Introduction to Marketing Intelligence Adding Real Value to Your Marketing Department
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
“Every week, I have to go to a gun fight, the senior executive leadership meeting, and I am tired of going to a gun fight with a knife.”
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Marketers are struggling with their Marketers are struggling with their budgets and are constantly being asked to do more with less to do more with less.
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
For marketers, the challenge of providing concrete results is amplified providing concrete results is amplified since brand and awareness are “fuzzy” and are not directly related to sales and are not directly related to sales revenues
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
During this course, I will give you examples of 252 companies that make up over US$ 53 billion of annual marketing spending
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Marketing Intelligence Framework
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Some Food For Thought
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
55% of the marketing executives surveyed reported that their staff does d d h h i ff d not understand essential marketing metrics
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
80% of organizations do not use marketing intelligence
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
What you will learn in this course is that this can all be changed without a that this can all be changed without a major investment in time or resources by focusing on measuring the right by focusing on measuring the right metrics in the right way
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
This course is intended for anyone in marketing who wants to significantly improve their marketing performance and justify marketing spending
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Now, we could talk about the 50 to 100 metrics applicable to marketing, but I will talk about 15 that are really important
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
I will teach you how to use these metrics to quantify the value of marketing and radically improve marketing performance
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Why is marketing intelligence so h i k i i lli difficult for many organizations? y g
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Reasons range from “we don’t know how” to the challenge that branding and how to the challenge that branding and awareness marketing activities are fuzzy and don’tt directly impact sales revenues and don directly impact sales revenues in a short time period
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
International Data Corporation (IDC) estimates that data storage is growing at 60% annually, which tells us that stored data is doubling every 20 months
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
The Different Scopes of Intelligence
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
The Marketing Divide
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
A Story of 3 Electronic Retailers
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
One day, the CMO of Best Buy was asked O d h CMO f B B k d – Who is your primary competitor?
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
You would think that he would answer You would think that he would answer – “Circuit City,” but instead he said – “Wal Wal‐Mart Mart”
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
What?!?! Wh ?!?! Walmart?
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Wal‐Mart is the world’s largest retail ; gy chain; and with amazingly efficient supply chain and economy of scale, driving price and margins to the bare driving price and margins to the bare minimum
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
But why not Circuit City? But why not Circuit City? He said – “They He said – They just don just don’tt get it. get it ”
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Circuit City Circuit City’ss marketing strategy was to marketing strategy was to constantly run sales. Yes, this drew customers to the stores and drove sales h dd l revenues, but competing with Wal‐Mart – running sales actually lost the business money – y negative profitability! g p y
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Circuit City went bankrupt and was i i i b k d liquidated in January 2009 q y
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Why is Best Buy different? How did it survive? o d d su e
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
A significant amount of the marketing budget is spent on demand generation marketing – g designed to get customers g g into the stores
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
But Best Buy spends more money on But Best Buy spends more money on branding, CRM and infrastructure to support Marketing Intelligence support Marketing Intelligence
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Best Buy also keeps score Best Buy also keeps score – measuring measuring the results of marketing initiatives to optimize its marketing activities optimize its marketing activities
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Best Buy marketers analyze customer Best Buy marketers analyze customer purchasing characteristics and demographics on a store by store basis demographics on a store‐by‐store basis.
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
How did that help?
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
They identified one segment in certain geographies that they called “Jills”
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
“Jills” are soccer moms who may be working but also run the family. She also makes the primary electronics purchasing decisions for the household
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
How did the “Jills” help Best Buy?
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Best Buy customized the marketing in specific stores where there were a significant number of “Jills” in the surrounding population
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
This meant specialized in‐store advertising direct mail and changing the advertising, direct mail and changing the product mix to appeal to them, which lead to a large percentage increase in lead to a large percentage increase in these store’s sales revenue
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Marketers that “get” marketing have a p g competitive advantage and those who do not gradually lose market share and/or p profitability until they are swallowed by y y y competitors or go out of business
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
Some Statistics
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
There is an existence of a divide There is an existence of a divide between market leaders and f ll followers
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
What Do We Know From Our Research ¾
¾
¾
¾
¾
53% of organizations do not use forecasts of campaign return on marketing investment (ROMI), net present value (NPV), customer lifetime value (CLTV), and/or other performance t lif ti l (CLTV) d/ th f metrics 57% do not use business cases to evaluate marketing campaigns for funding 61% do not have a defined and documented process to screen evaluate and prioritize marketing campaigns screen, evaluate, and prioritize marketing campaigns 69% do not use experiments contrasting the impact of pilot marketing campaigns with a control group 73% d 73% do not use scorecards rating each campaign relative to t d ti h i l ti t key business objectives prior to a funding decision.
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
A majority of marketing organizations do f k d not have professional processes in place to manage marketing and that most do not use marketing metrics in their day‐ g y to‐day marketing activities
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
The divide is even more pronounced The divide is even more pronounced when we look at marketing organizations’ use of data organizations use of data
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
How Marketing Uses Data ¾
¾
¾
¾
¾
57% do not use a centralized database to track and analyze their marketing campaigns 70% do not use an enterprise data warehouse (EDW) to track customer interactions with the firm and with marketing campaigns 71% do not use an EDW and analytics to guide marketing campaign selection 80% do not use an integrated data source to guide automated 80% do not use an integrated data source to guide automated event‐driven marketing 82% never track and monitor marketing campaigns and assets using automated software such as marketing resource management (MRM)
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
The goal of this course is to give you transparent metrics tools examples transparent metrics, tools, examples, and a road map to actually do data‐ driven marketing and apply marketing driven marketing and apply marketing metrics in your organization
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
The Metrics And Why They Are Important To Marketers
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled
‘‘Half the money I spend on marketing is wasted—the problem is I don’t know which half.’’ ‐ John Wanamaker
http://emagine‐group.com
Brand Focused, Socially Active, Digitally Enabled