Optimizing Market - Predictive Analytics World · 2013-04-14 · Service Channel Variety Local Channels One Bill / Save With Bundles Consistent Service Delivery Order By Phone Established

© 2013 Merkle Inc. All Rights Reserved. Confiden<al 1

© 2013 Merkle Inc. All Rights Reserved. Confidential

Optimizing Market Positioning

With Predic+ve Analy+cs

Bob Wood PAW SF 2013


Ø  Area of Specialty: Consumer Choice Modeling & Predic<on Ø  Professional:

Ø  Current: Director – Advanced Analy<cs Merkle Inc. Ø  Previous: Director – Marke<ng Science Cox Communica<ons

Ø  Educa<on

Ø  BS/MS – Mathema<cs, BYU Ø  Post-‐Graduate Work: Economics, Univ. of Rochester & Stanford Univ. Ø  MBA – MarrioS School of Mgmt, BYU Ø  MS – Sta<s<cs Emphasis, Wichita State University Ø  PhD Candidate – Psychology, Wichita State University

Introduc+on – Bob Wood


•  You Are A Large Cable System in the Mid-‐West •  Video •  Internet •  Phone

•  New Entrants •  DirecTV •  Dish Network •  AT&T U-‐verse Launching Soon •  Beginning of Real Online Op<ons

•  Losing Market Share •  In New Environment, What Is Op<mal Posi<oning?

•  What To Say? •  Nuance By Segment

Problem Statement


Influencing Consumer Choice


Dual Process Theory

System II •  Hypothetical & Mental Models •  Abstract Reasoning •  Slow, Probabilistic & Resource Intensive

System I •  Instinctive & Parallel •  Associative & Automatic •  Quick & Decisive Source: Dual Process Theory. Stanovich & West, 2000.

Dual Process Theory


Means-‐End Theory

Personal Values

Feelings

Benefits

Attributes


Example: Ar+cula+ng Ladders – Consumer Decision Map


Challenges With Laddering Interviews •  High Skill •  Significant Complexity In Data Gathering and Modeling •  Expense

Main Methodology – Laddering Interviews


Does It Work – Is It Worth It?


•  Pioneering Work Done By Dr David Whitlark •  e.g. Volume 31, Issue 4,, Interna<onal

Journal of Public Administra<on, 2008

•  Start With Qualita<ve •  Enhance & Expand With Quan<ta<ve

•  Specialized Survey Structure Followed By Analy<cs

•  Benefits: •  Allows Crea<on of CDM From Small Number

of Laddering Interviews •  Large Enough Sample for Segmenta<on View •  Could Show Concept Brand Ownerships

Predic+ve Analy+cs Solu+on


•  Laddering Interviews to Targeted Groups •  No More Than 10 Needed For Each Group

Process: Step 1 Laddering for Lexicon

No LT Contracts

Selec+on Entertain Whole Family

Wide Variety Free Installa+on

AO’s No Charge

Local Channels

Price I Can Afford

In Budget Good Value

Making Smart Money Choices

Informed & Savvy

Adventurous

Curious S+mulated Mind

Educated About World

Making Wise Choices

Enjoy Good Things Of Life

Freedom To Choose


•  Verimax Rota<on •  Some Face Value Interven<on

Process: Step 2 Factoring

No LT Contracts



AO’s No Charge

Local Channels

Price I Can Afford



Informed & Savvy Adventurous

Curious

S+mulated Mind


Making Wise Choices


Freedom To Choose


•  Name the Factors •  Connect Factors Between Levels (Some Excep<ons)

•  Experiments: SEM / Bayesian Networks

Process: Step 3 Par+al Correla+ons of Factor Scores

No LT Contracts



AO’s No Charge

Local Channels

Price I Can Afford



Informed & Savvy Adventurous

Curious

S+mulated Mind


Making Wise Choices


Freedom To Choose


Process: Step 4 Final Consumer Decision Map

Personal Satisfaction

Enjoy the Good Things

of Life

I Feel I Am Working

With Trusted Partner

Feel in Control

Learning About the

World

Good Value

I Feel Smart & Informed

Relaxed Stress-Free

Escape

Opportunity to Relax

Trustworthy Company

Variety

Effective & Prompt Support

Enjoyable Entertainment

Friendly & Saves Time

Reliable Service

Channel Variety

Local Channels

One Bill / Save With Bundles

Consistent Service Delivery

Order By Phone

Established Reputation

English Speaking CS

Clear & Vivid

Experience

Respectful Customer Service

Offers Channels Important

to Me

AffordableEffective Product

Education

Freedom to Choose

Make Wise Choices

VideoVideo--HVMHVM

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Pers

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Ben

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Pers

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Ben

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Pers

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Val

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alue

PrimaryPrimary ChainsChains •Red = Primary•Orange = Secondary•Pink = Secondary (Older Demo)•White = Neutral•Yellow = Owned by Competitor•Green = Owned by Cox


Ad Tes+ng


•  Research Side •  Reduced Cost of Research by 75% •  Reduced Time to Execute by 50% •  Could Leverage Internal Analy<cal

Resources

•  Results •  Confirmatory of Qualita<ve Results •  Insights By Segment •  Brand Ownership of Low Level Concepts •  Richer Strategy Discussion

•  Impacts •  Consistent Posi<ve Net Gains in Video •  Resonant Communica<on Impact -‐ General

Impacts of Predic+ve Analy+cs Approach


Ques+ons

Documents

Optimizing Market - Predictive Analytics World · 2013-04-14 · Service Channel Variety Local Channels One Bill / Save With Bundles Consistent Service Delivery Order By Phone Established