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Optimize Your Marketing Mix

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Analytics, if done well, produces insights, but insights on their own produce nothing. USAA has integrated their analytics streams with their marketing strategy and execution streams. In this session Robert Wellborn presents insights and finding they learned on the way to integration. These include: aligning marketing with the bill payers; gaining the right sponsors; and structuring your organization to generate and consume insight.

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Optimize Your Marketing Mix

  1. 1. Optimizing Your Marketing Mix A case study May 1, 2014 Robert Welborn Associate Vice President, Decision Scientist USAA @robert_welborn
  2. 2. Cautionary Tale • In 1949 Alexander Kotov was challenge by Tigran Petrosian (The Iron Tigran) •Petrosian is the acknowledged Defensive Master, able to see 1,000’s of variations in play. He is the “hardest to defeat player in the history of chess” • Kotov on the other hand was the chess rockstar. He hobnobbed with supermodels and nuclear physicists. •This was Superman fighting The Incredible Hulk in the Soviet Chess world •Petrosian surrendered in 13 moves Source: Wikimedia Commons
  3. 3. Kotov Syndrome • A Player, confronted by 1,000’s of possible scenarios • The obvious is missed • The player makes decisions based on emotion and expediency, instead of facts and discipline
  4. 4. Industrial Analysis requires Decision Frameworks not just Decision Making Tools Analytics must produce Insights, not reports, and the Insights must be Useful (Results are better than elegance) The Usefulness of the insights is a function of the integration of your analysts (not just your analysis) Three Keys
  5. 5. Building Decision Frameworks (not just buy more tools) Organize To Use Specialists Start with the CFO Publish for the C-suite Source: Beleant, 2007 “Paleolithic Flints” used under Michigan Publishing Creative Commons http://hdl.handle.net/2027/spo.7523862.0005.006
  6. 6. When to Pay Attention to Analytics The General Practitioner versus the Specialist • When the GP says you are sick, you trust the GP to run some tests • When the specialist says that you have Achilles tendonopathy, you go have surgery •You want your analysts to be specialists Source: Wikimedia Commons
  7. 7. So Who are The Specialists The Threefold Path of Analysis Ask someone Experiment Build a model
  8. 8. The CFO wants marketing to work She may not know why Or how it works • Transform the CMO into a portfolio manager • Analytics becomes the risk manager
  9. 9. Publish for the C-suite Connect competitor action and macroeconomic analysis to your marketing Allow real scenario analysis, "what if" Get out of the PowerPoint trap and into white papers and long reads Become the CEO's weekend reading Source: Longreads.com
  10. 10. Analytics Must Produce Insights (Focus on Results) • The Results should drive where you start, remain, and stop looking • Converting Invested Money into Products is the kernel of every useful insight in Marketing
  11. 11. Insights must be useful • The more useful the insights, the more credible your analysts are • The more http://blog.uber.com/wp-content/uploads/2011/12/New-Logo-Vertical-Dark.jpghttp://blog.uber.com/wp-content/uploads/2011/12/New-Logo-Vertical-Dark.jpg
  12. 12. Conclusion • Align your organization for using specialists, and set them up so that there is no punishment for telling the truth • You need to hire the following specialists: Survey-ers, Experimenters, and Modelers • Connect the stuff the CFO wants to what the CMO delivers and manage the risk • Publish for the C-Suite and use your credibility • When you are certain of something, do something
  13. 13. Questions?
  14. 14. Appendix
  15. 15. Alignment (or no one grades their own paper) Keep the “Measure” separate from “Recommend” but using the same data Separate Research from Analytics
  16. 16. Ask someone - • Survey • Focus Group • Social or Listening
  17. 17. Experiment • Test vs Control • Multivariate
  18. 18. Separate the method of marketing from the method of measurement Certainty in a measurement is not the same as certainty in results Paid Search vs. Lift over control
  19. 19. Models • Audiences • Marketing Mix • Funnel Analytics “Art is a lie that helps you understand the truth. Models are abstractions that help you understand reality.” – Pablo Picasso

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