Unlocking the Value of Customer Data

June 20, 2013

Presented By:Robert J. MooreCEO, RJMetrics

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I. Enabling Data-Driven Decisions

II. Making Data-Driven Decisions

Contents

Enabling Data-Driven Decisions

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Single Version of the Truth

SYMPTOMS

“How do your team members get consistent

data-driven answers to their business questions?”

• Static deliverables (e-mail attachments, printed reports)

• Human roadblocks to data (usually technical)

• Online (internet or intranet) access point

• Individual logins and “sandbox” environments

SOLUTIONS

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Accuracy

SYMPTOMS

“Is the output correct?”

SOLUTIONS• Incorrect data

• Doubts about correctness of data

• Auditability

• Ties back to source data

• Public access to business logic assumptions

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Communicate Priorities

SYMPTOMS

“What metrics actually matter in a sea of options?”

SOLUTIONS• Inefficient use of time in

dashboarding environment

• Conflicting KPIs by team

• Centralized messaging

• Dashboard sharing

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Reduce Maintenance Burdens

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SYMPTOMS

“What keeps the system up-to-date and working properly?”

SOLUTIONS• Stale data and buggy features

• Increased burden on tech team

• Leverage platforms

• Test and iterate

Making Data-Driven Decisions

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Marketing ROI

Know what your customers are worth.

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January 2010April 2010July 2010

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Shifting Marketing Spend

“We’re able to isolate small, long-tail sites that have ROI that is 16x what some of the larger sites provide. And we can find these at scale.”

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Direct Marketing

Identify individual marketing targets based on behavioral indicators.

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Direct Marketing

Acknowledge high-value customers

Retain at-risk customers

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Merchandizing and Pricing

Stock your shelves with data.

Most analyses we can run to determine a high-value customer can also be used to identify high-value products:

– Cohort Analysis

– PLV Growth Over Time (Product Lifetime Value)

– Correlation to High-Value Customers

– Value by Category/Vendor/Margin

– Churn Analysis by Product (SaaS)

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Merchandizing and Pricing

Studied the relationship between price points and their demand curve, leading to drastic margin improvements across their product mix.

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High-Confidence Forecasting

• Future behavior of existing base– Individually model each customer cohort for out

months– “Peer” cohorts are an excellent indicator of future

behavior

• Full lifecycle behavior of new customers– Varying marketing spend across different channels

can yield different long-term behavioral predictions– Data can inform both performance projections and

expected acquisition costs

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Raising Capital

• Investors and acquirers are more data-driven than ever.

• Simplify due diligence by communicating KPIs and answering data-driven questions using your centralized dashboarding system.

• Investors ask data-driven questions for a reason – go looking for skeletons in your own closet.

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Raising Capital and Board Reporting

• Fab.com ran a $40MM fundraising process by steering all potential investors through an RJMetrics dashboard

• Have control over presentation of your own data, answer obvious questions before they’re asked, and demonstrate awareness of your own key metrics

Thanks!