The application of data fusion for customer insight
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1.
2. Data Fusion The Final Frontier An Introduction to MARKETGEM
Michael Collins BA(Hons), DipM, MCIM, FIDM Managing Consultant -
Database Marketing Counsel Visiting University Lecturer in Database
Marketing & CRM
3. The Classic Strategic Circle RESPONSE TUNE STRATEGY DATABASE
COMMUNICATION ANALYSE RESPONSE
4. The New Strategic Circle CONTROLLED RESPONSE INTERPRET,
ANALYSE AUTOMATION DATABASE BROAD RANGE OF COMMUNICATION MEDIA
UNCONTROLLED RESPONSE, NEW DATA, INTELLIGENCE
Demand-led business
Corporate asset
5. How do you understand your customers? Behaviour Purchases
Responses Queries Complaints Profile Demographics Lifestyle
Personal Psychographics Attitudes Aspirations Preferences Retention
Acquisition Cloning
6. How Do Customers Segment Themselves? Email Phone Mail Sales
Visit SPECTRUM OF RELATIONSHIP I need constant contact I know where
you are when I want something
7. Demographics
Age
Gender
Marital status
Income
Geography
Education
Occupation
8. Lifestyles
Individuals can share a demographic grouping but have a totally
different set of interests, pursuits, hobbies, pastimes and enjoyed
activities
9.
Demographics
Lifestyles
Demographics & Lifestyles may not be enough
10. Psychographics
Preferences
Attitudes
Purchases
Response
Attitudes
Aspirations
Self-view
New small car that I can afford Flashy big used car with
personalised plate
11. B2B Demographics
Sector or industry
No. of employees
Turnover
Geography
Years in business
12. B2B Discriminators
Type of premises
Location
Customer base
Growth/decline
Family business or shareholders
Subsidiary or parent
Education level of board
Age of board
Acquisitive or acquirable
13. B2B Psychographics
Brand
Length of relationship
Image
Individual needs
Personal view
Price conception
Tradition
Referral or Viral marketing
No-one ever got fired for buying
14. Psychographics Adding to your database from research
Address the customer segments with golden questions
Research data can be both discrete and general
If research is discrete then it can be matched back to the
subject
This will provide specific qualification criteria for those who
respond .
. and information that can be extrapolated across other similar
subjects, to fine tune the profiles
15. Why MarketGEM ? 360 VIEW OF THE CONTACTS The WHAT, WHEN,
WHO, WHICH & HOW MUCH Customers Prospects Suspects Promotions
Complaints Branches Products Campaign Response Source Quotations
Referrals Lifetime Expenditure Enquiries
16. Why MarketGEM ? but you also want to know WHY? . and who
else WILL behave in a similar way .to build a model that will
identify the nuggets of opportunity just waiting to benefit your
relationship with your customers
17. A Process of data fusion. The MarketGEM Process
18. Your Systems Data (Customers & Transactions) Start with
your own data. The MarketGEM Process Names Addresses Postcodes
Source Campaign history Response History Purchase History Enquiries
Complaints Referrals Data acquired
19. Your Systems Data (Members & Transactions) enhancement
& enrichment The MarketGEM Process External Qualification
(Demographics & Classifications) Demographics Lifestyle Product
Purchase Magazine Subscriptions Postcode verification
20. Your Systems Data External Qualification (Members &
Transactions) (Demographics & Classifications) enhancement
& enrichment This is the basis for a fast start - maximising
available data for business decisions Define your SEGMENTS and
determine your GOLDEN QUESTIONS The MarketGEM Process
21. The MarketGEM Process Targeted Market Research Your Systems
Data External Qualification (Attitudes & Aspirations) (Members
& Transactions) (Demographics & Classifications) ..add
bespoke research data
22. The MarketGEM Process Targeted Market Research Your Systems
Data External Qualification (Attitudes & Aspirations) (Members
& Transactions) (Demographics & Classifications) a model is
built Deliver actionable direction for immediate benefit, stage by
stage
23. How does it work?
Data appraisal database and all research
Enhance member and transaction information
Understand the Business Opportunities
Undertake bespoke market research
Fuse the outcome by discrete indicators or segment
Tools for analysis, reporting, selection and querying
25. Application consumer markets
Merge with Market Basket Analysis
Amazon - potentially interesting products
Beer and nappies
Combinations & sequence
26. Enhanced MBA Travel Industry
Identify the combinations of type of travel and destination and
then count the number of times each combination exists for the
period
Results reveal highest number of combinations Provides direction
for cross sell Website or brochure layout Relationship management
Add MarketGEMcustomer profile data
27. Application - Retailing
Clothing store chain
From Customer Lists and Sales Records (EPOS) identify purchases
from Sales and Mainline business
Simple segmentation of sale and main-line customers
Market Research by telephone and incentivised mail
Included attitudinal and demographic/lifestyle issues
28. Identifying the best clones
Identify mainline shoppers
Identify shoppers by recency and frequency and future intention
to shop main line
Create MarketGEM model - combine with demographic and lifestyle
results - age, marital status, car ownership etc
Application - Retailing
29. Application - Retailing
Next highest occupation type qualified by future intention and
competitor purchase behaviour
Age variation identified: 25-45 and 45+
Deductions
Infrequent purchasers perhaps saving up for a particular
item
Younger clones could develop into higher rank prospects as
careers progress
Older clones remain on the brink between sale and mainline,
probably more aspirational than committed
Second Rank Clones
30.
Application
Customers used to identify the demographic and consumer profile
that can then be applied to the wider data universe for customer
retention
Use the profiles and behavioural traits to drive cloning for
new best customers
Cloning continues until either attributes become insignificant
or insufficient for a viable segment
Application - Retailing
Outcome
Targeted marketing based on the clone contingents generated
incremental 1.25m turnover in first quarter
31. Application B2B
International business publisher and event organiser
Internal data:
Exhibition Visitors (registration data)
Stand visit records (badge swipes)
Exhibitors
Magazine subscribers
Magazine advertisers
Market Research of exhibition visitors
Create a total view of contacts and identify best customers,
potential churn and other business opportunities
Are the best customers really as the company expects?
32. Application B2B Company Name Postcode Business Demographics
Sector Registration Code Advertising spend Job Function Job Title
Turnover Product/Service 1. Business demographics: Enhancement
/verification 2. PAF data (UK & Foreign) Address verification
& formatting 3. Weather/Travel Info 4. Advertising Monitoring
Market share, expenditure comparison 5. Sector performance Adding
External Data
33.
Why were a whole contingent of visitors attending but never
appearing on the stand visit records?
Were the highest spending advertisers the best customers?
How were the key exhibitors playing the system?
Application B2B Examples of Business Opportunities Tiny businesses
using show to network with similar businesses. Benefit: Sponsored
small business forum yielded 25k opportunity Majority of high
spending advertisers spent considerably more with competitors,
using the clients titles for recruitment, not brand advertising.
Benefit: Sales objectives amended to attack competitor activity
Some big names felt that their presence was vital to the events
success and so were not signing contracts until the last minute or
after the event. Benefit: Reducing the business risk through
improved business process
34. Address uppermost business imperatives Growth Effectiveness
Market Share
Knowing more about your customers & prospects
Protection against churn
Product development
Improving service
Opportunities for cross sell and up sell
Why MarketGEM ? through Data Fusion
35. Why MarketGEM ? Maximised yield from web and brochure
layout 25k+ to bottom line, risk reduction & cashflow benefits
1.25m increased turnover
36. Thank You www.marketgem.co.uk Data Fusion The Final
Frontier An Introduction to MARKETGEM