Mass marketing is dead Pragmatic Data Science to the Rescue. May 16, 2013

Transcription

1 Mass marketing is dead Pragmatic Data Science to the Rescue May 16, 2013

2 AgilOne Manifesto Mass marketing doesn't work anymore: average person spends 18% of the day answering and frankly is fed-up, longing for relevancy and personal relationships. As a brand, you may have more lapsed customers than active customers and experience high unsubscribe rates and low click rates. Data science can help restore the old-fashioned customer relationship of the corner store. 2

3 State of the union 6% Batch and Blast Segment lists and vary content Rules to automate s Use web behavior to personalize s 19% 40% 35% Source: Silverpop DMU 2013 San Francisco Poll 3 17 May 2013

4 More data. 80% Don t use behavioral data 34% Willingness to try new things 44% Not enough people Source: Silverpop DMU 2013 San Francisco Poll 4 17 May 2013

5 You are one-click away from Deleted Unsubscribed Bulk listed 5

6 I want to be Relevant For this, I need to match content to customer interests and context Respectful get the right frequency for each contact Profitable offer the right offer to each person 6

7 Amazing results happen when you can predict customer behavior interests, motivators, future behavior, personalities 7

8 Predictive Data Science applied to marketing Personality Customers 1. Value/SOW 2. Purchase Behavior 3. Trend 4. Product usage 5. Channel usage Clusters 1. Need 2. Purchase behavior 3. Channel 4. Brand Motivators Factors 1. Response 2. Trend 3. Product Interests Future Recommendations 1. Keywords 2. Products 3. Categories Predicting action 1. Purchase 2. Open/click 3. Response to offer 4. Churn

9 Don t take our word for it An Online Pet Store 70% of first time customers don t ever come back. This is actually the biggest cost of acquisition. Through surgical discounts for newbies Gained 18% more repeat buyers 5/17/2013 AGILONE CONFIDENTIAL

10 Don t take our word for it A Jeans Manufacturer Older generation, young school kids, urban professionals. all buy jeans, but not the same kind. Customer clusters are meaningful personas you can talk to 7% more revenues using product clusters 20% reactivation of inactive customers 5/17/2013 AGILONE CONFIDENTIAL

11 Don t take our word for it Online and Brick & Mortar Retailer Hardcore climbers and Snowboarders don t browse or buy similar products, how can we not batch-n-blast? Personalized product content in s Increased revenues 122% annually Utilized both purchases and web browsing behavior 5/17/2013 AGILONE CONFIDENTIAL

12 Start small and succeed big AgilOne campaign ROI engagement and revenues AgilOne Digital and web campaign ROI Digital engagement and revenues AgilOne Enterprise Multi-channel campaign ROI Multi-channel engagement and revenues 5/17/2013 AGILONE CONFIDENTIAL

13 The real cost of marketing Stay Subscribed 100 customers with same Lifetime Value $100 Unsubscribed $40 40% value lost and you don t want this.. 13

14 Simple calculation 1 Million Subscribers at the beginning of the year 1 a week for everyone Unsubscribe rate of 0.5% per sent Opt-out contacts lose $40 of value over next 12 months 23% of the contact file opted-out $920K of margin lost over next 12 months

15 I want to be Relevant For this, I need to match content to customer interests and context Respectful get the right frequency for each contact Profitable offer the right offer to each person 15

16 Don t take our word for it An Online Discount Store By optimizing frequency Reduced unsubscribe rates 30% Increased revenues 20% in 3 months Here is how we do it 5/17/2013 AGILONE CONFIDENTIAL

17 Enthusiast Contact Info First Name: Donna Last Name: Jones Predicted Propensity to Open or Click: 95% Pet Type Dog, Cat, Equine Opt-In Details Date: 12/4/2011 Source: Listrak Segment description The enthusiasts are your jewels, your fans, your ambassadors. Segment Definition Opt-in contacts with tenure greater than 60 days, with at least on received in last 60 days, and predictive engagement decile is 1 Activity Over Lifetime Number of s Received: 58 Number of Opens: 57 Number of Clicks: 21

18 Enthusiast: best practices Why they matter The outstanding engagement of the enthusiast customers is an opportunity to grow a deep relationship with those advocates. While they make a small portion of your file (less than 3%), they represent a large share of your opens, clicks (more than 20% of clicks came from this segment). Recommended Actions reasonably high contact frequency understand who they are, where they come from, and what they like incite them to share on social channels (Facebook fan page, social contests, etc..) ask them to rate products or leave reviews after they bought have them to participate in surveys

19 Sleepy Segment description The sleepy are somehow active contacts with slow engagement. Segment Definition Opt-in contacts with tenure greater than 60 days, and at least one received in the last 60 days, and predicted engagement decile between 9 and 10 Why they matter While the sleepy contacts are technically active, they are very little engaged and at risk of falling into the phantom segment. It is important to identify valuable customers within this segment and have some targeted programs to move them up the engagement ladder. Recommended Actions lower contact frequency targeted re-engagement programs

20 Segments you can use data science in 5 minutes 1. Signup on Agilone.com 2. Automatically syncs data w/ Silverpop 3. Segments are created 4. Use AgilOne portal to track progress 5. Use SilverPOP to leverage segments for s 20

21 Recent coverage of AgilOne on CNBC on this topic, check out the comments.. Marketers Seek Fix as Overwhelms Consumers By Christina Medici Scolaro Big Data Download Fri, May 10, :04 PM EDT 21

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