marketing natives event #3 big data - simon hefti

2 Marketing Natives | Big Data in Marketing - Risks and Opportunities | 2014-09-15 | (c) 2014 D|ONE

EVOLUTI

ON


15’


DATA DRIVEN VALUE CREATION:

OPPORTUNITIES FOR MARKETING

RISKS

RECIPIE


OPPORTU

NITIES


EFFECTIVE CAMPAIGN

Identify perusable customers and lost

cases to define campaigns with high

sales/cost ration and which are perceived

well.


ANTICIPATE DEMAND

Identify products and/or services which a

specific customer might be using in the

future. Typically combined with campaign.


RECOMMEND DURING SHOPPING

Propose products which complement the

basket while shopping (in brick & mortar

shop).


DETECT COMPLAINTS

Conceive an early-warning system which

reacts on subtle signals in the client

relationship to indicate clients which you

risk losing.


ANTICIPATE ORDER

Prepare for an order even if the actual

order has not yet arrived, e.g. by pre-

delivering to close-by ware house

(Amazon) or by dynamic pricing.


DETERMINE OPTIMUM PRICE

Use a different price, drawn from a

distribution, for each proposal,

and track conversion to find optimum

price, i.e. price with best margin and best

acceptance.


DESIGN TO DEMAND

Use customer events to understand

preferences, and design product

accordingly (e.g. House of Cards).


RISKS


TRIVIAL RESULTS

Annoy customers with information which

they already have. Example: recommend

vacation location even though customer

has spent vacation.


≠ 42


WRONG RESULTS

Article on the Web:

«If TiVo Thinks You Are Gay, Here's How

To Set It Straight»


GO RIGHT


UNEXPECTED RESPONSE

Intention: subscription extension.

Response: cancellation.


PRIVACY INVASION

Drive customers away through concerns

about privacy invasion. Combine two

recent apple stories: selfies on iCloud and

health data on iWatch.


DATA MISUSE

Destroy brand by misusing data, e.g. to

define a personalized risk premium.

Note that misuse can also occur through

theft (recent story: leaked gmail

passwords).


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

RECIPIE


MITIGATE:

TRIVIAL OR WRONG RESULTS


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

USABLE DATA

Obvious, right? Important nevertheless.

Data is the core ingredient for data driven

value creation and needs proper handling.

Invest in good data.


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

THE RIGHT TEAM

You need a team which knows your

business and your data, can deal with the

data gaps and peculiarities, and masters

and maintains its tools.


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

MODEL MAINTENANCE

Predictive models are not based on first

principles. They are just tuned to work. No

guarantee that they still work next year.

Monitor model performance and maintain

the models.

Recent story: Google flu trends.


MITIGATE:

UNEXPECTED RESPONSE


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

SMALL BATCHES, ADAPT OFTEN

Instead of doing choose approach for all

customers / all products, use an

evolutionary approach and test ideas in

small batches. Adapt approach often and

select best performing.


MITIGATE:

PRIVACY INVASION AND DATA

MISUSE


TAKE AWAY #1

ES LOHNT SICH,

SICH SELBST ZU

ÜBERFORDERN.

GOVERNANCE

Define and publish standards and

guidelines for data use. Establish

processes to monitor and control data

use. Align with Datenschützer.


SUMMARY


THE

IMPACT,

STUPID.

marketing natives event #3 big data - simon hefti

Marketing

marketing risks

marketing natives big

health data

misusing data

data gaps

good data

es lohnt sich

sich selbst zu berfordern