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Winning with BIG DATA
Drive Marketing ROI across all
Channels & Campaigns

@tkahlow
@BOLoptimized
Why Big Data? Why now?
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Pace of change…
+ Companies: Large and small…
+ Industries: Old & young
+ Customers: b2b, b2c, male or
female, rich or poor…

+ Change, big change…
Enterprise Value Paradigm
Greatest Company Asset…
Customer Relationship
Not
Product

Not
IP
Not
Brand
Age of the Customer
“Empowered buyers, disruptive digital
innovations…erase traditional competitive
advantages…the next wave will come from deep
customer knowledge, engagement tied to the
buyer's timing, and actions based on an obsessive
desire to deliver what your customers want before
your nearest competitor does.”
I’m Thad Kahlow @Tkahlow
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+
+
+
+
+

+

CEO BusinessOnline
14 years Digital Marketing
B2B/B2C High Consideration- lead to sale
B2B Magazine Interactive Agency year
Top Agency: 3 Consecutive years…

Thrilled to be here today!
Allow me to

Digress…
Winning with Big Data 10:30-11:30am NCDM13
CEO: New normal
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

CEOs operate in a substantially more

“volatile, uncertain and
complex world”
-IBM Study, face-to-face conversations with more than 1,500 CEO’s worldwide.
Solution

CEO
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

“CEOs believe #1 goal is to
get closer to customer”
-IBM Study, face-to-face conversations with more than 1,500 CEO’s worldwide.

Re-Invent Customer Relationships:
+Adopt new channels to engage & stay connected with
customers.
+Draw more insight from data…make customer intimacy
priority #1
Solution

CMO
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Deliver Value to Empower Customers
+ Digital revolution- forever changed
balance of power between individual &
institution

Foster Lasting Connections

+Cultivate meaningful
relationships…throughout life cycle
Capture Value, Measure Results

+Justify financial results
Simplify please…
Why Data?
Why now?
Because…
Customers
have control &
fundamentals
have
changed…

Barriers to
entry are
minimal,
competition
can enter and
win quickly…

Customer
Relationships
become our
largest asset
Data is
introduction,
enabler & insight
Win with
Data
The Primary

Marketing Challenge
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Programs that
efficiently and
effectively
generate leads
that turn into
sales…

yet

Majority of
marketers do not
know which
programs produce
the leads that turn
into sales.
Strategy Starts

Data Framework
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Close the Loop

Close the
Loop

More
Effective
Sales

Customer
Journey

Drive
Business
Performance
Attribute
Success

Attribute

Validated Score

Personalize
Collect & Connect Data throughout

Company Buying Journey
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
“Great marketers focus on people… their
needs, behaviors, intentions, wants… Avoiding
the shiny temptations of marketing solely to
things – like devices, channels, technologies.
Never been more critical… Staying focused on
the people and motivations…marketers can
catch an incredible wave of opportunity.”
Close the Loop
Step 1
Common

Approach to Measurement
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Awareness:
PPC , SEO, Display, Social, Email…

Awareness

Engagement
Conversion

SALE

Usage Engagement: Bounce,
Page Views, Visits, Frequency
Content Engagement:
Newsletters, Blogs, Videos,
Webcasts, product pages
Conversion:
Request a quote, contact, dealer locator,
initiated lead, completed lead, registration,
#800
Measured in isolation:
-Single Channel to Lead : CPL
-Silo Engagement: Avg page views
Close the Loop

w/ Connected Common Key
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Web
Analytics

+ Marketing
Automation

+ CRM
Integration
Connected Marketing Technology
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Web Analytics

Business Systems

Channel Data

Exact Target

Customer Intelligence

22
“…companies are seeing an average
15-18% Lift in Revenue…
As result of implementing
closed-loop & Optimizing”

- Tina Moffett, Attribution Analysts Forrester Research
Attribute Success
Step 2
Primary

Attribution Model Types
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Single Touch
Type

Rules-Based

Statistically Driven

Assigns 100%
credit to the last
or first exposure

Assigns credit to each
interaction based on
specific business rules

Assigns credit to each
interaction based on a
data driven model

 First/Last Touch

Approach

Basic

E-Mail

Display

Search

E-Mail

Display

Search

33%

100%

33%

33%

27%

49%

24%






Even Weights
Custom Weights
Time Decay
Positioned Based

 Regression Model
 Probabilistic Model
 “Validated Engagement
Factors”

Advanced
Model

Pitfalls
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Single Touch
Type

Rules-based

Statistically Driven

Pitfall

 Ignores the bulk of the
customer journey,
overvaluing the first or
last touch
 Undervalues other
influencers (and
interactions), including
sales efforts

Basic

E-Mail

Display

Search

E-Mail

Display

Search

33%

100%

33%

33%

27%

49%

24%

 Assigns arbitrary values
to each specific
marketing tactic
 Subjective and lacks
analytics rigor to
determine weights

Advanced

 Can be more complex
& costly to execute
 Some Marketers feel
uncomfortable with an
algorithmic, “black
box” approach
Validated Engagement Factors
(Statistically modeled)
VEF

Validated Engagement Factor
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

“Historical (validated) review of past behavior…
to improve future outcomes”
Five Steps

Validated Engagement Factors
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

1. Close the Loop: Data house in order: web
activity + marketing automation + CRM (sale)
in Data Warehouse

2. Determine path to success: what did
prospects do before they became clients?

3. Aggregate past (50+) clients- create statistically
significant = validated

Closed Loop

Path to Success
Five Steps (Cont)

Validated Engagement Factors
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

4. Normalize Connected Data:
+ Time: Analyze engagement activity over time (12mos)
+ Normalize: Create a Normalized engagement score across all
customers = 100 (mean)
+ Analyze for Statistically Relevant Insights: Lead engagement
scores > 100 Score =
+ “demonstrating higher likelihood to buy”
5. Turn Insights into Business Opportunities

+
+
+
+

Content personalization
Remarket
Click to chat
Sales alerts/out reach
Company Attribution
Company Attribution
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+

Typically measured @ individual level
-YET-

+

KNOW B2B has multiple influencers in buying journey

+

For Every known lead, we can have 10+ unknown visitors

+

Measure, analyze and optimize opportunities at the
company level
Example

Individual vs. Company
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

7 vs. 173 =
+24x More successful
B2B Sales Funnel

Stakeholders in Buying Process
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Engagement Score
1800
1600
1400
1200

Analysts

1000

Marketing

800

IT Team

600

C-Level

400
200
0
Month 1 Mo. 2

Mo. 3

Mo. 4

Mo. 5

Most of these stakeholders were anonymous

Mo. 6
Personalize to role/need

Amazon for B2B/ B2C High Consideration
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+
+
+
+
+
+

Someone in your role
In your industry
At this stage of buying journey
Looking for to solve this specific problem
Has found this piece of information valuable
All based on past success events

SALE

General experience

Personal experience

Convert

Increase sales
Drive Business Performance
Step 3
Derive Business Insights

From Data
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+

Identify insights from multiple data sources across the
enterprise

+

Clearly communicate performance at the channel,
campaign, and content level

+

Focus on business decisions instead of wading
through low-level marketing analytics data

37
Answer the

Right Business Questions
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+ What is our marketing conversion rate?
+ What is our sales conversion rate?
+ What is our lead quality from digital?
+ What is our return on ad spends?
+ What are customers engaging with?

38
Measure Key

Digital and Business Metrics
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+ Shift your conversations from
impressions and clicks to
revenue and ROI

266,773
Visitors

+ Focus on customer activities

4,027
Leads
[1.5%]

that sell and refine programs

+ Clearly demonstrate the impact
of marketing to the bottom line

208 Buy
[5.3%]
39
Example

Digital & Business Key Metrics
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

A mature digital presence with full customer journey attribution can yield:

+
+
+
+
+
+
+

Targeted Impressions: ~6M-9M
CTR 1%–3%
CPC: Avg $1.01
Qualified Visitors: 100ks
Lead Conversion: Avg ~6%
Cost Per Lead: $20 CPL
Lead to Sale: ~6%

+ Cost Per (offline) Sale:
+ ~$600 cost/sale (p/unit)
+ $20M Sales/ $1M Cost
+ ROI: 1,000+%

40
Future…

Predictive Modeling
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Sales

Effectiveness

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+ Give sales the right
information to close
more business in less
time

+ Sales alerts
+ Predict who will buy
in the future
+ validated
engagement
scoring +

SALE

Establishes predictable, efficient sales path that takes less time
Winning with Big Data 10:30-11:30am NCDM13
Thank You

Data Education
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

+
+
+

Data Maturity Model
White Paper: Closed Loop Marketing Attribution
Webinar: Close the Sales & Marketing Loop

@tkahlow
thad.kahlow@businessol.com
@BOLoptimized

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Winning with Big Data 10:30-11:30am NCDM13