CIM Sussex- Innovate with intelligence May 2012


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Angela Dalrymple and Daniel Rowles share their presentations from CIM Sussex's recent event' 'Innovate with Intelligence'.

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CIM Sussex- Innovate with intelligence May 2012

  1. 1. CIM Sussex INNOVATE WITH INTELLIGENCE  Angela Dalrymple  Daniel Rowles  Thursday 24th May 2012
  2. 2. Our agenda  Welcome from the CIM Sussex committee - Laura Winter  Knowing your market better than it knows you – Angela Dalrymple  Coffee Break  Latest digital marketing techniques – Daniel Rowles  Q&A2
  3. 3. CIM Sussex  Knowing Your Market Better Than It Knows You  Angela Dalrymple – Presentation to CIM Sussex  Senior Teaching Fellow, Imperial College Business School  Director – Prodata Partners Ltd  Tel: 0845 054 9929
  4. 4. Angela Dalrymple  Senior Teaching Fellow in Marketing at Imperial College Business School  Associate Professor in Marketing with University of St Thomas Minnesota  Lecturer in Marketing with Portsmouth University, London School of Business & Finance, University of Wales & Open University  Tutor on CIM Professional Diploma & Certificate courses with Oxford College of Marketing  MA & BA (Oxford University), MBA (Liverpool), DBA (Edinburgh Business School)  Senior Professional Member of CIM, MRS, IOD  Board Director & senior marketing roles with AT&T UK, Thomson Reuters & PricewaterhouseCoopers  Director of Prodata Partners – market strategy & research consultancy 4 27 years’ experience in marketing and strategy
  5. 5. Discussion   Importance of knowing about ongoing market trends, customer segments and competitor activities   Role of market research in effective marketing decision- making and marketing plans   Smart applications of secondary and primary research   Free & no/lo cost sources of useful market research5
  6. 6. Knowing Your MarketWell Is A ToughChallengeReporter: ‘How do you sleep at night?’CEO: ‘I sleep like a baby’Reporter : ‘That’s wonderful’CEO: ‘No no - I mean, I wake up every two hours and start crying’ (Roberto Guizeta, ex-CEO of Coca-Cola, quoted in Fortune)6
  7. 7. But How Many of Us Really Know OurMarket Better Than it Knows Us? Market Intelligence Audit – Show of Hands…7
  8. 8. So What do You Need to Know AboutYour Market?Key objectives are usually to:• Assess the market (e.g. attractiveness)• Understand its dynamics (e.g. trends, competitors)• Use this knowledge to implement a marketing planThere are a number of dimensions whichneed to be considered, including:• Market size • Look at total sales level • Consider the potential market• Market growth • What will be the size of the market in the future? 8
  9. 9. Key Dimensions of Market Analysis   Market size   Market profitability   Market growth trends   Main products in the market   Customer attitudes and buying behaviours   Major competitors and market shares   Distribution patterns   Marketing strategies used in the market9
  10. 10. Knowing Your Market Used to Seem so Easy… So What‘s Changed? 00/00/000010
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  12. 12. 12
  13. 13. How are customers changing through going digital?13
  14. 14. STATIC14
  15. 15. So What Do You Need to Know About Your Customers?15
  16. 16. Finding Realistic Customer Market Metrics is Becoming More Difficult Old metrics - examples • Return on marketing investment • Profit per customer • Return on promotional measures New metrics - examples • Traffic / distribution • Response rates • Average order value • SEO • Customer acquisition costs • Integrated marketing campaigns / cross platform16
  17. 17. Types of Customer Data Which Can Help Us•  Volunteered data – data provided by the customer, e.g. by registering on a website•  Behavioural data – data derived directly from the behaviour of the customer, e.g. purchasing or bill payment patterns•  Attributed data – data which is extrapolated from the results of market research, e.g. by interviewing a cross section of prospective customers•  Profile data – data obtained by linking the organisation’s database with other sources of information, e.g.:- •  Geo-demographic profiling data, such as MOSAIC and ACORN •  Lifestyle databases, e.g. Claritas17
  18. 18. Role of Data in Knowing Our Customers •  Customer database information can be used for profiling customers in many different ways, e.g.:– •  Timing and volume of purchases •  Geographical location •  Price preferences •  Profitability •  Using data to profile customers can tell us:- •  Which customers are most profitable & what their characteristics are •  How to create segments/groups of profitable customers with similar characteristics •  Which customers are most likely to respond to our18 communications & marketing campaigns
  19. 19. Data Also Helps Us Know About Customer Lifetime Value •  Customer Lifetime Value (CLV) is now used by many organisations interested in retaining customers over the longer term, e.g. services organisations •  CLV= total contribution (revenues minus costs) of a customer over their lifetime with the organisation •  Enables organisations to calculate the future profitability of customers •  CLV forces organisations to focus more on customer service and long-term customer satisfaction, rather than short-term sales •  CLV helps organisations decide which customers to invest in long to gain a positive return on investment •  Customer databases play a key role in providing the data for this analysis19
  20. 20. We Can Use Data to Pull Customers up the Loyalty Ladder Partner Advocate Supporter Client Customer Prospect20
  21. 21. Word-of-mouth Referral & Customer Relationship Priorities •  The Net Promoter Score is obtained by asking customers on a 0 to 10 scale, where 10 is "extremely likely" and 0 is "not at all likely": •  "How likely is it that you would recommend our company to a friend or colleague?" •  Respondents are categorized into one of three groups: •  Promoters (9–10 rating); Passives (7–8 rating); Detractors (0–6 rating) •  The % of Detractors is then subtracted from the percentage of Promoters to obtain a Net Promoter score (NPS) •  An NPS that is positive (i.e. higher than zero) is good, an NPS of +50 is excellent (Apple, Harley Davidson) High Profitability Low Detractor Passive Promoter21 Low Net-Promoter Score High Reichheld (2006)
  22. 22. We Also Need to Know About Customer Buying Influences Individual Situational influences influences Decision-making process Group influences Marketing mix Brassington & Pettitt, 2006 Customers are subjected to a variety of influences on22 their buying decision process
  23. 23. Moving From Corporate Social Responsibility to Terminator Brands  During the “noughties”, consumer attitudes in many markets shifted towards societal concerns around ethics, sustainability and corporate social responsibility from marketers –  The environment –  Global warming –  Recycling –  Fair trade  However current marketing analysis shows consumers now prefer decisive “terminator” brands –  Brands which take away the stress of everyday living, and “terminate” consumer problems –  E.g. Lynx, Sky, Nike etc. – “Sorted!” So do your customers see you as Nurturers or Terminators???23
  24. 24. We Also Need to Know How to ScopeCustomer Segmentation   Segmentation represents an effort to identify and categorise groups of customers and countries according to common characteristics 10.5 million dogs are owned in the UK – what products can be targeted & positioned to this segment?24 And in reality - who owns whom…..???
  25. 25. What do we need to know for effective customer segmentation? •  Measurability •  Accessibility •  Substantiality •  Profitability •  Actionability25
  26. 26. Bases For Consumer Segmentation Most Usage Behaviour appropriate for Volume, Price, Usage Frequency planning in stable market conditions Judgmental Data Better guide to Attitudes, Perceptions, Motivations, behaviour Preferences under changing market Market Descriptors conditions Demographic, Socio-Economic, Geographic, Lifestyle, Family life cycle26
  27. 27. Bases for Business Segmentation Macro Micro   Size   Product   Location   Applications   Usage rate   Technology   Purchasing and decision- making processes   Buyer-seller relationships How are these criteria changing?27
  28. 28. Do we know enough about our mostdangerous competitors?28
  29. 29. Competitor Analysis is Getting Harder...   We live in a world of hypercompetition –  A dynamic competitive environment, in which no action or advantage can be sustained for long   Competition unfolds in a number of key areas which we need to monitor amongst our competitors –  E.g. price, quality, know-how, entry barriers, and how deep their pockets are29
  30. 30. Knowing Your Competitors• Need to focus on identifying threats, opportunities or strategicuncertainties created by existing or potential competitors• Major steps: 1. Identify current and potential competitors 2. Understand competitors and their strategies30
  31. 31. Value Analysis: Competitor Benchmarking31 Hollensen (2011)
  32. 32. So overall, we need to know about three key information areas1.  Information on the market environment –  E.g. PESTLE factors (Political, Economic, Social, Technological, Environmental, Legal)2.  Information on customers –  Customer identification –  Customer characteristics & segments –  Main influences on what, where, when and how they buy the product or service3.  Information on other organisations –  Gathering information on competitors and their actions –  Comparison of performance to identify strengths and weaknesses32
  33. 33. Key Methods of Finding Out What we Need to Know   Market research - market and sales forecasts / sales potential   Product research - R&D and product testing   Attitude measurement   Price research - price perception and sensitivity   Distribution research   Marketing Communications research   Tracking studies e.g. customer satisfaction33
  34. 34. Collecting Secondary Data Internal •  ccounting / A sources sales records •  arketing M database Collection of •  eriodicals P secondary data •  ensus reports C •  overnment G External publications sources • nternet I •  ther O34 Dibb et al, 2006
  35. 35. Collecting Primary Data •  ersonal P OBSERVATION •  echanical M Collection of primary •  ail M data •  -mail /Internet E SURVEYS •  elephone T •  ersonal P35 Dibb et al, 2006
  36. 36. Internal Secondary Research Sources   Customer databases – behavioural data, volunteered data and profiling data   Sales figures   Operational data – stock levels, etc   Customer satisfaction results   Advertising spend   Customer complaints records   Effectiveness data from promotional campaigns   Marketing research reports from past studies36
  37. 37. External Suppliers of Market Data   List compilers/brokers –  Capture list of individuals and organisations and sell them to companies for marketing purposes   Full-service agencies –  Offer a full range of research services and techniques –  Able to undertake every stage of the research (research design through to analysis and report writing) –  Examples: TNS (, Ipsos (   Independent consultants –  Offer a range of services from undertaking small surveys (B2B), manage parts of marketing research process or advise on information collection, storage and retrieval37
  38. 38. External Secondary Research Sources  Internet search engines  Social media and networking tools  Directories – Dun & Bradstreet, Financial Times company briefings  Governments and Government Agencies (e.g. CIA Factbook)  Published marketing research reports  Trade Press (Editors and Journalists)  Professional Institutes (CIM)  Newspapers and magazines (national and local)  Online news sources and aggregators (, http://  Specialist libraries  Market Research Agencies38
  39. 39. Sources of Information - Institutions   Business libraries   Export councils   University libraries   Distributors   Chambers of commerce   Sales subsidiaries   International Market   Foreign trade organisations Intelligence Centre (Trade such as JETRO (Japanese Partners UK) Export Trade and Research   Business Links Organisation)   Embassies   Banks   Trade associations (CIM, IOD, CBI)39
  40. 40. Online Sources of Information & Socialnomics  Online communities, discussion boards and blogs –  Increasing number of blogs and discussion forums present marketers with an opportunity to gain valuable insight into thoughts of consumers  Social networking e.g. Facebook, Twitter, LinkedIn –  Provides an opportunity for organisations to: •  Gauge consumer reactions to marketing campaigns •  Monitor brand reputation •  Analyse competitors •  Gather insightful market research 40 AVG SMB Market Landscape Report 2011
  41. 41. Using online customer intelligence41
  42. 42. Sources of Information - Online Databases   Brand data – – –   Business Week –   The Economist –   European Union –   UK Trade and Investment –   UK Chambers of Commerce –   United Nations –   World Bank –   World Fact Book –   World Trade Organisation –
  43. 43. Primary Research Information Focus groups In-depth interviews Surveys Observation Experimentation43
  44. 44. Omnibus Surveys •  Organisations pay to include one or more questions in a survey being sent on behalf of several organisations. •  Much cheaper means of surveying if only a few questions are needed. •  BUT the client is restricted by the sample that the research company uses and cannot choose where its questions appear in the survey. •  Omnibus survey suppliers vary by sector, geographical coverage, costs, sample size, speed of turnaround, etc.   E.g.
  45. 45. Panels •  Used to collect data over a period of time from the same sample of people. •  Useful for analysing trends, changing attitudes to political parties, preferences relating to new types of products or ways of purchasing e.g. online banking. •  Challenges include retaining the members of the panel over time and careful replacement of members who drop out. •  Online survey panels are increasing in popularity and will often recruit a large number of respondents from which it will sample to fulfil client quotas 
  46. 46. Online PR Objective • Increase the number of online conversations about your brand • Drive targeted traffic to your website • Increase your thought leadership position What is it? • Social Media • Social Bookmaking • Blogging • Microblogging • Forums • Video Sharing • Photo Sharing • Podcasts46
  47. 47. Other free sources of market information   Freebie market research websites – – – – – – – –   Market research agencies –  E.g. GFK, B2B International, Circle Research etc. – all publish free white papers / blogs with market insights   Free survey tools – –   Discussion forums offering free market research – 47
  48. 48. Free sources of market information   Official market statistics – – United Nations import / export data – – international labour data – – international economic data – – international trade statistics – – international city, country & population data – – UK business and consumer data – - UK financial information – – UK economic indicators and forecasts
  49. 49. So Do We Now Know More About Our Market Than It Knows About Us? If not – let’s get researching!49
  50. 50. Thank You! Questions Welcome!50
  51. 51. Innovate with Intelligence:Latest Digital Marketing TechniquesDaniel Rowles
  52. 52. Who Am I? •  Daniel Rowles •  CIM Course Director, Lead trainer for Econsultancy •  14 Years experience in digital marketing –  Both client and agency side •  BBC, Vodafone, MasterCard, Warner Bros, Boots, John Lewis, Aviva, Sony •  @danielrowles
  53. 53. Show of Hands…..Google (or any other) AnalyticsFacebookLinkedInTwitterPinterestGoogle+
  54. 54. What I’ll Cover •  Latest changes •  Planning •  Measurement (and pitfalls)54
  55. 55. Digital Marketing in Perspective•  8 years of video are uploaded to YouTube every day ?•  Average view time of a YouTube video is 2.5 seconds ? ?•  The average Facebook user is 38 years old•  Google+ to reach 400M members by end 2012 ?•  92% of US children have some sort of web presence by ? the time they are 2 years old•  All Stats from
  56. 56.
  57. 57. Bing Social Sidebar
  58. 58. Social Proof
  59. 59. Google Privacy Policy ‘we can tell you that you’ll be late for a meeting based on your location, your calendar and the local traffic conditions.’
  60. 60. Volume-based metrics •  10 Million ‘Likes’! •  What does that mean? –  Engagement –  Sentiment –  Share of Voice –  Revenue
  61. 61. EdgeRank
  62. 62. Google Goggles and visual search
  63. 63. Recognzr
  64. 64. - FREE
  65. 65. Viralheat
  66. 66. Radian6
  67. 67. Share ListenContent Build Relationships
  68. 68. Engagement in action
  69. 69. Consideringobjectives •  Sell Products/Services Goal •  Create Awareness and Objective Engagement •  Share of Voice Measure •  Audience Engagement Tactics
  70. 70. Meaningful Information Mentions of Brand Share of Total Mentions Voice Competitors and Brand Audience Comments Engagement Views
  71. 71. The Dangers of Last Click Email Search Conversion Search Conversion
  72. 72. Multi-Channel Funnels
  73. 73. Rule for Magnificent Web Success •  For every $10 spent on analytics data •  Spend $90 on people to tell you what it means •  Avinash Kaushik - Google
  74. 74. The path to ROI SEO Affiliates Email Custom Dashboard Social Display Media PPC CRM
  75. 75. Same Fundamentals Apply
  76. 76.
  77. 77. Conclusions •  Set objectives •  Select appropriate channels •  Measure, engage and improve
  78. 78. Thank you •  @DanielRowles • •
  79. 79. Thank You82