A/B Testing (hours not days)

Dramatic increase in valuable users into the game ecosystem via large scale A/B Testing of ads

16

Beyond Gamers – Enterprise Gamification Examples … a Start

Consumer – Verizon seeing increase of 30% time on site time (goal increase revenue, decrease

cost)– San Diego Power and Gas and OpsPower (decrease cost)– Samsung – Increase of 200% per month site user engagement (reviews/revenue)

Content & Media companies have seen 30-40%* increase in Reader interactions (goal - increase revenue)

– USA Networks 130% increase Page Views 40% Return Visitors

Health care – Aetna / Kaiser seeing 50%* increase in “healthy actions” (goal – decrease in cost)

• * Deloitte Review The Engagement Economy 2012

17

Measure LTV

Measure viral factor and channel attribution

And conversion to intent

Test and Optimize

Omni Channel Metrics - The ROI of SAPPS and MAPPS

18

How do I Get Started?

The cost to build a social app is low

Any company can get something up and running!

Cost Time

In-House $68,000 30 Days

Agency $92,000 14 Days

Vendor/Pre-Fab $44,000 8 Days

www.involver.com www.buddymedia.com

19

In Summary: What Should You Do Now?

Maintain Authenticity– mesh behavioral science with social technologies to increase the interaction and engagement with

audiences. People like to be Mayor!

Collect/Track Behavioral data

Measure Results and Optimize process– not enough to just capture data; you need to be prepared for meaningful analysis of the results. Return

on investment assumptions should be thought of beyond simple project dollars spent. Develop formulas to measure the long-term value of more engaged or loyal customers across new channels – MAPPS, SAPPS and APPS

What – Create New Content on a regular basis– Inbound marketing

Who/How? The New Marketer as The Content Engineer– a multi-disciplinary team that includes business-line strategists and managers, along with social

scientists, marketers, game designers, programmers and those with data analytics expertise

Thank you

www.schulmanthorogood.com