Epsilon and Transamerica recently co-presented The successful analytics organization at the LIMRA Big Data Analytics Conference. The session was well attended and thought-provoking.

1. ©2014 Epsilon. Private & Confidential
June 26, 2015
The Successful Analytics
Organization

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Share our perspective on the underpinnings of a
center of excellence in analytics and examples of
best-in-class work.
Objective

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Organizations
believe in the
potential of
marketing
analytics…
83%
increase in spending on
marketing analytics by 2018
6.4%
11.7%
2015
2018
Contribution of
marketing analytics
remains low and is not
improving
…but the reality is
CMOs are
struggling to see
the value.
Low
(1)
High
(7)
(3.2)
Source: Ad Age (2014 study by McKinsey, Duke University, and the AMA)
http://www.cmosurvey.org/results
Low
(1)
High
(7)

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1) Establish a mission for the analytics function – grounded in
a clear understanding of the business imperatives
2) Create an identity for the group (branding)
3) Develop an analytics roadmap of initiatives that fulfill the
mission
4) Build a compelling framework – a construct for end-to-end
services that supports the branding and roadmap
5) Ensure the requisite enablers are place – data, tools and
people
A strategy for a
Center of
Excellence in
Analytics.

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1) Establish a
mission for the
analytics function.
Sample Mission Statements
“Provide a range of services that help marketers
optimize the marketing mix – audience selection,
offers, channels, cadence/frequency, messaging &
creative”
“Enable highly personalized communications that
increase customer engagement and lead to improved
marketing results”
“Center for Advanced Analytics will utilize advanced
analytics practices to build solutions for our
customers, prospects and the organization, as a
whole, which can be deployed to identify & drive our
customer strategies”

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CDM (Customer Development
Marketing)
2) Create an
identity for the
group (branding)
and stake your
claim as the
preferred provider.
Insights & Analytics
CIA (Customer Insights & Analytics)
Global Marketing Insights & Analysis
CKS (Customer Knowledge System)
Analytics
ACE (Analytical Center of Excellence)
CAV (Customer Analytics Vault)
Analytics & ResearchCustomer Insights & Analytics
Decision Sciences Group
CKC (Customer Knowledge Center)
COT (Customer Offers &
Targeting)
Center for Advanced Analytics

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3) Develop an analytics roadmapDiscover stage
• Assess the business
• Account for all relevant areas of the
business/lifecycle
• Identify roadblocks and outline a
mitigation plan
Gap analysis stage
• Understand the existing state
• Outline the current state
• Identify gaps and opportunities for
improvement
• Address any potential barriers
Outcome alignment stage
• Align analytics with goals
• Document all goals
• Tie analytics to goals (not vice versa)
• Detail the scope and reach a consensus
among all key stakeholders/ business
owners
Priority mapping stage
• Estimate the level of effort required
• Prioritize analytic projects
• Communicate timelines, expectations
and determined priorities
1
2
3
4

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… the roadmap should support the entire customer lifecycle.
Win-backRetain
Strategicandanalytictoolkits
Engage & growAcquisition Onboard
Leads New customers Active customers At-risk customers Lost customers
– Acquisition
✔ Predictive
modeling
✔ Segmentation
✔ Contact and
offer strategy
– Customer/ market
segmentation
✔ Identifyunique
customersegments
and communicate/
onboard them
accordingly
✔ Short-termchurn /
earlywarningmodel
– Customer
segmentation
– LTV model
– Up-sell / x-sell
propensity model
– Engagement scoring
– Satisfaction / NPS
survey design and
analysis
– Loyalty program
– Attrition modeling,
trigger, early warning
detection
– A survival analysis to
predict “survival”
propensity at
different points in
customer lifecycle
– Reactivation model
trigger, early warning
detection
– Lost customer
survey

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4) Build a compelling
framework
“Analytics to manage the companies most important assets – customers”

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Identify distinct groups and uncover opportunities for
differentiated strategies.
Develop a
Foundation
 Segmentation (demographics, behaviors, attitudes/needs, value)
Marketing Opportunity Assessment Market Basket Analysis

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Solution
1) Combine segmentation and trigger data
2) Data mining to uncover key influencers of 2nd
product purchase propensities
3) Generate “next best offer” rules for timely,
personalized communications
Customer
relationship
deepening
Connecting product
sequence with
customer life-stage,
needs, and triggers to
uncover purchase
influencers.
Situation
 Multi-line financial services provider had
segmentation solution in place, but was
unsuccessful in product x-sell
CASE STUDY

12. Purchase Influencers
Purchase Influencers

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Drive timely, targeted communications across the marketing
lifecycle.
Enable
Connections
Acquisition Models Attrition Models
Cross/Up-Sell
Models
Value/LTV Models
 Uplift Models
Recommendation Engines/
Real-time Offers
Marketing Optimization

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Solution
1) Developed Contact Strategy Framework … enabling
data-driven RTO deployment
2) Components: KPIs, segmentation, low latency &
circumstance detection modeling, machine learning,
test design and measurement
Real-time offers
Enabling relevant,
real-time messaging
for improved customer
experience
Situation
 Bank seeking to modernize marketing capabilities to
deliver messaging at key interaction points, in real
time
 Existing business strategies and marketing
technologies did not support a real-time customer
experience
CASE STUDY

15. Discovery Design Build &
Test
Launch
Measure
Optimize
Expand

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Measure &
Manage Results
Test and measure discipline to drive continuous improvement
in business outcomes
Media Mix Models
Campaign/Dashboard Reporting
Experimental Design
Loyalty Program Financial Analysis
Multichannel Attribution
Global Control GroupsContact Cadence Analysis

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Multi-phase Solution
1) “Path to purchase” views expose effective touch
strategies
2) Attribution engine processes multi-touch transactions and
calculates return on the various communication types
3) Periodic engine runs enable ongoing marcom
adjustments
Multichannel
Attribution
Achieving better
marketing outcomes
with fractional
attribution
Situation
 Issuer looking to move from last touch to data-driven
attribution for greater measurement precision
 Numerous DM and EM communications used in high
touch program to drive repeat card usage
CASE STUDY

18. Purchase Influencers
Touch 1 Touch 2 Touch 3
Non-
Transactors Transactors Index*
Awareness 9.7% 9.3% 96
Sweepstakes 3.8% 7.7% 203
Cosmetic Qt 17.5% 7.6% 43
Cosmetic Qt Sweepstakes 3.0% 4.2% 139
Sweepstakes Vision 1.7% 3.8% 225
Vision Cosmetic Qt Vision 1.5% 2.9% 195
Vision 1.1% 2.7% 243
Birthday 4.9% 2.4% 49
Awareness Sweepstakes 1.7% 2.2% 131
Email_Checklist Cosmetic Qt 3.3% 1.8% 55
Awareness Cosmetic Qt 1.4% 1.7% 123
Sweepstakes Awareness 1.1% 1.6% 146
Awareness Awareness 2.1% 1.2% 57
Awareness Cosmetic Qt Sweepstakes 0.9% 1.1% 124
Cosmetic Qt Sweepstakes Vision 0.7% 1.1% 160
Cosmetic Qt Vision 0.3% 1.0% 321
* Index = Transactor % divided by Non-Transactor % times 100
Phase 1 - “Path to Purchase” Views
TOP TOUCH SEQUENCES

19. Purchase Influencers
$0 $100 $200 $300
Care Credit Birthday
25 Years of Caring
Sweepstakes
Care Credit Awareness
Care Credit Balance Paid
Program
Quarterly Cosmetic Program
Q2 Vision
$113
$268
$184
$93
$150
$226
DM
$0 $2,000 $4,000 $6,000
Care Credit Birthday
25 Years of Caring…
Care Credit Email Checklist
Care Credit Awareness
Care Credit Thousand…
Quarterly Cosmetic Program
CareCredit Vision
$3,237
$3,656
$5,583
$1,936
$1,340
$4,746
$6,397
EM
Phase 2 - Attribution Engine
Results
$1.27 billion attributed
revenue on $3.4 million
promotional spend
DM - Care Credit Awareness, by Segment
*
Universal &
Campaign
Control Groups
Response
Models or
Segments
Communication
Weights
*Incremental revenue

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Dashboard
reporting can
target the C-suite
with KPIs …
… providing
valuable
information &
boosting the
visibility of the
analytics function.

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5) Ensure the requisite
enablers are in place
1. Data
2. Tools
3. People

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Data
An analytic data
mart provides
a 360 degree
view and offers
substantial
advantages.

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Data
As marketing goes
digital, a data
management
platform is needed
to complement the
ADM.

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Tools
The toolkit is a
function of the
work to be done
and data used.

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People
Success requires
a balance of HARD
and SOFT skills…
…solid
organizational
structure and
career-pathing are
needed to attract
and retain talent.

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Q & A
john.young@epsilon.com
781.685.6269
angela.williams@transamerica.com
972.881.6858