How Marketing Analytics Is Evolving
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1 How Marketing Analytics Is Evolving Bill Franks Chief Analytics Officer 1 Copyright 2017 IIA & Bill Franks All Rights Reserved
2 What Is The True Product? Clothing & sportswear aren t the primary focus any more 2 Copyright 2017 IIA & Bill Franks All Rights Reserved
3 Combining Traditional & Analytics-Based Products Loyalty can be cemented via analytic apps 3 Copyright 2017 IIA & Bill Franks All Rights Reserved
4 Connected Products Offer Powerful New Insights For example, which product features do customers prefer (or fail to use) in practice? Image source: Teradata 4 Copyright 2017 IIA & Bill Franks All Rights Reserved
5 Location Based Offers Can Be Powerful Precisely target just the people fitting your target while they are sitting at the event! 5 Copyright 2017 IIA & Bill Franks All Rights Reserved
6 Innovative Ways To Capture & Monetize Data Consider AMC Story Sync 6 Copyright 2017 IIA & Bill Franks All Rights Reserved
7 Keep An Eye Out For New Capabilities People are always coming up with new ways to collect and analyze data 7 Copyright 2017 IIA & Bill Franks All Rights Reserved
8 New Algorithms Will Lose To New Information Almost Every Time Prioritize testing new information over testing new methodologies with old information 8 Copyright 2017 IIA & Bill Franks All Rights Reserved
9 Three Ways To Drive Value With New Data Add additional power to existing analytics processes Identify entirely different problems to solve 9 Copyright 2017 IIA & Bill Franks All Rights Reserved Identify new ways to solve existing problems
10 Challenge Your Assumptions 10 Copyright 2017 IIA & Bill Franks All Rights Reserved Image source: History Channel
11 The Perils Of Marketing Attribution If methods aren t different from each other (or from random) then are you adding value? Channel 3 Channel 2 Channel Random Method 3 Method 2 Method 1 11 Copyright 2017 IIA & Bill Franks All Rights Reserved
12 All Is Not Lost! There is great value in marketing attribution data just in different ways than expected The detailed paths that customers take are far more important than aggregate estimates 12 Copyright 2017 IIA & Bill Franks All Rights Reserved
13 Follow Each Customer s Journey Transactional data, web data, customer service data, application data, social media data, and more can be combined 13 Copyright 2017 IIA & Bill Franks All Rights Reserved
14 Make The Best Use Of Today s Many Channels Omni-channel marketing is not the same as all-channel marketing Social Media Loyalty Programs Online Retail Delivering coupons 10 ways is still simply just delivering a coupon! Mobile Mail Image source: Microsoft Clipart Contact center Account Managers 14 Copyright 2017 IIA & Bill Franks All Rights Reserved
15 Perfect Data Doesn t Equal Perfect Predictions 15 Copyright 2017 IIA & Bill Franks All Rights Reserved
16 Choose The Right Metric To Optimize 16 Copyright 2017 IIA & Bill Franks All Rights Reserved Changing tires more often actually led to a large increase in total mine yield
17 Learn From The Tortoise & The Hare Culture can be changed one metric at a time Culture trumps data. David Schmidt, IHG 17 Copyright 2017 IIA & Bill Franks All Rights Reserved
18 A Picture Is Worth A Million Pieces Of Data! Imagine verbalizing the information conveyed through a map without using a map! 18 Copyright 2017 IIA & Bill Franks All Rights Reserved
19 See A Story That Words Can t Tell Effortlessly The right visuals make all the difference Image source: Wikimedia commons 19 Copyright 2017 IIA & Bill Franks All Rights Reserved
20 Multi-Genre Analytics Are Powerful Combining results from multiple approaches yields better results Text Analytics + Statistical Modeling 20 Copyright 2017 IIA & Bill Franks All Rights Reserved + Graph Analytics
21 Yes, AI Is Analytics It is not something totally different 21 Copyright 2017 IIA & Bill Franks All Rights Reserved
22 AI Is Part Of The Analytics Revolution! AI is being industrialized and operationalized from the start 22 Copyright 2017 IIA & Bill Franks All Rights Reserved
23 Deep Learning Starts Dumb Model says: It s a cat! But then uses brute force to get very smart! 23 Copyright 2017 IIA & Bill Franks All Rights Reserved
24 It Is Possible To Go Too Far A suit of sensors for a perfect, full-body fit just didn t fly! 24 Copyright 2017 IIA & Bill Franks All Rights Reserved
25 Three Critical Questions About Privacy Standards 1. What is legal? 2. What is ethical? 3. What will customers / consumers find acceptable? Ignore these questions at your own peril! 25 Copyright 2017 IIA & Bill Franks All Rights Reserved
26 To Succeed, Embrace Discovery Analysis A discovery approach is necessary to find new and impactful analytics Confirmatory Analysis Examining predefined problems Assessing specific hypotheses Business problem well defined Aim is to validate a theory Discovery Analysis Full scope not defined Interactively evolving hypotheses Business problem is developing Aim is to identify new theories 26 Copyright 2017 IIA & Bill Franks All Rights Reserved
27 Invest Differently: Fund Portfolios, Not Projects Diversify your risk to succeed Too little risk can be as devastating as too much risk 27 Copyright 2017 IIA & Bill Franks All Rights Reserved The concept is similar to retirement planning versus venture capital!
28 Research & Development Is Not Random Hacking Discovery analytics are a disciplined, focused research and development effort, with intent to eventually monetize findings 28 Copyright 2017 IIA & Bill Franks All Rights Reserved
29 Create An Internal Shark Tank! Regularly have people pitch their latest ideas for innovative analytics, and also report back on progress for past ideas 29 Copyright 2017 IIA & Bill Franks All Rights Reserved
30 Analytics Won t Replace Execution Without acting on findings, no value will be realized! 30 Copyright 2017 IIA & Bill Franks All Rights Reserved
31 Improving Our Lives By Freeing Our Time Children today will not be legally allowed to take control of a vehicle when they are middle aged! 31 Copyright 2017 IIA & Bill Franks All Rights Reserved
32 Key Takeaways Use the many new, powerful data sources available today Look beyond traditional marketing analytics approaches Identify ways to solve old problems in new ways Artificial intelligence is the newest analytics growth area Budget for innovative analytics as form of R&D 6 Make sure there is always an action driven, not just an insight 32 Copyright 2017 IIA & Bill Franks All Rights Reserved
33 ABOUT IIA COMPETING ON ANALYTICS FROM THE BEGINNING Founded in 2010 by Jack Phillips and Tom Davenport with the belief that... Jack Phillips CHIEF EXECUTIVE OFFICER Editor of Enterprise Analytics Competing on analytics is the future Success will be a strategic imperative, but difficult to achieve Success will require specialized and leveraged expertise Tom Davenport CO-FOUNDER, BOARD MEMBER, FACULTY Author of Competing on Analytics Industry recognized foundational research from IIA s Tom Davenport, Robert Morison & Bill Franks Bill Franks CHIEF ANALYTICS OFFICER Previous CAO Teradata Author The Analytics Revolution Robert Morison LEAD FACULTY Co-Author of Analytics at Work 33 Confidential Copyright Copyright 2017 IIA & Bill 2017 Franks IIA All All Rights Rights Reserved Reserved 33
34 WHY IIA? SOLUTIONS FOR ANALYTICS SUCCESS The IIA Analytics Performance Suite IIA helps develop and sustain enterprise analytics capabilities that drive performance and create competitive advantage RESEARCH & ADVSORY NETWORK IIA focuses on the key levers of success and maximum return: EXPERTISE üaccess to Expertise üskills Development ümeasurement MEASUREMENT SKILLS DEVELOPMENT CAPABILITY ASSESSMENTS ADVISORY CONSULTING, EXECUTIVE COACHING, WORKSHOPS, & TRAINING 34 Confidential Copyright Copyright 2017 IIA & Bill 2017 Franks IIA All All Rights Rights Reserved Reserved 34
35 Further Questions Or Comments? 35 Copyright 2017 IIA & Bill Franks All Rights Reserved
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