MARKETING ROI: come aumentare i ritorni sugli investimenti

Valori e sfide

DATI > INFORMAZIONI> CONOSCENZA > AZIONI VALORE

Core business Ottimizzazione

Azioni per misurare efficienza ed impatti

Incremento del business Sviluppo

Visione del business incentrata sulle 5P

Digital Advantage Opportunitá

Sviluppare il sistema di TRM

(CRM + VRM + SRM)

Nuovo paradigma Ricreare

Trasformare l’as is in nuovi contesti e nuovi use cases per generare

nuove opportunitá

Dati

Dig

ita

l

1&2 Le sfide nel Core Business

Incrementare il valore del cliente (e la customer retention)

Incrementare le conversion rates

Creare e lanciare nuovi servizi

Acquisire nuovi clienti (con un targeting piú specifico)

Incrementare la brand awarness

Incrementare l’efficacia delle campagne

Incrementare la profittabilitá delle carte fedeltá

3. Strategic business transformation: Digital Advantage

TRM = (CRM + VRM +SRM)

Riconciliare le informazioni provenienti da tutti i touch point digitali

Identificare in anticipo i segnali che possono avere

effetti positivi o negativi sul brand

Condividere con le comunitá, creare iniziative di crowd sourcing, identificare gli influencers

4. Intelligence for everyone: un nuovo paradigma Scontrinato

Logistica

CDG

ERP

Social

Intelligence for everyone

TRM P

rice

O

pti

miz

atio

n

Fore

cast

ing

Res

tock

Car

d lo

yalt

y

Mar

keti

ng

Mix

Le necessitá : incrementare revenue & margini Creare nuovi prodotti

Utilizzare le campagne marketing come asset strategico

IL NOTO...

Response Modeling Don’t Contact Those Who Won’t Respond

Business Initiative Avoid contacting those who will not respond to an offer

Approach

Using responses (and non-responses) to past campaigns, we can predict who will (and won’t) respond tomorrow

In addition, we can assign a score to each customer to enable ranking Then make the offer only to those at a sufficiently high score

Example

Suppose you have marketing budget to solicit 40% of your customer base with an offer Without a method to rank customers response, the target list is random

• On average, the result would be 40% of all possible responders By using a predictive model to rank customers, we can contact just 10% of the most likely

responders and find the same 40%

Benefits

This results in higher response rates and more profitable campaigns One fourth as many to contact, a cost savings of 75% and much greater campaign efficiency

Uplift Modeling: Don’t Contact Those Who’d Respond Anyway

Business Initiative Don’t contact those who will respond without the offer

Approach

We expand response modeling to analyze the additional revenue due to the campaign So here, we predict whether someone will buy without contact We categorize customers into 4 segments

• Do-not-disturbs – buy only when left alone • Lost Causes – don’t buy whether they get offers or not • Persuadables – buy when they receive an offer

– This group is worthy of the cost of the offer (traditional response modeling) • Sure Things - buy whether they get offers or not

– This group should be held out as they buy anyway (uplift modeling) – The cost of contacting is saved

Benefits

Offers are focused on the Persuadables as they buy when contacted Sure Things buy without the offer, so campaign costs are reduced, with no impact to

revenue

Churn Modeling: Don’t Send Retention Offers to Those Who Aren’t Leaving

Business Initiative Stop sending unnecessary retention offers

Approach

Imagine your customer base is a bucket of water, water flows into the top, representing newly acquired customers

Water also leaks out the bottom, representing customer churn

The goal of churn modeling is to slow the leak, and grow the customer base faster

But we also need to avoid making retention offers to customers that are not likely to leave

A customer who gets this offer (a discount) but wouldn’t have left, results in unnecessary costs

Benefits The predictive model will rank each customer on their likelihood to churn

This enables targeted, effective retention campaigns that are cost effective and reduces or eliminates retention offers to loyal customers

Uplift Churn Modeling Don’t Trigger Those Who Aren’t Leaving

Business Initiative Don’t disturb customers and trigger them to leave

Approach

We expand churn modeling to address customers we want to avoid disturbing So here, we predict whether someone will churn if they receive a retention offer We categorize customers into 4 segments

• Sure things – won’t churn whether they get offers or not • Lost causes – will churn whether they get offers or not • Persuadables – won’t churn when they receive an offer

– This group is worthy of the cost of the offer (traditional churn modeling) • Sleeping dogs – will churn if they get an offer

– This group should be treated passively – The cost of contacting is saved, plus they are retained

Benefits

Offers are focused on the Persuadables as they won’t churn when contacted Eliminate Sleeping Dogs from the contact list, so campaign costs are reduced, and retention

is increased

L’IGNOTO...

Multivariate Data Discovery for the Business User/Analyst

Multivariate Data Discovery for the Business User/Analyst

Multivariate Data Discovery for the Business User/Analyst

Multivariate Data Discovery for the Business User/Analyst

E IL CONTROLLO...

Il controllo....

CONCLUDENDO

Information Builders Value Thesis V

alu

e t

o IT

Economies of Scale Strategic Business Transformation

Information Relevance & Trust Intelligence for Everyone

Increase leads to sales conversion rates with more accurate

data on lead routing resulting in increased sales productivity

Reduce wasted marketing spend by improving the impact of

bad data due to margin of error in customer information by

12% - resulting in recovery of lost revenue and improvement

in damaged brand reputation

Maximize ROI on integrating accurate customer information to

drive customer insight – generally $1 to verify a record as it is

entered, about $10 dollars to fix it later, and $100 if nothing is

done

Increase revenue up to 10% by monetizing customer

segmentation information to partners

Maximize customer lifetime value with data driven

marketing to understand and predict customer behavior

Increase customer service rates and impact customer

sentiment in realtime with social insight and other digital

and traditional insights

Increase Productivity

20% over x years

Increase revenue and Higher Margins

X€ over three years

Lower Total Cost of Ownership Business Process Optimization

Fully Integrated Data Experience Business Agility & Adaptability

Consolidate information from all channels (online, traditional,

digital, external etc) to increase return on advertising channels

by x%

Decrease time to market and lower brand management cost

by x% with consistent brand integration and management

Integrate all multi-channel marketing information with systems

of record for customer data to increase personalized on-site

experiences by x%

Increase customer acquisition and customer profitability

by 15% through better targeted marketing campaigns and

customer profiling

Increase up-sell and cross-sell opportunities by predicting

customer behavior to minimize risk of loosing marketshare

Improve Campaign effectiveness against sales results to

increase response rates and better return on investment

on campaigns

Reduce Cost

X€ over three years

Increase ROI and Reduce Risk

X€ over three years

Value to the Business

Il modello applicato...

Economies of scale Strategic business transformations

Information relevance & trust Intelligence for everyone

Defined growth strategy on a single unified platform: •Stream 1: Market Basket Analysis •Stream 2: Stock optimization •Stream 3: Price optimization •Stream 4: Advanced analytics for customer/products segmentation

Increase marketing campaign returns by 2% to 5% (Fidelity Card & Customer Loyalty) Stock optimizations: reduce reorder over fulfilment of stock and use marketing campaigns as optimization tool Price optimization: estimated 5% to 10% increase of margins due Net-Net price model

TBD from 3M to 5M/year

Lower TCO Business Process Optimization

Fully integrated data experience Business Agility & adaptability

Handle on-time marketing information based on minimum 25 months tickets Data coming from different sources (like Nielsen) could be integrated in one single analytic platform Unique capability to integrate different technologies

Single view of customer acquisition across channels (Market Baskets Analysis) Real time information coming from loyalty card could be used for JIT Campaigns Reduce overstock of perishable goods Well defined Data Scientist to Category manager workflow gives flexibility to buy/sell process

TBD from 300k to 500k/year

Reference Stories V

alu

e t

o I

T

Economies of Scale Strategic Business Transformation

Information Relevance & Trust Intelligence for Everyone

Informa – Significantly reduced opt-out rates due to

improvement in address accuracy from 30% to close to 100%

accuracy which had a direct impact in revenue and profit.

Diodes - Increase market share by improving competitive

intelligence across products against competitors by leveraging

external research data

FullCircle – provide customers the ability to track

marketing campaigns across multiple channels and

allocation of marketing budgets based on contact

center and fulfillment activity to control cost

Coviden – increase revenue by up 8%, and lower

cost through improved integrated campaign and

sales tracking

SFG – insight into campaign effectiveness and

customer lifetime value to grow customer loyalty

Increase Productivity Increase revenue and Higher Margins

Lower Total Cost of Ownership Business Process Optimization

Fully Integrated Data Experience Business Agility & Adaptability

Time Inc – reduction in time in analyzing and understanding

advertising target audience and their interaction across brands.

Schawk – optimize brand management consistency across

different products and promotion campaigns with single point of

integrated brand insight

Netbiscuits – real-time marketing analytics of managed mobile

websites with reduced cost around data integration

Ceca – analyze customer behavior for better up-

selling

Transamerica – track sales outcomes as a result of

marketing programs

Food for the Poor - The donor relations department

depends on WebFOCUS to maximize the efficiency

of its fundraising activities and campaign

effectiveness with faster turnaround time in their key

business process (donor recipts info available in

real-time vs several days)

Reduce Cost

Increase ROI and Reduce Risk

Perché Information Builders

Integrazione delle informazioni

Mash-up applicativo

Una piattaforma analitica solida

Event driven, real-time e predictive

Scalabilitá e sicurezza

Per maggiori informazioni:

Direzione Aziendale

Franco Breda

Cel. 348 8588000

franco.breda@pragmams.it

Direzione Commerciale

Andrea Rizzardini

Cel. 348 3953419

andrea.rizzardini@pragmams.it

Marketing

Gaia Scapini

gaia.scapini@pragmams.it

www.pragmams.it