Date post: | 20-Jan-2015 |
Category: |
Business |
Upload: | dmadetroit |
View: | 133 times |
Download: | 0 times |
Applications of Social Media to 1-1 Marketing: Listen, Then Talk
Magnify Analytic Solutions: Keith Shields, Chief Analytics Officer
Roni Leibovitch, Manager, Digital Intelligence Mindy Deatrick, Lead Consultant, Decision Sciences
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
About the Presentation…
• Applications and Cheerios: Listen, PREDICT, then Talk
• Tons of applications, many of which are devoted to broadcasting messages to consumers
• “Listen, Then Talk”: Social Listening
• From Dr. Cliff Lampe, Professor, UM School of Information: “Social Media should NOT
just be used as a broadcast channel.”
• From Sandy Carter of The Social Media Examiner: “The first step when considering
social analytics is to establish a listening strategy. In social media, listening acts as a
guide through the ever-changing and interesting world of the blogosphere.”
• Difficult to find a definition of social listening, so I’ll make one up (next slide)
2 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Our Perspective…
• Social Listening: The discipline of mining social media outlets for user-provided textual data containing predictive signals about customer behavior.
• Our aim: predict consumer behavior, enhance 1-1 engagement
• 2012 AIMS: Quantifying the "Buzz" Effect: Integrating Social Media with Loyalty &
Defection Models
• http://www.slideshare.net/dmadetroit/aims2012-marketing-associates-quantifying-
the-buzz-effect
• Retention of customer data, predictive models built off that data, and targeted campaigns based on those predictions are at the heart of the competitive CRM advantage.
• In absence of accurate predictions of customers’ behavior, what makes us think they
will accept a particular offer or respond to our messaging?
• Data scraped from social media outlets are highly predictive.
3 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
The Pervasive Interest in Social Media
4 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• A lot of it, I think, is attributable to big, impressive numbers. Again from Dr. Cliff Lampe:
• Facebook has 1.2 billion users, Twitter has 500 million, LinkedIn has 200 million.
• And they are engaged: Facebook users share 684,000 pieces of content per minute, YouTube
users upload 48 hours of video per minute, and Twitter users send over 100,000 tweets.
• BTW, in our 2012 presentation to DMAD, we (Roni Leibovitch, Mindy Deatrick, Keith Shields)
noted that, per year, roughly 35,000 Twitter users express interest in buying a Ford.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Social Listening
5 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• (More specific to our clients) The discipline of mining social media outlets for user-provided textual data containing sentiment about, or potential inclination towards, relevant products or services.
• Back to our 2012 presentation for an example:
• Got my new computer yesterday and can't wait to get my new 2012 Ford Focus SEL in 4-6
weeks! 23 Apr
• Am test driving Hondas and Fords 7 Apr
We’d like to have a mechanism for intervening here. On April 7 this person indicated he was facing a choice between buying a Honda and buying a Ford.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Social Listening
6 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• What’s missing from the definition and the example is what you do with the sentiment. What’s our STRATEGY?
• Sandy Carter of The Social Media Examiner tells us the final step in establishing a listening strategy is to create a “social business strategy”:
• “Listening is not just a discipline. It is an embodiment of a social business strategy
to address the mass volume of data every company faces today and offer a means for evaluating this information to drive business results.”
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Our Social Business Strategy
7 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
Before discussing tactical applications we’ll take a stab at a social business strategy based on the work we’ve done for clients to date. There are a few elements to it:
1. Understand that sentiment captured through social listening is a strong signal about likely customer behavior (from a purchasing standpoint).
2. Establish processes for retaining as much customer data as possible (twitter handle, email, name, interests) as well as his/her tweets, statements, opinions, etc…
3. Use the signal in the customer’s data and sentiment to accurately predict the likely customer behavior (“social analytics”) and, on a 1-1 basis, create more enlightened and targeted communications with customers.
4. Create links from social media data repositories to operational systems at customer touch-points so “social analytics” can be used in real time.
5. Enable measurement and then measure.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Tactical Applications: Improve Your Predictive Models
8 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• Take the emails from the customer base, and using the “find friends” feature, find the matching Twitter handles…where we can.
• Follow your customers and LISTEN. Use text mining to find tweets related to your product, classify the sentiment as good, bad, or neutral. Store the statement and sentiment in the customer data warehouse, just as you would store a customer’s survey response.
• Rebuild your suite of CRM models – include the sentiment variable. Empirically determine the nature of the relationship between good / bad sentiment and loyalty (or defection).
• Result: good tweeters are more loyal than neutral tweeters, who are more loyal than bad tweeters, who are better than customers who don’t tweet about your product.
• Why is it a big deal to improve CRM predictive models? Next slide a refresher.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Why You Want to Improve Your Predictive Models (1)
9 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• (Forgive the bandwagon technique) Well…everyone else wants to:
• A recent survey of business technology professionals (see below) indicates that much of
the interest in Big Data and Analytics is driven by (or at least correlated with) the desire
to predict customer behavior:
CRM Predictive Analytics
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
No Model
Use a Model
Profit = $10,000
Profit = $14,000 40% improvement
Population Organic
Take Rate Offer
Take Rate Incremental
“Takers”
100,000 10% 11% 1,000
Incremental Revenue
$250,000
Model Rank
Population Organic Take
Rate Offer
Take Rate Incremental
“Takers”
1 25,000 18% 19.80% 450
2 25,000 14% 15.40% 350
3 25,000 6% 6.60% 150
4 25,000 2% 2.20% 50
Incremental Cost
Incremental Profit
$240,000 $10,000
Incremental Revenue
$112,500
$87,500
$37,500
$12,500
Incremental Cost
Incremental Profit
$104,000 $8,500
$82,000 $5,500
$38,000 ($500)
$16,000 ($3,500)
Why You Want to Improve Your Predictive Models (2)
• An example involving a pre-approval program: An untargeted (no model), incentivized loan offer to 100,000 customers increases the “take rate” by 10%.
• The revenue per incremental loan is $250.
• The cost of communicating the offer to 100,000 consumers is $20,000.
• The cost of the incentive is $20 per loan.
• When we apply a predictive model, we split the population into 4 groups (1=most likely to
take…4=least likely to take)
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Tactical Applications: Engage “In Market” Customers With Private Offers
11 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• LISTEN to tweets: Use text mining to find Ford “in market” tweets, route the tweets, along with Twitter handles, to the customer relationship center.
• THEN TALK: Engage the customers through Twitter with pre-determined offers for customers expressing “in market” sentiment.
• Design the communication so that response can be easily attributed and measured:
AUTHOR FOLLOWERS COMMENT DATETIME
Send offer 2 Send info Ignore
YOSHRAMOS 6The 2012 Lincolns are handsome!
I want to have one :)9/21/2012 17:10 Send offer 1 Send offer 2 Send info Ignore
JAKUNTRYGIRL 252I want a new Lincoln...just
because it parks itself. :\9/21/2012 11:16 Send offer 1
Send offer 2 Send info Ignore
_AINTSHELOVELY 95I really want that Black on Black 2012
Lincoln MKZ. Sexy.9/21/2012 0:19 Send offer 1 Send offer 2 Send info Ignore
CHELSEYMMILLER 46@chamoubooo3 I'm between a 2012
Lincoln MKZ and a Volvo S609/21/2012 19:19 Send offer 1
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Tactical Applications: Prospecting Student Loans
12 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• Use the API’s to find people of the “student age”. Gather their interests and hobbies is also a good thing to do – remember that prop schools (DeVry, ITT Tech, Art Institutes, etc…) are also expensive and are Title IV eligible.
• Obviously here the sentiment of the tweets and posts is also telling.
• The need for forward-flow programs for private student loans is increasing but the rate at which they are offered is decreasing. The student lending industry is virgin territory for database marketing and CRM analytics.
• And the student lending is not a trivial piece of the financial services sector: $1 trillion in outstanding student
debt, #2 behind mortgages.
• 70% of current college students have a loan, 90% of those loans are government originated.
• Since 1986 the cost of living has doubled in the US, and the cost of education has increased by almost 500%.
• Who is more active in social media than people of “student age.” No one quite frankly.
• 83% of 18-29 year olds use social networking sites.
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Tactical Applications: Evaluating Credit Risk (1)
13 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• Using the student lending example as a springboard, can we use social listening more broadly in the financial services industry?
• The answer is yes if we can use it to help us evaluate risk.
• Analytics in the Financial Services industry is all about evaluating risk for the purpose of
understanding how to price and set reserves.
• Back to the Google Twitter search (this guy has 470 followers): My loan servicer
threatened to default on my loan. I found a way around it though. I logged into their site
and typed loan.preventDefault();
• Rightly or wrongly, many employers think what you post on Facebook, what you say , and how you say it are predictive of what kind of employee you’ll be.
• So by extension…
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Tactical Applications: Evaluating Credit Risk (2)
14 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• Sameer Desai, Homer Simpson, and crayons
• Time at address and checking accounts
• Originations risk, behavioral risk, and pricing
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Closing Remarks
15 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• Social Media contain powerful predictive signals about customer behavior. Capturing those signals through social listening can help you create more informed, more fruitful 1-1 engagements with customers.
• Social listening strategies must align with, and be integrated into, your predictive analytics and CRM strategies.
• Acquiring and maintaining social listening capabilities requires investment.
• Dr. Cliff Lampe (again): “don’t simply outsource to the youngest member of your
organization.”
• But much of this investment is simply and extension of the investment you’re already
making in CRM: data retention, infrastructure, analytics, and measurement.
Connect with and mention @MA_Detroit on Twitter and stop by the Magnify booth to stay up-to-date on social listening news and updates!
magnify • simplify • amplify MagnifyAnalytic Solutions
DMA Detroit 2013: Applications of Social Media to 1-1 Marketing
Questions
16 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.
• At this point I will listen.
777 Woodward Ave
Suite 500
Detroit, MI 48226
p 313.202.6324
f 313.965.2800
Sameer Desai
313.202.6306
Christina DeVey
313.202.6357
Betsy Berens
313.202.6343
17 Copyright ©2012 Marketing Associates LLC. All rights reserved. Magnify is a division of Marketing Associates, LLC.