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Proving and improving the effectiveness of marketing activities
Nigel Keats and Dr Jeremy Buckley
Real Intelligence
The world has changed
Marketing activity and the business environment has become more complex
Greater accountability is required
Your success is also dependent on other functions in your organisation and external factors
Real Intelligence provides just that
Intelligence from measuring the actual performance of all elements of your marketing programme using econometric analysis and modelling
Which elements are really working and how well? What the return on investment is for each element and
overall
Enabling you to make business decisions based on real facts from actual measured performance
Turning your data into dollars
How much of the sales changes are due to price? – yours or competitors
Is that packaging change boosting sales? What would happen if you doubled your advertising
spend? Or halved it? Is your social media activity resulting in sales? Why aren’t you selling as much in some regions or
stores? Which elements of your promotions mix are delivering the
best results? What is the return on investment for individual campaigns
and overall? Where are the weaknesses?
Build accurate test and control groups Create lift curves and model area under curve Measure and model costs to acquire, retain, up-sell and
cross-sell customers Model lifetime value of customers using RFM models Customer segmentation and understanding Measure and model customer churn
Case Study – The Quit Group Charitable Trust with funding by Ministry of Health to
help people quit smoking Offers a comprehensive quit smoking programme
that involves counselling and support by phone, txt and online plus subsidised Nicotine Replacement Therapy
Focus on Māori, Pacific people and pregnant woman Their marketing
To encourage people to register for the programme TV and online advertising with a call to action to
phone or sign-up online 61,000 registrations last year
How to optimise their marketing spend?
Our approach
Created and followed the marketing funnel from addressable audience to registrations via phone or website
Undertook hundreds of econometric analyses of the relationship between factors including TV and online advertising, call centre activity and website visits
Included analyses of price and sales volume changes to the top 100 brands of cigarettes and loose tobacco, influence of other advertising and PR
8
Media spend drives
people to call the call
centre…
Call model based on advertising and other influences
9
Advertising has both animmediate
anddelayedeffect…
Modeled calls with one week lag
10
We were able to…. Measure the contribution advertising makes Measure how much TV advertising drives website responses and online
advertising drives phone responses Identify the incremental costs per phone and online registration from TV
advertising Identify pressure points within the call centre that affected levels of calls
not answered and conversion rates Identify disparity between when TV advertising was running and when
respondents preferred to call Identify the point of diminishing returns with the level of online advertising Identify why not advertising prior to and when the call centre was closed
didn’t slow call volumes Quantify the impact tobacco excise tax increases, other advertising in the
sector and PR had on registrations
…which enabled the client to… have informed discussions with stakeholders over issues over
issues such as organizational performance and funding, impact of cigarette pricing and other parties advertising on registrations
take steps to improve performance of the website, call centre and advertising media buying
improve future monitoring of advertisement and media buying performance
to predict future costs per registration by channel and to make call volume predictions by zone to optimise call centre capacity
About us Marketing and Maths Analysis by many marketers often falls below the
standard of dedicated data analytics professionals Data analysts often fail to understand business and
marketing and therefore what is important to measure Nigel Keats – 25 years experience in marketing and
communications. Former Managing Director of OMD Wellington
Dr Jeremy Buckley. PHD in Mathematics. Fulbright Scholar. Successful entrepreneur
How we work Initial look Ascertain objectives of organisation. Is available data
robust? check data formats, scope bespoke project and report
Project Collect remaining data, formatting, bespoke analyses,
client liaison, form conclusions and recommendations, write presentation(s) and reports, present and discuss. Arrange peer review (if required)
We may use Non-Linear Moving-Average Conditional Heteroskedasticity, the Shapiro Wilk Test and ARIMA Models, but we’ll speak and report in plain English
Real Intelligence empowers your business to re-evaluate strategies and shift resources to the most
effective marketing channels
