The Emperor Has No Clothes

A Fable of Big Data

Kellogg School Innovation ConferenceApril 2013

2 Real examples

4 Tips

1 Big idea

Two weavers promise an emperor a new suit of clothes that is invisible to those unfit for their positions, stupid, or incompetent….

…when the Emperor parades before his subjects in his new clothes, a child cries out, "But he isn't wearing anything at all!"

Most people pedaling big data today are more like the weavers than the child.

What is BIG

data?

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Between the birth of the world and 2003, there were five exabytes of information created.

Huffington Post April 2013

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Between the birth of the world and 2003, there were five exabytes of information created.

We [now] create five exabytes every two days

Huffington Post April 2013

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1bn

Facebook users

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400mTweets per day

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327,000tweets a second when Obama won the election.

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Big data is all about Connections

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The continuation of a trend that started with the industrial revolution.

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Agricultural

Isolated farmersLittle innovation

Social

People and ideas connected globally in an instant

Industrial

People and ideas pushed together in cities

AGE

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1 Idea

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BIG

You only need smart data

You don’t actually need

data

18You only need smart data

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Smart data: Just the right amount of data for the job

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The insight came from working with brands like these

It begun in myBasement

For the first three years we thought we needed MORE DATA

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Then we found a super smart person to help us explore if we really did

Professor Jakki Thomas

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Northwestern university statisticians helped us discover that the only metric that really mattered

was a particular advocacy algorithm.

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We found people online recommendations have a high correlation with offline sales

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We also created frameworks that could deconstruct where the advocacy came from

Rational Emotional Social

MotivationsPassionParticipation

ArchetypesTrustValue

MovementsEngagementService

Activists SalesMarketingProblems

MotiveQuest Activist Model

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2 Examples

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29http://effie.org.ua/upload/axe.pdf

1.49% 1.43%

2.78%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Verizon AT&T Sprint

WIRELESS CHURN, Q3 2009

Source: http:/ / www.strategyanalytics.com/

In 2009 Sprint was losing customers at a quicker rate than AT&T and Verizon and gaining less.

2.026

1.238

-0.077

-0.565-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

AT&T Verizon T Mobile Sprint

NET ADDS IN MILLIONS, Q3 2009

Source: http:/ / www.strategyanalytics.com/

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CHURN DRIVER:Former Sprint customer who details the reason for their departure.

ADVOCATE:Grassroots supporter of Sprint recommending the brand to others by talking about reasons to stay.

INDIVIDUAL PARTICIPANT:Individuals participating in the cellular community by conversing with others.

CELLULAR ROLES AND PARTICIPATION

Unique methodology

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Models and features where the biggest reason to leave.

7.6%

15.7%

26.9%

29.8%

51.3%

54.2%

0% 10% 20% 30% 40% 50% 60%

Speed

Price/Cost

Customer Service

Coverage

Features

Models

CARRIER SWITCHING TOPICS SENTIMENT MATRIX: 6/1/2008 – 5/31/2009

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COVERAGE

MODELS

CUSTOMER SERVICE

The most strongly impassioned conversations about carrier loyalty were about customer service, models and coverage. Service was the biggest reason to stay.

Ad

voca

te p

ass

ion

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0% 10% 20% 30% 40% 50% 60% 70% 80%

Speed

Price/Cost

Features

Coverage

Models

Customer Service

REASONS TO STAY BY CARRIER, 6/ 1/ 2009 – 1/ 31/ 2010

Topics listed in order of importance to cellular advocates, from most important to least.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Speed

Price/Cost

Features

Coverage

Models

Customer Service

REASONS TO STAY BY CARRIER, 6/ 1/ 2009 – 1/ 31/ 2010

Topics listed in order of importance to cellular advocates, from most important to least.

Topics listed in order of importance to cellular advocates from most important to least. Speed, features and price/cost are other advocacy drivers, but these are the three most important.

Sprint was disadvantaged in all three.

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So we focused on the key reason to stay.

Less carrier control

Focus area

Switching

Better modelsBetter features

Better coverage

Reasons discussed for switching

Staying

Good customer serviceGood coverageGood models

Brand advocacy

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AUTOMOTIVE

TELCO

RETAIL

FINANCIAL

TRAVEL AUTO

How do people talk about great service?

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Service satisfaction drivers.

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The solution went far beyond communications.

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2.78%

1.81%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Q3 2009 Q1 2011

SPRINT CHURN

Source: http:/ / www.strategyanalytics.com/

-0.565

0.644

1.1

-0.80

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Q3 2009 Q3 2010 Q1 2011

SPRINT NET ADDS IN MILLIONS

Source: http:/ / www.strategyanalytics.com/

Saved or new users: 2.31m1

Av. Revenue per user $582

Incremental Revenue $133.98m

39Source: Sprint Customer Service, 2/1/2010 - 9/30/2010

TRACKINGAfter the initial engagement we track progress every quarter.

-23.1%

15.0%

24.6%

19.0%

25.1%

112.7%

-27.2%

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MOTIVEQUEST MOTIVATIONS METHODOLOGYExplores the the 12 universal human motivational areas

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0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

MQ MOTIVATIONS MODEL The most successful brands align themselves clearly with human

needs.

HEROFEEL

ACCOMPLISHED“where there’s a will,

there’s a way”

MAGICIANFEEL MAGICAL“it can happen!”

OUTLAWFEEL SINFUL“rules are meant to be broken”

SAGEFEEL WISE“the truth will set you free”

INNOCENTFEEL REJUVENATED“free to be your younger yourself”

EXPLORERFEEL ADVENTUROUS“let me find my own way”

CREATORFEEL CREATIVE

“if it can be imagined, it can be created”

CAREGIVERFEEL PROTECTIVE

“love your neighbor as yourself”

RULERFEEL ELITE

“power isn’t everything, it’s the only

thing”

REGULAR GUY/GALFEEL CONNECTED“all men and women

are created equal”

JESTERFEEL FRIVOLOUS

“if I can’t dance, I don’t want to be part of your

revolution”

LOVERFEEL SENSUAL

“I only have eyes for you”

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0%

2%

4%

6%

8%

10%

12%

14%

16%

18%I feel accepted

I feel amused

I feel competitive

I feel creative

I feel rebellious

I feel happy

I feel loved

I feel smart

I feel prestigious

I feel adventurous

I feel responsible

I feel productive

TRUCK MOTIVATIONSThe category is tribal, Ram was schizophrenic

Source: Brand Specific Truck Forums, 11/1/2007 - 10/28/2008

COMPETITIVE SET MOTIVEMETER: 11/1/2007 – 10/28/2008

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%I feel accepted

I feel amused

I feel competitive

I feel creative

I feel rebellious

I feel happy

I feel loved

I feel smart

I feel prestigious

I feel adventurous

I feel responsible

I feel productive

F-150 Forums

Tundra Forums

Silverado Forums

Ram Forums

Tundra General

Silverado General

F-150 General

Ram General

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%I feel accepted

I feel amused

I feel competitive

I feel creative

I feel rebellious

I feel happy

I feel loved

I feel smart

I feel prestigious

I feel adventurous

I feel responsible

I feel productive

F-150 Forums

Tundra Forums

Silverado Forums

Ram Forums

Tundra General

Silverado General

F-150 General

Ram General

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%I feel accepted

I feel amused

I feel competitive

I feel creative

I feel rebellious

I feel happy

I feel loved

I feel smart

I feel important

I feel adventurous

I feel responsible

I feel productive

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The Ram challenge re-positioning helped Ramtop the growth chart in December 2010. Sales rose 87%.

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“A powerful global conversation has begun. Through the internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter- and getting smarter faster than most companies.”

- The Cluetrain Manifesto

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THE MARKETING WORLD IS CHANGINGThe “age of social” is redefining buying behavior

Emotional

Passion

Rational

Product

Story

Product & Services

People

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No Brand Mentions 95%

Brand Mentions 5% Brand Mentions 11%

No Brand Mentions 50%

No Brand Mentions 89%

Brand Mentions 50%

Health ConversationsFood Conversations Car Conversations

Lowest share of brand mentions. Highest share of brand members.

FOCUS BROADLYIn food 95% Don’t mention a brand.

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4 Secrets

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1. Start with the right data

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2. Sweat the Coding

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3. Create a framework

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4. Tell a story

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Quality Data

• Data templates• Automated

spam removal• De-duping

software• Tag and index

software

SmartCoding

• 10 years of history

• Catalog of 180,000 brands and concepts

• Top categories cataloged

Framework Analytics

• Advocacy• Motivations• Maven’s• Veteran’s• Value• Service• Source

analytics• Segmentation

Storytelling

• Reasons why• 30 slides• 3 Insights• Actionable

Source: MQ Analytics

4 SECRETS

Insights that are truly actionable

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Think Smart

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David RabjohnsCEOMotiveQuest@MotiveQuestdrabjohns@motivequest.comwww.motivequest.com