ibm thought leadership thursday - marketing attribution roadshow presentation

© 2013 IBM Corporation@IBMEMM#AskMktgAttrib © 2013 IBM Corporation@IBMEMM

Introduction to Marketing Attribution

IBM Thought Leadership Thursday

Blair Reeves - Product LeaderIBM Digital Marketing Optimization BlairReeves

© 2013 IBM Corporation@IBMEMM#AskMktgAttrib

Shameless Self-Promotion Twitter

2

Check out the live tweet chat throughout the day at: #AskMktgAttrib

Also accessible through our custom tweet chat website: http://twubs.com/AskMktgAttrib

Have a question?

BlairReeves

RosettaMktg

IBMEMM

© 2013 IBM Corporation@IBMEMM#AskMktgAttrib3

• A Story: Fly First

• Digital Attribution 101

• Basic Components of Digital Marketing Attribution

• Advanced Attribution: Cross-Channel and Marketing Planning

• Case Study: Digital Attribution

• Q&A


Fly First is an international airline that has been collecting and analyzing customer data over many years.

But Jay, the CMO of Fly First, knew that the organization was just scratching the surface.


Jay and his team built detailed, individual pictures of customers by combining multiple data sources from behind and outside the firewall. They used interaction data like marketing responses, attitudinal data from social media, behavioral data including flight history and descriptive data such as seat preferences.


Jay had long leveraged analytics to identify profitable customers and increase customer retention. Now he is using it to predict behavior like upgrading seats or buying in-flight meals, as well as leveraging social network analysis to understand his customers' social networks.


Using Attribution to Improve the Customer ExperienceMeet Rick and Andrea, two Fly First passengers waiting

at a gate to board their flight to Chicago.

Customer Registration Data• Name, DOB, Location, Email, preferences, etc.

Transactional Data• Trip “Extras” Purchased• Purchase History• Loyalty Program

Digital Behavior• Content Preferences• Product/Promotion Affinities• Search, Browsing Data• Products/Itineraries Viewed• Messages/Promotions Received• Customer Responses







• Q&A


Identifying marketing influence on downstream objectives by analyzing marketing interaction sequences, affinities and weighted contributions.

What is Marketing Attribution?


Business Challenges Addressed by Attribution

And how do I divide credit?”

“What influences conversions?”





Attributed Metrics:• Forward/Backward-facing

attribution windows• Impression attribution• Search





“What influences customers to

migrate through the conversion cycle?”

“What campaign channel combinations drive the highest lift?”

“How long should I wait between customer communications?”









Attributed Journeys:• Customer lifecycle attribution• Multichannel attribution• Mobile device pathing• Social media







• Q&A


Attribution

Attributed Metrics

Click(Credit clicked channels)

Impression(Credit viewed channels)

Attributed Journeys

Sequences(Paths, Affinities)

Segments(Multi-channel, Lifecycle)

Attribution Types


Challenge Solution

How do I divide credit among all the marketing sources that influence visitor conversion?

Attribution Metrics

Which marketing sources most frequently influence conversions and site activity?

Attribution Metrics

Are we under or over invested in particular marketing channels or campaigns?

Attribution Metrics

How do I credit marketing impressions regardless of whether or not they were clicked?

Impression Attribution

Do those who view our shoes ads ultimately purchase shoes?


Business Challenges – Attribution Metrics


Direction

Backward: Which campaigns influenced/drove this conversion/activity? Looks backward in time to attribute credit to the appropriate marketing source(s).

Forward: What is the latent success of this campaign? Considers a marketing campaign and looks forward in time to attribute credit to the campaign.

Time Window The number of days for which activity will be analyzed.

Credit Logic

First: Apply all credit to the first source in the time window.

Last: Apply all credit to the last source in the time window.

Average: Apply equal credit to all sources in the time window.

Custom: Apply x% credit to the first source, y% credit to the last source, and z% credit split across all middle sources.

First

Time Window

Last

Time Window

Average

Time Window

35%

Time Window

Custom$30 $30

$10 $10 $10

$10.50$13.50

45%$6

20%

Allocating a $30 conversion…

Attributed Metric Definitions/Options


Analyze multiple attribution logic typesFirst, Equal, Last, Custom

Analyze multiple attribution windows

Create calculated MetricsStrong cycle initiatorStrong cycle closer

Analyze across all channels

Analyzing Attribution Metrics


Drill down to the detail level

Analyze forward and backward

attribution Analyze a wide variety of metrics

Analyzing Attribution Metrics


Analyze attributed margin

Attribute Search ROI


Customizing Attribution Logic



Measure the return on un-clicked display ads and their

impact on the visitor


Challenge Solution

How should I sequence my customer contact strategy? How long should I wait between communications?

Visitor Journey Insight:• Channel Combinations• Top Visitor/Customer Insight• Automated Customer

Lifecycle Analysis

What campaign channel combinations drive the highest lift?

How do my top contributors behave? How do I get more to act like them?

What influences our visitor to migrate to new milestones (e.g. buyers, 3x buyers, advocates, fanatics, etc)

What online marketing activities lead to offline transactions?

Multi-Channel Segmentation

Business Challenges – Attributed Journeys

© 2013 IBM Corporation@IBMEMM#AskMktgAttrib

Measuring the Customer Journey is Vital

24







• Q&A







What is my optimal marketing mix?

What channels should we invest in?









What is my optimal marketing mix?

What channels should we invest in?



Marketing Mix Modeling:• Managing cross-channel marketing

spend• Cross-channel attribution• Statistically inferred attribution


Cross-channel attribution drives marketing planning

eGoogle

Cross-channel data mart that contains stimuli and

responses

Statistically driven prediction of the contribution of marketing stimuli to a desired marketing

result

Marketing performance reports within each channel and across

channels

Optimally plan & optimize cross-channel media spend on

attributed performance of past campaigns & other insights

Attribution Modeler

Rules-based Attribution

Attribution Lift Analysis

Channel Performance

Strategic Planning

Channel Mix Planning

Channel Mix Optimization

Campaign Mix Optimization

stimuli

responses

Attribution Services

Performance Reporting

Scenario Planning

Marketing Mix Optimization

Cross-channel Interaction History


Marketing Mix Analysis At a Retailer : Cross-Channel Attribution Insights

• Responses might indicate more investment in SMS • Purchase credit heavily skewed toward email• Statistical Attribution Modeling helps rationally optimize channel mix

SMS

Catalogs

Direct

Mail

TelephoneEmail

Radio TV0

20

40

60

80

100

Attribution Credit by Channel Volume

%


Marketing mix and cross-channel planning Marketing Mix prior to using Attribution Modeler and after – 5 channel view

% o

f Rev

enue

att

ribut

ed to

Cha

nnel

0%10%20%30%40%50%60%70%80%90%

100%

Baseline Statistical Model

Web

Mail

Search

SMS

Email

Baseline using equal credit rule


Applications of Attribution Insight

Attributed Metrics:• Forward/Backward-facing

attribution windows• Impression attribution• Search

Attributed Journeys:• Customer lifecycle• Multichannel attribution• Channel/device pathing• Social media analysis

Marketing Mix Modeling:• Cross-channel attribution• Performance-based budgeting• Attribution modeling based on

statistical analysis

Site Data

Capture

Digital Data

Analytics

Cross-Channel Planning

• Optimization of discrete assets• Message testing• Display ad analysis/allocation• Search term inventory • Calculated metrics

• “Reality check”• Touchpoint combinations• Customer experience optimization• Advanced segmentation and

retargeting

• Channel optimization• Data-driven investment• Campaign mix optimization• Marketing performance

measurement


Direct Mail - ROIDirect Mail - ROI

Double counting

Marketing Leader’s pain – ROI numbers that don’t enable effective marketing planning

eMail - ROIeMail - ROI Search - ROISearch - ROI Social - ROISocial - ROI

No insight into overallmarketing ROI

Difficult to plan andoptimize marketing mix


Double counting

Understand Effectiveness Across Channels

Cross-Channel ROICross-Channel ROI

Understand overall marketing ROI

Optimizes marketing mix based on aggregated channel performance


So What Does This Mean for Andrea and Rick?

Good candidate for:• Social media outreach• Upsell promotions• Affiliate marketing

Good candidate for:• Social media outreach• Last-minute deals• Targeted messages

Analysis of digital interactions and

multichannel data

Scoring with attribution modeling

and statistical analysis







• Q&A


Data revealed no cannibalization problem Visitors who shift channels go to unpaid channels,

alleviating concerns of double payment for customer acquisition

Branded keywords play a larger role than perceived 10% of multi-click purchasers began with a branded term Cross-channel collaboration visibility was enhanced with

data discoveries; new strategies sprang from this understanding

PETCO wanted more than ‘last click’ to gain insight into the impact of other channels on conversion

Generated actionable reports and models with IBM Digital Analytics to measure attribution metrics

First, middle, and last click over time periods revealed actionable insights

Challenge

Results

Solution

PETCO is a privately held specialty retailer that provides products, services, and advice that make it easier for customers to be great pet parents. The company operates more than 1,000 stores in 50 states and the District of Columbia, as well as a leading pet products and information destination at www.petco.com.

Customer Profile

PETCO’s understanding of paths-to-purchase helps optimize spend

http://www.petco.com/


Learn More: • Enterprise Marketing Management: IBM.com/marketing-solutions• Digital Marketing Optimization: IBM.com/digitalmarketing• Digital Marketing Optimization blog: SmarterCommerceBlog.com/digitalmarketing

Follow us:IBMEMMBlairReevesRosettaMktg