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Tim Nagels, Business Lead Microsoft Dynamics

Franky Willekens, Head of Data Analytics BBDO

Forget about big data. Think big about any data.

October 2012: Franky goes to Las Vegas

Big Data. Customer Engagement. Marketing Accountability. DMA2012 Brings It All Together.

Survey participants DMA2012

91% wants to 34% is able to

What is the level of data maturity in your company? DATA

The Data Maturity Stairway

I capture customer data across different touch points

I consolidate customer data into one customer database

I analyze historical customer data (purchases, interactions, motivations)

I know what type of offer, channel and time is best for different customer segments

I uncover hidden patterns in customer data to predict what they are likely to do next

I deliver customized interactions at point of impact across touch points

Gather Data

Aggregate Data

Customer Insight

Targeted Communications

Predictive Modeling

Real-time contextual interactions

Today’s story

Relevance + Utility =

Customer Experience Leaders

+43.0% S&P 500 Index

+14.5%

Customer Experience Laggards

-33.9%

Reason 1

Reason 2

86% of customers are willing to pay more for a better customer experience

Silos in the organization

Data Silos

Marketing Sales Customer Service Billing Dept.

We live in the age of the customer. A 20-year business cycle in which the most successful enterprises

will reinvent themselves to systematically understand and serve increasingly more powerful consumers.

Forrester

•  Focus of the CMO should be on creating and safeguarding the customer experience!

•  Fueling innovation and new business models: CMO as firestarter...

•  Become owner of customer data that will guide and enable your company strategy.

Bigger role for the CMO

Overview

Managing the data Understanding the data Acting on the data

Managing the data Understanding the data Acting on the data

Volume - Variety - Velocity - Value

•  47% of women would share their mobile phone location with a retailer in return for a $5 credit

•  83% would do so for a $25 credit

Value for Value

Research Now

Two different data sources: ‣ Own data Ask the customer (explicitly)

Auto-populate data (implicitly)

‣  External data Paid

Open

Any data

Value for value in data gathering

Managing the data Understanding the data Acting on the data

Personas are a vivid description of your customer database records.

Socio-demo

Habits

Attitudes

Consumption

Media

Technology

Socio-demo

Habits

Attitudes

Consumption

Media

Technology

Customer Behavior Data

Research data Social listing data Media reports data

Third party data …

ANALYZE

SYNTHESIZE

Analyze Customer Data

Registration Data Web Browsing Email Response User Actions

Engagement level

User action 1

User action 2

max min

Clustering Database Data

Third Party Data

Shopper Panel data

Socio-demographic & Lifestyle data

Different who?

Engaging Emily

•  X% in db population •  Socio-demographic profile •  Shopping attitudes

•  A-Brands •  Coupon usage •  P&G category spend

•  Lifestyle data

Inactive Iris

Different what?

•  Content and offers •  Frequency

Site engagement •  Repeat visits x2 •  Time on site x9 Sales •  Double-digit growth with FlavorPrint users

Predictive Analysis

“We found that 74% of the time, our model could correctly predict the exact address.”

Uber

HISTORICAL CUSTOMER DATA CLIENT ID BIRTH DATE LOCATION … # TRANS JAN # TRANS FEB # TRANS MRCH

567678 25/11/1976 3400 8 2 0

566777 23/09/1987 3245 4 8 0

567789 11/08/1945 6700 6 8 6

445566 21/03/1967 9000 8 9 3

CURRENT CUSTOMER DATA CLIENT ID BIRTH DATE LOCATION … # TRANS APR # TRANS MAY # TRANS JUNE

567898 25/08/1956 2440 6 1 0

589777 13/09/1977 3000 4 8 0

467789 11/09/1969 2431 5 2 0

445578 12/05/1988 1000 8 9 2

TODAY

CHURN FLAG YES NO NO NO

T + X

CHURN PREDICTION

YES NO YES NO

LEARN

APPLY

How it works

What’s the most likely model of interest when repurchasing?

Initial enquiry data

(date, model, method, previous car…)

Purchase data

(date, model, engine type, options, …)

Driver data

(birthdate, location, dealer…)

Satisfaction data

(survey completion, …)

Attributes

Predicted Model of Interest

DM  pack     Email   DM  pack    

Es-mated  Repurchase  Date  

Targets  within    buying  window   Non-­‐responders   Non-­‐converted  

Test  Drivers  

Customized customer experience

A A

B

B

C

FMCG Company

Which is the most likely coupon offer combination that will trigger redemption?

Household data

(family size, age, …)

Online response data

(email open/click behaviour,…)

Profile data

(brand consumption, …)

Redemption data

(coupon redemption, …)

Attributes

Democratization of data science

Power to the marketeer

Managing the data Understanding the data Acting on the data

Relevance + Utility =

“A pre-planned series of integrated, targeted communications, content or services designed to deliver a personal experience

for the consumer across all touch points.”

Customer Journey Planning

From campaigns (ads) to customer moments (value)

1.  What are the make or break moments?

2.  How can this be a positive experience?

3.  What data do we need to help deliver the experience?

• Persona • Time • Place • Device • External Data { Context

5 golden rules for creating ‘contextual’ customer connections

#1 - Make it easy to interact

It’s CMR

#2 - Combine data and collaborate

Context creates new connections

#3 - Create value, not campaigns

"We are moving more and more toward service, personalization, [and] customization."

Guive Balooch, global director of L'Oréal's Connected Beauty Incubator

#4 - Make real-time data a reality

Data and technology ‘yes’, adding creativity and imagination ‘woohoo’

#5 - Think big about any data

Key takeaways

Relevance + Utility =

Requirements: •  Data driven culture •  People & Technology

Data-driven company culture

Strategy Data

User Experience

Optimize + Innovate

People & Technology

Next 48 hours?

1. What’s your next move on the data maturity stairway? 2. Who in your own organisation will you address and involve

in order to be able to move? 3. What value will you be offering beyond your product or

service?

Think big about any data

Thank you!

October 9th

IAB ThinkData November 20th