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Marketing science at Dell: modeling investment trade-offs; George Sadler, Director, Social Media & Marketing Insights; Mu Sigma Customer Summit 2012, Half Moon Bay, CA, February 27, 2012

Marketing science at Dell: modeling investment trade-offs; George Sadler, Director, Social Media & Marketing Insights; Mu Sigma Customer Summit 2012, Half Moon Bay, CA, February 27, 2012

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    Musigmasadlerfeb2012 Musigmasadlerfeb2012 Presentation Transcript

    • Marketing science at Dell:modeling investment trade-offsGeorge Sadler, Director, Social Media & Marketing InsightsMu Sigma Customer Summit 2012, Half Moon Bay, CA,February 27, 2012
    • Dell’s journey to a cohesive ROI framework Combining traditional BI and statistical models Identifying the key metrics to watch Determining the total ROI of an investment (in-period, long-term, and synergies) 2013 and beyond: 2012 Scale other uses of model insights to 2011 Sharing best drive investment practices with BU Developed the decisions and campaign owners analytical muscle to improve predictive leverage multivariate Leveraging to capabilities 2010 determine next statistical models BI dashboards that markets measured paid Experiment with metrics only other uses of model Surveys to measure insights customer perception2 Global Marketing
    • Partnering with Mu Sigma has been critical to our success3 Global Marketing
    • Answering ROI questions in a non-linear world4 Global Marketing
    • Measuring a campaign is hard… Create FacilitateBusiness Invest in Harvest brand salesProcess marketing value equity motion • Circulation, reach, • Increased awareness, • Increased lead creation • Revenue & marginSuccess frequency, & emotional attachment & quality growth measured byis… impressions at agreed to CPC/CPMs & credibility total ROI (4 components) • OA reach & freq • Net Promoter Score • Number of leads • % Enterprise mixMeasured • TV GRP • Brand of choice • Conversion rates • Discount %by… • Print circulation • Enterprise credibility • Win / Loss rate • Share gains • Impressions • Core revenue • SOV • Total spend product quality, CSAT, average hold times, ship to commit, pricing actions, economy, competition… ROI begins here…but control diminishes 5 Global Marketing
    • Using sophisticated modeling techniques toanswer the ROI questionStructured Equation Models (SEM) demonstrate the causal relationshipsamong variables and identifies the incremental influence of each variable onthe outcome of interest (sales). Used to: Product experience • Understand the human genome Marketing & and biological traits Marketing pricing • Predict and explaining historical Purchase economic conditions experience Brand Health Brand Equity • Predict social and deviant Economy & behavior competition Service • Research drugs experience • Optimize media spend6 Global Marketing
    • Robust models require lots of dataProduct Customer Experience Promotion and Communication Externalities Product Customer Sales Force Supply Chain Pricing Marcom Corporate Economy CompetitionAttributes Service Effectiveness Strategies Spend Reputation What the customer experiences What the business controls directly 7 Global Marketing
    • What have we learned about brand campaigns?Brand investments remove pressures on transactional levers,allowing us to hold on pricing and amplify segment marketingBrand investments deliver in-period top & bottom-line growth,paying for themselves in as little as 5 monthsBrand investments lift “brand pull”, establishing a stronger base forcontinued top & bottom-line growth over the next 18-24 months8 Global Marketing
    • Progress in increments Infrastructure evolving9 Global Marketing
    • You can measure more than you thought…10 Global Marketing
    • What else can we measure?We can measure the response curves of each business driver over time,identifying where increased investments will lead to accelerating returnsWe’ve quantified the cross-business unit impact of investments by oneP&L, allowing for complete ROI calculationsWe’ve estimated the complete ROI of pricing decisions, both short andlong-termWe’ve determined a value of our investment in green initiatives, thatcorrelates well with third-party researchWe’ve shown that product quality improvements do contribute torevenue that’s measureable11 Global Marketing
    • What’s next?Quantifying& modelingsignals fromthe socialweb… Global Marketing
    • Our future infrastructure will drive scale and innovation13 Confidential Global Marketing
    • Integrating decision sciences at Dell Clean, consistent, reliable data through: • Consistent global definitions and standards (E.g., common definition of “Brand messages”) Rel CRM Transactional • Controls on data entry and upkeep CRM (E.g., pipeline data, definition of “Sales Ready Leads”, definition on “active / inactive accounts”, etc) • Periodic, process driven data gathering Intelligence / Heavy lifting analytics layer • Holistic models accounting for all relevant influencing factors – short / long term, X-BU impacts • Brand Health / ROI model, Media Mix Model, propensity and attribution models, listening analytics, Social Media ROI Rel BI Transactional • Global Brand / Marketing layer decision support BI Integration layer • Transactional / Rel BI / CRM – extensions of core definitions and models for high frequency executions Other decision –lead management, demand gen campaign design / Support for support areas - execution Planning Dashboards, etc • Distribution across regions and LoBs / BU14 Global Marketing
    • Thank You