Amping Up Campaign Performance Segmentation in a cross-channel world

Nancy Shaver Presented by:

No shortage of segmentation approaches

• Blurred customer focus

• Cumbersome strategy and planning

• Campaign and programs are not optimized

• Customer experience is less than ideal

• Unclear measurement across channels

• Doesn’t harness the power of “Big Data”

Putting the customer at the center The multi-dimensional advantage

Who are my…? • Customer segments

• Valuable customers

• Loyal customers

What are the…? • Most effective online & off-line approaches

• Best offers & messaging

• Products & services that resonate

• Investment opportunities

Putting the customer at the center The multi-dimensional advantage

How do they…? • Prefer to interact with my brand

Putting the customer at the center The multi-dimensional advantage

Building blocks

Measures & Objectives

Lifestyle & Demographics

Customer Value

Beliefs & Attitudes

Purchase behaviour

Media Consumption

Creating linkage

Customer interaction

Data captured

Linking “Big Data” is the cornerstone to customer intelligence and cross-channel marketing

Customer opts into mobile

program

Name Mobile Email

Mobile

Customer opts-In to

Email

Name Email

Email

Customer connects

on Facebook

Name

Facebook ID

Social eCommerce

Customer creates

account on eCommerce

site

Name Email

Customer completes credit card purchase

Name ZIP

Retail

Customer requests catalog

Name Postal Addr.

Catalog

Understanding Dana

Tech savvy

Catalog shopper

Loves travel shows

High discretionary

income

Multi- device user

Highly socially

influential

Actionable segments

What is she

worth?

Who is she?

Segment persona

What to say to

her

How to reach her

Exercises regularly; practices yoga

Bikes; doesn’t own a car

Lives on her iPhone

“Foodie” who enjoys new experiences

Watches The Travel Channel

“Young City Solo” MOSAIC cluster

Works in financial services

“Work Hard; Play Hard”

“ Brand strength & quality matters”

“Save me time”

“Work, workout and wander”

Travel, finance, websites

Yoga and travel publications

Heavy online shopper

Loves catalogs & email offers

Spent over $450 with your retail clothing brand last year over half online.

Loyalty program member, spends more than $1,500 with a competitor

“Work, workout, wander”

• Behavior & preference drive channel selection and budget allocation

• Data driven segment insights guide offer choice, ground message and creative

• High velocity triggered campaigns

perform better

Budget, channel, offers, messaging Media Consumption Profile

Smart high velocity campaigns

Birthday Browse Shopping Cart “Fan”

Loyalty Points Retargeting Offers Inactive

Aligned to goals

Effective in any

channel Clear &

easy-to-use

Guides Creative,

Offers Measurable

Segmentation case study Client: An online retailer expanding to brick and mortar

• Identify segments • Identify opportunities for growth Objective

• Develop transaction-based groups • Define segment personas

Experian Solution

• 30% suppression of customer file • Maintained 82% of marketing spend • Identified areas for store locations

The Results

Segmentation checklist Business goals and measures

Customer campaign & purchase data

ConsumerView

Consumer Insight

MOSAIC Reach

CCIR

Data science & advanced analytics

Revenue

Acq. Cost Value

All Accounts

$192

$154 $38

$320

$214 $106

$219

$157 $62

$105

$74 $31

Call Center Web Leads

$148

$152 -$4

Other

Establishing value

• Establish overall marketing value by channel* (dollars for example only)

• Marketing Value = function of (response, revenue, customer cost) • Customized to the goals of each project • Channel is only one analysis

Exploratory data analysis – channel contribution

* Channels are added over time as channel data can be attributed

Applying the value lens

• Ranked by the marketing value metric

E-Mail/DM Channel Value

-$500K

$0

$1M

$2M

80% 50% 20% 0%

Val

ue ($

)

Marginal Value

High

Medium

Low

Exploratory channel analysis – based on value

Channel performance E-mail/Direct mail channel analysis – based on value

% Of overall revenue Generated by 20% of households

Bringing it all together Multi-dimensional segment

Segment 1: Living the dream – Represents 32% of customers Demographic snapshot Socioeconomic indicators • Average age: 49 yrs. • Homeowners, 10 yrs. (avg. length of residence) • Typically married • Children range from grade school to high school • 22% Live in South Atlantic, 21% live in Middle Atlantic

• Very affluent: $143,650 average income • Above average home value • Educated: completed college & grad. level studies • Buy new and imported cars; tend to be luxury or

near luxury, often SUV’s • MOSAIC groups A/B

Lifestyle and interests Value • Cultural and arts orientation • Image conscious; financially savvy • Participate in activities such as skiing, golfing and tennis • Travel domestically and to foreign destinations • Family oriented; prefer home-based activities

• Highest customer value + Top revenue deciles + High RFM score + Top response deciles for e-mail & catalog

Channel propensity • High use of digital channels for retail and financial information • Use e-mail offers; catalogs • Transact on mobile/tablets • Consume cable • Travel, fitness magazines

“Living the Dream” by DMA High opportunity locations

Living The Dream

*conceptual sample for format only

Value delivered

• 5 value-based robust, actionable segments built

• Core locations for growth identified

Objective met

• Low-value segments “de-invested”; high-value receive more touches, richer offers

• Triggered campaigns tailored for each segment • Projected revenue increase of 7% on lower

spend

The results

Multi-dimensional segmentation Framework for maximum marketing return Framework for maximum marketing return

Who should we focus on?

Which channels matter?

How do we develop

programs that deliver results?

What offers and messages are

most effective?

Aligned to goals

Actionable in any

channel

Clear & easy-to-

use Flexible Measurable