how to create dashboards that don't sit on a shelf

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Dashboards How to create dashboards that don’t sit on a shelf

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Now more than ever, marketing managers need to sift through an ocean of data to find information that is actionable. People struggle to get past the "so what?" playing in their head as they look for ways to increase sales, cut costs, or ensure quality. Dashboards only make this problem worse with fancy data visualizations and dozens of metrics all in one place. Truth is, most dashboards just sit on a shelf, without adding value to the firm. What's missing is an action plan. The webinar is presented by Roy Wollen, president of Hansa Marketing Services. It covers the common pitfalls of marketing dashboards as well as good and bad case study examples. Watch and learn how to start solving business problems with effective marketing dashboards. If you are responsible for business intelligence and use dashboards to communicate marketing information, contact us to see how we can help. Don't let your dashboards will just sit on a shelf! Use them to solve business problems. Don't miss our next free online webinar. Register here: http://hub.am/XwTIKo www.HansaMarketing.com @Hansa_Tweets

TRANSCRIPT

Page 1: How to Create Dashboards that Don't Sit on a Shelf

Dashboards

How to create dashboards that don’t sit on a shelf

Page 2: How to Create Dashboards that Don't Sit on a Shelf

HANSA Brand Consulting

HANSA Analytics

HANSA Market

Research

HANSA Marketing

Communication

Who’s Hansa?

2

Page 3: How to Create Dashboards that Don't Sit on a Shelf

Hansa is a global organization

3

250+

Page 4: How to Create Dashboards that Don't Sit on a Shelf

Who are we working with?

4

Page 5: How to Create Dashboards that Don't Sit on a Shelf

Agenda

Executive summary

– What is an effective dashboard?

Effective campaign dashboards

Effective customer dashboards

10 tips for effective dashboards

5

Page 6: How to Create Dashboards that Don't Sit on a Shelf

You’re off to a bad start if…

…you hear dashboard users say

– “So what”

– “nice to know” – what am I supposed to do next?

– “where’d this number come from?”

– “can this be right?”

– They are already inundated with data, how will yet another dashboard help them?

…you begin your development with visualizations in mind (dials, gauges, thermometers)

– Stop looking to airplane cockpits for the answer

– Don’t fall in love with a pretty (inter)face

6

Page 7: How to Create Dashboards that Don't Sit on a Shelf

Why do dashboards sit on a shelf ?

Lack of planning, lack of buy-in

No champions to socialize your work

– “Management doesn’t support me”

– “Finance thinks all I want is more money for marketing”

Data pitfalls:

– Users stumble on definitions, calculations

– Numbers look suspicious “this can’t be right”

– No callouts or explanations, “you figure it out” attitude

– Spotty data feeds, lots of asterisks and insignificant results

Effective dashboards require planning

7

Page 8: How to Create Dashboards that Don't Sit on a Shelf

Effective dashboards always…

Lead to actions

Have impact on the business

Are part of decision making

– Good news|bad news?

– Going up|going down?

– Something worked

– New customer insights

8

Key takeaway of this webinar:

Effective dashboards always have

actions attached to measurements

Page 9: How to Create Dashboards that Don't Sit on a Shelf

Agenda

Executive summary

– What is an effective dashboard?

Effective campaign dashboards

Effective customer dashboards

10 tips for effective dashboards

9

Page 10: How to Create Dashboards that Don't Sit on a Shelf

If the goal is to ensure marketing accountability…

Repeat ROI objective, then benchmark against it

Repeat the marketing strategy

– Tip: Insert an example of the creative

Associate actions with results

– Reallocate marketing investment – channel, vehicle

– Try new things (e.g., sweeten offer to acquire customers, reduce the offer for existing customers to optimize margin)

Why do you think something happened?

– Plan on adding annotations, explanations, glossary

– Plan on making recommendations

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Page 11: How to Create Dashboards that Don't Sit on a Shelf

Example of KPIs as they relate to targets

Key Performance Indicators (KPIs) relative to target

Restating observation vs target

11

Source: Klipfolio

Page 12: How to Create Dashboards that Don't Sit on a Shelf

Example of annotations, definitions, narrative

Annotation/callout

– What else was in market?

– What was the competition doing?

Definitions

– What is a “customer”? What time period are we looking at?

– Are you using Gross or Net Margin?

12

Source: Klipfolio

Page 13: How to Create Dashboards that Don't Sit on a Shelf

Example of comparisons

Year over Year (YoY) and Month over Month (MoM) example from ClearSaleing

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Page 14: How to Create Dashboards that Don't Sit on a Shelf

Example of funnels

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Funnel example from VisualIQ

Salesforce.com funnel describing the stages of b2b marketing

Omniture’s SiteCatalyst digital marketing funnel

%’s represent conversion to

the next phase

How do these compare YoY,

MoM?

Each number brings up a question:

What were the best sources?

Which attracted new customers?

Funnel example from Value Watcher

Page 15: How to Create Dashboards that Don't Sit on a Shelf

Example of paths

15 Illustration from Microsoft Atlas whitepaper

Google Analytics visitor flow

ION Infographic referencing MarketingSherpa statistics

Page 16: How to Create Dashboards that Don't Sit on a Shelf

Campaign dashboard example

Campaign analytics measure audiences, offers, ideas

16

Channel Buyers Trans Sales Sales/Piece Margin GM% AOV

Resp

Rate

Resp

Rate 2

Retail 200,000 250,000 10,000,000$ $2.50 5,000,000$ 50.0% 45.00$ 4.0% 4.5%

Direct 100,000 130,000 5,000,000$ $1.50 2,500,000$ 50.0% 35.00$ 3.0% 3.2%

Total 300,000 380,000 15,000,000$ $3.00 7,500,000$ 50.0% 40.00$ 3.8% 4.0%

List Priority Circ AOV Resp Rate Sales/Piece

1. List x 1,000,000 $55.00 3.2% $2.00

2. List y 2,000,000 $45.00 4.9% $3.00

3. List z 2,000,000 $35.00 4.6% $4.00

5,000,000 $40.00 3.8% $3.00

Market Circ AOV Resp Rate Sales/Piece

Key market 1 1,000,000 $50.00 6.0% $4.00

Key market 2 4,000,000 $35.00 2.0% $2.00

Grand Total 5,000,000 $40.00 3.8% $3.00

Discount Circ AOV Resp Rate Sales/Piece

$25 off 1,000,000 $55.00 5.0% $4.00

$35 off 2,000,000 $65.00 6.0% $1.75

Gift w Purchase 1,900,000 $25.00 2.0% $2.00

Control group 100,000 $40.00 3.0% $2.00

Grand Total 5,000,000 $40.00 3.8% $3.00

Distance to Store Circ Buyers Trans Sales Sales/Piece Margin AOV

Resp

Rate

Resp

Rate 2

Within 1 mile 300,000 90,000 110,000 4,000,000$ $13.33 2,000,000$ 55.00$ 7.0% 7.2%

2 miles 200,000 50,000 75,000 3,000,000$ $15.00 1,500,000$ 45.00$ 6.0% 6.5%

3 miles 500,000 40,000 55,000 3,000,000$ $6.00 1,500,000$ 50.00$ 6.0% 6.4%

4 miles 500,000 40,000 50,000 2,000,000$ $4.00 1,000,000$ 45.00$ 5.0% 5.5%

5 miles 500,000 35,000 40,000 1,000,000$ $2.00 500,000$ 25.00$ 4.0% 4.0%

6 to 10 miles 1,000,000 20,000 22,000 900,000$ $0.90 450,000$ 40.00$ 2.0% 2.2%

11 to 15 miles 1,000,000 15,000 16,500 650,000$ $0.65 325,000$ 35.00$ 1.5% 1.7%

16 to 20 miles 1,000,000 10,000 11,500 450,000$ $0.45 225,000$ 35.00$ 1.0% 1.2%

TOTALS 5,000,000 300,000 380,000 15,000,000$ $3.00 7,500,000$ 40.00$ 3.8% 4.0%

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Customers buying from 16498; the 1/11 Acquisition event

16498 - 1/11 Acq

Page 17: How to Create Dashboards that Don't Sit on a Shelf

Email dashboard example in Excel

17

Overall health of the program (each tab is a deep dive)

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Page 18: How to Create Dashboards that Don't Sit on a Shelf

Strategic review leveraging a dashboard

Strategic review with alerts and recommendations

Supports a recurring meeting

18

Sales this week last week + / - month to date run rate vs. last year + / - vs. plan + / -

Search $1,174,583 -65% - $1,174,583 $1,174,583 -65% - -65% -

Paid Search $774,027 -65% - $774,027 $774,027 -65% - -65% -

Data Feed $400,556 -65% - $400,556 $400,556 -65% - -65% -

Affiliate $18,244 -65% - $18,244 $18,244 -65% - -65% -

Total $1,192,827 -65% - $1,192,827 $1,192,827 -65% - -65% -

Performance Summary

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Paid Search

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Search Goal

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this week last week + / - month to date run rate vs. last year

Impressions

Visits (clicks)

Click charges/Pub. Comm.

Transactions

Sales ($)

PFX Fee

Total Fee

Cost per click

Conversion Rate

Avg. Order Value

Revenue share

Alerts

Page 19: How to Create Dashboards that Don't Sit on a Shelf

Agenda

Executive summary

– What is an effective dashboard?

Effective campaign dashboards

Effective customer dashboards

10 tips for effective dashboards

19

Page 20: How to Create Dashboards that Don't Sit on a Shelf

Goal of customer dashboards

Customer dashboards give campaign data context –

– it’s not about response rates and conversions rates but about loyalty, advocacy and lifetime value

Customer data brings all the channels together

Customer data adds to the missing ingredient for product sales:

– Who’s buying the product?

– What else are they buying (market basket analyses)?

– Is that product their first- or 10th purchase?

20

Page 21: How to Create Dashboards that Don't Sit on a Shelf

Because campaigns don’t buy, people do

– Customers are in control – more “pull” than “push”

– Customers see brands not channels

– Customers don’t care who gets credit for the sale

?

Price

Comparison

Search

Community

www.Brand.com

Store visit

Mobile

Why is customer data important?

21

Page 22: How to Create Dashboards that Don't Sit on a Shelf

1

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.

.

.

2.

Customer

Centric

1. Batch & Blast

Mail1 Email1 Email2 Email3

Mail2

Y

N Y N Y

2 approaches to campaigns… 1. How “deep” should I

circulate?

2. What does my customer

want?

Page 23: How to Create Dashboards that Don't Sit on a Shelf

What’s wrong with Batch & Blast?

Batch & Blast is an old model of marketing outreach

– Selects audiences based on a marketing calendar

– Each campaign seen as a distinct event, leads to overmailing

– Response rates of 1% are acceptable (99% failure rate)

What’s wrong?

– Presumes customers are in market on our timetable

– Slave to “what have you done for me lately” mentality • Audiences are selected based on Recency – Frequency model for

expensive media such as telemarketing and direct mail

– For email, it becomes one size fits all • Anyone with an email address gets all email campaigns, no targeting

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Page 24: How to Create Dashboards that Don't Sit on a Shelf

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0

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Campaign 1 Campaing 2 Campaign 3 Campaign 4 Campaign 5

What this looks like to a customer (mail edition)

Page 25: How to Create Dashboards that Don't Sit on a Shelf

What this looks like to a customer (email edition)

Customers being pummeled by email

Despite clear differences in engagement

Everyone gets the same level of attention

RFM and Email analysis

RecencyActive

Email %

Total

Emails

Emails

/Buyer Openers

% who

Opened Opens

Opens

/Buyer Clickers

% who

Clicked Clicks

Clicks

/Buyer CTR

0 - 3 Mos 70,960 74.6% 2,124,751 29.9 43,580 61.4% 339,099 4.8 33,304 46.9% 115,778 1.6 5.4%

4 - 6 Mos 79,305 83.4% 2,212,122 27.9 42,724 53.9% 342,965 4.3 30,743 38.8% 102,063 1.3 4.6%

7 - 12 Mos 131,193 80.2% 4,161,901 31.7 57,161 43.6% 407,003 3.1 36,133 27.5% 95,216 0.7 2.3%

0-12M buyer 281,458 79.5% 8,498,774 30.2 143,465 51.0% 1,089,067 3.9 100,180 35.6% 313,057 1.1 3.7%

13 - 18 Mos 110,122 75.2% 3,550,586 32.2 44,609 40.5% 310,592 2.8 27,159 24.7% 65,970 0.6 1.9%

19 - 24 Mos 94,968 71.7% 2,813,285 29.6 33,669 35.5% 221,741 2.3 19,487 20.5% 43,939 0.5 1.6%

25 - 36 Mos 160,279 67.4% 4,036,381 25.2 49,156 30.7% 308,036 1.9 27,007 16.8% 57,400 0.4 1.4%

37 - 48 Mos 73,727 44.8% 2,173,384 29.5 21,294 28.9% 135,273 1.8 11,350 15.4% 23,129 0.3 1.1%

49+ Months 60,842 24.9% 2,035,069 33.4 16,946 27.9% 111,304 1.8 8,953 14.7% 17,889 0.3 0.9%

Grand Total 781,396 61.1% 23,107,479 29.6 309,139 39.6% 2,176,013 2.8 194,136 24.8% 521,384 0.7 2.3%

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Page 26: How to Create Dashboards that Don't Sit on a Shelf

Enter customer dashboards

Customer dashboards start with the customer lifecycle

– Acquisition versus Retention versus Reactivation

– The way customers begin makes a difference

Customer dashboards provide the longitudinal view

– Customer segmentation comes first

– Each segment has joiners, stayers, leavers as times goes by

– Each has its own repurchase rate and value

– Each has its own trajectory (rate of change)

Most importantly, each scenario has an action plan

– Example: Triggered communications

26

Page 27: How to Create Dashboards that Don't Sit on a Shelf

Step 1a: Customer segmentation

Customer segmentation based on value

27

Page 28: How to Create Dashboards that Don't Sit on a Shelf

Step 1b: Customer segmentation

Customer segmentation for new customers

28

Page 29: How to Create Dashboards that Don't Sit on a Shelf

Step 2: Joiners, Stayers, Leavers

Customer segments at Period 1

29

Period 1 =====> Period 2

Segment (conceptual) Operational Customers Joiners Leavers Customers Comments

Advocates 0-3M 3x+ $51+ 30,000 100 100 30,000 Looks like nothing happened

Repeat buyers 0-3M 2x $51+ 45,000 200 300 44,900

New and Hot 0-3M 1x $51+ 10,000 10,000 Welcome stream on steroids

New and Not 0-3M 1x $50 or less 25,000 25,000 Normal welcome stream

High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 1,000 5,000 26,000

High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 5,000 10,000 70,000etc.

Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 5,000 10,000 145,000 Best bets for winback

Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 5,000 9,900 245,100 Let them attrit

total 580,000 596,000

Page 30: How to Create Dashboards that Don't Sit on a Shelf

Step 2: Joiners, Stayers, Leavers

Customer segments at Period 2

30

Period 1 Period 2

Segment (conceptual) Operational Customers Customers

Advocates 0-3M 3x+ $51+ 30,000 30,000

Repeat buyers 0-3M 2x $51+ 45,000 44,900

New and Hot 0-3M 1x $51+ 10,000

New and Not 0-3M 1x $50 or less 25,000

High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 26,000

High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 70,000etc.

Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 145,000

Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 245,100

total 580,000 596,000

Page 31: How to Create Dashboards that Don't Sit on a Shelf

Step 2: Joiners, Stayers, Leavers

Customer segments between Period 1 and Period 2

31

Period 1 =====> Period 2

Segment (conceptual) Operational Customers Joiners Leavers Customers Comments

Advocates 0-3M 3x+ $51+ 30,000 100 100 30,000 Looks like nothing happened

Repeat buyers 0-3M 2x $51+ 45,000 200 300 44,900

New and Hot 0-3M 1x $51+ 10,000 10,000 Welcome stream on steroids

New and Not 0-3M 1x $50 or less 25,000 25,000 Normal welcome stream

High dollar, loyal fans, nearing attrition 4-6M 3x+ $51+ 30,000 1,000 5,000 26,000

High dollar, trial byrs, nearing attrition 4-6M 1x $51+ 75,000 5,000 10,000 70,000etc.

Dormant buyers, worth reactivating 25M+ 3x+ $51+ 150,000 5,000 10,000 145,000 Best bets for winback

Low dollar, trial byrs who went dormant 25M+ 1x $50 or less 250,000 5,000 9,900 245,100 Let them attrit

total 580,000 596,000

Page 32: How to Create Dashboards that Don't Sit on a Shelf

Step 3: Action plan - triggered communications

Behaviors that trigger a marketing communication

– Buying behavior (transaction, spend, ship status)

– Lack of buying behavior (time has gone by, abandoned cart)

– Channel behavior (bought online/pickup at store, loaded shopping cart/shopped at retail, “contact me” form)

– Loyalty behavior (enrolled in loyalty program, earned an award, redeemed an award, close to an award threshold)

– Segment behavior (rhythm of purchase, replenishment)

– Site behavior (transaction at the site- not individual level)

– Post demand behavior (return) or customer service call

32

Page 33: How to Create Dashboards that Don't Sit on a Shelf

Customer dashboard example

33

Key Customer Metrics Main product 1 Main product 2 Main product 3Names through: Last Month This month Last Month This month Last Month This month Last Month This month

Customers 250,000 275,000 Order Penetration % Order Penetration % Order Penetration %

Total New 10,000 13,000New and Hot 1,000 1,300 20.0% 25.0% 20.0% 25.0% 20.0% 25.0%New and Not 4,000 5,000 30.0% 35.0% 30.0% 35.0% 30.0% 35.0%

Reactivated 10,000 11,000 40.0% 45.0% 40.0% 45.0% 40.0% 45.0%

Inactives 150,000 160,000Used-to-Be-Hot 1,000 500Lapsed Account 50,000 55,000"One and Done" 100,000 110,000

Rhythm

Buying monthly 50,000 50,000Twice a Month 10,000 10,000Weekly 5,000 5,000 20.0%

22.0%

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Page 34: How to Create Dashboards that Don't Sit on a Shelf

Not about the tool

Integrate with existing work, don’t presume to replace anything with a magic dashboard

– The dashboard consumer is always going to add their spin

– MS Excel, MS PowerPoint

Don’t forecast; simulate

– Make your dashboard interactive with what if scenarios

My favorite dashboard solutions

– Alterian’s Alchemy, best campaign interface

– MicroStrategy, best integration with Microsoft Office

– Klipfolio, best marketing applications

– Tableau, best gallery beyond marketing

– Dundas, best visualizations

34

Page 35: How to Create Dashboards that Don't Sit on a Shelf

Push to PowerPoint

Page 36: How to Create Dashboards that Don't Sit on a Shelf

Push to PowerPoint

Page 37: How to Create Dashboards that Don't Sit on a Shelf

Agenda

Executive summary

– What is an effective dashboard?

Effective campaign dashboards

Effective customer dashboards

10 tips for effective dashboards

37

Page 38: How to Create Dashboards that Don't Sit on a Shelf

Ten tips for effective dashboards

1. Plan effectively, know your audience, get their buy-in ahead of time, survey them afterwards

2. Vet all of the KPIs before they’re published (especially with finance), centralize definitions

3. Don’t be afraid of MS Excel, promote dashboard’s ability integrate into someone else’s work

4. Show screenshots of the creative

5. Drill down for more detail; but be able to aggregate up for the contextual overview

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Page 39: How to Create Dashboards that Don't Sit on a Shelf

Ten tips for effective dashboards

6. Less is more; don’t use visualizations indiscriminately, what are your top 5 KPIs?

7. Always put the numbers into context (e.g., trends, YoY comps, benchmarks)

8. Leave space for user commentary, reactions, disagreements; but start the ball rolling with your recommendations

9. Tell a story; don’t be boring

10. Every section should have an associated action

39

Page 40: How to Create Dashboards that Don't Sit on a Shelf

Effective dashboards always…

Lead to actions

Have impact on the business

Are part of decision making

– Good news|bad news?

– Going up|going down?

– Something worked

– New customer insights

40

Key takeaway of this webinar:

Effective dashboards always have

actions attached to measurements

Page 41: How to Create Dashboards that Don't Sit on a Shelf

Roy Wollen President, Hansa Marketing Services Inc. (847) 491-6682 [email protected] www.HansaMarketing.com http://www.linkedin.com/company/404316?trk=tyah