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  • 1. Applications of Social Media to 1-1 Marketing:Listen, Then TalkMagnify Analytic Solutions:Keith Shields, Chief Analytics OfficerRoni Leibovitch, Manager, Digital IntelligenceMindy Deatrick, Lead Consultant, Decision Sciences

2. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingAbout the Presentation Applications and Cheerios: Listen, PREDICT, then Talk Tons of applications, many of which are devoted to broadcasting messages toconsumers Listen, Then Talk: Social Listening From Dr. Cliff Lampe, Professor, UM School of Information: Social Media should NOTjust be used as a broadcast channel. From Sandy Carter of The Social Media Examiner: The first step when consideringsocial analytics is to establish a listening strategy. In social media, listening acts as aguide through the ever-changing and interesting world of the blogosphere. Difficult to find a definition of social listening, so Ill make one up (next slide)2Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. 3. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingOur Perspective Social Listening: The discipline of mining social media outlets for user-providedtextual data containing predictive signals about customer behavior. Our aim: predict consumer behavior, enhance 1-1 engagement 2012 AIMS: Quantifying the "Buzz" Effect: Integrating Social Media with Loyalty &Defection Models http://www.slideshare.net/dmadetroit/aims2012-marketing-associates-quantifying-the-buzz-effect Retention of customer data, predictive models built off that data, and targetedcampaigns based on those predictions are at the heart of the competitive CRMadvantage. In absence of accurate predictions of customers behavior, what makes us think theywill accept a particular offer or respond to our messaging? Data scraped from social media outlets are highly predictive.3Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. 4. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingThe Pervasive Interest in Social Media4Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. A lot of it, I think, is attributable to big, impressive numbers. Again from Dr. Cliff Lampe: Facebook has 1.2 billion users, Twitter has 500 million, LinkedIn has 200 million. And they are engaged: Facebook users share 684,000 pieces of content per minute, YouTubeusers upload 48 hours of video per minute, and Twitter users send over 100,000 tweets. BTW, in our 2012 presentation to DMAD, we (Roni Leibovitch, Mindy Deatrick, Keith Shields)noted that, per year, roughly 35,000 Twitter users express interest in buying a Ford. 5. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingSocial Listening5Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. (More specific to our clients) The discipline of mining social media outlets for user-provided textual data containing sentiment about, or potential inclination towards,relevant products or services. Back to our 2012 presentation for an example: Got my new computer yesterday and cant wait to get my new 2012 Ford Focus SEL in 4-6weeks! 23 Apr Am test driving Hondas and Fords 7 Apr Wed like to have a mechanism for intervening here. On April 7 this person indicatedhe was facing a choice between buying a Honda and buying a Ford. 6. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingSocial Listening6Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Whats missing from the definition and the example is what you do with thesentiment. Whats our STRATEGY? Sandy Carter of The Social Media Examiner tells us the final step in establishinga listening strategy is to create a social business strategy: Listening is not just a discipline. It is an embodiment of a social business strategyto address the mass volume of data every company faces today and offer ameans for evaluating this information to drive business results. 7. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingOur Social Business Strategy7Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.Before discussing tactical applications well take a stab at a social business strategy based onthe work weve done for clients to date. There are a few elements to it:1. Understand that sentiment captured through social listening is a strong signal about likely customerbehavior (from a purchasing standpoint).2. Establish processes for retaining as much customer data as possible (twitter handle, email, name,interests) as well as his/her tweets, statements, opinions, etc3. Use the signal in the customers data and sentiment to accurately predict the likely customer behavior(social analytics) and, on a 1-1 basis, create more enlightened and targeted communications withcustomers.4. Create links from social media data repositories to operational systems at customer touch-points sosocial analytics can be used in real time.5. Enable measurement and then measure. 8. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingTactical Applications: Improve Your Predictive Models8Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Take the emails from the customer base, and using the find friends feature, find thematching Twitter handleswhere we can. Follow your customers and LISTEN. Use text mining to find tweets related to your product,classify the sentiment as good, bad, or neutral. Store the statement and sentiment in thecustomer data warehouse, just as you would store a customers survey response. Rebuild your suite of CRM models include the sentiment variable. Empirically determinethe nature of the relationship between good / bad sentiment and loyalty (or defection). Result: good tweeters are more loyal than neutral tweeters, who are more loyal than badtweeters, who are better than customers who dont tweet about your product. Why is it a big deal to improve CRM predictive models? Next slide a refresher. 9. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingWhy You Want to Improve Your Predictive Models (1)9Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. (Forgive the bandwagon technique) Welleveryone else wants to: A recent survey of business technology professionals (see below) indicates that much ofthe interest in Big Data and Analytics is driven by (or at least correlated with) the desireto predict customer behavior:CRMPredictiveAnalytics 10. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingNo ModelUse a ModelProfit = $10,000Profit = $14,00040% improvementPopulationOrganicTake RateOfferTake RateIncrementalTakers100,000 10% 11% 1,000IncrementalRevenue$250,000ModelRankPopulationOrganic TakeRateOfferTake RateIncrementalTakers1 25,000 18% 19.80% 4502 25,000 14% 15.40% 3503 25,000 6% 6.60% 1504 25,000 2% 2.20% 50IncrementalCostIncrementalProfit$240,000 $10,000IncrementalRevenue$112,500$87,500$37,500$12,500IncrementalCostIncrementalProfit$104,000 $8,500$82,000 $5,500$38,000 ($500)$16,000 ($3,500)Why You Want to Improve Your Predictive Models (2) An example involving a pre-approval program: An untargeted (no model), incentivized loanoffer to 100,000 customers increases the take rate by 10%. The revenue per incremental loan is $250. The cost of communicating the offer to 100,000 consumers is $20,000. The cost of the incentive is $20 per loan. When we apply a predictive model, we split the population into 4 groups (1=most likely totake4=least likely to take) 11. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingTactical Applications: Engage In Market Customers With Private Offers11Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. LISTEN to tweets: Use text mining to find Ford in market tweets, route the tweets, alongwith Twitter handles, to the customer relationship center. THEN TALK: Engage the customers through Twitter with pre-determined offers forcustomers expressing in market sentiment. Design the communication so that response can be easily attributed and measured:AUTHOR FOLLOWERS COMMENT DATETIMESend offer 2 Send info IgnoreYOSHRAMOS 6The 2012Lincolns are handsome!I want to have one :)9/21/201217:10 Send offer 1 Send offer 2 Send info IgnoreJAKUNTRYGIRL 252I want a new Lincoln...justbecause it parks itself. :9/21/201211:16 Send offer 1Send offer 2 Send info Ignore_AINTSHELOVELY 95I really want that Black on Black 2012Lincoln MKZ. Sexy.9/21/20120:19 Send offer 1 Send offer 2 Send info IgnoreCHELSEYMMILLER [email protected] between a 2012Lincoln MKZ and a Volvo S609/21/201219:19 Send offer 1 12. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingTactical Applications: Prospecting Student Loans12Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Use the APIs to find people of the student age. Gather their interests and hobbies is also a goodthing to do remember that prop schools (DeVry, ITT Tech, Art Institutes, etc) are also expensive andare Title IV eligible. Obviously here the sentiment of the tweets and posts is also telling. The need for forward-flow programs for private student loans is increasing but the rate at which theyare offered is decreasing. The student lending industry is virgin territory for database marketing andCRM analytics. And the student lending is not a trivial piece of the financial services sector: $1 trillion in outstanding studentdebt, #2 behind mortgages. 70% of current college students have a loan, 90% of those loans are government originated. Since 1986 the cost of living has doubled in the US, and the cost of education has increased by almost 500%. Who is more active in social media than people of student age. No one quite frankly. 83% of 18-29 year olds use social networking sites. 13. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingTactical Applications: Evaluating Credit Risk (1)13Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Using the student lending example as a springboard, can we use social listening morebroadly in the financial services industry? The answer is yes if we can use it to help us evaluate risk. Analytics in the Financial Services industry is all about evaluating risk for the purpose ofunderstanding how to price and set reserves. Back to the Google Twitter search (this guy has 470 followers): My loan servicerthreatened to default on my loan. I found a way around it though. I logged into their siteand typed loan.preventDefault(); Rightly or wrongly, many employers think what you post on Facebook, what you say ,and how you say it are predictive of what kind of employee youll be. So by extension 14. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingTactical Applications: Evaluating Credit Risk (2)14Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Sameer Desai, Homer Simpson, and crayons Time at address and checking accounts Originations risk, behavioral risk, and pricing 15. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingClosing Remarks15Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. Social Media contain powerful predictive signals about customer behavior. Capturingthose signals through social listening can help you create more informed, more fruitful1-1 engagements with customers. Social listening strategies must align with, and be integrated into, your predictiveanalytics and CRM strategies. Acquiring and maintaining social listening capabilities requires investment. Dr. Cliff Lampe (again): dont simply outsource to the youngest member of yourorganization. But much of this investment is simply and extension of the investment youre alreadymaking in CRM: data retention, infrastructure, analytics, and measurement.Connect with and mention @MA_Detroit on Twitter and stop by the Magnify booth tostay up-to-date on social listening news and updates! 16. magnify simplify amplifyMagnifyAnalytic SolutionsDMA Detroit 2013: Applications of Social Media to 1-1 MarketingQuestions16Copyright 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC. At this point I will listen. 17. 777 Woodward AveSuite 500Detroit, MI 48226p 313.202.6324f 313.965.2800Sameer [email protected] [email protected] [email protected] 2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.