changes in performance marketing: customer lifetime value
TRANSCRIPT
NetBooster
Köln, 13th September 2016
Changes in performance marketing: Customer Lifetime Value
2 | Copyright NetBooster Group
Kristoffer Ewald, Group CIO
Innovating Performance Marketing
Strong Data and Analysis focus
Innovation by NetBooster
NB
1. Challenge 2. Response 3. Future
Tweet your thoughts: #dida16 - @kewald
Agenda – 15 min
NB
What’s Kris talking about?
NB
Top 3 flaws in Attribution
Lot’s of brand exposure is
missing
What happened in
the past?
What does the “conversion”
actually represent?
NB
Top 3 flaws in Attribution
Lot’s of brand exposure is
missing
What happened in
the past?
What does the “conversion”
actually represent?
NB
Top 3 flaws in Attribution
Lot’s of brand exposure is
missing
What happened in
the past? What’s better?
NB
Loyalty drives business Consistently know the consumer and maintain a relevant dialogue with her hugely increase your business performance An integrated approach will unify data and consumer information across all digital touch points and keep it natively owned over long periods across products, markets and brands. In essence it’s the Brands DNA to know it’s consumers well
It’s not (first) a tech discipline – First of all it’s a business strategy and needs to be executed via agile tactics. Then the concept of Customer Lifetime Value needs to be reconsidered CLV is hugely flawed: it’s not including context, velocity and future
1. Challenge
NB
Our success in redefining focus…
+2,5 Terabyte / month
+20 large projects
5 Hubs of specialists
Siginificant growth
NB 10
The Rise of Mobile
NB 11
Mobile Apps are key…
NB 12
Looking back at the past to calculate a
basic (flawed) metric
Crunch the data, and predict
CLV as a metric is flawed Old school
The new deal
NB 13
2. Our Vision
Customer Lifetime Value is flawed, big time ;) • No Context • No Velocity • No Future
NB 14
The new approach
5 New (suggested) KPIs: • Annual Opportunity • Predicted future total value • User Velocity • Core consumer fit score • Loyalty propensity
• Suggest yours: #dida16
This is the key takeaway
;)
NB 15
USER DATA is the core of your success !
USER DATA USER DATA
DATA AT THE CORE
Display Advertising
Mobile Marketing Affiliate Marketing
PPC CRM Social Media
Integrated Digital
Marketing Planning
Consumer Insights
Consultancy
SEO
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Offline PoS
AND CUSTOMER-CENTRIC
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The Google Stack is a Platform
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Consumer knowledge & its data at the heart of our thoughts & our actions
Consistent Data-driven strategy
NB 19
Three-dimensional Strategic approach
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1D Performance • Max. Share of Voice • ROI as campaign target
2D Interaction
1D
Performance
2D Interaction • Campaign development • Increase in qualified traffic
3D Brand building • Focus on New Customers • Strategic reach
Costs qualified traffic
++
--
3D Brand building
NB
De-duplication Reachability
Memory
From multiple silos…
CRM Mobile Social Paid …
NB
Many interactions, 4 visits, any channel à 1 unique person
To a unified customer vision
CRM Mobile Social Paid
Data Combination
Segmentation
Assumptions
Targeting
Revenue
Synchronisedd and unifed data
…
NB
Many interactions, 4 visits, any channel à 1 unique person
To a unified customer vision
CRM Mobile Social Paid
Data Combination
Segmentation
Assumptions
Targeting
Revenue
Synchronisedd and unifed data
…
Future? Predict the value of the interactions
Curing one (huge) flaw with the new metrics: Who and what to do with Dynamic Targeting
23 | Copyright NetBooster Group
§ Fully integrated data set, allowing us to crunch the data and calculate a weighted CLV
§ Paid § Earned § Owned § On-/Off-line
§ Live serving of dynamic creatives, dynamic pricing Respecting the need for relevance in the dialogue
NB
3. Future
Collect, Synchronise and crunch to Build the new stronger Metrics which will put
you ahead of your competition by live use across all the touches over actual lifetimes
Media CRM On Site eCommerce Social Offline
Your Digital Performance Architects
@NetBoosterGroup @kewald #dida16