dma07 presentation at&t use case
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8/9/2019 DMA07 Presentation AT&T Use Case
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Gene EdmistonAT&T Publishing and Advertising
Don KridelUniversity of Missouri-St Louis / CopperKey
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Background AT&T Advertising and Publishing is large (multi $billion) yellow page company
with 3 regions (old Southwestern Bell, old Ameritech, Old Pacific) with hundreds
of local directories base listing (SRL) is free; all other listings (or ads) are priced according to size
(and placement) Penetration rates vary by directory (size, region, and competitiveness) but # of non-
customers (SRL only) is three-to-five times larger than the # of customers
The Issue How to best utilize sales force (effectively sized for the number of customers) toincrease penetration and revenue
In other words, need to know how to target available sales resources
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Sales targeting needed Sales force focused on existing customers Finding time for sales force to acquire new
customers is difficult Internal myths to overcome Reward structure
How to target cost-effectively?
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Model development/evaluation Will it work? Determine the way forward To the extent possible, plan for implementation
Differences in regional policies and sales forces
Produce a business case to justifyrequired expenditures
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Develop and test targeting models Modeling scope
One National model Three regional models (default assumption) Many (hundreds) local models
Variable scope Internal Variables only External (from national databases) only Both internal and external variables
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Develop and test targeting models Cost considerations
$, time, and internal resources Performance metrics to evaluate results
lift as compared to business-as-usual practices ROI
Note in Yellow Pages, acquisition is similar to up-sell (or cross-sell) in other settings,since the provider has data on non-customers as well as customers.
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Model development and testing Ten test markets across the three regions
Built several models Internal, external, both internal and external National, regional, local Differing time periods
Compare actual results with scored lists Evaluate and make recommendations
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Model development and testing Models required external data to be effective
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Model development and testing National model not feasible
Too many cross-regional differences in available data (recallthat regions were different companies in recent past)
In contrast to our null hypothesis going into project and previous experience with pricingmodels, local models were quite different
Local out-performed regional in lift by about 10-15%
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Model development and testing results Manual development of many local models not cost
effective Used CopperKeys automated modeling portal to
develop local models Results from testing was used to customize the
CopperKey knowledge base for the project
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Process Customer list (1s and 0s) geo-coded and matched to
national database for variable appends Knowledge base drives model development Scored lists, profiles, maps, etc. are available via web
interface
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Process
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
After successful evaluation of models (ingeneral) and the CopperKey process (inspecific), contract was signed for 2005 100 large AT&T books 25 customer profiles
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Results (samples from 2005 and 2006)
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Results (samples from 2005 and 2006)
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Results (samples from 2005 and 2006)
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Results (samples from 2005 and 2006) ROI of over 3000%
Increased lift Converts from lists spend nearly 50% more per
month than BAU
Local models are estimated to out-performregional model by about
3000% ROI for local models vs. estimated 2000%for regional models
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
More Results (from 2007) High ROI continues
Models have been utilized in assignment process and combined w/ DM
Increased sales from a single book exceed entirecontract amount by nearly 50%
Early results from additional books suggest similar results
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Next Steps Further integration of current project
More books in existing 3 regions Extend to new Bell South books Develop response models to improve targeting
further
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Next Steps Extend to other targeting problems
New prospects DM campaigns I-YP prospecting
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Next Steps Tighter integration into sales processes
Use results with other intelligence to assist indesign of prospect-groups (e.g., gold, silver,etc.)
Ultimately offering scripts
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Conclusions Targeting works (no surprise!)
Automated analytics provides cost effectiveway to drive modeling to lower levels
As always, integrating new methods into
existing business practices requires time, effort,and a champion
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Automated Modeling and Sales Targeting:Case Study for AT&T Advertising and Publishing
Castillo, D.G.,D.R. Dolk, and D.J. Kridel, GOST: An Active Modeling System for Costing and Planning NASA Space Programs, Journal of Management Information Systems ,Winter 1991-92, Vol. 8, No. 3, pp. 151-169.
Dolk, D.R.,
and D.J. Kridel, An Active Decision Support System for Econometrics, Decision Support Systems , 7, 1991, pp. 315-328. Dolk, D.R.,
and D.J. Kridel, Modeling Telecommunications Demand Analysis, Interfaces , March-April 1993, Vol. 23, No. 2, pp. 3-13. Dolk, D.R.,
and D.J. Kridel, Towards a Symbiotic Expert System for Econometric Modeling, Current Research in Decision Support Technology , edited by R.W. Blanningand D.R. King, IEEE Computer Society Press, 1993, Chapter 7.
Edmiston, E.,and D. Kridel, Automated Modeling and Sales Targeting in the Real World: A Case Study for AT&T Advertising and Publishing, mimeo , 2007.
Kridel, D.J.
and D.R. Dolk, An On-line Marketing Consultant for Small and Medium Businesses, Proceedings of the 32nd WDSI Conference , Lihue, HI, April 2003.
Kridel, D.J.
and D.R. Dolk, Using Intelligent Profiling to Generate Smart Lists: An Empirical Test, Proceedings of the 33rd WDSI Conference , Manzanillo, Mexico, April2004.
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