AUDIENCE MANAGEMENT PETER VANDRE, MERKLE VP, DIGITAL ANALYTICS RICK HEFFERNAN, TRAVELERS 2VP DIGITAL MARKETING

Transcription

1 AUDIENCE MANAGEMENT PETER VANDRE, MERKLE VP, DIGITAL ANALYTICS RICK HEFFERNAN, TRAVELERS 2VP DIGITAL MARKETING

2 Audience Management Audience management is the discipline of identifying, sizing, and tracking audiences with the purpose of driving higher customer value Audience Management Platform Data Identity Management Consumer Privacy & Compliance Platform Enablers Platform Execution

3 Audience Management is the bridge between identity management and media and channel optimization Identity Management Audience Management Media or Channel Optimization Name: Tom Malthus Device Address: 1001 Semblance Dr. DOB: Alias: MarketableDig IP: Cookie: 49526F636B Phone: Segmentation Behavioral Triggers Models Contact Management Time Product Personalization Message, Offer Treatment 3

4 Audience management framework should be expansive Addressability at Scale Unqualified prospects & waste Unknown High-value Low-value Upper funnel Mid funnel Lower funnel Customer (New, Active, Lapsed) Upper thru lower funnel Known and anonymous Segment and individual Prospect to customer Digital and offline channels +400% but rollout should be pragmatic and systematic 4

5 Components to effective audience management Segmentation How we understand customers and design experiences Models Who to target and how to optimize message components Behavioral Triggers Individual consumer actions that trigger a response Contact Management Optimizing connections across touch points 5

6 How audience management impacts the customer journey Online display Creative: Suburban Gardner segment Contact Mgt: 10 per week Targeting: Lapsed buyer segment direct match, Programmatic Model Click to landing page Personalized Header: Loyalty segment Creative/offer Personalization engine, Gardner segment, Preferred store model Product: Product recommender model Search for new mower Trigger Message: Suburban Gardner segment, Google, RLSA segment 25 Targeting: Google RLSA Message: Behavioral Trigger Contact Mgt: Other contact suppression 6

7 Segmentation Enterprise Segment Manage, plan around, and strategize on consumers Determine groups of consumers that align with corporate strategy Strategic targeting Corporate branding and strategy Product development Mass market promotions Micro Segment Smaller groups of individuals Examples are lifecycle and value segmentation Acquisition, retention, cross sell program Channel strategy, program and offer development Individual The most granular targetable entity This is the last mile of deciding who to target and what to say Models for targeting, personalization, and next best action Behavioral triggers 7

8 Segmentation is addressable across anonymous and known media and channel interactions Known Consumer Interactions Anonymous Consumer Interactions Segmentation Retrofitting existing segmentation rarely works Identifiable Audience Data Built on sample audience and research data But can be mapped across entire known and anonymous individuals universe Anonymous Audience Data Design based on data you actually have (online and offline) not based on what you wish you had Research Data 8

9 Audience Sizing and Linking to Opportunity Income Geo Age Credit Social ID Name / Address Cookie ID Merkle Brilig Comscore Strategy/ Planning Merkle DataSouce TM Optimized Data Content Social Networks DSPs Ad Networks Search Engines Other Publishers Audience Platforms Attribution/ Measurement Tracking Optimization Approach Tactics Target Audience Define the Target Audience Map and Size Audience Map target to Audience Platforms Analyze current Media Plan vs. Competitors Create new Addressable Plan Plan Performance Simulations Final Output and Review 40 MM HH s 70 MM Individuals Simulation Prospecting Remarketing Population Scale Targeted Pop CPM Budget Apps Policies Product Mix Programmatic 73,100,000 30% 21,930,000 $2.00 $2,280,720 34,991 1,671 51% $1,365 $16,742,863 Guaranteed Direct 47,300,000 30% 14,190,000 $2.00 $1,475,760 25, % $1,575 $6,380,407 PS-Branded 58,050,000 20% 11,610,000 $2.00 $1,207,440 20, % $3,350 $5,015,497 Ps-Unbranded 21,500,000 20% 4,300,000 $2.00 $447,200 7, % $2,868 $1,218,449 Affiliates 15,050,000 20% 3,010,000 $2.00 $313,040 5, % $2,531 $1,381,351 Total 215,000,000 55,040,000 $2.00 $5,724,160 93,689 3, % $1,763 $30,738,567 Programmatic 73,100,000 40% 29,240,000 $2,50 $3,801,200 41,989 2,005 55% $1,896 $20,091,436 Guaranteed Direct 47,300,000 40% 18,920,000 $2.50 $2,459,600 30,188 1,124 31% $2,188 $7,656,488 PS-Branded 58,050,000 20% 11,610,000 $2.00 $1,207,440 20, % $3,350 $5,015,497 Ps-Unbranded 21,500,000 10% 2,150,000 $3.00 $335,400 3, % $4,302 $609,224 Affiliates 15,050,000 10% 1,505,000 $3.00 $234,780 2, % $3,796 $690,676 Total 215,000,000 63,425,000 $2.44 $8,038,420 99,239 3, % $2,215 $34,063,321 Programmatic 73,100,000 20% 14,620,000 $2.00 $1,520,480 25,919 1,238 58% $1,229 $12,402 CPA Value Current plan performance Media Saturation Merkle Client benchmarks Year 1 Year 2 Year 3 Years 4+5 $39MM $104MM $170MM $382MM NPV of Revenue Impact 1%-3% increase in customer acquisition over 5 years Increased response/conversion from digital media efficiency by connecting Anonymous Data to CRM data for better targeting, measurement and segmentation Addressable Increased effectiveness of remarketing and personalization (offer/package) in Search, Media Display, Site and $15MM $43MM $73MM $206MM Roughly 1bp (~31k subs) reduction Churn YoY years in Voluntary over next 5 Channel Combine Customer service, Billing contacts with customer data to improve churn rates Optimization $24MM $61MM $97MM $176MM Total Guaranteed Direct 47,300,000 20% 9,460,000 $2.00 $983,840 16, % $1,575 $4,253,604 PS-Branded 58,050,000 10% 5,805,000 $2.00 $603,720 10, % $3,350 $2,507,748 Ps-Unbranded 21,500,000 5% 1,075,000 $2.00 $111,800 1, % $2,868 $304,612 Affiliates 15,050,000 10% 1,505,000 $3.00 $234,780 2, % $3,796 $690,676 Total 215,000,000 32,465,000 $2.05 $3,454,620 57,555 2, % $1,612 $20,158,762 Business assumptions Average customer value Use Connected data to understand/predict/model NPS results across subscriber base and target subscribers for Promoter maintenance or Detractor intervention strategies

10 Travelers Case Study Rick Heffernan

11 Background Travelers Insurance Travelers is the 5 th largest U.S. Property & Casualty Insurer with more than 30,000 employees and had $26 billion in revenue in Traditionally operated through independent agent and broker distribution channel Heavily invested in developing and rapidly expanding the direct to consumer channel with a primary focus on the Preferred market. Strong belief and commitment towards leveraging the power and efficiency of digital media and channels. Recently launched new product that appeals to a broader customer segment.

12 Segmentation and Targeting are Crucial to Attract the Right Audience and Ultimately Lead Them Down a Path to Conversion Upper funnel Audience: New / Non-Visitors Create awareness and drive Interest/consideration Mid funnel Lower funnel Audience: Customer Look-A-Likes Cultivate Interest and create engagement Audience: Remarketing Capture in-market prospects and drive to action, reconnect with shoppers who have already engaged but did not convert 12

13 How Travelers does audience management Digital Attribution Platform Transaction Data Travelers CRM (Foundational Marketing Platform) Creating golden customer record of engagement across online and offline interactions Annonymized Customer Data & Offline Transaction Data Audience Creation, Syndication & Management DMP Media Analytics Lab Digital Media Execution Segment building, audience modeling & ad hoc analysis Segments & Rules Cookie & Customer Data DSP spmd Media Execution Online Display Mobile Paid Search Online Video Paid Social 13

14 Highly Targeted Segment Driven Approach to Drive Scale in Mid and Lower Funnel 2014 program dimensions (examples only) Geography Contact Frequency Customer Value Behavioral Triggers Mid funnel Programmatic Prospecting Custom models with 1 st and 3 rd party data Private Marketplaces Lower funnel Segmented site remarketing Search remarketing Custom audiences for x-sell 14

15 Key milestones and challenges Sponsorship required at CMO level to drive investments and strategy Major investments in technology and analytics Challenges of optimizing and driving down costs Organizational and agency alignment at each major step Technology Assessment and Business Case Logfile Integration May 2012 with DSP Oct 2013 Major product redevelopment and re-launch Jan 2014 Business case approved for expansion of AAS digital program May 2012 DSP Consolidation Dec 2012 Digital Attribution launched Aug 2013 Foundational CRM Marketing Platform go live Mar

16 Our approach is driving strong results Acquisition costs have dropped significantly: 75% 60+% We are driving more and more scale: 185% YOY new lead acquisition costs decreased by 75% Cost per sale was down by over 60% Over same period, sales were up over 185% 16

17 Questions? Peter Vandre, Rick Heffernan,

18 160% 150% 140% 130% 120% 110% 100% 90% 100% 135% 135% 43,982135% 135% 39, Merkle Inc. All Rights Reserved. Confidential 19 41,264 Baseline Scenario 1 Scenario 2 Scenario 3 Scenario 4 Budget New Customers , Scenario Scenario Budget Brand Print Display Paid Online TV Search Lead Gen Baseline 2011 budget 100% 100% 100% 100% 100% 100% Scenario budget 135% 151% 151% 109% 122% 136% Scenario Maximize 135% 86% 26% 270% 236% 125% Portfolio Value Segment 1 215% 95% 18% 450% 280% 138% Segment 2 154% 92% 20% 395% 210% 153% Segment 3 136% 60% 40% 280% 315% 127% Segment 4 88% 66% 25% 120% 180% 114% Segment 5 75% 70% 24% 120% 115% 116% 2013 Merkle Inc. All Rights Reserved. Confidential 22 Segment 1 Segment 2 Segment Merkle Inc. All Rights Reserved. Confidential 27 Segment 4 Segment Position: Company has a great selection, you can find whatever you want! Highly likely to reactivate naturally Test Trigger Program with Shortened Inactive Window (e.g. 20-weeks) v. no contact control Test reactivation Audience model v. no Segment contact control Creative Cell Contact Notes Test recognition based program Top Model Segment 1 V1 1 able: Multi Multi cell includes 2 s + 1 Position: Company has something for you! DM Highly influenced to purchase items shown on air. 2 able: EM 2 EM only Test Upcoming Shows communications, highlight popular shows 3 able: Holdout No contact Test Reactivation Model Depth of file to maximize ROI. 4 DM Only 1 DM only Communicate based on product affinities 5 DM Holdout No contact Position: It s about convenience. Shop Segment when you 2 want!. V2 6 able: Multi Optional High penetration of Internet and Multi-Channel customers. 7 able: EM Optional Test penetration into model with lower cost e-campaigns. 8 able: Holdout Optional Test multi-touch campaigns 9 DM Only Test personalized URL s to get click through activity 10 DM Holdout V3 11 able: Multi 12 able: EM 13 DM Only 2013 Merkle Inc. All Rights Reserved. Confidential 28 Enterprise Segmentation Should Be Strategic Tactical Based on research Rich insight into consumers Informs strategy Based on behavior Actionable; tied to database Informs tactics Strategic Planning Value Proposition Program Planning Addressable Media Media Budget Allocation Market Understanding Website Personalization Direct Marketing Testing Strategic Planning Value Proposition Program Planning Addressable Media Strategic Planning Value Proposition Program Planning Addressable Media Strategic Planning Value Proposition Program Planning Addressable Media Strategic Planning Value Proposition Program Planning Addressable Media % Budget to 2011 Budget Comparison Total Policies Media budget allocation by segment to maximize return based on Media Mix Optimization Segment strategy built around the segment value proposition; detailed media mix, product differentiators, brand attributes, low price vs. value, channel objectives Channel (website) personalization by predicting segment based on online characteristics Seg Initial Recommendations Direct mail and testing by segment Rich Actionable 18