BIG DATA AND PREDICTIVE MARKETING
BIG DATA AND PREDICTIVE MARKETING BUD KEEGAN EXECUTIVE SUMMARY: ∙ How big data is applied to realworld marketing decisions through media attribution ∙ The rise of multitouch marketing and the three approaches it can take to facilitate purchases
BANG FOR BUCK Media attribution John Wanamaker pioneer in the development of the first department store not just as a place to buy things, but as a shopping experience. ● ●
Used mass media newspapers and radio to market his venue Was the first to introduce the price tag
“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half” It’s difficult to judge if a campaign is having an impact in real time and often frustrating for marketers to seek thru data and determine impact. ● ● ●
Rearview mirror strategy judge what was good or bad after a campaign Wrong corelations what is considered a commercial success goes unnoticed Branding effect at least a lot of consumers saw a message, even if sales did not rise
With big data we can start predicting marketing i.e. if we can sell more if we advertise in the morning, it would give us good insight as to how to focus marketing dollars ● ●
Impact and use of messages in different mediums and how effective they are Change things that are not effective and fund more the things that are effective
Media attribution is a process by which we analyze the different workings of different aspects of media channels and the pieces of our “marketing toolbox” and how it is utilised. ● ● ●
Giving credit where credit is due. Looking at media choices available, it is deciding which channel money should go into (or how many). A regular analysis of how much value media is producing
TECHNIQUES TO ENTICE The marketer’s media toolkit Each of the tools we can find in the marketing toolkit can perform various functions, but cannot do the job
of all the others combinations are necessary. ●
Direct marketing at first seemed like the most accountable, but as it was used more, it lost a lot of its impact ○ Direct mail and telemarketing ○ EDM (electronic direct mail) newsletters or coupons
●
Display/online displayed on larger news sites or on very niche, directed sites, often used to facilitate crossplatform activity ○ Before between a seller (a website or network of websites) and a buyer (working at an agency or brand), ○ Now DSP (demandside platform), or an “Ebay actionbased model” for purchasing online advertising, instant matching of buyers with sellers thanks to preentered expectation values
●
Offline media/assets often combined with online advertising to boost marketing and results ○ Television driver for offline media ○ Radio, newspaper
●
Search almost half of online advertising is directed towards paid search. ○ Organic results that show up and reflect our brand when anyone searches our brand in a search engine ○ Paid include elements such as AdWords, positioned around the organic search results
●
Brand if we build it up, equity is at our disposal. EXAMPLE: Coca Cola (94% global recognition, they have a huge brand equity power, worth 70 billion dollars, not taking into account) ○ Signage ○ Customer service ○ Sales staff ○ Buildings we are housed in
THE LONG AND WINDING PATHWAY TO PURCHASE The importance of multi-touch marketing A pathway to purchase stretches from the consumer gaining awareness of a brand to making the sale the first encounter is to be shepherded to buying. ●
Awareness, consideration, evaluation, final purchase
Currenlty most marketers focus on the lifetime value of a customer, not just one sale (chances are, a satisfied customer will come back). Multitouch marketing reaching consumers in a variety of ways at certain points on the pahtway to purchase lets us touch the consumer with a certain type of message Digital channels how to have na integrated approach to all the different channels that now follow the consumer and how to use them (making a commercial for the TV, computer and mobile device in an integrated way working well in each channel) ●
Analyse reach and engagement on the way in the past we couldn’t do this but now it can help
be more flexible in marketing campaigns Using realtime data makes marketing more accountable and flexible, and lets us get more value for our money from a campaign.
MEET THE MARKETING TEAM Three key players How to use marketing assets to approach consumers on their pathway to purchase and the tone and approach we want to take: Think about marketing assets as players on a football team. Pitch = pathway to purchase, ●
●
●
Introducer tries to introduce our brand to the consumer ○ Start a quick, powerful conversation that leaves a memory ○ Mass media with a memorable image or jingle Influencer build on the created lead and momentum ○ Consumers recognise what the brand is, but doesn’t quite know what it’s about ○ Specifications, product features, more of a commentary ○ Longform journalism, long print ad with more copy, whitepapers or product spec sheets Closer moves the sale over the line by emphasising positive aspects of the product ○ From the introducer basing on the positive image of the brand ○ From the influencer adding info on features and benefits ○ Search ads (keyword buys, paid search)
We have to find consumers in different marketplaces and use different methods of marketing our content to make most effective sales.
THE LAST CLICK MYTH Three key players The lastclick myth claims the last click a customer makes on an offer is the one that closes the sale. Example: Summer vacation 1. 2. 3. 4. 5. 6.
Signing up for an email newsletter because you might be interested intraveling Seeing banner ads on websites about the product or service Researching prices and offers, and moving down the path of the purchase funnel Banner ads for airlines and trips (...) Purchase
Believing in the lastclick myth = only funding the email newsletter or the original banner ad instead of all the elements that shepherd the customer on the path to purchase.
CLOSING THE LOOP Tying marketing to data enrichment CASE STUDY: Chickfila use media attribution do determine which marketing assets are producing the biggest results Direct mail campaign a very powerful tool that, when used well, can have a huge impact on consumers ● Including a personalised URL and an offer to get a free chicken sandwich all you have to do is go to the URL specified in the newsletter ● Asking the consumer to unlock their free chicken offer, and urging consumers to promote the offer to family and friends to win 1 year of free chicken Results: * more customers, * more prospects, * database/ customers and prospects, * brand awareness, * social engagement
KNOW YOUR CUSTOMER Tactical data collection Chickfila engaged with an individual, but also pushed the individual to engage with their family and friends and amplify the message bringing more customers and prospect customers. (1) Social media profiles when we join a brand’s fanpage, we are creating an extension of their customer database. ● ●
Ask customers to join a brand’s fanpage/group before they make a purchase Ask for contact data after a purchase to increase loyalty and open up for makreting offers
(2) PURLs personalised URLs ignite customer activity by giving individualised doorways into a brand that would not be otherwise accessible to them ●
Personalised reminders for previous obligations
● ●
Special promotions (like Chickfila) Personalised reminders for future purchases (like car maintenance)
A lot of data is captured using PURLs and it is a good way to join offline activity (purcahses) and online activity (response rates). (3) Surveys let brands know how the consumer sees the brand and product they purchased ● ●
Often contain freebies or promotions as rewards for people Connects online activity with an offline purchase
OPTIMISING DATA COLLECTION Case study: Beaurepaires A tire retailer was seeking to properly apply media attribution and make sure the dollars they were spending were having a real impact on their customers They had difficulty determining where their leads where coming from ● ●
Search and display advertising online Direct visit to their own websites (desktop + mobile)
With different channels and platforms they tracked, they teamed up with Google and started to apply media attribution where they should be putting their resources against the channels that produced most sales leads. “We wanted to optimise and analyse the data we were getting in to fully understand where the data were being generated through digital channels” marketing manager
Focus: are more leads coming in from paid search or free search? Half of their leads were coming in from a paid search campaign 1. Find a way to further increase paid search activity 2. Rebudget their marketing campaign to feature more funds and promotional activity for paid search queries 3. Troubleshoot the other elements and why they do not bring such great results 4. Redirect other media sources to better find their websites and offers This is a fairly narrow case study as it focuses only on online search activity, but this tactic can be used on a broader concept to see how various channels are actually performing, and analysing big data can help to find which part of advertising is actually useful and which is wasted.
BANG FOR BUCK Media attribution John Wanamaker pioneer in the development of the first department store not just as a place to buy things, but as a shopping experience. ● ●
Used mass media newspapers and radio to market his venue Was the first to introduce the price tag
“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half” It’s difficult to judge if a campaign is having an impact in real time and often frustrating for marketers to seek thru data and determine impact. ● ● ●
Rearview mirror strategy judge what was good or bad after a campaign Wrong corelations what is considered a commercial success goes unnoticed Branding effect at least a lot of consumers saw a message, even if sales did not rise
With big data we can start predicting marketing i.e. if we can sell more if we advertise in the morning, it would give us good insight as to how to focus marketing dollars ● ●
Impact and use of messages in different mediums and how effective they are Change things that are not effective and fund more the things that are effective
Media attribution is a process by which we analyze the different workings of different aspects of media channels and the pieces of our “marketing toolbox” and how it is utilised. ● ● ●
Giving credit where credit is due. Looking at media choices available, it is deciding which channel money should go into (or how many). A regular analysis of how much value media is producing
TECHNIQUES TO ENTICE The marketer’s media toolkit Each of the tools we can find in the marketing toolkit can perform various functions, but cannot do the job
of all the others combinations are necessary. ●
Direct marketing at first seemed like the most accountable, but as it was used more, it lost a lot of its impact ○ Direct mail and telemarketing ○ EDM (electronic direct mail) newsletters or coupons
●
Display/online displayed on larger news sites or on very niche, directed sites, often used to facilitate crossplatform activity ○ Before between a seller (a website or network of websites) and a buyer (working at an agency or brand), ○ Now DSP (demandside platform), or an “Ebay actionbased model” for purchasing online advertising, instant matching of buyers with sellers thanks to preentered expectation values
●
Offline media/assets often combined with online advertising to boost marketing and results ○ Television driver for offline media ○ Radio, newspaper
●
Search almost half of online advertising is directed towards paid search. ○ Organic results that show up and reflect our brand when anyone searches our brand in a search engine ○ Paid include elements such as AdWords, positioned around the organic search results
●
Brand if we build it up, equity is at our disposal. EXAMPLE: Coca Cola (94% global recognition, they have a huge brand equity power, worth 70 billion dollars, not taking into account) ○ Signage ○ Customer service ○ Sales staff ○ Buildings we are housed in
THE LONG AND WINDING PATHWAY TO PURCHASE The importance of multi-touch marketing A pathway to purchase stretches from the consumer gaining awareness of a brand to making the sale the first encounter is to be shepherded to buying. ●
Awareness, consideration, evaluation, final purchase
Currenlty most marketers focus on the lifetime value of a customer, not just one sale (chances are, a satisfied customer will come back). Multitouch marketing reaching consumers in a variety of ways at certain points on the pahtway to purchase lets us touch the consumer with a certain type of message Digital channels how to have na integrated approach to all the different channels that now follow the consumer and how to use them (making a commercial for the TV, computer and mobile device in an integrated way working well in each channel) ●
Analyse reach and engagement on the way in the past we couldn’t do this but now it can help
be more flexible in marketing campaigns Using realtime data makes marketing more accountable and flexible, and lets us get more value for our money from a campaign.
MEET THE MARKETING TEAM Three key players How to use marketing assets to approach consumers on their pathway to purchase and the tone and approach we want to take: Think about marketing assets as players on a football team. Pitch = pathway to purchase, ●
●
●
Introducer tries to introduce our brand to the consumer ○ Start a quick, powerful conversation that leaves a memory ○ Mass media with a memorable image or jingle Influencer build on the created lead and momentum ○ Consumers recognise what the brand is, but doesn’t quite know what it’s about ○ Specifications, product features, more of a commentary ○ Longform journalism, long print ad with more copy, whitepapers or product spec sheets Closer moves the sale over the line by emphasising positive aspects of the product ○ From the introducer basing on the positive image of the brand ○ From the influencer adding info on features and benefits ○ Search ads (keyword buys, paid search)
We have to find consumers in different marketplaces and use different methods of marketing our content to make most effective sales.
THE LAST CLICK MYTH Three key players The lastclick myth claims the last click a customer makes on an offer is the one that closes the sale. Example: Summer vacation 1. 2. 3. 4. 5. 6.
Signing up for an email newsletter because you might be interested intraveling Seeing banner ads on websites about the product or service Researching prices and offers, and moving down the path of the purchase funnel Banner ads for airlines and trips (...) Purchase
Believing in the lastclick myth = only funding the email newsletter or the original banner ad instead of all the elements that shepherd the customer on the path to purchase.
CLOSING THE LOOP Tying marketing to data enrichment CASE STUDY: Chickfila use media attribution do determine which marketing assets are producing the biggest results Direct mail campaign a very powerful tool that, when used well, can have a huge impact on consumers ● Including a personalised URL and an offer to get a free chicken sandwich all you have to do is go to the URL specified in the newsletter ● Asking the consumer to unlock their free chicken offer, and urging consumers to promote the offer to family and friends to win 1 year of free chicken Results: * more customers, * more prospects, * database/ customers and prospects, * brand awareness, * social engagement
KNOW YOUR CUSTOMER Tactical data collection Chickfila engaged with an individual, but also pushed the individual to engage with their family and friends and amplify the message bringing more customers and prospect customers. (1) Social media profiles when we join a brand’s fanpage, we are creating an extension of their customer database. ● ●
Ask customers to join a brand’s fanpage/group before they make a purchase Ask for contact data after a purchase to increase loyalty and open up for makreting offers
(2) PURLs personalised URLs ignite customer activity by giving individualised doorways into a brand that would not be otherwise accessible to them ●
Personalised reminders for previous obligations
● ●
Special promotions (like Chickfila) Personalised reminders for future purchases (like car maintenance)
A lot of data is captured using PURLs and it is a good way to join offline activity (purcahses) and online activity (response rates). (3) Surveys let brands know how the consumer sees the brand and product they purchased ● ●
Often contain freebies or promotions as rewards for people Connects online activity with an offline purchase
OPTIMISING DATA COLLECTION Case study: Beaurepaires A tire retailer was seeking to properly apply media attribution and make sure the dollars they were spending were having a real impact on their customers They had difficulty determining where their leads where coming from ● ●
Search and display advertising online Direct visit to their own websites (desktop + mobile)
With different channels and platforms they tracked, they teamed up with Google and started to apply media attribution where they should be putting their resources against the channels that produced most sales leads. “We wanted to optimise and analyse the data we were getting in to fully understand where the data were being generated through digital channels” marketing manager
Focus: are more leads coming in from paid search or free search? Half of their leads were coming in from a paid search campaign 1. Find a way to further increase paid search activity 2. Rebudget their marketing campaign to feature more funds and promotional activity for paid search queries 3. Troubleshoot the other elements and why they do not bring such great results 4. Redirect other media sources to better find their websites and offers This is a fairly narrow case study as it focuses only on online search activity, but this tactic can be used on a broader concept to see how various channels are actually performing, and analysing big data can help to find which part of advertising is actually useful and which is wasted.
