"Marketing Analytics: How, Why & When"

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At this webinar, Stephan Sorger, Vice-President of On Demand Advisors and Author of the book, "Marketing Analytics: Strategic Models and Metrics" discussed:

• Trends driving Marketing Analytics adoption
• Important advantages and facets of Marketing Analytics
• Marketing Analytics models vs metrics
• Essential tips on how best to allocate your marketing budget and provide a high ROI
• Promotional metrics for traditional and Social Media

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"Marketing Analytics: How, Why & When"

  1. 1. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com • Option 0.2 Marketing Analytics: Introduction & Examples Hashtag: #MarketingAnalytics
  2. 2. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Housekeeping Unmute computer speakers Slides and recording distributed via email afterwards Submit questions via the Q&A panel through GoToMeeting Hashtag: #MarketingAnalytics
  3. 3. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com About our Speaker The “Analytics Ambassador”  Author - “Marketing Analytics: Strategic Models and Metrics”  Professional Expertise - VP Strategic Marketing, On Demand Advisors  Applying marketing analytics to grow revenue  Academic Expertise - Marketing Analytics Instructor since 2008  USF MBA Program  UC Berkeley, San Francisco Extension  Board Member -  Served on UC Berkeley Ext. Marketing Metrics Board Website: http://www.StephanSorger.com LinkedIn: http://www.linkedin.com/in/stephansorger
  4. 4. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com About Regalix  An award-winning Global Co - Innovation company that leverages technology and marketing to help companies grow.  Forefront of Innovation o Digital Marketing Services o Technology Enabled Services o Regalix Labs  Multi-disciplinary Leadership Team & Strong Advisory Board, 175+ Team  Fortune 500 and Venture Backed Customers (B2B and B2C)  Global Operations: HQ in Silicon Valley, 2 Offices  Industry Recognition
  5. 5. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com About the New Book  Authoritative Guide to Marketing Analytics  Over 10 years of professional experience  Over 5 years of academic research  Comprehensive  Nearly 500 pages of text  Nearly 400 figures, tables, and graphs  Practical  Structured around marketing and products, not math  Packed with examples  Available on Amazon.com:  Search on “Marketing Analytics”: www.StephanSorger.com www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307
  6. 6. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com On Demand Advisors: Process 2. Market Definition 3. Lead Generation 4. Lead Management 5. Sales Enablement 1. Revenue Engineering
  7. 7. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com On Demand Advisors: Clients
  8. 8. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com On Demand Advisors: Events  Free Revenue Engineering Workshops held every month  Tuesday, August 12, 2014  How the Channel Can Make Your Numbers Every Quarter  See OnDemandAdvisors.com to register and to see complete schedule
  9. 9. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Agenda  Introduction  Trends Driving Adoption  Advantages  Models vs. Metrics  Promotion Budget Estimation  Promotion Allocation using Microsoft Excel  Bonus Section: Social Media Metrics  Next Steps  Questions
  10. 10. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Trends Driving Adoption Marketing Analytics Adoption Online Data Availability Reduced Resources Massive Data Accountability Data-Driven Presentations  Improve productivity  Reduce costs  “What gets measured gets done”  Data to back up proposals  Predict success of plans  Initiatives to capture customer information  What to do with all that data?  Cloud-based data storage  Online = speed  Online = convenience  Do more with less  Scrutinized budgets  Marketers must show outcomes
  11. 11. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Marketing Analytics Advantages Marketing Analytics Advantages Persuade Executives Side-Step Politics Encourage Experimentation Drive Revenue Save Money  Marketing as cost center  Marketing as profit center  Correlation between spending & results  Old way: execute campaign & guess outcome  No longer tolerate this approach  New way: predict outcome  Test multiple scenarios before proceeding  Run Simulations  Predict which will work best  Focus on revenue impact from marketing  Correlation between spending & results  Some CEOs do not appreciate marketing  Show impact of efforts with metrics
  12. 12. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com What is Marketing Analytics? “It’s a Snake!” It must be Marketing Automation! “It’s a Fan!” It must be Social Media! “It’s a Tree!” It must be Google Analytics! “It’s a Wall!” It must be Big Data! “It’s a Rope!” It must be Predictive Analytics!
  13. 13. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Marketing Analytics Framework Strategic Tactical Market Analysis Chapters 1-3 Competitive Analysis Chapter 4 Strategy and Operations Chapters 5-6 Marketing Mix The 4 Ps Chapters 7-10 Sales and Support Chapter 11 Analytics in Action Chapter 12 Conjoint Google Analytics Social Media Forecasting Big Data Predictive Anyl. Marketing AutoSegmentation Targeting Positioning Competitive Analysis
  14. 14. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Definitions Topic Description Definition (Broad) Broad definition (but too vague): Data analysis for marketing purposes, from data gathering to analysis to reporting Definition (Applied) Techniques and tools to provide actionable insight - Models - Metrics Models Decision tools, such as spreadsheets Metrics Key performance indicators to monitor business
  15. 15. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Models and Metrics Metrics = Gauges: - Monitor situation - Diagnose problems Models = GPS: - Representation of Reality - Decide on course of action
  16. 16. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Budget Estimation Popular Promotion Methods Public Relations Radio Advertising Search Engine Marketing Social Networking Sites Television Advertising Direct Marketing Events and Experiences Internet Advertising Location-based Social Print Advertising Apple: Email ads Jeep: Sponsor of X Games Radio Shack: Ads on Yahoo! Foursquare: Local restaurants Maybelline: Ads in Vogue Royal Mail: Picked up stories Motel 6: Car travelers Lowes: PPC Ads for washers Facebook, LinkedIn, Twitter GEICO: Many TV ads
  17. 17. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Budget Estimation Promotion Budget Estimation Competitive Parity Objective and Task Model-based Percentage of Sales Affordable
  18. 18. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Method 1: Percentage of Sales Promotion Budget Promotion Budget = % of Revenues Annual Revenue LegalZoom: Many businesses allocate 9 – 12% of annual sales for marketing budget
  19. 19. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Method 2: Affordable Promotion Budget Leftover funds go to promotion Company Funds
  20. 20. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Method 3: Competitive Parity Promotion Budget Promotion Budget for Company Promotion Budget of Competitor
  21. 21. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Method 4: Objective and Task Market Share Goal Advertising Reach Trial Rate Customer Count Advertising Impressions Gross Rating Points Advertising Budget
  22. 22. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Summary: Promotion Budget
  23. 23. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Model Linear Optimization Model INPUTS OUTPUTS Objective Function Constraints Maximized Objective Or Minimized Objective
  24. 24. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Constraints Contractual Constraints Company Policy Constraints Financial Constraints Legal Constraints Typical Promotion Constraints Budget NTE (not to exceed) $XXX/yr Must follow legal regulations Contracts with outside agencies Observe company policies
  25. 25. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Process Vehicle Contribution Promotion Objective Promotion Constraints Optimization Model Promotion Data Budget Allocation Vehicle Contribution: Determine effectiveness of campaigns, based on historical data Promotion Objective: Declare promotion objective in equation form Promotion Constraints: Specify promotion constraints in equation form Optimization Model: Execute model
  26. 26. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Example Direct Marketing: Emails sent directly to individuals within target market Pay Per Click: Campaigns displaying ads during relevant Internet searches Social Media: Paid advertisements on social media platforms
  27. 27. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Example Objective Function Z = 30 * D + 30 * P + 40 * S The equation applies the following variables: Z = Our objective, in this case the total number of impressions from all promotion vehicles. D = Quantity of direct marketing campaigns to run, given that each direct marketing campaign results in 30 viewers per advertisement. P = Quantity of pay per click campaigns to run, with 30 viewers per campaign. S = Quantity of social media campaigns to run, with 40 viewers per campaign
  28. 28. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Example Promotion Constraints B = 30 * D + 40 * P + 60 * S ≤ $2,000 The equation applies the following variables: B = Our monthly budget D = Quantity of direct marketing campaigns, which cost $30 each to run. P = Quantity of pay per click campaigns, which cost $40 each to run. S = Quantity of social media campaigns, which cost $60 each to run. ≤ = Inequality sign, indicating that we may not exceed our maximum budget. D ≤ 30: Cannot exceed 30 direct marketing campaigns per month P ≤ 20: Cannot exceed 20 pay per click campaigns per month S ≤ 10: Cannot exceed 10 social media campaigns per month
  29. 29. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation : Solver Optimization Model: Setup Optimization Model: Execution Optimization Model: Interpretation Excel Solver functionSpecific format Identify limiting factors
  30. 30. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Setup Changing Cells Target Cell 30 30 40 Constraint #1: Budget 30 40 60 Constraint #2: D ≤ 30 1 Constraint #3: P ≤ 20 Constraint #4: S ≤ 10 1 1 D P S Columns for D, P, and S parameters Changing cells for D, P, and S Target Cell (Contains objective equation) Constraint, Left Side (Contains constraint equation) Constraint, Right Side (Contains constraint value) a b c d e f g h i j k l A B C D E F 1 2 3 4 5 6 7 8 9
  31. 31. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Execution Excel Home Data …… Solver A B C D E F G
  32. 32. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Execution Solver Parameters Set Target Cell: Solve Options Equal To: Max. Min. $E$4 By Changing Cells: Subject to the Constraints: $B$2: $D$2 $E$6 <= $F$6 $E$7 <= $F$7 $E$8 <= $F$8 $E$9 <= $F$9 Add Add Constraint Cell Reference: OK $E$6 <= Constraint: =$F$6
  33. 33. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Execution Changing Cells Target Cell 30 30 40 Constraint #1: Budget 30 40 60 Constraint #2: D ≤ 30 1 Constraint #3: P ≤ 20 Constraint #4: S ≤ 10 1 1 D P S Columns for D, P, and S parameters Changing cells for D, P, and S Target Cell (Contains objective equation) Constraint, Left Side (Contains constraint equation) Constraint, Right Side (Contains constraint value) 30 20 5 170 0 2000 2000 30 30 20 20 5 10 A B C D E F 1 2 3 4 5 6 7 8 9
  34. 34. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Allocation: Interpretation Solver Results: Constraints Solver Results: Summary
  35. 35. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Promotion Metrics: Social Media
  36. 36. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Built-in Tools
  37. 37. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Aggregators
  38. 38. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Pro Tools
  39. 39. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Social Media Metrics Hierarchy Referral Level: Users refer to others Dialog Level: Users communicate Engagement Level: Users act Referral Dialog Engagement Viewer Viewer Level: Users view content
  40. 40. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Metrics: Viewer Level
  41. 41. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Metrics: Engagement Level
  42. 42. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Metrics: Dialog Level
  43. 43. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Sample Metrics: Referral Level
  44. 44. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Next Steps • Take advantage of the metrics embedded in Regalix • Go to Amazon.com, search on “Marketing Analytics”. Buy this book & others • Consider taking university course in Marketing Analytics • 2015: Online marketing analytics video courses available • Until then, consider practicing promotion allocation methods on your own
  45. 45. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Questions Any Questions?
  46. 46. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com Get in Touch  If you have any questions about this webinar please feel free to get in touch with us at marketing@regalix-inc.com  For more information on Regalix visit: www.regalix.com  For more information on Stephan Sorger visit: www.StephanSorger.com
  47. 47. © 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com  Do join us for our next webinar titled, “Rise Above The Noise: How To Get Your Brand To Stand Out On The Social Web” on Thursday, August 21, 2014, 1:00PM ET/10:00AM PT  Speaker Mike Lewis, CEO & Co-Founder, AwarenessHUB  Visit our page http://bit.ly/1fFhmeb to read more on Marketing Automation 47

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