winning with big data 10:30-11:30am ncdm13

Winning with BIG DATA Drive Marketing ROI across all Channels & Campaigns

@tkahlow @BOLoptimized

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Why Big Data? Why now?

Pace of change… + Companies: Large and small… + Industries: Old & young + Customers: b2b, b2c, male or female, rich or poor… + Change, big change…

Greatest Company Asset…

Customer Relationship

Enterprise Value Paradigm

Not Product

Not IP

Not Brand

Age of the Customer “Empowered buyers, disruptive digital

innovations…erase traditional competitive advantages…the next wave will come from deep

customer knowledge, engagement tied to the buyer's timing, and actions based on an obsessive desire to deliver what your customers want before

your nearest competitor does.”

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I’m Thad Kahlow @Tkahlow

+ CEO BusinessOnline

+ 14 years Digital Marketing

+ B2B/B2C High Consideration- lead to sale

+ B2B Magazine Interactive Agency year

+ Top Agency: 3 Consecutive years…

+ Thrilled to be here today!

Allow me to

Digress…

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CEOs operate in a substantially more

“volatile, uncertain and complex world”

-IBM Study, face-to-face conversations with more than 1,500 CEO’s worldwide.

CEO: New normal

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Re-Invent Customer Relationships: +Adopt new channels to engage & stay connected with

customers. +Draw more insight from data…make customer intimacy

priority #1

Solution

CEO

“CEOs believe #1 goal is to get closer to customer”

-IBM Study, face-to-face conversations with more than 1,500 CEO’s worldwide.

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Deliver Value to Empower Customers + Digital revolution- forever changed

balance of power between individual & institution

Foster Lasting Connections +Cultivate meaningful

relationships…throughout life cycle Capture Value, Measure Results +Justify financial results

Solution

CMO

Simplify please…

Why Data?

Why now?

Because…

Customers have control & fundamentals

have changed…

Barriers to entry are minimal,

competition can enter and win quickly…

Customer Relationships become our largest asset

Data is introduction,

enabler & insight

Win with Data

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Programs that efficiently and

effectively generate leads that turn into

sales…

Majority of marketers do not

know which programs produce the leads that turn

into sales.

The Primary

Marketing Challenge

yet

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Customer Journey

Validated Score

Attribute

Personalize

Close the Loop

Close the Loop

Attribute Success

Drive Business

Performance

More Effective

Sales

Strategy Starts

Data Framework

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Collect & Connect Data throughout

Company Buying Journey

“Great marketers focus on people… their needs, behaviors, intentions, wants… Avoiding

the shiny temptations of marketing solely to things – like devices, channels, technologies.

Never been more critical… Staying focused on the people and motivations…marketers can catch an incredible wave of opportunity.”

Close the Loop Step 1

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Awareness

Engagement

Conversion

SALE

Awareness: PPC , SEO, Display, Social, Email…

Usage Engagement: Bounce, Page Views, Visits, Frequency

Content Engagement:

Newsletters, Blogs, Videos, Webcasts, product pages

Conversion: Request a quote, contact, dealer locator,

initiated lead, completed lead, registration, #800

Measured in isolation: -Single Channel to Lead : CPL

-Silo Engagement: Avg page views

Common

Approach to Measurement

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Close the Loop

w/ Connected Common Key

Web Analytics

+ Marketing Automation + CRM

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Connected Marketing Technology Integration

Web Analytics Business Systems Channel Data

Customer Intelligence

Exact Target

“…companies are seeing an average 15-18% Lift in Revenue…

As result of implementing closed-loop & Optimizing”

- Tina Moffett, Attribution Analysts Forrester Research

Attribute Success Step 2

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Type

Approach

Single Touch Assigns 100% credit to the last or first exposure First/Last Touch

100%

Rules-Based Assigns credit to each interaction based on specific business rules

Even Weights Custom Weights Time Decay Positioned Based

Display E-Mail Search

33% 33% 33%

Statistically Driven Assigns credit to each interaction based on a data driven model

Regression Model Probabilistic Model “Validated Engagement

Factors”

Display E-Mail Search

27% 49% 24%

Basic Advanced

Primary

Attribution Model Types

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Type

Pitfall

Single Touch

Ignores the bulk of the customer journey, overvaluing the first or last touch

Undervalues other influencers (and interactions), including sales efforts

100%

Rules-based

Assigns arbitrary values

to each specific marketing tactic

Subjective and lacks analytics rigor to determine weights

Display E-Mail Search

33% 33% 33%

Basic Advanced

Model

Pitfalls

Statistically Driven

Can be more complex

& costly to execute Some Marketers feel

uncomfortable with an algorithmic, “black box” approach

Display E-Mail Search

27% 49% 24%

Validated Engagement Factors (Statistically modeled)

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VEF

“Historical (validated) review of past behavior… to improve future outcomes”

Validated Engagement Factor

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Five Steps Validated Engagement Factors

3. Aggregate past (50+) clients- create statistically significant = validated

Path to Success

2. Determine path to success: what did prospects do before they became clients?

1. Close the Loop: Data house in order: web activity + marketing automation + CRM (sale) in Data Warehouse

Closed Loop

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4. Normalize Connected Data: + Time: Analyze engagement activity over time (12mos) + Normalize: Create a Normalized engagement score across all

customers = 100 (mean) + Analyze for Statistically Relevant Insights: Lead engagement

scores > 100 Score = + “demonstrating higher likelihood to buy”

5. Turn Insights into Business Opportunities

+ Content personalization + Remarket + Click to chat + Sales alerts/out reach

Validated Engagement Factors Five Steps (Cont)

Company Attribution

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+ Typically measured @ individual level -YET-

+ KNOW B2B has multiple influencers in buying journey

+ For Every known lead, we can have 10+ unknown visitors + Measure, analyze and optimize opportunities at the

company level

Company Attribution

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7 vs. 173 = +24x More successful

Example

Individual vs. Company

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0

200

400

600

800

1000

1200

1400

1600

1800

Month 1 Mo. 2 Mo. 3 Mo. 4 Mo. 5 Mo. 6

Analysts

Marketing

IT Team

C-Level

Engagement Score

Most of these stakeholders were anonymous

B2B Sales Funnel

Stakeholders in Buying Process

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General experience Personal experience Convert Increase sales

SALE

+ Someone in your role + In your industry + At this stage of buying journey + Looking for to solve this specific problem + Has found this piece of information valuable + All based on past success events

Personalize to role/need Amazon for B2B/ B2C High Consideration

Drive Business Performance Step 3

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From Data Derive Business Insights

+ Identify insights from multiple data sources across the enterprise

+ Clearly communicate performance at the channel, campaign, and content level

+ Focus on business decisions instead of wading through low-level marketing analytics data

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Right Business Questions Answer the

+What is our marketing conversion rate? +What is our sales conversion rate? +What is our lead quality from digital? +What is our return on ad spends? +What are customers engaging with?

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Digital and Business Metrics Measure Key

+ Shift your conversations from impressions and clicks to revenue and ROI

+ Focus on customer activities

that sell and refine programs + Clearly demonstrate the impact

of marketing to the bottom line

266,773 Visitors

4,027 Leads [1.5%]

208 Buy [5.3%]

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+ Targeted Impressions: ~6M-9M + CTR 1%–3% + CPC: Avg $1.01 + Qualified Visitors: 100ks + Lead Conversion: Avg ~6% + Cost Per Lead: $20 CPL + Lead to Sale: ~6%

+ Cost Per (offline) Sale:

+ ~$600 cost/sale (p/unit) + $20M Sales/ $1M Cost

+ ROI: 1,000+%

Digital & Business Key Metrics Example

A mature digital presence with full customer journey attribution can yield:

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Future…

Predictive Modeling

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Effectiveness Sales

+ Give sales the right information to close more business in less time

+ Sales alerts + Predict who will buy

in the future + validated

engagement scoring +

Establishes predictable, efficient sales path that takes less time

SALE

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Thank You

Data Education

+ Data Maturity Model

+ White Paper: Closed Loop Marketing Attribution

+ Webinar: Close the Sales & Marketing Loop

@tkahlow

thad.kahlow@businessol.com

@BOLoptimized