Marketing Analytics Effectiveness

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In today’s Smarter Consumer and their use of technology (internet, mobile, and social) all industries are struggling to better serve and be more relevant to their customers and potential customers. When done well, businesses can 1) Improve loyalty and grow ‘share of wallet’, 2), True differentiation and competitive advantage as consumer’s ‘trusted advisor', 3) Margin improvement through optimized marketing spend, inventory, labor, etc., 4) Real intelligence vs. ‘paid for search positioning’ like Google

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  • Discuss how Sony Music, Sony Playstation, and Sony Retail can jointly leverage social media and Smarter Analytics to improve traffic, revenue, and profitabilityUnderstand the approach and benefits of integrating across the divisionsUnderstand the insights that Smarter Analytics will be able to provide with the additional consumer data from each group in SonyAgree on the best approach for next steps
  • Marketing Analytics Effectiveness

    1. 1. Outcome Focused Analytics Making Marketing Personal with Customer Analytics1 © 2012 IBM Corporation
    2. 2. 1 Marketing Challenges Today’s digital revolution and empowered consumer are producing many tough marketing challenges that are leaving CMOs struggling to respond Marketing Priority Matrix 1 Data explosion Under- 2 Social media preparedness 1 3 Growth of channel and device choices 70 2 4 Shifting consumer demographics 3 5 Financial constraints 4 6 Decreasing brand loyalty 60 5 7 Growth market opportunities 6 10 7 9 8 ROI accountability 8 11 9 Customer collaboration and influence 50 12 10 Privacy considerations 13 11 Global outsourcing Factors impacting 12 Regulatory considerations 40 marketing 13 Corporate transparency 0 20 40 60 Mean 2 Source: 2011 Global Chief Marketing Officer Study industry © 2012 IBM Corporation
    3. 3. 1 Marketing Challenges Where is this data explosion coming from? Every day, the New York Stock Exchange captures 1 TB of trade information. 5 Billion mobile phones in 12 TB of tweets being created each day. use in 2010. Only 12% were smartphones. Every second of HD video More than 30M networkedgenerates > 2,000 times as many sensor, growing at a rate bytes as required to store a >30% per year. single page of text. What is your business doing with it? 3 Source: McKinsey & Company, May 2011 © 2012 IBM Corporation
    4. 4. 2 Analytics Insights Customer-centric analytics is the primary functional objective across macro industry groups, as well Consumer Goods Financial Services Healthcare/Life Sciences 5% 2% 4% 7% 16% 10% 10% 50% 16% Customer- 51% centric 21% 20% 59% outcomes 11% 19% Operational optimization Risk / Manufacturing Public Sector financial Telecommunications management 1% New business 6% 6% 6% model 13% 18% 32% Employee 42% collaboration 13% 27% 11% 62% 8% 26% 30% Findings from the 2012 research collaboration of IBM Institute for Business Value and Saïd Business School, University of Oxford 4 © 2012 IBM Corporation
    5. 5. 2 Analytics Insights Consumer purchasing patterns are changing slower than implied by the media hype 5 © 2012 IBM Corporation
    6. 6. 2 Analytics Insights The patterns and trends you notice in your market sector can dictate the approach you take towards higher ROMI Habit Formation Point – Purchasing Pattern By CHARLES DUHIGG - Published: February 16, 2012 6 © 2012 IBM Corporation
    7. 7. 2 Analytics Insights You can know who the customers are, how to reach them and how to gain their TRUST Retailer Location Experience Intentions Product Demographics Experience Preferences Communication Conditions Timeliness Behaviors Interests Advocacy Spend Value Points Linguistic Style 7 © 2012 IBM Corporation
    8. 8. 3 Smarter Marketing The ability to create competitive advantage using analytics surged dramatically in 12 months, impacting the bottom-line Source: 2011 study MIT / IBM IBV - surveyed 4,500 executives, managers and analysts from more than 120 countries and representing more than 30 industries 8 © 2012 IBM Corporation
    9. 9. 3 Smarter Marketing Early adopters have outpaced others in gaining competitive advantage by expanding the use of analytics 9 © 2012 IBM Corporation
    10. 10. 3 Smarter Marketing We also examined what happens between Aspirational and Transformed – the space between the two end-point benchmarks Paths to Transformation High Enterprise driven Transformed Information Data- management Experienced oriented proficiency culture Aspirational Line-of- Low business driven Low High Analytic skills and tools proficiency Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value 10 analytics research partnership. Copyright © Massachusetts Institute of Technology 2011. © 2012 IBM Corporation
    11. 11. 3 Smarter Marketing Experienced organizations one of two paths, each focusing on different competencies, to move towards Transformed Paths to Transformation High Enterprise driven Transformed Collaborative path Information Data- management Experienced oriented proficiency culture Specialized path Aspirational Line-of- Low business driven Low High Analytic skills and tools proficiency Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value 11 analytics research partnership. Copyright © Massachusetts Institute of Technology 2011. © 2012 IBM Corporation
    12. 12. 3 Smarter Marketing The marketing alignment process identifies the key variables necessary to deliver short to long term ROMI Business Variables Define Outcomes Measure Action Analyze Sentiment Measure Activity Business Behavior Attitude Volume Metric Metric Metric Metric *** *** *** *** * * * * * * * * • Customer • Improve Store • Purchases • Open Rates recommends Sales • Consumer • Increase Online • Click Through • Loyalty Sing-up leaves positive Sales Conversion Rates comments *** *** *** *** * * * * * * * * 12 © 2012 IBM Corporation
    13. 13. 3 Smarter Marketing Moneyball: The Art of Winning an Unfair Game Outcome Focused Analytics – “By re-evaluating the strategies that produce wins on the field…” Purpose of Analytics – “"the ruthless drive for efficiency that capitalism demands." A Moneyball lesson for business - focus on the profitable customers and prospects 13 © 2012 IBM Corporation
    14. 14. 3 Smarter Marketing Consortium based models are emerging to provide additional insights about customers and improve marketing techniquesConsortium Leaders PartnersApproachShoppers 14 Revenue © 2012 IBM Corporation
    15. 15. 3 Smarter Marketing Using analytics successfully to drive business results requires a holistic approach across the interdependent aspects of business Manage Understand Act 15 © 2012 IBM Corporation
    16. 16. Appendix© 2012 IBM Corporation: IBM Telecommunications Industry 16

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