Optimizing Market - Predictive Analytics World · 2013-04-14 · Service Channel Variety Local...
Transcript of Optimizing Market - Predictive Analytics World · 2013-04-14 · Service Channel Variety Local...
© 2013 Merkle Inc. All Rights Reserved. Confiden<al 1
© 2013 Merkle Inc. All Rights Reserved. Confidential
Optimizing Market Positioning
With Predic+ve Analy+cs
Bob Wood PAW SF 2013
© 2013 Merkle Inc. All Rights Reserved. Confiden<al 2
Ø Area of Specialty: Consumer Choice Modeling & Predic<on Ø Professional:
Ø Current: Director – Advanced Analy<cs Merkle Inc. Ø Previous: Director – Marke<ng Science Cox Communica<ons
Ø Educa<on
Ø BS/MS – Mathema<cs, BYU Ø Post-‐Graduate Work: Economics, Univ. of Rochester & Stanford Univ. Ø MBA – MarrioS School of Mgmt, BYU Ø MS – Sta<s<cs Emphasis, Wichita State University Ø PhD Candidate – Psychology, Wichita State University
Introduc+on – Bob Wood
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• You Are A Large Cable System in the Mid-‐West • Video • Internet • Phone
• New Entrants • DirecTV • Dish Network • AT&T U-‐verse Launching Soon • Beginning of Real Online Op<ons
• Losing Market Share • In New Environment, What Is Op<mal Posi<oning?
• What To Say? • Nuance By Segment
Problem Statement
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Influencing Consumer Choice
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Dual Process Theory
System II • Hypothetical & Mental Models • Abstract Reasoning • Slow, Probabilistic & Resource Intensive
System I • Instinctive & Parallel • Associative & Automatic • Quick & Decisive Source: Dual Process Theory. Stanovich & West, 2000.
Dual Process Theory
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Means-‐End Theory
Personal Values
Feelings
Benefits
Attributes
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Example: Ar+cula+ng Ladders – Consumer Decision Map
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Challenges With Laddering Interviews • High Skill • Significant Complexity In Data Gathering and Modeling • Expense
Main Methodology – Laddering Interviews
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Does It Work – Is It Worth It?
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• Pioneering Work Done By Dr David Whitlark • e.g. Volume 31, Issue 4,, Interna<onal
Journal of Public Administra<on, 2008
• Start With Qualita<ve • Enhance & Expand With Quan<ta<ve
• Specialized Survey Structure Followed By Analy<cs
• Benefits: • Allows Crea<on of CDM From Small Number
of Laddering Interviews • Large Enough Sample for Segmenta<on View • Could Show Concept Brand Ownerships
Predic+ve Analy+cs Solu+on
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• Laddering Interviews to Targeted Groups • No More Than 10 Needed For Each Group
Process: Step 1 Laddering for Lexicon
No LT Contracts
Selec+on Entertain Whole Family
Wide Variety Free Installa+on
AO’s No Charge
Local Channels
Price I Can Afford
In Budget Good Value
Making Smart Money Choices
Informed & Savvy
Adventurous
Curious S+mulated Mind
Educated About World
Making Wise Choices
Enjoy Good Things Of Life
Freedom To Choose
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• Verimax Rota<on • Some Face Value Interven<on
Process: Step 2 Factoring
No LT Contracts
Selec+on Entertain Whole Family
Wide Variety Free Installa+on
AO’s No Charge
Local Channels
Price I Can Afford
In Budget Good Value
Making Smart Money Choices
Informed & Savvy Adventurous
Curious
S+mulated Mind
Educated About World
Making Wise Choices
Enjoy Good Things Of Life
Freedom To Choose
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• Name the Factors • Connect Factors Between Levels (Some Excep<ons)
• Experiments: SEM / Bayesian Networks
Process: Step 3 Par+al Correla+ons of Factor Scores
No LT Contracts
Selec+on Entertain Whole Family
Wide Variety Free Installa+on
AO’s No Charge
Local Channels
Price I Can Afford
In Budget Good Value
Making Smart Money Choices
Informed & Savvy Adventurous
Curious
S+mulated Mind
Educated About World
Making Wise Choices
Enjoy Good Things Of Life
Freedom To Choose
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Process: Step 4 Final Consumer Decision Map
Personal Satisfaction
Enjoy the Good Things
of Life
I Feel I Am Working
With Trusted Partner
Feel in Control
Learning About the
World
Good Value
I Feel Smart & Informed
Relaxed Stress-Free
Escape
Opportunity to Relax
Trustworthy Company
Variety
Effective & Prompt Support
Enjoyable Entertainment
Friendly & Saves Time
Reliable Service
Channel Variety
Local Channels
One Bill / Save With Bundles
Consistent Service Delivery
Order By Phone
Established Reputation
English Speaking CS
Clear & Vivid
Experience
Respectful Customer Service
Offers Channels Important
to Me
AffordableEffective Product
Education
Freedom to Choose
Make Wise Choices
VideoVideo--HVMHVM
Prod
uct B
enef
itPr
oduc
t Ben
efit
Prod
uct F
eatu
rePr
oduc
t Fea
ture
Pers
onal
Ben
efit
Pers
onal
Ben
efit
Pers
onal
Val
uePe
rson
al V
alue
PrimaryPrimary ChainsChains •Red = Primary•Orange = Secondary•Pink = Secondary (Older Demo)•White = Neutral•Yellow = Owned by Competitor•Green = Owned by Cox
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Ad Tes+ng
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• Research Side • Reduced Cost of Research by 75% • Reduced Time to Execute by 50% • Could Leverage Internal Analy<cal
Resources
• Results • Confirmatory of Qualita<ve Results • Insights By Segment • Brand Ownership of Low Level Concepts • Richer Strategy Discussion
• Impacts • Consistent Posi<ve Net Gains in Video • Resonant Communica<on Impact -‐ General
Impacts of Predic+ve Analy+cs Approach
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Ques+ons