a data-driven marketing plan - deanna kawasaki
TRANSCRIPT
AIM 2010
Creating a Data-Driven Marketing Plan for a Hyper Competitive
Environment
Deanna Kawasaki
• The actual cost efficiency of information processing doubles every 12-18 months
• In 1978 the Cray 1 super computer processed 160 million instructions per second – it was the fastest, most powerful computer in the world
• When Sony introduced the PlayStation in 1995, it processed 500 million instructions per second making it 3 times as powerful as the Cray 1
• The Cray 1 cost $20million while the PlayStation costs $299 at retail
• Today’s computer is tomorrow’s video game
Data data everywhere….
Evolution of Data
Data
Information
Knowledge
Action
Data became a critical tool in marketing as systems made the creation and collection of data economically feasible and timely
As data elements were blended and reviewed using reporting tools, information was created
Knowledge was created as information accumulated over time and was supplemented with analysis and human imagination
Knowledge without action is wasted effort
“The ability to take data—to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it—that’s going to be a hugely important skill in the next decades”
Hal Varian , Google Chief Economist
Knowledge Transformation
Case 1: Base MeasuresKeep it Simple
Is the phone being answered?
Property% Missed
CallsProperty 1 0%Property 2 0%Property 3 0%Property 4 0%Property 5 10%Property 6 20%Property 7 20%Property 8 25%Property 9 27%
Property 10 31%Property 11 31%Property 12 31%Property 13 33%Property 14 33%Property 15 33%Property 16 37%Property 17 38%Property 18 40%Property 19 40%Property 20 42%Property 21 43%Property 22 44%Property 23 45%Property 24 47%Property 25 48%
Property% Missed
CallsProperty 26 49%Property 27 50%Property 28 50%Property 29 50%Property 30 52%Property 31 54%Property 32 55%Property 33 56%Property 34 58%Property 35 59%Property 36 61%Property 37 62%Property 38 63%Property 39 64%Property 40 65%Property 41 67%Property 42 76%Property 43 76%Property 44 77%Property 45 100%Property 46 100%Property 47 100%Property 48 100%Property 49 100%
• Answering the phone is a basic dependency measure to increasing the goal of increasing the number of appointments set
• Ad Source and call handling performance is secondary of the call isn’t getting picked up
January February
45.4%
59.1%
30% increase in Calls Answered
January February
16.1%
27.3%
70% increase in Appt. Set
Large SW PMCo reaps the rewards of starting with the basics
• 70% increase in appointments set in 30 days
• By keeping-it-simple and focusing on the basics of answering the call, time management and setting the appointment, this Southwest company significantly improved their core operational measures in 1 month
Which ad sources produce appointments?
• 330 area code displayed trend change in appt. producing ad sources• Print in 2010* led to more appointments set than in 2009
2010 sampleAppt Set Calls
by ad source type
2009 sampleAppt Set Calls
by ad source type
online30%
other
4%
print66%
online39%
other4%
print58%
330 Area Code top* appointment producing ad sources
• Appointment set rates for top ad sources in the sample ranged from 44%-57% in 2009 to 48%-65% in 2010
Top 10 ad sources in 2010 sample
Top 10 ad sources in 2009 sample
Youngstown Vindicator
ForRent.com
Warren Tribune
My New Place
Canton Repository (Print)
Record Courier
For Rent Magazine
Apartmentguide.com
Apartments.com
Craigslist
Canton Repository (Print)
ForRent.com
Warren Tribune
Youngstown Vindicator
For Rent Magazine
Record Courier
Rent.com
Tribune Newspaper
My New Place
Craigslist
Sample: based on sample
Case 2: Look Toward the HorizonA Path to Transforming Data into Action
Creating Knowledge
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08Jul-0
8
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09Jul-0
9
Aug-09
Sep-09
Oct-09
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Cash/Check/Debit Logarithmic (Cash/Check/Debit) Managed CareLogarithmic (Managed Care) finance Logarithmic (finance)credit card Logarithmic (credit card)
• Credit Card Payment Behavior Changed– Monthly analysis of payment trends suggested a shift began in 2008
with Finance related cash flows increasing while Credit Card and Check/Cash/Debit options decreasing
First, Creating Information
• The decrease in share percentage of Credit Card cash flow closely mirrors ‘cost-of-money’ indicators like the 30 yr conventional mortgage rate
• As credit companies tightened their limits, customers looked for alternate financing options
Next, Gain Knowledge through Analysis
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
1
2
3
4
5
6
7
credit cardLogarithmic (credit card)30-yr conventionalLogarithmic (30-yr conventional)
cred
it ca
rd %
age
Mon
thly
Inte
rest
Rat
es*
• Eighty-eight million accounts and credit lines, representing $751 billion in credit, have been closed since September of 2008.
• In September 2008 credit card debt hit an all-time high of $975 billion. Banks shed nearly $76 billion in card account balances over the 11 months preceding August 2009. The Fed reported the total outstanding credit card debt at the end of August 2009 was $899 million.
*Interest Rates sourced from Federal Reserve: http://www.federalreserve.gov/RELEASES/H15/data.htm#topFinancial Sources: www.cardtrak.com, September 2009, www.federalreserve.gov
• While economic indicator trends remain constant and credit is tight, campaigns centering on OAC are most appealing to this target group of customers
• When economic conditions begin to improve, credit begins to “loosen”, new campaigns such as discounts should be retested for impact
• Teach, train and transfer knowledge to partners and assist them with identifying triggers of economic improvements that best predict a change in process that will affect them and how they can test waters to keep them ahead of competitors
Step 3: ActionDirect Marketing Actions
Case 3:Finding look-a-likesProfiling
• Customers who purchased products between Oct09 and Mar10* tended to report addresses within 6 to 9 miles of the location they visited
• Large proportion traveled less than 20 miles to location
farther
nearer
distance
Profiling: what do you know about who chose you?
Units sold/pop
More Sold
Less Sold
Connected Calls
More Calls
Less Calls
• Mid-West states of IO, IL and IN received more calls and sold more units• GA, NC, FL and CA received higher than average calls but sold fewer units
Are your customers coming from the same areas that are driving the most calls?
Connected Calls/pop
More Calls
Less Calls
• All person’s who purchased in Feb10 from Carlsbad came from within a 10 mile radius
• 3 of the 4 purchasers came from zip codes with lower call volumes
Deeper look at a single location shows an opportunity
Connected Calls/pop
Median HH Income:$68.9k
Median HH Income:$65.3k
Median HH Income:$97.8k
Median HH Income:$81.9k
Median HH Income:$99.6k
Median HH Income:
$48k
Median HH Income:$69.5k
Median HH Income:$57.8k
Median HH Income:$63.7k
Median HH Income:$63.7k
Median HH Income:$64.7k
Median HH Income:$54.6
More Calls
Less Calls
Closer….Closer Still….
Case 4: Lead HandlingThat which is focused on, improves
Can the outcome of a call be influenced by how it is handled?
• A lead call can be viewed as having a particular series of ordered events where each of these stages has a measurable impact on a desired outcome, a lease
• Analysis indicates that particular industries can successfully influence their desired outcome by focusing on key, relevant, stages of a call
AutomotiveCall Handling’s Influence on Setting
the Appointment• Very strong correlations exist between the call-to-
appointment conversion rate and the well Handling of Objections
Appropriate Greeting Needs Analysis
Obtaining Contact
InformationHandling
Objections Appt SetAppropriate Greeting 1 0.174 0.133 0.091 0.082Needs Analysis 0.174 1 0.228 0.162 0.165Obtaining Contact Information 0.133 0.228 1 0.168 0.135Handling Objections 0.091 0.162 0.168 1 0.960Appt Set 0.082 0.165 0.135 0.960 1Values in bold are different from 0 with a significance level alpha=0.2
Hearing AidCall Handling’s Influence on Setting
the Appointment• Significant correlations exist between the call-to-
appointment conversion rate and the well handling of the Qualifying Needs section
Introduction & Greeting
Qualifying Needs
Obtain Contact Info. Units Sold Appt. Set
Introduction & Greeting 1 0.211 0.403 -0.210 0.023Qualifying Needs 0.211 1 0.715 0.183 0.457Obtain Contact Info 0.403 0.715 1 0.005 0.372Units Sold -0.210 0.183 0.005 1 0.211Appt. Set 0.023 0.457 0.372 0.211 1Values in bold are different from 0 with a significance level alpha=0.
Multi-FamilyCall Handling’s Influence on Setting
the Appointment
Intro. & Lead Info.
Amenities & Benefits
Qualifying Questions Price Appt Set
Intro. & Lead Info. 1 0.208 0.634 0.492 0.386Amenities & Benefits 0.208 1 0.393 0.301 0.088Qualifying Questions 0.634 0.393 1 0.521 0.202Price 0.492 0.301 0.521 1 0.120Appt Set 0.386 0.088 0.202 0.120 1Values in bold are different from 0 with a significance level alpha=0.05
• Consistently, strong correlations exist between the call-to-appointment conversion rate and the well handling of the Introduction and Lead Information section
Thank You