itsnotthesizeofthedataitshowyouuseitsmartermarketingwithanalyticsanddashboards
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It’s Not the Size of the Data – It’s How You Use It:
Smarter Marketing with Analytics and Dashboards
© Koen Pauwels, 2013
“Through this book Koen Pauwels makes his extensive experience within the reach of us all. He outlines steps, shares case studies, and provides checklists that make it
possible for marketers to create and use dashboards as a way to both monitor progress and facilitate decisions.
He designed this book to help marketers use data and metrics to better understand the effect and impact of marketing
investments.”
Foreword by Laura Patterson, Visionedge Marketing
Case studies on brand tracking, data management, offline + online marketing communication, direct mail, social media, search, promotions, pricing, product age, retargeting,… Large and small companies, B2C and B2B across 3 continents
Even a small improvement in using marketing analytic dashboards brings companies on average 8 % higher Return on Assets compared to their peers (Germann et al., IJRM, 2012)
Decisions That Data + AnalyticsCan Inform
Fast moving consumer goods: P&G, Unilever, food, non-food
Financial services: Discover, Vanguard, First Tennessee Bank
Consumer durables: cars, furniture, male shaving
Entertainment: EB Games, Harrah’s
Services: online retail, fashion retail, online travel, insurance
Business-to-business: Avaya, Unisys, global packaging
Not-for-profit: Atlanta city dashboard
Across Industries In Case Studies
Analytic Dashboard: a concise set of interconnected performance
drivers to be viewed in common throughout the organization
It helps you deal with:
1. poor organization of data,
2. managerial biases in information processing and decision-
making,
3. the increasing demands for marketing accountability, and
4. the need for cross-departmental integration when needed
Chapter 1: What Marketing Analytics Dashboards Can Do for You
View Performance Drivers: Examples
European SME U.S.-Based Large Firm
Source: http://www.dashboardinaction.com/ Source: http://www.dundas.com/
Connect Your Actions With Results
Do You Need an Analytic Dashboard?
Is your organization suffering from:1) Confusion about the effectiveness of new
media (what is your social media ROI?)?2) Lack of comparable metrics across media
(online vs. offline) or countries?3) Too many ‘key performance indicators
without proof of their sales impact?
Can marketing answer the questions:1) If we need to cut 20% from our marketing budget, what would we cut?2) If we need to get 10% more revenues next year, where would they come from? 3) When does our marketing action affect performance, and how long does it last?
Do you want to:1) Agree on facts so meetings
focus on plans to action?2) Justify budget (changes) in
winning financial language?3) Deploy analytics to turn data
into better decisions?
You need an analytic dashboard
You want to read this book
You’re gonna like the way it helps you lift your performance
NotReally
YES
A common pitfall in the data-driven journey is the emphasis on reporting than deep-dive analysis. The analytics team’s time is
primarily spent on maintaining the existing reports and responding to ad-hoc reporting requests. Almost no emphasis is
placed on advanced analysis, which can provide significantly more value to the business.
Brent DykesEvangelist for Customer Analytics
Adobe
From Reporting to Insightful Analysis
Commonalities Differences
Provide a snapshot of a firm’s performance
Dashboard metrics proven to lead performance by data analytics
Dashboard integrates short- and long-term objectives of a firm, scorecard is rather focused on long-term deliverables
Align marketing (other functional unit) objectives with a firm’s strategy
Scorecard lacks flexibility, dashboard is highly customizable
Dashboard focuses on a firm’s context, scorecard is rather weak on competition perspective/analysis
Link inputs with outputs Scorecards’ users are predominantly top managers, dashboards can be used at any level of organizational hierarchy
Chapter 2: Dashboard vs. Scorecard
“It is possibly the single most important opportunity, in a decade, for your management to reinvent.
But to do so you need to have good metrics, measurements you can trust and from which you can make sound decisions that
advance your company's business plan.
You need to measure what really counts. Once identified, these metrics should then be placed in your Dashboard.”
Borenstein, 2009
Chapter 3: Start With the Vision
Better performance by analytic dashboards =
Goal alignment with company’s vision
*
Top management support
*
Employee engagement
Chapter 3: Start With the Vision
How Goal Alignment and Metrics Consensus Get Results
+
Ability to measure brand
equity
Goal alignment
Ability to measure financial returns
Use of a dashboard
Metrics consensus
Revenue improvement
Learning
MeasurementEnablers
MeasurementAbilities
Outcomes
-
++
+
++++
+
+
++
Today’s marketers must possess a hybrid of traditional marketing
skills and quantitative skills – mixing both art and science. But it’s not
enough to have both on the team; you have to some of each in
everyone (like having a major and minor in college). We’ve started
living this at SAP. To let the science influence the art, we gather data
and feedback on our marketing ideas before we make a full
commitment.
Jonathan Becher
Chief Marketing Officer
SAP
Chapter 4: Assemble Your Team
5 out of 12 steps to build + maintain your project team:
1. Identify the skills needed
2. Find the right mix of personalities
3. Recognize what motivates/demotivates your people
4. Know the stage your team is in
5. Lead, don’t micromanage your team
Chapter 4: Assemble Your Team
Chapter 5: Gain IT Support on DataBig & Small
7 pillars to bridge IT and business units into cooperation
1. IT understands its role is to support business
2. IT knows strengths and quirks of its customer, i.e. business
3. IT does not get isolated, but integrated into decisions
4. Business sees how its ‘need for speed’ creates IT problems
5. Business develops self-discipline for long-term feasibility
6. Business understands set-up costs and maintenance efforts
7. Standardize IT service, but do leave the room for flexibility
Chapter 6: Build Your Database
The main goal of a database is to collect, analyze, and distribute information to the right people at the right time.
5 out of 10 tips on how to manage your database:1. Make sure your data is accurate and up-to-date2. Distribute key information to all stakeholders3. Customize your database4. Keep it simple and clean5. Utilize your database at its full capacity
Chapter 9: Include Emerging Channels: Online and Social Media
3 rules for social media marketing:
1. Begin with setting clear marketing goals and objectives and then move on to metrics
2. Use both quantitative and qualitative metrics: there is no “silver” metric
3. Use metrics specific to your company, business and marketing goals and objectives
Chapter 11: Design Your Dashboard
Dashboard design key attributes:
• Simplicity
• Focus
• Clarity
• Compactness
• Leading to action
• Readability
• Insightfulness
• Flexibility
Source: http://www.dashboardinaction.com/, © 2010 Koen Pauwels
Chapter 11: Design Your Dashboard
5 out of 10 tips on how to visualize your dashboard:
1. Highlight key metrics that require attention
2. Categorize information with color
3. Present data on dashboards in a consistent way
4. Use meaningful and descriptive titles
5. Avoid cluttering dashboards
Chapter 12: Launch & Renew Your Dashboard
7 things to remember for your dashboard project success:
1. Dashboards should be useful
2. Dashboards should be aligned with strategy
3. Dashboards should contain the right KPIs
4. Dashboards should be clear and easy-to-read
5. Dashboards should be well planned
6. Dashboards require effective execution and committed people
7. Dashboards are not set in stone, require response to feedback
Chapter 13: Change Your Decision Making: From Interpretation to Action
“Information is not knowledge. The only source of knowledge is experience.”
Albert Einstein “The best business decisions come from intuitions and insights informed by data. Using data in this way allows your organization to build institutional knowledge and creativity on top of a solid foundation of data-driven insights.”
Bladt and FilbinDosomething.org , 2013
Chapter 14: Nurturing the Culture and Practice of Accountability
“The real revolution in data will be a change in organizational behavior and culture — and those changes are hard and take
time. Many organizations will struggle with the shift, and frankly, many will be usurped by new competitors who grow up
natively with this new worldview.”
Scott BinkerChief Marketing Technologist, 2013
CONCLUSION: CALL TO ACTION
Germann et al. (2012) uncover 5 key success factors for effective use of marketing analytic dashboards that increase company’s performance by 8-20%:
1. Top management support (see Chapters 1 and 3)
2. A supportive analytics culture (see Chapters 4 and 14)
3. Information technology support (see Chapter 5)
4. Appropriate data (see Chapter 6)
5. Analytic skills (see Chapters 7-10 and 13)
CONCLUSION: CALL TO ACTION
“You don’t need software –
You need courage and a vision”
Borenstein (2009)
Check out the book on Amazon.com in the U.S. and McGraw-Hill in Europe.
For questions and feedback, please contact the author!
Prof. Dr. Koen [email protected]