Amping Up Campaign Performance Segmentation in a cross-channel world
Nancy Shaver Presented by:
No shortage of segmentation approaches
• Blurred customer focus
• Cumbersome strategy and planning
• Campaign and programs are not optimized
• Customer experience is less than ideal
• Unclear measurement across channels
• Doesn’t harness the power of “Big Data”
Putting the customer at the center The multi-dimensional advantage
Who are my…? • Customer segments
• Valuable customers
• Loyal customers
What are the…? • Most effective online & off-line approaches
• Best offers & messaging
• Products & services that resonate
• Investment opportunities
Putting the customer at the center The multi-dimensional advantage
How do they…? • Prefer to interact with my brand
Putting the customer at the center The multi-dimensional advantage
Building blocks
Measures & Objectives
Lifestyle & Demographics
Customer Value
Beliefs & Attitudes
Purchase behaviour
Media Consumption
Creating linkage
Customer interaction
Data captured
Linking “Big Data” is the cornerstone to customer intelligence and cross-channel marketing
Customer opts into mobile
program
Name Mobile Email
Mobile
Customer opts-In to
Name Email
Customer connects
on Facebook
Name
Facebook ID
Social eCommerce
Customer creates
account on eCommerce
site
Name Email
Customer completes credit card purchase
Name ZIP
Retail
Customer requests catalog
Name Postal Addr.
Catalog
Understanding Dana
Tech savvy
Catalog shopper
Loves travel shows
High discretionary
income
Multi- device user
Highly socially
influential
Actionable segments
What is she
worth?
Who is she?
Segment persona
What to say to
her
How to reach her
Exercises regularly; practices yoga
Bikes; doesn’t own a car
Lives on her iPhone
“Foodie” who enjoys new experiences
Watches The Travel Channel
“Young City Solo” MOSAIC cluster
Works in financial services
“Work Hard; Play Hard”
“ Brand strength & quality matters”
“Save me time”
“Work, workout and wander”
Travel, finance, websites
Yoga and travel publications
Heavy online shopper
Loves catalogs & email offers
Spent over $450 with your retail clothing brand last year over half online.
Loyalty program member, spends more than $1,500 with a competitor
“Work, workout, wander”
• Behavior & preference drive channel selection and budget allocation
• Data driven segment insights guide offer choice, ground message and creative
• High velocity triggered campaigns
perform better
Budget, channel, offers, messaging Media Consumption Profile
Smart high velocity campaigns
Birthday Browse Shopping Cart “Fan”
Loyalty Points Retargeting Offers Inactive
Aligned to goals
Effective in any
channel Clear &
easy-to-use
Guides Creative,
Offers Measurable
Segmentation case study Client: An online retailer expanding to brick and mortar
• Identify segments • Identify opportunities for growth Objective
• Develop transaction-based groups • Define segment personas
Experian Solution
• 30% suppression of customer file • Maintained 82% of marketing spend • Identified areas for store locations
The Results
Segmentation checklist Business goals and measures
Customer campaign & purchase data
ConsumerView
Consumer Insight
MOSAIC Reach
CCIR
Data science & advanced analytics
Revenue
Acq. Cost Value
All Accounts
$192
$154 $38
$320
$214 $106
$219
$157 $62
$105
$74 $31
Call Center Web Leads
$148
$152 -$4
Other
Establishing value
• Establish overall marketing value by channel* (dollars for example only)
• Marketing Value = function of (response, revenue, customer cost) • Customized to the goals of each project • Channel is only one analysis
Exploratory data analysis – channel contribution
* Channels are added over time as channel data can be attributed
Applying the value lens
• Ranked by the marketing value metric
E-Mail/DM Channel Value
-$500K
$0
$1M
$2M
80% 50% 20% 0%
Val
ue ($
)
Marginal Value
High
Medium
Low
Exploratory channel analysis – based on value
Channel performance E-mail/Direct mail channel analysis – based on value
% Of overall revenue Generated by 20% of households
Bringing it all together Multi-dimensional segment
Segment 1: Living the dream – Represents 32% of customers Demographic snapshot Socioeconomic indicators • Average age: 49 yrs. • Homeowners, 10 yrs. (avg. length of residence) • Typically married • Children range from grade school to high school • 22% Live in South Atlantic, 21% live in Middle Atlantic
• Very affluent: $143,650 average income • Above average home value • Educated: completed college & grad. level studies • Buy new and imported cars; tend to be luxury or
near luxury, often SUV’s • MOSAIC groups A/B
Lifestyle and interests Value • Cultural and arts orientation • Image conscious; financially savvy • Participate in activities such as skiing, golfing and tennis • Travel domestically and to foreign destinations • Family oriented; prefer home-based activities
• Highest customer value + Top revenue deciles + High RFM score + Top response deciles for e-mail & catalog
Channel propensity • High use of digital channels for retail and financial information • Use e-mail offers; catalogs • Transact on mobile/tablets • Consume cable • Travel, fitness magazines
“Living the Dream” by DMA High opportunity locations
Living The Dream
*conceptual sample for format only
Value delivered
• 5 value-based robust, actionable segments built
• Core locations for growth identified
Objective met
• Low-value segments “de-invested”; high-value receive more touches, richer offers
• Triggered campaigns tailored for each segment • Projected revenue increase of 7% on lower
spend
The results
Multi-dimensional segmentation Framework for maximum marketing return Framework for maximum marketing return
Who should we focus on?
Which channels matter?
How do we develop
programs that deliver results?
What offers and messages are
most effective?
Aligned to goals
Actionable in any
channel
Clear & easy-to-
use Flexible Measurable