how to create dashboards that don't sit on a shelf
DESCRIPTION
Now more than ever, marketing managers need to sift through an ocean of data to find information that is actionable. People struggle to get past the "so what?" playing in their head as they look for ways to increase sales, cut costs, or ensure quality. Dashboards only make this problem worse with fancy data visualizations and dozens of metrics all in one place. Truth is, most dashboards just sit on a shelf, without adding value to the firm. What's missing is an action plan. The webinar is presented by Roy Wollen, president of Hansa Marketing Services. It covers the common pitfalls of marketing dashboards as well as good and bad case study examples. Watch and learn how to start solving business problems with effective marketing dashboards. If you are responsible for business intelligence and use dashboards to communicate marketing information, contact us to see how we can help. Don't let your dashboards will just sit on a shelf! Use them to solve business problems. Don't miss our next free online webinar. Register here: http://hub.am/XwTIKo www.HansaMarketing.com @Hansa_TweetsTRANSCRIPT
Dashboards
How to create dashboards that don’t sit on a shelf
HANSA Brand Consulting
HANSA Analytics
HANSA Market
Research
HANSA Marketing
Communication
Who’s Hansa?
2
Hansa is a global organization
3
250+
Who are we working with?
4
Agenda
Executive summary
– What is an effective dashboard?
Effective campaign dashboards
Effective customer dashboards
10 tips for effective dashboards
5
You’re off to a bad start if…
…you hear dashboard users say
– “So what”
– “nice to know” – what am I supposed to do next?
– “where’d this number come from?”
– “can this be right?”
– They are already inundated with data, how will yet another dashboard help them?
…you begin your development with visualizations in mind (dials, gauges, thermometers)
– Stop looking to airplane cockpits for the answer
– Don’t fall in love with a pretty (inter)face
6
Why do dashboards sit on a shelf ?
Lack of planning, lack of buy-in
No champions to socialize your work
– “Management doesn’t support me”
– “Finance thinks all I want is more money for marketing”
Data pitfalls:
– Users stumble on definitions, calculations
– Numbers look suspicious “this can’t be right”
– No callouts or explanations, “you figure it out” attitude
– Spotty data feeds, lots of asterisks and insignificant results
Effective dashboards require planning
7
Effective dashboards always…
Lead to actions
Have impact on the business
Are part of decision making
– Good news|bad news?
– Going up|going down?
– Something worked
– New customer insights
8
Key takeaway of this webinar:
Effective dashboards always have
actions attached to measurements
Agenda
Executive summary
– What is an effective dashboard?
Effective campaign dashboards
Effective customer dashboards
10 tips for effective dashboards
9
If the goal is to ensure marketing accountability…
Repeat ROI objective, then benchmark against it
Repeat the marketing strategy
– Tip: Insert an example of the creative
Associate actions with results
– Reallocate marketing investment – channel, vehicle
– Try new things (e.g., sweeten offer to acquire customers, reduce the offer for existing customers to optimize margin)
Why do you think something happened?
– Plan on adding annotations, explanations, glossary
– Plan on making recommendations
10
Example of KPIs as they relate to targets
Key Performance Indicators (KPIs) relative to target
Restating observation vs target
11
Source: Klipfolio
Example of annotations, definitions, narrative
Annotation/callout
– What else was in market?
– What was the competition doing?
Definitions
– What is a “customer”? What time period are we looking at?
– Are you using Gross or Net Margin?
12
Source: Klipfolio
Example of comparisons
Year over Year (YoY) and Month over Month (MoM) example from ClearSaleing
13
Example of funnels
14
Funnel example from VisualIQ
Salesforce.com funnel describing the stages of b2b marketing
Omniture’s SiteCatalyst digital marketing funnel
%’s represent conversion to
the next phase
How do these compare YoY,
MoM?
Each number brings up a question:
What were the best sources?
Which attracted new customers?
Funnel example from Value Watcher
Example of paths
15 Illustration from Microsoft Atlas whitepaper
Google Analytics visitor flow
ION Infographic referencing MarketingSherpa statistics
Campaign dashboard example
Campaign analytics measure audiences, offers, ideas
16
Channel Buyers Trans Sales Sales/Piece Margin GM% AOV
Resp
Rate
Resp
Rate 2
Retail 200,000 250,000 10,000,000$ $2.50 5,000,000$ 50.0% 45.00$ 4.0% 4.5%
Direct 100,000 130,000 5,000,000$ $1.50 2,500,000$ 50.0% 35.00$ 3.0% 3.2%
Total 300,000 380,000 15,000,000$ $3.00 7,500,000$ 50.0% 40.00$ 3.8% 4.0%
List Priority Circ AOV Resp Rate Sales/Piece
1. List x 1,000,000 $55.00 3.2% $2.00
2. List y 2,000,000 $45.00 4.9% $3.00
3. List z 2,000,000 $35.00 4.6% $4.00
5,000,000 $40.00 3.8% $3.00
Market Circ AOV Resp Rate Sales/Piece
Key market 1 1,000,000 $50.00 6.0% $4.00
Key market 2 4,000,000 $35.00 2.0% $2.00
Grand Total 5,000,000 $40.00 3.8% $3.00
Discount Circ AOV Resp Rate Sales/Piece
$25 off 1,000,000 $55.00 5.0% $4.00
$35 off 2,000,000 $65.00 6.0% $1.75
Gift w Purchase 1,900,000 $25.00 2.0% $2.00
Control group 100,000 $40.00 3.0% $2.00
Grand Total 5,000,000 $40.00 3.8% $3.00
Distance to Store Circ Buyers Trans Sales Sales/Piece Margin AOV
Resp
Rate
Resp
Rate 2
Within 1 mile 300,000 90,000 110,000 4,000,000$ $13.33 2,000,000$ 55.00$ 7.0% 7.2%
2 miles 200,000 50,000 75,000 3,000,000$ $15.00 1,500,000$ 45.00$ 6.0% 6.5%
3 miles 500,000 40,000 55,000 3,000,000$ $6.00 1,500,000$ 50.00$ 6.0% 6.4%
4 miles 500,000 40,000 50,000 2,000,000$ $4.00 1,000,000$ 45.00$ 5.0% 5.5%
5 miles 500,000 35,000 40,000 1,000,000$ $2.00 500,000$ 25.00$ 4.0% 4.0%
6 to 10 miles 1,000,000 20,000 22,000 900,000$ $0.90 450,000$ 40.00$ 2.0% 2.2%
11 to 15 miles 1,000,000 15,000 16,500 650,000$ $0.65 325,000$ 35.00$ 1.5% 1.7%
16 to 20 miles 1,000,000 10,000 11,500 450,000$ $0.45 225,000$ 35.00$ 1.0% 1.2%
TOTALS 5,000,000 300,000 380,000 15,000,000$ $3.00 7,500,000$ 40.00$ 3.8% 4.0%
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Customers buying from 16498; the 1/11 Acquisition event
16498 - 1/11 Acq
Email dashboard example in Excel
17
Overall health of the program (each tab is a deep dive)
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Email Capture Rate TrendYes
%/Total
Linear (%/Total)
Strategic review leveraging a dashboard
Strategic review with alerts and recommendations
Supports a recurring meeting
18
Sales this week last week + / - month to date run rate vs. last year + / - vs. plan + / -
Search $1,174,583 -65% - $1,174,583 $1,174,583 -65% - -65% -
Paid Search $774,027 -65% - $774,027 $774,027 -65% - -65% -
Data Feed $400,556 -65% - $400,556 $400,556 -65% - -65% -
Affiliate $18,244 -65% - $18,244 $18,244 -65% - -65% -
Total $1,192,827 -65% - $1,192,827 $1,192,827 -65% - -65% -
Performance Summary
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Weekly ChartWeekly chart
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Affiliate
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Search Goal
Total Program
this week last week + / - month to date run rate vs. last year
Impressions
Visits (clicks)
Click charges/Pub. Comm.
Transactions
Sales ($)
PFX Fee
Total Fee
Cost per click
Conversion Rate
Avg. Order Value
Revenue share
Alerts
Agenda
Executive summary
– What is an effective dashboard?
Effective campaign dashboards
Effective customer dashboards
10 tips for effective dashboards
19
Goal of customer dashboards
Customer dashboards give campaign data context –
– it’s not about response rates and conversions rates but about loyalty, advocacy and lifetime value
Customer data brings all the channels together
Customer data adds to the missing ingredient for product sales:
– Who’s buying the product?
– What else are they buying (market basket analyses)?
– Is that product their first- or 10th purchase?
20
Because campaigns don’t buy, people do
– Customers are in control – more “pull” than “push”
– Customers see brands not channels
– Customers don’t care who gets credit for the sale
?
Price
Comparison
Search
Community
www.Brand.com
Store visit
Mobile
Why is customer data important?
21
1
2
3
.
.
.
2.
Customer
Centric
1. Batch & Blast
Mail1 Email1 Email2 Email3
Mail2
Y
N Y N Y
2 approaches to campaigns… 1. How “deep” should I
circulate?
2. What does my customer
want?
What’s wrong with Batch & Blast?
Batch & Blast is an old model of marketing outreach
– Selects audiences based on a marketing calendar
– Each campaign seen as a distinct event, leads to overmailing
– Response rates of 1% are acceptable (99% failure rate)
What’s wrong?
– Presumes customers are in market on our timetable
– Slave to “what have you done for me lately” mentality • Audiences are selected based on Recency – Frequency model for
expensive media such as telemarketing and direct mail
– For email, it becomes one size fits all • Anyone with an email address gets all email campaigns, no targeting
23
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Campaigns within a promo period
Campaign 1 Campaing 2 Campaign 3 Campaign 4 Campaign 5
What this looks like to a customer (mail edition)
What this looks like to a customer (email edition)
Customers being pummeled by email
Despite clear differences in engagement
Everyone gets the same level of attention
RFM and Email analysis
RecencyActive
Email %
Total
Emails
Emails
/Buyer Openers
% who
Opened Opens
Opens
/Buyer Clickers
% who
Clicked Clicks
Clicks
/Buyer CTR
0 - 3 Mos 70,960 74.6% 2,124,751 29.9 43,580 61.4% 339,099 4.8 33,304 46.9% 115,778 1.6 5.4%
4 - 6 Mos 79,305 83.4% 2,212,122 27.9 42,724 53.9% 342,965 4.3 30,743 38.8% 102,063 1.3 4.6%
7 - 12 Mos 131,193 80.2% 4,161,901 31.7 57,161 43.6% 407,003 3.1 36,133 27.5% 95,216 0.7 2.3%
0-12M buyer 281,458 79.5% 8,498,774 30.2 143,465 51.0% 1,089,067 3.9 100,180 35.6% 313,057 1.1 3.7%
13 - 18 Mos 110,122 75.2% 3,550,586 32.2 44,609 40.5% 310,592 2.8 27,159 24.7% 65,970 0.6 1.9%
19 - 24 Mos 94,968 71.7% 2,813,285 29.6 33,669 35.5% 221,741 2.3 19,487 20.5% 43,939 0.5 1.6%
25 - 36 Mos 160,279 67.4% 4,036,381 25.2 49,156 30.7% 308,036 1.9 27,007 16.8% 57,400 0.4 1.4%
37 - 48 Mos 73,727 44.8% 2,173,384 29.5 21,294 28.9% 135,273 1.8 11,350 15.4% 23,129 0.3 1.1%
49+ Months 60,842 24.9% 2,035,069 33.4 16,946 27.9% 111,304 1.8 8,953 14.7% 17,889 0.3 0.9%
Grand Total 781,396 61.1% 23,107,479 29.6 309,139 39.6% 2,176,013 2.8 194,136 24.8% 521,384 0.7 2.3%
25
Enter customer dashboards
Customer dashboards start with the customer lifecycle
– Acquisition versus Retention versus Reactivation
– The way customers begin makes a difference
Customer dashboards provide the longitudinal view
– Customer segmentation comes first
– Each segment has joiners, stayers, leavers as times goes by
– Each has its own repurchase rate and value
– Each has its own trajectory (rate of change)
Most importantly, each scenario has an action plan
– Example: Triggered communications
26
Step 1a: Customer segmentation
Customer segmentation based on value
27
Step 1b: Customer segmentation
Customer segmentation for new customers
28
Step 2: Joiners, Stayers, Leavers
Customer segments at Period 1
29
Period 1 =====> Period 2
Segment (conceptual) Operational Customers Joiners Leavers Customers Comments
Advocates 0-3M 3x+ $51+ 30,000 100 100 30,000 Looks like nothing happened
Repeat buyers 0-3M 2x $51+ 45,000 200 300 44,900
New and Hot 0-3M 1x $51+ 10,000 10,000 Welcome stream on steroids
New and Not 0-3M 1x $50 or less 25,000 25,000 Normal welcome stream
High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 1,000 5,000 26,000
High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 5,000 10,000 70,000etc.
Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 5,000 10,000 145,000 Best bets for winback
Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 5,000 9,900 245,100 Let them attrit
total 580,000 596,000
Step 2: Joiners, Stayers, Leavers
Customer segments at Period 2
30
Period 1 Period 2
Segment (conceptual) Operational Customers Customers
Advocates 0-3M 3x+ $51+ 30,000 30,000
Repeat buyers 0-3M 2x $51+ 45,000 44,900
New and Hot 0-3M 1x $51+ 10,000
New and Not 0-3M 1x $50 or less 25,000
High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 26,000
High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 70,000etc.
Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 145,000
Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 245,100
total 580,000 596,000
Step 2: Joiners, Stayers, Leavers
Customer segments between Period 1 and Period 2
31
Period 1 =====> Period 2
Segment (conceptual) Operational Customers Joiners Leavers Customers Comments
Advocates 0-3M 3x+ $51+ 30,000 100 100 30,000 Looks like nothing happened
Repeat buyers 0-3M 2x $51+ 45,000 200 300 44,900
New and Hot 0-3M 1x $51+ 10,000 10,000 Welcome stream on steroids
New and Not 0-3M 1x $50 or less 25,000 25,000 Normal welcome stream
High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 1,000 5,000 26,000
High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 5,000 10,000 70,000etc.
Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 5,000 10,000 145,000 Best bets for winback
Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 5,000 9,900 245,100 Let them attrit
total 580,000 596,000
Step 3: Action plan - triggered communications
Behaviors that trigger a marketing communication
– Buying behavior (transaction, spend, ship status)
– Lack of buying behavior (time has gone by, abandoned cart)
– Channel behavior (bought online/pickup at store, loaded shopping cart/shopped at retail, “contact me” form)
– Loyalty behavior (enrolled in loyalty program, earned an award, redeemed an award, close to an award threshold)
– Segment behavior (rhythm of purchase, replenishment)
– Site behavior (transaction at the site- not individual level)
– Post demand behavior (return) or customer service call
32
Customer dashboard example
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Key Customer Metrics Main product 1 Main product 2 Main product 3Names through: Last Month This month Last Month This month Last Month This month Last Month This month
Customers 250,000 275,000 Order Penetration % Order Penetration % Order Penetration %
Total New 10,000 13,000New and Hot 1,000 1,300 20.0% 25.0% 20.0% 25.0% 20.0% 25.0%New and Not 4,000 5,000 30.0% 35.0% 30.0% 35.0% 30.0% 35.0%
Reactivated 10,000 11,000 40.0% 45.0% 40.0% 45.0% 40.0% 45.0%
Inactives 150,000 160,000Used-to-Be-Hot 1,000 500Lapsed Account 50,000 55,000"One and Done" 100,000 110,000
Rhythm
Buying monthly 50,000 50,000Twice a Month 10,000 10,000Weekly 5,000 5,000 20.0%
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Reliable 6M NTF Retention Trend#Accounts
Retention
Not about the tool
Integrate with existing work, don’t presume to replace anything with a magic dashboard
– The dashboard consumer is always going to add their spin
– MS Excel, MS PowerPoint
Don’t forecast; simulate
– Make your dashboard interactive with what if scenarios
My favorite dashboard solutions
– Alterian’s Alchemy, best campaign interface
– MicroStrategy, best integration with Microsoft Office
– Klipfolio, best marketing applications
– Tableau, best gallery beyond marketing
– Dundas, best visualizations
34
Push to PowerPoint
Push to PowerPoint
Agenda
Executive summary
– What is an effective dashboard?
Effective campaign dashboards
Effective customer dashboards
10 tips for effective dashboards
37
Ten tips for effective dashboards
1. Plan effectively, know your audience, get their buy-in ahead of time, survey them afterwards
2. Vet all of the KPIs before they’re published (especially with finance), centralize definitions
3. Don’t be afraid of MS Excel, promote dashboard’s ability integrate into someone else’s work
4. Show screenshots of the creative
5. Drill down for more detail; but be able to aggregate up for the contextual overview
38
Ten tips for effective dashboards
6. Less is more; don’t use visualizations indiscriminately, what are your top 5 KPIs?
7. Always put the numbers into context (e.g., trends, YoY comps, benchmarks)
8. Leave space for user commentary, reactions, disagreements; but start the ball rolling with your recommendations
9. Tell a story; don’t be boring
10. Every section should have an associated action
39
Effective dashboards always…
Lead to actions
Have impact on the business
Are part of decision making
– Good news|bad news?
– Going up|going down?
– Something worked
– New customer insights
40
Key takeaway of this webinar:
Effective dashboards always have
actions attached to measurements
Roy Wollen President, Hansa Marketing Services Inc. (847) 491-6682 [email protected] www.HansaMarketing.com http://www.linkedin.com/company/404316?trk=tyah