"Marketing Analytics: How, Why & When"

© 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com
• Option 0.2
Marketing Analytics: Introduction & Examples
Hashtag: #MarketingAnalytics

Housekeeping
Unmute computer speakers
Slides and recording distributed via email afterwards
Submit questions via the Q&A panel through GoToMeeting
Hashtag: #MarketingAnalytics

About our Speaker
The “Analytics Ambassador”
 Author -
“Marketing Analytics: Strategic Models and Metrics”
 Professional Expertise -
VP Strategic Marketing, On Demand Advisors
 Applying marketing analytics to grow revenue
 Academic Expertise -
Marketing Analytics Instructor since 2008
 USF MBA Program
 UC Berkeley, San Francisco Extension
 Board Member -
 Served on UC Berkeley Ext. Marketing Metrics
Board
Website: http://www.StephanSorger.com
LinkedIn: http://www.linkedin.com/in/stephansorger

About Regalix
 An award-winning Global Co - Innovation company that
leverages technology and marketing to help companies grow.
 Forefront of Innovation
o Digital Marketing Services
o Technology Enabled Services
o Regalix Labs
 Multi-disciplinary Leadership Team & Strong Advisory Board,
175+ Team
 Fortune 500 and Venture Backed Customers (B2B and B2C)
 Global Operations: HQ in Silicon Valley, 2 Offices
 Industry Recognition

About the New Book
 Authoritative Guide to Marketing Analytics
 Over 10 years of professional experience
 Over 5 years of academic research
 Comprehensive
 Nearly 500 pages of text
 Nearly 400 figures, tables, and graphs
 Practical
 Structured around marketing and products,
not math
 Packed with examples
 Available on Amazon.com:
 Search on “Marketing Analytics”: www.StephanSorger.com
www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307

On Demand Advisors: Process
2. Market
Definition
3. Lead
Generation
4. Lead
Management
5. Sales
Enablement
1. Revenue Engineering

On Demand Advisors: Clients

On Demand Advisors: Events
 Free Revenue Engineering Workshops held every month
 Tuesday, August 12, 2014
 How the Channel Can Make Your Numbers Every Quarter
 See OnDemandAdvisors.com to register and to see complete
schedule

Agenda
 Introduction
 Trends Driving Adoption
 Advantages
 Models vs. Metrics
 Promotion Budget Estimation
 Promotion Allocation using Microsoft Excel
 Bonus Section: Social Media Metrics
 Next Steps
 Questions

Trends Driving Adoption
Marketing
Analytics
Adoption
Online Data
Availability
Reduced
Resources
Massive
Data
Accountability
Data-Driven
Presentations
 Improve productivity
 Reduce costs
 “What gets measured
gets done”
 Data to back up
proposals
 Predict success of plans
 Initiatives to capture
customer information
 What to do with all that
data?
 Cloud-based data
storage
 Online = speed
 Online = convenience
 Do more with less
 Scrutinized budgets
 Marketers must show
outcomes

Marketing Analytics Advantages
Marketing
Analytics
Advantages
Persuade Executives
Side-Step
Politics
Encourage
Experimentation
Drive Revenue
Save Money
 Marketing as cost center
 Marketing as profit center
 Correlation between spending
& results
 Old way: execute campaign &
guess outcome
 No longer tolerate this approach
 New way: predict outcome
 Test multiple scenarios
before proceeding
 Run Simulations
 Predict which will work best
 Focus on revenue impact
from marketing
 Correlation between
spending & results
 Some CEOs do not
appreciate marketing
 Show impact of efforts with
metrics

What is Marketing Analytics?
“It’s a Snake!”
It must be
Marketing
Automation!
“It’s a Fan!”
It must be
Social Media!
“It’s a Tree!”
It must be Google
Analytics!
“It’s a Wall!”
It must be Big Data!
“It’s a Rope!”
It must be
Predictive
Analytics!

Marketing Analytics Framework
Strategic Tactical
Market
Analysis
Chapters 1-3
Competitive
Analysis
Chapter 4
Strategy and
Operations
Chapters 5-6
Marketing Mix
The 4 Ps
Chapters 7-10
Sales and
Support
Chapter 11
Analytics
in Action
Chapter 12
Conjoint
Google Analytics
Social Media
Forecasting
Big Data
Predictive Anyl.
Marketing AutoSegmentation
Targeting
Positioning
Competitive Analysis

Definitions
Topic Description
Definition (Broad) Broad definition (but too vague):
Data analysis for marketing purposes,
from data gathering to analysis to reporting
Definition (Applied) Techniques and tools to provide actionable insight
- Models - Metrics
Models Decision tools, such as spreadsheets
Metrics Key performance indicators to monitor business

Models and Metrics
Metrics = Gauges:
- Monitor situation
- Diagnose problems
Models = GPS:
- Representation of Reality
- Decide on course of action

Promotion Budget Estimation
Popular
Promotion
Methods
Public Relations
Radio Advertising
Search Engine Marketing
Social Networking Sites
Television Advertising
Direct Marketing
Events and Experiences
Internet Advertising
Location-based Social
Print Advertising
Apple: Email ads
Jeep: Sponsor of X Games
Radio Shack: Ads on Yahoo!
Foursquare: Local restaurants
Maybelline: Ads in Vogue
Royal Mail: Picked up stories
Motel 6: Car travelers
Lowes: PPC Ads for washers
Facebook, LinkedIn, Twitter
GEICO: Many TV ads

Promotion Budget Estimation
Promotion
Budget
Estimation
Competitive Parity
Objective and Task
Model-based
Percentage of Sales
Affordable

Method 1: Percentage of Sales
Promotion
Budget
Promotion Budget = % of Revenues
Annual
Revenue
LegalZoom: Many businesses allocate 9 – 12% of annual sales for marketing budget

Method 2: Affordable
Promotion
Budget
Leftover funds go to promotion
Company
Funds

Method 3: Competitive Parity
Promotion Budget
Promotion Budget
for Company
Promotion Budget
of Competitor

Method 4: Objective and Task
Market Share
Goal
Advertising
Reach
Trial
Rate
Customer
Count
Advertising
Impressions
Gross Rating
Points
Advertising
Budget

Summary: Promotion Budget

Promotion Allocation: Model
Linear
Optimization
Model
INPUTS OUTPUTS
Objective Function
Constraints
Maximized Objective
Or Minimized Objective

Promotion Allocation: Constraints
Contractual Constraints
Company Policy Constraints
Financial Constraints
Legal Constraints
Typical
Promotion
Constraints
Budget NTE (not to exceed) $XXX/yr
Must follow legal regulations
Contracts with outside agencies
Observe company policies

Promotion Allocation: Process
Vehicle
Contribution
Promotion
Objective
Promotion
Constraints
Optimization
Model
Promotion
Data
Budget
Allocation
Vehicle Contribution: Determine effectiveness of campaigns, based on historical data
Promotion Objective: Declare promotion objective in equation form
Promotion Constraints: Specify promotion constraints in equation form
Optimization Model: Execute model

Promotion Allocation: Example
Direct Marketing: Emails sent directly to individuals within target market
Pay Per Click: Campaigns displaying ads during relevant Internet searches
Social Media: Paid advertisements on social media platforms

Objective Function
Z = 30 * D + 30 * P + 40 * S
The equation applies the following variables:
Z = Our objective, in this case the total number of impressions from all promotion vehicles.
D = Quantity of direct marketing campaigns to run, given that each direct marketing campaign
results in 30 viewers per advertisement.
P = Quantity of pay per click campaigns to run, with 30 viewers per campaign.
S = Quantity of social media campaigns to run, with 40 viewers per campaign

Promotion Constraints
B = 30 * D + 40 * P + 60 * S ≤ $2,000
The equation applies the following variables:
B = Our monthly budget
D = Quantity of direct marketing campaigns, which cost $30 each to run.
P = Quantity of pay per click campaigns, which cost $40 each to run.
S = Quantity of social media campaigns, which cost $60 each to run.
≤ = Inequality sign, indicating that we may not exceed our maximum budget.
D ≤ 30: Cannot exceed 30 direct marketing campaigns per month
P ≤ 20: Cannot exceed 20 pay per click campaigns per month
S ≤ 10: Cannot exceed 10 social media campaigns per month

Promotion Allocation : Solver
Optimization Model:
Setup
Optimization Model:
Execution
Optimization Model:
Interpretation
Excel Solver functionSpecific format Identify limiting factors

Promotion Allocation: Setup
Changing Cells
Target Cell 30 30 40
Constraint #1: Budget 30 40 60
Constraint #2: D ≤ 30 1
Constraint #3: P ≤ 20
Constraint #4: S ≤ 10 1
1
D P S
Columns for D, P, and S parameters
Changing cells for D, P, and S
Target Cell
(Contains objective equation)
Constraint, Left Side
(Contains constraint equation)
Constraint, Right Side
(Contains constraint value)
a b c
d
e f
g h
i j
k l
A B C D E F
1
2
3
4
5
6
7
8
9

Promotion Allocation: Execution
Excel
Home Data ……
Solver
A B C D E F G

Solver Parameters
Set Target Cell: Solve
Options
Equal To: Max. Min.
$E$4
By Changing Cells:
Subject to the Constraints:
$B$2: $D$2
$E$6 <= $F$6
$E$7 <= $F$7
$E$8 <= $F$8
$E$9 <= $F$9
Add
Add Constraint
Cell Reference:
OK
$E$6 <=
Constraint:
=$F$6

Changing Cells
Target Cell 30 30 40
Constraint #1: Budget 30 40 60
Constraint #2: D ≤ 30 1
Constraint #3: P ≤ 20
Constraint #4: S ≤ 10 1
1
D P S
Columns for D, P, and S parameters
Changing cells for D, P, and S
Target Cell
(Contains objective equation)
Constraint, Left Side
(Contains constraint equation)
Constraint, Right Side
(Contains constraint value)
30 20 5
170
0
2000 2000
30 30
20 20
5 10
A B C D E F
1
2
3
4
5
6
7
8
9

Promotion Allocation: Interpretation
Solver Results: Constraints
Solver Results: Summary

Promotion Metrics: Social Media

Sample Built-in Tools

Sample Aggregators

Pro Tools

Social Media Metrics Hierarchy
Referral Level: Users refer to others
Dialog Level: Users communicate
Engagement Level: Users act
Referral
Dialog
Engagement
Viewer
Viewer Level: Users view content

Sample Metrics: Viewer Level

Sample Metrics: Engagement Level

Sample Metrics: Dialog Level

Sample Metrics: Referral Level

Next Steps
• Take advantage of the metrics embedded in Regalix
• Go to Amazon.com, search on “Marketing Analytics”. Buy this book & others
• Consider taking university course in Marketing Analytics
• 2015: Online marketing analytics video courses available
• Until then, consider practicing promotion allocation methods on your own

Questions
Any Questions?

Get in Touch
 If you have any questions about this webinar please feel free to get in touch with
us at marketing@regalix-inc.com
 For more information on Regalix visit: www.regalix.com
 For more information on Stephan Sorger visit: www.StephanSorger.com

 Do join us for our next webinar titled, “Rise Above The Noise: How To Get Your
Brand To Stand Out On The Social Web” on Thursday, August 21, 2014, 1:00PM
ET/10:00AM PT
 Speaker
Mike Lewis, CEO & Co-Founder, AwarenessHUB
 Visit our page http://bit.ly/1fFhmeb to read more on Marketing Automation
47

"Marketing Analytics: How, Why & When"

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