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Ten Ways to Make Analytics Actionable
 

Ten Ways to Make Analytics Actionable

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Unravel the mystery around unused dashboards and analytics with this engaging presentation from HANSA Marketing Services.

Unravel the mystery around unused dashboards and analytics with this engaging presentation from HANSA Marketing Services.

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    Ten Ways to Make Analytics Actionable Ten Ways to Make Analytics Actionable Presentation Transcript

    • Analytics Ten ways to make analytics actionable
    • Agenda  Executive summary – What is an effective dashboard?    Effective campaign dashboards Effective customer dashboards 10 tips for effective dashboards 2
    • You’re off to a bad start if…  …you hear dashboard users say – – – – –  “So what” “nice to know” – what am I supposed to do next? “where’d this number come from?” “can this be right?” They are already inundated with data, how will yet another dashboard help them? …you begin your development with visualizations in mind (dials, gauges, thermometers) – Stop looking to airplane cockpits for the answer – Don’t fall in love with a pretty (inter)face 3
    • Why do dashboards sit on a shelf ?   Lack of planning, lack of buy-in No champions to socialize your work – “Management doesn’t support me” – “Finance thinks all I want is more money for marketing”  Data pitfalls: – – – –  Users stumble on definitions, calculations Numbers look suspicious “this can’t be right” No callouts or explanations, “you figure it out” attitude Spotty data feeds, lots of asterisks and insignificant results Effective dashboards require planning 4
    • Effective dashboards always…    Lead to actions Have impact on the business Are part of decision making – – – – Good news|bad news? Going up|going down? Something worked New customer insights Key takeaway: Effective analytics always have actions attached to measurements 5
    • Agenda  Executive summary – What is an effective dashboard?    Effective campaign dashboards Effective customer dashboards 10 tips for effective dashboards 6
    • If the goal is to ensure marketing accountability…   Establish an ROI objective, then benchmark against it Track back to the original strategy – Tip: Insert an example of the creative  Associate actions with results – Reallocate marketing investment – channel, vehicle – Try new things (e.g., sweeten offer to acquire customers, reduce the offer for existing customers to optimize margin)  Why do you think something happened? – Plan on adding annotations, explanations, glossary – Plan on making recommendations 7
    • Example of KPIs as they relate to targets  Key Performance Indicators (KPIs) relative to target  Restating observation vs target 8 Source: Klipfolio
    • Example of annotations, definitions, narrative  Annotation/callout – What else was in market? – What was the competition doing?  Definitions – What is a “customer”? What time period are we looking at? – Are you using Gross or Net Margin? 9 Source: Klipfolio
    • Example of comparisons  Year over Year (YoY) and Month over Month (MoM) example from ClearSaleing 10
    • Example of funnels %’s represent conversion to the next phase Salesforce.com funnel describing the stages of b2b marketing Each number brings up a question: What were the best sources? Which attracted new customers? Funnel example from VisualIQ Omniture’s SiteCatalyst digital marketing funnel Funnel example from Value Watcher How do these compare YoY, MoM? 11
    • Example of paths Google Analytics visitor flow Illustration from Microsoft Atlas whitepaper ION Infographic referencing MarketingSherpa statistics 12
    • Campaign dashboard example Campaign analytics measure audiences, offers, ideas Sales/Piece $2.00 $3.00 $4.00 $3.00 8,000 7,000 Circ AOV Resp Rate Sales/Piece Key market 1 Key market 2 1,000,000 4,000,000 $50.00 $35.00 6.0% 2.0% $4.00 $2.00 Grand Total 5,000,000 $40.00 3.8% $3.00 Circ AOV Resp Rate Sales/Piece 1,000,000 2,000,000 1,900,000 100,000 $55.00 $65.00 $25.00 $40.00 5.0% 6.0% 2.0% 3.0% $4.00 $1.75 $2.00 $2.00 5,000,000 $40.00 3.8% $3.00 Circ Buyers Trans Sales Sales/Piece 300,000 200,000 500,000 500,000 500,000 1,000,000 1,000,000 1,000,000 5,000,000 90,000 50,000 40,000 40,000 35,000 20,000 15,000 10,000 300,000 110,000 75,000 55,000 50,000 40,000 22,000 16,500 11,500 380,000 Distance to Store Within 1 mile 2 miles 3 miles 4 miles 5 miles 6 to 10 miles 11 to 15 miles 16 to 20 miles TOTALS $ 4,000,000 $ 3,000,000 $ 3,000,000 $ 2,000,000 $ 1,000,000 $ 900,000 $ 650,000 $ 450,000 $ 15,000,000 3,000 2,000 1,000 $13.33 $15.00 $6.00 $4.00 $2.00 $0.90 $0.65 $0.45 $3.00 Margin $2,000,000 $1,500,000 $1,500,000 $1,000,000 $ 500,000 $ 450,000 $ 325,000 $ 225,000 $7,500,000 $ $ $ $ $ $ $ $ $ 55.00 45.00 50.00 45.00 25.00 40.00 35.00 35.00 40.00 3/7/2010 3/5/2010 3/3/2010 3/1/2010 2/27/2010 2/25/2010 2/23/2010 2/21/2010 2/19/2010 2/17/2010 2/15/2010 2/9/2010 2/13/2010 2/7/2010 AOV 2/11/2010 2/5/2010 2/3/2010 2/1/2010 1/30/2010 0 1/28/2010 Grand Total 4,000 1/4/2010 $25 off $35 off Gift w Purchase Control group 5,000 1/2/2010 Discount 6,000 1/26/2010 3.8% 4.5% 3.2% 4.0% 9,000 1/24/2010 $40.00 4.0% 3.0% 3.8% 45.00 35.00 40.00 Resp Rate 2 10,000 1/22/2010 3.2% 4.9% 4.6% Resp Rate AOV 50.0% $ 50.0% $ 50.0% $ 1/20/2010 $55.00 $45.00 $35.00 $5,000,000 $2,500,000 $7,500,000 1/18/2010 Resp Rate 5,000,000 Market AOV 1,000,000 2,000,000 2,000,000 1. List x 2. List y 3. List z Circ GM% 1/16/2010 $2.50 $1.50 $3.00 Margin 1/14/2010 250,000 $10,000,000 130,000 $ 5,000,000 380,000 $15,000,000 Sales/Piece 1/8/2010 List Priority Sales 1/12/2010 200,000 100,000 300,000 Trans 1/6/2010 Retail Direct Total Buyers 1/10/2010 Channel Customers  Resp Rate Resp Rate 2 7.0% 6.0% 6.0% 5.0% 4.0% 2.0% 1.5% 1.0% 3.8% 7.2% 6.5% 6.4% 5.5% 4.0% 2.2% 1.7% 1.2% 4.0% 13
    • Email dashboard example in Excel Overall health of the program (each tab is a deep dive) Yes Email Capture Rate Trend %/Total Linear (%/Total) 90.0% 25,000 80.0% 20,000 70.0% 15,000 60.0% 10,000 50.0% 5,000 40.0% Jan-10 14 Dec-09 Oct-09 Nov-09 Sep-09 Jul-09 Aug-09 Jun-09 Apr-09 May-09 Mar-09 Jan-09 Feb-09 Dec-08 Oct-08 Nov-08 Sep-08 Jul-08 Aug-08 Jun-08 Apr-08 May-08 Mar-08 Feb-08 0 30.0% Pct New Customers w/Email 30,000 Total New Customers 
    • Strategic review leveraging a dashboard  Strategic review with alerts and recommendations Supports a recurring meeting Total Program Performance Summary  $700,000 $625,000 $550,000 this week last week +/- month to date run rate vs. last year Impressions $475,000 Weekly chart Weekly Chart $400,000 Affiliate Paid Search $325,000 $250,000 Visits (clicks) Click charges/Pub. Comm. Transactions $175,000 Sales ($) $100,000 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 PFX Fee Total Fee Sales this week last week $1,174,583 -65% Paid Search $774,027 -65% Data Feed $400,556 -65% $18,244 -65% $1,192,827 -65% Search Affiliate Total +/- - month to date run rate $1,174,583 $1,174,583 vs. last year + / -65% $774,027 $774,027 -65% $400,556 $400,556 -65% $18,244 $18,244 -65% $1,192,827 $1,192,827 -65% - vs. plan -65% -65% -65% -65% -65% +/- Cost per click - Conversion Rate Avg. Order Value Revenue share Performance to Goal Alerts $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 15
    • Agenda  Executive summary – What is an effective dashboard?    Effective campaign dashboards Effective customer dashboards 10 tips for effective dashboards 16
    • Goal of customer dashboards  Customer dashboards give campaign data context – – it’s not about response rates and conversions rates but about loyalty, advocacy and lifetime value   Customer data brings all the channels together Customer data adds to the missing ingredient for product sales: – Who’s buying the product? – What else are they buying (market basket analyses)? – Is that product their first- or 10th purchase? 17
    • Why is customer data important?  Because campaigns don’t buy, people do – Customers are in control – more “pull” than “push” – Customers see brands not channels – Customers don’t care who gets credit for the sale 18
    • 2 approaches to campaigns… 1. How “deep” should I circulate? 1. Batch & Blast Mail1 Email1 Email2 Y Y N Email3 Mail2 1 2. Customer Centric 2 Y N 3 . . . 2. What does my customer want?
    • What’s wrong with Batch & Blast?  Batch & Blast is an old model of marketing outreach – Selects audiences based on a marketing calendar – Each campaign seen as a distinct event, leads to overmailing – Response rates of 1% are acceptable (99% failure rate)  What’s wrong? – Presumes customers are in market on our timetable – Slave to “what have you done for me lately” mentality • Audiences are selected based on Recency – Frequency model for expensive media such as telemarketing and direct mail – For email, it becomes one size fits all • Anyone with an email address gets all email campaigns, no targeting 20
    • What this looks like to a customer (mail edition) Campaigns within a promo period Campaign 1 Campaing 2 Campaign 3 Campaign 4 Campaign 5 21
    • What this looks like to a customer (email edition)    Customers being pummeled by email Despite clear differences in engagement Everyone gets the same level of attention RFM and Email analysis Active Email 0 - 3 Mos 70,960 4 - 6 Mos 79,305 7 - 12 Mos 131,193 0-12M buyer 281,458 % 74.6% 83.4% 80.2% 79.5% 13 - 18 Mos 19 - 24 Mos 25 - 36 Mos 37 - 48 Mos 49+ Months Grand Total 75.2% 3,550,586 71.7% 2,813,285 67.4% 4,036,381 44.8% 2,173,384 24.9% 2,035,069 61.1% 23,107,479 Recency 110,122 94,968 160,279 73,727 60,842 781,396 Total Emails % who Opens % who Clicks Emails /Buyer Openers Opened Opens /Buyer Clickers Clicked Clicks /Buyer CTR 2,124,751 29.9 43,580 61.4% 339,099 4.8 33,304 46.9% 115,778 1.6 5.4% 42,724 53.9% 342,965 4.3 30,743 38.8% 102,063 1.3 4.6% 2,212,122 27.9 57,161 43.6% 407,003 3.1 36,133 27.5% 95,216 0.7 2.3% 4,161,901 31.7 51.0% 1,089,067 3.9 100,180 35.6% 313,057 1.1 3.7% 8,498,774 30.2 143,465 32.2 29.6 25.2 29.5 33.4 29.6 44,609 33,669 49,156 21,294 16,946 309,139 40.5% 310,592 35.5% 221,741 30.7% 308,036 28.9% 135,273 27.9% 111,304 39.6% 2,176,013 2.8 27,159 2.3 19,487 1.9 27,007 1.8 11,350 8,953 1.8 2.8 194,136 24.7% 65,970 20.5% 43,939 16.8% 57,400 15.4% 23,129 14.7% 17,889 24.8% 521,384 0.6 0.5 0.4 0.3 0.3 0.7 22 1.9% 1.6% 1.4% 1.1% 0.9% 2.3%
    • Enter customer dashboards  Customer dashboards start with the customer lifecycle – Acquisition versus Retention versus Reactivation – The way customers begin makes a difference  Customer dashboards provide the longitudinal view – – – –  Customer segmentation comes first Each segment has joiners, stayers, leavers as times goes by Each has its own repurchase rate and value Each has its own trajectory (rate of change) Most importantly, each scenario has an action plan – Example: Triggered communications 23
    • Step 1a: Customer segmentation  Customer segmentation based on value 24
    • Step 1b: Customer segmentation  Customer segmentation for new customers 25
    • Step 2: Joiners, Stayers, Leavers  Customer segments at Period 1 Period 1 Segment (conceptual) Advocates Repeat buyers New and Hot New and Not High dollar, loyal fans, nearing attrition High dollar, trial byrs, nearing attrition Operational 0-3M 3x+ $51+ 0-3M 2x $51+ 0-3M 1x $51+ 0-3M 1x $50 or less 4-6M 3x+ $51+ 4-6M 1x $51+ Customers 30,000 45,000 30,000 75,000 etc. 25M+ 3x+ $51+ Dormant buyers, worth reactivating Low dollar, trial byrs who went dormant 25M+ 1x $50 or less total 150,000 250,000 580,000 26
    • Step 2: Joiners, Stayers, Leavers  Customer segments at Period 2 Period 1 Segment (conceptual) Advocates Repeat buyers New and Hot New and Not High dollar, loyal fans, nearing attrition High dollar, trial byrs, nearing attrition Operational 0-3M 3x+ $51+ 0-3M 2x $51+ 0-3M 1x $51+ 0-3M 1x $50 or less 4-6M 3x+ $51+ 4-6M 1x $51+ Period 2 Customers Customers 30,000 30,000 45,000 44,900 10,000 25,000 30,000 26,000 75,000 70,000 etc. Dormant buyers, worth reactivating 25M+ 3x+ $51+ Low dollar, trial byrs who went dormant 25M+ 1x $50 or less total 150,000 250,000 145,000 245,100 580,000 596,000 27
    • Step 2: Joiners, Stayers, Leavers  Customer segments between Period 1 and Period 2 Period 1 Segment (conceptual) Advocates Repeat buyers New and Hot New and Not High dollar, loyal fans, nearing attrition High dollar, trial byrs, nearing attrition Operational 0-3M 3x+ $51+ 0-3M 2x $51+ 0-3M 1x $51+ 0-3M 1x $50 or less 4-6M 3x+ $51+ 4-6M 1x $51+ =====> Customers Joiners Leavers 30,000 100 100 200 300 45,000 10,000 25,000 30,000 1,000 75,000 5,000 5,000 10,000 Period 2 Customers Comments 30,000 Looks like nothing happened 44,900 10,000 Welcome stream on steroids 25,000 Normal welcome stream 26,000 70,000 etc. Dormant buyers, worth reactivating 25M+ 3x+ $51+ Low dollar, trial byrs who went dormant 25M+ 1x $50 or less total 150,000 250,000 580,000 5,000 5,000 10,000 9,900 145,000 Best bets for winback 245,100 Let them attrit 596,000 28
    • Step 3: Action plan - triggered communications  Behaviors that trigger a marketing communication – Buying behavior (transaction, spend, ship status) – Lack of buying behavior (time has gone by, abandoned cart) – Channel behavior (bought online/pickup at store, loaded shopping cart/shopped at retail, “contact me” form) – Loyalty behavior (enrolled in loyalty program, earned an award, redeemed an award, close to an award threshold) – Segment behavior (rhythm of purchase, replenishment) – Site behavior (transaction at the site- not individual level) – Post demand behavior (return) or customer service call 29
    • Customer dashboard example Names through: Customers Total New New and Hot New and Not Reactivated Last Month This month Main product 1 Last Month 250,000 275,000 10,000 1,000 4,000 10,000 Main product 2 This month Last Month Order Penetration % 13,000 1,300 5,000 11,000 This month Last Month Order Penetration % 25.0% 35.0% 45.0% 20.0% 30.0% 40.0% Main product 3 Order Penetration % 25.0% 35.0% 45.0% 20.0% 30.0% 40.0% This month 25.0% 35.0% 45.0% 20.0% 30.0% 40.0% 3,500 30.0% 1,500 28.0% 1,000 26.0% 24.0% 500 D… N… O… S… J… A… J… A… M… M… J… F… D… N… S… O… 22.0% A… 0 J… 50,000 10,000 5,000 32.0% J… 50,000 10,000 5,000 2,000 A… Buying monthly Twice a Month Weekly 34.0% M… Rhythm 36.0% 2,500 M… 500 55,000 110,000 J… 1,000 50,000 100,000 38.0% 3,000 F… Used-to-Be-Hot Lapsed Account "One and Done" 150,000 160,000 # NTF Accounts Inactives 40.0% 20.0% 30 6M Retention % Key Customer Metrics
    • Not about the tool  Integrate with existing work, don’t presume to replace anything with a magic dashboard – The dashboard consumer is always going to add their spin – MS Excel, MS PowerPoint  Don’t forecast; simulate – Make your dashboard interactive with what if scenarios  My favorite dashboard solutions – – – – – Alterian’s Alchemy, best campaign interface MicroStrategy, best integration with Microsoft Office Klipfolio, best marketing applications Tableau, best gallery beyond marketing Dundas, best visualizations 31
    • Push to PowerPoint
    • Push to PowerPoint
    • Agenda  Executive summary – What is an effective dashboard?    Effective campaign dashboards Effective customer dashboards 10 tips for effective dashboards 34
    • Ten tips for effective dashboards 1. Plan effectively, know your audience, get their buy-in ahead of time, survey them afterwards 2. Vet all of the KPIs before they’re published (especially with finance), centralize definitions 3. Don’t be afraid of MS Excel, promote dashboard’s ability integrate into someone else’s work 4. Show screenshots of the creative 5. Drill down for more detail; but be able to aggregate up for the contextual overview 35
    • Ten tips for effective dashboards 6. Less is more; don’t use visualizations indiscriminately, what are your top 5 KPIs? 7. Always put the numbers into context (e.g., trends, YoY comps, benchmarks) 8. Leave space for user commentary, reactions, disagreements; but start the ball rolling with your recommendations 9. Tell a story; don’t be boring 10. Every section should have an associated action 36
    • Effective dashboards always…    Lead to actions Have impact on the business Are part of decision making – – – – Good news|bad news? Going up|going down? Something worked New customer insights Key takeaway: Effective analytics always have actions attached to measurements 37
    • Roy Wollen President, Hansa Marketing Services Inc. (847) 491-6682 Roy.Wollen@HansaMarketing.com www.HansaMarketing.com http://www.linkedin.com/company/404316?trk=tyah