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Paul Laughlin, Managing Director, Laughlin Consultancy

The Softer Skillsyour analysts need

Why just hiring a Data Scientist isn’t all you need

Background in developing Customer Insight teams and driving value from insights (‘client side’)

❖ Created & lead customer insight teams for all the major insurance brands, products and channels used by Lloyds Banking Group over 13 years

❖ Added over £11m incremental profit annually

❖ Worked with FCA on Behavioural Economics in comms testing

❖ Developed ‘in house’ capability up to a team of 44

❖ Mentored next generation of leaders

❖ Trains & marks for Institute of Direct & Digital Marketing

❖ Qualified Executive Coach with ILM (Level 7)

Helping insight leaders maximise value

“Helping businesses make money from customer insight”

Laughlin Consultancy helps companies maximise sustainable value from their customer insight, for example by growing their bottom line, improving customer retention and demonstrating to their regulator that they treat customers fairly.

Laughlin Consultancy clients have benefitted from our training, consultancy & coaching services

❖ Helping our clients maximise the value of their customer insight

❖ Our services are bespoke to clients, but include:

❖ “Health Check” diagnostic of your Customer Insight capability

❖ Customer Insight Strategy development

❖ Conduct Risk & Customer Insight training

❖ Consultancy Skills training for analysts

❖ Career paths for customer insight roles

❖ Leadership coaching

Relevancy trumps Creative:The critical role of Targeting in Marketing Effectiveness

slide 6

The New Rules of Engagement (The DMA)

www.royalmail.com/corporate/marketing/data-services | www.dataiq.co.uk | @TheDataIQ | DataIQ | 5

LIFE EVENTS | WHY MARKETING NEEDS DATA

Data quality is the lead dimension since it impacts on both deliverability of marketing in targeted channels and also the perception of messages ‒ in the simplest terms, for example, getting the address wrong means a message either does not arrive or is viewed negatively by consumers.Marketers clearly understand the work

they now need to do in order to make sure their messages have impact, with targeting and analysis achieving the second-highest score (3.63 on a 5 point scale). This is the critical and value-adding aspect of data-driven marketing, modelling behaviour and variables in order to select the most appropriate audiences to ensure messages are welcomed, well-received and directly relevant to specific needs at a specific point in time.With the right data elements and

selections in place, marketers can then focus on two core principles - timing and message - to drive up conversion. Both of

Fig. 1.4 - Data’s impact on marketing effectiveness

Quality of contact data

3.74

Targeting and analysis

3.63

Delivering campaign

at right time

3.53

Personalised content

3.50

Creative design

3.10

Fig. 1.5 - Life events and marketing opportunities

Provides a reason to engage with the customer

70.3%

32.7%

New sales opportunity

49.7%

15.7%

Provides an opportunity to update contact data

44.1%

30.1%

Increased likelihood that customer might switch

33.1%

11.8%

None of these are important8.3%

9.8%

these draw on the accurate, profiled data which has been created and are rightly scored highly (3.53 and 3.50 out of 5 respectively) for the impact they have. That life events are not yet strongly seen as the major purchasing triggers they really are, is possibly a reflection of the constraints of current systems, technology and processes to manage such dynamic data and therefore enable marketers to capitalise upon these opportunities.

1.5 Life events and marketing opportunitiesThere are two facets of any life event that occurs to a consumer - the first is the trigger it provides for the individual to make new purchases or to review contracts with suppliers, the second is the opportunities it creates for marketers in response to these behaviours. Seven out of ten marketers recognise

that the most important aspect of a life event is the reason it provides for them to engage with a customer - a moment of supreme relevance if targeted

Insight into life-event

purchasing triggers

2.98

n 2014n 2015

“With the right data elements and selections in place,marketers can thenfocus on two coreprinciples - timing andmessage - to drive upconversion.”

Customer Insight is a key component for implementing Customer Centricity successfully

❖ In largest study of its kind, “Insights 2020” talked to over 330 leaders & 10,000 practitioners across 60 markets.

❖ Analysed commercial performance & digital behaviour.

❖ Confirmed that Customer Centric companies out-performed others across a range of financial metrics (profit, cross-sell, retention etc).

❖ What distinguished the best performers?

1. Purpose-led, data-driven, consistent customer experiences (across all channels & through whole customer journey)

2. Embedded ‘customer obsession’ in culture (decision making, performance management & embracing experimentation)

3. Customer Insight team is a proactive, equal, business partnerslide 7

9 Step Analysis Model

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Breadth not Depth

Getting a better briefQuestion

The problem with requests

Socratic questioning❖ Aim is to help client have clarity on

need not just what they want:

❖ Concept clarification questions

❖ Probing assumptions

❖ Probing rationale, reasons & evidence

❖ Questioning viewpoints & perspectives

❖ Probe implications & consequences

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Failing to Prepare is preparing to Fail

14

Question

Planning & Design

Design MapWhat do we

already know?

What am I missing?

How could I fill this gap?

How am I going to communicate

findings?

What are the Hypotheses?

You could start at any point in the cycle but you should look to

address all elements in completing your

analysis

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Who

Use / Involvement / Experience

Shopping/Buying

Engagement / Influences▪What characterises the customer/ segment−demographics−stage of life−attitudes−behaviours−dissatisfactions −routines−etc

▪What are their chief concerns in life (attitudinal data)?

▪What are their key needs and aspirations?

▪What are their circumstances and what is going on in their lives that impacts how they see the category?

▪What motivates them?

▪ What are their preferred channels for researching and purchasing products and how does this compare with other types of products?

▪ How do they make a purchase decision and what factors are important?

▪ What are their attitudes to advice? What prompts/triggers them to seek advice?

▪ How do they perceive your brand vs other brands? (product category and wider)

▪ How do they become aware of the category?

▪ What is there attitude to planning for the future? When do they think ahead, what triggers this?

▪ When do they reconsider their choices? What prompts change?

▪ What and who influences them and their choices? Who do they turn to for guidance/information/ recommendations?

▪ What competitive product holdings do they have and why?

▪ When are they receptive to messages?

▪ What does the segment need and want when buying your products?

▪ What products are they most likely to buy and why?

▪ What is the current customer experience?

▪ What are the key dissatisfactions (irritations, frustrations etc) with the current process?

Pricing/Finances

▪ How engaged/informed/involved are they with regard to competitive pricing?

▪ What products do they hold? How does this contrast with other segments?

▪ What triggered their purchase? What stops them buying?

▪ Do they go on to buy something else? (us or competitor)

▪ What are their goals and to what extent do they plan their spend (budgets)?

Context questions

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Achieving Stakeholder Buy-In

17

Question

Planning & Design

Buy-in

Stakeholder Mapping

Technical stages (Data & Analytics)

Question

Data Analysis Insight

Planning & Design

Buy-in

Generating Customer Insights

Question

Data Analysis Insight

Planning & Design

Buy-in

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Converging sources of evidence

Agreeing Sign-off and TacticsQuestion

Data Analysis Insight

Planning & Design

Buy-in Sign-off

Communicating your analysis effectively

Question

Data Analysis Insight

Planning & DesignPresentation &

Distribution

Buy-in Sign-off

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Hierarchies of communication

❖ Hierarchies of headlining

❖ Short, eye-catching, wording

Storytelling

❖ People are engaged by stories

❖ Psychological studies show better attention & recall (esp. feelings)

❖ Common templates:

❖ “Just imagine, if…”

❖ “Wow! I’m going to tell… about this”

❖ The Burning Platform

Tufte’s rules for Data Visualisation

❖ Graphical integrity

❖ Data-Ink

❖ Chart Junk

❖ Data Density

❖ Small Multiples

Negative examples of Data Visualisation

Checkout Viz.WTF

Positive example of Data Visualisation

Influencing the Action needed as a result

Question

Data Analysis Insight

Planning & DesignPresentation &

Distribution

Solution

Buy-in Sign-off

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It’s all about taking Action

❖ Ensuring request is for action

❖ Designing analysis for action

❖ Including recommended actions

❖ Progress updates on action

❖ Measure effect of actions

9 Step Analysis Model

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Action orientated learning

One thing I will do differently as a

result of this presentation is…

linkedin.com/in/paullaughlin

paul@laughlinconsultancy.com

+44 (0)7446 958061

How to keep in touch

customerinsightleader.com

laughlinconsultancy.com

@LaughlinPaul