mining for gold: using data to drive revenue & services

© Gamse, Trochlil, Younger 2002

Mining For GoldMining For Gold

Philippa GamseWes TrochlilJay Younger

Using Data to Drive Revenue and Services


Enough about us…

• Quick poll

• Expectations / Questions


“Mayo Clinic Plans Database Of Every Patient’s History, Including Genetic Makeup”

Wall Street Journal3.25.2002

In The News...


Data Mining Defined:

The extraction of predictive information

from stored data


Data Mining Can Be...

•Automated or Manual

•Expensive or Reasonable

•Integrated or Stand-alone

•Frustrating or Productive


Call Center

Staff

MeetingRegistratio

n

RenewalFormsSurveys

Vendor Reports

Product

Sales

E-mail

Web

Education

DATA


Data Management Strategy

• What should you collect?

• How you can collect it?

• What can you do with it?


The Technology


“A tale of two associations”

Centralized System• Easy data access• Analyze NOW• Collaborative• Data drives

marketing• Laser marketing

Multiple Systems• Inaccessible data• “Can’t analyze”• Silos• Guesswork drives

marketing• Shotgun marketing


OK…so I’m in the right column

• Now what?

1. Acquire a new centralized database2. “Connect” the databases via a key

identifier3. Use the systems in a stand-alone

capacity


Tough Questions...

• Who’s managing this?

• Where’s it going now?

• Who’s entering it?

• What do you really need?

• How can you use it?


What To Collect

• What’s your goal?

• What’s the potential (ROI)?

• What will it cost?

• What’s your timeframe?


What To Collect

• Types of data

– Research Data

– Behavioral Data

– E-Data


Examples of Research Data

• Demographic Information

• Employment Data

• Industry Research

• Marketing Results

• Financial Metrics


“Past performance is no GUARANTEE

of future returns”

BUT BUT it’s a good start it’s a good start

in marketingin marketing


Examples of Behavioral Data

• What they’re buying from you– meeting attendance, publications, education,

products

• Key dates– renewal, lapse, dates of purchase, registration

• Member program participation– certification, insurance, services

• Feedback


More Examples…(associate members/supporters)

• Sponsorship history

• Advertising & exhibit sales

• Meeting attendance

• “Drivers”

• Competition

• All inquiries


Website Statistics

Automated data collection– internal search engine

– web traffic reports

– tracking URL’s

“Market research that cannot lie . . .”


Internal search engine

• site usability• user needs:

– what’s hot?– what’s not covered?

• program / product / service development ideas


Website traffic reports

• Approaching this data:– HITS and page views– most / least requested pages– time spent on pages– conversion rates– top exit pages

• “Ask questions . . .”


E-mail campaigns

• Mine your database for targeting– opt-in / opt-out

• Use tracking URL’s with traffic reports:– click-thru’s– conversions

• Test different wording / timing


Roadblocks

• Data is decentralized & fragmented

• “Overload”

• Storage

• Tendency to focus on the micro


Solutions

First: Information Audit

Next: Focus on your objectives

Then: Prioritize and plan


Information Audit

Should help answer these questions:

• What do we have?

• How can we access it?

• What can we do with it?

• What’s it worth?

AND...


Information Audit

• What’s missing?

• Where can we get it?

• What’s THAT worth?

• How can we centralize it?

Bottom line: knowing your customers


What can you do with it?

• Market driven information to:– promote current products & services– develop new initiatives

• Permission Marketing– expectation: choice of communication

• Predictive Marketing – think AMAZON


What ELSE can you do?

• Illustrate total value – “you saved x this year”

• Inform your growth strategy– market segmentation– joint ventures– marketing mix


Goal: Boost Membership (IMO)

RESEARCH“vitals”gender

age income

education

BEHAVIORproduct salesparticipationattendance

datesfeedback

YOUR MARKET YOUR MARKET YOUR MESSAGEYOUR MESSAGE

E-DATAsearch engine

trafficemail

click-thruconversions


NACUBO Case Study


NACUBO Case Study - Association Profile

• Staff: 42 Budget: ~$12 million• 30 seminars, conferences, and workshops

annually• Over 80 publications• Database holds 25,000 contact names

representing 2,200 colleges and universities• Database is SQL-based and enterprise-wide

(centralized)


NACUBO Case Study – Survey Background

• Collect primary responsibilities • Collect interests• Collect all key contact information,

like title, email, phone, fax, etc.


NACUBO Case Study – Details

• Paper survey to 25,000 contacts to collect responsibilities and interests

• First round collected 10,000 responses• Moved to online collection

– Initial cost: <$9,000; ongoing cost is negligible– savings of $10,000 annually over paper survey


NACUBO Case Study - Results

• New Business Officer program– 300 personalized letters mailed– 100-120 attendees (40% return)

• GASB program– Now holding 10 workshops per year– Targeted mailings of 5,000-7,000 pieces– 1500 total attendees @ $500 per


NACUBO Case Study – What they did right

• Moved to online data collection• Collected MORE than they initially

wanted, e.g., email addresses, interests

• Targeted their promotions• Used data to develop new programs• Continue to review the data they’re

collecting


Q & A


The keys to success

• It’s worth the time

• Benchmark & innovate yourself

• Technology shouldn’t stop you

• People and culture are the key

• Test…and test again

mining for gold: using data to drive revenue & services

Business

data mining

roadblocks data

stored data

examples of behavioral

data management strategy

data todrive revenue

information audit whats

whats hot