This document discusses how data-driven marketing can provide a competitive advantage. It notes that the volume of available data is growing exponentially, and the ability to understand, process, extract value from, visualize, and communicate data will be an important skill. The document then presents four case studies: 1) Focusing on basic call handling metrics like call answering led to a 70% increase in appointments for one company. 2) Analyzing payment trends helped direct effective marketing campaigns during economic shifts. 3) Profiling customer locations and demographics revealed opportunities to improve call volumes and sales in certain areas. 4) Call handling impacts conversion rates differently for various industries, so focusing on key call stages can improve outcomes.

1. AIM 2010Creating a Data-Driven Marketing Plan for a Hyper Competitive EnvironmentDeanna Kawasaki

2. Data data everywhere….The actual cost efficiency of information processing doubles every 12-18 months

3. In 1978 the Cray 1 super computer processed 160 million instructions per second – it was the fastest, most powerful computer in the world

4. When Sony introduced the PlayStation in 1995, it processed 500 million instructions per second making it 3 times as powerful as the Cray 1

5. The Cray 1 cost $20million while the PlayStation costs $299 at retail

6. Today’s computer is tomorrow’s video gameEvolution of Data Knowledge without action is wasted effortAction Knowledge was created as information accumulated over time and was supplemented with analysis and human imaginationKnowledge As data elements were blended and reviewed using reporting tools, information was createdInformation Data became a critical tool in marketing as systems made the creation and collection of data economically feasible and timely Data

7. Knowledge Transformation “The ability to take data—to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it—that’s going to be a hugely important skill in the next decades” Hal Varian , Google Chief Economist

8. Case 1: Base MeasuresKeep it Simple

9. Is the phone being answered?Answering the phone is a basic dependency measure to increasing the goal of increasing the number of appointments set

10. Ad Source and call handling performance is secondary of the call isn’t getting picked up Large SW PMCo reaps the rewards of starting with the basics70% increase in appointments set in 30 days

11. By keeping-it-simple and focusing on the basics of answering the call, time management and setting the appointment, this Southwest company significantly improved their core operational measures in 1 month Which ad sources produce appointments?330 area code displayed trend change in appt. producing ad sources

12. Print in 2010* led to more appointments set than in 2009 2010sampleAppt Set Callsby ad source type2009 sampleAppt Set Calls by ad source type

13. 330 Area Code top* appointment producing ad sourcesAppointment set rates for top ad sources in the sample ranged from 44%-57% in 2009 to 48%-65% in 2010Top 10 ad sources in 2010 sampleTop 10 ad sources in 2009 sampleSample: based on sample

14. Case 2: Look Toward the HorizonA Path to Transforming Data into ActionCreating Knowledge

15. First, Creating Information Credit Card Payment Behavior Changed

16. Monthly analysis of payment trends suggested a shift began in 2008 with Finance related cash flows increasing while Credit Card and Check/Cash/Debit options decreasingNext, Gain Knowledge through AnalysisThe decrease in share percentage of Credit Card cash flow closely mirrors ‘cost-of-money’ indicators like the 30 yr conventional mortgage rate

17. As credit companies tightened their limits, customers looked for alternate financing options

18. Eighty-eight million accounts and credit lines, representing $751 billion in credit, have been closed since September of 2008.

19. In September 2008 credit card debt hit an all-time high of $975 billion. Banks shed nearly $76 billion in card account balances over the 11 months preceding August 2009. The Fed reported the total outstanding credit card debt at the end of August 2009 was $899 million.*Interest Rates sourced from Federal Reserve: http://www.federalreserve.gov/RELEASES/H15/data.htm#topFinancial Sources: www.cardtrak.com, September 2009, www.federalreserve.gov

20. Step 3: ActionDirect Marketing ActionsWhile economic indicator trends remain constant and credit is tight, campaigns centering on OAC are most appealing to this target group of customers

21. When economic conditions begin to improve, credit begins to “loosen”, new campaigns such as discounts should be retested for impact

22. Teach, train and transfer knowledge to partners and assist them with identifying triggers of economic improvements that best predict a change in process that will affect them and how they can test waters to keep them ahead of competitorsCase 3:Finding look-a-likesProfiling

23. Profiling: what do you know about who chose you?Customers who purchased products between Oct09 and Mar10* tended to report addresses within 6 to 9 miles of the location they visited

24. Large proportion traveled less than 20 miles to locationfartherdistancenearer

25. Are your customers coming from the same areas that are driving the most calls?Mid-West states of IO, IL and IN received more calls and sold more units

26. GA, NC, FL and CA received higher than average calls but sold fewer unitsMore SoldUnits sold/popLess SoldMore CallsConnected CallsLess Calls

27. Deeper look at a single location shows an opportunityAll person’s who purchased in Feb10 from Carlsbad came from within a 10 mile radius

28. 3 of the 4 purchasers came from zip codes with lower call volumesMore CallsConnected Calls/popLess Calls

29. Closer….Closer Still….Median HH Income:$69.5kMedian HH Income:$54.6Median HH Income:$57.8kMedian HH Income:$48kMedian HH Income:$63.7kMedian HH Income:$65.3kMedian HH Income:$68.9kMedian HH Income:$63.7kMedian HH Income:$97.8kMedian HH Income:$99.6kMedian HH Income:$64.7kMore CallsMedian HH Income:$81.9kConnected Calls/popLess Calls

30. Case 4: Lead HandlingThat which is focused on, improves

31. Can the outcome of a call be influenced by how it is handled?A lead call can be viewed as having a particular series of ordered events where each of these stages has a measurable impact on a desired outcome, a lease

32. Analysis indicates that particular industries can successfully influence their desired outcome by focusing on key, relevant, stages of a callAutomotiveCall Handling’s Influence on Setting the AppointmentVery strong correlations exist between the call-to-appointment conversion rate and the well Handling of ObjectionsHearing AidCall Handling’s Influence on Setting the AppointmentSignificant correlations exist between the call-to-appointment conversion rate and the well handling of the Qualifying Needs section Multi-FamilyCall Handling’s Influence on Setting the AppointmentConsistently, strong correlations exist between the call-to-appointment conversion rate and the well handling of the Introduction and Lead Information sectionThank You