How Analytics is Revolutionizing Audience Development

How Analytics Is Revolutionizing Audience Development

© Predictive Marketing 2010 www.predictive-marketing.com 1

Do You Fly by the Seat of Your Pants?

• On July 16, 1999, a terrible tragedy occurred when a pilot crashed while piloting his private plane bound for Martha’s Vineyard

• The NTSB concluded that the cause of death was pilot error due to spatial disorientation during a descent over water at night

• The pilot was not qualified to fly a plane “instruments only”• He flew by the “seat of his pants”….


Would you get on a plane with a pilot who was not trained to fly

“instruments only”?


Do You Run Audience Development by the Seat of Your Pants?

• Are the pilots of your audience development marketing programs trained to use their instruments – analytics?

• If not, your event could be in a Death Spiral, and you may not find out until it’s too late


AUDIENCE DEVELOPMENT: FLY WITH YOUR INSTRUMENTS

ANALYTICS


Fly With Your Instruments: Use AnalyticsInstead of the Death Spiral, you canachieve gains like this:• Increase qualified leads by 35%• Increase total attendance by 40%• Double attendance and

conference revenue in three years


More than Simple Analytics

"Any company can generate simple descriptive statistics about aspects of its business - average revenue per employee, for example, or average order size. But analytics competitors look well beyond basic statistics. These companies use predictive modeling to identify the most profitable customers - plus those with the greatest profit potential and the ones most likely to cancel their accounts...Some companies have built their very businesses on their ability to collect, analyze, and act on data. Every company can learn from what these firms do."

Thomas Davenport Competing on Analytics Harvard Business Review


Predictive Marketing:A Set of Analytic Techniques

• Predictive modeling• CRM• Web analytics• Test and learn from

controlled experiments


Today’s Landscape

• Lots of data available…• Not being leveraged in

events industry…• Providing your event an

opportunity to gain a competitive edge


Analytics: How to Avoid the Death Spiral

• The Value of an Attendee• Closed Loop Marketing• Customer Profiling• Using Predictive Modeling

to Increase ROI

• Email Optimization• Web Site Optimization• Segmenting Your Attendees• Social Media Optimization


What is the Value of an Attendee?

• The net present value of the profit that you will realize on the average new customer over a period of years


Example: The Value of a Conference Attendee

• Fee for conference is $1,000• 30% of attendees return in

following year• 15% of attendees return in

second year• 7.5% of attendees return in

third year


Example: The Value of a Conference Attendee

• The value of a conference attendee is the revenue stream they generate

• Minus cost of acquisition, variable costs, and other costs adjusted for the time value of money


Year 1 Year 2 Year 3 Year 4 TOTAL$1,000 $300 $150 $75 $1,525

Conference Attendee

Example: The Value of an Exhibit Attendee

• Currently have $150,000 in exhibit revenue

• 1,000 expo only attendees• An extra 200 attendees

would generate another $30,000 in exhibit revenue

• No charge for attendees to view exhibits

• 60% retention rate


Example: The Value of an Exhibit Attendee

• The value of an exhibit attendee is the revenue stream they generate

• Minus cost of acquisition, variable costs, and other costs adjusted for the time value of money


Year 1 Year 2 Year 3 Year 4 TOTAL$150 $90 $54 $32 $326

Exhibit Attendee Revenue

So What?• If you know the value of a

customer, you know how much you should be willing to spend to acquire a new customer

• You can make accurate tradeoffs between alternate revenue streams

• Marketing is an investment, not an expense


Example: To Charge or Not to Charge?

• Last year’s results– 1,000 expo attendees– No charge for expo pass– $150,000 in exhibit revenue

• Should you charge $50 for expo pass to create new revenue stream?


The Alternatives• Scenario 1

– Charge $50 for expo pass– No growth in event

• No increase in attendance• No increase in exhibits

– New revenue stream of $50,000 ($50 x 1,000 attendees)

• Scenario 2– Continue free expo pass– Grow audience by 200– Increase exhibits revenue by

$30,000 to a total of $180,000


Decision: Charge $50 for expo pass. Right?

Lifetime Value Analysis Changes Decision

• Need to take all future revenue streams into consideration, not just next year

• $65,280 in current and future exhibit revenue exceeds $50,000 in revenue for charging for expo pass

• Decision: Keep Expo Pass Free!


Year 1 Year 2 Year 3 Year 4 TOTAL1 Attendee $150 $90 $54 $32 $326200 Attendees $30,000 $18,000 $10,800 $6,480 $65,280

Exhibit Attendee Revenue

Some Real World Considerations

• Need to include variable costs, time value of money into calculations

• Your numbers will of course be different• The Bottom Line

– Factoring lifetime value of attendee into decision is of utmost importance


Closed Loop Marketing

• The ability to track, measure, and analyze the results of marketing campaigns from start to finish.


Closed Loop Marketing - Implementation

• Add tracking codes to campaign response mechanisms– Online– Off line

• Track progress via web analytics tool (e.g. Google Analytics, Omniture)

• Integrate with Registration System to track completion of registrations

• Integrate with CRM


Benefits of Closed Loop Marketing• Analysis of previous campaigns can be used within the

campaign planning process to maximize success and avoid previous failures.

• Historic information allows precise campaign targeting.• Can provide ROI measurement of marketing budget and help

in forecasting marketing expenditure based on revenue goals.



Closed-Loop Marketing:A Process of Continuous Improvement

Some Case Studies


Case Study: Customer Profiling

• Profile of attendees at event– 70% are managers– 70% are from small companies– 50% are in technical jobs

…Interesting, but what can you do with this information?


Look a Little Deeper…ATTENDED DIDN'T ATTEND

JOB TITLEManager 70% 60%Staff 30% 40%

COMPANY SIZE1 - 999 70% 55%1,000 or more 30% 45%

JOB FUNCTIONTECHNICAL 50% 70%NON-TECHNICAL 50% 30%

TOTAL 1,000 9,000PROBABILITY OF ATTENDING 10.0% 0%


…And You Can Create a Predictive ModelATTENDED DIDN'T ATTEND LIST A LIST B

JOB TITLEManager 70% 60% 45% 86%Staff 30% 40% 55% 14%

COMPANY SIZE1 - 999 70% 55% 25% 65%1,000 or more 30% 45% 75% 35%

JOB FUNCTIONTECHNICAL 50% 70% 60% 40%NON-TECHNICAL 50% 30% 40% 60%

TOTAL 1,000 9,000 15,000 20,000PROBABILITY OF ATTENDING 10.0% 0% 5.2% 16.2%


…That Can Drive an Entire CampaignATTENDED DIDN'T ATTEND LIST A LIST B PROSPECT BOB PROSPECT MARY

JOB TITLEManager 70% 60% 45% 86% ManagerStaff 30% 40% 55% 14% Staff

COMPANY SIZE1 - 999 70% 55% 25% 65% Small Company1,000 or more 30% 45% 75% 35% Large Company

JOB FUNCTIONTECHNICAL 50% 70% 60% 40% TechnicalNON-TECHNICAL 50% 30% 40% 60% Non-Technical

TOTAL 1,000 9,000 15,000 20,000PROBABILITY OF ATTENDING 10.0% 0% 5.2% 16.2% 21.6% 3.8%


Know Your Customers:The Data That Can Give You The Edge

• Demographic (Bizographic) data– Job title– Job function– Company size– Geographic location, etc.

• Behavioral data– Products purchased– Events attended– Response history to promotions

• Social media data– Mentions– Followers– Activity– Sentiment


Managing a Campaign With Predictive Modeling

• Target those most likely to respond• Reach them with the media that will have the most

impact• Motivate with customized messages• Activate with appropriate offer


Case Study: Conference Program

• Only 1% of attendees at trade show attended conference• Revenue $3,000,000 from conference• Changed campaign based on predictive modeling

– Increased number of conference brochures– Increased frequency– Increased price

• Results: More than tripled conference revenue to over $10,000,000 over six year period



Case Study: Email Optimization

• Email to generate registrations for Green Technology Forum 2010

• Optimize results by testing different elements of email– Subject line– Salutation– Offer– Featured benefit– Call to Action

• Multivariate design used to minimize size of test


Email Optimization: Results


Test Element Test Alternative Change in Response Rate

Subject Line New! Green Technology Forum 2010 Conference Tracks

0.72%

Green Technology Forum 2010 – Available. Scalable. Sustainable.

0.00%

Salutation Dear Colleague 0.00%

Dear (First Name) 0.87%

Dear Mr./Ms. (Last Name) 0.63%

Offer Save $500 0.84%

Save 10% 0.00%

Featured Benefit

Key and emerging technologies: winners and losers

0.17%

Learn about emerging growth markets creating new product opportunities

0.68%

Study of factors that may inhibit growth in global market

0.00%

Call to Action Register Today 0.52%

Register by January 15 0.00%

Email Optimization: Improves Response 4X


Test Element Best Response Worst Response

Subject Line New! Green Technology Forum 2010 Conference Tracks

Green Technology Forum 2010 -Available. Scalable. Sustainable.

Salutation Dear (First Name) Dear Colleague

Offer Save $500 Save 10%

Featured Benefit Learn about emerging growth markets creating new product opportunities

Study of factors that may inhibit growth in global market

Call to Action Register Today Register by January 15

Response Rate 4.83% 1.20%

The best combination is more than 4 times more effective than the worst.

Segmentation Marketing Strategy• Members of segment have common interests and needs• Customize communications

– Message– Offer– Media– Rewards

• Benefits– Lower cost of customer acquisition– Increased retention– Reduce attrition– Increase cross-sales, up-sales, and referrals


Case Study: Market Segmentation• Two events that were previously

separate combined into one after acquisition

– One event– Two tracks

• Little overlap between audiences• Predictive model used to target

prospects most likely to attend each track

• 20% increase in registration rate vs. non-segmented campaign


Case Study: Website Optimization• Problem: only 50% of visitors who

started registration process finished.

• Funnel analysis identified bottlenecks

• Test and learn optimization increased conversion rate to 65%

• Increased attendance 30%, revenue by $150,000


Case Study: Social Media• Test and learn: Monitor activity to

customize messaging• Mine networks to identify and

target opinion leaders• Add social media info about

individuals to customer database• Enhance targeting with predictive

modeling• Increased registrations by 30%


Example: IAEE HQ Twitter Network


Fly With Your Instruments: Use AnalyticsInstead of the Death Spiral, you canachieve gains like this:• Increase qualified leads by 35%• Increase total attendance by 40%• Double attendance and

conference revenue in three years


Robert HodgsonPresident

[email protected]://www.predictive-marketing.com


mailto:[email protected]

http://www.predictive-marketing.com/

How Analytics Is Revolutionizing Audience Development
