A Data-Driven Marketing Plan - Deanna Kawasaki

AIM 2010
Creating a Data-Driven Marketing Plan for a Hyper Competitive Environment
Deanna Kawasaki

Data data everywhere….
The actual cost efficiency of information processing doubles every 12-18 months
In 1978 the Cray 1 super computer processed 160 million instructions per second – it was the fastest, most powerful computer in the world
When Sony introduced the PlayStation in 1995, it processed 500 million instructions per second making it 3 times as powerful as the Cray 1
The Cray 1 cost $20million while the PlayStation costs $299 at retail
Today’s computer is tomorrow’s video game

Evolution of Data
Knowledge without action is wasted effort
Action
Knowledge was created as information accumulated over time and was supplemented with analysis and human imagination
Knowledge
As data elements were blended and reviewed using reporting tools, information was created
Information
Data became a critical tool in marketing as systems made the creation and collection of data economically feasible and timely
Data

Knowledge Transformation
“The ability to take data—to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it—that’s going to be a hugely important skill in the next decades”
Hal Varian , Google Chief Economist

Case 1: Base Measures
Keep it Simple

Is the phone being answered?
Answering the phone is a basic dependency measure to increasing the goal of increasing the number of appointments set
Ad Source and call handling performance is secondary of the call isn’t getting picked up

Large SW PMCo reaps the rewards of starting with the basics
70% increase in appointments set in 30 days
By keeping-it-simple and focusing on the basics of answering the call, time management and setting the appointment, this Southwest company significantly improved their core operational measures in 1 month

Which ad sources produce appointments?
330 area code displayed trend change in appt. producing ad sources
Print in 2010* led to more appointments set than in 2009
2010sample
Appt Set Calls
by ad source type
2009 sample
Appt Set Calls
by ad source type

330 Area Code top* appointment producing ad sources
Appointment set rates for top ad sources in the sample ranged from 44%-57% in 2009 to 48%-65% in 2010
Top 10 ad sources
in 2010 sample
Top 10 ad sources
in 2009 sample
Sample: based on sample

Case 2: Look Toward the Horizon
A Path to Transforming Data into Action
Creating Knowledge

First, Creating Information
Credit Card Payment Behavior Changed
Monthly analysis of payment trends suggested a shift began in 2008 with Finance related cash flows increasing while Credit Card and Check/Cash/Debit options decreasing

Next, Gain Knowledge through Analysis
The decrease in share percentage of Credit Card cash flow closely mirrors ‘cost-of-money’ indicators like the 30 yr conventional mortgage rate
As credit companies tightened their limits, customers looked for alternate financing options
Eighty-eight million accounts and credit lines, representing $751 billion in credit, have been closed since September of 2008.
In September 2008 credit card debt hit an all-time high of $975 billion. Banks shed nearly $76 billion in card account balances over the 11 months preceding August 2009. The Fed reported the total outstanding credit card debt at the end of August 2009 was $899 million.
*Interest Rates sourced from Federal Reserve: http://www.federalreserve.gov/RELEASES/H15/data.htm#top
Financial Sources: www.cardtrak.com, September 2009, www.federalreserve.gov

Step 3: ActionDirect Marketing Actions
While economic indicator trends remain constant and credit is tight, campaigns centering on OAC are most appealing to this target group of customers
When economic conditions begin to improve, credit begins to “loosen”, new campaigns such as discounts should be retested for impact
Teach, train and transfer knowledge to partners and assist them with identifying triggers of economic improvements that best predict a change in process that will affect them and how they can test waters to keep them ahead of competitors

Case 3:Finding look-a-likes
Profiling

Profiling: what do you know about who chose you?
Customers who purchased products between Oct09 and Mar10* tended to report addresses within 6 to 9 miles of the location they visited
Large proportion traveled less than 20 miles to location
farther
distance
nearer

Are your customers coming from the same areas that are driving the most calls?
Mid-West states of IO, IL and IN received more calls and sold more units
GA, NC, FL and CA received higher than average calls but sold fewer units
More Sold
Units sold/pop
Less Sold
More Calls
Connected Calls
Less Calls

Deeper look at a single location shows an opportunity
All person’s who purchased in Feb10 from Carlsbad came from within a 10 mile radius
3 of the 4 purchasers came from zip codes with lower call volumes
More Calls
Connected Calls/pop
Less Calls

Closer….Closer Still….
Median HH Income:
$69.5k
Median HH Income:
$54.6
Median HH Income:
$57.8k
Median HH Income:
$48k
Median HH Income:
$63.7k
Median HH Income:
$65.3k
Median HH Income:
$68.9k
Median HH Income:
$63.7k
Median HH Income:
$97.8k
Median HH Income:
$99.6k
Median HH Income:
$64.7k
More Calls
Median HH Income:
$81.9k
Connected Calls/pop
Less Calls

Case 4: Lead Handling
That which is focused on, improves

Can the outcome of a call be influenced by how it is handled?
A lead call can be viewed as having a particular series of ordered events where each of these stages has a measurable impact on a desired outcome, a lease
Analysis indicates that particular industries can successfully influence their desired outcome by focusing on key, relevant, stages of a call

Automotive
Call Handling’s Influence on Setting the Appointment
Very strong correlations exist between the call-to-appointment conversion rate and the well Handling of Objections

Hearing Aid
Significant correlations exist between the call-to-appointment conversion rate and the well handling of the Qualifying Needs section

Multi-Family
Consistently, strong correlations exist between the call-to-appointment conversion rate and the well handling of the Introduction and Lead Information section

Thank You

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A Data-Driven Marketing Plan - Deanna Kawasaki

by Joshua Tree Internet Media, LLC on May 05, 2010

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A Data-Driven Marketing Plan - Deanna Kawasaki — Presentation Transcript