[dmexco 2015 Work Lab] Data is Your New Oil - Identity Your Faster Horse | Spencer Altman, Head of...

Data is your New Oil, Identity is your Faster Horse

Spencer Altman, Head of Business Consulting

“A new research report on marketing analytics shows that brands plan to increase their spending on the category by a

whopping 73 percent over the next three years. For big market cap B2C companies, it’s closer to a 100 percent

increase.”

Source : http://venturebeat.com/2015/08/21/new-research-companies-plan-to-massively-increase-spend-on-marketing-analytics/

Zalando buys Fashion Event Organiser ‚Bread & Butter‘

-- June 2015

Source : http://www.gala.de/beauty-fashion/fashion/fashion-week-berlin-die-

highlights-der-modewoche_1279665_225720.html

Source : http://www.internetworld.de/technik/database-marketing/telekom-

gruendet-tochterfirma-emetriq-1002483.html

Media Company attempts to buyPrice Comparison

Source : http://www.sueddeutsche.de/wirtschaft/medienkonzern-pro-sieben-sat-erwaegt-verivox-uebernahme-1.2357147

Source : http://www.wsj.com/article_email/can-google-outsell-amazon-and-ebay-1431730741-lMyQjAxMTE1ODEwNTYxMTU2Wj

Source : http://www.retaildetail.eu/en/eur-europe/eur-general/item/17595-google-and-facebook-gain-access-to-bank-account-information

“If I had asked my customers what they wanted, they would have said a faster horse.”

-- Henry Ford

What is your

faster horse?

What customers do…

One Customer

Single Customer

Profile

Coordinated Approach

What we want…

We want to avoid silo‘d customer communications

Each channelacts

independently

Treats a singlecustomer like many different

people withuncoordinated,

irrelevant contact

Consumer Value Creation Chain

Entertain

Want/

Problem

Recognition

Information

Search

Price

AlternativesConversion

Post-

Purchase

Consumer Value Creation Chain

Entertain

Want/

Problem

Recognition

Information

Search

Price

AlternativesConversion

Post-

Purchase

Media Companies

e-commerce

Finance

TravelPrice Comparison

Consumer Value Creation Chain – Conversion Sites

Entertain

Want/

Problem

Recognition

Information

Search

Price

AlternativesConversion

Post-

Purchase

Since 2000 Since 201X

2015

1-Click Mobile Payments

Direct

Competition

Branding enables ‚jump‘

to minimise Google/Facebook/others sending your

customers somewhere else

Companies

Focused on

Conversion

Model

Google in Year 2000

Entertain

Want/

Problem

Recognition

Information

Search

Price

AlternativesConversion

Post-

Purchase

Since 2000 Since 201X

2015

1-Click Mobile Payments

Core Business

With Bread &

Butter

Example of Company who ‚Jumps‘ Google and Facebook

Example of Company who ‚Jumps‘ Google and Facebook

Choice for Future Success

Compete

on price

Future

Success

Branding/

Best of

Breed

Expand

Value Chainor

Branding/

Best of

Breed

Expand

Value Chainand

A Key to Customer Retention and Upsells

Entertain

Problem / Need

Info Search

Price Alternatives

Conversion

Post-Purchase

Other

Owned

Channels

More

Less

Channel Strategy Own the Contact Points

X

MinimiseCustomers‘

‚need‘ to gosomewhere else

Your

Company

Entertain

Problem / Need

Info Search

Price Alternatives

Conversion

Post-Purchase

Use Single Customer Profile to…

Anticipate next customerproblems/needs

Anticipate next products

Provide relevant information

Provide price alternatives

Reduce desire to search for productalternatives elsewhere

Maximize profit per transaction

Purpose of Data

Warehouse & CRM

projects

Source : https://econsultancy.com/reports/customer-experience-optimization/

At least 82% of

companies do not

work with a

Single Customer

Profile

Source : http://www.criteo.com/media/2265/etail-trends-in-digital-retail.pdf

All KPIs going up...

Imagine how good

they would be if the

companies actually

knew who they

were talking to.

Common Business Goals

More new customers

1

More profit:

• per customer

• per transaction

• per visit

2 3

Reduce time

between transactions

Last Transaction

Last Visit

Next Transaction

Next Visit

Which data? Creating Single Customer Profile – Identity

CRM

Website

(Web

Analytics)

Payment

Survey

(3rd Party)YouTube Facebook Twitter

Other Social

Media

Audience

DataNielsen Sociomantic

App

(Web

Analytics)

Agency

Datanugg.ad

Survey

(Self-

collected)1st Party Data

2nd Party Data

3rd Party Data

Profit

from

Data If the data helps your company bemore profitable, then integrate itinto the identity of your users for

your Single Customer Profile.

How to organise the systems? Single Customer Profile Approach to Data

Data

Warehouse

CRM /

Personalisation

Engine

Digital to

enrich models

Often Already in

Customer

Intelligence Models

Help Your CRM/Customer Intelligence…

Single

Customer

View

Help Your CRM/Customer Intelligence achieve…

Move away Product/Campaign Centric towards Customer Centric

Product/

Campaign

Which customers bought ourproduct? How successful was

the campaign?

Which campaign/product tooffer to which customers?

When? How?

ProductX?

CampaignX?

ProductY?

CampaignY?

Examples : Customer Centric Marketing and Analytics

Which customers are about

to churn?

Which segments of those

customers are the most

valuable?

Which customers are likely

to buy soon?

Which products are they

likely to buy?

Which customers are we

wasting money on?

In which channels?

Example Customer Focused Projects / Questions

Which customers are about

to churn?

Which customers are likely

to buy soon?

Which products are they

likely to buy?

On which prospects should

we spend more € to acquire?

In which channels should we

try to acquire them?

Which customers are we

wasting money on?

In which channels?

Which segments of those

customers are the most

valuable?

Successful Customer Relations/Marketing Actions

Business

Goals

Define

MeasurementCommunicate/

Release

Define

Content/ChannelAnalyse

Define Target

Group

Act &

Optimise

1

3

4

5

6

7

Company

Goals

Project Month 1 Month 2 Month 3

New Website R1.2

Requirements

Design

Build

Test

Release

Seasonal Campaign

Requirements

Test

Analyse

New Product Tool

Requirements

Design

Build

Test

Release

Typical Team Project Calendar

Where is time to analyse performanceof product releases?

Where is time to optimise campaigns?

CI / BI / CRM

Digital / Analytics

Marketing

Your Internal Triangle to Success with Data

Marketing has

Channels to theCustomers

Knows how to talkto customers

Segmentation models

Marketing is missing

Crucial (digital) data

CI / BI / CRM has

Most customer data

Knows how to workwith Big Data

Segmentation models

CI / BI / CRM ismissing

Crucial (digital) data

Digital/Analytics has

Crucial Digital Data

Knows how to workwith Digital Data

Example Traditional Organisational Structure

CEO

CFO COO

CategoryManagers

CIO CMO

Digital Marketing

Analytics Channels

Display

AdWords

Social

Affiliate

Retargetting

17 Total Channels

SEOCreative/

UXMobile

Web Apps

iOS Phone

iOS Pad

Android

CRM

Data Mining

Email

Customer Database

Customer Relations

Offline Marketing

Market Research

Requirements/

Reporting

Customer Focused

Analysis

Customer Contact/

Delivery

Example: Customer Experience Focused Organisation Matrix

Traditional Store / Branches

Business Goals

Call Center

Offline Marketing

Digital

Other

Practical Steps : Single Customer View with Analytics Data

SuccessfulTest

IntegrateData

DefineGoals

PrioritiseTop

Business Cases

Select firsttest case : Low effort/ High gain

Success Repeat

What you can do

today…

Shop your success up the organisation

Demonstrate success with minimal resources

Engage with the ‚other‘ team (CRM/BI/CI if you

are Digital/Analytics or vice versa)

Kickoff a small manual business case

Business CaseBank : New Account Signup Process

Online and Offline Combo

Customer

Prints Product

Form

Day 0

Customer

Submits

Form/Signs Up

for Product

On average 6 weeks later

Were these the

same person?

Business Case

Customer

Prints Product

Form

Day 0

Customer

Submits

Form/Signs Up

for Product

On average 6 2 Weeks

CI team arranged email to all customers who had not returned PDF within 1 week

Analytics team created CSV file of all customers who downloaded the PDF

Results :

More account signups

Decrease time to open account

First revenue transactions quicker

Improve profit by eliminatingunnecessary emails/letters tountargeted distribution list

Go for it!

It will be ok!

Source : iStock

Thank you !

Spencer Altman

spencer.altman@webtrekk.com

@spenceraltman

Head of Business Consulting

Berlin, Germany