Spotlight - The human behind the machine

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#wirehive100

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#wirehive100Robert BelgraveCEO, Wirehive

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#wirehive100Jason troutUK Managing Director, Exponential Inc

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The human behind the machineHow do digital agencies stay relevant in the age of automation Jason Trout Managing Director UK, Exponential Inc.

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Rise of the machines - Trust the machines We are human We love a map AI mad/bad? Post digital Who owns creativity?Letting go

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Page #Correlation proves causation! argument. We have all been told that this is a big no-no. But, how often are we guilty of the error? Below is a great cartoon that very wittily shows just how easy it is do fall into that trap.We find two data points that are correlated and seem to have a logical connection and voila! We believe one caused the other. The above is a silly example, but in our own work, how do we avoid drawing erroneous conclusions? Example: The number of jobs in my county grew by 10% last year, boy Ive done a great job! Wheres my raise? If the number of jobs fell by 10% in a given year, we might blame the economy or the fact that the major employers in the region are all in an industry in trouble (think oil and gas exploration right now). As consultants, we joke that our best success stories for plans we have completed may or may not be an actual result of our work --- randomness plays a role in every deal and in every success or failure. On the flip side, failures cant be pinned on us either! Joking aside, we hope that we have made a real difference, but it is nearly impossible to prove anything. The best we have is a long-term set of projects and plans we have worked on being correlated to another set of data about successful projects/initiatives. Thats correlation. We hope causation is involved!10

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Page #Forecasting stones are common place now, can buy on amazon for 20 EurosGuaranteed to 100% tell you the weather , difference between weather and climate Bit like saying I know that guy is going to buy a Mercedes after he has driven away from the showroom in it

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MapsTerrain Korzybski

Page #Maps distill reality, they are necessary but flawed. They allow us to rapidly orientate, communicate, transfer and apply information. We need abstraction. The only way we can process the complexity of reality is to make generalisationsThere are two basic problems with maps. We fail to understand their limitations, and the world they are based on is liable to change, often rapidly.1. Even the best and most useful maps suffer from limitations;or as statistician George Box put it in 1976 all models are wrong.15

Page #Rene Magritte illustrated the fallibility of representation through his piece The Treachery of Images, 1929. This is not a pipe. It is apictureof a pipe.16

Everything is dynamic

Page #The world is dynamic.And most of the time its changing fast. Maps are static until updated which requires deliberate re-evaluation and effort. Nothing is more dangerous than basing decisions on outdated maps.We are so reliant on abstraction that we frequently use an incorrect model simply because we feelanymodel is preferable tonomodel.(Reminding one of the drunk looking for his keys under the streetlight because Thats where the light is!). Having a map in hand can be falsely reassuring.Furthermore, knowing the description of the thing is not knowing the thing itself. Sohanding someone a map does not equate to them understanding the terrain.Richard Feynman, one of my heroes, grasped this intuitively. As he pointed out,knowing the name of something does not mean you know somethingabout it.Financial statements are maps.Strategic plans are maps.Dashboards are maps (of maps.)The longer you operate a business based on maps the more likely you are to be out of touch with reality. Remember, maps abstract reality, by definition smoothing out detail without necessarily reflecting change.Interestingly, founders are often in touch with the terrain of their business as they have lived and breathed it. Its easier for successors to get into trouble as they are merely handed the map.17

Page #It's fair to say pollsters, political commentators andexperts on both sides of the Atlantic didn't believe they would ever see that. And neither did I.If you listened to us allon the airwaves it was clear that most believed common sense would prevail and prevent someone so polarising and unpredictable beingelected to the most powerful office in the world.But there was one expert in a TV studiothat, if it had had a voice,would have been sayingsomethinglike "I told you so".EagleAi was designed and built by Havas for ITV News. A learning artificial intelligence tool, it was programmed to interpret and understand on a scale never seen before on British television.Our team at Havas Cognitive thatcreated EagleAi fed it withbillionsofdata points dating back to the moment Hillary Clinton and Donald Trump were selected at their respective party conventions. And then we spent weeks checking and double checking thedata sets and thealgorithms, because we just couldn't believe our eyes. You see,EagleAi kept predictinga Trump victory.It wastaught to understand sentiment, tone, emotion and even intentionand use all of that to predict voterbehaviour.In fact, it got so good at it, it couldspotpatterns and connections just like a human brain.I spent election night chaperoning EagleAi on ITV News, and I was in awe of its ability from the start. This cognitive technology allows us to understand like a human being but operate at a volumeandspeed that is not humanly possible. It's like harnessingthe power of 2,000 data researchers at the touch of a button.After feeding on the content of countlessspeeches, three presidential debates, 15 million articles, hundreds of political feeds, tweets, social posts and millions more sources, this extraordinary piece of AI the first of its kind to appear live ontelevision was telling its programmers that it believed Donald Trump in the White House was not just a possibility, but a likely outcome of this presidential election.ITV News anchorTom Bradby was incredulous when EagleAiproduced the insightthat Donald Trump's personality index score was in factmore "agreeable" than HillaryClinton's.EagleAi used personality indexingto anaylse elements of the candidates' character and their messages, from their debate performances, to their social channels and the content of theirspeeches.The index suggests that a person is "agreeable" when they are perceived as warm and considerate. So did EagleAi spot something that the media didn't? That Trump's repeated use of the messages that he "loves his country" and wants to "make it great again" gave voters that exact impression of someone who understood them and cared about them? No matter hisrepeated and increasinglybitterattacks on his opponents and minorities of all kinds.What's more, EagleAi spotted something about Hillary Clinton too that she may be prepared, diligent and on top ofthe detail, but when it came to warmth and likability it all felt too rehearsed and cold for the former Secretary of State to win over voters. And so her messages just didn't cutthrough like they should have done. Even though her credentials on civic issues like gender equality, abortion rightsand civil liberties should stack up, she just wasn't offering the warmth that voters craved.When EagleAi was asked to explore the election issues it had uncovered, it could offer so much more than polling data. In this election it was clear to us and the AI thatvolume was the number one priority. Say it often enough and people will hear.And that'swhere Trump may have just won this election: the power of saying it over and over again, talking directly to the voters on social media, and then never letting up. Did the Clinton camp simply fail to respond to the reality ofsocial media as the new powerhouse in politics, in brands andin business?And that is where we believecognitive is only at the beginning of its evolution. Itis essential to the future of our industry and the understanding of brand penetrationand ultimately buying behaviour.If EagleAi could see what so manyhuman beings couldn'twhen it cameto the ragingly unpredictable nature of voting in an historic election, what might it be able to do for businesses all over the world just beginning to understand its power?As EagleAi delivered the fatalblow to the Clinton campaign showing a map of the US and support by state that had whole swathes of America bedecked in red, it displayed alaser-like claritythat the human beings hadn't.And maybe that's the beauty of AI. Itdoesn't have a vested interest. EagleAi hadno in-built bias on election night. When you focus on the zeros and ones that are the building blocks ofcode, there's no room for preconception or prejudice. Just the facts. On an awe-inspiring scale.

Read more at http://www.campaignlive.co.uk/article/trumps-victory-night-machine-predicted-humans-better-humans/1415060#d01cbvedm05TWfBX.9918

The Future?

Page #I once heard artificial intelligence described as making computers that behave like the ones in the movies. Hollywood's computers and robots are invariably mad, bad and dangerous to know. So when we are warned about the emerging threat of AI to the future of humanity, people get alarmed.There are plenty of things to be alarmed about in the modern world, fromclimate changeto terrorism,Ebolaoutbreaks to nuclear reactors melting down. However, I am pretty relaxed about the threat from AI and actually very excited about what future developments hold.AI isn't poised to decide that we are superfluous to requirements and that the planet would be better off without us. To believe that is to misunderstand the progress we have made in AI and to forget a basic feature of human design. The rise and rise of computing power has brought huge advances in our ability to solve problems that previously seemed beyond machines. Examples include speech recognition, language translation, defeating human chess champions,systems taking part in quiz shows, vehicle navigation and control. The list goes on. However, the characteristic of this success is what I call the combination of brute force and a little insight.When Gary Kasparov was beaten by an AI chess-playing programme it happened because of the ability of the machine to review hundreds of thousands of moves deep into the game -- brute force. The program had a large library of stored moves from openings through to end games -- brute force. The program was able to apply weightings to the relative goodness of the moves -- a little insight. The result was a defeat for Kasparov.A couple of decades earlier we had been told that if ever a computer beat a human world chess champion the age of intelligent machines would have arrived. One did, and it hadn't. And it hasn't arrived today,when Deepmind's latest learning algorithm allow computers to learn to play at super human levels in arcade games.What we do have are programs and machines that are exquisitely designed to particular tasks -- achieving a level of performance through brute force and insight that makes them look smart. And that brings us to that basic feature of human design. We have evolved such that we are disposed to see intelligence, other minds and agency in the world around us. A three-year-old child tows a piece of paper around and treats it as their pet. MIT students sitting entranced by a crude humanoid robot able to raise its eyebrows, effect a frown or look sad by implementing a simple set of rules displaying responses that weretriggered by the behaviour of the student. Or back to Kasparov, who was convinced that the programme that beat him at chess was reading his mind.The reality is no less exciting. What we are witnessing is the emergence of Ambient Intelligence and Augmented Intelligence. These others senses to the abbreviation AI have been brought about by the encapsulation and compilation into devices -- the Internet of Things and the Web of narrow components of Artificial Intelligence -- programs that are crafted to a particular task and niche.Augmented Intelligence occurs when we use our global infrastructure of data and machine processing connecting thousands and millions of humans. Witness therecent response to the Nepal earthquake. This is a genuinely exciting prospect where we solve problems together that are beyond any one individual or organisation.In the meantime there is no doubt we should take the ethics of AI very seriously. There is danger from complex systems with AI algorithms at their heart. The danger is not having humans in the loop to monitor, and if necessary override the system's behaviour. It is not having clear rules of engagement, built into these systems; principles that embody the highest levels of respect for human life and safety.Isaac Asimov, who saw the future better than most, gave us a first law of robotics -- a robot may not injure a human being or, through inaction, allow a human being to come to harm. This is a great principle to compile into any complex system.

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Page #The pioneering technology within Machine Learning is theneural network(NN), which mimics (to a very rudimentary level) the pattern recognition abilities of the human brain by processing thousands or even millions of data points. Pattern recognition is pivotal in terms of intelligence.

It is worth keeping in mind that a lot of people assume that through Machine Learning we are developinggeneralAI rather thanappliedAI (difference is explained very wellhere). Applied AI is intelligence, but in a very limited field. For example, in recognizing human faces (Facebook), driving cars (Google Autonomous Cars), or what we do atThe Graduate namely matching teachers to students for optimal outcomes. This is the strength of Machine Learning, pattern recognition albeit in a limited, defined scope. Or rather, organized complex information.

NOTE: AgeneralAI on the other hand, is not limited to a narrow field where humans still have to impose certain rules before it can learn (cars are not animals, etc.) To clarify, there are hundreds of companies using applied AI (such asa vacuum cleaner that knows how to avoid your cat), there are none that have developed general AI (thinkTerminator).20

Would you buy this car?

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Page #Whats post-digital you ask? Well, were living in that world today and its time to acknowledge it. Digital technology is embedded in our daily lives as consumers, as professionals as human beings. I opened the event describing how marketing evolves in three phases: The pre-digital era was characterized by a mass-media centric, one-to-many approach; the digital era ushered in a data-driven, one-to-one mantra; and today were in a post-digital world, and your success will be determined by your ability to adapt to one-to-moment marketing.The digital distinction now dissolves into our daily lives. This raises the stakes for marketers because your customers arent just empowered by digital technology theyre actually entitled. They think they deserve something, they want it now, and if you cant provide it, they will quickly find it somewhere else. Forrester and industry speakers explored this phenomenon over the course of our 2-day forum. Here are the top 5 key takeaways from last week:1. Adopt A Post-Digital Mindset.Forresters Shar VanBoskirk unveiled therules of post-digital marketing: Be human, be helpful, and be handy. Sure, it may take a lot of MarTech and AdTech to win in todays environment, but our latest research shows that to win in a post-digital world, you need to abandon the advertising mindset, be accountable for your brand promise everywhere (e.g. do what you say), and apply the best of what youve learned from brand, product, direct, and digital marketing to delight those entitled customers. Suzy Deering, CMO for eBay discussed how she is turning the brand inside out and putting customers in control as eBay continues its journey into the post-digital age.2. Understand Customer Moments.ForrestersSrividya Sridharanexplored how marketers should develop a rich customer understanding by working across the organization to buildsystems of insight. These closed loop systems of people, processes, and technology enable a business to act upon that insight whenever and wherever customers need you. On this front, we heard from Lilian Tomovich, chief experience and marketing officer of MGM Resorts, on how MGM transformed the customer experience to deliver exactly what its guests want in their moments of need.3.Win Customers Trust.ForrestersFatemeh Khatibloogave a powerful speech about themechanics of customer trust. How important is building trust with your customers in a post-digital world? Ill quote Fatemeh to answer that: Trust is earned in drops, lost in buckets. When less than a quarter of consumers tell us they trust ads, its clear that trust is a big differentiator for brands in the age of the customer. A great group of panelists joined Fatemeh on stage, including Anne Murray, senior director of marketing at Southwest Airlines, who discussed the need for transparency in building trust with customers.4. Engage With Customers In Context.At this same event in 2014, I gave a speech entitled The Power Of Customer Context. This was a call-to-action for marketing technologists everywhere to stop what they were doing and take a different approach to all that MarTech and AdTech. This year, my colleague Rusty Warner and I updated thatresearchwith some fresh examples of how brands are successfully embracing contextual marketing. Whereas Sri (see above) discussed how businesses need to build systems of insight, Rusty discussed how all of that insight enables marketers to engage with customers through systems of engagement. It is in the marriage of these two systems where the magic occurs: delivering one-to-moment, value-driven interactions through a contextual marketing engine.5. Lead The Change.Marketers must lead the way on their firms journey toward customer obsession in a post-digital world. So, to close out the event, we asked Forresters James McQuivey to discuss how marketers can do just that. He began by discussing a key characteristic of the post-digital world hyper-adoption and hyper-abandonment. Marketers are best positioned to understand that new customer behavior. But more importantly, theymust learn to lead the changeinside of their respective businesses that will be required to win in this brave new world. Anna Fieler, CMO of POPSUGAR joined this section of the program to discuss how Gen-Z consumers represent a fundamentally different customer base, not to mention a 30% shorter attention span than older generations. This certainly instilled a sense of urgency for us all.

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Page #Audience evaluation

16-34 MEN

Page #A bit like the weather forecasters, there are many legacy systems and protocolsbaked into direct mail. TV, and the like reliant on broad audiences, geography or surveys. Audience grouping is well understood and flawed in that everyone in the group is assumed to be the same. It makes it difficult to see beyond this and trust machines in individual observations25

Audience Discovery and evaluation Real observations

Connected devices

Survey/registration fear

Page #The big difference is that today we can make real observations about how people are going about their digital lives with all of their connected devices. This is reality versus claims in surveys or registration information26

Page #Audience evaluation - Hotel Booking Service Marketing Intuition

Holidays/ Content/Media

Page #Using intuition feels like a skill that experienced marketers have and is therefore a key skill.If you are a hotel booking service then it feels logical to say my audiences are people who are consuming content around holidays or consuming other media about holidays. 28

Audience evaluation Hotel Booking Service

Real observations

Actual connections

Page #If you rely on human intuition then you will miss out on valuable insight. In the hotel booking example interests in shopping trips, theatre, dining out, family celebrations may all drive a need to book a hotel room. These are all examples of where a machine can discover and predict outcomes based on observed behaviours.29

Its a Dynamic world

Page #In order to adjust for this you need to make decisions in real time. These need to be made at the impression level, i.e forensic. Only machines have the capacity to cope with the complexity and volume of information at any moment in time without adding any structural bias. Every user is different and so will have a different value to a brand at any moment in timeaudience demographics and manual analysis cannot cope with this. 30

Audience discovery and evaluation CRM/purchase records

Data Management Platform

Statistical evaluation overlap

Converters

Page #You can also bring in their offline purchase records, or offline CRM records to further qualify

Now we have our data sets sitting in our data management platform we want to statistically measure the relative overlap between the audiences we want to evaluate, and the audiences that represent what we want to achieve, the converters.

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Audience evaluation

No Human Bias

Page #This is the way of using objective, statistical techniques to do the discovery process. Its about getting to a number as opposed to intuition of some kind of ranking32

Citibank Price Rewind 60 day consumer receipt dataCustomer specific offersPurchase and preference dataTrue 1-2-1

Page #How does this help?

Page #For consumers over many many exposures and campaigns they will be exposed to more relevant advertisingLess exposed to irrelevant advertising.Probably less likely to look for ad blockers so a good thing. 34

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Letting go #1#2#3

Page #They all perform the same job, but the two on the right have been re-designed by a combination of software and 3D printing.The component on the left, which is about a metre (39 inches) tall, was designed as one of 1,600 parts to hold the support cables and arms for a giant outdoor lighting system. It is made from stainless steel in the traditional manner by cutting and drilling sections, which are then welded together. The work was done largely by handand was something of a chore because each of 1,200 of the brackets had to be different.

The other two components have been analysed by a computer to find the optimal design that is able to provide the same strength, but from the least amount of material. The middle component was optimised to keep the fixing points for the arms and cables in much the same place, and resulted in a 40% weight saving. Moreover, it could be printed in one go and design variations automatically handled by the software. The third version was obtained by allowing the system to completely rejig the entire structure. It produced a 75% weight saving.

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6 considerations A fool with a tool is still a foolDon't let your internal policeman be your biasDont settle for maps when you can observe the terrainAI can automate and liberate, change your lensMeasure everything, even when you sleep The future can be faster, more efficient and more bespoke advertising-a better online experience for users.

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#wirehive100Justin thorneHead of Strategy & Performance Marketing, LAB

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Justin ThorneHead of Performance Marketing@JustinThorneUK

@justinthorneuk

197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520161971First Email1978First Spam1997Social Media1991First Website1990Search Engine1994Banner Ad1995eBay Item1998Google2004Facebook1995Match.com2012Tinder2011Snapchat2010Instagram1600 BCAlgorithm1956A.I.2000Google Algo2014Driverless Cars[R]evolution1961Robot

First Search Engine Archie, built in anticipation for web pages! 1990 also year of first web browser, called WorldWideWeb later changed to NexusFirst Website Tim Berners-Lee, info about the project known as The World Wide Web or www for shortFirst Social Media Network SixDegrees, profiles and making friendsFirst eBay Item was a lazer pointer pen it was brokenFirst A.I. was the Logic Theory Machine, MIT launched the first AI lab in 1958 with a grant of $50K

The real birth of SEO 2000, 2003 was the first documented change to the ranking algorithm SEO is still seen as a new discipline!42

Context

41 years to go from the first email to Tinder (wink!)

58 years to go from the concept of A.I. to driverless vehicles

In the next three years, it is predicted:

A.I. systems will beat the Turing TestAll five human senses will become part of the normalcomputing experienceA.I. will be solving some of societys most dauntingchallenges, including terrorism and climate changeRedefine the practice of medicine using Big DataA.I. will be woven into the fabric of our lives, physically and virtually!

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Algorithms are already running our livesWhat results you see in search enginesWhat adverts follow you around the InternetWhich friends show up in your social feedsAir traffic controlFix prices for airline ticketsDecide if you can borrow moneyOut pregnant teenagersDecide if you are a danger to your country!Matching organs to patients with higher success rates

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Technology Deus Ex MachinaAd Tech Optimisation and Predictive Marketing

Demand Driven Campaigns

Intent Driven Audiences

Full attribution of path to conversion

Fantastic to have all of this technology at the heart of what we do as digital marketers, but its a deep understanding of human emotion that adds the beat

And with that Daryll Scott45

At the customer-end of all this technology, there is a human being

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Why Neuromarketing?What is Neuromarketing?

Neuromarketing

Is there a magical button?

Why Neuromarketing?Nothing happens without emotion

All decisions are emotional

ResponseReasoningStimulus(Non-conscious)(Post-hoc)(Media / Context)Why Neuro-Marketing?Whats Happening Here?

Why Neuromarketing?Non-conscious does not mean stupid

Neuro-Metrics (EEG)What is Neuromarketing?

What is Neuromarketing?

Bio MetricsFacial Coding

AngerContemptDisgustFearHappinessNeutralSurprise

Bio Metrics GSRWhat is Neuromarketing?

Other lines of enquiryBehavioural Economics (Nudges)

Creative Experience

Behavioural Psychology

Sensory Qualities

Sensory LanguageGreat to see you yesterday.

The presentation was clear and I look forward to seeing what develops.Great to chat yesterday.

The presentation sounds great so we will wait to hear from you.Great to meet you yesterday.

The presentation was solid, we got it and hope we can move it forward.

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Neuro-Linguistic SearchUsing principles from Neuro-Linguistic Programming and great technology to increase conversion rates and reduce the cost of acquisition across channels

TM

Neuro-Linguistic Search

TechnologyContextLanguageCreative

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PrinciplesIt is interruption marketingIt is a direct, 1st person conversation with the userGet ATTENTION - with disruption, confusion or relevancyEvoke EMOTION - joy, surprise, curiosityProvoke ACTION - with motivational language; verbs not nounsNUDGE - use cognitive motivators

Example: Razors4UGillette Mach 39.45 for 8 Mach 3 BladesFast and Free deliverywww.razors4u.comProblem:Nobody knows exactly how much 8 Mach 3 blades cost - no anchored valueBuying razor blades is not a positive thing - not authentic

The SolutionGillette Mach 3 BladesRefuse To Pay 15 For 8 Blades.9.45 For 8 Blades.www.razors4u.com/Mach3

Results

THANK YOU!

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#wirehive100Chlo thomasFounder & Host, eCommerce MasterPlan

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Help your Clients meet their Customers Needs

Chlo Thomas

eCommerceMasterPlan.com

Today Ill Introduce you to:

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Before we can look to what the Future of eCommerce is - we need to understand where we are right now.

I believe we are (in the UK) now across the chasm and into the Early Majority stage. That means its time to grow up! The industry is now mature enough that we are not in the wild west anymore, we can learn best practice from others, and no longer to re-invent the wheel. - a few years ago if you wanted to improve the search function on your website youd have to brief an algorythm of your own, now you can access highly sophisticated, effective solutions and just bolt them in. - faster, better results, less effort and ocst and happier customers.

This stage is going to last a while - it represents 34% of the market, (the previous 2 stages are a combined 16% and it took us around 20 years to get here). so please dont panic that its nearly all over!!

Its no longer tech for the sake of tech,Its now all about the customer, if eCommerce business people want to be successful in the future they need to satisfy the customer.The lesson from all the podcasts Ive recorded so far is - focus on customer service. In all its guises

the happier the customer is, the more they will buy.

The perfect search engine understands exactly what you mean and gives you back exactly what you wantLarry Page


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[email protected]@chloe_ecmpeCommerceMasterPlan.com

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#wirehive100Matthew McclellandChannel Relationship Manager, dotmailer

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Marketing metrics matter: Beyond the essentialsMatthew McClellandChannel Relationship Manager@dotmailer

Searches for baking on eBay rose 680% during Great British Bake Off finalRemoving the requirement to submit a mobile number on a form increased email capture by 275% Similarly, reducing the resulting questions from 5 to 4 increased capture rate by 28%47% of people stressed by marketers targeting them with irrelevant content

Half of the money spent on advertising is wasted;the trouble is I dont know which half.

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One of the reasons that marketing are not on commission is that its difficult to attribute ROI to spend to various campaigns using a multitude of Channels.

Like M Theory or string theory, were always searching for one method or theory that will help us measure, learn and adapt our campaigns. What is the silver bullet of campaign metrics?

The holy grail:What can be takenas the ultimate measure?

Slide #@dotmailer

Well, there isnt one. Like with most things were always learning and adapting. With emergence optimised marketing technologies, marketers and management alike are overwhelmed with numbers and statistics.

Looking at our old workhorse, email, one of the first channels in which we could provide demonstrable results to campaigns at an engagement level rather than redemption.

These age old, process metrics such as Opens, Clicks have lived on for several decades and its about time we adapt our perceptions and those of our peers, stakeholders to accept that questions likehow does my open rate compare to the industry average need to be removed entirely from our vocabulary. You can probably tell from my tone that after nearly a decade in email and marketing automation, my forehand has taken enough punishment against the office wall when were asked this.Why do we ask these questions?Is it because of industry norm?Is it because its what our boss expects?Do they form part of our KPIs

Challenges

Slide #@dotmailer

So today I want to discuss a few challenges that all businesses face with reporting and justifying budget expense within this channel. We take understanding from metrics with a view to improve our activity, but is that what the data is actually telling us?As example; Open rates within an email are calculated when the recipient downloads a very small image. Consider if they have images turned off, a native setting of many email clients they can digest the content without opening. Consider the proliferation of mobile devices that download images automatically when someone quickly flicks through their inbox, tracking as an open, . The usage of Preview panes within desktop clients and settings on mobile devices that allow you to decide how many lines of the email you see in your inbox without engaging with an email make it increasingly difficult to rely entirely on this aging metric as a measure of success.

Opens or Clicks?Campaign ACheck out our new BritishFilm of the MonthEmails Delivered:10,000Unique Opens:2,000Open Rate:20%Unique Clicks200Click Through Rate2%Click to Open Rate10%

Campaign BCheck out Benedict Cumberbatchsbrand new film!Emails Delivered:10,000Unique Opens:1,500Open Rate:15%Unique Clicks:300Click Through Rate:3%Click to Open Rate:20%

Slide #@dotmailer

To put this into a practical example yes people this is audience participation time. Odeon are not in the room today but have allowed us to share these stats from two campaigns regarding the 2014 blockbuster the imitation Game.check out our new british film of the month

Hands up for those people that would say campaign A has more effective subject lineHands up for those people that would say campaign B has more effective subject line

Opens or Clicks?Campaign ACheck out our new BritishFilm of the MonthEmails Delivered:10,000Unique Opens:2,000Open Rate:20%Unique Clicks200Click Through Rate2%Click to Open Rate10%

Campaign BCheck out Benedict Cumberbatchsbrand new film!Emails Delivered:10,000Unique Opens:1,500Open Rate:15%Unique Clicks:300Click Through Rate:3%Click to Open Rate:20%

Slide #@dotmailer

You can see that the click through rate in campaign B was higher and the number of unique clicks. Yes, although the subject line had lower engagement the effectiveness of the campaign is evident on the customer journey to the website to find out more about the film.

Challenges

Slide #@dotmailer

Marketers need to have full visibility of the customer journey, rather than silos of data. We want to report on a campaign as opposed to a specific channels performance. Todays marketers require a wealth of skills, from traditional fundamentals through to data scientists. It was Gartner who have stated that CIOs and CMOs must digitally remaster their organisations and by 2017 over 25% of organisations will have a CDO. How does this evolving landscape impact the questions that we ask of our providers, our marketing teams and ourselves when considering the metrics of success? Today I am presenting 6 alternative ways to measure success within email campaigns specifically, but also how we may apply these to other channels.

The Alternative Metrics

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1) The halo effect92%

60%

Slide #@dotmailer

This term is used to describe the indirect impact of an email that motivates them to act. Albeit not with the email. 92% of purchases taking place In store, are following online activity according to Google. Specifically 60% of email recipients visit a store as a result of reading an email, Wandful Media.Consider: If Overall sales around the period of an email send increase or if Sales by Individuals who received an email and make a purchase increase.

Consider:If overall sales around the period of an email send increase or if sales by individuals who received an email and also then made a purchase (but not through a direct click) increase.

If this sounds familiar, apply a general % halo to email programs to recognize impact beyond direct conversion. Top level mgmt may consider if they are pushing for multichannel attribution (well go into this later).

Subject Lines Drive ResultsBook to WIN with Bond

Win BIG with SPECTRE

Slide #@dotmailer

A practicle Example to showcase the impact.

When searching for Bond in google, you will notice that Odeon does not nor other cinemas appear.

Subject Lines Drive ResultsBond vs SPECTRE

Slide #@dotmailer

When searching for Spectre, Odeon is top Cinema chain and number 3 overall.

The Halo Effect is the increased web traffic not from email click but searches for Spectre after an email send that lead to web traffic.

Do you want to know which channels perform the best at any given time? Do you want to know which channels drive the most value to the business over time?

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When reviewing success metrics over what time scale do we consider but also moving beyond process metrics, rather the overall customer value.

2) Overall Customer Value AnalysisThis analysis will show you:How each channel is performingChannel performance relative to the others The value of customer engagement across multiple channelsHow much you should spend to acquire customers across each channelHow much you should spend to get customers engaged across multiple channels

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Moving on from process metrics

If traditional attribution modelling builds from the ground up, there must be a way to look at this from the top down. There is and we have used this customer value analysis with a number of clients.

Rather than looking at the contribution of each channel in each sale, this looks at the value being delivered by the customers who interact with each channel over time.

Not only will this show you the value of each channel relative to the others it gives you very clear guidance on how both your marketing and promotional budget should be used.

Lets look at a simple example.

Customer Value Example

BothFacebookEmail

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Here we have a B2C company that are only marketing on Email and Facebook. So, you will have email recipients, Facebook fans, and people who interact with both. Once we have identified these three groups we can look at the revenue generated by the customers in each then compare the two channels to each other. Lets put some made up numbers to this.

Customer Value ExampleRecipients

Purchasers

RevenueAvg Purchaser ValueAverage ValueEmail 100,000 10,200 159,000 15.59 1.59 Facebook 30,000 1,400 26,000 18.57 0.87

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So, we have 100,000 email recipients. 10,200 of them made a purchase over the past month generating 159,000 in revenue and you can see that dividing the revenue by the number of purchasers we get the average purchaser value and by dividing revenue by email subscribers we get the average value of an email address. The same analysis works for the 30,000 Facebook fans.

But hang on a second, arent we double counting the people who get the email and are fans on Facebook?

Customer Value Example

Purchasers

RevenueAvg Purchaser ValueAverage ValueEmail 100,000 10,200 159,000 15.59 1.59 Facebook 30,000 1,400 26,000 18.57 0.87

Purchasers

RevenueAvg Purchaser ValueAverage ValueEmail Only 90,000 9,000 135,000.00 15.00 1.50 Facebook Only 20,000 200 2,000.00 10.00 0.10 Both 10,000 1,200 24,000.00 20.00 2.40

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Well yes, actually. So lets split them out.

One word of warning here I have purposely structured these numbers for the purpose of this illustration. They do not always work out this cleanly. Remember that you might have a channel with a very high average purchaser and overall average values but pumping a lot of money into these may not generate increase the revenue linearly.

What Does This Tell Us?AvgPurchaser ValueAverageValueEmail Only 15.00 1.50 Facebook Only 10.00 0.10 Both 20.00 2.40

Spend no more than:1.50 to acquire an email10p to acquire a Facebook fan90p for an email recipient to become a FB fan1.30 to capture the email for a FB fan

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You know how much to spend to acquire a lead and how much to spend to acquire a customer.If someone tells you to achieve X rev target in a Quarter you know how many email addresses, FB fans to acquire.Equally in this example. If we look at the average value of a facebook customer, someone would say why are we bothering as the value of a Email customer is 15 times higher. Now, if we consider the value of both it is 60% higher combined than email alone. Our

What Does This Tell Us?Spend limit to convert:13.50 for email subscribers9.90 for Facebook fans17.60 for Both email subscribers and Facebook fans

Revenue Target:If the target goes to 200kNeed 15k more revenue per month.Need 10,000 more email subscribers with changing performance.

AvgPurchaser ValueAverageValueEmail Only 15.00 1.50 Facebook Only 10.00 0.10 Both 20.00 2.40

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3) Engagement Click & Open Reach Dwell (or read) Time

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Think of this as a metric that measures interaction:Customer interaction Over time Across the whole customer base

Ie: subscribers engaged in quarter / Number of mailable subscribersneeds a period long enough for activity over several campaigns to be observed.

The same formula can be applied to click interactions, giving us click reach

Brands are using the resulting engagement segmentation to implement strategies such as quarantining (to rest those unengaged groups) or incentivizing (to add the final nudge to those who are actively engaged but not converting) before cleansing

Resource: http://dma.org.uk/uploads/EngagementDiscussionPaper_53c9066c5aecc.pdf

Dwell time:

A more granular degree of engagement measurement is (obviously) a measure of how long the recipient spends reading your email.

However isnt the aim to get them as quickly onto the website as possible? Perhaps useful for service emails that need attention.

A tool to note here is Litmus - categorize activity by duration so that an email opened for up to 2 seconds is glanced whereas one open for 2 to 8 seconds is skimmed etc. These definitions should be built for your own experience of course.

4) Device usage

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Responsive design is not a luxury; its a necessity- reading your email on a smartphone or tablet is the most popular activity for 78% of smartphone users (forrester)

Though some industries are seeing70% of email opens happening on mobile devices, every audience consumes email differently*http://www.emailmonday.com/mobile-email-usage-statistics

And often its not a case of mobile or desktop but both 23% of emails opened on a mobile device were later opened again (and 30% of those were on a different device). Opens and clicks may be high on mobile but conversions low but if using for browsing, still need to deliver a good experience. Dont forget about campaign specific mobile optimized landing pages

The metric here? - the devices and the Operating Systems your subscriber base are using

5) Post Click FunnelSource:Ometria

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In other words, the site conversion funnel. May well be outside of the email marketers control but theyre key to meeting objectives. Without some focus on the site conversion funnel, an assessment of a campaign is incomplete.

RD: A simple way to keep track of this is through Google Analytics- number of visitors to your website during the campaign period coming from email and taking into consideration new V returning ??

RD: obstacles between someone clicking on your email and completing your conversion objective? - Not campaign specific landing page, not optimized landing page

6) Time of Action

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This is measuring when the email was sent against when it was opened and when any conversion events took place.

And this one involves a change in mindset - send schedule should not be at the convenience of the brand but should rather be optimized for the customer

Were forever asked what is the best day and time to send emails the DMA tested this sending over a period of 6 months on different days and times, showing no discernible difference in engagement. However, technology allows us to use simple metrics of when they last engaged, improving this analysis the more you email them, to predict the best time to send. This is known as send time optimization.

That said; the best time to send an email about kitchen products, mixers was before great british bake off - This week In econsultancys weekly digital statistics, they shared that during the Great British Bake off there was a 240% rise in searches for Kenwood mixer. The product being used in the final..

7) Value of an email addressThe total revenue generated from email campaigns / average size of the overall email list over the period of assessment

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Value of an email address

The total revenue generated from email campaigns (whether directly or extended to include the halo effect too) which can be divided by the average size of the overall email list over the period of assessment (say, a year or 6 months). This gives us revenue per email address from which we can subtract the cost of acquiring an email address.

A partner we work with offers a solution to convert, very effectively, customers entering your store into data rich email addresses. When reviewing these data collection solutions, clients find the above data very useful in presenting to management. Emocial Oddici Hawkins Bazar http://www.emocial.eu/wp-content/uploads/2013/08/Hawkins-Bazaar-Case-study.pdf

It will be cost me 15 to acquire the email address, however the yearly value of the customer is 45. This is maths any CFO can get on board with. What is the value of email address to your business?

* Indicative features and services that may be available in future marketing automation platformsThe five stages of marketing automationWhere is your business on the journey?

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Marketing automation involves a range of people and suppliers working together over a period of time to set up, monitor and improve the rules and data that automates marketing. As the level of automation increases the features and functions used grow in elegance and complexity. Marketing automation becomes a board level item with costs and justification aligned with business success.The marketing automation platform becomes key channel for customer insight and a central hub of business communication.115

Marketing automation the dotmailer way

dotmailer is a best-of-breed email marketing automation platform. It is enriched with features that allow marketers to create automated campaigns with just a few clicksAt the heart of all we do is data- Import data- CIM- API- CRMThen the clever bit of automation logic- Segment & Triggers - Insight & Behavioral- Transactional data - Lifecycle campaigns

And finally the delivery of the message- Email- SMS- Social- API- CRM- Ecommerce platform

How dotmailer works

DataMessageLogicAnd its built to integrate seamlessly with other best-of-breed systemsAnnual results presentation 2013/2014

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At a glanceUsed for various collection activitiesCan be annoying if over used

Features includeData collection Begin welcome series

Results 400% increase in email collectionAVG 43% increase in Order Value

Cost Estimate200 - 500 setup50pm

Survey and formsCabbages and Roses

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Annual results presentation 2013/2014At a glanceSeries of communicationsDrive content and reaffirm purchase decision

Features includeData collection Variated content based on purchase behaviorStronger messages for low level purchasersMultilayer program to match 14 week journey

Results 77.36% repeat purchase against control cell50% increase in return visits to website vs control cellAward winning

CostAVG Cost

Welcome Program Content Dove Spa

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At a glanceOfficially launched in Oct 11The Harry Potter of emailOver 100 customers

Features includegeoTargetted contentDevice targeted contentReal time A/B testing

Results Autotrader 93% Increase in engagementBest Western App download Increase by 143%

Cost1000+ Per Month

moveableinkAutoTrader

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At a glanceTarget Audiences as you would in displayOptimise for location, device etcThird party

Features includeThird Party Very Targeted content Specify demographics

Results CTR lifted by 5-150XMonestise email communicationsReduced initial CPC by 69% ($5.95 to $1.85)Engagement 5-10X online display

CostAVG Cost

Live IntentDisney

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At a glanceApple specific Bluetooth techLocation based marketing

Features includeLast several yearsGuide shoppers / customers / guestsPaid for specific content?

Results 700M IOS Devices 65% of passengers arrive at their gate early because they are worried about being late or getting lost.%

CostAVG Cost

iBeaconVarious

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https://econsultancy.com/blog/65221-ibeacon-trials-13-brands-trying-to-find-a-use-case#i.zwbxc2n98dwtum121

Hitting the Mark Email marketing best practice and how top retailers apply it.

Email Automation How businesses are using automation effectively and learnings

The Purchase Journey Email, Ecommerce, what your user goes through when purchasing and post purchase.

Other resourcesdotmailer

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Conclusion

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Gone through what they teach you, how to translate this to optimize future campaigns is my challenge to you & amend the status quo

*an understanding and consistent use of these metrics will help drive improvements in areas such as creative, deliverability and list hygiene.

Questions?Matthew McClellandChannel Relationship Manager@dotmailer

Thank you for your time. Are there any questions?

Any questions?

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Spotlight - The human behind the machine

Technology

Transcript of Spotlight - The human behind the machine