The Marketing The Marketing

Data WarehouseData Warehouse

Peter NolanPeter Nolanwww.peternolan.comwww.peternolan.com

Introduction

What is possibleWhat is possible today today?? What is the opportunity?What is the opportunity? Why is the opportunity so large?Why is the opportunity so large? Some examples from Tom PetersSome examples from Tom Peters

What are people saying?What are people saying? Classic Marketing Data Warehousing Classic Marketing Data Warehousing

applicationsapplications Case studiesCase studies

Getting StartedGetting Started How would your company benefit?How would your company benefit? A great way to get startedA great way to get started

What is Possible Today?What is Possible Today?

What Is Possible?

New technologies/public dataNew technologies/public data Data Warehouse TechniquesData Warehouse Techniques ““Mass Customisation”Mass Customisation” Marketing CampaignsMarketing Campaigns

Highly targetedHighly targeted Highly personalisedHighly personalised With returns like never beforeWith returns like never before

What is the Opportunity?

How much money is spent on marketing?How much money is spent on marketing? What is the incremental profit improvement?What is the incremental profit improvement? Double thatDouble that Simply put the opportunity is to:Simply put the opportunity is to:

“Double the Effectiveness of the Marketing “Double the Effectiveness of the Marketing Dollar”Dollar”

Why is the Opportunity So Large?

““Half of all the money I spend on Marketing is Half of all the money I spend on Marketing is wasted, I just don’t know which half.”wasted, I just don’t know which half.”

The Marketing Data Warehouse will tell you The Marketing Data Warehouse will tell you which halfwhich half

Then you can choose to spend it where it does Then you can choose to spend it where it does make a differencemake a difference

Examples From Tom Peters

Reducing Customer DefectionsReducing Customer Defections 5% reduction5% reduction 30-80% Profit Improvement30-80% Profit Improvement

Targeting New CustomersTargeting New Customers Kimberly Clark Case StudyKimberly Clark Case Study

What are People What are People Saying?Saying?

What are People Saying?

Tom PetersTom Peters We are living through a shift from selling virtually We are living through a shift from selling virtually

everyone the same thing a generation ago to everyone the same thing a generation ago to fulfilling individual needs and tastes... by supplying... fulfilling individual needs and tastes... by supplying... customised products and services. The shift [is] from customised products and services. The shift [is] from “get the sale now at any cost” to building and “get the sale now at any cost” to building and managing ... databases that track the lifetime value managing ... databases that track the lifetime value of your relationship with each customer. of your relationship with each customer.

What are People Saying?

Rapp & Collins Rapp & Collins it may almost be time to replace it may almost be time to replace

“location, location, location” “location, location, location”

with with

“database, database, database”.“database, database, database”.

What are People Saying?

Stanley Davis - Future PerfectStanley Davis - Future Perfect Mass CustomisationMass Customisation Standardise the Commodity and Customise the Standardise the Commodity and Customise the

Service that Surrounds ItService that Surrounds It

Example: Telephone callsExample: Telephone calls

What are People Saying?

Philip Kotler - Marketing ManagementPhilip Kotler - Marketing Management Mass markets are fragmenting into micro-Mass markets are fragmenting into micro-

markets; multiple channels of distribution are markets; multiple channels of distribution are replacing single channels...replacing single channels...The winners are those who carefully analyse The winners are those who carefully analyse needs, identify opportunities and create value-needs, identify opportunities and create value-laden offers for target customer groups that laden offers for target customer groups that competitors can’t match.competitors can’t match.

Classic Marketing Classic Marketing

Data Warehousing Data Warehousing

Applications Applications

A Classic DW Application Targeted Marketing

CUSTOMERSERVICE

ADMIN

CONTACTMGT

DISTRIBUTION

CAMPAIGNMGT

ANALYSIS

Marketing Cycle

Target Marketing

SituationSituation Legislation changes causes confusion for Legislation changes causes confusion for

thousands over whether to retire. June 94.thousands over whether to retire. June 94.

SolutionSolution Profile customer database, select all those people Profile customer database, select all those people

who would benefit from retiring before legislation who would benefit from retiring before legislation change and target them for rollover products.change and target them for rollover products.

Value Value $440M deposited into rollover fund. Some $300M $440M deposited into rollover fund. Some $300M

up on product managers forecast.up on product managers forecast.

Cross Selling

SituationSituation Customer wishes to cross-sell existing clients Customer wishes to cross-sell existing clients

SolutionSolution Provide analysis capability to profile existing clients Provide analysis capability to profile existing clients

to determine who owned the product. Use DW to to determine who owned the product. Use DW to select targets who did not own the product.select targets who did not own the product.

ValueValue Response rate for new product purchase direct Response rate for new product purchase direct

mail 18%. (As opposed to 2% for third party mailing mail 18%. (As opposed to 2% for third party mailing list)list)

Up Selling

SituationSituation Customer wishes to up-sell existing clients Customer wishes to up-sell existing clients

SolutionSolution Provide ability to select existing customers to Provide ability to select existing customers to

upgrade productsupgrade products

ValueValue Response rate for upgrade direct mail 33%Response rate for upgrade direct mail 33%

Getting StartedGetting Started

How Would Your Company Benefit?

Double you Marketing Dollar Effectiveness?Double you Marketing Dollar Effectiveness? What would that do for your company?What would that do for your company?

A Great Way to Start

Run 3 marketing campaigns to 3 similar Run 3 marketing campaigns to 3 similar groupsgroups Campaign 1 Campaign 1

Run like any other campaign, capture everythingRun like any other campaign, capture everything

Campaign 2 Campaign 2 Targeted using DW, capture everythingTargeted using DW, capture everything

Campaign 3Campaign 3 Targeted using DW + lessons learned from Campaign 2Targeted using DW + lessons learned from Campaign 2

Usual result: 2-4 times better responseUsual result: 2-4 times better response Double your marketing dollar effectivenessDouble your marketing dollar effectiveness

Summary

What is possibleWhat is possible today today?? What is the opportunity?What is the opportunity? Why is the opportunity so large?Why is the opportunity so large? Some examples from Tom PetersSome examples from Tom Peters

What are people saying?What are people saying? Classic Marketing Data Warehousing Classic Marketing Data Warehousing

applicationsapplications Case studiesCase studies

Getting StartedGetting Started How would your company benefit?How would your company benefit? A great way to get startedA great way to get started

Thank You for Your Thank You for Your Time!Time!