More Related Content Similar to Rapid Fire Analytics Attribution Strategy Similar to Rapid Fire Analytics Attribution Strategy (20) More from Sameer Khan (9) Rapid Fire Analytics Attribution Strategy1. Rapid Fire Strategy
How Rackspace Uses EMM Attribution
Techniques to Improve Marketing Goals
Twitter:
#SmarterCommerce | @IBMEMM
2. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
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achieve results similar to those stated here.
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Speakers
3
Sameer Khan
Http://www.keywebmetrics.com
Senior Marketing
Manager,
Rackspace
David Reed
Senior Marketing
Analyst,
Rackspace
Ravi Shah
Product Manager,
MPO
4. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
“What campaign channel
combinations drive the highest lift?”
Business Challenges Addressed by Marketing Performance
Analysis
Strategy
Marketing
Leaders
Marketing Analyst
CMO
Marketing Manager
And how do I
divide credit?”
“What influences
conversions?”
“What influences customers
to migrate through the
conversion cycle?”
“How am I performing against my
forecast and what do I need to
change to stay on track?”
“How can I strike the right balance
between competing marketing
objectives (e.g. revenue vs profit)?”
“What is my optimal
marketing mix under
different scenarios?”
4
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Two simple reasons why accurate attribution is
important
Understand marketing
ROI of past activities
Plan and optimize
future marketing mix
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Two simple reasons why accurate attribution
is important
Demonstrate
marketing’s value
Increase marketing’s
value
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Rackspace’s journey towards optimizing
marketing mix
Coremetrics
Attribution
Monthalizer
modeller
Attribution
Modeler
Marketing
Performance
Optimization
1. 2.
4. 3.
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8. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
ABOUT RACKSPACE®
Important Facts & Figures*
200,000+
CUSTOMERS
84,000+ SERVERS
5,500+
RACKERS
10 GLOBAL DATA
CENTERS
120 +
COUNTRIES
60%
FORTUNE® 100
OF
THE
WE SERVE
Annualized Revenue
OVER $1
BILLION $$$$
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9. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Phase 1- Coremetrics Attribution
Coremetrics
Attribution
Monthalizer
modeller
Attribution
Modeler
Marketing
Performance
Optimization
1. 2.
4. 3.
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10. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Disconnected CRM and Web Analytics
• More than 50% of the leads are generated through chats and phone
• Rep enters the lead data into CRM manually
• Significant amount of time spent data cleanup and manually integrating
systems
Live Chat CRM
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Solution – Coremetrics CRM Integration
Significant
reduction in report
creation
Built-in 180 day
backward looking
attribution
Coremetrics UI
accessibility
Live Chat CRM
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Revenue Attribution for Utility Products
• Users can create a free Rackspace cloud account
• Pay per usage billing model starting at 10¢/GB/month
• Marketing Channel level ROI attribution was a major challenge
Free Cloud
Account
Usage
based
billing
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Phase 2- Monathalizer Modeler
Coremetrics
Attribution
Monthalizer
modeler
Attribution
Modeler
Marketing
Performance
Optimization
1. 2.
4. 3.
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Attribution Based Budgeting (ABB)
• Traditional Media mix methods are becoming obsolete
• Campaign attribution throws unidirectional media mix off the charts
• Big need for bidirectional budgeting models
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Solution: IBM Lifecycle Channel Attribution
40%
30%
10%
20%
Order on 6th Visit
60%
15%
25%
Order on 1st Visit
Huge Variability
Channel Mix
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Solution: Developing Attribution Based Budget Models
Channel Mix
Control Panel
Confidential © Rackspace US, Inc. All rights reserved 16
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Phase 1 & Phase 2 helped answer key tactical questions
Analysis
Strategy
Marketing
Leaders
Marketing Analyst
CMO
Marketing Manager
And how do I
divide credit?”
“What influences
conversions?”
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Phase 3- IBM Attribution Modeler
Coremetrics
Attribution
Monthalizer
modeller
Attribution
Modeler
Marketing
Performance
Optimization
1. 2.
4. 3.
Statistical
attribution for
better
understanding of
performance
drivers
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Popular attribution methods
Last Response – the last
action taken by customer
receives full credit (response)
First Response – the first action
taken by customer receives full
credit (response)
Average Credit - all actions that
incurred a positive response within
campaign window receive same credit
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These attribution approaches yield mixed results…
EMAIL DIRECT MAIL
e
SEARCH
Last Response
First Response
.25 Equal –
Response
1
1
Equal –
Response.25 .25 Equal –
Response .25
TV
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They don’t tell the whole story…
EMAIL DIRECT MAIL
e
SEARCH
awareness influencer influencer conversion
TV
.17
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…statistical attribution modeling can provide a
more precise view of campaign value
EMAIL DIRECT MAIL
e
SEARCH
.31
awareness
.17
influencer
.14
influencer
.38
conversion
Statistical Attribution
TV
.17
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Statistical modeler identifies the true winner allowing
marketers to efficiently invest marketing budget and avoid
over/under spending
LT winning offer SIRA winning offer #Occurrences
Natural Search Referring Sites 208
Email Marketing Natural Search 26
Natural Search PPC D. 22
PPC D. Referring Sites 21
PPC C. Referring Sites 19
All Other MMC Vendors Natural Search 15
Email Marketing Referring Sites 14
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Attribution Modeler helps in understanding
contribution of each channel
What is the contribution of each channel in
driving marketing ROI?
• True cross-channel
attribution
• Statistically inferred
response attribution
(SIRA) prevents errors
• Efficient marketing
budget investment and
better ROI measurement
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Attribution Modeler provides 5 attribution approaches for a
more precise view
Display Ads
Email
Search
Social
Referral
Call Center
POS/ Kiosk
Direct Mail
Web Site
Mobile
Mass Media (future)
TV Ads, Radio Spots, Billboards
Cross-channelAttributionviaMarketingPerformanceOpt.
DigitalAttributionviaDigital
Marketing
AttributionManagement
AttributionModeler
InteractionHistory
Marketing performance
measurement
KPI measurement across channels and
programs
– Cost and Revenue
– Return on Investment
– Number of Responses
– % Response
– Number of Responders
– % Responders
– Average Revenue per response
Attribution comparison
– SIRA (Statistically Inferred
Response Attribution)
– Cross-channel last touch
– Cross-channel first touch
– Cross-channel equal credit
– Direct Attribution
Attribution
Engine
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26. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Phase 3 helped understand cross-channel
performance
“What campaign channel
combinations drive the highest lift?”
Analysis
Strategy
Marketing
Leaders
Marketing Analyst
CMO
Marketing Manager
And how do I
divide credit?”
“What influences
conversions?”
“What influences customers
to migrate through the
conversion cycle?”
26
27. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Phase 4- Marketing Performance Optimization
Coremetrics
Attribution
Monthalizer
modeller
Attribution
Modeler
Marketing
Performance
Optimization
1. 2.
4. 3.
Data-driven
marketing mix
allocation
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28. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Data-driven Strategic Marketing Planning
28
Uncover the
optimal
sequence of
future actions
Determine the
value of
marketing
touch
29. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Marketing Performance Optimization
Maximize marketing ROI by optimizing marketing investment and improving
marketing operations
Current capabilities New capabilities
Tactical focus
Deliver insights
about past
Strategic focus
Recommend
concrete future
actions
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30. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Data-driven Strategic Marketing Planning
Interaction History
Market Mix
Analysis
(Rich
visualizations
)
Marketing
Performance
Reports
Customer Micro-
segmentation
Attribution Modeler
Scenario Planning
Marketing Performance
Forecast
Performance
Forecaster
Optimized
Marketing Mix
Budget Optimizer
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31. Twitter: #SmarterCommerce | @IBMEMM© 2013 IBM Corporation
Scenario Planning and Marketing Mix Analysis
Allow users to create what-if scenarios and deliver data-driven analytics to optimize marketing mix
under each scenario
Gold
$12,000
39%
Silver
$10,000
33%
Other
$8,500
28%
Marketing Mix By Segment -
Scenario A
Gold
$11,000
36%
Silver
$9,000
30%
Other
$10,500
34%
Marketing Mix By Segment -
Scenario B
$30,500.00
$32,500.00
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Scenario A Scenario B
Marketing Mix - By Channel
Social
Mobile
Web
eMail
Direct Mail
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Marketing Performance Optimization Vision
Leverage Big Data and Smarter
Analytics to maximize marketing ROI
across channels
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Sameer Khan / David Reed
• Sameer.Khan@rackspace.com / David.Reed@rackspace.com
• Rackspace
• Senior Marketing Manager / Senior Marketing Analyst
• @sameerkhan / @davidreed
Ravi Shah
• ravishah@us.ibm.com
• IBM
• Product Manager, MPO
• @shahravi
Follow us on Twitter for latest product updates, etc.
• @IBMEMM
Questions and Answers ….
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Understand each customer
as an individual
more than a
demographic,
more than a
segment.
Editor's Notes In this presentation we will take you through four phases of our attribution progress. Before I jump in to the attribution strategies. Here is a quick introduction to Rackspace. We are a global hosting and cloud computing company with 10 worldwide data centers supporting 200,000 customers Phase 1 is attribution using coremetrics integration. At rackspace we acquire customers through online shopping cart, chat and phone calls. Our biggest attribution challenge was Visitors who become lead through chat. As the visitors initiate a chat the sales rep takes their contact information and enters into sales force. along with a unique identifier cookie we call it Rackuid.Due to this manual transfer of the information the marketing touch point to lead attribution is lost. To overcome this challenge we worked with IBM professional services team to integrate sales force with coremetrics. With the help of this integration we no have full visibility on the marketing channels driving leads. The challenge for the customers created through our shopping cart is different. Since most of our cloud products are pay per use utility based the revenue on purchase is zero dollars. To solve for revenue attribution we used coremetrics multichannel import functionality and connected offline revenue data with web analytics data giving us visibility to the true ROI of our cloud marketing programs. For the phase 2 I would ask my senior analyst David Reed to present the details. With the help of the Coremetrics attribution we are now able identify the conversion influencers and assign credit to offline revenue. Change icons Here’s an example of all the approaches First response gets 100% of the credit – shown by a 1Last response gets 100% of the credit And the multi credit approach… gets .25 for each campaign tactic…But there’s a better way… Interestingly, key insights pops up when you look at the cross channel performance. Notice how even though the winning offer is Natural search, Sira gives credit to Referring sites. Similarly, Natural search is winning over other campaigns. This insight has helped us justify our marketing dollars investment in content marketing and other SEO activities. Analytics, Lifecycle, Search, Impression Attribution and ExploreAnalytics / Explore – mostLifecycle - organizes your analytic data into custom customer milestones and provides drill-down metrics for each With the SIRA attribution we are becoming smarter in investing marketing dollars on the right channel. We also have intelligence on the true channel attribution and customer conversion cycle. To summarize, what we have learnt from our experience that attribution that it is a journey and not a destination. You start with one attribution project complete it and move on to the next challenge. We started with integration and as we progressed the next challenge was more complex than the previous one. requires stronger partnerships with your analytics vendors, data scientist and subject matter experts. In addition, it requires more sophisticated way of dissecting your data.