Future of Demand 2019 & Beyond

THE FUTURE OF
DEMAND2 0 1 9 - 2 0 2 5 & B E Y O N D

Mathew Sweezey
Principal of Marketing Insights
Salesforce
Author of
• Marketing Automation for Dummies
(2013)
• Context Revolution –Harvard
Business Press (2019)
@msweezey
YOU CAN GO AHEAD AND GET THE SLIDES BY
GOOGLING @MSWEEZEY

The future is already here it
just isn’t equally distributed.
William Gibson, Author & Futurist
@msweezey

DEMAND IS RESPONSIVE
TO A NEW CONSUMER
T H E N E W C O N S U M E R M A N D A T E
@msweezey

80%
@msweezey
Of customers say the
experience a company
provides is as important
as its products and
services.
Source: State of the Connected Customer 2018

@msweezey
B2B B2C
Technology has made it easier than ever to take my
business elsewhere
82% 70%
Technology is redefining my behavior as a consumer 76% 61%
Technology has significantly changed my expectations
of how companies should interact with me
77% 58%
Expect the brands they purchase from to respond and
interact with them in real time
80% 64%
B2B Buyers Are
More Affected

12%There is only a 12% delta
between the preferences of
millennials and baby boomers.
So if 100% of millennials do
something, it’s safe to say 88%
of boomers do too.

CONTEXT BREAKS
THROUGH
T H E R E I S A N E W M O D U S O P E R A N D I
@msweezey

600+ million devices have ad-blocking
on them. This is easily the largest
boycott in history.
@msweezey
““
Doc Searls, Author & Harvard Fellow

Attention: seeks to break through by stealing
the consumers attention away from the task at
hand.
Context: seeks to break through by aligning
with the consumers goal at the moment.
@msweezey

The consumer is no
longer in control…their
AI is!
@msweezey

@ m s w e e z e y
@msweezey
90%+ of customer
journeys begin with
a Google Search.
Google is one of the
largest
implementations of
AI currently. It only
serves up contextual
results.
Brands plan to
increase their
use of AI on
websites by
257% in 2019
Chatbots are
also taking hold
adding even
more AI to the
moment.
Email inboxes
use AI to filter
communications
and keep spam
out of your
inbox.
Brands also
leverage AI to
create bespoke
emails now.
Every social media
feed is AI driven only
showing contextual
experiences.
Messaging bots are
now functioning as
websites for many
brands.
Search Web Email Social
THE POST AI CONSUMER

BY 2025 95% OF ALL
CONSUMER
INTERACTIONS
The AI is attuned to the context of the
moment, and creating the best
experience for the consumer.
Source: FORBES 10 Customer Experience Implementations Of Artificial
Intelligence
@msweezey

Attention seeking messages are filtered out
by AI, because consumers don’t want them.
Only contextual experiences are let through.
Breaking through is now accomplished
by creating contextual experiences.
@msweezey

DEMAND BECOMES A
FUNCTION OF EXPERIENCE
@msweezey
E X P E R I E N E I S T H E N E W P R O D U C T W E A R E S E L L I N G

The amount of want the marketplace has for your
product. Typically measured by number of net new
sales, or interest in your brand.
@ m s w e e z e y
OLD DEFINITION OF DEMAND:
@msweezey

The amount of total revenue marketing is able to
drive. It is now a measure of both net new sales,
but also reduced churn, and increased LCV.
@ m s w e e z e y
NEW DEFINITION OF DEMAND:
@msweezey

Source: Salesforce State of Marketing 2017
High performers were 17X more
likely to be considered excellent at
collaboration across the entire
customer lifecycle
17X
HIGH PERFORMERS COLLABORATE
ACROSS THE BUSINESS
BETTER AT
COLLABORATING
ACROSS THE BUSINESS
@msweezey

High-performing marketers are 1.5x
more likely than underperformers to
collaborate with sales teams on ABM
programs.
Marketing + Sales
@msweezey

Currently only 1/3 of marketing teams
suppress messages to customers with
open service issues
By 2025 it is estimated that 2/3 of brands
will have a fully integrated marketing and
service team with common metrics, goals,
and programs.
Marketing + Service
@msweezey

Marketing + Support
opens the doors to
new ideas like
Trailhead.
Customers who join the
educational platform spend
2X as much as stay a
customer 4X as long.
@msweezey

@ m s w e e z e y
When the idea of demand shifts from only
considering net new, to a new idea of
creating better experiences across the
customer life cycle dramatically better
revenue outcomes happen.
Total Demand is increased.
@msweezey

A NEW ROLE AND SCOPE
NEEDS A NEW LEADER
@msweezey
T H E C M O I S N ” T G O I N G T O B E T H E L E A D I N T H E F U T U R E

“The CXO position can be imagined by rolling up a Chief
Revenue Officer and Chief Customer Officer into one
position. This executive should have total responsibility for
developing all revenue- and profit-generating experiences
offered to paying customers.”
-Joe Pine & Steve Gilmore – Experience Economy (HBR 2015)
@ m s w e e z e y
Leading The New Marketing Team
@msweezey

CXO’s HAVE ALREADY
TAKEN OVER AT LEADING BRANDS
M E D I A B 2 B R E T A I L O T H E R
@msweezey

AUTOMATIONS GET THEIR
OWN AUTOMATIONS
M A R K E T I N G A U T O M A T I O N 2 . 0 T A K E S H O L D

Centralized Automation
Takes place with in the walls of the tool. It ingests the
data, hosts the automation, and executes the action.

The automation tool does not host the data, or the
execution. Rather is only used to make connections
between dispersant applications and data sets.
De-Centralized Automation

DATA GETS BIGGER
AND MORE COMPLEX
M O R E D A T A N O T B I G D A T A I S Y O U R F U T U R E

45DATA SOURCES
BY 2025
THE FUTURE IS
MORE DATA
Brands plan to be using 15 data
sources on average in 2019.
At current growth rates it is easy to
see the average brand using close
to 45 data sources by 2025.
@msweezey

With 15 data sources, and
dozens of tools marketers
will be facing an
IDENTITY CRISIS.
Not their own, rather keeping up with a
single individual across the tools,
channels, and data sets.
@msweezey

Benchmarking Data
Which tools are being used by high performers to connect their
data, and at what rate is the industry adopting these
technologies?
Technology
Current
Use
Planed Use
Increase
YoY
UP AP HP
CRM 62% 32% +52% 59% 61% 71%
CDP 49% 39% +79% 34% 49% 62%
MAP 44% 42% +95% 29% 44% 57%
DMP 55% 35% +64% 46% 54% 66%
@msweezey

Marketing
Automation
DMP CDP CRM
Internally Focused – tracks a
persons engagement with
marketing assets. Website,
email, social.
BOTH- tracks 2nd and 3rd party
data providing more color
into website visitors.
Connects users across
browsers.
Internally focused – a
marketer-managed system
that creates a persistent,
unified customer database
that is accessible to other
systems.
Internally Focused – keeps track
of your leads, prospects,
customers and manages your
relationship with them.
Combines data with a layer
of automation to create real
time direct marketing and
sales programs.
Used to direct advertising
programs, show larger
trends. No PII is shared.
Used to direct marketing
programs and show full
customer journey. Knows the
person via PII.
Used to direct business
operations. The person is
known via PII.
Only tracks known assets Tracks both known and
unknown
Tracks both known and
unknown
Can only track Known assets
Defined Data types – must
have email address, name,
and cookie
Undefined data types – able
to handle unstructured data
and use machine learning to
connect it together
Undefined data types – able
to handle unstructured data
and use machine learning to
connect it together
Defined Data types – must have
email address, name, and
cookie

ARTIFICIAL INTELEGENCE
COMES STANDARD
A I H A S A M A T U R I T Y C U R V E A N D W E A R E A T T H E B E G I N N I N G

If Data is the Oil, then AI is
the refinery.
“
”@msweezey

HIGH PERFOMERS
LEVERAGE AI MORE
@msweezey
Total use of AI reached 29%,
a 40% increase from 2017.
Still that is not evenly
distributed as High Performers
are 2.7X more likely to use AI.
40%YOY Growth in use of
AI by all marketers

• One Off Tools
• Large investment
• Solving Big Problems
• Usage Low
• Add on to Existing Tools
• Easily added on to
existing products
• Significant Returns
• Used to solve tactical
problems
• Adopted by 30%
• Baked In To All Solutions
• AI fades into the
background
• Becomes digital assistant
• Brands can’t compete
with out it
EARLY
STAGE
CURRENT
STAGE
FUTURE
STAGE
ARTIFICIAL INTELLIGENCE MATURITY
PATH
2012
2019
2025

The marketing tools of the
future will uncover issues and
fix them for you. You’ll be
managing the tool, but the AI
will be directing you as to what
to do, and where to work.
@ m s w e e z e y
IN THE FUTURE AI WILL ENABLE
TOOLS TO WORK FOR YOU
@msweezey

Email #4 is performing
low today, it appears
there is a broken link.
Click YES to shift ad
spend to new audience
segment, expected
increase 15%
In The Future Bots Will
Empower Marketers
Elevating Issues You Didn’t Know Existed
@msweezey

AI Improved Journey Management

FORMS WILL BECOME A
THING OF THE PAST
A N D F O R G O O D R E A S O N

Forms serve the purpose
of the brand. Not the
consumer. They are not a
good experience.
@msweezey

DATA + C H AT B O T
#1 sources of qualified opportunities for
Segment.io.
5X Increase in engagement
2X Increase in conversations
@msweezey

VOICE WILL IMPACT
BUSINESS BUYERS TOO
C O N S U M E R T R E N D S A F F E C T B U S I N E S S B U Y E R S

38% of all shoppers have
used voice for purchasing,
searching, or checking prices
in the past three months
@msweezey

72%OF CONSUMERS
USING VOICE
DO SO DAILY
VOICE
BECOMES
DAILY HABIT
THIS TREND WILL ONLY
INCREASE IN THE
FUTURE
Source: Google Think
@msweezey

ALEXA
SKILLS
@msweezey
50,000 Alexa skills worldwide.
Both sources also reported that
Alexa is now compatible with
20,000 devices and is used by
more than 3,500 brands

BY 2025 1/8
OF ALL PEOPLE
on the planet will be using a
Virtual Digital Assistant

With the rise of voice, AI,
and chatbots WEBSITES
AS WE KNOW THEM
WILL BE GONE IN FIVE
YEARS. They will be replaced
with conversational interfaces
like this one.
@msweezey

A NEW APEX FOR
DIRECT MARKETING
H U M A N _ - t o – H U M A N

One-to-One: is one brand message
to one person.
Human-to-Human: is one person
to another on the brands behalf.
@msweezey

Cisco found 135 employees have
the same social power as a brand
with 1,000,000 social followers.
Your employees, customers, and advocates are the ground
work for direct marketing efforts of the future.
@msweezey

The average B2B business has 50,000
followers on social. To reach this
same power you only need 5 people
engaging in human-to-human ways.
@ m s w e e z e y
@msweezey

• EXPECT TO DRIVE $100 MILLION IN SALES VIA THIS
PROGRAM
• ONE GEARHEAD CAN MANAGE 10,000 RELATIONSHIP
WITH CUSTOMERS IF THEY HAVE THE TECHNOLOGY
• INCREASED THE LIFETIME VALUE OF THOSE
CUSTOMERS 40% OVER THOSE NOT ENGAGED WITH
THE PROGRAM, AND IT HAS INCREASED ORDERING
BEHAVIOR BY 105%.
• MY GEARHEAD IS WELSEY!
@msweezey

THE FASTER FISH
CREATES GREATER
DEMAND
@msweezey
T H E F U T U R E I S A L S O A B O U T
T H E W A Y W E W O R K

@msweezey
In the new world, it is not the
big fish which eats the small
fish, it’s the fast fish which
eats the slow fish.
- Klaus Schwab, Founder and Executive Chairman of the
World Economic Forum
“
“

10X
MORE LIKELY TO USE
AGILE METHODS
HIGH PERFORMERS
USE AGILE METHODS
High performers just don’t use new
tactics, they build and operate in a
different way. They are able to do
more, with less effort, and obtain
higher results via agile.
@msweezey

Agile is the modern
production method.
@ m s w e e z e y
@msweezey
““

User
Stories
Optimized
Outcomes
IterationTest Iteration
Review Review
The Agile Process
@msweezey

Disposition
Effective User Stories Contain
Intention:
Action
What is the persons intention at that point in time..
Example: What was your initial intention behind your search for a
solution in this category?
Helps you uncover the emotions related to to each
stage, such as anxiety or excitement.
Example: Have you bought anything in this category before? How
prepared did you feel in your search?
What emotion best describes your feelings at this stage?
What did the person do at that moment.
Example: What questions did you ask? Where? Were you able to
find what you were looking for?
@msweezey

John,
I noticed an article on Content experience,
and thought you might like to give it a look.
John,
There is a video in our resource library on
Lead nurturing best practices, here’s a link to it.
It was recorded with Jay Baer.
John,
I’m not sure if you follow this guy on social. But
If you’re on Twitter you might want to
check out @jaybaer. We’ve just shot a webinar..
AGILE TEST
@msweezey

REVIEW
1. WHAT WERE YOU LOOKING FOR?
2. DID IT MEET YOUR EXPECTATIONS?
3. HAVE YOU FOUND BETTER?
@msweezey

THIS ALL COSTS
A LOT MORE MONEY
D E M A N D G E N E R A T I O N W I L L C O S T M O R E
@msweezey

MAINTAIN
BRANDING
15% HEADCOUNT
80% PROGRAMS
5 % TECH + OTHER
2-6% GR
AVERAGE
BUDGET
FAST
GROWTH
25% HEADCOUNT
65% PROGRAMS
10% TECH + OTHER
7-12% GR
30% HEADCOUNT
55% PROGRAMS
15% TECH + OTHER
13-30% PR
*GROSS REVENUE *GROSS REVENUE *PROJECTED REVENUE
@msweezey

5 PIECES OF CONTENT TO PUT
ON YOUR BOSSES DESK
STRETCH BUDGET BASICS
1. NEGOTIATE UP FRONT– Stretch budgets are
negotiated up front, just like a line of credit.
2. DOUBLE DOWN – They allow you to double down on
great ideas, proving out new tactics and channels.
3. INSTANTLY ACCESSIBLE – You have instant
access to them because they were pre-negotiated.
@msweezey

EXPERIENCE
@msweezey
MATTERS
FOR ALL
BUYERS

@msweezey
MORE INPUTS
MORE BOTS
LESS FRICTION
REAL TIME

CONTEXT
@msweezey
IS THE KEY
TO BREAK
THROUGH

MARKETING
@msweezey
MUST OWN THE
FULL EXPERIENCE

REVENUE
@msweezey
IS INCREASED
BY MORE THAN
NET NEW

@msweezey
MORE DATA
MORE TOOLS
MORE HUMAN
MORE BUDGET

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