Remodel Your Marketing With Analytics And Dashboards

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Remodel Your Marketing With Analytics

and Dashboards© Koen Pauwels, 2015


About the Presenter

Professor of Marketing at Ozyegin

University, Istanbul & Honorary

Professor at the University of

Groningen

Chosen amongst “Top 100

Inspirational Alumnus” from UCLA

Associate Editor at the International

Journal of Research in Marketing

Consulted large and small companies

across 3 continents, including Amazon,

Credit Europe, Ferrero, Inofec, Heinz,

Kayak, Knewton, Kraft, Marks &

Spencer, Nissan, Unilever, Sony,

Silverline, and Tetrapak

KOEN PAUWELS


About Regalix

An award-winning Global Co - Innovation company that

leverages technology and marketing to help companies grow.

Forefront of Innovation

o Digital Marketing Services

o Technology Enabled Services

o Regalix Labs

Multi-disciplinary Leadership Team & Strong Advisory Board,

175+ Team

Fortune 500 and Venture Backed Customers (B2B and B2C)

Global Operations: HQ in Silicon Valley, 2 Offices

Industry Recognition


IT’S HOW YOU USE DATA

1) Your decisions that data + analytics can inform

2) Vision + process to measure marketing success

3) Which metrics do industry leaders use?

4) How to convert data into productive action?

5) How to nurture the culture of accountability?


Case studies on brand tracking, data management, offline + online

marketing communication, direct mail, social media, search,

promotions, pricing, product age, retargeting…

Large and small companies, B2C and B2B across 3 continents

Even a small improvement in using marketing analytic dashboards

brings companies on average 8% higher Return on Assets compared

to their peers (Germann et al., IJRM, 2012)

Decisions that data + analytics can inform


ACROSS INDUSTRIES IN CASE STUDIES

Fast moving consumer goods: P&G, Unilever, snacks, delicacies

Financial services: Discover, Vanguard, First Tennessee Bank

Consumer durables: cars, furniture, male shaving

Entertainment: EB Games, Harrah’s

Services: online retail, fashion retail, online travel, insurance

Business-to-business: Avaya, Unisys, global packaging

Not-for-profit: Atlanta city dashboard


Analytic Dashboard: a concise set of interconnected performance

drivers to be viewed in common throughout the organization

It helps you deal with:

1. poor organization of data,

2. managerial biases in information processing and decision-

making,

3. the increasing demands for marketing accountability, and

4. the need for cross-departmental integration when needed

What Marketing Analytics Dashboards Can Do

for You


VIEW PERFORMANCE DRIVERS: EXAMPLES

EUROPEAN SME US-BASED LARGE FIRM

SOURCE: HTTP:/ /W WW.MARKETDASHBOARDS.COM HTTP:/ /W WW.DUNDAS.COM/

http://www.dundas.com/


CONNECT YOUR ACTIONS WITH RESULTS


DO YOU NEED AN ANALYTIC DASHBOARD?

Is your organization suffering from:

1) Confusion about the effectiveness of new

media (what is your social media ROI?)?

2) Lack of comparable metrics across media

(online vs. offline) or countries?

3) Too many ‘key performance indicators

without proof of their sales impact?

Can marketing answer the questions:

1) If we need to cut 20% from our marketing

budget, what would we cut?

2) If we need to get 10% more revenues

next year, where would they come from?

3) When does our marketing action affect

performance, and how long does it last?

Do you want to:

1) Agree on facts so meetings

focus on plans to action?

2) Justify budget (changes) in

winning financial language?

3) Deploy analytics to turn data

into better decisions?

You need an analytic dashboard

You want to read this book

You’re gonna like the way it helps

you lift your performance

Not

Really

YES


A. Is it CONCISE?

1. Does it give your boss or CEO an at-a-glance overview of key business drivers?

2. Does it focus on a key few output metrics at each level of decision making?

3. Does it focus on a few inputs the decision maker can influence at each level?

B. Is it INTERCONNECTED?

1. Does it connect key performance indicators to each other?

2. Does it connect marketing inputs to relevant outputs for decision makers?

3. Does it allow users to change the input and observe how outputs change?

C. Is it used ORGANIZATION-WIDE?

1. Does it have short-term + long-term metrics for tactical + strategic decisions?

2. Does it help manage, not just measure performance at each decision level?

3. Is it used in meetings and performance reviews?

IS YOUR REPORTING SYSTEM AN ANALYTIC

DASHBOARD?


2) VISION + PROCESS

How should you measure marketing’s success to contribute to business

goals ?

How do you measure it now ?

How can you bridge that gap?


“It is possibly the single most important opportunity, in a decade, for

your management to reinvent.

But to do so you need to have good metrics, measurements you can

trust and from which you can make sound decisions that advance your

company's business plan.

You need to measure what really counts. Once identified, these

metrics should then be placed in your Dashboard.”

Borenstein, 2009

Start With the Vision


Better performance by analytic dashboards =

Goal alignment with company’s vision

*

Top management support

*

Employee engagement

Start With the Vision


How goal alignment and metrics consensus

get results

Ability to

measure brand

equity

Goal alignment

Ability to

measure

financial

returns

Use of a

dashboard

Metrics

consensus

Revenue

improvement

Learning

Measurement

Enablers

Measurement

AbilitiesOutcomes

+

-

++

+

++++

+

+

++


Today’s marketers must possess a hybrid of traditional marketing skills

and quantitative skills – mixing both art and science. But it’s not enough

to have both on the team; you have to some of each in everyone (like

having a major and minor in college). We’ve started living this at SAP.

To let the science influence the art, we gather data and feedback on our

marketing ideas before we make a full commitment

Jonathan Becher, Chief Marketing Officer, SAP

Process: a) Assemble Your Team


Process b) Gain IT support on data big & small

7 pillars to bridge IT and business units into cooperation

1. IT understands its role is to support business

2. IT knows strengths and quirks of its customer, i.e. business

3. IT does not get isolated, but integrated into decisions

4. Business sees how its ‘need for speed’ creates IT problems

5. Business develops self-discipline for long-term feasibility

6. Business understands set-up costs and maintenance efforts

7. Standardize IT service, but do leave the room for flexibility


Process c) Build your Database

The main goal of a database is to collect, analyze, and distribute

information to the right people at the right time.

5 out of 10 tips on how to manage your database:

1. Make sure your data is accurate and up-to-date

2. Distribute key information to all stakeholders

3. Customize your database

4. Keep it simple and clean

5. Utilize your database at its full capacity


3. SELECT THE BEST METRICS

How have industry leaders come up with the metrics they now use

to guide their decisions?

a) Generate potential Key Performance Indicators

b) Select Leading Key Performance Indicators

c) Integrate online and offline LKPIs

d) Standardize metrics but recognize their different performance

power across setting


3a) What are KPIs ?

Key business

drivers

Aligned with

strategic goals

and objectives

Few in

number

KPIs


GENERATE

POTENTIAL

KPIS WITH

THE KPI

WHEEL OF

DISCOVERY

© BRIGHTPOINT

CONSULTING


3b) Select Leading KPIs that drive

performance

Research and Marketing Input

Metric Source

Potential Key Performance

Indicators (KPIs)Experience

Attitudes, Benefits, Claims

(ABCs)

Insight, qualitative &

quantitative

Leading Performance

Indicators

Lead/Lag

Causality test

Leading Key Vector

Performance Autoregression

Indicators Analysis

Brand

Performance


VAR MODEL CONNECTS MARKETING,

ATTITUDES AND PERFORMANCE


How Your Systems Fit Together to Identify

Leading KPIs

Brand Health

Monitoring

Marketing

Pressure

Marketing Mix

Modeling

Vector Autoregression (VAR)

Consumer

ResponseSales/Share


3c) Include Emerging Channels: Online and

Social Media

3 rules for social media marketing:

1. Begin with setting clear marketing goals and objectives and then

move on to metrics

2. Use both quantitative and qualitative metrics: there is no “silver”

metric

3. Use metrics specific to your company, business and marketing

goals and objectives


Consumer-Initiated Contracts

and Metrics

Metr

ics

Quantity: e.g. Facebook likes and “talked about”, Twitter followers and retweets

Sentiment: how many of the social media mentions are positive, negative or neutral?

Dispersion: do most social media mentions share similar sentiment, or do they differ a lot?

Topic: what exactly are they talking about?

Consumer-Initiated Contracts

Content separated activities Content integrated activities


3d) : Include and Leverage Learning From

Emerging Markets

3 key differences between mature and emerging markets

Mature Markets Emerging Markets

Communication awareness is LESS

responsive to marketing

communication

Communication awareness is MORE

responsive to marketing

communication

The brand attitudes, consideration and

liking are MORE responsive to

marketing communication

The brand attitudes, consideration and

liking are LESS responsive to

marketing communication

Brand liking has a HIGHER sales

conversion

brand liking has a LOWER sales

conversion


Advertising has a

harder time to win

consumer minds in

mature markets, and

to win consumer

hearts in mature

markets

(long-term elasticity)

ADVERTISING RESPONSE OF MIND METRICS


Awareness drives

sales more in

emerging market,

brand liking drives

sales more in mature

market

(long-term elasticity of

sales to MS metric)

SALES CONVERSION OF MINDSET METRICS


4) HOW TO CONVERT DATA INTO

PRODUCTIVE ACTION?

a) Visualize metrics in a dashboard

b) Launch & Renew dashboard in organization

c) Help transition from interpretation to action


4a) Design Your Dashboard

Dashboard design key attributes:

• Simplicity

• Focus

• Clarity

• Compactness

• Leading to action

• Readability

• Insightfulness

• Flexibility


Source: http://www.dashboardinaction.com/, © 2010 Koen Pauwels

http://www.dashboardinaction.com/


4a) Design Your Dashboard

5 out of 10 tips on how to visualize your dashboard:

1. Highlight key metrics that require attention

2. Categorize information with color

3. Present data on dashboards in a consistent way

4. Use meaningful and descriptive titles

5. Avoid cluttering dashboards


Source: http://www.dundas.com/

http://www.dundas.com/


4b) Launch & Renew Your Dashboard

7 things to remember for your dashboard project

success:

1. Dashboards should be useful

2. Dashboards should be aligned with strategy

3. Dashboards should contain the right KPIs

4. Dashboards should be clear and easy-to-read

5. Dashboards should be well planned

6. Dashboards require effective execution and committed people

7. Dashboards are not set in stone, require response to feedback


4c) Change Your Decision Making: From

Interpretation to Action

“Information is not knowledge. The only source of knowledge is

experience.”

Albert Einstein

“The best business decisions come from intuitions and insights

informed by data. Using data in this way allows your organization

to build institutional knowledge and creativity on top of a solid

foundation of data-driven insights”

Bladt and Filbin, Dosomething.org , 2013


Change Your Decision Making: From

Interpretation to Action

Adapt the dashboard output to the needs and decision making style of the user (heatmap, slide bar, more tactical planning tools)

Decide on rules for setting marketing budget and allocation (budget allocation only, budget size and allocation)

Design a (field) experiment to compare marketplace results of proposed action vs. status-quo (optimal budget setting rule)

Address implementation challenges


HEATMAPS EXPLORE FEASIBLE PROFIT

LIFTS

Heat Map of the Interaction of Two Marketing Variables on Profits

Price in $

#REF!10 15 20 25 30 35 40 45 50 55 60 65 70 75

TV

advert

isin

g in thousands o

f $

00.02 1.04 1.92 2.64 3.22 3.65 3.93 4.06 4.04 3.87 3.56 3.09 2.47 1.71

250 0.65 1.68 2.56 3.28 3.86 4.29 4.57 4.70 4.68 4.51 4.19 3.73 3.11 2.35

500 1.25 2.27 3.15 3.87 4.45 4.88 5.16 5.29 5.27 5.10 4.79 4.32 3.70 2.94

750 1.79 2.81 3.69 4.41 4.99 5.42 5.70 5.83 5.81 5.64 5.33 4.86 4.24 3.48

1000 2.28 3.30 4.18 4.91 5.48 5.91 6.19 6.32 6.30 6.13 5.82 5.35 4.73 3.97

1250 2.72 3.74 4.62 5.35 5.92 6.35 6.63 6.76 6.74 6.58 6.26 5.79 5.18 4.41

1500 3.11 4.13 5.01 5.74 6.32 6.74 7.02 7.15 7.13 6.97 6.65 6.18 5.57 4.80

1750 3.45 4.48 5.35 6.08 6.66 7.09 7.37 7.50 7.48 7.31 6.99 6.52 5.91 5.14

2000 3.74 4.77 5.65 6.37 6.95 7.38 7.66 7.79 7.77 7.60 7.28 6.82 6.20 5.44

2250 3.99 5.01 5.89 6.62 7.19 7.62 7.90 8.03 8.01 7.84 7.53 7.06 6.44 5.68

2500 4.18 5.21 6.08 6.81 7.39 7.81 8.09 8.22 8.21 8.04 7.72 7.25 6.64 5.87

2750 4.32 5.35 6.23 6.95 7.53 7.96 8.24 8.37 8.35 8.18 7.86 7.40 6.78 6.02

3000 4.42 5.44 6.32 7.05 7.62 8.05 8.33 8.46 8.44 8.27 7.96 7.49 6.88 6.11

3250 4.46 5.49 6.36 7.09 7.67 8.10 8.38 8.51 8.49 8.32 8.00 7.54 6.92 6.15

3500 4.46 5.48 6.36 7.09 7.66 8.09 8.37 8.50 8.48 8.31 8.00 7.53 6.91 6.15

3750 4.40 5.43 6.30 7.03 7.61 8.04 8.32 8.45 8.43 8.26 7.94 7.48 6.86 6.09

4000 4.30 5.32 6.20 6.93 7.50 7.93 8.21 8.34 8.32 8.15 7.84 7.37 6.75 5.99

4250 4.14 5.17 6.04 6.77 7.35 7.78 8.06 8.19 8.17 8.00 7.68 7.22 6.60 5.84

4500 3.94 4.97 5.84 6.57 7.15 7.57 7.85 7.98 7.97 7.80 7.48 7.01 6.40 5.63

4750 3.69 4.71 5.59 6.32 6.89 7.32 7.60 7.73 7.71 7.54 7.23 6.76 6.14 5.38

5000 3.38 4.41 5.29 6.01 6.59 7.02 7.30 7.43 7.41 7.24 6.92 6.46 5.84 5.08


DECISION RULE: OPTIMIZE OR ADJUST

BUDGET ALLOCATION AND/OR SIZE

Budget allocation only Budget size + allocation

Optimize Ratio of elasticities

Case: online retailer

Rules for optimizing budget

1) Constant ad-sales effect

2) Constant % ad-sales effect

Adjust

Shift allocation in

recommended direction

Case: furniture marketer

Shift size and allocation

in recommended direction

Case: Inofec


CONSTANT EFFECT VS CONSTANT

ELASTICITY

0

2

4

6

8

10

12

1 2 3 4 5 6 7 8 9 10

Sa

les

In

cre

as

e

Marketing Spending

Linear Sales (constant effect)

Multiplicative Sales (constant elasticity)


5) Nurture the Culture and Practice of

Accountability in your organization

“The real revolution in data will be a change in organizational behavior

and culture — and those changes are hard and take time. Many

organizations will struggle with the shift, and frankly, many will be

usurped by new competitors who grow up natively with this new

worldview.”

Scott Binker, Chief Marketing Technologist, 2013.


Nurturing the Culture and Practice of

Accountability in your Organization

Dashboard implementation is an everyday responsibility and requires a

cultural shift towards adoption of measurement practices

5 ways to stimulate dashboard use as a part of your culture

1. Make dashboard software a part of user desktops;

2. Emphasize employee benefits: ability to track, adjust, show;

3. Encourage a dashboard trial;

4. Incorporate dashboards into day-to-day operations;

5. Develop a performance-related incentive scheme.


CONCLUSION: CALL TO ACTION

Germann et al. (2012) uncover 5 key success factors for effective use

of marketing analytic dashboards that increase company’s performance

by 8-20%:

Top management support (see Chapters 1 and 3)

A supportive analytics culture (see Chapters 4 and 14)

Information technology support (see Chapter 5)

Appropriate data (see Chapter 6)

Analytic skills (see Chapters 7-10 and 13)


CONCLUSION: CALL TO ACTION

“You don’t need software –

You need courage and a vision”

Borenstein (2009)


Check out the book on Amazon.com

in the U.S. and McGraw-Hill in Europe.

For questions and feedback, please

contact the author!

Prof. Dr. Koen Pauwels

[email protected]

www.notsizedata.com

http://www.amazon.com/Its-Not-Size-Data-How/dp/0814433952

https://www.mcgraw-hill.co.uk/html/0814433952.html

mailto:[email protected]

http://www.marketdashboards.com