rapid fire analytics attribution strategy
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Rapid Fire Strategy
How Rackspace Uses EMM Attribution Techniques to Improve Marketing Goals
Twitter:#SmarterCommerce | @IBMEMM
Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
• IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.
• Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.
• The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.
• Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.
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Speakers
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Sameer KhanHttp://www.keywebmetrics.com
Senior Marketing Manager, Rackspace
David ReedSenior Marketing
Analyst, Rackspace
Ravi ShahProduct Manager,
MPO
Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
“What campaign channel combinations drive the highest lift?”
Business Challenges Addressed by Marketing Performance
AnalysisStrategy
Mar
keti
ng
L
ead
ers
Marketing Analyst
CMO
Marketing Manager
And how do I divide credit?”
“What influences conversions?”
“What influences customers to migrate through the
conversion cycle?”
“How am I performing against my forecast and what do I need to change to stay on track?”
“How can I strike the right balance between competing marketing objectives (e.g. revenue vs profit)?”
“What is my optimal marketing mix under different scenarios?”
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Two simple reasons why accurate attribution is important
Understand marketing ROI of past activities
Plan and optimize future marketing mix
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Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Two simple reasons why accurate attribution is important
Demonstrate marketing’s value
Increase marketing’s value
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Rackspace’s journey towards optimizing marketing mix
Coremetrics AttributionMonthalizer
modeller
Attribution ModelerMarketing
Performance Optimization
1. 2.
4. 3.
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ABOUT RACKSPACE®
Important Facts & Figures*
200,000+CUSTOMER
S84,000+ SERVERS
5,500+ RACKERS
10 GLOBAL DATA
CENTERS
120 +COUNTRIE
S
60%FORTUNE® 100
OFTHE
WE SERVE
Annualized Revenue
OVER $1BILLION $$$$
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Phase 1- Coremetrics Attribution
Coremetrics AttributionMonthalizer
modeller
Attribution ModelerMarketing
Performance Optimization
1. 2.
4. 3.
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Disconnected CRM and Web Analytics
• More than 50% of the leads are generated through chats and phone• Rep enters the lead data into CRM manually• Significant amount of time spent data cleanup and manually integrating
systems
Live Chat CRM
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Solution – Coremetrics CRM Integration
Significant reduction in report creation
Built-in 180 day backward looking attribution
Coremetrics UI accessibility
Live Chat CRM
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Revenue Attribution for Utility Products
• Users can create a free Rackspace cloud account• Pay per usage billing model starting at 10¢/GB/month• Marketing Channel level ROI attribution was a major challenge
Free Cloud Account
Usage based billing
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Phase 2- Monathalizer Modeler
Coremetrics AttributionMonthalizer
modeler
Attribution ModelerMarketing
Performance Optimization
1. 2.
4. 3.
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Attribution Based Budgeting (ABB)
• Traditional Media mix methods are becoming obsolete• Campaign attribution throws unidirectional media mix off the charts• Big need for bidirectional budgeting models
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Solution: IBM Lifecycle Channel Attribution
40%30%
10%20%
Order on 6th Visit
60%
15%25%
Order on 1st Visit
Huge Variability
Channel Mix
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Solution: Developing Attribution Based Budget Models
Channel Mix Control Panel
Confidential © Rackspace US, Inc. All rights reserved 16
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Phase 1 & Phase 2 helped answer key tactical questions
AnalysisStrategy
Mar
keti
ng
L
ead
ers
Marketing Analyst
CMO
Marketing Manager
And how do I divide credit?”
“What influences conversions?”
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Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Phase 3- IBM Attribution Modeler
Coremetrics AttributionMonthalizer
modeller
Attribution ModelerMarketing
Performance Optimization
1. 2.
4. 3.
Statistical attribution for
better understanding of
performance drivers
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Popular attribution methods
Last Response – the last action taken by customer receives full credit (response)
First Response – the first action taken by customer receives full credit (response)
Average Credit - all actions that incurred a positive response within campaign window receive same credit
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These attribution approaches yield mixed results…
EMAIL DIRECT MAIL
e
SEARCH
Last Response
First Response
.25 Equal – Response
1
1
Equal – Response.25 .25 Equal –
Response .25
TV
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They don’t tell the whole story…
EMAIL DIRECT MAIL
e
SEARCH
awareness influencer influencer conversion
TV
.17
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…statistical attribution modeling can provide a more precise view of campaign value
EMAIL DIRECT MAIL
e
SEARCH
.31awareness
.17influencer
.14influencer
.38conversion
Statistical Attribution
TV
.17
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Statistical modeler identifies the true winner allowing marketers to efficiently invest marketing budget and avoid over/under spending
LT winning offer SIRA winning offer #Occurrences
Natural Search Referring Sites 208
Email Marketing Natural Search 26
Natural Search PPC D. 22
PPC D. Referring Sites 21
PPC C. Referring Sites 19
All Other MMC Vendors Natural Search 15
Email Marketing Referring Sites 14
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Attribution Modeler helps in understanding contribution of each channel
What is the contribution of each channel in driving marketing ROI?
• True cross-channel attribution
• Statistically inferred response attribution (SIRA) prevents errors
• Efficient marketing budget investment and better ROI measurement
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Attribution Modeler provides 5 attribution approaches for a more precise view
Display Ads
Search
Social
Referral
Call Center
POS/ Kiosk
Direct Mail
Web Site
Mobile
Mass Media (future)TV Ads, Radio Spots, Billboards
Cross-cha
nnel Attribution via M
arketin
g Perform
ance Opt.
Digital A
ttribution via Digital
Marketing
Attrib
utio
n M
an
ag
em
en
t
Attribution M
odeler
Interaction History
Marketing performance measurement
KPI measurement across channels and programs
– Cost and Revenue– Return on Investment– Number of Responses– % Response– Number of Responders– % Responders– Average Revenue per response
Attribution comparison– SIRA (Statistically Inferred
Response Attribution) – Cross-channel last touch– Cross-channel first touch– Cross-channel equal credit– Direct Attribution
Attribution Engine
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Phase 3 helped understand cross-channel performance
“What campaign channel combinations drive the highest lift?”
AnalysisStrategy
Mar
keti
ng
L
ead
ers
Marketing Analyst
CMO
Marketing Manager
And how do I divide credit?”
“What influences conversions?”
“What influences customers to migrate through the
conversion cycle?”
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Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Phase 4- Marketing Performance Optimization
Coremetrics AttributionMonthalizer
modeller
Attribution ModelerMarketing
Performance Optimization
1. 2.
4. 3.
Data-driven marketing mix
allocation
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Data-driven Strategic Marketing Planning
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Uncover the optimal
sequence of future actions
Determine the value of
marketing touch
Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Marketing Performance Optimization Maximize marketing ROI by optimizing marketing investment and improving marketing operations
Current capabilities New capabilities
Tactical focus
Deliver insights about past
Strategic focus
Recommend concrete future actions
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Data-driven Strategic Marketing Planning
Interaction History
Market Mix Analysis
(Rich visualizations
)
Marketing Performance
Reports
Customer Micro-segmentation
Attribution Modeler
Scenario PlanningMarketing Performance
Forecast
Performance Forecaster
Optimized Marketing MixBudget Optimizer
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Scenario Planning and Marketing Mix Analysis Allow users to create what-if scenarios and deliver data-driven analytics to optimize marketing mix under each scenario
Gold; 12000; 39%
Silver; 10000; 33%
Other; 8500; 28%
Marketing Mix By Segment - Scenario A
Gold; 11000; 36%
Silver; 9000; 30%
Other; 10500; 34%
Marketing Mix By Segment - Scenario B
Scenario A Scenario B$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000$30,500.00
$32,500.00
Marketing Mix - By Channel
Social
Mobile
Web
Direct Mail
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Marketing Performance Optimization Vision
Leverage Big Data and Smarter Analytics to maximize marketing ROI across
channels
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Sameer Khan / David Reed
• [email protected] / [email protected]
• Rackspace
• Senior Marketing Manager / Senior Marketing Analyst
• @sameerkhan / @davidreed
Ravi Shah
• IBM
• Product Manager, MPO
• @shahravi
Follow us on Twitter for latest product updates, etc.
• @IBMEMM
Questions and Answers ….
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© IBM Corporation 2012. All Rights Reserved.
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Copyright and Trademarks
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