1.
Data Driven Marketing
September 17, 2012
iSummit
Bernie Borges, CEO Find and Convert

2.
Three Eras of Modern Marketing
• Creative era
• 1960’s and 70’s
• Advertising centric
• e.g., The Marlboro Man,
Where’s the Beef?
• Direct era
• Database marketing direct to
the consumer
• 1% conversion rates =
profitability
•Relevance era
• A relevant message to each
customer segment in the
relevant channel

3.
It’s All About Relevance
• 1978 consumers 2,000 ad messages/day
• 2007 consumers 5,000 ad messages/day
• 2010 consumers 16,000 ad messages/day
95%
open rates
possible 5%
with highly open rate typical
relevant with irrelevant
messaging messaging

4.
The Cost of Irrelevant Messaging
• 64% of consumers say promotional
offers dominate both email and
traditional mail everyday
• Only 41% view these as relevant
communications
• Of the 91% of consumers that opt
out of brand’s emails 46% defect
from the brand due to irrelevant
messaging

5.
The Cost of Irrelevant Messaging
• 41% of consumers say they
would consider ending a brand
relationship owing to irrelevant
promotions
• An additional 22% say they
would defect from the brand
relationship due to irrelevance
• 58% of brand’s marketing
content is not relevant to
potential buyers, reducing
brands’ chances of a sale by
45%

6.
The customer is in control and knows it!

7.
The Power of Data Driven Marketing
The data (precision) marketing framework relies heavily on
several key factors, starting with the collection and
analysis of data.
Analyze
and Model
Determine Deploy
Objective
Measure

8.
Why Brands Don’t Do
Data Driven Marketing (DDM)
• Difficulty collecting relevant data
about customer preferences and
behaviors
• Difficulty acting on customer
data to predict customer needs
and propensity to purchase
• Difficulty executing highly
relevant messages/offers that
align with customer interests
• Difficulty measuring results

9.
DDM Business Results
• Increased revenue
• Customer retention
•ROI in marketing expenditure

10.
Forces Behind DDM
• Economics
• Consumers affected by
down economy scrutinize
purchases
• Customer loyalty is more
important to brands than
ever before
• Marketing budgets are
under heavy scrutiny in C
suite

11.
Forces Behind DDM
• Intensifying competition
• Lower barriers of competitive
entry in digital age
• Competitors experimenting
with social media, email,
content, behavioral marketing
campaigns
•The WOW factor…Consumers
expect to be wowed…

12.
Forces Behind DDM
• Advancing technology
• Business analytics
• Marketing automation
• Marketing optimization

13.
It’s All About the Customer
Relevance will close the chasm
between creative and direct
marketing, leveraging customer
insights to produce truly valuable
content and communication that
engages the buyer through highly
relevant customer touch points.

14.
Tesco Clubcard
A Lesson in Customer Retention via DDM

15.
Tesco Clubcard
Objective: Customer retention and loyalty
Analyze
and Model
Determine Deploy
Objective
Measure

16.
Tesco Clubcard
Gather data: Clubcard sign up, transactional touchpoints.
Clothing
Banking Analyze
Food & Wine and Model
Telecom/Electronics
Entertainment
Healthcare
Recycling
House & home
Home efficiency
Travel Determine Deploy
Motoring Objective
Measure

17.
Tesco Clubcard
Analyze & Model: 10% of data gives 90% accuracy.
Relative price
Finer food: 19%
Branding Analyze
Healthy eaters: 17%
Ethnicity and Model
Traditional: 15%
Convenience: 9%
Mainstream: 24%
Price sensitive: 16%
Determine Deploy
Objective
Measure

18.
Tesco Clubcard
Strategize: Develop relevant messaging strategies.
Customer retention
Customer reactivation Analyze
Customer growth and Model
Determine Deploy
Objective
Measure

19.
Tesco Clubcard
Deploy: Using DDM Tesco offers tailored/relevant
promotions based on customer’s behaviors.
Analyze
and Model
Determine Deploy
Objective
Measure

20.
Tesco Clubcard
Measure: DDM allows results in sales lift.
16 million members
Across 12 countries. Analyze
and Model
20 to 40% overall
redemption rates!
Quarterly vouchers =
98% redemption rate!
Determine Deploy
Objective
Measure

21.
Moneyball Marketing at Tamp Int’l Airport
Objective: Attract more direct routes to major cities
1 new non-stop air route
to major city has $154
M economic impact,
1200 jobs.

22.
Moneyball Marketing at Tamp Int’l Airport
Objective: Attract more direct routes to major cities
35% of Pinellas hotel guests rented
cars in Orlando
Tampa, St. Pete, Sarasota effective
buying rate of $96B
TPA is within 1 hour drive for 3.5
million people

23.
Moneyball Marketing at Tamp Int’l Airport
Objective: Attract more direct routes to major cities
More than 30 Tampa Bay companies do
business with Switzerland.
24 Swiss companies like Nestle SA, Credit
Suisse Group AG and Zurich Financial Services
that have subsidiaries in Tampa Bay.
Many European travelers fly to Orlando but
end up in Tampa Bay: 35 percent of Pinellas
beach-goers rented cars in Orlando.

24.
Moneyball Marketing at Tamp Int’l Airport
Tampa International Airport has secured new daily routes to
Cuba and Switzerland this year. British Airways also added two
flights a week and now flies daily.

25.
DDM: A Matter of Survival

26.
Sources
 Precision Marketing by Sandra Zoratti, Lee
Galagherhttp://precisionmarketingbook.com/

27.
Sources
 CMO Council, Why Relevance Drives Response and
Relationships; Using the power of Precision Marketing to
better engage customers, 2009.
 Michael Cannon, Nine Silver Bullets to Increase Marketing’s
Relevance, Silver Bullet Group, Walnut Creek, CA 2010
 The Economist, A Special Report on Managing Information,
February 2010.
 Jenny Davey, Every little of data helps Tesco rule retail, Sunday
Times (London), October 4, 2009
 Tampa International Airport playing its own version of
“Moneyball,” to bring in new business, Tampa Bay Times,
September 2, 2012

28.
Bernie Borges
CEO, Find and Convert
Transformational Digital Marketing
bernie@findandconvert.com
http://www.findandconvert.com
Strategy Execution Results Support