Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The successful analytics organization - Epsilon and Transamerica, LIMRA Data Conference 2015

1,089 views

Published on

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.

Published in: Business
  • Be the first to comment

  • Be the first to like this

The successful analytics organization - Epsilon and Transamerica, LIMRA Data Conference 2015

  1. 1. ©2014 Epsilon. Private & Confidential June 26, 2015 The Successful Analytics Organization
  2. 2. ©2014EpsilonDataManagement,LLC.Private&Confidential 2 Share our perspective on the underpinnings of a center of excellence in analytics and examples of best-in-class work. Objective
  3. 3. ©2014EpsilonDataManagement,LLC.Private&Confidential 3 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)
  4. 4. ©2014EpsilonDataManagement,LLC.Private&Confidential 4 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.
  5. 5. ©2014EpsilonDataManagement,LLC.Private&Confidential 5 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”
  6. 6. ©2014EpsilonDataManagement,LLC.Private&Confidential 6 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
  7. 7. ©2014EpsilonDataManagement,LLC.Private&Confidential 7 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
  8. 8. ©2014EpsilonDataManagement,LLC.Private&Confidential 8 … 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
  9. 9. ©2014EpsilonDataManagement,LLC.Private&Confidential 9 4) Build a compelling framework “Analytics to manage the companies most important assets – customers”
  10. 10. ©2014EpsilonDataManagement,LLC.Private&Confidential 10 Identify distinct groups and uncover opportunities for differentiated strategies. Develop a Foundation  Segmentation (demographics, behaviors, attitudes/needs, value) Marketing Opportunity Assessment Market Basket Analysis
  11. 11. ©2014EpsilonDataManagement,LLC.Private&Confidential 11 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. 12. Purchase Influencers Purchase Influencers
  13. 13. ©2014EpsilonDataManagement,LLC.Private&Confidential 13 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
  14. 14. ©2014EpsilonDataManagement,LLC.Private&Confidential 14 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. 15. Discovery Design Build & Test Launch Measure Optimize Expand
  16. 16. ©2014EpsilonDataManagement,LLC.Private&Confidential 16 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
  17. 17. ©2014EpsilonDataManagement,LLC.Private&Confidential 17 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. 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. 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
  20. 20. ©2014EpsilonDataManagement,LLC.Private&Confidential 20 Dashboard reporting can target the C-suite with KPIs … … providing valuable information & boosting the visibility of the analytics function.
  21. 21. ©2014EpsilonDataManagement,LLC.Private&Confidential 21 5) Ensure the requisite enablers are in place 1. Data 2. Tools 3. People
  22. 22. ©2014EpsilonDataManagement,LLC.Private&Confidential 22 Data An analytic data mart provides a 360 degree view and offers substantial advantages.
  23. 23. ©2014EpsilonDataManagement,LLC.Private&Confidential 23 Data As marketing goes digital, a data management platform is needed to complement the ADM.
  24. 24. ©2014EpsilonDataManagement,LLC.Private&Confidential 24 Tools The toolkit is a function of the work to be done and data used.
  25. 25. ©2014EpsilonDataManagement,LLC.Private&Confidential 25 People Success requires a balance of HARD and SOFT skills… …solid organizational structure and career-pathing are needed to attract and retain talent.
  26. 26. ©2014EpsilonDataManagement,LLC.Private&Confidential 26 Q & A john.young@epsilon.com 781.685.6269 angela.williams@transamerica.com 972.881.6858

×