Using Data-Driven Decisions to Enhance Cross-Channel Marketing
As digital communication evolves so does the need to reassess how online and offline data work to achieve long-and-short-term goals. Hear tips and tactics on how to strategize and execute a cross-channel campaign.
* Kevin Akerman, Director, Global Product Development, Experian Marketing Services
Using Data-Driven Decisions to Enhance Cross-Channel Marketing - Experian Marketing
1. Online Marketing Summit
San Francisco| August, 2010
Using Data-Driven decisions
to Enhance Cross-Channel
Marketing:
Kevin Akerman
Sr. Director
Experian Marketing Services
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2. Marketing in the digital world
Today we’ll cover how today’s consumers:
Interact with digital media
Data availability
Emerging challenges
Best practices – how you can reach them
with the right message
3. The growing U.S. mobile marketing market
Mobile facts
• 250 million active mobile phone subscribers
• 90% of active mobile phones capable of text
• 155 million of these subscribers use text
► 71% consumers 13-17 text weekly
► 76% consumers 18-24 text weekly
► 65% consumers 25-34 text weekly
► 52% consumers 35-44 text weekly
► 42% consumers 45-54 text weekly
• 40% of text messages are sent by those ages 30 and up
• $75,000 Average annual income of text users ages 30 and up
• For consumers under 34, Cell phone is viewed as more
important than TV, land line phones, and iPods
► Consumers 34-55 find cell phone to be equally as
important as the computer
MMA 2007 A&U data
2006 CTIA – The Wireless Association
4. Spending for mobile advertising growing
U.S. mobile advertising spending
($ millions)
Source: eMarketer, February 2009
5. Media consumption preferences
Internet is the most Media they can’t live without, by age
important digital media
channel
Email is the most
preferred messaging
channel across all age
groups
Older groups continue
to look to traditional
media (television,
books) while young
consumers rely on their
mobile phones
6. Channel preferences by age group
Email is top messaging channel across all ages – but there is a difference
by age group:
Young adults use all channels, with TXT MSG being the most popular
Adults aged 50+ clearly prefer email messaging
In 2009, emails promoting in-store visits increased by 50 percent YOY
7. Consumer attitudes on online shopping
Online shopping is
now a mainstream Attitudes towards online shopping and the Internet, by age
activity for adults
ages 25-49
This age group is
most comfortable
shopping online
and indicate that
the Internet has
changed the way
they shop
Interestingly, younger
consumers appreciate
emails about new products
and services more than older consumers
8. Direct mail volume changes
Most companies still get true
gains from direct mail Change in volumes by mail class
(Indicated by the United States Postal Service)
Understanding offline trends,
utilizing data acquisition/
cleansing/storage best
practices can prove valuable for
even the most digitally attuned
businesses
USPS study indicates consumers
who received a catalog spent
28 percent more on the
retailer’s site than those who
did not receive a catalog
9. There is a lot of data available….
62 million consumers with strong 7.9 million international travelers 5.1 million young consumers
green behaviors between 18-20 years old
8 million golfers
72,500 weekly new 18.8 million gardeners
homeowners 14.4 million do-it-yourselfers
21 million charitable
89.9 million married donors
individuals
17 million weight-
39.9 million blue-collar conscious consumers
working adults
10.3 million low-priced
16.7 million Irish adults
235 million consumers woman’s apparel
113 million households transactions
999,200 teachers /
educators 27 million retirees
32 million email addresses 5.5 million graduate
students
58.8 million homeowners
360,000 average new
34 million consumer that do not parents each month
think or behave green 26.4 million households with income
between $75,000 and $99,999
40 million consumers with little or
no credit
10. Respecting the individual - Permission-based marketing
• Internet
– Able to target, but need to be aware of the “big
brother” feeling
• Email
– Permission based
– opt in / opt out – what is the cost of opt out?
• Mobile
– Permission based
– Opt in / opt out
11. Why data collected offline still matters
• Offline data is very predictive when used in both offline marketing
and online for email and digital targeting
• Physical address is key to accurately assigning demographic and
geo-summarized data attributes that fuel targeting and
segmentation
• Long-time history with our data sources – data inconsistencies and
anomalies are quickly recognized during the compilation process
• A consumer’s notice and choice is easily traced back to source,
date, and time it was given
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12. Data collected offline is powerful
Consumer research shows that consumers are 423% more likely to purchase a digital
camera in the first six months of having a baby
Consumer goes online and researches digital
cameras
Consumer first appears Consumer appears Consumer goes online OR to a
on Experian’s pre-natal file on Experian’s physical store and buys a digital
New Parent List camera
JAN FEB MAR APRIL MAY JUN JUL AUG SEPT
Consumer has a baby
Offline data can be an early
indicator of future online
behaviors
16. Targeting levels – power of the address
You can establish your preferred view which can be adjusted based on
regulations, targeting precision needs and marketing channel
Consumer Household ZIP+4™ ZIP® Census
Level Level Level Level Level
Zip+4
Starting at the physical address level ensures all the demographic and
geo-based data in accurately reflected in the ConsumerViewSM
17. Key to leveraging data is to understand the
Targeting Levels available to you …
Targeting Levels Unique targets
Mosaic ®
60
Segments
ZIP Code
TM
43,000
ZIP + 4
TM
43,000,000
Addressable 120,000,000
Household
units
Individual 295,000,000
18. Business Problem: partial information is being collected
across the various customer touch-points
Issue 1: causes fragmented views of customers and prospects
Data Collection Points
Same customer may exist multiple
times customer/ prospect databases
Different customers might be part of
the same household
Data availability for targeting can
vary based on level of identification
collected (geo-level, household,
individual, etc…)
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19. Cross Media Linkage
Gives you the ability to identify and link partial customer data
and reconcile your customer and prospect databases
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20. Cross Media Linkage
Linking partial information together and delivering back new data views
for targeting, and additional channels to market to that consumer based
on their preference and your ROI
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21. Business Problem: A marketer only captures a consumer’s mobile number
at point of sale, but no other data is available on who that customer is or
what would motivate that customer to respond to future offers.
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22. The power of enriching your data view
Married
She is a frequent buyer
Ages 30-35 of high-end women’s
New homeowners apparel spending over
Income: > $250,000 $3,000 in the past 12
months
Los Angeles, CA
They spent $2,000 on
Green consumers A 360° view
BASE DEMOS
home improvement
products in past 4 months of consumers
powered by
Married Despite a high household transactional &
Ages 30-35 income, she frequently buys behavioral data
New homeowners low-priced woman’s apparel
Income: > $250,000 They spent over $4,000 on
home furnishings in the past
Los Angeles, CA
12 months
Green consumers
23. Business problem: If you only have a consumer/ customer’s name,
address, phone, your marketing options are limited to channels that
have a lower ROI on average.
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24. Email marketing
Data, segmentation and targeting analytics are greatly
under-utilized in email marketing today
Channel concerns:
easy for consumers to opt-out
email clutter is getting worse
email filters are getting better
Segmentation Techniques that
Marketers Worldwide Plan to Use in
Upcoming E-Mail Marketing
Campaigns:
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25. Modeling can increase email performance metrics
Problem: Wanted to better target customers by offering the products that
each segment was most likely to buy
Solution: Used in-house collected data and appended Experian
ConsumerView consumer demographic data to model which products each
segment was most interested in, then included these products in emails
Result: Anticipated customer behaviors and buying trends, cross-sold more
effectively, developed new products and services and modified customer
contact strategies
In tests, modeled dynamic content lifted transactions by 8%
Emails with modeled dynamic content had higher initial total opens and
clicks than standard emails
26. Leveraging the Internet to acquire customers
Visitors coming directly to your Web site
Unknown Identification information Matching
available scheme
Browsers
ZIP CodeTM
IP address match
Visitors
Limited personal
information (name, Individual HH or
Leads ZIP CodeTM match
address, phone,
email)
Customers Individual or
Personal and account
information (name, account match
Known address, phone, email,
account number)
The more information obtained, the more precise the ability to serve with relevance
27. Real-time marketing for customers: Providing
relevant offers, messages, and content at the customer level
Customer visits Citi website
Jane Doe
123 Broad St
New York, NY 12345 We know you are a
Acct#: 1234567 young adult who has an
existing card
relationship with us and
enjoys traveling. We
display offers and
creative's that are
relevant to her
Real Time Marketing
Enhance Act
Data Append & Modeling & Scoring
Enhancement Client models /
Demographics segmentations
Life events Experian models /
Behavioral data segmentations
Individual data Offer / Content
Household data recommendation
Geographic data
28. Real-time marketing
Real-time marketing can deliver “real time” recommendations for relevant
offers and messages that encourage visitors to convert
Query:
Who am I ?
IP# 66.249.67.226
Real-time marketing
Recommendation on relevant
content and offer to serve Under 10 m/s
leveraging: response time
IP Address: Member segments
66.249.67.226 Product propensities
MOSAIC® group
TrueTouchSM touch-point
Other custom segments and
data
29. Using segmentation tools/data
Mosaic Segmentation
• Classifies all 113M consumer
households into one of 60 60 Mosaic
lifestyle types, aggregated Types
into 12 over-arching groups Zip4
Level
• Provides complete
understanding of the
demographic, socio-economic,
lifestyle, behaviours and
cultural diversity of all US
consumers IP Address
Zip4
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31. Using segmentation tools/data
Their favorite leisure activities include:
attending live theatre and operas
frequenting restaurants and antique shows
visiting gambling casinos.
their preferred sports are golfing and boating.
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32. Mosaic® and discretionary spend Lifestyle segmentation
No Kids Mix of kids ages Toddlers/ Preschool kids
58.6 million households 29.8 million households 19.1 million households
Discretionary Avg. $15,452 Discretionary Avg. $15,548 Discretionary Avg. $11,596
Mosaic® Lifestyle Segmentation can help marketers drill down well beyond the demos
to understand the perspectives, priorities and influencing factors within households
that have a dominant affinity for travel and entertainment activities.
Professional Urbanites Dream Weavers Prime Middle America
2.6 million households 2.3 households 4.1 households
Discretionary Avg. $21,000 Discretionary Avg. $34,056 Discretionary Avg. $14,987
They might have a fashionable They travel often and look to relax in They are families who manage their incomes
lifestyle that includes their travel beach and tropical getaways that help to afford vacations to fit their entire
and entertainment budget. Gain them enjoy activities such as sailing, household. They prefer the advantages that a
their attention by learning more scuba diving and pure beach lounging cruise can offer. Providing everything from
about which activities they prioritize young children activities, entertaining.
in their lives to get their attention.
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34. Summary
• Marketers are moving to the
digital world quickly – Growth is
phenomenal
• The competition is moving to the
digital world – Marketing dollars
are pouring in
• We can help marketers be
successful by leveraging our
key assets
– Data
– Analytics
– Knowledge
35. Thank You
Kevin Akerman
• Kevin.Akerman@experian.com
• 714-830-5981
Website
experian.com/marketingservices
Twitter
twitter.com/experianmkt
Facebook
facebook.com/experianmarketingservices
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36. Thank You
Visit
www.onlinemarketingsummit.com
for more information
Follow us @OMSummit
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