marketing analytics: 5 things every cmo should know
TRANSCRIPT
Marketing Analytics:
5 Things CMOs Should Know
Peter Krieg, President and CEO
Thursday, June 27, 2013
The Home Stretch
2 weeks, 5 webcasts, improved marketing effectiveness
Series Schedule
1. Transformational Marketing Mix Optimization Using a Virtual Marketplace
Presenter: Jeff Maloy, Senior Vice President and Chief Marketing Officer
Available On Demand: brighttalk.com/webcast/1336/76329
2. Using a Virtual Marketplace to Evaluate Your Marketing Strategy
Presenter: Eric Paquette, Senior Vice President „
Available On Demand: brighttalk.com/webcast/1336/76331
3. Optimizing Your Media Plan for the Bought-Owned-Earned World
Presenter: Rolf Olsen, Vice President
Available On Demand: brighttalk.com/webcast/1336/76333
4. Leveraging Marketing Investments with Marketing Mix Modeling
Presenter: Irina Pessin, Managing Partner, Data2Decisions US
Available On Demand: brighttalk.com/webcast/1336/76333
5. Marketing Analytics: 5 Things Every CMO Should Know
Date: Thursday, June 27
Time: 1 pm EDT
Presenter: Peter Krieg, President and CEO
For a PDF of this presentation and our advertorial on using big data for marketing planning…
Email [email protected]
Who am ?
Peter Krieg
President and CEO
Copernicus Marketing Consulting & Research
Peter Krieg is a co-founder of Copernicus. With over 30 years of experience as a marketing and research consultant,
he is responsible for many of the firm‟s largest accounts and spearheaded the company‟s expansion into Latin
America and more recently Dubai, U.A.E. He has given many speeches at professional conferences in the U.S.,
Europe, Latin America and the U.A.E. and has written numerous articles in marketing and advertising journals and
magazines. The topics have included: brand strategy, research methodology, more effective implementation of
marketing programs, digital strategy and product/service optimization. He is the co-author of Counterintuitive
Marketing: Achieve Great Results Using Uncommon Sense (Free Press, 2000), Market New Products Successfully
(Lexington Books, 2006), and Your Gut is Not Smarter Than Your Head (Wiley, 2007).
His latest work is a soon-to-be-published paper on the relationship between blogging engagement and cross-
category personal influence, a study based on a Copernicus R&D investigation among 800 adult Americans.
The Marketing Analytics Spectrum
Simple Correlations
A/B Testing
Advanced analytics Predictive analytics
What I will
focus on today
What are CMOs thinking about big data?
More than 70% of CMOs feel underprepared
to deal with the data explosion (IBM Global CMO Study)
Less than 40% of CMOs "say they routinely
gain insight from their analytics.” (MarketingSherpa)
Only slightly more than 20% claim to be
highly effective at uncovering new insights to
generate business value (IBM Marketing Exec Survey)
5 Things Every CMO Should Know
1. Involve analytics team early and often
2. Turn big data into smart data
3. Organize around the customer
4. Take a forward view
5. Visualize it
6. Combine Art and Science
The Biggest Mistake Marketers Make….
“We’re not getting what we need.”
“We need something that will make the biggest
difference to our business.”
“We need something that really makes sense of how
our marketing works.”
Picking the Tool Before Picking the Problem
1. Involve Analytics Early and Often
Starting out thinking about models is like:
“Analytics groups are not involved early enough in the process. We need to get ourselves more integrated up front.”
- Mike Vitti
COO, Copernicus
To AdAge
1. Involve Analytics Early and Often
1. Involve Analytics Early and Often
All analytics projects should begin with a
clear understanding of what is overall
business strategy and what are the
problems/challenges that need to be
addressed?
Case in Point: Benefits of the Early Call
The Question of the Hour for CMOs….
How do you get from big
data to generating
insights that address
business goals and
problems?
2. Turn Big Data Into Smart Data
The outputs of any analytical tool are only as
good as the inputs that go into it.
2. Turn Big Data Into Smart Data
How to turn “big data” into “smart data”?
Answer: 3W’s:
When
Where
Why
Volume
Velocity
Variety
3 V’s
Economic
Data
Environ-
mental Data Media Costs POS
Data
Price/
Promotion
Data
Competitive
Data
GPS/RFID
Data
Survey Data
2. Turn Big Data Into Smart Data
Leverage first party data to fullest extent, supplement with third party data as needed.
FIRST BASE
FIRST PARTY
THIRD BASE
THIRD PARTY
Your data: Website data
CRM data
Subscription data
More accurate, and less costly
Customer understanding
Cross-selling and up-selling
Owned by others and purchased: Cookie data
Registration data
Modeled/Inferred data
Scale and new audiences
Market sizing
Customer targeting and acquisition
2. Turn Big Data Into Smart Data
Know what data matters
Know what data is good/valid
Know the limits of any data
– Don‟t be afraid to say (or hear) “I don‟t know exactly”
IF YOU‟RE ON THE WRONG TRAIN,
EVERY STOP IS THE WRONG STOP
3. Organize around the customer
The “future of marketing,” isn‟t in the
accumulation of big data.
The future is in organizing it around the
customer.
Requirements For Improving ROI All Along the Path To Purchase
Understanding of the customer – WHO?
– WHY?
Understanding of the customer’s journey – WHAT?
– WHEN?
– WHERE?
Understanding of the synergistic effects of different media on customer behavior
3. Organize around the customer
Data is only powerful when organized and structured
The consumer—and his/her journey—should be the organizing principle
Inspiration Exploration Evaluation Transaction Reflection
Household
purchase data
Paid media
Owned media
Our Target (Segmentation Study)
Behavioral/
A&W data
Search data
Web data
Price/
Promotion
data
Competitive
data
Brand Health
Tracker
POS Data Social data
Loyalty card
data
Path-to-Purchase:
Models can be better informed with your existing customer research
Market Segmentation
Brand Advocates
Shopper Journey
Advertising Tests
Brand Tracking / Drivers
Analysis
Creative / Message Tests
Your market segmentation provides a wealth of useful information
Happy Families
Struggling to Get By
Always an Angle
Simple & Settled
Savvy Sophisticates
# of U.S. Adults 38MM 38MM 48MM 32MM 44MM
Annual Spend $133 $131 $98 $95 $71
% of Category Spending
(Index)
26%
(136)
24%
(127)
21%
(95)
14%
(92)
15%
(69)
Current Share 27% 20% 16% 16% 14%
% of Current Opportunity
(Index)
37%
(195)
22%
(107)
19%
(71)
10%
(63)
10%
(45)
Different Demographics
Different Media Behaviors
Different in Needs/Motivations
Different Buying Occasions
Different Channel / Store Preferences
Map out the Customer Journey
What are the steps?
When are different media / touch
points used?
What is sought?
Are there seasonal elements?
Does advertising reach people
with the right message during the
right moments and mindset?
Understanding the synergistic effects of B/O/E media
25
4. Take a forward view
Most analytics is backward-looking
Models the future based on the past
We need tools/models that are more
forward-looking
In today‟s dynamic marketplace, this is no longer sufficient.
Experimentation is only an opportunity if you consider and test
many different options
“Big testing is often only valid if the customer
experiences in which it’s executed are good.
If you run a split-test of two concepts, say offer A
(a price emphasis) and offer B (a quality emphasis), testing
a hypothesis of which will motivate a particular customer
segment more — but both experiences are kind of crappy
— then the results of your test are useless.”
Scott Brinker,
Chief Marketing Technologist Blog
A virtual market, based on behavioral
“rules”
Allows us to simulate how consumers
may react to:
– Marketing and Media
– Each other (networking effect)
– Other “environmental” variables
Not bound by historical results
4. Take a forward view
Agent-Based Modeling and
Simulation (ABMS):
Bought Owned Earned
4. Take a forward view
Allow us to test and evaluate new, unknown, experimental, and “stretch”
marketing plans:
What if… Go after young dudes (instead of their
moms)?
Double our digital budget?
Dramatically improve “customer service”?
Competitor loses their mind?
The warm weather never gets here?
5. Visualize It
Within the data explosion, findings need to come alive in powerful visualization.
Word clouds
Info-graphics
Graphical User Interface (GUI)
To: Bar charts
Pie charts
Line graphs
From:
5. Visualize It
Interactive dashboards allow for “real-time” accessibility—and visualization—of data at
your fingertips.
6. Combine the Art and Science
“All models are wrong,
but some are useful”
George E. P. Box
6. Combine the Art and Science
“Now you have a marketing analytics shop and a
market research shop. All of these groups are
critical pieces to the puzzle. But they may not have
worked together in the way you need them to in
order to get the right decisions.”
Matthew Jauchius
CMO, Nationwide Insurance
6. Combine the Art and Science
Need to move from:
Marketing Data to Marketing Intelligence to Marketing Decisions
Takes a diverse, talented team
The What So What Now What
Data and reporting
Consumer Understanding
and Insights
Modeling & Simulation
Marketing and Sales
5 Things Every CMO Should Know
1. Involve analytics team early and often
2. Turn big data into smart data
3. Organize around the customer
4. Take a forward view
5. Visualize it
6. Combine Art and Science
For a PDF of this presentation and our advertorial on using big data for marketing planning…
Email [email protected]
