Revolutionizing the Channel Mix: SapientNitro's Data Creativity Award entry for I-COM 2016 #icom2016 #sapientnitro

1. REVOLUTIONIZING THE CHANNEL MIX
LAURA WALKER

2. § 2001: The 1st to specialize in Laser Hair Removal
§ 2011: 2nd Largest Market Share in the Industry
§ 2012: Reduced Cost of Entry increased Competition
leading to Commoditization
§ 2013-14: Double-digit Decrease in Leads
6% Contraction of Revenue
Promotions were Indistinguishable and Featured “Race to the Bottom” Pricing
THE CLIENT & THE CHALLENGE

4. • Create a Distinctive Brand Identity
• Expand the Service Portfolio
• Elevate the Communication Strategy
• Diversify the Channel Mix beyond “business as usual”
Broadcast Radio
• Employ Historic and Real-Time Performance Data to Predict
Outcomes, Validate Strategy and Optimize Performance
THE TURNAROUND STRATEGY

6. § Develop an Intelligent Ecosystem using SapientNitro’s
cloud-based Customer 360 Environment
§ Devise a Channel Mix Optimization Model
§ Improve Predictability through Rigorous Forecasting
§ Enable “Always Available” Access to Facilitate a
Sense of Ownership across all Stakeholders
THE APPROACH

7. CRM
FINANCE
DIMENSIONS ELEMENT
From 2009
• Geography
• Channel
From 2013
+ Publisher/Venue
+ Media Format
+ Creative Concept
+ Offer
Spend
Inquiries
Leads
Schedule
Show
Guests
New Guests
Revenue
Net Profit (Loss)
KPIs
Cost per Lead
Lead to New Guest Rate
Cost per New Guest
Revenue per New Guest
Revenue
Media ROI
DATA CREATIVITY: THE INTELLIGENT ECOSYSTEM
All Keyed Off a Unique Identifier: GuestID
Customer 360
Environment

8. - Enables the rapid production of multiple scenarios and automatically identifies the optimal
DATA CREATIVITY: OPTIMIZING TO OUTCOMES
§ Every channel/publisher/venue exhibits
different behaviors, often significant
§ As does each variation of creative concept,
offers, week of year, and geo
§ The Channel Mix Optimization Model:
- Applies a comprehensive channel mix
optimization algorithm based on historic and
real-time data
REVOLUTIONIZING THE CHANNEL MIX
INPUT
Actual Results
PROCESS
Algorithm using
Weighted Historic &
Real-Time Results
INPUT
Min/Max
Parameters
Most often Spend
INPUT
Revenue or Net
Profit Goal
OUTPUT
Optimal Channel Mix
to attain Goal
given input parameters

9. DATA CREATIVITY: SAMPLE INSIGHT
§ Previous to our analysis, the client organized the marketing calendar in an arbitrary way
with varying offers good for 3 days to 3 months
§ Our analysis not only identified productive offers, it indicated that – due to consumer
“fatigue” – the longest offer period should be 6 weeks

12. KPI OBJECTIVE RESULT DELTA
Cost per Lead -20% -34% 70%
Cost per New Guest -20% -30% 50%
Revenue 10% 46% 360%
Media ROI 35% 48% 37%
DATA CREATIVITY: RESULTS
The turnaround led to new investments: the
organization is now focused on high growth

13. KEY TAKE-AWAYS
There’s no such thing as too
much data or analysis
Data is better when there is
tight integration of data
between agency and client
Frequent socialization of
results secures client
confidence and team
ownership
§ Although a multi-domain effort,
the insights-driven actions are
the most significant drivers of
this dramatic turnaround
§ The federation of media,
marketing, customer, and
financial data is critical to
meaningful performance
improvement
§ The commitment from and
engagement of key leadership –
particularly Marketing,
Technology, and Finance –
enables the optimizations that
impact the bottom line
§ Having the platforms, tools, and
analytic, technology, and
management consulting skills to
build the Intelligent Ecosystem
made SapientNitro uniquely
qualified to drive this turnaround
§ Creates transparency with the
client, inviting them to probe and
challenge
§ Empowers and secures ownership
from media planners
§ Encourages an obsessive focus
on outcomes
§ Enables rapid response to
dynamic conditions

14. Q&A