Harnessing Big Data For Marketing Results

© 2015 Merkle. All Rights Reserved. Confidential

Harnessing Big Data for Consumer Insights

Shopper Marketing ExpoPresented By: Matt Mobley & Aileen CahillOctober 14, 2014

© 2015 Merkle. All Rights Reserved. Confidential @MatthewCMobley @AileenCahill

3 C’s of the Addressable Consumer Experience

CONNECTIVITYCONTEXT CONTENT

Leverage data and build context as the

consumer moves up, down and

sideways through the funnel

Deliver content as a compelling, singular

experience that moves and contours around the consumer

3

Desktop Phone Tablet TV

Use connectivity to enable

measurement and targeting where

ever the consumer chooses to engage


3 Must-Haves for a Connected Marketing Solution

Audience Mobility

Data Democratization

Integrated Insights

O R C H E S T R AT I O N

4


Data Democratization

5

Available to all users and processes

Understandable by all users and processes

Liberated from organizational and technological silos


Audience Platforms

Identity ManagementOnboarding CDI/DDI Cross Device

Business Rules Engine

Decisioning Algorithms

Audience Management

Real-Time Data Transfer

Advanced Analytics

Attribution / Forecasting

Business Intelligence

Analytics Management Platform

Data Management Platform

Decision Optimization Platform

Predictive Engine

Audience Syndication

Marketing DatabaseCustomer

360°Data

IntegrationEvent

Stream

Loyalty PlatformPoint

EngineReward

ManagementMember

Administration

Channel ExecutionMedia Execution

Site Contact CenterMobile POSDirect Mail SearchSocial Display Email DTV

Content ManagementGovernance Workflow Distribution

Application ServicesData Services APIs Tag Management Preference Center

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The Data Flow

6


Audience Mobility

7

Track contactable individuals as they move freely from one execution platform, media or channel to another

Liberate audiences from organizational and technological silos


The Challenge of Audience Mobility

8

Audience Platforms


Advanced Analytics






Marketing Database Loyalty Platform


Content Management


Mar

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AUDIENCE GENERATOR AUDIENCE GENERATOR

PROGRAM ORCHESTRATION



AUDIENCEGENERATOR

AUDIENCE GENERATORAUDIENCE GENERATOR

PR

OG

RA

M O

RC

HE

STR

ATIO

N


Integrated Insights

9

Deep understanding of individuals & audiences for analysis, targeting, optimization, and measurement purposes

Marketing processes driven by the knowledge gleaned from data


The Challenge of Integrated Insights

10

Audience Platforms


Business Rules Engine

Decisioning Algorithms

Audience Management

Real-Time Data Transfer

Advanced Analytics






Predictive Engine

Audience Syndication

Marketing DatabaseCustomer

360°Data

IntegrationEvent

Stream

Loyalty PlatformPoint

EngineReward

ManagementMember

Administration


Site Contact CenterMobile POSDirect Mail SearchSocial Display Email DTV

Content ManagementGovernance Workflow Distribution


Mar

ketin

g A

utom

atio

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ampa

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Man

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ent

Aud

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Lead

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INSIGHTS

INSIGHTS

INSIGHTS

INSIGHTS INSIGHTS

INSIGHTS

INSIGHTS

INSIGHTS INSIGHTS

© 2015 Merkle. All Rights Reserved. Confidential11 @MatthewCMobley @AileenCahill

Marketing MUST be a Blend

VERSUS

Science Art

AND


Data Enables “WHOLE-BRAIN” Marketing

Science of Marketing- Left Brain Focus

Art of Marketing- Right Brain Focus

ROI

Data-Driven

Predictive

Measurable

The Big Idea

Creative-Driven

Brand Building

Experimental

Whole-brained marketers deliver experiences that are:

Consumer-Centric Context-Aware Personalized Mutually-

Beneficial


Companies that Use Data are More Successful!

+ 5% More

Productive

+ 6% More

Profitable

Integrated Analytics

Can Free Up 15% - 20% Marketing $$

Budget Annually

2X More Likely to Be High Performing

McKinsey, Aug. 2014

McKinsey, Aug. 2014

McKinsey, Aug. 2014

Lenskold Group, 2009


People-Based Marketing Uses Data To Drive a Meaningful & Mutually Beneficial Dialog Relationship

Systematic Use of Information

• Customer Data Warehouse• Data analysis and gathering• Predictive modeling

To Attract and Keep Consumers

• Cost-efficient acquisition• Retention focused on profitable and

at-risk Consumers• Across channels

Through On-Going Dialogue

• Real-time response• Listening to customer• Personalized, customized offers and

messages

For Long-Lasting Mutually Beneficial Relationships

• Customer-based measurements• Continuous customer evaluation


Freq

uenc

y

Total Basket Dollar Value

Scanner Data Shopping Basket Analysis

Data Is Readily Available…

…Since 1980’s

Impulse Fill In Routine Stock Up

Discovered FOUR Distinct Shopping Occasions in Supermarkets


Diet Pepsi vs. Diet Coke

More Profitable

Drink MoreMore LoyalMore Male

BLIND; Diet Pepsi Taste was Preferred!Switching Campaign

Cobbled Together “Joseph’s

Technicolor Raincoat” of Data

Sources

Built Diet Coke Household

Predictive Model

Delivered a CASE of Diet Pepsi To 1MM Diet Coke

Households OVERNIGHT

Followed Up with Outbound Ray

Charles Phone Call (1st to Use IVR)

+8% Switching = $30MM per year


It’s What You Do With The Data & Math That Matters!

Conjoint Analysis LOGIT Model

Customer Satisfaction Reengineer Company

Fortune Magazine July 1992 “Right Side Up Company” & Marketing Science Institute Award

© 2015 Merkle. All Rights Reserved. Confidential @MatthewCMobley @AileenCahill© 2015 Merkle. All Rights Reserved. Confidential

Bristol-Myers Squibb – Excedrin

Results

18

Situation• Very crowded market and small

share of voice

• Product advantage in treating migraines

Actions• Identified high value households

• Created a customer database

• Established headache remedy center (HRC); community website, newsletter, research studies

• Early positive result • Line extensionAwareness Equity Share Retention


Unilever – Mentadent Toothpaste

Results

Situation• Declining share & increasing

competition• Brand has advanced therapeutic

effects – FDA regulated• Consumers dearth of oral care info

& insights

Actions• Tagged ALL Media• Identified high value households• Created a customer database• Content-rich oral care newsletter

(Objective content with subtle sub-branding and an occasional incentive)

• Created a dynamic web site with access to dental professionals

• Increased retention rates and share of customer• Launched toothbrush line extension• Identified cross category opportunities with Dove Soap

19


Veterinary Healthcare Company

Results

Situation• Only 18k veterinary clinics but few

insights• Mass marketing by tractor trailer

load

Actions• Cobbled together exiting research &

customer data• Appended third party data • First ever customer segmentation• Secured funding for customer data

mart based on business value• Spiffed sales for inputting critical

information for “Top Dogs”

• Aligned objectives across business units driven by needs-based customer segmentation

• Increased sales force efficiency by 22%+

20


Luxury Furniture aka. Functional Art

Results

Situation• Only 4 years of transactional data• Going to market as cataloger

Actions• Analysis proving showroom driven

NOT catalog• Top quartile consumers appended

with 3rd party data • Identified 44 predictive variables• First ever customer segmentation

using CHAID• Defined showroom-based trading

zones• Introductory direct mail

• Store events• Acquired new consumers• Opened new showrooms & closed others

21


Consumer Product

22

• Micro-segmenting audiences • Personalizing interactions• Omnichannel view & measurement; beginning with website, online advertising and email

Depend Category Spend($/HH)

$3633

$279235

Veteran

New to Category

In Database

Not In Database

Consumers in database are significantly more valuable

CRM is about increasing consumer’s LifeTime Value (LTV)

CRM Segments

Category Spend = $271Share = 32%

Brand Spend = $86Database = 18%







Loyalty

Valu

e

High

Hig

hLo

w

Low


Let’s All Be Leonardo!


Download Our Shopper Marketing White Paper

http://www2.merkleinc.com/CMWhitepaper

Just Published Today!!

Presentation will be on Slideshare




© 2015 Merkle. All Rights Reserved. Confidential

Thank You!

merkleinc.com

Matthew MobleyChief Technology Officer

[email protected]@MatthewCMobleywww.linkedin.com/in/matthewmobley

Aileen CahillSVP & Client Partner, Consumer Goods

[email protected]@AileenCahillwww.linkedin.com/in/AileenCahill

mailto:[email protected]

mailto:[email protected]

Harnessing Big Data For Marketing Results

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