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www.mieurope.e u An Introduction to Marketing Improvement

Mi Overview August 09

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Page 1: Mi Overview August 09

www.mieurope.eu

An Introduction to Marketing Improvement

Page 2: Mi Overview August 09

www.mieurope.eu

2

What we do:

• Data Consultancy– Consumer touchpoint/data auditing– Customer targeting– Data Privacy– Web & E-Marketing

-2000

-1000

0

1000

2000

FlexPoint segments your customer/prospects by profitability

EliminateExperiment

Invest

-2000

-1000

0

1000

2000

FlexPoint segments your customer/prospects by profitability

EliminateExperiment

Invest

• Marketing Database ‘Single Contact View’– Design,Build, Host

• ROI Based Modelling– MI’s unique FlexPoint behavioural based

model

Page 3: Mi Overview August 09

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To us it’s not data, it’s PEOPLE

Page 4: Mi Overview August 09

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About Marketing Improvement

• Formed in 2003 to work with clients to improve marketing ROI via exploitation of data.

• Highly experienced marketing professionals • Our track records mean we have nothing left to

prove. • Unique combination of "client-side" and

"agency side" experience so we understand better than most what the pressures and challenges are.

• We offer open minds, clear opinions and useful experiences.

Page 5: Mi Overview August 09

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Some of our Clients

Page 6: Mi Overview August 09

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Our Approach to Data and Marketing

Page 7: Mi Overview August 09

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Where are you on this matrix?

Dialogue

Push

Segmented

Targeted

Profiled

Integrated

Response/RFM

FU

NC

TIO

NA

LIT

Y

• List Orientated• Manually Cranked

• CRM System• Fully Automated

• Database/Warehouse• Semi - Automated

PROCESS

PAYBACK BAND

MARKETING WASTE

SYSTEM WASTE

Target

It costs 20% to get 80% of the way – is the next 20% worth a fourfold increase in cost?

Page 8: Mi Overview August 09

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Analytics

Page 9: Mi Overview August 09

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What is the FlexPoint?

-2000

-1000

0

1000

2000

FlexPoint segments your customer/prospects by profitability

Eliminate

ExperimentInvest

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FlexPoint – The theory

Moving a voter from one extreme to vote for the other party is almost impossible. The closer they are to the centre, the easer it is. Arrow’s Theory applies this to ALL product choices.

.. And FlexPoint uses the Direct Marketing conversion rates to segment the market universe by profitability based on CURRENT results.

The “Floating Voter”L R

Page 11: Mi Overview August 09

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What does FlexPoint do?

• It uses the response to direct marketing/sales activity – To assign people into cells that reflect the investment required to

get a positive response

• It uses demographics compiled by MI from multiple sources – To assign prospects & customers to cells

• It shows where to invest marketing/sales effort– Which customer/prospects will respond at least marketing cost

– Which customer/prospects are unlikely to profitably respond

– Which customer/prospects have had a disproportionate investment

The result is a 20 -40% improvement in marketing ROI

Page 12: Mi Overview August 09

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FlexPoint provides a clear focus on ROI

Corporate Chieftans

Struggling Welfare

Metropolitan Adventurers

Wannabe Wealthy

Comfortable Suburbanites

Grey Perspectives

Good prospects Bad prospects££ Optimising the Budget ££

Ta

rge

tin

g t

he

Me

ssa

ge

The Total Market

Page 13: Mi Overview August 09

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What is the FlexPoint?

-2000

-1000

0

1000

2000

FlexPoint segments your customer/prospects by profitability

Eliminate

ExperimentInvest

Page 14: Mi Overview August 09

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FlexPoint

Case Study

B2C Insurance

Page 15: Mi Overview August 09

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FlexPoint Consumer Insurance

FlexPoint

People Communicated

With Phoned Mailed Quoted BoughtContacts Per Sale

Marketing Cost Per

Sale

1 518,199 305,081 292,388 122,028 25,428 23 17.85£ 2 518,071 304,411 296,075 119,272 19,933 30 22.78£ 3 515,213 313,162 282,256 118,055 18,039 33 25.53£ 4 518,442 333,294 256,710 114,804 16,506 36 28.90£ 5 514,520 332,631 255,471 113,408 15,454 38 30.79£ 6 518,590 346,129 244,838 116,329 14,625 40 33.42£ 7 518,248 337,069 254,691 108,944 13,963 42 34.44£ 8 519,724 330,237 270,225 108,096 13,469 45 35.44£ 9 518,840 331,114 266,483 103,785 12,732 47 37.49£

10 507,109 313,168 267,704 94,577 11,822 49 38.58£ 11 513,746 317,633 277,673 97,741 11,529 52 40.29£ 12 530,270 329,759 278,428 93,927 11,204 54 42.77£ 13 529,250 329,352 280,713 89,681 10,557 58 45.41£ 14 524,927 323,697 277,423 81,057 9,638 62 48.94£ 15 524,820 324,089 272,391 72,041 8,602 69 54.71£ 16 519,769 324,252 263,788 60,263 7,634 77 61.34£ 17 518,957 330,786 256,786 57,819 6,811 86 69.59£ 18 519,783 335,192 248,121 51,742 5,884 99 81.01£ 19 518,061 329,697 249,721 46,151 4,875 119 96.52£ 20 511,634 322,483 250,449 51,293 1,699 337 271.99£

Page 16: Mi Overview August 09

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 316564 156599 77937 96735 46235 42535 32653 28825 9493 22347 11421 16101 11602 7276 9475 4854 7667 4986 6672 199342 142149 154783 86508 66231 100620 113865 42615 76395 28273 29589 12352 19671 14774 10713 4790 7199 3113 3260 2188 41733 70930 110021 142073 96061 121147 99092 97646 21840 18473 41637 13418 17862 15959 4570 3768 2515 3011 2813 1085 18694 49996 46175 124867 83400 36734 97624 76645 80277 72762 36914 30775 18195 66644 6040 9488 4488 4342 2289 1533 37865 35233 76326 55653 101985 70418 148162 76889 33572 51649 32851 40732 23822 11539 9849 56350 13459 1261 1715 949 22756 41714 60145 53184 32555 106857 70547 89650 70897 91059 42210 65974 44084 22918 30871 672 3579 8119 580 1872 20997 54132 49174 83548 67115 59385 85970 60380 65531 81903 68933 26682 38256 39123 26180 894 28735 6145 1697 353 58638 16765 42852 72646 102401 80226 56070 85920 61281 50113 29515 51337 29764 18074 49746 39068 16550 12116 3932 1848 7769 19834 54363 30394 48971 71254 64806 66561 66451 35335 82071 53387 25994 88803 22883 37542 28766 6912 4743 644 1477

10 33007 26814 26781 53935 18775 33842 68312 27687 44025 69485 74454 80031 14114 46050 71870 100585 16166 5252 7682 344211 27343 14639 32314 38916 40445 50374 46175 52300 50277 33089 44039 77713 66939 98999 37644 37920 24466 15619 6094 819812 11262 25108 25323 28893 34007 15831 39238 38805 29032 46410 30637 72958 98152 139860 81503 16419 35711 8962 3281 552313 8778 15939 4185 34999 38300 23104 10395 53584 79073 64441 74516 61077 47544 27278 69872 44214 45726 9520 1170 5509014 4885 12592 14949 12139 38821 21432 26317 50990 54814 44574 47863 48398 33871 62919 97010 99376 37941 23517 16390 1716915 7580 8135 12465 6344 32491 25464 22366 38872 29744 30130 69781 58212 55355 39221 109709 69450 89986 41510 71117 1878316 2285 6660 8341 15425 10355 11989 8273 17609 49740 49021 22801 25764 35091 42058 23229 72755 95904 35756 60621 6959917 12750 5520 8925 3071 17959 15062 4667 28275 10510 25618 36416 42961 43622 56227 60996 109281 125753 91607 287999 17455018 1661 4198 6832 6675 3590 2758 4226 7277 8540 13307 12745 17401 24455 16880 27660 22194 99005 187985 279602 22263319 3061 1438 5354 3919 5253 4466 2790 6495 3617 12770 10796 8251 8189 6591 11408 14145 82451 224413 238949 30415820 34063 10431 8600 7722 7064 6891 6293 9609 5855 10422 13866 8085 13310 8682 12315 20192 29886 86647 238554 506330

FlexPoint Version 4 (All Communications)

Fle

xPo

int

Ver

sio

n 5

(O

utb

ou

nd

)

Predicting Channels to Market

FlexPoint Code = Relative Investment to Acquire

1= Low Investment 20 = High Investment

Cross Tabulation Showing Number of Prospects in the Marketing Database

FlexPoint Code For Direct Mail

Fle

xP

oin

t C

od

e F

or

Ou

tBo

un

d T

eleS

ales

Only Respond toMail

Only Respond toTeleSalesAlways Respond

Never Respond

Page 17: Mi Overview August 09

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 316564 156599 77937 96735 46235 42535 32653 28825 9493 22347 11421 16101 11602 7276 9475 4854 7667 4986 6672 199342 142149 154783 86508 66231 100620 113865 42615 76395 28273 29589 12352 19671 14774 10713 4790 7199 3113 3260 2188 41733 70930 110021 142073 96061 121147 99092 97646 21840 18473 41637 13418 17862 15959 4570 3768 2515 3011 2813 1085 18694 49996 46175 124867 83400 36734 97624 76645 80277 72762 36914 30775 18195 66644 6040 9488 4488 4342 2289 1533 37865 35233 76326 55653 101985 70418 148162 76889 33572 51649 32851 40732 23822 11539 9849 56350 13459 1261 1715 949 22756 41714 60145 53184 32555 106857 70547 89650 70897 91059 42210 65974 44084 22918 30871 672 3579 8119 580 1872 20997 54132 49174 83548 67115 59385 85970 60380 65531 81903 68933 26682 38256 39123 26180 894 28735 6145 1697 353 58638 16765 42852 72646 102401 80226 56070 85920 61281 50113 29515 51337 29764 18074 49746 39068 16550 12116 3932 1848 7769 19834 54363 30394 48971 71254 64806 66561 66451 35335 82071 53387 25994 88803 22883 37542 28766 6912 4743 644 1477

10 33007 26814 26781 53935 18775 33842 68312 27687 44025 69485 74454 80031 14114 46050 71870 100585 16166 5252 7682 344211 27343 14639 32314 38916 40445 50374 46175 52300 50277 33089 44039 77713 66939 98999 37644 37920 24466 15619 6094 819812 11262 25108 25323 28893 34007 15831 39238 38805 29032 46410 30637 72958 98152 139860 81503 16419 35711 8962 3281 552313 8778 15939 4185 34999 38300 23104 10395 53584 79073 64441 74516 61077 47544 27278 69872 44214 45726 9520 1170 5509014 4885 12592 14949 12139 38821 21432 26317 50990 54814 44574 47863 48398 33871 62919 97010 99376 37941 23517 16390 1716915 7580 8135 12465 6344 32491 25464 22366 38872 29744 30130 69781 58212 55355 39221 109709 69450 89986 41510 71117 1878316 2285 6660 8341 15425 10355 11989 8273 17609 49740 49021 22801 25764 35091 42058 23229 72755 95904 35756 60621 6959917 12750 5520 8925 3071 17959 15062 4667 28275 10510 25618 36416 42961 43622 56227 60996 109281 125753 91607 287999 17455018 1661 4198 6832 6675 3590 2758 4226 7277 8540 13307 12745 17401 24455 16880 27660 22194 99005 187985 279602 22263319 3061 1438 5354 3919 5253 4466 2790 6495 3617 12770 10796 8251 8189 6591 11408 14145 82451 224413 238949 30415820 34063 10431 8600 7722 7064 6891 6293 9609 5855 10422 13866 8085 13310 8682 12315 20192 29886 86647 238554 506330

FlexPoint Version 4 (All Communications)

Fle

xPo

int

Ver

sio

n 5

(O

utb

ou

nd

)

Predicting Channels to Market

FlexPoint Code = Relative Investment to Acquire

1= Low Investment 20 = High Investment

Cross Tabulation Showing Number of Prospects in the Marketing Database

FlexPoint Code For Direct Mail

Fle

xP

oin

t C

od

e F

or

Ou

tBo

un

d T

eleS

ales

Only Respond toMail

Only Respond toTeleSalesAlways Respond

Never Respond

Page 18: Mi Overview August 09

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The Recession-Proof Index (RPI)

• All 28M households in the UK were assessed in August 2008 by MI for their resistance to recessionary pressures based on:– Region– Income– Lifestage– House value– Indebtedness– Fear of recession

• The RPI is a 10 point scale, 1= recession-proof, 10= recession-prone

• The following charts show how creeping unemployment has closely mirrored the RPI as it has moved into more and more relatively recession-proof areas.

• The RPI has proved to be stunningly accurate in its assessment of the course of the recession - as unemployment continues to grow it will continue to predict who and where to avoid and where to invest for the upturn

Page 19: Mi Overview August 09

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Before the Recession hit Employment……

Across vast swathes of the UK unemployment was below 2% in October 2008

Page 20: Mi Overview August 09

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10% most recession prone by Postcode Sector

By December it was creeping South and mirroringthe bottom segment of the Recession-Proof Index

Key

Page 21: Mi Overview August 09

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20% most recession prone by Postcode Sector

Key

January saw more expansion, now drawing in theRPI segment 9 as well

Page 22: Mi Overview August 09

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30% most recession prone by Postcode Sector

Key

The pattern repeats in February – parts of London arenow affected as segment 8 sees rising unemployment

Page 23: Mi Overview August 09

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40% most recession prone by Postcode Sector

Key

March sees yet more areas experiencing unemploymentas segment 7 areas start to be affected

Page 24: Mi Overview August 09

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50% most recession prone by Postcode Sector

Key

April’s figures show significant unemploymentencroaching into RPI segment 6

Page 25: Mi Overview August 09

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Where next?

• It is likely that the bottom of the recession was in March 2009

• BUT, unemployment will continue to rise for at least 12 months

• THE RPI can show you AT A HOUSEHOLD level where to focus marketing activity AND what messages to put to those households

• THE RPI can show where the recession will lose its grip first and thus where to focus investment to grow out of the recession faster

• 2008 levels of wealth will not return until 2014 and the RPI shows where they will return FIRST

Page 26: Mi Overview August 09

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Applications of the RPI

• Direct Marketing targeting– Avoid those people who are so stressed by the

recession they cannot buy or cannot pay

• Retailing– Identify where to invest while retail properties are cheap

and plentiful to plan for 2010 – 2014

• Ad Planning/media buying– Identify where the best audiences are for what type of

message by marketing channel and location

Page 27: Mi Overview August 09

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The MI Single Customer View ETL

Page 28: Mi Overview August 09

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Marketing Databases – The MI Approach

• Consultative, outcomes-based approach– We do not advocate any particular products

• It’s all about the DATA– Marketing Databases & CRM depend on data.

• Automate– To minimise individual data input – use automation to

make systems do the work

• Avoid “24-Button Washing-machine syndrome”– Keep it is simple as humanly possible, Be brutal and

justify EVERY feature you want.

– 95%+ of the features in CRM systems are never used

Page 29: Mi Overview August 09

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The 5 Touch Points that must occur only once in a marketing database

Transactions

Permiss

ions

Interests

Sources

PersonPerson

Email AddressEmail Address

Mobile PhoneMobile Phone

AddressAddress

LandlineLandline

Page 30: Mi Overview August 09

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CRM vs. SCV

• CRM is perfect for managing CONVERSATIONS– Salesforce automation– Customer Service– TeleMarketing

• It is predominantly about managing 1-to-1 relationships

• CRM is perfect for holding extensive information about a few

• CRM is great for CUSTOMERS, less good for prospects and poor for suspects

• A CRM system tends to be inflexible because of business rules required to make it run

Page 31: Mi Overview August 09

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CRM vs. SCV

• SCV is perfect for running “one-to-many” activities– Marketing campaigns– Reporting on ROI– Permissions management

• SCV is good for holding market universe– Aggregating data from multiple sources

• SCV is highly flexible– Business rules relate to merge/de-dupe & permissions

Page 32: Mi Overview August 09

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AnalyticsAnalytics FulfillmentFulfillment

WebsiteWebsite

Call CentreCall Centre

EmailEmailFinance/adminFinance/admin

SalesSales

ExternalExternalDataData

SCV aggregates multiple data sources – including CRM systems

Page 33: Mi Overview August 09

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Automated System Process Data Flow

External Data Internal SystemsAcquired

Data A B C Outcome Mailings

ValidationRules

Rules

Rules

Rules

Segmentation

Cleanse & Enhance

Match & De-dupe

LOAD

Dimensional Database

AutomatedReporting

AutomatedReporting

SourceArchive

AutomatedReporting

AutomatedReporting

Counts&

Analysis

Campaign Management

MarketingCommunications

AutomatedReporting

CRM/SFA Database

Page 34: Mi Overview August 09

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Outline Project Roadmap

0 1 2 3 4 6 7 80 1 2 3 4 6 7 8Week Number

Initial kick off, formation of project teams and creation of full project plan.

Initial kick off, formation of project teams and creation of full project plan.

Definition of reports required for build and database

construction phase

Definition of reports required for build and database

construction phase

Build rules workshops, validation routines & associated meta data

Build rules workshops, validation routines & associated meta data

Load automation trials with selected

data sources

Load automation trials with selected

data sources

Full Database BuildFull Database BuildModification of tablestructures

Modification of tablestructures

Integration with email transmission

& campaign response capture

Integration with email transmission

& campaign response capture

Reporting of build rule

implications

Reporting of build rule

implications

Example reportsets for databasebuild and file load

Example reportsets for databasebuild and file load

Trial extractsand analysisTrial extractsand analysis

Trial reports setTrial reports set

= Project reviews

Page 35: Mi Overview August 09

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MarketDeveloper

Page 36: Mi Overview August 09

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Secure on-line access anywhere

Page 37: Mi Overview August 09

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Marketing Dashboard

Page 38: Mi Overview August 09

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Full heirarchical contact management

Page 39: Mi Overview August 09

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Powerful query builder

Page 40: Mi Overview August 09

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On-line preference centre

Page 41: Mi Overview August 09

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Almost limitless reports

Page 42: Mi Overview August 09

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Campaign Planner

Page 43: Mi Overview August 09

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Email Marketing

• MarketDeveloper can interface with existing email transmission bureau or

• Email marketing can be undertaken directly from MarketDeveloper itself:– Email campaigns then become completely seamless– Iterative campaigns (trigger-based) are easy to set up