"Big Data Marketing: Who's Doing it Right" by Stephan Sorger at the 2014 imarketingSF Conference

Big Data Marketing:Who’s Doing It Right?

imarketingSF Conference 2014

November 5, 2014

Stephan Sorger

© Stephan Sorger 2014 www.StephanSorger.com

http://www.stephansorger.com/

About Our SpeakerThe “Analytics Ambassador”Author“Marketing Analytics: Strategic Models and Metrics”

Professional Expertise Oracle, SAP, Aspect, On Demand Advisors

Academic ExpertiseHult; UC Berkeley SF Ext; USF MBA

Board MemberUC Berkeley Ext. Marketing Metrics; Demand Metric

StephanSorger.comBooks; Sample course content



New Book: Marketing Analytics: Strategic Models and Metrics

Authoritative Guide• Over 10 years of professional experience• Over 5 years of academic research

Comprehensive• Nearly 500 pages of text• Nearly 400 figures, tables, and graphs

Practical• Structured around marketing, not math• Packed with examples

Available on Amazon.com:• Search on “Marketing Analytics”



http://www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307/ref=sr_1_fkmr0_1?ie=UTF8&qid=1365706042&sr=8-1-fkmr0&keywords=marketing+analytics+stephen+sorger

On Demand Advisors: 6-Step Process

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Learn more at: www.OnDemandAdvisors.com © Stephan Sorger 2014 www.StephanSorger.com

http://www.ondemandadvisors.com/


On Demand Advisors: Clients

Learn more at: www.OnDemandAdvisors.com © Stephan Sorger 2014 www.StephanSorger.com

http://www.nuviewinc.com/index.html

http://www.ondemandadvisors.com/


http://www.coremetrics.com/index.php

UC Berkeley Extension: Corporate TrainingUC Berkeley ExtensionCorporate & Professional Programs

Accelerated, In-Depth Intensives:

• Principles of Effective Leadership• Coaching & Mentoring for Leaders• Change Management• Forecasting & Budgeting• Accelerating Innovation

Learn More at: http://extension.berkeley.edu/static/corporate/

Or contact Robert David at: [email protected]


http://extension.berkeley.edu/static/corporate/


The Problem

Promises Results



Example: Tracking the Wrong Metrics

McDonald’s Campaign 2010

Track FoursquareCheck-Ins!

Social MediaCamp

No, TrackFoot

Traffic!

You’re Both Wrong!Track Incremental

Revenue!

TraditionalMedia Camp

CEO



We Need a Hero!



Who’s Doing it Right?

Amazon.com

Birchbox

eBay

Rent the Runway

Walmart

“Data Exhaust”



Amazon.com: Creating Relationships Using Data

http://engage.tibco.com/blog/2013/07/real-time-marketing-4-best-practice-examples-of-getting-it-right-at-the-right-time/http://www.forbes.com/sites/cherylsnappconner/2013/07/30/ted-rubin-why-return-on-relationship-makes-marketing-dollars-and-social-media-sense/

Neil Lindsay, VP Marketing• CMO Council; North America Advisory Board

Internal Analytics: Leveraging data to drive cross-sell• Real-time; Market-driven; User-specific• Enhanced customer experience; Reduced marketing expenses


http://engage.tibco.com/blog/2013/07/real-time-marketing-4-best-practice-examples-of-getting-it-right-at-the-right-time/

http://www.forbes.com/sites/cherylsnappconner/2013/07/30/ted-rubin-why-return-on-relationship-makes-marketing-dollars-and-social-media-sense/


Amazon.com: Cross-Platform Analytics Service

http://techcrunch.com/2013/11/05/amazon-debuts-a-cross-platform-app-analytics-service-with-ab-testing-bundled-in/

External Analytics: Developers selling on Amazon Appstore

Cross-Platform• Apple iOS• Android• Amazon Fire

Continued Use“Sticky”

Average RevenuePer Device(ARPD)

Average RevenuePer Paying Device(ARPD)

A/B Testing Built-In• Test Different Features


http://techcrunch.com/2013/11/05/amazon-debuts-a-cross-platform-app-analytics-service-with-ab-testing-bundled-in/


Amazon.com: Amazon Analytics Product

https://ams.amazon.com/products/analyticsExternal Analytics: Sales of Amazon Page Data

Relevant Metrics• Reach• Views• Considerations• Sales

Features• Video Hero• Product Hero• Merchandising Widget Featured products.. Featured links…


https://ams.amazon.com/products/analytics


Birchbox: Dedicated to Data

http://mashable.com/2013/05/06/cmo-data/

“From the beginning, data has been an essential part of Birchbox’s growth and strategy…we use it to make important company decisions, and use it to guide us towards creating the best possible new products for our customers.”

- Deena Bahri, VP of Birchbox

Deena Bahri, VP of Marketing• Dedicated to Data for company decisions• Tailor to various complexions and hair types




Birchbox: Birchbox Man Based on Survey Data


Birchbox Man• Survey data + behavioral data indicated demand for products for males• Nov. 2011: Limited Edition Birchbox Man• April 2012: Dedicated subscription delivery




eBay: Data-Driven Revamp

http://engage.tibco.com/blog/2013/07/real-time-marketing-4-best-practice-examples-of-getting-it-right-at-the-right-time/http://marketingland.com/get-know-ebay-cmo-richelle-parham-84648http://www.fastcompany.com/3006628/embracing-the-grid-helps-ebays-cmo-lead-the-visual-feed

Richelle Parham, CMO• Formerly with Visa and Digitas; 2013 Marketing News Hall of Femme

Big Data• 110+ Million users; 350+ Million items



http://marketingland.com/get-know-ebay-cmo-richelle-parham-84648

http://www.fastcompany.com/3006628/embracing-the-grid-helps-ebays-cmo-lead-the-visual-feed


eBay: The Feed

http://www.fastcompany.com/3006628/embracing-the-grid-helps-ebays-cmo-lead-the-visual-feedhttp://www.cnet.com/news/feed-me-ebay-rolls-out-new-homepage-to-all-users/


The Feed• Highlights items based on customer behavior• Tracks data on browsing and purchasing history• Consumers can “follow” categories of items


http://www.fastcompany.com/3006628/embracing-the-grid-helps-ebays-cmo-lead-the-visual-feed

http://www.cnet.com/news/feed-me-ebay-rolls-out-new-homepage-to-all-users/



eBay: Mapping The Customer Journey

“In designing the Feed, we mapped out the customer journey toward a purchase, from the moment he’s aware of a product to how he researches it and then decides to buy it.”

- Richelle Parham, CMO of eBay © Stephan Sorger 2014 www.StephanSorger.com


eBay: Curation

“We found the number one thing customers care about is curation. We also learned that big, rich photos really matter. That’s why the Feed is all about creating a visual environment of the things you love.”

- Richelle Parham, CMO of eBay © Stephan Sorger 2014 www.StephanSorger.com


Rent the Runway: Data-Driven Decisions

http://www.forbes.com/sites/scottdavis/2012/05/30/368/http://mashable.com/2013/05/06/cmo-data/

Jenn Hyman, CEO• Dedicated to Data for major decisions• Data: Marketing; Operations; Inventory


http://www.forbes.com/sites/scottdavis/2012/05/30/368/



Rent the Runway: Impact of Social Media






Rent the Runway: Upsell Accessories

• 25% adding accessories to dress orders• RTR launched upsell program on site



Rent the Runway


“Find Women Like Me”200% more likely to rent when dresses worn by “real women” (vs. model)





Walmart: Embracing the Digital World


Stephen Quinn, CMO• Dedicated to embracing the digital world• Goal to become more entrepreneurial





Walmart: Walmart Labs

SoLoMo Initiative• Social, Local, and Mobile• 2,500 Walmart Facebook pages

Acquisitions• Grabble: eReceipt• Inkiru: Predictive intelligence platform• Kosmix: Social media technology platform• OneRiot: Social media analysis• Stylr: Clothes shopping mobile app• Vudu: Streaming video service• Yumprint: Meal planning service provider• Others

http://www.walmartlabs.com/about/acquisitions/



Walmart: Polaris Search Engine

http://news.walmart.com/news-archive/2012/08/30/walmart-announces-new-search-engine-to-power-walmartcomhttp://techcrunch.com/2012/08/30/in-battle-with-amazon-walmart-unveils-polaris-a-semantic-search-engine-for-products/

Polaris Search Engine• Type in “Patio Furniture”• Returns page with multiple patio set options



Walmart: Polaris Search Engine

Polaris Search Engine• Uses semantic search algorithms to understand what users search for• 10-15% increase in shoppers completing purchase after searching for a product• Sri Subramaniam, head of Polaris initiative• Built from scratch; Completed in 10 months• Based on Social Genome project• Connects people to places, events, and products • Applies synonym mining to glean intent



Data Exhaust: Combine Leasing

http://www.deere.com.au/common/media/images/product/equipment/tractors/utility_tractors/6r_series/r4c000968_cab_762x458.jpg

Combine Harvester• Combine Harvester: Reaps, threshes, and winnows grain crops• Farmer’s most expensive piece of equipment• Sits idle most of the year




Data Exhaust: Combine Leasing


Combine Leasing• Lease combines to farmers• As harvest moves across North America, so does the equipment• Companies: AgcoCorp, Olsen Custom Farms, MachineryLink, …




Combine Leasing: Data Collection


Sophisticated Data Collection• Dashboard collects reams of data about the equipment and the harvest• Examples: Fuel consumed; Soil moisture; Elevation of field; Bushels per acre


Combine Leasing: Data Monetization


• Use data samples to predict harvest metrics• Timeliness of data: Get sample data in mid-harvest• Customers for data: Goldman Sachs commodity brokers; Wheat futures, etc.


3 Actions You Can Take

1. Look Around

2. Understand What’s Important

3. BE A HERO!


Questions

Thank You!