Chapter 12: Analytics in Action Disclaimer: All logos, photos, etc. used in this presentation are the property of their respective copyright owners and are used here for educational purposes only Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.1www.StephanSorger.com Outline/ Learning Objectives TopicDescription RapidLearn rapid decision tools, such as Pareto analysis Pivot TablesDescribe how to create and work with pivot tables CommunicationsIncrease communications effectiveness with data Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.2www.StephanSorger.com Rapid Decision Models: Pareto Prioritization Customer Data, Original Customer Data, Sorted by Dependent Variable NameSalesDemographicsGeographyPsychographics Gary Gamma$1,300Age 24GalvestonGoose lover Alex Alpha$1,100Age 25AtlantaAardvark lover Debbie Delta$300Age 35DenverDog lover Edie Epsilon$200Age 38El PasoEgret lover Betty Beta$100Age 44BostonBat lover Total Sales$3,000 NameSalesDemographicsGeographyPsychographics Alex Alpha$1,100Age 25AtlantaAardvark lover Betty Beta$100Age 44BostonBat lover Debbie Delta$300Age 35DenverDog lover Edie Epsilon$200Age 38El PasoEgret lover Gary Gamma$1,300Age 24GalvestonGoose lover Total Sales$3,000 Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.3www.StephanSorger.com Product A Service C Product B Rapid Decision Models: Cross-Sales Model Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.4www.StephanSorger.com Cross-Sales Model Related Product and Service Sales Data, Original Related Product and Service Sales Data, Sorted by Dependent Variable 50% of Product B sales come from cross-sales with A; Service C only sells when customers purchase A and B Top customers consider B and C as essential related products NameSalesSales, ASales, BSales, C (service) Alex Alpha$1,100$600$300$200 Betty Beta$100$0$100$0 Debbie Delta$300$0$300$0 Edie Epsilon$200$0$200$0 Gary Gamma$1,300$800$300$200 NameSalesSales, ASales, BSales, C (service) Gary Gamma$1,300$800$300$200 Alex Alpha$1,100$600$300$200 Debbie Delta$300$0$300$0 Betty Beta$100$0$100$0 Edie Epsilon$200$0$200$0 Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.5www.StephanSorger.com Supplier Selection Framework PR Agency 2 PR Agency 1 PR Agency 3 Company A Typical scenario: Must select from one of three public relations (PR) agencies Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.6www.StephanSorger.com Supplier Selection Framework Scoring: Scale of 1 to 10; 1 = Poor; 10 = Outstanding Straight Sum: Add scores to find total; Highest score gets selected Modified Sum: Disqualify supplier if they fail any one category Weighted Sum: Adjust significance of certain criteria Selection CriteriaPR Agency 1PR Agency 2PR Agency 3 Industry Contacts8: big Rolodex6: out of date8: big Rolodex Social Media Expertise8: strong focus5: not a focus5: not a focus Article Opportunities5: not a focus5: not a focus8: strong focus Award Opportunities5: not a focus8: strong focus5: few awards Crisis Management8: fast response3: no focus5: some focus Cost Structure1: $$$$$3: $$$7: $$ Total Scores Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.7www.StephanSorger.com Metrics in Marketing Campaigns Sample Bold Metrics and Campaigns Sample Bold MetricsPotential Campaigns 33 Million: Americans living aloneCampaigns for single-serving meals 70% of people 12 and older who abuseCampaigns with anti-drug message prescription drugs say they get them from a friend or relative 49%: Dog napping increase: Campaigns for dog security 53%: Percentage of overweight dogsCampaigns for diet dog food 13.9 hours/week: Time spent on tabletsCampaigns for tablet apps 61%: Non-essentials deliveredCampaigns for spam filters 3 Billion/mo: Hours of YouTube watchedCampaigns to promote video usage Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.8www.StephanSorger.com 80% of People over Age 45 Consider Changing Careers But Only 6% Actually Do Metrics in Marketing Campaigns Example of Juxtaposition Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.9www.StephanSorger.com Pivot Tables Original Data Set NameSalesDate of SaleProductChannel Alex Alpha$1,100JanuaryProduct AStore Betty Beta$100FebruaryProduct BInternet Debbie Delta$300FebruaryProduct B Store Edie Epsilon$200JanuaryProduct B Internet Gary Gamma$1,300JanuaryProduct A Store Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.10www.StephanSorger.com Pivot Tables Excel HomeInsert Pivot Table ABCDEFG Create Pivot Table Select a table or range: Table Range: Sheet1:$A$1:$E$6 Use an external data source New Worksheet Existing Worksheet Choose where you want the Pivot Table report Choose the data set to analyze OK Launching Pivot Table in Excel Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.11www.StephanSorger.com Pivot Tables Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel Excels Pivot Table Field List, Based on Original Input Data Set; Select Sales and Product to get basic table of sales by product Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.12www.StephanSorger.com Pivot Tables Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Row Labels Product A Product B Grand Total ProductSum of Sales Pivot Tables: Basic Report: Sales by Product; Select Date to see how sales vary over time Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.13www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Row Labels Product A Product B Grand Total ProductSum of Sales Date January February x Pivot Tables: Sales by Product and Date Select Channel to see how sales vary with type of Distribution Channel (store) Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.14www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Row Labels Product A Grand Total ProductSum of Sales Date January February x 9 12 Retail Store Product B January Internet Retail Store x Pivot Tables: Sales by Product, Date, and Channel (Added Date, and then Channel) What if we had added Channel, and then Date? Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.15www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Row Labels Product A Grand Total ProductSum of Sales Date January February x 9 12 Retail Store Product B January Internet February Retail Store x Pivot Tables: Sales by Product, Date, and Channel (Added Channel, and then Date) Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.16www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Row Labels Product A Grand Total ProductSum of Sales Date January February x 9 12 Product B January Add to Report Filter Adding Field to Report Filter Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.17www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Product Date Channel Sum of Sales Channel (All) (All) Internet Retail Store OK x x Selecting Reports using Report Filter Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.18www.StephanSorger.com Pivot Table Pivot Table Field List Row Labels Choose fields to add to report: Values Report Filter Column Labels Drag fields between areas below: Customer Sales Date Product Channel x x ABCD Sum of Sales Column Labels Row Labels Product A January Product B January February Grand Total InternetRetail StoreGrand Total Product Date Channel Sum of Sales x x Pivoting Pivot Tables: Transposing from Columns to Rows Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.19www.StephanSorger.com Chart Selection A B C D E 0 $100K $300K $400K Revenue $200K $500K A B C D E Sales Revenue by Product Pie ChartVertical Bar Chart Typical Applications: -Market share breakdown -Revenue breakdown -Marketing budget breakdown Typical Applications: -Sales revenue comparisons -Before-After comparisons -Competitive comparisons Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.20www.StephanSorger.com 0 $200K $600K $800K Revenue $400K $1,000K A C D E Sales Revenue by Product 0 $200K $600K $800K Revenue $400K $1,000K A C D E Sales Revenue by Product 0 20% 60% 80% 40% 100% A C D E Sales Revenue Contribution Clustered Column ChartStacked Column Chart100% Stacked Column Chart Chart Selection Column chart variations available in Excel Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.21www.StephanSorger.com A B C D E $100K$300K $400K Revenue $200K$500K 0 Horizontal Bar Chart Chart Selection Typical Applications: -Long category names -Tornado charts (see next slide) Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.22www.StephanSorger.com Male Female Population, X Male Population, X 1000 Age Age Age Age Age 50-up 0 Female Tornado Chart Chart Selection Displays population comparisons Requires data preparation (see table) Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.23www.StephanSorger.com 0 $5K $1K $2K $3K $4K JanAugJunJulMayFebMarAprSepOctNovJan $6K $7K AugJunJulMayFebMarAprSepOctNov A B A B Product B Overtaking Product A Clustered Vertical Bar ChartLine Chart Chart Selection Typical Applications: -Trends comparing internal data with other internal data -Trends comparing internal data with external data Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.24www.StephanSorger.com A1 B1 C1 Scatter ChartDoughnut ChartRadar/ Spider Chart A2 B2 C2 Chart Selection CAUTION: Use sparingly in front of general audiences Can be confusing, with large chance of mis-interpretation Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.25www.StephanSorger.com Words and Numbers Sales increased from $4.2 M in 2012 to $5.3 M in 2013 Sales Product 1$3.0M $4.0M Product 2$1.2M $1.3M Total$4.2M $5.3M Data TableBasic Chart Sales: Product 1 Chart with Trend ArrowChart with Headline Sales up 30% Sales: Product 1 $3.0 M in Sales Chart with Threshold Sales: Product 1 Sales up 30% Chart Enhancements Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.26www.StephanSorger.com Comparison: Forecast Product 1 Actual Forecast Comparison: Competition Product 1 Acme Brand Competitors Breakdown: Products Sales by Product Product 1 Product 2 Breakdown: Channels Sales by Channel Channel 1 Channel 2 Chart Enhancements Comparisons using lines of different types Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.27www.StephanSorger.com 0 $5M $1M $2M $3M $4M JanAugJunJulMayFebMarAprSepOctNovDec $6M $7M 20% Sales Growth in 2013 $5M Threshold $8M Chart Enhancements Addition of Trend Arrow, Threshold, and Headline Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.28www.StephanSorger.com Marketing Analytics Ethics Truncating TrickeryThe Ethical Way Yes No YesNo Results of Survey: Would you recommend Acme products to others? With great power comes great responsibility Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.29www.StephanSorger.com Data-Driven Presentations Engineering Department Status Engineering resources are very low; definitely need more engineers Some engineers working many hours per week Engineers risk getting burned out from working so many hours New projects coming up will require more resources than we have Engineering resource types Engineering resource type A: have 10 engineers; need at least 12 Engineering resource type B: have 3 engineers; need at least 4 Engineering resource type C: have 5 engineers; need at least 6 Engineering resource type D: have 15 engineers; need at least 20 Possible slips to schedule can occur unless we hire more engineers Recommend hiring at least 2 additional engineers in next month Many engineers complaining to their management about workload The wrong way to present to executives -Not relevant to CEOs KPIs -Not likely to result in intended consequence (hiring more people) Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.30www.StephanSorger.com Analytics into Action Department Revenue and Resources JanFebMarAprMayJunJulAugSepOctNovDec Projected Revenue Revenue to Date Current Resource Level Will Stop Producing Incremental Revenue Here Professional Services Organization Department Status The right way to present to executives -Relevant to CEO KPIs -Outcome-focused, instead of process-focused Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.31www.StephanSorger.com Check for Understanding TopicDescription RapidLearn rapid decision tools, such as Pareto analysis Pivot TablesDescribe how to create and work with pivot tables CommunicationsIncrease communications effectiveness with data Stephan Sorger Marketing Analytics:Analytics in Action:Ch.12.32www.StephanSorger.com