Data-driven marketing

Transcription

1 Data-driven marketing How we can help you to improve marketing, optimise budgets and understand customer value Page 1

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3 Contents Section one: Our data-driven marketing services 04 Section two: Our speciality areas 06 Personalisation 08 Customer value 09 Optimisation and attribution modelling 10 Data management 11 Section three: Our work 12 Swinton Insurance 14 Jet 2 15 Avios 16 Informa BI 17 Aviva 18 Hoseasons 19 Section four: Our people 20 Our other consulting specialisms 22 Publication date May Copyright Jaywing plc All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Page 3

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5 Our data-driven marketing services Jaywing s team of over 60 highly experienced analysts and data scientists are responsible for creating insights from large data sets to help brands meet shifting customer needs and achieve competitive advantage. We use a range of technologies from industry standard reporting packages to sophisticated analytical and modelling software, new analytical programming languages, and even our own Big Data platform. Our Big Data private cloud is an ideal testing ground, keeping data secure while we analyse it using both proven methodologies and new techniques and technology which we have developed ourselves. We don t innovate for the sake of innovation all our work is driven by a desire to increase the value to our clients by using the right balance of traditional and emerging approaches and technologies. We operate independently of data and system companies and offer impartial advice. This ensures you get what you need, not what we choose to sell, and each project we deliver is bespoke to your needs. We are expert at working with your existing technology, and implementing this to ensure a smooth integration, to enable you to get up to speed as quickly as possible. We have a wealth of experience implementing insights within new or existing business processes to ensure they are actionable and drive value. Many of our specialists are trained to PhD and Masters degree level in mathematics and statistics and have vast commercial experience. We work pragmatically to deliver value at the earliest opportunity and our focus is on implementation. jaywing.com Page 5

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7 Our speciality areas Our long heritage in data-driven marketing means a keen focus on measuring the performance of marketing spend across all channels, underpinned by structured testing and the need to measure and prove return on investment. Most marketing spend nowadays is measurable, and we see the role of data as supporting better data-driven decisions and providing the evidence of what marketing works and what doesn t. This ultimately allows our clients to maximise their marketing spend against their set objectives and understand their customers better to deliver highly personalised marketing. Our key speciality areas include: Personalisation Customer value Optimisation and attribution modelling Data management jaywing.com Page 7

8 Personalisation Personalising a customer s relationship with a brand is no longer a choice for brands looking to achieve long-term loyalty. If you are going to succeed in achieving both brand stand-out and return on investment, you need to consider customer-centric strategies that provide consumers with the best level of customer experience. Most of what you need to make this a reality is within reach, with more actionable data, affordable technology and expertise available than ever before. Customer data is continuously being collected across the customer journey and includes web browsing, search, basket abandonment, purchasing history, preference centre, demographics and communications response data. But many organisations lack the resources to pull together detailed individual-level data to unlock the value from digital interactions and predict future preferences. Much of this digital data is unstructured, in large volumes and hidden amongst a lot of irrelevant data all of which presents a big challenge in building a data architecture that supports the level of detailed analytics leading brands are now starting to achieve. Through advanced analytics, we can understand what motivates each customer, how to use their previous buying behaviour to predict future preferences and what content to show each individual customer. You can then use this deep insight to make personal offers with pinpoint accuracy. This can be achieved using models or newly developed techniques or algorithms that deliver personalisation at an individual level. At Jaywing we specialise in evaluating which elements of your data are best suited to which channels; which are actually proven to make a difference; and which offers you can target to each customer. We will drill down into the data on your customers interactions with your brand across all touchpoints and devices. This will enable us to build up a complete picture of customer and prospect relationships with your brand, both before and after purchase. When we work with you, we ll help design, implement and evaluate tests to measure the performance of your personalisation activities, enabling you to quantify the benefits of future investment. Once implemented as part of business as usual processes, we ll monitor progress to ensure you continue to achieve maximum value and the required ROI. We have found that personalising your marketing can improve performance over a generic customer experience by as much as 300% through: Increase customer engagement and enhanced experience with your brand Improved conversion rates across channels Enhanced customer loyalty, retention and increased lifetime value Page 8

9 Customer Value Customer value management is about making customer decisions based on their long term value to an organisation, rather than looking at short term measures such as initial purchase behaviour. It allows you to make customer decisions that are most likely to have the maximum positive impact on a customer s value and focuses your acquisition activity by targeting prospects with high value potential. Marketing decisions based on value are likely to be different to those based on short term measures, by focusing investment on customer relationships that will deliver over the long term, rather than those that look profitable but prove to be costly to manage or with little potential for cross and up-sell in the future. We believe that successful value management starts with the development of a dynamic customer value model that must include estimates of customer cost, revenue and attrition to derive a value for each customer. Some organisations have developed a view of value based on past behaviour and current product holdings. This is a good starting point because these elements provide a sound basis on which to begin to understand what might happen in the future, but a static contemporary view of value is not enough. Value or profitability, should encompass an estimate of future revenues from products already held and those likely to be purchased in the future, which is then discounted against a range of current and future costs (attrition is a special cost as it removes all future revenues). Lending institutions have additional costs to consider given the risk of customers defaulting on loans. However, our extensive experience in risk and financial services means we can effectively bring risk into the value model and remove the traditional barriers between risk, marketing and finance teams over balancing revenues for offers, against credit losses. Customer value management allows you to: Prioritise investment in each individual customer Target acquisition activity to deliver high value customers Take a long-term view of customer relationships Personalise offers and rewards for customers Understand the most cost effective channels for each customer jaywing.com Page 9

10 Optimisation and attribution modelling Optimisation All business decisions are limited by constraints these are typically budgetary constraints that directly impact the amount of money decision makers have to sell profitable products and services or manage risk in an organisation. Decision makers are left with a series of choices about who to target, with what products and services, through which channels, how frequently, and how much to spend to encourage conversion. Ultimately, it is a quest to maximise return on investment. Data and insight can help identify the most profitable offer to put in front of each customer unfortunately marketing and incentive budgets are constrained making it impossible to always make the best offer to the best customer. This might be for financial reasons (a constrained budget) and/or for practical reasons (a constrained call centre capacity). All businesses operate under a number of budgetary and logistical constraints, such as call centre capacity, overall marketing budget, the need to hit minimum volumes of new business or minimising risk, for example. Because budgets are constrained it s impossible to make the best offer to everyone, so trade-offs have to be made. Optimisation allows these trade-offs to be made so that return is maximised subject to the constraints that exist on budget, and also while recognising that minimum levels of business need to be won from the use of that budget. Optimisation enables you to maximise return from your investment by identifying the optimum combination of customer targets, products, channels and incentives based on cost and revenue. Attribution modelling Many brands have very little idea of the combinations of marketing activity which are most successful in driving sales. The most common attribution model used is last click wins which rewards only the last channel, but ignores other marketing approaches which have played a role in getting the customer to that point in the buying process. The closer the attribution model gets to understanding the reasons for purchase across channels, the more you will be able to achieve better sales performance through better allocation of marketing spend. By attributing value more realistically across all areas of marketing investment, important phases in the purchase journey, which are shown to drive purchase further down the line, can be supported with marketing spend. The result is the ability to make better choices on where to spend marketing resources to get the maximum sales performance. It can also help to identify opportunities where increased spend is most likely to drive additional sales. Jaywing has the skills and experience to gather the required data in order to develop bespoke and robust attribution models which you can then use to drive marketing value. Page 10

11 Data management When it comes to establishing new data management processes, it s easy to waste time and money on unnecessary technology. We can help you avoid that. Our consultants spend time learning your data environment as well as your goals and company culture to evaluate your organisation and make your data work for your business. The key is to fully understand what the requirement is before looking to what technology is needed to bridge any gaps. We often find that a given requirement can be delivered through re-use or alteration to the way existing technology is implemented. It is important to fit the technology to the requirements, and not fit the requirements to the technology, which is what we often see when the process is led too much by a software vendor. At Jaywing, we believe that data is the foundation of your business. Build a strong and secure data foundation and you have both the confidence to operate your business safely, and the ability to drive value. Our industry-leading data management approach brings data sources and systems together and lets you cleanse, transform and shape data for any business purpose whether for business intelligence, complying with regulations, marketing to customers or prospects, or managing risk. As you glean continually deeper insights from your data, you can embed that knowledge into your operational processes, build analytical models, share insights and automate decision making processes across the business. Eight ways we help organisations with data challenges: Data consolidation Delivering end-user requirements Data for reporting Data for analysis Big Data environments Connecting offline data with online data Data platforms Removing resource constraints through in-sourcing jaywing.com Page 11

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13 Helps me plan my life ahead... The story of the ISA The story of the ISA The story of the ISA Like to your r time? take you e? tim to etake Like to Lik take your time? jaywing.com Page 13 Page 13

14 Swinton Insurance Understanding customer value and price dynamics to improve customer take-up. Then The private car insurance market is heavily driven by price and the brands that achieve the best cut-through are increasingly the price aggregators. So how do insurance brands make sure they get the best market share of profitable business? It s a tricky balancing act between insurance risk, competitive pricing and margin undercutting the competition isn t always possible. Now Through our predictive models and optimisation techniques, Swinton is now able to understand the impact that different prices have on key metrics such as the propensity to convert, the likelihood to pay monthly and the probability of purchasing add-on products for each potential new customer or renewal. This now means that Swinton can offer the price that will generate the best possible outcome as well as driving the best income across all policies. What s more, our optimisation techniques enable Swinton to vary pricing strategy to optimise income subject to any constraints in the business such as call centre capacity and weekly conversion targets. Both of which mean Swinton Insurance can generate more granular and profitable strategies. Having achieved some impressive results, they ve made the case for applying more sophisticated pricing strategies, including price optimisation, to other areas of its business. Jaywing brings an acute understanding of some complex maths to complement our internal team, enabling the use of pricing optimisation techniques that have had a fantastic effect on our business. We re confident that our resources are used to best effect and our potential customers get just the right price for them. They re a great team and have been an integral part of Swinton for many years. Thomas Bradley, Head of Pricing, Swinton. Page 14

15 Jet2 How personalisation can increase sales by 30% and more. Then When we started working with friendly low fares airline, Jet2.com, in 2010, they only had operational ticketing systems. They wanted to increase their marketing and needed a single customer view. Quickly. Now So, in three months, we built a fully functioning marketing database. From this success, we were asked to help understand this newly available data and implement their first CRM programme. Which we did. In just 12 months. Now, through advanced data science, Jet2 understand what motivates each customer, how to use their previous buying behaviour to predict future preferences and how to make the most of the best buying windows when they are counting down to or returning from their trip. Jet2 can use this deep insight to make personal offers for destinations, hotels, activities and travel add-ons, with pinpoint accuracy. Right through to up-to-the-minute prices in s at the point of opening. Our insight was even used to reshape Jet2 s inventory. All of which has increased cross and repeat sales across their portfolio and made a significant contribution to profit and the bottom line. With great passenger benefits, Jet2. com is growing into one of the UK s best airlines, winning Best Short Haul Airline at the Globe Travel Awards for the last three years. jaywing.com Page 15

16 Avios Delivering a better understanding of customer value through an innovative analytical approach. Then To ensure Avios reward programmes remain sustainable, Avios need to be able to understand customers collection and redemption behaviour over the long term. This hinges on developing a robust methodology to predict the Ultimate Redemption Rate of Avios points for each customer account and the ability to process very large volumes of data to improve the accuracy of this, without sampling. Now We developed an innovative analytical approach to enable Avios to predict long-term distribution, redemption and expiration rates across customer points balances. The approach not only introduced a more intuitive way of allocating redemptions to awards, but also allowed discrete redemption and expiry profiles for a range of customer behavioural types to be determined. The analytical task involved large amounts of repetitive processing of over 15 million individual customer accounts and points data going back to a data set of c.1.5 billion rows. So we used our unique secure, cloud-based big data environment. Not only did this enable the use of more complex analytical processes, examining customers individually rather than in aggregated groups, but it made processing of the data achievable within commercial timescales at 200 times faster than on a standard processing environment. The outcome for Avios is the ability to derive more meaningful business insights and make better decisions about awards and redemptions within their Avios Travel Rewards and British Airways Executive Club loyalty schemes but more importantly, accurate accounting for future redemption on the balance sheet as every redemption is a cost that impacts P&L. When we met Jaywing for the first time, we were extremely impressed by the experience and quality of the analysts in the room and have continued to be so since. Jaywing has given us a platform that delivers more accurate forecasting and allows us to balance prudent financial management with investment and development opportunities that help us to continue to innovate our marketleading loyalty programme. Page 16

17 Informa BI Using data science to help Informa BI drive global value from customers and prospects. Then When we started working with global business intelligence specialists Informa BI, their Business Intelligence (BI) division had an incomplete view of the success of their marketing campaigns, particularly the wider impact across influencers, rather than buyers in the targeted businesses. That s why Informa BI were seeking partners to support the scoping and delivery of data analysis, cleansing and enhancement. Now We bought together over 38 million data records across three systems and four different business areas and combined this with over 400 million marketing data items to create an analytical dataset of 850 million events. We then analysed this data to identify the impact of marketing activity on product sales within targeted organisations over the last three years, for four of Informa BI s business verticals. We then went on to create a customer profile and segmentation model for each business vertical and applied this to the marketing prospect base for future targeting, based on strategies developed by Informa s marketing teams. Informa BI now have a much greater understanding of the buying habits of their customers, and where the value lies across the customer and prospect database, and this will ultimately help drive sales. They have a benchmark of activity and a roadmap to change the way products are marketed, and they have a clear and concise view of both the current customer base and the prospecting opportunity for each business area. We needed to select a partner who had both existing triedand-tested methodologies yet would also take an innovative and creative approach to the project. Jaywing were able to demonstrate their depth, breadth and expertise in data management and analysis, and their data specialist s also fit well with Informa BI profitfocused and action-oriented corporate culture. Jaywing had the right combination of analytical rigor, and clientcentred commercial knowledge and worked collaboratively with our internal team to create the best and most robust solution. Catherine Pendleton, Head of Data Enablement, Informa BI jaywing.com Page 17

18 Aviva Driving sales and engagement through integrated data-driven personalisation. Then Aviva s customers often had a relationship with just one of the General, Life and Health Insurance businesses. Which meant it was difficult to provide the kind of customer experience the Aviva brand aspired to, especially in an increasingly competitive market where loyalty was low. But Aviva knew that joining up customer data and communications across the three businesses meant investment. Now We created a Model Office to create a meaningful trial of a different way of working and communicating. First, we built a new database to bring customer data together and identified key customer segments. Then we layered the model office with a contact strategy and welcome programme, including a customer survey to capture things like renewal dates and retirement plans. This rich information combined with customer and policy data was used to match customers with the most relevant activity, assets and messages to create highly personalised direct mail, , outbound call communications and inbound call handling strategies. A team of multi-skilled advisers, recruited and trained by us, provided a single point of contact for both customer service and sales, supported by our online Agent CRM System. Content for each segment was tailored in terms of tone, visual style and relevance to appeal more closely to the people receiving it and improve engagement. In addition, the model office website provided a hub, encompassing everything Aviva offered to match all other communications. This new way of working generated 67% more cross-sales, customer opt-in increased by 139% and Net Promoter Scores increased by 47%. The project also won numerous awards. Page 18

19 Hoseasons How personalisation delivered a 245% ROI. Then Hoseasons holiday cottage brochure was bursting at the seams and in danger of becoming too big for the letterbox. They needed a new approach but any change to the successful big book mailing meant a major strategic shift, so we had to prove the case. Now Using English Country Cottages to test our idea, we developed a statistical model that meant we could match customers with the cottages most likely to appeal to them, based on attributes of previous booking behaviour. We tested two new slim-line brochures, a Standard Half Book of randomly selected properties and a model-driven Tailored Half Book, against the standard 660-page book. With each half-book at 244 pages, they cost 64% less than the standard brochure. What s more, the tailored half book achieved a 10% lower cost of sale than the standard half book. That amounted to an initial 245% return on the investment. We extended and refined the approach across all of Hoseasons holiday cottage brands and introduced hyper-personalised s showing evocative photos of previous holidays and matching suggested properties based on attributes (such as local interests, price or facilities). The hyper-personalised s increased click-throughs five-fold and the work won Gold at the Travel Marketing Awards, among other commendations. jaywing.com Page 19

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21 Our people Our team of over 60 specialist consultants have spent their careers on both sides of the fence, facing the same types of issues you face and are expert in our key speciality areas. They know what it means to go from idea to implementation and relish the challenge and they like to see a project through from the beginning to the very end. We also like our project teams to be flexible so that we can meet the demands of your project with the right resource at the right time. At the helm is always a lead consultant, which means they add to and shape a project throughout. We believe in getting you to initial results in weeks not months by taking one step at a time, on a prioritised path and delivering value at each key step on the way to your ultimate goals. We pride ourselves on being easy to talk to and engage with. We don t have a fixed or inflexible approach to managing and analysing data, rather a series of methods to choose from, according to the circumstances. Where we have been frustrated by technology in the past, we have developed our own solutions to overcome the problems. Such as our Big Data platform and our digital tracking software Almanac. Put simply, our aim is to help our clients find new ways to approach business and make changes for the good. Above all we are pragmatic and realise the importance of hitting the ground running, delivering value early in the engagement. If you would like to find out more we d love to hear from you. hello@jaywing.com or call us on The next step in data-driven marketing How to drive marketing value with data science techniques You may also like: Request a copy of our latest whitepaper The next step in data-driven marketing. Please hello@jaywing.com jaywing.com Page 21

22 Our other consulting specialisms Brand and creative strategy Product strategy Content and social strategy Marketing and advertising strategy UX and process improvement PPC, SEO and search integration Customer strategy Data infrastructure, build and management Credit risk and regulation strategy Technology, platforms and systems Business change Business case development To find out more, please visit jaywing.com or get in touch with us by ing Page 22

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