#inspire14
Improving Marketing ROI
with Predictive Analytics
Greg Bucko
Manager, Customer Insights
Southern States Coopera...
#inspire14#inspire14
Introduction
Evolution
Ape Like
Approach
Advanced
Analytical
Approach
#inspire14#inspire14
Big Data vs. Usable Data
X
#inspire14#inspire14
Biggest Challenge?
TECHNICAL CULTURAL
#inspire14#inspire14
Marketing Channels
Social Media
TV
Email
Print
Direct Mail
Happy Customer!
#inspire14#inspire14
Marketing Channels
Social Media
TV
Email
Print
Direct Mail
How do we improve
Return on Investment?
Ha...
#inspire14#inspire14
“The Shotgun Approach”
• The budget dictated the size of the
customer list
• Sorted by spending and s...
#inspire14#inspire14
How We Got There
Recognized
the Need
Worked With
Dr. Dan on
Case Study
Began the
“Buy-in”
Process
#inspire14#inspire14
How We Got There
Built Our First
Model
Analyzed
Results
Communicated
#inspire14#inspire14
How We Got There
Iterated
Communicated
Iterated
#inspire14#inspire14
Technical Aspects – Building Modeling Set
Identified customers who
responded to past direct mail
Calc...
#inspire14#inspire14
Technical Aspects – Modeling
Looked for relationships in the data
Oversampled the responders
Tried di...
#inspire14#inspire14
Technical Aspects – Scoring
Chose the best model
Scored the database
Sorted by score high to low
#inspire14#inspire14
Technical Aspects – Analyze Results
Calculate response rate, unique
SKUs per transaction, ROI, etc.
R...
#inspire14#inspire14
Cultural Aspects
#1 Objection to Overcome:
“Wait…what? We are no longer sending to
all of our custome...
#inspire14#inspire14
The Answer…
…is in the results.
Drop 1 Drop 2 Drop 3
Sent To
11% 11%
24%
Drop 1 Drop 2 Drop 3
Respons...
#inspire14#inspire14
The Answer…
…is in the results.
Drop 1 Drop 2 Drop 3
Margins
136% 116%
479%
Drop 1 Drop 2 Drop 3
ROI
...
#inspire14#inspire14
In Summary
Usable Data > Big Data
Cultural Change > Technical Change
Test. Adjust. Scale Up. Show Res...
#inspire14
THANK YOU!
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Inspire 2014 – Southern States Cooperative: Improving Marketing ROI with Predictive Analytics

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In 2012, Southern States Cooperative entered into a case study with Alteryx to utilize the new predictive tools available. The goal was simple: utilize predictive analytics to improve the response rate and ROI on a direct mail campaign. A year later Southern States Cooperative has fully integrated predictive modeling into almost every direct mail effort that goes out and the results have been staggering. Response rates have increased from an average of 3% to over 10% after modeling and the ROI averages nearly 200%. In this presentation Greg will walk you through how they use predictive analytics to improve marketing ROI as well as other ways in which Southern States Cooperative understands their customers better with advanced analytical tools made possible through the use of Alteryx.

Greg Bucko, Manager of Customer Insights, Southern States Cooperative

Published in: Technology, Business
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Inspire 2014 – Southern States Cooperative: Improving Marketing ROI with Predictive Analytics

  1. 1. #inspire14 Improving Marketing ROI with Predictive Analytics Greg Bucko Manager, Customer Insights Southern States Cooperative
  2. 2. #inspire14#inspire14 Introduction Evolution Ape Like Approach Advanced Analytical Approach
  3. 3. #inspire14#inspire14 Big Data vs. Usable Data X
  4. 4. #inspire14#inspire14 Biggest Challenge? TECHNICAL CULTURAL
  5. 5. #inspire14#inspire14 Marketing Channels Social Media TV Email Print Direct Mail Happy Customer!
  6. 6. #inspire14#inspire14 Marketing Channels Social Media TV Email Print Direct Mail How do we improve Return on Investment? Happy Customer!
  7. 7. #inspire14#inspire14 “The Shotgun Approach” • The budget dictated the size of the customer list • Sorted by spending and size • Wimpy return on investment Where We Were “The Targeted Approach” • Focus on propensity • Smaller lists • Bigger return Where We Wanted to Be Setting Goals
  8. 8. #inspire14#inspire14 How We Got There Recognized the Need Worked With Dr. Dan on Case Study Began the “Buy-in” Process
  9. 9. #inspire14#inspire14 How We Got There Built Our First Model Analyzed Results Communicated
  10. 10. #inspire14#inspire14 How We Got There Iterated Communicated Iterated
  11. 11. #inspire14#inspire14 Technical Aspects – Building Modeling Set Identified customers who responded to past direct mail Calculated statistics like recency, frequency, and monetary value for customers Appended Experian household demographic data
  12. 12. #inspire14#inspire14 Technical Aspects – Modeling Looked for relationships in the data Oversampled the responders Tried different modeling types
  13. 13. #inspire14#inspire14 Technical Aspects – Scoring Chose the best model Scored the database Sorted by score high to low
  14. 14. #inspire14#inspire14 Technical Aspects – Analyze Results Calculate response rate, unique SKUs per transaction, ROI, etc. REPEAT
  15. 15. #inspire14#inspire14 Cultural Aspects #1 Objection to Overcome: “Wait…what? We are no longer sending to all of our customers?”
  16. 16. #inspire14#inspire14 The Answer… …is in the results. Drop 1 Drop 2 Drop 3 Sent To 11% 11% 24% Drop 1 Drop 2 Drop 3 Response Rate
  17. 17. #inspire14#inspire14 The Answer… …is in the results. Drop 1 Drop 2 Drop 3 Margins 136% 116% 479% Drop 1 Drop 2 Drop 3 ROI We have now applied target modeling to all direct mail over the last year and have seen significant incremental lift.
  18. 18. #inspire14#inspire14 In Summary Usable Data > Big Data Cultural Change > Technical Change Test. Adjust. Scale Up. Show Results. Repeat. Any Questions?
  19. 19. #inspire14 THANK YOU!

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