businessonline on big data at ses chicago 2013

BIG DATA:How to gather, analyze & react…Drive Marketing ROI

@BOLoptimized

#SESCHI

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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 Produc

t

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 or High Consideration + B2B Magazine Interactive Agency year

+ Top Agency: 2008, 2009, 2010

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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+Adopt new channels to engage & stay connected with customers.

+Draw more insight from data…make customer intimacy priority #1

By…Re-Invent Customer Relationships:

Solution

CEO

“78% 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 entire life cycle

Capture Value, Measure Results+ Quantify, analyze and justify the financial

results of marketing initiatives

Solution

CMO

Simplify please…

Why Data?Why Attribution?

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 withData

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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

AttributePersonalize

Close the Loop

Close the Loop

AttributeSuccess

DriveBusinessOutcomes

More Effective Sales

Strategy Starts

Data Framework

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Customer Journey

Validated Score

Attribute

Personalize

Close the Loop

Close the Loop

AttributeSuccess

DriveBusinessOutcomes

More Effective Sales

Strategy Starts

Data Framework

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Collect Data

Company Buying Journey

“…companies are seeing an average

15-18% Lift in Revenue… As result of implementingclosed-loop & Optimizing”

- Tina Moffett, Attribution Analysts Forrester Research

Close the LoopStep 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

Marketing to Sales Outcomes

Attribute SuccessStep 2

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Single TouchAssigns 100%credit to the lastor first exposure

First/Last Touch

Rules-BasedAssigns credit to eachinteraction based on specific business rules

Even Weights Custom Weights Time Decay Positioned Based

Statistically DrivenAssigns credit to eachinteraction based on adata driven model

Regression Model Probabilistic Model

Type

Approach

100% DisplayE-Mail Search

33% 33% 33%

DisplayE-Mail Search

27% 49% 24%

Basic Advanced

Primary

Attribution Model Types

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Single Touch

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

Undervalues other influencers (and interactions), including sales efforts

Rules-based

Assigns arbitrary values to each specific marketing tactic

Subjective and lacks analytics rigor to determine weights

Statistically Driven

Can be expensive to execute

Some Marketers feel uncomfortable with an algorithmic, “black box” approach

Type

Pitfall

100%DisplayE-Mail Search

33% 33% 33%

DisplayE-Mail Search

27% 49% 24%

Basic Advanced

Model

Pitfalls

Validated Engagement Factors(Validated Attribution)

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VEF

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

Validated Engagement Factor

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

Closed Loop

Path to Success+ Determine path to success: what did prospects do before they became clients?

+Aggregate past 50+ clients- create statistically significant = validated

Validated Engagement Factors

Validated Attribution

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+ Normalize: + Analyze prospect engagement activity over 1- 24/mo+ Create a Normalized engagement score = 100 (mean).+ Lead engagement scores > 100 Score =

+ “demonstrating sales likelihood behavior”

+ Analyze for Insights: Prospects actively in the funnel

+ Engage: Get Personal+ Content personalization, + $ remarket, + click to chat+ Sales contact

Video

Engagement Factor Score

Validated Engagement Factors

Validated Attribution

Company Attribution

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+Typically measured @ individual level

+KNOW B2B process is in groups (11 roles)

+Every known lead, we can have 10+ unknown visitors

+View opportunities at the aggregate company level

Attribution Video

Company Attribution

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7 visitors vs. 173 visitors= +17,200%

For all Marketers- give us our true credit”

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

Drive Business OutcomesStep 3

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General experience Personal experience Convert Increase sales

SALE

Create a Tailored Experience

Personalize+ Serve the Right :

Experience, Message, Content+ To the Right Person

+ In the Right: Role, & Industry+ At the Right time

+ On the right device+ Based on past success (Validated)

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Unbridled opportunity to Personalize

Amazon for B2B/High Consideration

+ Someone in your vertical

+ Someone in your role

+ At this stage of research

+ Looking for to solve this problem

+ Has found this piece of information valuable

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Future…

Predictive Modeling

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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