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1THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Analytical deployment (in marketing):All excuses not to do it are valid …
… but not sufficient
June 11, 2009
3THoM_SPSS_Marketing Crisis_11062009.v3.ppt
1. Getting to the breadth and depth
2. Getting to impact
3. Getting to change
Agenda
4THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Old approach Revolutionary approach
Reliance on survey data
Focus on outcomes of consumer decisions
Measuring marketing effects
Use descriptive models
Focus on short-run profitability
Insights from marketplace data
Examine the process consumers use to make decisions
Optimizing marketing activities
Use models based on behavioral processes
Emphasize drivers of long-term value
Analytical deployment offers a new edge to marketingAn extract
Source: Chicago Booth Magazine, Spring 2009: “A Revolution in Marketing”
5THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Analytical deployment is about enhancing the full organization, not just adding competences
Analytics is a way to do business mainly with your current business model
• It is therefore not just a competence you can centralize or departmentalize (parking)
• But it cuts through silo’s of the organization to deliver (sharing)
Many development frameworks exist to support this deployment, and all aim at
• Supporting a cultural shift
• Aligning management
• Building benefits for all actors
• Locking it in into daily processes
6THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Understanding the depth and impact of analytics usage is key to enhance a company-wide adoption
Source: Jim Davis, SPSS
8 levels or sequences of analytics usage in a company
Standard reports
Querydrill-down or OLAP
Alerts
Statistical analytics
Forecasting
Predictive modeling
Ad-hoc reports
Optimization
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Leadership
Transparency
Infrastructure
Processes
People
Culture
Per level, the readiness on the following 6 ingredients need to be evaluated
Access and reporting Analytics
7THoM_SPSS_Marketing Crisis_11062009.v3.ppt
BI as part of analytical deployment…
Source: Business & Market Intelligence Kinepolis Group, Presentation at The Datamining Garden
Strategic Information Layer
Tactical Information Layer
Operational Information Layer
The dashboard from your BI: recurrent and
fixed
Checking the validity of your dashboard
input: Does this happen ?
Checking the validity of your
business assumptions: Does
this happen?
Reporting
8THoM_SPSS_Marketing Crisis_11062009.v3.ppt
… Reporting versus Analytics: a world of difference
Source: Business & Market Intelligence Kinepolis Group, Presentation at The Datamining Garden; Web Analysis 2009, THoM
Strategic Information Layer
Tactical Information Layer
Operational Information Layer
REPORTING
ANALYSIS
ANALYTICS
The point: If your "analysis" is really reporting, you haven't even begun to leverage the information contained in your data
The point: If your "analysis" is really reporting, you haven't even begun to leverage the information contained in your data
9THoM_SPSS_Marketing Crisis_11062009.v3.ppt
1. Getting to the breadth and depth
2. Getting to impact
3. Getting to change
Agenda
10THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Analytics helps increasing competitiveness and profitability on top of your traditional means
Source: GIA White Paper 2/2008: World Class Market intelligence – From firefighters to futurists; THoM
• Better and faster decisions
• Time and cost savings
• Organizational learning and new ideas
• Top-line and bottom-line mastering
11THoM_SPSS_Marketing Crisis_11062009.v3.ppt
The effect of analytics Benchmarked best practices: extract
The benefits are not increments, but a factorReal life examples
Source: Marketing Analytics to the Rescue: The Next Big Thing? David J. Santoro DM Review Special Report, February 2003
Before applying analytics
After applying analytics
Banner ad click-through rates
Mail response rates
Merchandising response rates
Conversion rates (post-response)
Repeat buyer rates
0.3%
0.5%
0.2%
0.9%
2.0%
21%
18%
12%
10%
60%
Best practice
performance
Performance measure
• X-sell response rates
• Repeat buyer rates
• Referrals
• Direct marketing ROI
Improvement measure (after vs. before)
• Churn reduction
• Increase in per customer profit
20%
60%
20%
12:1
78%
15%
12THoM_SPSS_Marketing Crisis_11062009.v3.ppt
And benefits can be achieved in every marketing domain
What business problems does data mining/analytics solve?You can use data mining to solve almost any business problem that involves data, including:
• Increasing revenues from customers• Improving cross-selling and up-selling• Understanding customer segments and preferences• Identifying profitable customers and acquiring new ones• Retaining customers and increasing loyalty• Increasing ROI and reducing marketing campaign costs• Detecting fraud, waste, and abuse• Determining credit risks• Increasing Web site profitability• Increasing retail store traffic and optimizing layouts for increased sales• Monitoring business performance
Source: SPSS
Data mining solves a common paradox:The more customer data you have, the more difficult and time-
consuming it is to effectively analyze and draw meaning from them
Data mining solves a common paradox:The more customer data you have, the more difficult and time-
consuming it is to effectively analyze and draw meaning from them
13THoM_SPSS_Marketing Crisis_11062009.v3.ppt
1. Getting to the breadth and depth
2. Getting to impact
3. Getting to change
Agenda
14THoM_SPSS_Marketing Crisis_11062009.v3.ppt
“Let’s find out how to get more out of your data and analytics …”
The TOP 10 responses / excuses:
We have lots of data but not a lot of info proportionally
We have lots of reports and analyses already / We have BI (business intelligence) all over the place
We already analyze too much and act not enough (analysis paralysis)
We are already managing our performance quite well
We are improving our operations continuously; what could this bring more ? / Management will not be supportive
No way you can ever have this company increasing analytical intelligence across the board
You can’t really talk with data people
We already have analysts
I’m in B2B, not B2C / I have resellers or partners, not end-customers
We don’t have much or usable data / We wait for our CRM system first
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15THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Analytics
Techniques
Quantitative and multidisciplinary• Statistics• Econometrics• Operational research• Artificial intelligence• Data mining
Modeling capability• Regression, clustering, decision trees, …
Methodology: • Approach• Tactics for issue resolution
Data management on large databases
Database design
IT programming
BI tools• Reporting• Analysis
Business
Communication
Contextual• General business understanding• Particular business need of a specific decision maker
Applicative• Understanding the final use• Knowledge on requirements• Actionability of conclusions• Relevancy of outcome• Urgency/Prioritization of requests• Flexibility
Translating into and talking in the semantics of the decision maker
Highlighting the relevant trade-offs to the users
Convincing on benefits and relieving ‘old’ prejudices of data usage
Committing to business impact
Cross-functional linkages
Minimum 4 competences required to get from data to impact, given a full analytical deployment
Source: The Datamining Garden, presentation of Dr. Martine George, Customer Intelligence ING
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3
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16THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Long chain of functions to get from data to analytical decision making
Data WarehouseManagement
Data
DecisionMaker
DatabaseArchitect
Data Quality Controller
Database/ Delivery Manager
BI/Reporting Analyst
Business Analyst
Intelligence Analyst (data mining)
Business Project Manager
17THoM_SPSS_Marketing Crisis_11062009.v3.ppt 17
+ 32 474 94 60 15
Let’s get started
18THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Analytics: Deploying in crisis times to pick up targeting, behavior change, top- and bottom-line potential
To assist companies in times of economic crisis, THOM offers an analytical assessment (AA) and business action pilot (BAP) designed to be fast, create new value and insights for your company and build the first stone for tremendous competitive benefit and continuous improvement in marketing effectiveness
• Identify quick hits for immediate improvements to your current working of analytics
• Analytical progress map applied to marketing and sales (for short and long term deployment)
• Execution of a pilot and measurement of the analytics benefits
• Insights on how to speed up analytics outside the currently claimed barriers for analysis
• Overview of gaps and opportunities to convince top management of investment into analytics
OUR VALUE PROPOSITION
VALUE AND DELIVERABLES
• During an Analytics Assessment (AA) - A check is performed with your IT and information users on data quality, availability and accessibility for the deployment in sales & marketing: 1-2 weeks
- The base options for analytics and data leverage are listed, discussed and prioritized for sales & marketing: 1-2 weeks
• During a (consecutive) Business Action Pilot(BAP), a single marketing and/or sales action objective is researched and optimized with predictive analytics: min. 3 weeks; implementation pilot comes separately, but support often not required, except for final result measurement
• During a Marketing Analytics Fulfillment Evaluation (MAFE), the functional chain of analytics is screened for gaps and opportunities, communication facilitation tips are given, barriers and missing areas in analytics are revealed, and if possible one action based pilot is set up: min. 3 weeks
IMPACT: • TARGETING: up to 10 times better• CHURN: up to 50% less• COST of initiatives: up to 30% less• SALES efficiency: up to 30% better• X-SELLING: up to 20% more
APPROACH
19THoM_SPSS_Marketing Crisis_11062009.v3.ppt
The House of Marketing is the first Marketing Expertise and Excellence Center
• We support our clients to “Bridge the Marketing Knowing-Doing Gap”, i.e. improving business results by developing and activating strong and effective growth strategies
• By offering the right marketing expertise at the right moment
• With an enduring passion for the marketing profession and for client satisfaction
• Ensuring solutions applied by market facing teams with a common focus on the customer
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20THoM_SPSS_Marketing Crisis_11062009.v3.ppt
A unique combination of strategic excellence and operational pragmatismThe mix of professional profiles makes The House of Marketing unique
Our consultants
• Create relevant insights in the business
• Have proven track record in international strategic advice
• Team up with your “best in class” high potentials
• Identify the true leverages for significant improvements
• Turn opportunities into structured and prioritized business initiatives
20
We help you in materializing ideas into well-considered and successful business initiatives
We help you in materializing ideas into well-considered and successful business initiatives
Our marketing experts
• Demonstrated capacity to make things happen within international and complex companies as well as in local action-driven business units
• Apply practical knowledge of successful corporate sales & marketing organizations
• Turn initiatives into tangible actionplans
• Help you to implement successfully strategic recommendations
Operational pragmatismStrategic excellence
21THoM_SPSS_Marketing Crisis_11062009.v3.ppt
Our expertise is built on 4 pillarsEffectively bridging the Marketing Knowing-Doing Gap
Helping the company make relevant strategic choices
• Market assessment, growth and new product strategy
• Insights in customer perceptions, needs and segmentation
• Branding, positioning, satisfaction research and strategy
• Pricing opportunity assessment and strategy
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Making the positioning tangible: creating marketing value
• Go to market strategies across 4 Ps
• Value based pricing
• Customer experience and customer loyalty
• Integrated 360° marketing communication
Making the strategy work
• Customer Process Management
• Customer relationship management (CRM)
• Marketing & sales organization structure
• Marketing competencies assessment and capability development
Making the strategy profitable: maximizing marketing value
• Customer Life Time Value Management
• Return on Marketing Investments or assets (ROMI/ROMA)
• Performance metrics and marketing dashboards
• Marketing Analytics
I. Strategic Marketing
II. Go-to-Market
III. Organization capabilities
IV. Performance Management