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The successful analytics organization - Epsilon and Transamerica, LIMRA Data Conference 2015
The document discusses the establishment of a successful analytics organization, emphasizing the need for a clear mission, group identity, an analytics roadmap, a compelling framework, and requisite enablers such as data, tools, and people. It highlights the potential of marketing analytics and the struggles faced by CMOs in realizing its value, with calls for increased investment and a structured approach. Various strategies and case studies are provided that illustrate the implementation of advanced analytics to improve customer engagement and drive business results.
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Introduction to building a successful analytics organization focusing on excellence and best practices.
Only 17% of marketing analytics investments yield high contributions. 83% of organizations believe in analytics potential yet face challenges in realizing value.
Key strategies: establish a mission, create a strong identity, and develop a comprehensive analytics roadmap.
Steps to create an analytics roadmap covering discovery, gap analysis, outcome alignment, and priority mapping to enhance customer lifecycle management.
Framework focuses on using analytics to manage customer assets and opportunities through segmentation and marketing assessments.
Examples of segmentation, data mining, and real-time marketing strategies leading to improved customer engagement and experience.
Methodologies for measuring campaign effectiveness, optimizing marketing touchpoints, and achieving better outcomes through data-driven attribution.
Importance of enabling factors: data, tools, and skilled personnel in establishing a successful analytics operation.
Final remarks and open invitation for questions regarding the analytics strategies discussed.
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Similar to The successful analytics organization - Epsilon and Transamerica, LIMRA Data Conference 2015
The successful analytics organization - Epsilon and Transamerica, LIMRA Data Conference 2015
- 1. ©2014 Epsilon. Private& Confidential June 26, 2015 The Successful Analytics Organization
- 2. ©2014EpsilonDataManagement,LLC.Private&Confidential 2 Share our perspectiveon the underpinnings of a center of excellence in analytics and examples of best-in-class work. Objective
- 3. ©2014EpsilonDataManagement,LLC.Private&Confidential 3 Organizations believe in the potentialof marketing analytics… 83% increase in spending on marketing analytics by 2018 6.4% 11.7% 2015 2018 Contribution of marketing analytics remains low and is not improving …but the reality is CMOs are struggling to see the value. Low (1) High (7) (3.2) Source: Ad Age (2014 study by McKinsey, Duke University, and the AMA) http://www.cmosurvey.org/results Low (1) High (7)
- 4. ©2014EpsilonDataManagement,LLC.Private&Confidential 4 1) Establish amission for the analytics function – grounded in a clear understanding of the business imperatives 2) Create an identity for the group (branding) 3) Develop an analytics roadmap of initiatives that fulfill the mission 4) Build a compelling framework – a construct for end-to-end services that supports the branding and roadmap 5) Ensure the requisite enablers are place – data, tools and people A strategy for a Center of Excellence in Analytics.
- 5. ©2014EpsilonDataManagement,LLC.Private&Confidential 5 1) Establish a missionfor the analytics function. Sample Mission Statements “Provide a range of services that help marketers optimize the marketing mix – audience selection, offers, channels, cadence/frequency, messaging & creative” “Enable highly personalized communications that increase customer engagement and lead to improved marketing results” “Center for Advanced Analytics will utilize advanced analytics practices to build solutions for our customers, prospects and the organization, as a whole, which can be deployed to identify & drive our customer strategies”
- 6. ©2014EpsilonDataManagement,LLC.Private&Confidential 6 CDM (Customer Development Marketing) 2)Create an identity for the group (branding) and stake your claim as the preferred provider. Insights & Analytics CIA (Customer Insights & Analytics) Global Marketing Insights & Analysis CKS (Customer Knowledge System) Analytics ACE (Analytical Center of Excellence) CAV (Customer Analytics Vault) Analytics & ResearchCustomer Insights & Analytics Decision Sciences Group CKC (Customer Knowledge Center) COT (Customer Offers & Targeting) Center for Advanced Analytics
- 7. ©2014EpsilonDataManagement,LLC.Private&Confidential 7 3) Develop ananalytics roadmapDiscover stage • Assess the business • Account for all relevant areas of the business/lifecycle • Identify roadblocks and outline a mitigation plan Gap analysis stage • Understand the existing state • Outline the current state • Identify gaps and opportunities for improvement • Address any potential barriers Outcome alignment stage • Align analytics with goals • Document all goals • Tie analytics to goals (not vice versa) • Detail the scope and reach a consensus among all key stakeholders/ business owners Priority mapping stage • Estimate the level of effort required • Prioritize analytic projects • Communicate timelines, expectations and determined priorities 1 2 3 4
- 8. ©2014EpsilonDataManagement,LLC.Private&Confidential 8 … the roadmapshould support the entire customer lifecycle. Win-backRetain Strategicandanalytictoolkits Engage & growAcquisition Onboard Leads New customers Active customers At-risk customers Lost customers – Acquisition ✔ Predictive modeling ✔ Segmentation ✔ Contact and offer strategy – Customer/ market segmentation ✔ Identifyunique customersegments and communicate/ onboard them accordingly ✔ Short-termchurn / earlywarningmodel – Customer segmentation – LTV model – Up-sell / x-sell propensity model – Engagement scoring – Satisfaction / NPS survey design and analysis – Loyalty program – Attrition modeling, trigger, early warning detection – A survival analysis to predict “survival” propensity at different points in customer lifecycle – Reactivation model trigger, early warning detection – Lost customer survey
- 9. ©2014EpsilonDataManagement,LLC.Private&Confidential 9 4) Build acompelling framework “Analytics to manage the companies most important assets – customers”
- 10. ©2014EpsilonDataManagement,LLC.Private&Confidential 10 Identify distinct groupsand uncover opportunities for differentiated strategies. Develop a Foundation Segmentation (demographics, behaviors, attitudes/needs, value) Marketing Opportunity Assessment Market Basket Analysis
- 11. ©2014EpsilonDataManagement,LLC.Private&Confidential 11 Solution 1) Combine segmentationand trigger data 2) Data mining to uncover key influencers of 2nd product purchase propensities 3) Generate “next best offer” rules for timely, personalized communications Customer relationship deepening Connecting product sequence with customer life-stage, needs, and triggers to uncover purchase influencers. Situation Multi-line financial services provider had segmentation solution in place, but was unsuccessful in product x-sell CASE STUDY
- 12.
- 13. ©2014EpsilonDataManagement,LLC.Private&Confidential 13 Drive timely, targetedcommunications across the marketing lifecycle. Enable Connections Acquisition Models Attrition Models Cross/Up-Sell Models Value/LTV Models Uplift Models Recommendation Engines/ Real-time Offers Marketing Optimization
- 14. ©2014EpsilonDataManagement,LLC.Private&Confidential 14 Solution 1) Developed ContactStrategy Framework … enabling data-driven RTO deployment 2) Components: KPIs, segmentation, low latency & circumstance detection modeling, machine learning, test design and measurement Real-time offers Enabling relevant, real-time messaging for improved customer experience Situation Bank seeking to modernize marketing capabilities to deliver messaging at key interaction points, in real time Existing business strategies and marketing technologies did not support a real-time customer experience CASE STUDY
- 15. Discovery Design Build& Test Launch Measure Optimize Expand
- 16. ©2014EpsilonDataManagement,LLC.Private&Confidential 16 Measure & Manage Results Testand measure discipline to drive continuous improvement in business outcomes Media Mix Models Campaign/Dashboard Reporting Experimental Design Loyalty Program Financial Analysis Multichannel Attribution Global Control GroupsContact Cadence Analysis
- 17. ©2014EpsilonDataManagement,LLC.Private&Confidential 17 Multi-phase Solution 1) “Pathto purchase” views expose effective touch strategies 2) Attribution engine processes multi-touch transactions and calculates return on the various communication types 3) Periodic engine runs enable ongoing marcom adjustments Multichannel Attribution Achieving better marketing outcomes with fractional attribution Situation Issuer looking to move from last touch to data-driven attribution for greater measurement precision Numerous DM and EM communications used in high touch program to drive repeat card usage CASE STUDY
- 18. Purchase Influencers Touch 1Touch 2 Touch 3 Non- Transactors Transactors Index* Awareness 9.7% 9.3% 96 Sweepstakes 3.8% 7.7% 203 Cosmetic Qt 17.5% 7.6% 43 Cosmetic Qt Sweepstakes 3.0% 4.2% 139 Sweepstakes Vision 1.7% 3.8% 225 Vision Cosmetic Qt Vision 1.5% 2.9% 195 Vision 1.1% 2.7% 243 Birthday 4.9% 2.4% 49 Awareness Sweepstakes 1.7% 2.2% 131 Email_Checklist Cosmetic Qt 3.3% 1.8% 55 Awareness Cosmetic Qt 1.4% 1.7% 123 Sweepstakes Awareness 1.1% 1.6% 146 Awareness Awareness 2.1% 1.2% 57 Awareness Cosmetic Qt Sweepstakes 0.9% 1.1% 124 Cosmetic Qt Sweepstakes Vision 0.7% 1.1% 160 Cosmetic Qt Vision 0.3% 1.0% 321 * Index = Transactor % divided by Non-Transactor % times 100 Phase 1 - “Path to Purchase” Views TOP TOUCH SEQUENCES
- 19. Purchase Influencers $0 $100$200 $300 Care Credit Birthday 25 Years of Caring Sweepstakes Care Credit Awareness Care Credit Balance Paid Program Quarterly Cosmetic Program Q2 Vision $113 $268 $184 $93 $150 $226 DM $0 $2,000 $4,000 $6,000 Care Credit Birthday 25 Years of Caring… Care Credit Email Checklist Care Credit Awareness Care Credit Thousand… Quarterly Cosmetic Program CareCredit Vision $3,237 $3,656 $5,583 $1,936 $1,340 $4,746 $6,397 EM Phase 2 - Attribution Engine Results $1.27 billion attributed revenue on $3.4 million promotional spend DM - Care Credit Awareness, by Segment * Universal & Campaign Control Groups Response Models or Segments Communication Weights *Incremental revenue
- 20. ©2014EpsilonDataManagement,LLC.Private&Confidential 20 Dashboard reporting can target theC-suite with KPIs … … providing valuable information & boosting the visibility of the analytics function.
- 21. ©2014EpsilonDataManagement,LLC.Private&Confidential 21 5) Ensure therequisite enablers are in place 1. Data 2. Tools 3. People
- 22. ©2014EpsilonDataManagement,LLC.Private&Confidential 22 Data An analytic data martprovides a 360 degree view and offers substantial advantages.
- 23. ©2014EpsilonDataManagement,LLC.Private&Confidential 23 Data As marketing goes digital,a data management platform is needed to complement the ADM.
- 24. ©2014EpsilonDataManagement,LLC.Private&Confidential 24 Tools The toolkit isa function of the work to be done and data used.
- 25. ©2014EpsilonDataManagement,LLC.Private&Confidential 25 People Success requires a balanceof HARD and SOFT skills… …solid organizational structure and career-pathing are needed to attract and retain talent.
- 26.