AMA Momentum's How to Act on Data by Michael Morin

Strategizing marketing solutions through measurement

HOW TO ACT ON DATA

BRIAN WIBORG

Vice President of Marketingbwiborg@theroomplace.com

MICHAEL MORIN

Executive Vice Presidentmichaelm@yaffe.com

WHY DATA MATTERS“Many businesses are collecting

data,

but they don’t know what to do with

it,

or if they know what to do with it,

they’re not doing it.” –

Fred Newell

TECHNOLOGY=NEW TOOLS

HOW DATA

Solves marketing problems

Measures success

Determines customer target marketing strategies

Is used to sell furniture

WHAT WE’LL COVER TODAY

ORB-to-

BB-to-

C

SHARE YOUR BEST PRACTICES

Your challenge is to

HOW DATA SOLVES MARKETING PROBLEMS

UNLOCK INSIGHTS

PREDICT CUSTOMER BEHAVIOR

WHEN TO REACH CUSTOMER

SPROVEVALUE

HOW TO REACH CUSTOMER

S

CUSTOMER PREFERENC

ES

PROBLEM:Who is your customer?

•What’s the value?

• Relevant messaging

•Media buys

SOLUTION:Data collection and analysis.

HARDWARE BUYERS FURNITURE BUYERS

Frequent Infrequent

Small purchase Big Ticket

Short Cycle Long Cycle

VS.

The story data tells us about customers:

HARDWARE BUYERS FURNITURE BUYERS

Men 25-54 Women 25-54

Buys 10-12 x per year Buys every 6-8 years

Cash & Carry Delivery & Financing

VS.

The story data tells us about customers:

How data capture and analysis led to a unique marketing program

THE HARDWARE STORY: One to One

Loyalty Card

01201020100120100Cardholder Name

• Here’s a relevant reason to buy

• Thanks for buying – here’s your reward

• We miss you – here’s a reason to buy

How data capture and analysis led to a unique marketing program

THE HARDWARE STORY: One to One

Spring treatment15% OFF!

Seasonal patterns• Spring, summer, fall, winter

• Product category patterns

THE FURNITURE STORY: Speed Up the CycleHow data capture and analysis led to specific marketing targets

SALE!Saturday

ONLY!

THE FURNITURE STORY: Customers buy infrequently

We maintaincommunication

Customer enters purchase cycle(Relocation or renovation)

43%of our business

comes from RETURNING

customers

THE FURNITURE STORY: Customers buy infrequently

38%

That’s grown from

by tactics in the last

5 years

35%of customers return to buy

within a year, so we communicate

frequently

Bounce Back Offers

Email Reminders

6 Holiday Events

WIT

H

THE FURNITURE STORY:Customers buy during holidays…

Get to the top of their consideration list

SALE

THE FURNITURE CHALLENGE: The Other 39 Weeks

PROBLEM:When does customer buy?

• Detectible time period between purchases

• Presence of kids

• Lower and upper socio-economic groups

• Length of residence

SOLUTION:Predictive behavior analysis to identify cycles.

• Low-priced and high-priced homes

• Target prospects through TV

• Email click-thrus and those with homes for sale

PROBLEM:When does your customer buy?

•How are you using modeling?

•What attributes have you found predictable?

SOLUTION:Predictive behavior analysis to identify cycles.

?

PROBLEM:What’s the most effective way to reach customers?

• Ethnic consumer

• Families with kids

• People living in homes recently listed

SOLUTION:Data analysis for each segment to identify medium, message and timing.

SOLUTION:Test/Learn,

Test/Learn, Repeat.

PROBLEM:How do you know

what works?

“BIG DATA”

TIDAL WAVE OF DATA

NSA AS A 

“MODEL?”

SOCIAL MEDIA

LISTENING

PROBLEM:How do you tell if

it’s working?

SOLUTION:ROI. Sales > Clicks

Focus on basics

BEST PRACTICES: Tales from the front

1Set up system to easily track and compare factors like

Sales, response rate,

ROI,

2Measure every

direct marketing

initiative, look at model, look

at offer/promotion

3Continue to improve the

models you're using, determine

outside influencing

factors, integrate digital hand

raisers

5Continue to identify new ways to do things like

data co-ops and tools like

Rentrak

4Continue to test offers

QUESTIONS

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