The Value of Mining (Big) Data… Without Scaring Your Customers

Matthew Quint Director, Center on Global Brand Leadership Columbia Business School gsb.columbia.edu/globalbrands @mattquint Data Driven Marketing Conference – August 20, 2013 [NOTE: Images for Prof. Netzer, Everyday Health, The Weather Company, and Target, have hyperlinks to video talks on the topic!]

…and not everything that counts can be counted - Prof. William Bruce Cameron

Not everything that can be counted counts…

Data Bigger Data BIG Data

Small No integration Unit collected

Large Some integration Firm collected

Massive Heavy integration Firm and external

All marketers want to be DATA-DRIVEN

Believe successful brands use data to drive marketing decisions

91%

But many are NOT COLLECTING the data they need

say their own company’s data are collected too infrequently

39%

Marketing ROI in the Era of Big Data: 2012 BRITE-NYAMA Marketing Measurement in Transition Study David Rogers and Prof. Don Sexton, Columbia Business School

TOO LITTLE

TOO INFREQUENT

NOT SHARED

NOT SPECIFIC

DON’T PERSONALIZE

“The evidence is clear:

Data-driven decisions tend to be better decisions.

In sector after sector, companies that embrace this fact will pull away from their rivals.” - Erik Brynjolfsson and Andrew McAfee, MIT (Harvard Business Review)

Five key

CHALLENGES of (Big) Data

Everywhere

Unstructured

Needs cleaning

Storage and processing

Privacy and security

Case studies on

THE VALUE of (Big) Data

1. Gain insights on brands or consumers 2. Understand what messaging works 3. Better target your communications 4. Your data becomes an asset to market 5. Continue experimenting

Brand and consumer INSIGHTS from (Big) Data

Brand insights Prof. Oded Netzer

Edmunds.com sedan forum <Brand>Honda</Brand>

<Model>Honda Accord</Model>

<Model>Toyota Camry</Model>

<Brand>Toyota </Brand>

<Term>Best</Term>

<Term>Sedans</Term>

<Term>Competent</Term>

<Term>Price</Term>

<Term>Love</Term>

<Term>Best selling</Term>

<Term>Best</Term>

Honda Accords and Toyota Camrys are nice sedans, but hardly the best car on the road (for many people). It's just that they are very compentant in their price range. So, a love fest of the best selling may not tell you what is "best".

Text mining

Network analysis

MODEL SENTRA COROLLA CIVIC

Commonalities

Differentiators

Economy | Small-car | Subcompact | Compact

Power Performance

College

Mileage Plastic parts

Mom/Daughter

VTEC Engine Hatchback

Mud guards

Edmunds.com brand sentiment

Consumer insights

MESSAGING EFFECTIVENESS from (Big) Data

American Luxury

Messaging effectiveness Prof. Oded Netzer

Based on JD Power PIN Data

Brand-switching map

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Import Luxury

American Brands

Linear (Import Luxury)

Linear (American Brands)

Brands mentioned alongside Cadillac

AMERICAN brands

LUXURY imports

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American

Linear (Import Luxury)

Linear (American)

Brands traded-in for Cadillac

AMERICAN brands

LUXURY imports

Demonstrate ROI

TARGETING improvements from (Big) Data

Better ad targeting

Cross-Platform Campaign Ratings

MARKET YOUR OWN (Big) Data

Stores care about the weather

Get acquired because of data

Continue

EXPERIMENTING

A/B Testing for Obama Campaign

DON’T FREAK OUT your customers

Charles Duhigg, “How Companies Learn Your Secrets,” The New York Times (Feb 16, 2012)

Target’s predictive analytics

Tracking your whereabouts

“I keep saying that the sexy job in the next 10 years will be statisticians. And I’m not kidding.”

- Hal Varian, chief economist at Google.

The data scientist

1.Quantitative

2.Technical

3.Curious and creative

4.Skeptical

5.Communicative and collaborative

Questions?

Matthew Quint Director, Center on Global Brand Leadership Columbia Business School matthew@globalbrands.org Data Driven Marketing Conference – August 20, 2013