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The New ImperativeThe Role of Data and Analytics in B2B Marketing
Andrew HallyVice President, Segment MarketingUnica Corporation
The Strategic Nature of Analytics “Organizations such as Amazon, Harrah’s, Capital One and the Boston Red Sox have dominated their fields by deploying industrial-strength analytics across a wide variety of activities.”
“Organizations are competing on analytics not just because they can – business today is awash in data and data crunchers – but also because they should. At a time when firms in many other industries offer similar products and use comparable technologies, business processes are among the last remaining points of differentiation. And analytics competitors wring every last drop of value from those processes.”
Thomas H. Davenport, “Competing on Analytics,” Harvard Business Review, 1.06
At the other end of the spectrum…
Types of Analytical Tools
Dashboards
Visual display of KPIs that monitor business health
Ad hoc Analysis
Data Mining
Statistically analyze data to
find patterns and relationships
Drill in to reports for more detail
Understand “why”
Spot issues & opportunities
Take action
Predict behavior
Marketing Execution Shift budgets, re-direct resources,
personalize interactions, etc.
Interactively querying data to
understand “why”
Structured Reporting
Regular distribution of
information with infrequent change
to definitions or format
Trends Driving B2B Analytics
• General– Channel evolution– Marketing accountability and spend shift– Maturation of marketing software
• B2B-specific– Maturation of B2B marketing– SaaS/on-demand business model
Barriers to B2B Analytics
• Data, data, data• Buying process differences• Resources• Poor user adoption
x,000,000 x,000Customers
Individual ManyDecision makers
Instantaneous ConsideredDecision
None MultilevelPurchase approval
Retail, dealers Direct, VARsChannels
Low HighCost
ContractualRetail Pricing
One ManyEntities
B2B Isn’t One-Size-Fits-All
B2B Marketer Top Challenges
Source: Forrester’s Q2 2006 B2B Marketing Effectiveness Online Survey
“What are your top five B2B marketing challenges?”
Generating more leads
Improving lead quality
Measuring marketing results
Reaching decision-makers 54%
53%
48%
44%
Understanding prospect behavior 27%
Deepening customer relationships 40%
… …
Measuring Results
Driving Demand
Customer/prospect Insight
Analytics for Top ChallengesReporting Ad hoc
AnalysisData mining Operational
Customer/Prospect Insight
Customer metrics
• Decision-making• Segmentation
• Segmentation• Predictive
Drive Demand
Operational reporting
• Personalization• Interaction
management• Event-driven
marketing
Measure Results
• Response Attribution
• Results reporting
Results analysis
Ad-hoc Analysis
• Understand customers/prospects to:– Make decisions– Segment customers– Identify opportunities– Target programs– Guide product/service development– Improve the customer experience
• Why aren’t we leveraging the opportunity?
AnalyticsTeam
CampaignExecution Team
MarketingManagers
Product Line Mgmt
SegmentManagers
ChannelManagers
SeniorMgmt
Con
sum
ers
Customer Data
Cen
tral
Mar
ketin
g Fu
nctio
ns • Customer insight• Modeling• Reporting• Marketing research
• Consume production reports• Make requests for analysis,
campaigns• Some are occasional direct users
Other Data
Web Data
Other
Typical analytics organization
Product Line Mgmt
SegmentManagers
ChannelManagers
SeniorMgmt
Con
sum
ers
Cen
tral
Mar
ketin
g Fu
nctio
ns AnalyticsTeam
MarketingManagers
Customer Data
• Consume production reports• Make requests for analysis• Some are occasional direct users
SQL
2.Update reports
1.Email request for analysis
3.Or, reply with results
Other Data
Web Data
Typical ad hoc analytics process
Product Line Mgmt
SegmentManagers
ChannelManagers
SeniorMgmt
Con
sum
ers
Cen
tral
Mar
ketin
g Fu
nctio
ns AnalyticsTeam
MarketingManagers
Customer Data
SQL
Other Data
Web Data
• Many questions go unanswered• Waiting on analysis hinders responsiveness• Limited ability to drill, ask follow-ups• Hard to act directly on insights
Time spent on simple queries, not strategic analysis
Ad hoc analytics pain points
Product Line Mgmt
SegmentManagers
ChannelManagers
SeniorMgmt
Con
sum
ers
Cen
tral
Mar
ketin
g Fu
nctio
ns AnalyticsTeam
MarketingManagers
Customer DataOther
DataWeb Data
• Many questions go unanswered• Waiting on analysis hinders responsiveness• Limited ability to drill, ask follow-ups• Hard to act directly on insights
Time spent on simple queries, not strategic analysis
What are the root causes?
SQL
Data: • Dispersed• Too complex for
business user use
Tools:• Too generic, hard to use
for business user use• Require extensive IT sup’t
• Fear and desire• Skills
• Fear
Data Mining in B2B
Segmentation Response Modeling Value Prediction
B2B Adoption of Data MiningUse of data mining/predictive analytics in:
Currently Using
Short- or long-term planningOther
Overall
The tools and proof are there, so why slow adoption? Source: Forrester Q4 ’06 survey
B2B Only
Challenges to B2B Data Mining
• Data complexity, quality and degradation• Complex sales cycle harder to model• Smaller databases • Less campaign replication
Mini Case Study
Data mining objectives• Focus mid-market telesales on the best opportunities• Better target “mom and pop” catalog mailings
Modeling overview• Response modeling for purchase likelihood• Leveraged a new data warehouse• Catalog maillings: seasonal models based on past purchases,
region, etc.• Telesales: key sales indicators plus 33 other customer attributes
Mini Case Study
Sales efficiency
10 - 20%Reduced mail cost
$1 - 2m
Results “Our business has become much more efficient and customer-centric. Costs are down and our customers are experiencing better service. Greg Nathan, Sr. Manager, Database Marketing, Business Sales Group
Execution• Also target based on preferences, recency,
profitability• Process runs “lights out” on a daily basis
Operational Analytics
• “Automated analytics embedded into business processes” – Email personalization– Event-driven targeting– Automated “lead nurturing” campaigns – Real-time interaction management
Mini Case Study: Driving Event Attendance
Personalized Registration
Thank You for Attending
Customer/ProspectMarketing Team
Attend Seminar
Email Invitation
Sales Outreach
Premature B2B Interest?
Automated Lead
Nurturing
Email Personalization
Real-time Interaction
Management
Web Optimization
B2B Readiness
Event-driven Marketing
Why is it so Hard to Measure Results?!?
Forrester Research survey
“How do you measure the results of lead development efforts?”
No reliable means for measuring
Track responses, but can’t connect to sales
Actively working to “close the loop”
Closed-loop process
37%
36%
16%
11%
Measurement Barriers
Source: Unica/AMR Research survey
Key Components of Measurement
Response Attribution Flexible, cross-channel rules automatically link
behavior with marketing drivers
Results ReportingResults and ROI by audience, program, channel, offer, etc.
Metrics• Based on buying process• Sales-marketing alignment• Customer, engagement, business-oriented
DataContact history, response
history, transactional history
What are the Right Metrics?
• Mapped to the buying process• Sales and marketing agreement• Business-oriented• Customer-oriented (long-term)• Engagement-oriented
Response Tracking and Attribution
• Technology can help:– “System of record” tracks all touches– Flexible access to disparate results data– Articulate “rules” for attributing revenue to touches– Automate report generation and sharing effort– Integration with analysis and targeting tools facilitates application
of learnings
Easier Harder
• Individual decision• Quick sales cycle• Few “touches”
• Long sales cycle• Multiple decision-makers• Numerous “touches
Marketing “System of
Record”
Costs
Planning & Design
Offers Campaigns
Cross-channel Execution
Contacts Delivery
Contacts
Match
Results Reporting
Purchases Transactions
Transactions
Closed-loop, test & learn capability
Automating Marketing Measurement
Analysis Results to Apply Learnings
Mini Case Study: CitrixOnline
Registration
Pay-per-click
Online Ads
Site Banner
Direct Mail
PromotionCitrix iForum Conference
Early Bird Ends
.com BannerSEM, Online AdsDirect Mail
• Lead demographics by industry• Indirect “lift” by day
Evaluating Offline Ad Campaign Effectiveness
Lead form
