"Marketing Analytics: How, Why & When"

© 2014 REGALIX | WWW.REGALIX.COM | CONFIDENTIAL © Stephan Sorger 2014. StephanSorger.com

• Option 0.2Marketing Analytics: Introduction & Examples

Hashtag: #MarketingAnalytics


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Hashtag: #MarketingAnalytics


About our SpeakerThe “Analytics Ambassador”

Author - “Marketing Analytics: Strategic Models and Metrics” Professional Expertise - VP Strategic Marketing, On Demand Advisors

Applying marketing analytics to grow revenue Academic Expertise - Marketing Analytics Instructor since 2008

USF MBA Program UC Berkeley, San Francisco Extension

Board Member - Served on UC Berkeley Ext. Marketing Metrics

Board Website: http://www.StephanSorger.com

LinkedIn: http://www.linkedin.com/in/stephansorger

http://www.stephansorger.com/

http://www.linkedin.com/in/stephansorger


About Regalix

An award-winning Global Co - Innovation company that leverages technology and marketing to help companies grow.

Forefront of Innovationo Digital Marketing Serviceso Technology Enabled Serviceso Regalix Labs

Multi-disciplinary Leadership Team & Strong Advisory Board, 175+ Team

Fortune 500 and Venture Backed Customers (B2B and B2C)

Global Operations: HQ in Silicon Valley, 2 Offices

Industry Recognition


About the New Book

Authoritative Guide to Marketing Analytics Over 10 years of professional experience Over 5 years of academic research

Comprehensive Nearly 500 pages of text Nearly 400 figures, tables, and graphs

Practical Structured around marketing and products,

not math Packed with examples

Available on Amazon.com: Search on “Marketing Analytics”: www.StephanSorger.com

www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307

http://www.stephansorger.com/

http://www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307

http://www.amazon.com/Marketing-Analytics-Strategic-Models-Metrics/dp/1481900307/ref=sr_1_fkmr0_1?ie=UTF8&qid=1365706042&sr=8-1-fkmr0&keywords=marketing+analytics+stephen+sorger


On Demand Advisors: Process

2. Market Definition

3. LeadGeneration

4. LeadManagement

5. SalesEnablement

1. Revenue Engineering


On Demand Advisors: Clients

http://www.coremetrics.com/index.php





















On Demand Advisors: Events

Free Revenue Engineering Workshops held every month

Tuesday, August 12, 2014 How the Channel Can Make Your Numbers Every Quarter

See OnDemandAdvisors.com to register and to see complete schedule

http://www.ondemandadvisors.com/


Agenda

Introduction Trends Driving Adoption Advantages Models vs. Metrics Promotion Budget Estimation Promotion Allocation using Microsoft Excel Bonus Section: Social Media Metrics Next Steps Questions


Trends Driving Adoption

MarketingAnalyticsAdoption

Online Data Availability

Reduced Resources

Massive Data

Accountability

Data-Driven Presentations

Improve productivity Reduce costs “What gets measured

gets done”

Data to back up proposals Predict success of plans Initiatives to capture

customer information What to do with all that

data?

Cloud-based data storage Online = speed Online = convenience

Do more with less Scrutinized budgets Marketers must show

outcomes


Marketing Analytics Advantages

MarketingAnalytics

Advantages

Persuade Executives

Side-Step Politics

Encourage Experimentation

Drive Revenue

Save Money

Marketing as cost center Marketing as profit center Correlation between spending

& results

Old way: execute campaign & guess outcome

No longer tolerate this approach New way: predict outcome

Test multiple scenarios before proceeding

Run Simulations Predict which will work best

Focus on revenue impact from marketing

Correlation between spending & results

Some CEOs do not appreciate marketing

Show impact of efforts with metrics


What is Marketing Analytics?

“It’s a Snake!”It must be Marketing

Automation!

“It’s a Fan!”It must be

Social Media!

“It’s a Tree!”It must be Google

Analytics!

“It’s a Wall!”It must be Big Data!

“It’s a Rope!”It must be Predictive Analytics!


Marketing Analytics Framework

Strategic Tactical

MarketAnalysis

Chapters 1-3

CompetitiveAnalysis

Chapter 4

Strategy andOperations

Chapters 5-6

Marketing MixThe 4 Ps

Chapters 7-10

Sales andSupport

Chapter 11

Analyticsin Action

Chapter 12

ConjointGoogle Analytics

Social Media

ForecastingBig Data

Predictive Anyl.

Marketing AutoSegmentationTargeting

Positioning

Competitive Analysis


Definitions

Topic Description

Definition (Broad) Broad definition (but too vague):Data analysis for marketing purposes, from data gathering to analysis to reporting

Definition (Applied) Techniques and tools to provide actionable insight- Models - Metrics

Models Decision tools, such as spreadsheets

Metrics Key performance indicators to monitor business


Models and Metrics

Metrics = Gauges:- Monitor situation- Diagnose problems

Models = GPS:- Representation of Reality- Decide on course of action


Promotion Budget Estimation

PopularPromotionMethods

Public Relations

Radio Advertising

Search Engine Marketing

Social Networking Sites

Television Advertising

Direct Marketing

Events and Experiences

Internet Advertising

Location-based Social

Print Advertising

Apple: Email ads

Jeep: Sponsor of X Games

Radio Shack: Ads on Yahoo!

Foursquare: Local restaurants

Maybelline: Ads in Vogue

Royal Mail: Picked up stories

Motel 6: Car travelers

Lowes: PPC Ads for washers

Facebook, LinkedIn, Twitter

GEICO: Many TV ads


Promotion Budget Estimation

PromotionBudget

Estimation

Competitive Parity

Objective and Task

Model-based

Percentage of Sales

Affordable


Method 1: Percentage of Sales

PromotionBudget

Promotion Budget = % of Revenues

AnnualRevenue

LegalZoom: Many businesses allocate 9 – 12% of annual sales for marketing budget


Method 2: Affordable

PromotionBudget

Leftover funds go to promotion

CompanyFunds


Method 3: Competitive Parity

Promotion Budget

Promotion Budgetfor Company

Promotion Budgetof Competitor


Method 4: Objective and Task

Market ShareGoal

AdvertisingReach

TrialRate

CustomerCount

AdvertisingImpressions

Gross RatingPoints

AdvertisingBudget


Summary: Promotion Budget


Promotion Allocation: Model

LinearOptimization

Model

INPUTS OUTPUTSObjective Function

Constraints

Maximized ObjectiveOr Minimized Objective


Promotion Allocation: Constraints

Contractual Constraints

Company Policy Constraints

Financial Constraints

Legal Constraints

TypicalPromotionConstraints

Budget NTE (not to exceed) $XXX/yr

Must follow legal regulations

Contracts with outside agencies

Observe company policies


Promotion Allocation: Process

VehicleContribution

PromotionObjective

PromotionConstraints

OptimizationModel

PromotionData

BudgetAllocation

Vehicle Contribution: Determine effectiveness of campaigns, based on historical dataPromotion Objective: Declare promotion objective in equation formPromotion Constraints: Specify promotion constraints in equation formOptimization Model: Execute model


Promotion Allocation: Example

Direct Marketing: Emails sent directly to individuals within target marketPay Per Click: Campaigns displaying ads during relevant Internet searchesSocial Media: Paid advertisements on social media platforms



Objective Function

Z = 30 * D + 30 * P + 40 * S

The equation applies the following variables:

Z = Our objective, in this case the total number of impressions from all promotion vehicles.

D = Quantity of direct marketing campaigns to run, given that each direct marketing campaign results in 30 viewers per advertisement.

P = Quantity of pay per click campaigns to run, with 30 viewers per campaign.

S = Quantity of social media campaigns to run, with 40 viewers per campaign



Promotion Constraints

B = 30 * D + 40 * P + 60 * S ≤ $2,000

The equation applies the following variables: B = Our monthly budgetD = Quantity of direct marketing campaigns, which cost $30 each to run.P = Quantity of pay per click campaigns, which cost $40 each to run.S = Quantity of social media campaigns, which cost $60 each to run.≤ = Inequality sign, indicating that we may not exceed our maximum budget.

D ≤ 30: Cannot exceed 30 direct marketing campaigns per monthP ≤ 20: Cannot exceed 20 pay per click campaigns per monthS ≤ 10: Cannot exceed 10 social media campaigns per month


Promotion Allocation : Solver

Optimization Model:Setup

Optimization Model:Execution

Optimization Model:Interpretation

Excel Solver functionSpecific format Identify limiting factors


Promotion Allocation: Setup

Changing Cells

Target Cell 30 30 40

Constraint #1: Budget 30 40 60Constraint #2: D ≤ 30 1Constraint #3: P ≤ 20Constraint #4: S ≤ 10 1

1

D P S

Columns for D, P, and S parametersChanging cells for D, P, and S

Target Cell(Contains objective equation)Constraint, Left Side(Contains constraint equation)Constraint, Right Side(Contains constraint value)

a b c

d

e fg hi j

k l

A B C D E F

1

2

3

4

5

6

7

8

9


Promotion Allocation: Execution

ExcelHome Data ……

Solver

A B C D E F G



Solver Parameters

Set Target Cell: Solve

Options

Equal To: Max. Min.

$E$4

By Changing Cells:

Subject to the Constraints:

$B$2: $D$2

$E$6 <= $F$6$E$7 <= $F$7$E$8 <= $F$8$E$9 <= $F$9

Add

Add Constraint

Cell Reference:

OK

$E$6 <=

Constraint:

=$F$6



Changing Cells

Target Cell 30 30 40

Constraint #1: Budget 30 40 60Constraint #2: D ≤ 30 1Constraint #3: P ≤ 20Constraint #4: S ≤ 10 1

1

D P S

Columns for D, P, and S parametersChanging cells for D, P, and S

Target Cell(Contains objective equation)Constraint, Left Side(Contains constraint equation)Constraint, Right Side(Contains constraint value)

30 20 5

17002000 200030 3020 205 10

A B C D E F

1

2

3

4

5

6

7

8

9


Promotion Allocation: Interpretation

Solver Results: Constraints

Solver Results: Summary


Promotion Metrics: Social Media


Sample Built-in Tools


Sample Aggregators


Pro Tools


Social Media Metrics Hierarchy

Referral Level: Users refer to others

Dialog Level: Users communicate

Engagement Level: Users act

Referral

Dialog

Engagement

ViewerViewer Level: Users view content


Sample Metrics: Viewer Level


Sample Metrics: Engagement Level


Sample Metrics: Dialog Level


Sample Metrics: Referral Level


Next Steps

• Take advantage of the metrics embedded in Regalix

• Go to Amazon.com, search on “Marketing Analytics”. Buy this book & others

• Consider taking university course in Marketing Analytics

• 2015: Online marketing analytics video courses available

• Until then, consider practicing promotion allocation methods on your own


Questions

Any Questions?


Get in Touch

If you have any questions about this webinar please feel free to get in touch with us at [email protected]

For more information on Regalix visit: www.regalix.com

For more information on Stephan Sorger visit: www.StephanSorger.com

mailto:[email protected]

http://www.regalix.com/

http://www.buyingprocess.com/

http://www.buyingprocess.com/


Do join us for our next webinar titled, “Rise Above The Noise: How To Get Your Brand To Stand Out On The Social Web” on Thursday, August 21, 2014, 1:00PM ET/10:00AM PT

Speaker

Mike Lewis, CEO & Co-Founder, AwarenessHUB

Visit our page http://bit.ly/1fFhmeb to read more on Marketing Automation

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"Marketing Analytics: How, Why & When"

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Transcript of "Marketing Analytics: How, Why & When"