Data Driven Marketing Key Success Factors

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Data Driven Marketing Key Success Factors

• Al Frowiss Copley Press, Inc.
• August 2003

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Outline

• Copley Press, Inc.
• Data Driven Themes
• Business Intelligence Success Factors
• Pushing Evolution along 5 paths
• Matching Data Applications K.I.S.S.
• Matching Users Technology
• Data Examples

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Copley Press, Inc.

• Corporate IS Commitment
• Marketing Technologies
• Business Intelligence Tools
• Data Warehouse Infrastructure
• Business Systems Conversions

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Data Driven Themes

• Business Intelligence (BI)
• Knowledge Management (KM)
• Customer Relationship Marketing (CRM)
• Decision Support Systems (DSS)
• Database Marketing (DBM)
• Data-Driven Marketing

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Business Intelligence Process
Data
Database Access
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Business Intelligence Drivers

• Understand Consumers Market
• Understand Products Services
• Understand Sales Channels Competition
• Transition from Reactive to Proactive
• Leverage Information to be Smarter

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Leveraging What We Know

• Marketing Databases Building/Using
• Business Systems, Technology
• Business Process Modeling, Repurposing Data
• Information enabling the enterprise
• KPIs, Success Measures, Benchmarks

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BI Initiatives - Success Factors

• Database
• Tools End User
• Communication
• Measurement
• Organization
• Evolution of each aspect over time

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Business Intelligence Development Curve 1
Action
Database
Knowledge
Relationship
Information
Data
Customer View
No data
Consolidated Data
Disjointed data
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Selling the Promise of BI

• Drink the Kool-Aid
• Show them their own data
• Making them believe their own data
• Demonstrating relationship between business
  processes and data capture
• Impact of common definitions, common practices
  Conversely, dirty data, inconsistent practices,
  compartmentalized views

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Knowing Their Data

• Circulation Retention Elements
• Starts, Stops, Reason
• Time, Geography
• Service Type, Term Length, Source
• Data Validation
• Codes Descriptions
• Organization Relationships, Counts

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Business Rules

• Simple
• Codes with corresponding description tables
  (Consistency between Source and BI app)
• Inferred
• Combination of field values determine context
  (Trans Code Reason Code)
• Derived
• Application of Time based or Calculation Logic to
  a set of transactions (Retention)

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BI Tools Which tools for us?

• AnalytiX
• MS Access/Excel
• IQUBE/NovaView
• Dimensional Insight Diver Suite
• Business Objects
• Crystal Reports
• ProClarity

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Business Intelligence Development Curve 2
Integrated toolset
Toolset
Campaign mgmt.
Full support of Rel. Mktg.
Analysis, mining and modeling
Data discovery and exploration
Dynamic Mgmt and controls
No tools
Basic models
Ad hoc usage
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Retention Applications

• Objective
• Comparison of Start Sources
• Comparison of Service Types/Terms
• Business Usage
• Commission Planning/Control
• Budgeting/Forecasting
• Visualizing Business Processes

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Retention by Sales Source
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Common Tools Terminology
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Business Intelligence Development Curve 4
Integrated comm. By segment, Cust-driven
Communication
Loyalty programs, statements, POS
Relship optimization
Direct response
General Adv. and promos
No targeted Communications
Revenue Optimization
Response Optimization
Broadcast Messages
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Weeks Retained Circ Days
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Cost Per Circulation Day
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Business Intelligence Development Curve 3
Lifetime potential value
Measurement
Relationship profitability
Rel. Mktg Resource Allocation
Product revenue and balances
Response
No Tracking
Profitability models
Std reports and metrics
Ad Hoc results tracking
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Classified Advertisers Top ZIPs
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Merchandise Category by Class
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Classified Advertiser Analysis

• Summary Statistics Entire Database
• 37,177 Transient Advertisers
• 64 advertisers gt 500
• 337 advertisers gt 250
• 1,567 advertisers gt 100

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Business Intelligence Development Curve 5
Integrated Orgl focus and approach
Organization
Growing importance
Culture of Relship Mktg
One area of business
Isolated pockets
No awareness
Corporate strategy, High skills and processes
Basic skills and processes
Early trials
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Managing the Business

• Accessibility Enabled to answer questions
• Comparability Identify business patterns
• Standardized Views Baseline, Benchmarks
• Analysis Account Management
• Planning Goal Setting Account Plans

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Business Intelligence - Goals

• Improved Management Reporting
• Electronic Information Distribution
• Common Terminology and Metrics
• Enable Decision Support Planning
• Gain Efficiency and Consistency
• Must be Strategic, Scalable, Enterprise-wide

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Questions Discussion